Euro Car Parts Digital Acquisition Plan (June 2015)

Euro Car Parts – Digital Acquisition Plan – June 2015 / Justin Perkins – IDM NO: CB1572126

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Digital Acquisition Plan

June 2015

Justin Perkins

IDM NO: CB1572126


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Contents

Section Page

1. Executive Summary……………………………………………………………………… 3

2. Situation Analysis………………………………………………………………………. 4

2.1 Sector Overview………………………………………………………………………... 4

2.2 Pestle Analysis……………………………………………………………………………… 5

2.3 Current Performance……………………………………………………………………. 6

2.4 Benchmark Analysis……………………………………………………………………… 7

2.5 SWOT Analysis……………………………………………………………………………… 10

2.6 Key Issues…………………………………………………………………..................... 11

3 Objectives………………………………………………………………………………….. 13

3.1 Key Assumptions…………………………………………………………………………… 13

3.2 SMART Objectives………………………………………………………………………… 13

4 Strategy……………………………………………………………………………………… 15

4.1 Audience………………………………………………………………………………………. 14

4.2 Target Personas……………………………………………………………………………. 15

4.3 Benefits & Value Proposition………………………………………………………… 16

4.4 Communication & Touchpoints…………………………………………………….. 17

5 Tactics……………………………………………………………………………………….. 18

5.1 Controls & Ongoing Improvements………………………………………………. 21

5.2 Timing…………………………………………………………………………………………… 22

6 Website Recommendations……………………………………………………….. 23

6.1 Home Page…………………………………………………………………………………… 23

6.2 Product Pages………………………………………………………………………………. 24

6.3 Landing Pages………………………………………………………………………………. 25

6.4 User Survey…………………………………………………………………………………… 25

7 Budget & Forecasting…………………………………………………………………. 26

8 Appendices………………………………………………………………………………… 28


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1. Executive Summary

The following plan sets out key strategies to grow sales to the end consumer segment from

the current £50m pa to £100m pa in a 5-year timeframe.

The plan makes a number of recommendations to improve the overall effectiveness of

current digital assets, including capitalising on database resources through enhanced e-mail

and mobile communications.

However, the overarching objective of our 12-month strategy is to introduce a more

consumer-friendly brand character, built around the provision of educational marketing

content.

The key aim of the content strategy – entitled Know Your Car - will be to empower

customers with the know-how to carry out vehicle maintenance, whilst at the same time

delivering aligned product recommendations.

Our users will not only buy products from ECP online, they will also engage with our online learning environment to know how to use them.

In this plan, we will demonstrate how Know Your Car will extend the ECP brand to new

audiences, increase browse time, average order value and sales of ECP’s own-brand goods

and, perhaps most importantly, deliver long-term customer retention.

Know Your Car

Microsite & App

Weekly How To…

Videos

Product Promotions

Ask the Mechanic

User Forums


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2. Situation Analysis

2.1 Sector Overview

According to a recent IBIS report1, the impact of the economic recession has been so

pronounced that the industry has yet to recover to its pre-recession peak, but the market is

now seeing some steady growth. Over the past 5 years, IBIS suggest sector revenue has

grown by a compound annual rate of 3.8%, with 2.8% growth in 2014.

United Aftermarket Network, a buying group for the automotive market, carried out

research in July 2014 and estimated the total value of the automotive aftermarket

distributor turnover at £2.5bn. The research also showed that three companies including

Euro Car Parts, share over 27% of the total market.

One of the greatest challenges to the industry is the strength of new car sales. According to

SMMT2, March 2015 returned the best results in a century, representing the 37th continuous

month of growth. Pressure increases further as the number of manufacturers move to a 5-

year warranty, transferring some work from retail to warranty,

However, the overall impact is a significantly increased UK car parc (32 million according to

SMMT), with the average car age rising from 6.8 years in 2003 to 7.7 years in 2013. Whilst

modern day cars are more robust, the ageing nature of the car parc presents ongoing

opportunities for the aftermarket parts industry.

1 IBIS World Motor Vehicle Parts Retailers Market Research Report | Sep 2014

2 Society of Motor Manufacturers and Traders.


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2.2 – Pestle Analysis

Table 2.1 Pestle Analysis

POLITICAL

One-party government promises greater continuity.

Continued enforcement of laws related to CO2 emissions.

Impending referendum on membership of EU.

Instability in oil-producing / key emerging markets.

ECONOMIC

UK economy continues to grow: by 0.3% to the end of March 20153 - general improved consumer confidence.

Volatility of crude oil price.

SOCIAL

Ageing and growing population4.

People driving less.

Changing family patterns: single parents; same sex marriages.

TECHNOLOGY

Environmentally-friendly vehicles with alternative fuel systems.

Driverless car technology a reality.

LEGISLATION

Continued enforcement of laws related to CO2 emissions.

Possible changes in the reuse, recycling and recovery of components in end-of-life vehicles (ELVs)5 .

ENVIRONMENTAL

Increasing consumer awareness of the green agenda.

Changes in waste management practices

3 Office for National Statistics (ONS)

4 According to KPMG’s report – ‘How will demographic trends affect the retail sector’ – The UK population is

projected to rise to 73.2m by 2035. 5 European Union directive - Directive 2000/53/EC - the "ELV Directive"


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2.3 Current Performance

Figure 2.1 ECP’s Marketing Ps

Product

More than 114,000 product lines stocked.

Promise of any part for any car any time.

70% of products OEM; 30% own-brand.

Price

Competitive pricing

Average order value of £45.

Frequent clearance sales events

Place

More than 100 stores nationwide where customers can collect.

Online via www.eurocarparts.com with several delivery options through ECP’s own delivery fleet and third-party delivery firms.

People

4,000 strong workforce.

Comprehensive department structure:

admin, logistics, marketing and sales etc.

Physical

Strong, recognisable brand displayed on

own vehicle fleet and store fronts.

Significant focus on print literature to

trade via direct sales and delivery drivers.

Process

Click & Collect service through its own nationwide store network.

Online ordering via eurocarparts.com

Free Delivery option.

Several additional paid for delivery options, including next day.


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2.4 Benchmark Analysis

The following analysis6 compares ECP’s digital assets with two direct competitors and a

leading indirect competitor with whom ECP shares a similar target demographic:

Table 2.2 Summary of Benchmark Analysis Results

Euro Car Parts 42 points

GSF Car Parts 38 points

Halfords 49 points

JD Sports 55 points

Table 2.3 Detailed Benchmark Analyses

ACQUISITION

Euro Car Parts GSF Car Parts Halfords JD Sports

Reach 940,000 monthly

visits and 7.9m page views.

120,000 monthly visits and 659,000

page views.

1.8m monthly visits and 11.8m

page views.

2.2m monthly visits and 18.5m

page views.

SCORE 3 2 3 3

Display Advertising

Yes - 4.63% of traffic to site.




SCORE 3 2 1 3

Organic SEO First listing (Google)

under various keywords.

First listing under various keywords



SCORE 3 3 3 3

Paid SEO Yes: extensive list of

keywords.

Yes, but needs refinement on generic terms.

Extensive keyword list reflecting

product range.

First listing under various keyword

searches.

SCORE 3 2 3 3

6 Supporting analysis from www.similarweb.com // correct as of 14/05/15

Key: 3 = Excellent 2 = Good 1 = Needs Improvement 0 = Very Poor / Unknown


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You Tube

Broad selection of how to… videos.

(1,600 subscribers)

Yes, but only one corporate video

and 7 subscribers

Broad selection of how to / product review videos. (c. 6,000 subscribers)

Wide selection of exclusive videos / reviews. (c. 3,000

subscribers)

SCORE 2 0 3 2

Twitter

8,000 plus followers.

10k plus tweets.

2,500 plus followers. 4k plus

tweets.


tweets.


tweet.

2 2 3 3

Facebook

C. 16k Likes. Regular and insightful posts.

C. 16k Likes. Regular and

insightful posts.

70,000 plus like and regular posts.

1m plus likes with regular and

informative posts.

SCORE 2 2 3 3

Customer Reviews

(Trust Pilot)

8.9 / 10

8.7 / 10

7.9 / 10

6.3 / 10

SCORE 2 2 3 3

Mobile Optimised

Yes Yes Yes Yes

SCORE 3 3 3 3

Website-based

Enquiry

Live Chat facility and e-mail address.

Live chat and e-mail form.

E-mail form and question search.

Live Chat, E-mail form and FAQs.

SCORE 3 3 2 3

Blog /

Newsletter

Newsletter, but none received several

weeks after sign-up.

Frequent and relevant posts to

blog.

Frequent blog posts with broad

content.

Frequent blog posts across a

range of subjects.

SCORE 0 2 2 3

Call to Action on Website

Car reg-based product finder and

sales promos

Car reg-based product finder and

sales promos

Car health-check but limited function.

Yes, but not product-led.

SCORE 2 2 1 1

CONVERSION

Quality of Checkout Process

Intuitive but layout could be more user-

friendly.

Intuitive but slightly

cumbersome.

No login-required, but could be more

user-friendly.

User-friendly process, no log-in

required.

SCORE 2 2 2 3


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Communication of OVP

Snappy and precise Sets out core proposition.

Product-lead with little enticement.

Clear but lacks punch.

SCORE 3 2 1 2

Online Enquiries

Quick response through Live Chat


Yes, but no live chat.


SCORE 3 3 2 3

RETENTION

Customised Customer Area

Yes Yes Yes Yes

SCORE 3 3 3 3

Apps None None Yes: shop Yes: shop

SCORE 0 0 3 3

Blog / Newsletter

See Acquisition See Acquisition See Acquisition See Acquisition

SCORE 0 2 2 3

Social Media Channels

Good use of several channels

Presence across various channels

but needs improvement

Extensive use with great content

Extensive use with great content

SCORE 2 1 3 3


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2.5 ECP SWOT Analysis

Table 2.4 Swot Analysis

INTE

RN

AL

STRENGTHS: Digital Marketing

Strong social media platforms with good follower base.

Comprehensive website and online ordering process.

Excellent online customer feedback.

Effective SEO strategy.

General

Well-established brand presence.

Nationwide infrastructure.

Own-brand range offers better margin.

Comprehensive product range, robust delivery promise and competitive pricing.

WEAKNESSES: Digital Marketing

Limited / weak calls to action on website.

No apps.

Blog / newsletter weak.

Current content marketing – together with the overall website content - dry and focused on trade audience.

General

Heavy reliance on B2B sales.

EXTE

RN

AL

OPPORTUNITIES: Digital Marketing

Committed industry bloggers.

High traffic consumer websites.

High use of app and mobile platforms. General

Car technology

CO2 emission standards.

Ageing car parc.

THREATS: Digital Marketing

Increasing competition in aftermarket sector, notably Halfords under the Car Parts Direct brand.

General

Strong new car sales and improving economy may strengthen further.

People driving fewer miles.

POSITIVE NEGATIVE


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2.6 Key Issues Summary

Brand perception very B2B:

Need to develop a more consumer-facing character beyond the trade sector.

Content marketing lacks strategy and doesn’t exploit lead generation or invite

inbound communications:

Need to develop a more engaging content resource, with social media amplification

and better e-mail marketing.

Current SEO structured for trade customers:

Effective B2B SEO needs to be supported by an equally robust B2C SEO plan, with

relevant keywords and OVP.

Website needs to better engage, lead and convert users:

Landing page optimization, calls to action, self-promotion of satisfied customers very

limited. Checkout process also requires improvement.


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3. Objectives

The overarching objective of our strategy is to increase sales to the end consumer segment

from the current level of just over £50m per annum to £100m pa within 5 years.

Our expectation is not to deliver a balanced increment of that growth (£10m) in the first 12

months, but instead focus on developing assets that – through promotion in years 2-5 – can

reach the target of £100m annual sales in year 5.

3.1 Key Assumptions

The website generates around 33,000 visits per day / 990,000 per month7

Average order value of £458

Average Gross Profit (after cost of goods sold) of 50% for OEM and 70% for own-

brand.

Of the £140,000 per day sales to the end consumer segment, we assume only 30%

(£42,000) of this is made online9. Equating to 933 buyers per day.

Therefore, there is a current average conversion rate of 2.8%

3.2 SMART Objectives

OBJECTIVE #1: SELL - INCREASE WEBSITE REACH

Attract 55,000 new paying customers and make new sales of £2.5m over 12 months using

earned media, targeting new segments and old users who haven’t made a purchase in the

last 12 months.

OBJECTIVE #2: SELL – INCREASE AVERAGE ORDER VALUE AND SALES OF OWN-BRAND

Also within 12 month, increase AOV to £50 through enhanced product recommendations on

order pages and specific product alignment in Know Your Car features. Through the same

methods, increase the sale of own brand goods to 40%.

OBJECTIVE #3: SELL - INCREASE CONVERSION RATE

Increase conversion rate from the current 2.8% to 5% within 12 months through enhanced

content and improved product suggestions.

7 Based on the 940,000 estimated monthly visits for April 2015 indicated by www.similarweb.com and allowing

for some seasonal increases / decreases. 8 http://www.eurocarparts.com/affiliate-program

9 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013

http://www.similarweb.com/


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OBJECTIVE #4: SAVE - MIGRATE CUSTOMERS FROM OFFLINE TO ONLINE TRANSACTIONS

Increase percentage of customers who transact with us online to 40% within 12 months by

offering enhanced engagement options (e.g. Apps) together with supporting offline

incentive programmes e.g. online discount for first order.

OBJECTIVE #5: SIZZLE - EXTEND BRAND VALUE

Develop the foundations of a complimentary learning environment within 3 months – Know

Your Car – that empowers users and increases dwell time by at least 100%.


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4. Strategy

Our strategy will focus on delivering enhanced content and service standards to two

principal groups:

1. Existing ECP customers.

2. Niche enthusiast groups.

4.1 Audience

According to a 2013 AA / Populous report10, 21% (the highest percentage across six defined

groups) of the survey population were classed as Motorheads, who ‘live and breathe

motoring’ and are ‘quick to lift the bonnet…’

The report also states:

They drive frequently (more than 10,000 miles pa);

Twenty three percent do all or most of the maintenance to their car and;

73% enjoy watching motoring-themed TV shows.

We define the AA’s Motorheads as enthusiasts or hobbyists, within which there are a

number of niche groups that we have identified as key high-value targets.

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http://www.theaa.com/resources/Documents/pdf/aa-populus-5-year-report.pd


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4.2 Target Personas

Table 4.1 ECP’s Target Personas11

Hot Hatch Harry Classic Car Charlie

Demographic Male, 25 - 39, C2DE, young children, £125 - £499 pm

disposable income.

Male, 55+, ABC1, children left home, £1000+ monthly disposable

income.

Work Entertainment, Retail, IT. Company employee with increasing responsibility.

Senior management or business owner. Engineer, Architect, etc.

Geography Hotspots in the North West and

Central Scotland but strong representation nationwide.

Strong representation nationwide with hotspots in the North East and

East Anglia.

Hobbies & Interests Motorsports, Football, Video Games, Track Days, Movies.

Motorsports, DIY, Car Restoration, Class / Vintage Cars, Travel, Comedy

Preferred Media Max Power, PistonHeads,

the Sun, Fast & Furious, Top Gear

Daily Telegraph, Top Gear, Wheeler Dealers, Practical Classics magazine,

National Geographic.

Online Behaviour Heavy mobile user, online

for 50+ hrs p/w IT literate. Prefers PC / Tablet,

online for 16.20 hrs p/w

Why buying car parts products, and why

ECP?

Increase car performance & aesthetics / ECP offers good value

and wide selection through a responsive site.

Hobby car restoration project / broad parts selection, quick

delivery.

Potential barriers to purchase?

Possible niche product / brand requirements

Possible perception of a low value brand with inferior parts.

11

Developed with You Gov profiling tool (https://yougov.co.uk/profiler) and Sport England’s market segmentation tool (http://segments.sportengland.org/), amalgamating the key shared characteristics of the two dominant segments: Tim and Philip.

https://yougov.co.uk/profiler


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4.3 Primary Segment

There are significant shared characteristics across the target personas, ECP’s existing

customer base12 and our wider research to inform the foundations of our primary target

segment. The following summary identifies some of the key profiling elements:

Male;

Aged 26 – 55;

Predominantly White British;

Active interest in sports – both for social engagement and participation - particularly

cycling and football;

Most responsive to internet / e-mail media channels;

Inquiring mind-set, preferring an educational / informative style.

4.4 Benefits & Value Proposition

With an inquisitive and research-friendly core customer, our intention is to create an

educational resource that provides customers with content that informs and provides

product direction. The working title for this resource is Know Your Car. We believe this

approach will also offer a key competitive advantage over competitors.

Figure 4.1 Know Your Car ECP Value Proposition

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This is an assumption and further profiling of the existing customer database would be required.

SERVICE

Reliable, approachable and

well-supported.

PRODUCT Comprehensive product catalogue and equally robust resource and knowledge pool.

IMAGE

Product experts, friendly and

well-informed.

PERSONNEL Highly trained staff: specialists in their field, with the ability to support an Ask the Mechanic service.

KNOW YOUR CAR

ECP VALUE PROPOSITION


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4.5 Communication & Touchpoints

Figure 4.2 Customer Journey

AWARENESS

Opt-in e-mail newsletter to current database

SEO / PPC with targeted keywords

Display advertising with key partner sites

Affiliate network development

Social media

Video

CONVERSION

Website / Micro Site

Android / Apple App

Landing Pages

Reviews and customer testimonials

Social media

Mobile

Video

RETENTION

E-mail

Mobile

Social media

Video

Forums


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5. Tactics

Table 5.1 Media channels, messages and actions to implement the proposed ECP strategy

REA

CH

/ A

WA

REN

ESS

Channel & Substantiation Message Action & Controls

Google Pay-Per-Click

Campaign

44.84% of all traffic to the ECP website is from search; with

21.11% (of 44.84%) from Google PPC13.

Extend Every Part Every

Model promise to Know Your Car proposition, led by

targeted keywords & OVP e.g. oil change / step by step instructions on how to…

Digital Manager14

Review campaign monthly, evaluating keyword

performance and CTR.

Organic SEO

78.89% of all search

traffic is organic.

As above.

External management by

specialist SEO firm.

Weekly reporting.

E-mail

Already use e-mail for order confirmation & updates15.

Target segment respond well

to e-mail.

Weekly e-mails to promote Know Your Car theme.

Lesson summary;

Link to How To… video;

Aligned product recommendations.

Web team: organise content,

create editorial calendar.

Template / analytics support of a specialist e-mail

management service e.g. Mail Chimp

A/B test design variations,

with overhaul every 6 months to retain freshness.

Review weekly.

13

www.similarweb.com/website/eurocarparts.com / May 2015 data. 14

With a 4000-strong workforce we have assumed there is an established digital marketing team, including a Digital Manager with support team who can oversee this function as part of their daily activities. 15

Applying the £140k per day sales to the end consumer and AOP of £45, this could extend to 1m + e-mails for end consumers. Assuming some repeat orders and some opt-in refusal, we assume an opt-in e-mail database of 500,000. Needs to be verified and subject to a database cleansing process.

http://www.similarweb.com/website/eurocarparts.com%20/


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Display Advertising

Rich media, right of page, skyscraper above the fold

with high- traffic auto interest websites.

www.pistonheads.co.uk

(2.4m visits pm)

Dual-message design, carrying current product and Know

Your Car proposition.

Design team.

A / B test two designs to

measure CTR.

Rotate adverts across select websites across one-month

campaigns and evaluate.

Affiliate Network

An established affiliate

network and system in place.

Develop messaging through a foundation of high-value

bloggers16

Know Your Car launch.

Blog posts and display ads

Digital team.

Monthly analysis of CTRs from each affiliate.

Mobile

Details collected on ordering.

Target segment is heavy

mobile user.

Weekly Special Offer SMS

Digital team.

External delivery support,

where lists can be integrated across mobile and e-mail

marketing e.g. Mail Chimp / Call Loop.

Review weekly.

Facebook

Social only provides 0.49% of

all traffic to the website17, with 94% of this traffic split between Facebook & You

Tube. Current follower base offers room for growth and

we believe these channels can deliver significantly more

traffic.

General OVP promotion + Know Your Car-specific

aligned with special offers,

Target identified personas to drive website clicks and by

association Likes to ECP Facebook page.

Social Media Manager.

Weekly reporting of new Likes.

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http://www.cision.com/uk/social-media-index/top-10-uk-automotive-blogs/ 17

www.similarweb.com/website/eurocarparts.com / May 2015 data.

http://www.similarweb.com/website/eurocarparts.com%20/


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Video

Established You Tube channel and small library of How To…

videos

Development of weekly How To … videos to support Know Your Car. 5-10 minute videos, focusing on relatively simple

tasks at launch.

Use current videos as launch base.

Digital Manager, with new

staff member managing the Know Your Car section.

You Tube-hosted videos.

Weekly review in line with

each lesson.

CO

NV

ERSI

ON

Channel Message Action

Website / Micro Site

See Section 6 for detailed website changes.

New micro site to house key components of Know Your

Car. To include themed lessons comprising:

You Tube-hosted videos;

PDF knowledge sheets;

Further supported by:

Ask The Mechanic section;

User Forums.

Digital Manager lead. New

Know Your Car section manager.

External development of new

micro site and website changes.

Weekly internal updates

through CMS.

Android / Apple App

Heavy Mobile Users

Two core functions: (1) Full Product Catalogue / E-comm function (2) Know Your Car

Content.

External development

Reviews & Customer

Testimonials

Very strong feedback; currently under-used as a

promotional tool.

Integrate into Know Your Car site for feedback on each

individual lesson.

Know Your Car section manager.

Collate and review feedback

/ scores after each lesson (weekly).

Social Media

Established base on Facebook / Twitter

Weekly posts and tweets announcing updates to Know

Your Car.


Weekly review of Retweets, Likes, Shares, feeding into

wider monthly review.


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Mobile See Reach.

See Reach. See Reach.

Video

See Reach.

Introduce Guest Spots with

popular TV mechanics e.g. Ed China, Wheeler Dealers.

See Reach.

RET

ENTI

ON

Channel Message Action

E-mail

Continue weekly promotion of Know Your Car, integrate more aligned Special Offers. Promote launch of Forums.

See Reach

Mobile See Reach

See Reach See Reach

Social Media

Established base on Facebook / Twitter

Weekly posts and tweets announcing updates to Know

Your Car.


Weekly review of Retweets, Likes, Shares, feeding into

the wider monthly review to establish lesson popularity.

Video See Conversion / Reach

See Conversion / Reach See Conversion / Reach

Forums

Strong community focus, with anticipated knowledge share

across the forums.

Development of Know Your Car community, inviting

deeper user participation.

Know Your Car section

manager.

Develop core subject discussion points. Daily

mediation to ensure proper use of forum.

5.1 Controls & Ongoing Improvements

Google Analytics, with amendments to ensure we track new key words;

Whilst weekly reviews have been applied for most of the channels, a detailed

monthly report will be compiled contrasting returns across all campaigns;

Sales figures derived from accounting;

All campaigns subject to an ongoing TIMITI18 review process.

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Try It! Measure It! Tweak It! – Jim Sterne, Web Metrics


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5.2 Timing

Table 5.2 Gantt Chart

Channel 1 2 3 4 5 6 7 8 9 10 11 12

Web / Know Your Car (KYC) Micro Site

Implement changes to main site

Design (KYC) micro site – month 4 launch

Develop KYC 12-month content calendar

KYC Lesson Production (incl. Videos)

Develop KYC Forum / Ongoing Mediation

PPC – Implement & Track (I/T)

Agree Ad Words and KYC OVP

SEO (I/T)

Identify x3 SEO firms, assess & engage

E-mail (I/T)

x3 e-mail providers: assess, engage one

Develop 12-month content calendar

Template Design - ongoing A/B testing

Display Ads (I/T)

Identify preferred sites – 3 month terms

Ad design - ongoing A/B testing

Mobile (I/T)

x3 SMS providers: assess, engage one

Preliminary 12-month offer schedule

Social (I/T)

Develop Facebook ad campaign

Twitter updates – Specials / KYC content

Month


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6. Website Recommendations

Website recommendations have two key objectives: (1) General improvements and (2)

Additions to support Know Your Car.

6.1 Home Page

Image 6.1 Home Page Recommendations

1. Need to introduce script on website launch detailing the use of cookies.19

2. Lift the promotion of the Why Shop With Us? bar, including the addition of customer

review Trust Pilot scores.

3. Current call to action, whilst a useful plug-in used by several competing websites, can

deliver defective results. Need to improve accuracy of the tool.

4. Following survey results, consider the introduction of a more dynamic carousel promo

banner (limited to x3 promotions), where more products / services can be positioned.

5. Customer service needs to be better promoted. Whilst traditional design principles

suggest eyes lead bottom right of the page, here it lacks definition.

19

The Privacy and Electronic Communications (EC Directive) Regulations.

FOLD

1

3

5

2

Key: General Improvements New Additions

4 6 7


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6. Promotion of the new Know Your Car section, with a direct link to the new micro site

where browsers will find: Ask The Mechanic; Forums and links to weekly How To …

videos.

7. Introduce e-mail sign-up form in conjunction with the Know Your Car promotion.

6.2 Product Page

Image 6.2 Product Page Recommendations

1. Most products currently limited to one image. Certain products e.g. performance and

styling would benefit from alternate views / 360 degree rotation functionality. Several

product pages were also found to have no images. A review and check process needs to

be implemented to ensure all products have images.

2. Upsell – Customer Also Bought… – lost below the fold and very discrete. Several

products have no recommendations. Need to review product affinities and enhance the

promotion of these products.

3. Where possible - if relevant content is available - integrate Know Your Car function to

align with product e.g. for oil filter provide link to How To… change an oil filter video.

FOLD

2


1

3


25

6.3 Landing Page

Image 6.3 Landing Page Recommendations

1. Clear titling and good use of brand logos (conveying trust), but layout could be

improved. Select 4-5 of the highest profile brands and use higher pixel logos.

2. Integrate logos into the promo image, freeing up space below to lift Special Offers,

which are currently below the fold.

3. Integrate call to action. Rather than promoting the KYC function here, (which could

distract), instead offer an opt-in e-mail to promote the current Product Update

newsletter.

6.4 User Survey

Overall we feel the ECP website delivers an efficient and effective online service. The

recommendations here we believe will further enhance the website. However, given the

current high level of customer satisfaction we suggest running a custom pop-up survey

(prior to any changes) for a period of one-month to gather feedback.

FOLD

2


1

3


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7. Budget & Forecast

Table 7.1 Media Mix Budget & Returns

The table shows delivery of 57,202 sales and an allowable marketing cost (AMC) of £3.80

20

Defined here as the total number across the year. An e-mail database of 500,000 therefore translates to 6,000,000 (12 months x 500,000 addresses). For PPC, Google’s suggested 83k daily impressions equates to 21

Applying the improved conversion rate from 2.8% to 5% conversion 22

According to data from the Mobile Marketing Association

MEDIA BUDGET UNIVERSE20 CTR CLICKS CONV. RATE21

SALES CPS

PPC 55,000 25,000,000 1% 250,000 5% 12,500 £4.40

Search 24,000 n/a n/a 300,000 5% 15,000 £1.60

E-mail £16,640 6,000,000 5% 300,000 5% 15,000 £1.11

Affiliate 30,000 n/a n/a 30,000 5% 1,500 £20

Display

30,000

28,800,000 0.07 20,160 5% 1,008 £29.80

Mobile £38,400 1,200,000 15%22 180,000 5% 9,000 £4.27

Facebook £25,000 12,775,000 0.5% 63,875 5% 3,194 £7.83

TOTAL 219,040 73,775,000 n/a 1,144,035 5% 57,202 £3.80


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Table 7.2 Total budget allocation & ROMI across all campaign components

MEDIA BUDGET ROMI23

Website £3,000 n/a

Micro Site £10,000 n/a

Know Your Car Manager £25,000 n/a

Video (Production) £15,000 n/a

App Development £30,000 n/a

PPC £55,000 £562,500

Search £24,000 £750,000

E-mail £16,640 £750,000

Affiliate £30,000 £75,000

Display £30,000 £50,400

Mobile £38,400 £450,000

Facebook £25,000 £159,700

TOTAL £302,040 £2,797,600

Table 7.3 Gross profit after cost of goods sold but before other operational costs:

Total Sales Sales Breakdown24 Gross Profit

£2,797,600

Own Brand: 40% of sales at 70% margin = £783,328

OEM: 60% of sales at 50%

margin = £839,280

£1,622,608

23

Assuming an increased average order value of £50 24

Assuming the revised sale ratio, with own brand increasing from 30% to 40% of total sales.


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8. Appendices

Marketing Excellence, Routledge, Dave Chaffey & PR Smith, Pages 1-46 / 534 – 576

The SOSTAC Guide to Writing the Perfect Plan, P.R. Smith (2011) Amazon E-book

Google report: Auto Aftermarket, Today’s Digital Driver, November 2013

Mintel Report: Car Aftermarket - UK - November 2014, Neil Mason

AA Populous Report : http://www.theaa.com/resources/Documents/pdf/aa-populus-5-year-report.pdf

Automotive Council UK Report: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211901/13-975-driving-success-uk-automotive-strategy-for-growth-and-sustainability.pdf

Inside Online Report: http://insideonline.co.uk/wp-content/uploads/2015/03/CarParts-SectorReportDigital.pdf

IBIS: http://www.ibisworld.co.uk/market-research/motor-vehicle-parts-retailers.html

Trend Tracker: http://www.trendtracker.co.uk/blog/2014/07/retail-aftersales-market-value-up-10 http://hedgescompany.com/blog/category/auto-industry-news/

SMMT May Report: http://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_Facts-Guide_May.pdf

BCA Used Car Market Report: http://www.bca-group.com/~/media/Files/B/BCA/documents/bca-2013-used-car-market-report.pdf

KPMG Retail Report: http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/newsreleases/pages/how-will-demographic-trends-in-the-uk-affect-the-retail-sector.aspx

http://www.theaa.com/resources/Documents/pdf/aa-populus-5-year-report.pdf

http://www.theaa.com/resources/Documents/pdf/aa-populus-5-year-report.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211901/13-975-driving-success-uk-automotive-strategy-for-growth-and-sustainability.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211901/13-975-driving-success-uk-automotive-strategy-for-growth-and-sustainability.pdf

http://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_Facts-Guide_May.pdf

http://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_Facts-Guide_May.pdf

http://www.bca-group.com/~/media/Files/B/BCA/documents/bca-2013-used-car-market-report.pdf

http://www.bca-group.com/~/media/Files/B/BCA/documents/bca-2013-used-car-market-report.pdf