1. E-MARKETING PLAN- CARFAX IN CHINA

2. 1. CARFAX
• Carfax is a commercial web-based company that
supplies Vehicle History Reports (VHR) to individuals
and businesses on used-cars and light trucks
• Presence in America & Canada
• Core Product- Carfax Report
What is Carfax?
• Used Car Buyers
• Auto Dealers
Customers

3. 2. SITUATION ANALYSIS

4. 2.1 MARKET OPPORTUNITY
• Used Vehicle Market on rise
• In 2010, China became the largest single vehicle market
in the world and was projected at that time to
experience approximately 8% growth and contribute
approximately 35% of worldwide growth for the
following 10 years.
Trend
• Expected CAGR >16% (2014-2017)
• Expected Transaction volume of $9.5M in 2017
Opportunity

5. 2.2 PEST ANALYSIS
Economic
• In 2013, UC Trading Volume - 5
million Cars and 291.6 billion CNY
• 7-8% growth per year over the
next 10 years
Social and Cultural factors
• Potential need to change or
upgrade the vehicle
• Willingness to buy a used car.
• Developing habit of conducting
online research and purchasing
Technological factors
• Internet technology is upgrading
along with online payment
technology
• Lots of Online dealership website
had been launched.
Political
• Government support
• Increasing difficulty of obtaining a
new license plate in China’s tier 1
cities

7. 2.3 SWOT ANALYSIS
HARMFUL
To achieving objectives
HELPFUL
To achieving objectives
INTERNAL
FACTORS
EXTERNAL
FACTORS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
SWOT
Analysis
● Rich Industry Experience
● High Profit Business Margin
● Brand Identity & Reputation
● Cultural and Language
Barrier
● No other service in
Market that provides
VHR
● Car density limits
● Supplier resource
and reputation
● Threat of Hacking –
internal & Externa

8. 2.4 COMPETITOR ANALYSIS
COMPETITOR OVERVIEW PRODUCT INFORMATION
268 v standardization
used car test assessment
system
- A professional system invented by Beijing
Peak Science and Technology Co. Ltd.
- Owned by CheYiPai (one of the biggest
online dealership in China)
- China’s first intelligent test assessment
system for the UC trade service industry.
- judges the accident level
- run a comprehensive appraisal of used car
condition
- Does a price assessment.
- Assists in understanding UC condition and
value.
Check Auto
- Individual UC testing system that is owned
by another online dealership website
YouXinPai
- The only system to have China’s national
used car testing patent.
- Provides customers professional optimized
used car testing
- Allows customers to customize the testing
items and other value-add services.
- Provides a reflection of the vehicle’s current
condition and a suggested sales price.
Local Dealerships
- Provide customized used car checking
service in their body shops.
- Some dealerships collaborate with online
dealer websites to provide a door-to-door
used car checkup service.
- Provides very basic assessment with some
oral suggestions.

9. 3.0 GLOBAL E-MARKETING STRATEGIC PLANNING

10. 3.1 DEMAND ANALYSIS
Demand for UC is driven by Income Inequality
• Richest 1%of households owning a third of
the country’s wealth
• High quality secondhand versus low quality
first hand
Our plan- Capture 10% of total UC Market –
1.7 Million VHR

11. 3.2 SUPPLY ANALYSIS (1 OF 2)
UC Supply Determinants
• Reduction due to Dealers inability to fill inventory
• Increasing supply trend as owners sell into the market rather than handing on
vehicles to other family members – Driven by overall economic growth
Carfax Report Supply
• Our supply is based on UC supply in the Market
• We don’t Manufacture reports. Reports are created by our innovative digital
solutions from our database
• Systems capable enough to supply 1.7M VHR

12. 3.2 SUPPLY ANALYSIS (2 OF 2)
• Small and Big car markets are popping up
• Newly acquired 26,000-square-meter auto mall in Tianjin into a
flagship site for its used car business, in $91.4M
Market Responsiveness
• Trading volume -350,000 vehicles, Amount- RMB19.26 billion, a
respective YOY surge of 58.4% and 60.3%.
• cheyipai.com and youxinpai.com: UC trading volume - 71.4% of the
entire UC e-commerce market
UC e-commerce
Market Supply in 2014
• Used vehicles make up only 19.1% of total car sales volume in China,
compared with 72.4% in the United States.
Room for Growth

13. 3.3 SEGMENT ANALYSIS -1 OF 2
Informal and fragmented Market
Pricing of UC is not definite, since history is unavailable.
Customer dealing is Informal

14. 3.3 SEGMENT ANALYSIS – 2 OF 2
People don’t trust car dealers
Accident History –Difficult to Retrieve
Car dealers are facing the issue of ‘Trust’

15. 3.4 SEGMENTATION STRATEGY
• Having sunk costs and a vested interested in selling
vehicles.
• Fighting the industry stigma of being dishonest.
• Needing to differentiate themselves from truly
dishonest dealerships.
• Easy to create buzz among potential UC Buyers
• Big Network to create word of Mouth.
TARGET MARKET 1:
Car Dealerships
• Don’t have enough Time and Money for Alternatives
• VHR will help them take an informed decision on
owning a car for further sale
• New and inexperience drivers, do not possess
knowledge on Car and Car-buying
• Looking for time-saving options to make car-purchase
decisions.
TARGET MARKET 2:
Age group of 18-35
year olds Car Buyers

16. 3.5 PRODUCT DIFFERENTIATION
How We’re
Different
ONLY vehicle report on the market that includes past
performance of vehicle.
Written VHR is meticulously comprehensive and
organized chronologically-far superior to most current
products in this market.
No physical inspection of vehicle needed- done
electronically with VIN number.
Value Added UC Dealers
Protects Dealership when purchasing cars.
Enhances Dealer Reputation/Increases Trust
UC Buyers
Alerts buyers to hidden problems.
Helps make decisions with confidence.

17. 3.6 ADVERTISING & POSITIONING CONTENT
• Making VHR a Necessity in Buying used car
GOALS
• Leverage Brand Reputation in America and Canada
• Position Carfax as an objective advocate for all parties in UC
transaction by providing transparency
STRATEGY
• All Audio, Video, Text will be consistent in delivering our
message
CONSISTENCY
• Brand Reputation of CARFAX
• Product Value and its uniqueness
• Elements of Carfax Report and their Benefits
• Perceived Benefits to Car Dealerships
• Costs savings in the long run for end consumers
• The sales process for Sample Client
ADVERTISING CONTENT WILL HIGHLIGHT

18. 3.7 POSITIONING
POSITIONING Position the company as provider of truth and transparency-
an advocate of the Chinese consumer, the UC Dealer, and
thus the overall China UC market.
Position our product as a necessary compliment to the used
car transaction.
TAG LINES “Whether buying or selling a vehicle, you want to get a
CARFAX report”
“Buying a used car? Just say-Show me the CARFAX!”

19. 3.8 POSITIONING STATEMENTS
“Having helped Used car buyers in USA and
Canada, Carfax is now in china.”
“For Used car Buyers and Sellers, Carfax is the only online
service that provides instant access to Vehicle History Report
and helps in making decision with confidence”

20. 4. MARKETING

21. 4.1 MARKETING OBJECTIVES
Utilize local direct sales force to obtain 10% dealer market penetration within initial opening year.
Increase dealer market penetration quarterly.
Maintain quarterly sales growth consistent with or outpacing China’s used car industry growth.
Increase end user purchases quarter over quarter.
Increase sales revenue consistent with bullets 3 and 4.
Increase brand recognition by showing quarterly improvement in brand recall and brand recognition scores.
Systematically Improve database volume and efficiency to maximum performance and product value while
reducing costs.
Increase website traffic quarter over quarter during initial 2 year ramp up period.

22. 5. GLOBAL E-MARKETING STRATEGIES

23. 5.1 FOUR ‘P’ STRATEGIES (1 OF 2)
OUR OFFER  PRODUCT
• e-Report containing Various Sections in the Report
• In Chinese Language
• Free Access to condensed reports to build brand awareness and familiarity
with our web platforms. Example: ‘odometer only’ report
VALUE  PRICE
• The existing market players charge a commission fee for assessing the safety of a
used Car which is nearly 1% of the UC value.
• Conducted several questionnaire and focus group survey
• Chinese customers willing to pay - One Carfax report for $39.99 and Five CARFAX
Report for $49.99.

24. 5.1 FOUR ‘P’ STRATEGIES (2 OF 2)
Distribution  Place
• Direct Marketing (online & offline)
• Via Website
• Via App
• Online Access on Web + E-mail Access
Communication  Promotion
• Target Market 1:Display adverts on
Online Car trading platforms
• Target Market 2: Social Media

25. 5.2 RELATIONSHIP MANAGEMENT STRATEGY (1 OF 2)
CarfaxServiceChinalink.com.
Service facilities that can contribute data to CARFAX CHINA
Strategy : Connection, Collaboration and Value Creation via SRM
Mutually Beneficial- They Provide Information, We provide Brand Recognition
Supplier Relationship Management (SRM)
Insurance Co.
Motor Vehicle
Records
State and other
Inspections
Fire & Police
departments
Service and Repair
facilities (4S stores)

26. 5.2 RELATIONSHIP MANAGEMENT STRATEGY (2 OF 2)
Strategy- 24x7 Customer Support
Call Supprt
Number
Online Chat Send Email
CRM
Car Dealers End Users

27. 6. IMPLEMENTATION PLAN

28. 6.1 MARKETING MIX (6 P’S) TACTICS
6P’s Aim Digital Tools
Product/Service
Serve customers’
need
Website CarfaxChina.cn
Price/Fees Payment Method
Online Payment
Gateways to Banks
Alipay, Hijaouax
Place (Availability)
Product delivery
(How)
Online /email
Product
Availability(Where)
SEO (Search Engine
Visibility)
Baidu
Promotion
Marketing/PR/Brandi
ng
Blogging, social
media, Mobile
Marketing, website,
email
Qzone, Sina Weibo,
Wechat, Youku,
Iqiyi
People
Provide Customer
Service
Live Chat, emails,
Phone
Process High Quality Product
Innovative Digital

29. 6.2 VIRAL MARKETING & TRAFFIC GENERATION TACTICS

30. 7. FINANCIALS

31. 7.1 PLAN OF ACTION
Website
Localization
15%
Social Media
Marketing
15%
Email Marketing
6%
Mobile
10%SEO
20%
Video
10%
Display Ad
24%
ONLINE MARKETIG BUDGET DISTRIBUTION
Decided Marketing Budget: $180,000
Timeline : 1 year

32. 7.2 POTENTIAL MARKET IN TERMS OF DOLLARS, PROFITS AND SALES

33. 7.3 ROI ON MARKETING EFFORTS

34. 8. EVALUATION PLAN

35. 8.1 DIFFICULTIES/RISK
A Collectivistic Society
• Harmony in group is highly
important. Accuracy of
reports may be affected.
Partial judiciary system
• No strong laws protecting
intellectual property
• Cyber Espionage.
Predicted economic growth of
7 to 8% Slow economic
growth may benefit the use car
market.
Low visibility online - China has
over 700 million internet users
in 2016  a 52.2% penetration
rate.
Credit Card Penetration- 43.5%
in 2012

36. 8.2 WORST CASE RISK
WHAT IF:
1. Revenues are lower than expected?
2. What if our quarterly growth does not consistently outpace China’s Used-Car industry growth?
3. What if our dealer market penetration quarterly with 2 year goal of over 50% market
penetration did not materialize?
4. What if our goal of 10% dealer market penetration within initial two quarters of operation did
not materialize?