CarMax was created in 1993 as a subsidiary of Circuit City, an electronics retailer, to apply the "big box" retail model to used car sales. CarMax operates large used car "superstores" with 500+ vehicle inventories and aims to provide a no-haggling sales experience. It has grown significantly since opening its first location in 1993 and became an independent, publicly traded company after being spun off from Circuit City in 2002.
20. Sacramento Los Angeles San Antonio Houston Tampa Jacksonville Va. Beach Raleigh Charlotte Greensboro Charlotte Greenville Las Vegas Fresno Fresno Tucson Large markets (9) Mid-sized markets (28) Small markets (1) Store Growth: • FY07 10 stores +15% • FY08 13 stores +17% (Est.)
21. Tucson San Diego Los Angeles (2) Modesto Newport News Baltimore Charlotte ) Atlanta • FY08 13 stores
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33. Revenue ( M) Profit Margin (12 mos) Employees Market Cap (M) Sonic Automotive, Inc . $7,972.1 2.3% 11,200 $992.1 CarMax, Inc $7,465.7 4.5% 13,736 $4,633.5 Copart, Inc. $560.7 38.8% 2,536 $3,349.6 America's Car-Mart, Inc. $240.3 1.0% 800 $140.8 Strategy International Ins. Group, Inc. $5.7 -126.1% 19 $0.4
44. Marketing Concept Core concepts Need/ Want/ Demand Product (goods and services) Value/ cost / Satisfaction Exchange/ Transaction Relationship/ Network Private mode of transport Sale & purchase Of used cars & Selling of New car Good quality at less price Luxuri ous/ Econom ical Satisfied customers by High quality service Purchasing & Selling of cars for money Manufacturer Finance Companies
47. Technology used Customer need Customer group Middle and upper middle class Americans Reliable cars with no haggling over price 110 point inspection system- huge and exhaustive data base for inventory
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60. Product differentiation Carmax differentiated its product under two main dimensions Services Differentiation Personnel Differentiation
