Analysis of the South African Automotive Dealer Management landscape

Client: A leading provider of Automotive Dealer Management systems

Problem statement

A leading provider of Automotive Dealer Management systems identified a need to conduct research in South Africa in support of its business development objectives for their Dealer Management System.

Our client was looking to grow their Dealer Management System (DMS) offering to a wider range of customers. They wanted to survey Motor Retailer Groups and Dealers to gain a better understanding of the potential market opportunity that exists in the dealer groups. This included:

  • Determining the current perception of DMS
  • Understanding the strengths and weaknesses of current DMS offerings.
  • Establish what would make a more efficient DMS
  • Identify additional elements that would make the DMS a more complete offering
  • Determining which value added services would complement the DMS
  • Establish what impact mobility is having on DMS requirements

The solution approach

The study followed a quantitative approach, with a total of 160 telephonic interviews that were completed. The target market segmentation for this study is as follows:

  • Top-tier Dealer Retail Groups and Dealers
  • Mid-tier Dealer Groups and Dealers
  • Third tier Dealers

The respondents targeted were Franchise Directors or Managers in the dealer groups where high level decision making is done and Dealer Principals or Financial Managers at the dealers.

Outcomes achieved

The finding of the research study provided them with a better understanding of the market opportunity and areas of importance from a functional point of view. In addition the results confirmed decisions on growth and acquisition.