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The aim of the paper is to provide a marketing overview of a startup that is concentrated on the delivery of e-commerce platform services for customers interested in trading used cars. The overview will present the most important information on the company including its vision, direction, market position, and unique selling points among others.
The company is an LLC that is registered under the name Carloha. It was founded in 2014 by Liang Long, Chandler Wang, and Pu Shi (Carloha). Carloha is headquartered in New York and hires 12 employees (Carloha). The company provides its customers with access to a trading platform for pre-owned vehicles of high quality. Carloha markets its services with the help of social media platforms such as Google+, YouTube, Twitter, and Facebook among others. The company’s mission is “to build a brand new platform, which allows both buyers and sellers to maximize their profit gained by providing various services” (Carloha).
In terms of marketing segments, the company targets Chinese immigrants, Chinese students, and other people interested in affordable vehicles. Due to the fact that there are many players operating in the industry, the company is faced with stiff competition. Moreover, the creation of a trading platform does not require significant financial resources; therefore, there are no natural entry barriers that can prevent potential entrants from engaging in direct competition with Carloha. Furthermore, the online car dealers industry is experiencing growth after the recession and currently accounts for approximately 53 percent of all vehicles purchased online (IBIS World). The total revenues of the industry were $35 billion in 2015, and it employs almost 37, 000 people (IBIS World). In terms of market position, the company specializes in used cars. It is clear that Carloha continuously engages in differentiation activities in order to provide its customers with unique selling propositions. The main selling point is the company’s exclusive inspection system that is aimed at generating customer’s trust. The system uses 203 elements of quality that have to be checked before a vehicle can be approved for registration at the company’s platform (Carloha). Another unique selling point of the company’s services is 90-day warranty (Carloha). The platform also provides its customers with free shipping nationwide. A third-party vehicle assessment services offered by Carloha can be considered a substantial differentiating point. In terms of seasonality of services, it can be argued that the highest seasonal demand starts in summer and spring.
Current marketing efforts of Carloha are focused on the promotion of the platform with the help of social networks such as Facebook and Twitter. The company’s app is available on the Apple App Store. In order to deliver a unique trading experience to its customers, the startup operates a professionally-built trading website that can be described as “an information sufficient and user-friendly” (Carloha). The main strength of the website is the ability to customize and optimize vehicle information. The customers are also able to compare different cars and suggest their trading price. However, a selling section of the website is not easily navigable, which can be considered a substantial weakness.
The marketing overview of Carloha has shown that the company has many unique selling points that help it to differentiate its services from those of its competitors. Even though there are many players in the industry, the startup has a good chance of succeeding in the market.
Carloha. “What is Carloha.” Carloha. Web.
IBIS World. “Online Car Dealers in the US: Market Research Report.” IBIS World. Web.