Conroy Acura s case Analysis

Group 9 Pallavi Luthra (152) Pallavi Singhal (30) Akanksha Bhatnagar ( 102) Mohit Lalchandani (178) Mukul Arora (144) Amitabh Tiwari( 52)

What are the strategies should Conroy implement to improve his company s long run profitability?  Sherden. RSX . y If we curtail our expense on the retention of CSX . we may lose half of them serving the 30% bottom.As spending equally in all segments for the retention rate is not a good option y Also if we spend more on the acquisition of premium segment of cars .821 + $366.026 +$797. Facts : y The major source of revenue for Conroy is the sales of MDX AND Tl . On the basis of above facts. we will be able to attract more customers .we assume that if we increase our marketing effort on it there is a scope of increasing sales in it . in order to increase our over all profitability is striking more Spent on retention and aquisition of customer is equal in all segment cars . leading with the total gross life time profit of ($702. RSX and TSX fron $ 10 to $ 5 that will not harm much the retention rate . which is more than all others even if we look at the sum profitability as well ($185.547 + $215.470 = $ 922878) y y y y Margin in these two cars is high if we compare it with CSX . the following assumptions. TSX Volume of these cars is high in comparison to the premium RL . Spending on these two cars .20-80-30 rule : Top 20% of customer generate 80% value of profitability .729 = $1499755) .040 + $155. stratergy and projections are formed Assumptions: y Since the number of cars sold in MDX and TL is more than the highly premium RL .

premium segment for .will be a form of retention strategy in itself. we are trying to provide economy to customer by decreasing margins . Reduce the margins of CSX . with marketing point of view because usually consumer buy a car in higher segments for various reasons like prestige . RSX and TSX from $ 10 to $5 Increase the aquisition spend on TL nad MDX from $ 241 to $ 290 The projected changes in sales and revenue are shown in the excel as per above changes focus more on the mid.  Using economy factor in premium segment cars is not a good option .6 % Reduce the retention spend on CSX . RSX and TSX from 8% to 7. comfort etc . Their will be increase in sales if we reduce our margins Strategy : Segmented Marketing  Marketing spend : we are trying to marketing spend  Providing economy : In case of lower segment car.y y Providing economy to the customer in lower segment cars.

 Original Excel  Modified excel : RESULTS .

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