1. HBR Case Study CDK Digital Marketing: Addressing Channel Conflict with Data Analytics 第 一 組: 張瑞釗 林吉城 陳東燕 許子淵 指導老師: 林建信 博士 陳
20 19
May 21

2. My MOTTO of Marketing Sell yourself before selling your product! ROETL
Culture is the habit of being pleased with the best and knowing why.

3. ROETL Introduction Automobile Retailing in the US General Motors
Contents
Introduction 01
Automobile Retailing in the US 02
General Motors 03
CDK Digital 04 05
CDK Digital’s 2007 Offering to GM Dealers
ROETL
Culture is the habit of being pleased with the best and knowing why.

4. Introduction ROETL ONE 01
Culture is the habit of being pleased with the best and knowing why.

5. 01
Introduction 01
CDK Digital Marketing
McCann would present CDK Digital’s justification for renewing its contract to manage the websites and online advertising of GM automobile dealers.
CDK Digital’s original value proposition to GM was greater control of dealer websites to ensure that all brands and models were presented and marked consistently
But dealers felt the solution was inflexible and less responsive to their needs.
McCann and Reed recognized that CDK was in the channel conflict between GM and its dealers
Reed said: “GM hired CDK Digital, but its dealers can fire us”
ROETL
Culture is the habit of being pleased with the best and knowing why.

6. 1. What misalignment(s) caused channel conflict between manufacturers and delers in the automotive industry? How was this conflict reflected in the attitudes of GM and its dealers toward the CDK Digital program?
2. How would you characterize CDK Digital's core competencies as of 2011?
3. Suppose a car shopper's interests could be known when she visited a dealer website. How would the dealer want to treat her? What about the OEM?
4. How can CDK Digital leverage its core competencies to provide a website solution that both GM and its dealers consider to serve their interests?

7. Automobile Retailing in the US
ONE 02
Automobile Retailing in the US

8. Automobile Retailing in the US01
Automobile Retailing in the US 02
CDK Digital Marketing
Marketing and advertising
Auto industry advertising fell into three distinct tiers:
Tier1: manufacturer
Tiers: regional dealer groups
Tiers: individual dealers
The advertising media: newspaper had dropped from dealers’ top advertising medium to number three, behind Internet and television.
ROETL
Culture is the habit of being pleased with the best and knowing why.

9. Automobile Retailing in the US01
Automobile Retailing in the US 02
CDK Digital Marketing
Consumer Behavior
Myth: manufacturer dominated the top and dealer dominated the bottom.
Manufacturer marketing succeeded in getting 63% of auto buyers to start their buying journey, but only ¼ of these shoppers bought the models.
Consumers relied heavily on web-based research, and competing manufacturers used online advertising to direct consumers to other brands and models.
ROETL
Culture is the habit of being pleased with the best and knowing why.

10. Automobile Retailing in the US01
Automobile Retailing in the US 02
CDK Digital Marketing
Dealer Websites
Manufacturers: franchisee bran. d compliance program
Dealers: had multiple websites
GM’s dealer websites in 2007, only 43% if dealers used the GM- supplied website as their online presence when CDK run it.
Compliance program – Toyota
Manufacturer create brand standards, dealers conform to them for
websites.
ROETL
Culture is the habit of being pleased with the best and knowing why.

11. Automobile Retailing in the US01
Automobile Retailing in the US 02
CDK Digital Marketing
Dealer Websites
Single-platform: CDK Digital & Dealer.com
CDK Digital: GM Chevrolet, Buick, GMC, Cadillac, Volkswagen & Hyundai
Dealer.com: Subaru, Audi
Two or three platform providers: Lexus, BMW, Kia, Ford
ROETL
Culture is the habit of being pleased with the best and knowing why.

12. ONE 03
General Motors

13. General Motors ROETL 03 General Motors Founded in 190801
General Motors 03
CDK Digital Marketing
General Motors
Founded in 1908
The brands: Chevrolet, Pontiac, Oldsmobile, Buick Cadillac, shared corporate management to create economies of scale and each had unique styling and technology.
Ladder of success: entry-level buyers with Chevrolet >> to Pontiac,….Cadillac
ROETL
Culture is the habit of being pleased with the best and knowing why.

14. General Motors ROETL 03 General Motors01
General Motors 03
CDK Digital Marketing
General Motors
: GM the world’s biggest potential car market
Crisis hit in 2008, 2009 bankruptcy
In 2007: GM had over 6000 dealers resulting in higher costs
Toyota: enter US market in the late 1950s generating sales in nearly equal to GM’s with less than 1/3 the number of dealers
ROETL
Culture is the habit of being pleased with the best and knowing why.

15. ONE 04
CDK Digital

16. CDK Digital ROETL 04 CDK Digital01
CDK Digital 04
CDK Digital Marketing
CDK Digital
CDK Digital was formed in 1995: Internet would be more efficient than classified advertising connecting buyers and sellers of cars
The Cobalt Group: connecting dealers with both shoppers and manufacturers
1996: won the endorsement of Lexus
2004: GM selected Cobalt
2007: GM awarded Cobalt a five-year single-platform contract to provide websites to dealers
ADP Dealer services acquired Cobalt in 2010 for $400 million
2014:ADP Dealer services was spun off from ADP and Cobalt renamed to CDK Digital
ROETL
Culture is the habit of being pleased with the best and knowing why.

17. CDK Digital ROETL 04 Advertising01
CDK Digital 04
CDK Digital Marketing
Advertising
CDK: website company and online advertising
CDK advantages: online advertising having ability to track a significant part of a car shopper’s online journey using digital tags across all CDK Digital dealer websites
Tracking car brands and models researched, dealer websites visited, ads clicked on, and models viewed
Reed: our strength with manufacturers is that we get closer to answering “ what sells cars” than anyone else.
ROETL
Culture is the habit of being pleased with the best and knowing why.

18. CDK Digital ROETL 04 Advertising01
CDK Digital 04
CDK Digital Marketing
Advertising
2008: acquired AdMission that could dynamically show ads to each shopper based on the unuique car-buying journey
CDK: create a new line of business placing OEM and dealer advertising on participating automotive sites.
CDK built a sophisticated advertising platform using analytics to customize content to individual consumers in real time base on their specific online car-buying journey.
CDK had developed true big data –
Reed said:” No other company in the automotive space has this capabilities.
ROETL
Culture is the habit of being pleased with the best and knowing why.

19. CDK Digital ROETL 04 Advertising01
CDK Digital 04
CDK Digital Marketing
Advertising
2008: acquired AdMission that could dynamically show ads to each shopper based on the unuique car-buying journey
CDK: create a new line of business placing OEM and dealer advertising on participating automotive sites.
CDK built a sophisticated advertising platform using analytics to customize content to individual consumers in real time base on their specific online car-buying journey.
CDK had developed true big data –
Reed said:” No other company in the automotive space has this capabilities.
ROETL
Culture is the habit of being pleased with the best and knowing why.

20. CDK Digital’s 2007 Offering to GM Dealers
ONE 05
CDK Digital’s 2007 Offering to GM Dealers

21. CDK Digital’s 2007 Offering to GM Dealers01
CDK Digital’s 2007 Offering to GM Dealers 05
CDK Digital Marketing
GM selected CDK Digital as its sole provider of digital marketing services
2007: GM paid CDK Digital to provide each dealer with a basic website, SEO - that CDK would deliver a quality experience to online shoppers
GM offered the package to dealers
Dealers still has their own websites in addition to the GM-provided site - only 43% used
: half the dealers using non-GM websites to 70%
ROETL
Culture is the habit of being pleased with the best and knowing why.

22. CDK Digital’s 2007 Offering to GM Dealers01
CDK Digital’s 2007 Offering to GM Dealers 05
CDK Digital Marketing
Re-contracting with GM
: CDK Digital solution for GM had morphed from a website solution to an Internet media solution.
Weakness in the current CDK Digital solution.
First, the website template was too restrictive
Second, tools were weak
Finally, GM purchased only for the dealer home page
ROETL
Culture is the habit of being pleased with the best and knowing why.

23. Thank You.
Current Aviation Industry Development and Opportunities in Taiwan
Q&A