MINI CASE STUDY: Cherry Lane Vintage Cars Copreneurs Ed and Sally recently opene
ID: 363349 • Letter: M
Question
MINI CASE STUDY: Cherry Lane Vintage Cars Copreneurs Ed and Sally recently opened a vintage used ear lot called "Cherry Lane". They sell antique and collectible cars for the owners t a fee of 30 percent of the selling price. The price is further reduced by 10 percent if a particular car is not sold within the tirst 30 days. One of their irst customers convinced Sally that this 10% reduction was the only fair thing to do and in an effort to provide something for the cost conscious buyer." Sally provided what she thought was excellent customer service and implemented the idea. Ed and Sally feel Cherry Lane has an ideal location. It is located next to the city's major football stadium, alongside the highway and in the center of all the other car dealerships. Although Cherry Lane has significant foot traffic, most people never make offers to buy a car In an etfort to increase sales, Ed and Sally are working on a new marketing strategy that they believe should be quite different from the approach they had been using over the last few months. whati cherr lane's Valve prgositan D. tut rewly have onc ? v Current s cn fe blem ne enunte stes 1Explanation / Answer
a.) They value proposition is selling the unique kind of cars i.e vintage cars that too at an extra 10% off, if it is not sold in the first 30 days
b.) Their competitive advantage is the new kind of market that they have created , and presence of less number of competitors and the uniqueness in their product and services
c.) Current problem that they are facing is that inspite of product getting popular, and people coming to see it , still the conversion rate into customers is not satisfactory
d.) Marketing stratgey that they should follow is to first find out the right target segment, then identify the popular communication channels among that group and then market or advertise their products, rather than showing it to everyone
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