Centurion Motor Exchange Business Plan — Go-to-Market Strategy
Lead generation, digital listings and the sales process behind converting enquiries into units.
Section 11 of 28
Go-to-Market Strategy
Jump to section
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Plan
- 20. Funding Requirement and Structure
- 21. Debt Serviceability
- 22. Investment Case and Valuation
- 23. Sensitivity and Scenario Analysis
- 24. KPIs and Management Dashboard
- 25. Conclusion
- A. Appendix A: Scenario Parameters
- B. Appendix B: Year-1 Monthly Projections
- C. Appendix C: Sources and Glossary
Winning supply matters as much as winning buyers
A used-car retailer cannot sell what it has not bought well. The go-to-market plan therefore has two engines: a sourcing engine that secures the right vehicles at the right cost, and a sales engine that converts online interest into financed sales.
Table 11.1: Sourcing strategy at maturity
|
Source |
Share of purchases |
Typical margin quality |
Approach |
|---|---|---|---|
|
Trade-ins from retail customers |
35% |
Good |
Written instant offers; trade-in bonus on assured stock |
|
Direct buy-ins from the public |
30% |
Best |
Online “we buy” form; buyer visits within 24 hours; payment on settlement |
|
Fleet and rental de-fleets |
20% |
Moderate |
Framework agreements with lessors; batch purchases of 5–15 units |
|
Auctions and dealer trade |
15% |
Lowest |
Gap-filling only; strict price ceilings from pricing tool |
A quantified funnel supports 60 sales a month at Site 1
Table 11.2: Monthly sales funnel at Site 1 maturity
|
Stage |
Monthly volume |
Conversion |
|---|---|---|
|
Active listings |
90 |
|
|
Online and phone leads |
820 |
9.1 leads per listing |
|
Qualified prospects (appointment or pre-approval) |
330 |
40% of leads |
|
Showroom visits and test drives |
190 |
58% of prospects |
|
Offers to purchase signed |
85 |
45% of visits |
|
Finance approved / cash confirmed |
66 |
78% of offers |
|
Vehicles delivered |
60 |
91% of approvals |
End-to-end, 7.3% of leads convert to a sale, in line with well-run independent dealers and deliberately below the conversion that fast lead response can achieve. Repeat and referral business is targeted at 15% of sales in FY29, rising to 25% by FY31, reducing the lead requirement over time.
Marketing, pricing and retention
Table 11.3: Commercial levers and quantified assumptions
|
Lever |
Plan |
Quantification |
|---|---|---|
|
Marketing budget |
Classifieds packages, paid social, search, forecourt signage |
R65,000 per site per month + R1,400 per sale; FY29 total R1.8m |
|
Customer acquisition cost |
Marketing ÷ retail units |
R2,641 per sale in FY29 (excluding sales commission) |
|
Customer lifetime value |
Gross profit per sale plus expected repeat purchase |
c. R45k gross profit (25% repeat within five years) |
|
Pricing policy |
Priced within 2–3% of the market median for comparable vehicles |
Re-price at day 30, 45 and 60; auction at day 90 |
|
Lead handling |
Dedicated CRM agent; 10-minute response target in trading hours |
Response time tracked weekly |
|
Digital |
Website with inspection reports, reservation deposit, WhatsApp sales |
Online-originated sales > 70% |
|
Cross-sell and upsell |
F&I needs analysis on every deal |
65% finance penetration; R3,800 product income per unit |
|
Retention |
Automated follow-ups; service reminders via partner workshops; trade-up offers |
Review rating ≥ 4.6; repeat and referral share 25% by FY31 |
|
Geographic expansion |
Site 2 in Midrand from FY30; further Gauteng corridors after FY32 |
Gated on Site 1 milestones |