How Car Dealerships Can Effectively Gain Market Share in 2024: A Guide for Struggling OEMs

The automotive industry is in a state of flux in 2024, with market dynamics shifting rapidly due to evolving consumer preferences, economic pressures, and the ongoing transition to electric vehicles (EVs). As general managers, sales managers, and marketers, you're facing the challenge of maintaining and growing your market share in an increasingly competitive landscape. For OEMs like GM, Hyundai-Kia, and Stellantis, which have shown signs of struggle this year, the pressure is even more intense.

In this article, we'll explore strategies that car dealerships can implement to gain market share, with a particular focus on supporting OEMs that need a boost. Whether you're grappling with declining sales, increased competition, or a need to better connect with today's car buyers, these insights will help you craft a winning strategy.

1. Understand and Leverage Your Data

Data is your most powerful tool in the fight to gain market share. For dealerships, this means diving deep into your customer data, sales trends, and market analytics to understand where your opportunities lie.

• Identify Key Segments: Start by analyzing which segments of your customer base are growing and which are shrinking. Are you losing sales to competitors in the SUV market? Are your sedan models underperforming? Understanding these trends allows you to focus your marketing efforts where they'll have the most impact.
• Personalized Marketing: Use your CRM data to create targeted, personalized marketing campaigns. For instance, if your data shows that younger buyers are gravitating towards EVs, tailor your messaging to highlight the features and benefits of your OEM’s electric models.

2. Focus on Product Differentiation

One of the most effective ways to gain market share is by clearly differentiating your products from the competition. For struggling OEMs, this may require a renewed focus on what makes your vehicles unique.

• Highlight Unique Features: Whether it's advanced safety technology, superior fuel efficiency, or innovative design, make sure your marketing highlights the features that set your vehicles apart. For example, if your OEM offers best-in-class warranty or cutting-edge infotainment systems, these should be front and center in your messaging.
• Leverage OEM Strengths: Even OEMs that are struggling overall may have strong individual products. Identify these vehicles and make them the cornerstone of your sales strategy. For instance, if a particular model has received awards or positive reviews, use that credibility to drive sales.

3. Enhance the Customer Experience

In 2024, the customer experience is more critical than ever. Car buyers have high expectations, and dealerships that can exceed these expectations will be better positioned to capture market share.

• Digital First Approach: Ensure your website is optimized for mobile and provides a seamless user experience. Incorporate tools like virtual showrooms, online financing applications, and AI-driven chatbots to assist customers 24/7.
• In-Dealership Experience: Invest in training your sales staff to provide exceptional service. Consider redesigning your dealership space to be more welcoming and customer-friendly, with amenities like comfortable waiting areas, Wi-Fi, and refreshments.
• After-Sales Support: Strengthen your after-sales service with follow-up communications, maintenance reminders, and loyalty programs. Happy customers are more likely to return for their next purchase and recommend your dealership to others.

4. Adopt a Multi-Channel Marketing Strategy

A single-channel approach to marketing is no longer sufficient in today’s automotive market. To effectively gain market share, especially for struggling OEMs, you need to be present wherever your customers are.

• OTT and Digital Advertising: Over-the-Top (OTT) advertising is an increasingly powerful tool for reaching targeted audiences. With the precision targeting capabilities of OTT, you can show ads to potential customers who are most likely to be interested in your vehicles, based on their viewing habits, location, and demographics.
• Social Media Marketing: Platforms like Facebook, Instagram, and TikTok allow for highly targeted advertising. Use these platforms to run campaigns that engage potential buyers with video content, customer testimonials, and interactive polls.
• Search Engine Marketing (SEM): Ensure your dealership appears at the top of search results when potential customers are searching for vehicles online. This includes investing in Google Ads and optimizing your website for SEO to capture organic traffic.

5. Engage in Community and Influencer Marketing

Local and influencer marketing can play a significant role in boosting your dealership’s market share, particularly for OEMs looking to regain traction.

• Community Involvement: Sponsor local events, sports teams, or charities to increase your visibility in the community. This not only builds brand recognition but also fosters goodwill among potential customers.
• Influencer Partnerships: Collaborate with local influencers or automotive enthusiasts who can authentically promote your vehicles to their followers. This can be particularly effective in reaching younger, tech-savvy buyers who may not respond as well to traditional advertising.

6. Innovate with Product Launches and Promotions

Struggling OEMs can benefit from innovative product launches and strategic promotions that create excitement and urgency among buyers.

• Exclusive Offers: Introduce limited-time offers, such as special financing rates, trade-in bonuses, or free maintenance packages, to incentivize immediate purchases.
• Creative Launch Events: Host virtual or in-person launch events for new models, complete with test drives, live demonstrations, and special guest appearances. Use these events to generate buzz and showcase your OEM’s latest innovations.

7. Monitor and Adapt to Market Trends

The automotive market is continuously evolving, and your dealership needs to stay ahead of the curve to maintain and grow its market share.

• Track Competitor Movements: Keep an eye on what your competitors are doing. Are they launching new models, running aggressive promotions, or changing their pricing strategies? Use this information to adjust your strategies accordingly.
• Respond to Consumer Behavior: Be agile in responding to changes in consumer behavior. For example, if you notice a shift towards eco-friendly vehicles, increase your promotion of hybrid or electric models to capture this growing market.

Gaining market share in 2024, especially for OEMs that are struggling, requires a strategic, multi-faceted approach. By leveraging data, differentiating your products, enhancing the customer experience, and adopting a multi-channel marketing strategy, your dealership can position itself for success. Remember, the key is to stay agile and responsive to market changes while continuously focusing on what makes your vehicles unique.

If you’re looking to boost your dealership’s market share with a customized marketing plan tailored to your specific needs, schedule a no-obligation consultation with New Road Advertising today. Let us help you navigate the challenges of 2024 and position your dealership for growth.