Four years in the five- year contract, with the General Motors to be exclusive website seller to its U.S. network of more than 4,000 dealers, CDK Digital faced a crucial contract renewal at the end of 2012. The case follows Melissa McCann, manager of strategic advertising, and Chris Reed, CMO, as they prepared for a critical assembly in the month of July 2011: a presentation was given to the customer relationship management (CRM) subcommittee of the Chevrolet dealer council.
GM found the renewal of CDK Digital's exclusive contract as a collaborative decision between dealers and GM although GM dealers, like all auto dealers in the United States, were independent franchisees. Based on Ed Vogt, GM's executive responsible for the renewal, if the dealer councils said no, the contract would not be renewed. This case challenges pupils to use CDK's big data and analytics capabilities to deal with the inherent clash between dealers and manufacturers: when advertising to potential customers, manufacturers wanted consistency across dealer websites to optimize sales of essential target brands, while dealers want flexibility to sell off what they had in stock.
PUBLICATION DATE: October 22, 2014 PRODUCT #: KEL894-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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