Multi-brand selling in the automotive market : the Santogal case

• Autor(a) principal: Pessanha, José Manuel Barreiros da Silva
• Data de Publicação: 2011
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/7773

At the start of the last decade, the European automotive industry faced a market showing several flaws in its functioning. It was excessively concentrated; the six major manufacturers (Volkswagen, Peugeot/Citroën, Renault, General Motors, Ford e Fiat) held 75% of market share. This favourable position led manufacturers to establish agreements and contracts both with suppliers and retailers aiming at protecting their interests and entailing a reduction of competition in the market. In light of this situation, the European Commission intervened and adopted Regulation n° 1400/2002, which prohibits any agreements affecting competition and promotes new retailing possibilities. This new context led to huge changes both for manufacturers, on one side, and importers and retailers on the other. This study aims at contributing to widen knowledge on the subject through the analysis of the Santogal case. Starting as an importer, the company has always been linked to the automotive sector for more than 60 years. The changes the market has undergone along the years led Santogal to develop new strategies and business models in order to attain its objectives. This study focuses in particular on Santogal's "multi-brand" project developed in the last few years and which has revolutionized its way of selling cars and created the conditions to exploit to the full the potential of its structure. The main objective of the present study is to challenge academics, manufacturers, importers and retailers to develop new sales models to face the change in the competition conditions observed in the European market. The work carried in the context of the present study allows to conclude that, although for the customer price is the main differentiation factor, new sales models widening the offer and aiming at facilitating comparisons and counselling the client during the decision making process represent a competitive advantage for companies which adopt them.