Does Adding a New Dealer Help - Or Hurt - a Market?
Challenge
A division of a major automobile manufacturer was concerned about underperformance in a specific market. After traditional measures failed to improve sales, the company considered placing an additional dealer in the market. The existing dealers were concerned that this would reduce available sales for each current dealership.
Solution
Applying dealer-impact analysis, Urban Science consultants examined changes in the market in question and in similar markets where a new dealer had been added. We then made our recommendations and the manufacturer acted on them.
Results
One year after implementing our recommendations, the manufacturer discovered that when the new dealer was established in the market, the division's overall sales increased and the existing dealers' sales increased six percent.
