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Case Study: Auto Part Supplier Facebook Ads Strategy

Case Study: Auto Part Supplier Facebook Ads Strategy

In this case study, we will look at how an automobile spare part supplier uses Facebook Ads to increase their sales. We will start with the general market trend and behavior of the industry, the company background, and the strategy implementation of the Facebook Ads strategy for the company.

 

Market Outlook – Automobile Spare Parts

According to the study conducted by McKinsey in 2017, the overall automotive aftermarket has shown healthy growth and profitability. The growth is expected to increase steadily till 2030, with a growth rate of 3% per annum. Asia will also be leading in the growth fueled mainly by the increasing demand from China.

Moreover, Fortune Business Inisigh is also reporting a forecast of USD 288.20 Billion by 2026 for the aftermarket spare part industry globally in the Q2 of 2020.

Consumers are also reportedly shifted toward e-commerce buying, and 57% of consumers would research detailed installation instructions, according to the research. Research also shows the fast-growing trend of DIY among consumers with the help of information from the web and ease of access to these aftermarket spare parts from e-commerce.

 

Company Background

The automobile spare part company is supplying car parts for a premium car, such as Porshe, BMW, Mercedes, Lamborghini, Ferrari, Land Rover, and others. The business has offered a variety of product ranges, including the OEM auto parts with their in-house brand, aftermarket parts, and authentic parts directly sourced from the manufacturer.

Overall, there are more than 10,000 products available in their catalog ready to be sold to their customer. Most were ready-stock in their warehouse, and some need to be ordered (or make-to-order) based on the sales received and required a lead time of at least two weeks.

The primary target market is a workshop that offers maintenance and repair services. By understanding the trend of the market, the company wants to serve a broader market, especially the B2C market, that would like to DIY for their automobile repair or maintenance.

On the other hand, the business also observed a trend where the consumer would prefer to purchase the spare part by themselves at a lower price. And then bring them to the workshop and paying only the service fees to the workshop.

There seems to be a ‘distrust’ between consumers and the workshop, with the perception where the workshop might give them non-authentic, low-quality, and over-charged spare parts for the service.

With this in mind, they have actively tapped into the digital marketing realm since 2014 with a website and Facebook page.

 

Push Marketing – Facebook Ads Strategy

Objective: To push their product proactively to those who’re interested on social media (Facebook) through ads.

Over the year, the business has got some of their business from their website & Facebook page and slowly seeing the return for the investment. However, it’s moving too slow. They are also experiencing slow down for their offline channels with the increased competition in the market.

Hence, they would like to take a proactive stand to push their product out there to the market. With the existing digital assets to be utilized, FiveDot has proposed Facebook Ads as the push marketing strategy. We have been focusing on the in-house branded product to maximize the ROI.

 

Lead Generation & Messenger Ads

We have implemented several strategies to test the market potential, targeting Klang Valley and major cities. This Facebook Ads is the first ads ever run by the business with no previous data available from the company. Hence, we have implemented extensive testing on the target market and ads set.

 

Facebook Ads Lead Generation Automobile

Lead Generation Facebook Ads to collect phone number & other details

 

Facebook Ads Messaging Lead Automobile

Messaging (Lead) Facebook Ads to collect phone number & other details

 

After several optimization and tweaks throughout the month, the team acquires a satisfying closing rate from the lead received. The team is satisfied with the cost-per-lead, and the ROI is profitable for the business. We then expand the location targeting to other locations to further test the potential of such a market (mainly smaller cities around Malaysia).

 

Facebook Ads Messaging Lead Testing Automobile

Testing of the Facebook Ads for smaller cities around Malaysia

 

 

Customer Journey Mapping

Objective: To understand the buyer behaviour and improve the process within each stage of the touchpoints in order to offer better customer experience.

By working closely with the company and the team, we have to gather insightful data about buyer behavior and mapped out the journey. This customer journey mapping is further analyzed by the marketing team to improve the overall customer experience in the process of buying online (from Facebook Ads).

Here is a snippet of the customer journey after the submission of the lead form / provided the contact details in Messenger (there are more to go). In each stage, you will be expecting drop-off.

 

Customer-Journey-Auto-Parts-Facebook-Ads

The snippets of customer journey mapping after the submission of lead on Facebook Ads

 

Some customers just want to know more without having the intention to buy (the curiosity type). Some were having their suppliers and interested to know what can the business offer better. At the same time, some got a better deal by comparing it with other available offerings in the market.

Those that are interested often negotiate with the salesperson, especially among those workshops or B2B buyers who are more familiar with the price and available service offer. Of course, these groups might require more work and effort to close, but they are also more likely to have repeat purchases after the first purchase.

 

Conclusion

To date, the business has implemented the always-on ads strategy to run ads to acquire more leads for the business continuously. We’re glad that the team has worked closely with us, allowing us to access their data, understanding their buyer behavior. Hence will enable us to gain insightful feedback from the strategy implemented and further tweak to improve the performance over time.

For businesses that have a similar business model should explore Facebook Ads as one of the proactive push marketing strategies. With the right target and an established sales process, your business can thrive with Facebook Ads too.

Case Study: Cordial Beverage E-Marketplace Strategy

Case Study: Cordial Beverage E-Marketplace Strategy

This case study looks into the e-marketplace onboarding strategy of a cordial beverage (non-alcoholic concentrated syrup) company working with FiveDot during the post-MCO period. We will be looking into the general market trend of the industry, the company background, and strategy implementation.

 

Market Outlook – Cordial Beverage

According to a report from 2019, the cordial drinks market saw an increased demand over the years with the increased preference over convenient and non-alcoholic & non-carbonated beverages. Along with the demand for more natural ingredients, such as fruits & vegetable extract, the market has experienced some innovation to compete effectively.

We have also seen the players market their product with additional health benefits and nutrition, such as sugar-free, no preservatives added, Vitamin C, with extra fibers, etc. in Malaysia. Millennials are also expecting more variety of flavors in the cordial beverages have further pushed players to innovate to capture the market and compete effectively with their non-direct competitors (soft drinks, yogurt, and other RTD drink).

According to Ken Research in 2017, they have reported increase competition on social media platforms among the beverage companies in Malaysia. This strategy is meant to get their brand closer to the consumer, along with the increasing active users on major social media platforms in Malaysia over the year.

 

Company Background

The cordial beverage company has been in the Malaysian market since the 1970s, offering a variety of cordial beverages. They manufacture and supply their product to major supermarkets and restaurants/cafes. Involves mainly B2B transactions and doesn’t tap into the B2C market.

As the pandemic hit hard globally since the Q2 of 2020, the company has experienced dropped in their sales. Consumers no longer spend time on their favorite restaurant, and spending has been reduced on their groceries. Entering Q3 of 2020, the company has taken its step to enter into the consumer market through e-marketplace strategy (Lazada & Shopee).

 

Establishing E-Marketplaces – Lazada & Shopee

Objective: To establish the sales channel on Lazada & Shopee in order to reach the consumer market easily in Malaysia & integrate with their current website and marketing strategy.

After the initial discussion, we have worked within a limited budget and timeframe to quickly establish the e-marketplaces for the cordial beverage company on Shopee & Lazada. We were getting their product up to the platform with product image design that fits the current market trend.

We also connect the store with a single click from their existing website, letting smaller B2B customers (e.g., small restaurant) buy directly from the e-marketplaces within going through the middle person (often required higher MOQ) or buying from the supermarket.

The project also worked around their existing offline marketing strategy, such as gifts and discounts for buying in bulk (they serve B2B all this time). In less than 1-month from the initial discussion, the project has been completed and ready to serve the market.

In less than a month, the company has gained more than RM300+ sales (without any spending on ads to push the product).

Shopee Sales Jul-Aug-Cordial Beverage

They are acquiring RM300+ in less than one month without any ads spending or ‘push’ marketing strategy.

 

Conclusion

With the already established brand name, the company can quickly kick-start its sales through these platforms without additional spending. Of course, we should not disregard their quality product and branding activities that have been invested before this.

Right now, their B2B has another option to buy directly from them on Lazada & Shopee and also serving to the broader consumer market. With the help of technology and the platform readily in the market, businesses should take advantage of the trend and expand their sales online channel.

Case Study: Health & Beauty Digital Marketing Strategy

Case Study: Health & Beauty Digital Marketing Strategy

This case studies look into the project that FiveDot has worked on with a beauty & personal care company. Before diving into the digital marketing strategy implemented, we will look into the overall market outlook of beauty & personal care products.

 

Market Outlook – Beauty & Personal Care

Not long ago, there is a clear distinction between premium and standard beauty & personal care products in the market. On the higher end, you will have SK-II and CLINIQUE. At the same time, those lower-end products are seen on the display rack on your favorite hypermarket (Tesco, Giant, AEON, etc.).

As we enter into the 2010s, we then see lots of smaller brands started to take over the market, mainly brands from Korea, Taiwan, Japan, and others. The introduction of these brands blurred the line of premium vs. non-premium. They offer right quality products with a strong brand, but yet at an affordable price.

Fueled by the rising middle-class in the South East Asia (SEA) market, these beauty & personal brands gain increasing market share gradually. Today, there is no clear line among the premium and non-premium brands in the market. Innisfree can be quite a premium brand (good quality, strong brand presence), and yet their pricing remained affordable among the middle-class.

Earlier this year, the beauty & personal care market is expecting continuous growth at a CAGR of 5.81% globally during the forecast period 2019-2026. But it was then negatively impacted by the COVID-19 entering the third month of 2020.

Experts see a prolonged effect on the pandemic toward the market, where 1/3 of the market is expected to cut spending on beauty & personal care products. However, there is an evident surge for personal cleanliness and hygiene products as a result of the pandemic.

We also observed a shift among major brands to address this market trend. Vaseline, a brand of Uniliver brand family, is adding anti-bacterial products in their line of lotion for the first time in history. It’s not common to see a combination of lotion and germs-killing products in the market. But the strategy made is brilliant and perfectly capturing the market trend, serving what the market needs the most.

 

Company Background

With the idea of offering superb products without charging a sky-high price, the company was formed to serve the rising middle class in the local market. They have been offering outstanding beauty & personal care products that are on par with major brands in the market— supported by their vital R&D facilities and teams, along with their extensive experience in the market.

Before the engagement with FiveDot, the company has tried to implement digital marketing strategies but failed to do so without the proper expertise in the team. Hence, all project has been called to a halt and doesn’t have any proper digital marketing channels or strategies.

With its mission to offer value-for-money beauty & personal care products, the company that relies solely on offline marketing is taking its steps in the digital market starting in late 2019. FiveDot has been appointed as the digital marketing partner to plan, develop, and execute the company’s digital marketing project.

 

Digital Presence Strategy – Building the Foundation

Objective: To establish multi-channel digital presences and offering a consistent brand experience to the customer by building a website, setting up Facebook page, and Google My Business, and other business listing on the web.

Just like everything in life, we are working on the digital marketing project start by building the foundation of the digital marketing of the company. The essential digital channels and assets on the web must be built first.

At this stage, the primary objective is to establish multi-channel digital presences and offering a consistent brand experience to the customers on the web. We start by building their website, social media, Google My Business, and other digital channels for the company gradually.

Throughout this process, branding elements were set & established, from revamping of the logo, resetting on the brand strategy, documenting the mission, and other branding elements to make sure that the brand is aligned across all platforms, either offline or online.

These activities are conducted to make sure that we can offer consistent brand experience across all marketing channels, and all the branding elements are coordinated.

Now, we have all the digital channels set up and ready to get their products online & set up their online sales channels.

 

Website Session Overtime of Beauty & Personal Care

Website Session Overtime of Beauty & Personal Care Website

 

Establishing Sales Channels – E-Marketplaces

Objectives: To connect & establish online sales channels by adopting the e-marketplaces (Lazada & Shopee).

In the second stage of the project, products were published on the website. However, we did not turn the website into an e-commerce website. Not transactional activities can be performed on the website.

This startegy implementation was a result of the planning and the discussion of sales channels, where the team has agreed to unified & centralized the sales channels on the e-marketplaces. Button was added on each of the products on the website, to lead users to the exact product page on the Lazada.

Hence, Lazada & Shopee store was then set up as the primary sales channels of the company. More than 60 products were published and ready to be sold on both platforms. At this point, the e-marketplace’s sales channels have been established and prepared to start the push marketing to attract customers to their store.

 

Gaining Trafic on E-Marketplaces – Shopee Ads

Objectives: To kick-start the sales on Shopee & collect GMV & reviews for the star product sold on the platform.

With a limited budget assigned to the advertising strategy, the team has worked on a focused ads strategy to be run solely on the Shopee platform. The primary objective is to kick-start the sales on the Shopee to collect GMV & reviews on the platform.

Having GMV & reviews on your products will help to establish confidence among the potential customer toward your products & services. At the same time, it helps to get higher ranking on Shopee as the algorithm will have a strong preference toward strong GMV and good reviews products.

We have started the ads with only five selected products on Shopee; the total investment is RM500/month.

The sales on Shopee have spiked up during Feb 2020 with the help of ads as well as the market response toward the pandemic where the nation is having an increased concern toward personal hygiene and increased purchasing trend of disinfectant products.

 

Shopee Sales Feb

Sales start picking up quickly in Feb 2020 on Shopee.

 

Impact of COVID-19 on Shopee & Lazada

Entering March 2020, Malaysia has announced its first case of COVID-19 patients, and the country is implementing the movement control order (MCO) at a later date. During this period, the sales of the company have skyrocket overnight, contributed mainly by their hand sanitizer.

The sales were peaked at RM25,000 on Shopee along in March 2020, and the company decided to discontinue the product due to short of supplies where the production cannot keep up with the orders.

 

Shopee Sales Peak

Shopee Sales Peak at RM25,000 during March 2020.

 

Post MCO Performance on Shopee

The data below shows the organic sales trend (no ads) in July 2020 (after the MCO, entering Recovery-MCO in Malaysia). The sales have been slowed down even the hand sanitizer, and other disinfectant products have been restocked on the platform. The trend has entered into a stable mode.

 

Post MCO Sales on Shopee

Sales data on Shopee after MCO (July 2020)

 

Conclusion

We have seen how businesses have benefited by going online while the pandemic hit hard on our country. It’s a safe-heaven for companies where the offline business is no longer feasible; the online platforms still stand firm to help them to acquire sales. It has reduced the impact of the pandemic toward the company by having an online presence, and sales channels established right before the black swan event.

Although the company didn’t stock up enough to keep up with the demand of the market, and have been forced to discontinue the supply when the demand peaked. But it has acquired sales several times than what they would able to gain selling offline.

Overall, they have a fruitful gain from their digital marketing strategy implementation and continue to expand and improve their online presence.

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