Market Analysis Summary
Truckbay will focus on four key markets for our online classified advertising solutions:
- Heavy Truck and Equipment Dealers
- Fleets and Trucking Companies
- Financial Institutions
- Individual Owners of Equipment
Our most important group of customers are Dealer Principals and Sales Managers within the Heavy Truck and Equipment organizations. In most cases, the Sales Manager is charged with distributing his substantial advertising budget among the most effective sources of lead generation. While they are open to new sources, for the most part, they are looking for immediate return on their investment. Truckbay will generate immediate leads and sales by leveraging eBay Motors’ massive marketplace and other multi-channel linked websites.
Fleets, trucking companies, financial institutions and the individual owners of equipment make up a substantial market in themselves. Utilizing our existing contacts and relationships within these organizations, Truckbay will offer a unique online service that will provide a less expensive and more efficient solution to advertising their trades, repossessions and aged equipment.
4.1 Market Segmentation
Truckbay will target markets with the highest volume of potential equipment listings. These target markets in North America include:
Mid-to-large sized truck dealerships
Mid-to-large sized heavy equipment dealerships
Fleets operating 5 or more vehicles
Trucking Companies operating 5 or more vehicles
|Heavy Truck and Equipment Dealers||1%||5,000||5,050||5,101||5,152||5,204||1.00%|
|Fleets and Trucking Companies||1%||84,000||84,840||85,688||86,545||87,410||1.00%|
|Individual Owners of Equipment||1%||62,000||62,620||63,246||63,878||64,517||1.00%|
4.2 Target Market Segment Strategy
By focusing our efforts on these specific markets, we will grow our inventory database quicker than trying to reach the entire market segment. While not forecasted in our financial plan, we intend to gain incremental growth from the individual owner operator market as they find our services at eBay Motors and from top placement on search engines.
4.3 Service Business Analysis
The often neglected heavy truck and equipment industry has relatively few organizations offering online services. While we anticipate that this will change, Truckbay is currently positioned to take advantage of being “first to market” with our unique classified listing service.
Typically, this conservative industry trails the more glamorous automotive industry by 3-5 years in adopting technology trends. These Dealers may no longer survive doing business the old fashion way. As they slowly embrace technology, Dealers have begun to allocate more and more of their advertising budget for online services. We are in our infancy, while eBay Motors has a proven track record. As of today, no organization has a similar service that targets the heavy truck and equipment business. Truckbay will fill that void and provide a valuable new service that produces immediate results. Wide-spread acceptance will become inevitable as long as we remain proactive.