WRITTEN ON April 23rd, 2009 BY edward AND STORED IN Case Studies, Leaflet Distribution

Tags: Car industry, Honda, Leaflet Distribution

On what was an otherwise gloomy Budget Day on Thursday, there was one announcement that caught my eye - the car scrappage scheme.

Under the terms of this new initiative, motorists will be handed a £2,000 discount on new cars if they trade in a  car that’s more than a decade old.

There are of course fuel and environmental issues at play here, as newer cars are generally more efficient and green than their predecessors.

But the scrappage scheme should also help to give the car industry a much-needed shot in the arm at a time when new car sales are down by 30% year on year. After all, a £2,000 discount on an £8,000 car represents a saving of 25% - a sizeable amount - and the recent introduction of a similar scheme in Germany led to 30% rise in car sales.

All this has got me thinking. Dealers can afford themselves a bit more optimism about the way the 2009-10 sales year might pan out. Although nobody is suggesting that this is some kind of magic solution, it should at least inject some hope into forecourts up and down Britain.

And of course this presents a fantastic marketing opportunity for dealers. As the scheme is due to last until March 2010, the market that could be interested in this initiative is potentially huge.

The automotive industry as a whole is already well-versed in the benefits of using a leaflet distribution to target potential buyers.

The medium is perfect for two main reasons - firstly, for the simple fact that at least one person in every household tends to have a car, and secondly because the sophisticated targeting methods available today allow dealers an unprecedented level of accuracy. Our in-house SMART tool allows us to identify clusters of likely customers, and create precise delivery rounds to efficiently cover those areas. We can even use GPS tracking technology during the distribution, to provide a level of  accountability that was previously unheard of within the industry.

Like me, many people are likely to have had their ears pricked by Thursday’s announcement. Many may now be reconsidering a decision to stick with their old banger.

It’s up to the dealers to capitalise on this surprise opportunity, and they could do a lot worse than starting with a leaflet distribution.

For a specific case study of what we can do within the automotive industry, click here.