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Sanger-Fisker Case

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MKT 412A-CE | Sanger-Fisker Case | Philip Carr |
10/28/2014
10/28/2014

Major Issue or Decision:
The two parties up for question in this case study are the Sanger and Fisker Automotive Companies. Sanger is a privately owned company that currently maintains eight highly reputable dealerships in the Florida and Georgia area, most of which fall into the luxury car category. The Sanger Automotive Company has been able to position themselves as a well-known and trusted car dealer in the area that began with its first Cadillac dealership in 1950. Currently the organizations President is Robert Sanger, son of the founder, whose main goal is to maintain his company’s reputation for delivering exceptional customer service when using any of their locations. So it’s no surprise that when Fisker Automotive, the new leader in the luxury electric car market, shows interest in making a franchise agreement with Sanger the companies presidents is uncertain about how to proceed. Fisker Automotive is a U.S. based electric car company that was recently founded in 2007 by ambitious executive design director and CEO Henrik Fisker, who is well known for holding a variety of high level design positions. The companies co-founder is Bernhard “Barry” Koehler who holds the position of COO at Fisker, having earned his expertise from his prior duties at Ford Motor Company’s Global Advanced Design Studio as the director of Business and Operations. The duo has proven to produce success as they have answered the difficult question of whether there is a place for luxury electric cars in the auto industry, for which electric (HEV, BEV, and PHEV) only represents about 2.6 percent of total passenger car sales in the U.S. for 2011, with predictions to rise up to 7 percent by 2015. Also the pair has managed to raise more than $600 million in private equity and financing for funding of the

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...Sanger Automo Sanger Automotive Companies Case | The Fisker Franchise Decision | Leigh Gerke | Introduction Luxury car retailer, Sanger Automotive is considering entering into a franchise agreement with Fisker Automotive to sell hybrid electric vehicles. The market for electric cars is increasing and an early entry into the electric car market would help to establish themselves in the market. Issue /Problem Definition Sanger needs to determine if it would be cost effective to enter into an exclusive franchise agreement with Fisker automotive due to the market demographic, newness of product, and overhead involved. Analysis Brand awareness Market size and location – two markets in Florida have been identified as the up and coming target markets- Lee and Collier County. The average incomes for people in the Naples/Marco Island areas is $81,250 as opposed to the average US income of $49,445. Here there is an older population; whereas the Fort Meyers/Cape Coral area has a lower median average income around $50,120 but the total population is six times larger and the age demographic here is much younger. Some Key Information: | Total Households | Incomes over 100K | Estimated Sales Volume per Year | Collier County | 133,640 | 20.20% | 16.2% | Lee county | 270,485 | 18.30% | 29.7% | 2.6% of total new passenger car sales in 2011, 7% in 2015 Estimate annual growth rate: 28.09% Fisker is already established in electric car market from their initial sale...

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