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Case Studies

Rogz: Paul Fuller And Irene Raubenheimer

Two Cape Town entrepreneurs take the export market by storm with a hip brand of pet accessories.

Juliet Pitman



Paul Fuller And Irene Raubenheimer of Rogz

Company background

Paul Fuller and Irené Raubenheimer started Rogz in atwo-bedroomed apartment in Blouberg, Cape Town. Although the business currently focusesexclusively on the pet market, Rogz’ first products were surf-style sunglasscords and watch straps (both Raubenheimer and Fuller are keen outdoorsportsmen). Six years into the business, the pair identified the enormousgrowth potential in the pet industry and, drawing on their product developmentand manufacturing knowledge, started developing fun, funky accessories for petsunder the cool, hip lifestyle brand of Rogz. Beltz (collars, leashes andharnesses) were the first Rogz pet products to explode onto the pet market. Onthe back of its attendance at international trade fairs, the Rogz brand wasquickly snapped up by the export market, where it remains a pet industryleader.

Consider the following statistics for a moment: in 2006Americans spent R270 billion on their pets. This figure is expected to surpassR309 billion by 2011. When it comes to making money, pets are big business.Gone are the days when pet owners were content to buy a simple leather collaror leash from their local hardware. In the past ten years, Rover has becomesomething of a fashionista, and local Cape Town-based company, Rogz, has beenat the forefront of this trend on a global scale, exporting to 60 countries andlast year winning the Pets International magazine’s 2006 Global Pets ForumAward. The export success story of this small private company,which managed to break into the fiercely competitive European and United Statesmarkets within a couple of years of developing the Rogz pet range, is worthinvestigating. Although their product is undoubtedly unique in many ways, bothRaubenheimer and Fuller believe that it’s their marketing and brand-buildingcapability that has really been the key to their success. “We speak to a lot ofpotential entrepreneurs who are waiting for a magic, unique product idea andmany of them wait all their lives. It’s very difficult to invent another roundwheel,” says Raubenheimer, continuing, “The product idea is 5%. The other 95%is execution. It’s easier to be unique in marketing. We were not the first tomake pets products but we added a personality to the product line and this iswhat was important. The customer buys into the lifestyle brand element of theproduct and for this reason, marketing has been very important to us.” Fuller,who manages the marketing and branding side of the business, concurs: “Rogz isabout more than just a dog collar. It’s a cool, hip brand for pets and one thatinspires our customers to do fun, crazy, outdoor, exciting things with theirlives and their pets.”

Marketing internationally

With such enormous growth potential in the United Statesand European markets, it made sense for Fuller and Raubenheimer to target thesemarkets for exporting. “The major markets for our products were obviously inEurope and the USso those are the two areas we concentrated on,” says Fuller. But even with auniquely branded product, getting into international markets is by no means awalk in the park. “We are a small private company so we have adopted aguerrilla-style marketing tactic – we literally just go for it with everythingwe have,” he continues.

Attendance at international trade fairs was a vital step ingetting Rogz recognised in the international market. At their first trade fairin Italyin 2001, the company received an astonishing 36 distribution applications from24 countries. But Fuller points out to would-be exporters that the competitionat these trade fairs is intense. “It doesn’t help to go to them with me-tooproducts. You have to have something different that will catch people’sattention,” he says. In this regard, it’s vital to familiarise yourself withwhat the market is currently offering and while Fuller believes that you can dosome of this research online, once you have chosen the countries that you aregoing to target, you have to visit them to get a feel for the market andpotential for your product to find a niche.While Rogz got into the European market almost immediately,cracking the USmarket took a little longer. Fuller lists distance from Cape Town and intense competition as hurdles.“There are so many products on offer and the US consumer is so spoilt with thenumber of options they have that it’s very difficult to break into the market.There is also a very established distribution network in the US and to getpeople to change their distribution or product lines is very difficult,” hesays. The sheer size of the country and the logistics that come with it arealso things that many people are not used to dealing with. “People don’trealise it but each state is like a country so it’s like dealing with 50different countries. I do believe that people need to tackle the US piece bypiece – start on the East or West coast and bite off a small piece to work on.We made the mistake of trying to cover the whole USA and do distribution placementin the entire country, which is very difficult.” Difficult or not, Rogz hasfound success and although it’s still early days, the company is experiencingimmense growth in the US.

Funding the dream

The pair ploughed all their profits back into the businessand this helped it to grow. “We were very naive about banks, believing them tobe ‘financial partners’ but they just laughed at us every time we took an ideato them and asked for finance.” But, as many entrepreneurs discover, wherethere’s a will, there’s also a financial way and Raubenheimer and Fuller foundtheir particular solution in factoring their debt for a while. In addition,they drove a hard bargain with customers. “We insisted on pre-payment andalthough that was a very hard negotiation, we found that in every country therewas at least one player who would take us on under those terms, because theproduct was unique,” he says, adding, “We’ve stuck to our guns on that one andalthough I am not sure that everyone can get away with it, it has worked forus. It has allowed us to self-fund. Now, years down the line, we can source anywhere we want toin the world. We can draw up prototypes and make moulds and some of ourproducts can remain in production for a long time. But when they eventually dohit the market, they will be unlike anything else and serve to draw attentionto the Rogz brand,” says Raubenheimer. He adds that along the way, Rogz hassourced machinery and had some machines specifically designed, and productionhas become more sophisticated over time. But he’s quick to point out that it’snot the company’s aim to become manufacturing specialists: “Strategically wewant to develop the brand and the product so if, for example, we develop aproduct that uses rubber components, we don’t start making that componentourselves. We’ll source it from elsewhere.” It is only lately that Rogz has started patenting a few ofits products, but Raubenheimer believes there is a great deal of misconceptionamong lay people about the value of patenting. “People believe that if theyhave a one hit product and a patent for it, their lives are made,” he says. Butthis is not necessarily the case. “As a start-up entrepreneur I wouldn’t makepatenting a priority. It’s expensive, not fool-proof and difficult to police.”

The brand is key

For Rogz, the brand is key and Fuller and Raubenheimer haveconcentrated their efforts on protecting this. Trademarking laws andregulations differ from country to country and the process involves procuringthe services of an intellectual property lawyer. “It’s easier to trademark aname globally than it is to patent a product,” says Raubenheimer, “And thebottom line is that it is much easier to protect in court. If someone isknocking off your name its far clearer than if someone is knocking off yourproduct. They can make minor adjustments to your product and then tie you up incostly legal debates about whether their product is truly the same as yours.”

Looking to the future, the Rogz team has big plans. “We havethree product categories – collars & leashes, bedding and toys and our goalis to roll out more categories,” says Raubenheimer. But he’s ever mindful ofmaintaining a balance between being specialists and offering diversity. “In thecategories where we are specialists, we need to ensure that we remain so. Wecan’t focus so much on breaking into new areas that we lose our leadership positionin areas we already dominate.” In terms of markets, the future looks brighterthan ever. Fuller says: “Our focus will remain on Europe and the USA in the short term but with an eventualexpansion into Asia as that market grows.” Andgrow it certainly promises to do. Already, the pet industry in Japan alone isworth R75 billion. You can be sure that it won’t be long before Rogz hasgrabbed its slice of this pet industry pie as well.

Rogz timeline

  • 1995 Rogz Pty Ltd set up by Paul Fuller and Irené Raubenheimer.Sunglass cords main product line and the pair operated from an apartment in Cape Town
  • 1996 Moved into first premises of 100 m2
  • 1998/1999 Approached by big US corporations to sellprivate label products in very high volumes. Period of intense operation withstaff going from 30 to 150
  • 2000/2001 Started developing pet product line, boughtnecessary machines and started importing some materials
  • 2001 Beltz range, first pets product line (collars,leashes and harnesses) developed
  • 2001 Attended first trade fair in Italy
  • 2001 On the back of interest at the trade fair, Rogzlisted in Harzewoude, Holland.
  • 2004 Rogz is listed in USA
  • 2006 Rogz received award from Pets International as thecompany having the largest effect on the pet industry during that year
  • 2006 Opened a hub in St Louis,Missouri to service the growing USAmarket
  • 2006 Opened a hub in the Netherlandsto facilitate sales to smaller customers in Europe
  • 2007 Moved into a second factory in Montague Gardens, bringingtotal number of factories to two and the space to over 2 500 m2

Developing partnerships 

Rogz now exports to 60 different countries, a footprint thatdemands excellent relationships with distributors. As an exporter, choosing whoyou do business with in foreign countries is crucial. “We have always had thephilosophy of having very strong partners who have a localised knowledge ineach country and we have chosen to do exclusive sales with them. This meansthat we have been able to grow the partners we have in these countries over thelast six years and that loyalty is returned to us.”  Developing such loyalty is important;distributors are foot-soldiers for your brand, championing it in their localmarket. But exporting is not all about what happens in far-flung countries. Thework that’s done at home in many ways forms the heartbeat of a successfulexport operation. In particular, managing cash flow and getting manufacturingand product development right can secure ongoing success. Even though Rogzcurrently occupies two factories, like most exporters they started small andwith only a little cash that came out of the partners’ personal funds. 

Raubenheimer, who heads up financials, operations and newproduct development, recalls, “In the early days we would do everythingourselves, sourcing materials from the local textile supplier base, bringingthe materials back and making a prototype. As soon as we had something, we hadto go to market with it immediately because we were so desperate for turnover,so at that time nothing ever spent very long in the product development phase.”

Rogz’ top tips for would-be exporters

1. Create a well-branded and different product

2. Market extensively through major international tradefairs

3. Work exclusively with your distributors

Useful websites

Juliet Pitman is a features writer at Entrepreneur Magazine.

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Case Studies

Starbucks Coffee Is All About Culture… For A Reason

CEO Howard Schultz reveals how Starbucks does it.

GG van Rooyen




Vital Stats

  • Player: Howard Schultz
  • Company: Starbucks
  • Market cap: $85 bn
  • Established: 1971 (Schultz purchased the brand in 1987)
  • Website:

When Howard Schultz was raising money for his first coffee shop called Il Giornale (later to be renamed Starbucks) he was finding it hard to land investors. The reason was simple: Schultz was trying to create a coffee culture where none existed.

The idea that the man on the street would pay a premium price for a cup of Italian coffee with a name he couldn’t pronounce seemed nothing short of preposterous. But that wasn’t the only reason people weren’t willing to buy into his idea. Schultz, you see, refused to talk like a proper capitalist. He kept emphasising the fact that he wanted ‘to do good’.

Related: How tashas Built A Recession Proof Business

Schultz recounted the trouble he had finding investors during a recent visit to South Africa for the local launch of Starbucks. He spoke at a Q&A session hosted by the Wits Business School.

“My wife was eight months pregnant at the time,” says Schultz. “Her father actually sat me down and said: ‘My daughter is pregnant, and she’s working. You have a hobby. You need to get a job.”’

But, as is so typical of entrepreneurs, Schultz persevered and eventually got the funding he needed.

“The first time someone gave me $100 000, I couldn’t believe it,” he recalls.

Since those early days (the shop opened in the mid-1980s), Starbucks has grown rather prodigiously. Consider the following: By the late 1980s there were 11 Starbucks stores that employed about 100 people. A few years later, in 1992, the company went public with a market cap of $270 million. Today, it has around 24 000 stores in more than 70 countries. And its market cap? A cool $85 billion.

While growth is good, it has a tendency to birth a ravenous monster that is impossible to satiate.

“We have to add $2,5 billion in revenue every year for the next five years just to maintain our current growth rate and satisfy Wall Street,” says Schultz. “And to do this, we will need to add 80 000 employees over the next 12 months. Essentially, we’re launching a new massive company every year.”

Yet, despite this, Starbucks manages to maintain its unique culture. Just as when Starbucks was a far smaller operation, it is known for stores manned by high-energy individuals who have a clear love for the brand. How has the brand managed this? Schultz attributes it to the following seven core principles.


1. Partners not employees

Howard Schultz’s father worked as a truck driver, delivering and picking up cloth diapers in the days before Pampers. When he slipped and seriously injured himself, he was summarily retrenched. Schultz wanted to create a very different company.

One of the reasons he didn’t adopt a franchise model was that he wanted to be able to offer each employee at least some stake in Starbucks.

When the company went public, each employee became entitled to a portion of their annual salary in the form of stock options. That is still the case today, which is why Starbucks employees are called ‘partners’.

“Success is best when it’s shared,” says Schultz. “At Starbucks, we always ask: What’s in it for our people? Starbucks is accused of being great at marketing, but it spends very little on marketing. It’s all about the experience we offer in the stores.

Managers and leaders must do everything to exceed the expectations of our people so that they can exceed the expectations of our customers.

Related: Howard Blake Stays Hungry With His Innovation Strategy

2. Regular interaction

The management of Starbucks does everything in its power to engage with employees regularly.

“We travel extensively, and the amount of face-time management has with employees across the globe is really unusual for a company of Starbucks’s size,” says Schultz.

Schultz himself, for instance, sat down with each and every new Starbucks employee in South Africa during his recent visit.

Starbucks also has what it calls ‘Town Hall Meetings’ all over the world, during which management interacts with employees in an open and informal manner.

“We tell employees that they are free to speak up during these meetings without fear of retribution. We want honest opinions,” says Schultz.


3. Respecting (and cherishing) employees

Howard Schultz is a humanist at heart, and this is reflected in the culture of the company that he created.

“The universal language of Starbucks is a deep sense of humanity,” says Schultz. “Building a company is a lot like raising children. You are imprinting a company with a culture and a set of values. Now, if a child falls, what do you do? You pick it up and comfort it. You don’t scold it. You need to take the same approach in business.”

4. Protecting the culture

Being tolerant of failure, however, does not mean the same thing as indulging bad behaviour. In fact, Starbucks is fiercely protective of its culture, and it doesn’t tolerate bad behaviour.

“We teach employees that they have a voice, and that they should speak up when they see someone doing something wrong. You can’t enable bad behaviour because it will erode a company’s culture.”

Related: Don’t Let Expansion Ruin A Great Company Culture

5. Spending money on employees

According to Schultz, the management teams of most large companies would be horrified to discover the amount of time and money spent on Starbucks employees.

“We have been very innovative with technology, and we have created a massive digital eco-system. Interestingly, though, we spent as much time and money focusing on the things that were employee-facing as the ones that were customer-facing.”


6. Rewarding the right things

Schultz famously stepped away from the role of Starbucks CEO for around five years, and during that time the culture of the company quickly deteriorated.

“The company lost its way. The people who were managing the company — who were all good people — were measuring and rewarding the wrong things. Things such as profit and stock price became the focus. In any business, you need to continuously ask: What is our core purpose for being? Otherwise you lose your way.”

Schultz believes that his big mistake was not selecting a successor from within the culture. When he eventually retires, he intends to choose someone from within the operation who is in touch with the culture of the brand.

7. Being human

The film Fight Club famously depicted Starbucks as the epitome of the faceless corporation taking over the globe, but the company is actually quite unique in its willingness to speak out and engage with people on a social (and even political) level.

“We are very outspoken as a company. We feel that we live in a time where the rules of engagement have changed. What I mean by this is that we need to do more for the communities that we serve. The question we ask ourselves is: What is the role of a for-profit public company? Looking at this question has resulted in us taking on social issues such as same-sex marriage, gay rights, gun control and racism.”

For example, Starbucks recently unveiled its first store in Ferguson, Missouri (which has been plagued by racial unrest) as part of a plan to support efforts to rebuild and revitalise communities.

Read next: 5 Inexpensive Ways to Create a Company Culture Like Google’s

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Case Studies

How Merchant Capital And Retroviral Were Built To Sell

Entrepreneur chats to Dov Girnun of Merchant Capital and Mike Sharman of Retroviral. We explore why their companies attracted funders, and how the relationship can be used to grow their businesses.

Nadine Todd



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The Tech Based Business

Know your business’s numbers inside out, and don’t try to bluff your way through any questions that relate to numbers.


Vital Stats

  • Player: Dov Girnun
  • Company: Merchant Capital
  • What they do: Lending solutions for SMEs
  • Est: 2013
  • Investor: Rand Merchant Investment Holdings
  • Shareholding: 25%
  • Visit:

Less than two years into his business, Dov Girnun attracted the attention of Rand Merchant Investment Holdings (RMIH), a financial services investment company that includes the founders of FirstRand, Laurie Diepenaar, Paul Harris and GT Ferreira. These are no small industry players. On an investment level, they’re the funders who backed Adrian Gore when he launched Discovery and Willem Roos when he started OUTsurance.

How had Girnun found himself in the position to pitch to investors at this level? Months earlier, RMIH had launched a fintech incubator called Alpha Code. The idea was to find pre-revenue start-ups that would be the next game-changers. Their research brought them to Merchant Capital.

“We didn’t exactly fit their mandate because we were already operational and profitable,” says Girnun, “but they still really loved the business. They’d been researching the fintech space, and had recognised the potential in SME lending, which is our focus. They really wanted to invest, but at the time I was unsure if I wanted to dilute my shares further.”

Girnun already had an investor, the Capricorn Group, whose investments include Hollard, Nandos and Clientèle, and until this point he’d been careful to maintain his shareholding. His relationship with Capricorn was excellent, as the investment team added huge strategic value to the business over and above capital, and so he hadn’t been actively seeking additional funding.

And then a new opportunity presented itself. “We realised we have golden data on the SME space. How could we cross-sell to our base and monetise that data? We started chatting to RMIH, who were aligned to our thinking.

“Once I realised the value RMIH could add to our business, my whole perspective shifted. Here was an investor that could potentially help me to build a billion dollar business. I’d be diluting shares, but building a much bigger pie.”

Related: Funding Growth with Dov Girnun

The price of equity

Girnun is referring to the investment lesson that equity is cheap early on, and very expensive later, when a funder holds more shares of your business than you do. If you look for funding later, your valuation is higher, you’ve got a proven track record, and the same amount of money secures fewer shares. Sell too early, and the exact opposite happens.

This had always been Girnun’s view, but an understanding of how far the business could potentially go with RMIH’s backing was changing his mind.

There was just one challenge. While RMIH’s investment team loved Merchant Capital’s business model, investments need to be signed off by the board, which meant Girnun and his co-founder Daniel Moritz, needed to pitch to them in person, so that they could see their energy, passion and vision for Merchant Capital.

Serious, seasoned investors don’t make this easy. They need to see your passion, and how well you understand your business. They’re not there to make the experience easy.

“Even though I knew they were interested in my business, I still found the experience extremely daunting. There were very few introductions, handshakes or jokes. I was expected to launch into my pitch, and I knew that even though I had been given 20 minutes, the first two minutes would be the deciding factor. If I didn’t grab their attention in that time frame, they wouldn’t be investing in me and my business.”

Tapping into investor concerns

“I had just returned from the Endeavour international selection panel in San Francisco, and I think this played a major role in the success of my pitch,” says Girnun.

“One of my judges, a hugely successful venture capitalist from Sillicon Valley, really explained the significance of the elevator pitch to me. Imagine you’ve gotten into an elevator with the CEO of Goldman Sachs, he said. If you’re lucky, you’ve got seven floors to get them interested enough in your business to want your card, and maybe even a meeting. They can’t possibly learn everything about your business there and then — they just need enough for their interest to be piqued.

“Because you don’t know how much time you have, or who you’ll be talking to and what their area of expertise is, you can’t just learn a pitch off by heart, and you certainly shouldn’t have a power point deck that you rely on. Both are very bad ideas. Instead, you need to know your business so well, inside and out, that you can tailor your pitch to the person you’re talking to, based on what they care about.

“Because of this piece of advice, I was able to tailor the first two minutes of my pitch to the RMIH board and what they care about. If I grabbed their attention, I’d be able to hold it for the next 20 minutes, which actually ended up being close on two hours. If I hadn’t, we would have politely shaken hands after 20 minutes (if not earlier), and been on our way.”

It’s a simple, but incredibly important lesson: Know your business’s numbers inside out, and don’t try to bluff your way through any questions that relate to numbers.

“You have to know your unit economics — are you able to distill the essence of your business economics on the back of a napkin? You need to know the high level stuff and the minute details, and they all have to be at your fingertips. If they aren’t, you have no business trying to sell your company or attract investors.”

Related: Bootstrapping Is Much More Fun Than Investors

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Case Studies

How AutoTrader Anticipated Change

AutoTrader South Africa is an online behemoth, boasting more than three million visitors each month. Not that long ago, though, the brand faced the very real possibility of extinction.

GG van Rooyen




Vital Stats

  • Player: George Mienie
  • Company: AutoTrader South Africa
  • Established: 1992
  • Visit:

Key learnings

  • Trends are out there to be identified. Being caught unprepared is unacceptable.
  • Change needs to be tracked through the use of a measurable KPI.
  • Don’t be afraid to act pre-emptively.
  • Do research. Know your customer.
  • Create an unprecedented user experience.

By the mid-2000s, it was becoming clear that the world was changing. The internet was going mainstream, placing massive pressure on industries that only a few years earlier had seemed untouchable.

The print industry in particular was coming under threat, with readers moving to the internet for information. Things didn’t change overnight, though. The general decline in readership was steady but quite slow.

Like a frog sitting in a slowly-heated pot of water, it was all too easy to ignore the evidence. AutoTrader South Africa, however, was not willing to accept death by attrition.

Related: Fake It ‘Til You Make It: How These 10 Entrepreneurs Did Just That

Measuring change


“When it comes to the digital realm, you can never complain that some development impacted you unexpectedly. The writing is always on the wall, provided you’re taking notice,” says AutoTrader CEO George Mienie.

Long before the global shift to digital mediums started to affect AutoTrader in a real way, the company began to prepare for the inevitable.

“We knew it was coming. The shift to digital was already starting in places such as the US and Europe,” says Mienie.

“We also knew that we needed to measure this shift in a reliable way. When it comes to managing difficult change, you need a KPI that you can reliably measure.”

Comparing unique users of a website to the circulation of the magazine wasn’t reliable enough, since it was impossible to truly know how many people had used any given copy as a reference when shopping for a vehicle. Some other KPI was needed.

“We settled on leads to dealers. We wanted to track how many people had actually contacted vehicle dealers thanks to the magazine, versus how many had contacted a dealer because of the website,” says Mienie.

Finding a KPI

Tracking website leads and comparing them to magazine leads sounds like a simple idea, until you actually start to think about it. If it’s hard to know how many people used a single copy of AutoTrader as a reference, how do you figure out how many leads the mag has generated? It was a conundrum.

Tracking leads on the website would be easier, provided you were willing to harm the user-friendliness of the site. AutoTrader wasn’t willing to do this.

“We could track website leads by forcing every user to fill in some kind of form before gaining access to a dealer’s details, but we weren’t willing to do this,” says Mienie.

“Today, the average user spends a phenomenal amount of time on our site. A typical visit lasts 12 minutes, and we believe this is because our site is easy to use. While KPIs are important, they shouldn’t come at the expense of the user. Everything should be done to make the experience for the client or user as pleasant as possible.

“With this in mind, we give our software engineers a lot of freedom. They don’t need to seek permission to improve the site. If they’ve been working on something that they think will improve the website, they can run with it. You never want bureaucracy to stand in the way of improvement.”

Related: 11 SA Entrepreneurs on What They’ve Learnt About Managing Staff

An innovative solution


In order to effectively measure leads from both AutoTrader magazine and the website, the company came up with a very elegant solution called Call Tracker.

The solution was so elegant and transparent that even regular consumers of AutoTrader probably wouldn’t have noticed its existence.

How does it work? The number that you find for any given dealer in the AutoTrader magazine or on the website was not the same as the regular number of that dealer, although, the number was dedicated to a dealer.

Instead, it is a technology that redirected the call through the company to the dealer. Thus, giving AutoTrader the ability to measure leads via phone to the dealer, which was the most-used way in which consumers got in touch with dealers in those years.

Importantly, the company regularly placed a different number for specific dealers on the website and in the magazine, meaning AutoTrader could track exactly which platform a lead was generated from, and give the dealers useful insights into his/her dealership’s response.

AutoTrader had in essence created a reliable but simple KPI, using sophisticated technology at the time, that could be used to track consumers’ migration from print to digital.

The watershed

As mentioned, the migration of users was fairly slow. AutoTrader had started monitoring the trend in 2007, but it wasn’t until 2013 that the website took over from the magazine as the core focus of the business.

In the mid-2000s, the company had printed around 230 000 magazines each month, and managed to sell 55% of those on a regular basis.

Today, it sells about 30 000 magazines a month. However, as magazine sales have declined, the number of visitors to the website has skyrocketed, with more than three million visitors to the website every month, opening more than 40 million pages.

Related: 5 Wrongheaded Attitudes Stunting Your Growth As An Entrepreneur

New competition

The migration of AutoTrader magazine advertisers (sellers) and consumers (buyers) to the website wasn’t guaranteed. Getting buyers and sellers of the magazine to embrace the AutoTrader website required hard work.

“As a magazine, we had a big advantage: Potential competitors were faced with very high barriers to entry. We had the capability to compile a 600-page magazine, print it and distribute it weekly. Any new competitor would have found it hard to match us,” says Mienie. “The internet, however, obliterated those barriers. Suddenly it was much easier to compete with AutoTrader.”

AutoTrader wasn’t afraid to pre-empt the digital shift. “You need to be willing to eat yourself. One of the things we did was to place the website prominently in the magazine, knowing that it would eat into sales. We had to take a short-term hit, but we knew that we would benefit from it in the long term.” The company also placed a huge emphasis on the user experience.

“You need to be the best,” says Mienie. “You need to lead the charge and be first to market with every new development. You also need to know and respect your consumer and dealer. We believe in creating a site that is easy to use and offers more content than you’ll find anywhere else. We also make it a priority to know the consumer’s car-buying journey and car sellers’ needs.

“But, the game is changing again, fewer and fewer consumers are using the phone, and to an even lesser degree email, to get in touch with dealers. Our research over the last year shows that more than 52% of car-buying consumers don’t phone or email a car dealer, but simply take the address and visit the dealer directly.

“When it comes to managing great change within a company, research is incredibly important. But just doing research isn’t enough you need to use it effectively. The temptation exists to hog research because you don’t want competitors to get hold of it. That doesn’t work. We know exactly how much time the average consumer spends studying vehicles before buying a new car. We also know how much of that time is spent online (15 hours), and how much is spent in the physical world visiting dealers (14 hours), and this trend is shifting rapidly toward less time in the physical world and more time searching online, which means the consumer has pretty much made his choice before he leaves his screen. We give that info to our salespeople, who in turn give it to our clients (car sellers). Information needs to be disseminated.”

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