Dr. Taylor
MNGT 432
22 April 2014
Case Study #3:
Jolson Automotive Hoist: The Market-Entry Decision
Jolson Automotive Hoist, Inc. began in 1991 after Mark Jolson had left his previous employer to pursue a hoist design that he believed to be a potential success. In 1992, Jolson hired
Pierre Gagnon to handle the marketing side of the operations. The Jolson Lift was a surface scissor lift, as opposed to the traditional in-ground single and four post lifts, making it appealing due to its mobility and easily installable. After the original design was made, Jolson continually made improvements to his product, including more safety features, such as safety locks, that other lifts did not have. The Jolson Lift soon became considered a leader in automotive lift safety. Jolson Lift has developed the reputation in the industry as the “Mercedes” of hoists, a continuing reputation of quality that Mark Jolson plans to keep throughout all decisions the company makes.
The industry that hoists belong to sells approximately 49,000 hoists each year in North
America. The hoists are typically purchase by any automotive outlet that serviced or repaired cars, including new-car dealers, used-car dealers, specialty shops, and independent garages.
Jolson Automotive Hoist competed in specialty shop segment and those shops dealing with wheel alignment. It’s estimated that 85% of company sales are to the wheel alignment market in service centers, such as Firestone and Goodyear, and independent garages that specialized in wheel alignment. The remaining 15% of sales are made to customers who use hoists for general mechanical repairs.
Curry 2 Jolson Automotive Hoist’s current marketing strategy, as stated early, has helped it develop a reputation for a quality product backed by good service in the hoist lift market. The strategy involves the use of three types of distributors: (1) a company sales force, (2) Canadian distributors, and (3) a U.S. automotive