Draft 6 board meeting q.1 2011
Transcript of Draft 6 board meeting q.1 2011
AUM Performance and Strategy
Board Meeting Q1 2011
Agenda• SWOT analysis.• Vehicles market overview.• Performance analysis
– Market Share.– Sales performance.– Marketing activities and plans– Financial results.
• AUM strategy – “Lead by innovation” .– Strategy implementation.
• Recommendations.
SWOT analysis
SWOT Analysis
• Strengths– Competitive B2B business approach. – Long experience in commercial vehicles. – Strong image (Alissa, Isuzu).– Experience in turbulence management.– Strong relations with suppliers.– Transparent business processes and procedures.– AUM values and principles.– Sister companies’ support.
SWOT Analysis
• Weaknesses– Territory restrictions.– Employees’ skills do not match AUM ambitions.– Narrow product range– HR & Admin (lack of recruitment process, non
comprehensive training, admin bureaucracy, out-dated policy, rules and procedures, Visas, company’s computer code)
– IT (insufficient support, lack of transparency, users dissatisfaction, negative attitude, slow technology updating)
– Legal (insufficient support and negative attitude)
SWOT Analysis
• Weaknesses– Finance ( AUM Bank account, Credit policy,
performance review) – PDI performance.– Logistic ( low response)– Facility ( attendance and exaggerated costs)
SWOT AnalysisOpportunities
– Kingdom high population growth rate.
– The current high oil prices has boosted growth in the non-
oil sector.
– Saudi Arabia is the largest importer of vehicles and
automotive parts in the Middle East.
– Market recovery
– Huge KSA development budget.
– Incremental government expenditure.
SWOT Analysis
• Opportunities – Establishing New HQ.
– Product Development.
– Alissa companies synergy.
– New assembly line for ISUZU trucks in KSA.
– Acquiring new franchises.
SWOT Analysis
• Threats– Supply cut-off (Japan earthquake and Tsunami
consequences)– Continuous increase of vehicles cost.– Chinese and Korean invasion “price war”– Competitors’ MS growth “Toyota”– Hesitation of banks in financing businesses.– Middle East Political situation.
Vehicles Market Overview
Japanese Brands MS Feb. 11 YTD
Isuzu Toyota Nissan MMC Mazda Honda Suzuki Daihatsu
8.3%
64.1%
15.5%
2.8%2.0% 3.2% 1.3% 1.6%
6.9%
71.8%
11.2%
1.8%1.7% 2.6% 0.6%
2.2%
2010 contribution% Feb 11 YTD Contribution %
Categories' Segments MS March 11 YTD
21%
7%
5%
23%
44%
Pickup Trucks Van/Bus SUV P-cars
Automotive business outlook in KSA
KSA Automotive ForecastBMI- Report 2010
Automotive business outlook in KSA
2008 2009 2010e 2011f 2012f 2013f 2014f 2015f 0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Commercial Vehicle sales 181,456
Total sales 857,242
Axis
Title
After-Sales Business
The sever competition between rival carmakers and dealers,
reinforced the attention paid to after sales services, which had
not always kept pace with the increasingly sophisticated
market. After-sales is seen as a key area in which dealers can
boost their value-added offerings.
Automotive business outlook in KSA
AUM Performance Analysis
YTD 2011
ISUZU Dealers MSYTD 2011
Dealer MS March 11 YTD
50%
7%
3%
15%
25%
BBC BTTC Yemco-East Yemco-Central Alissa
ISUZU Dealers MS Contribution
2007 2008 2009 2010 2011 YTD0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
ALISSAAL-YEMNIBAKASHAB
Central Area Dealers MS
2007 2008 2009 2010 2011 YTD0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
ALISSAAL-YEMNI
Dealer MS March 11 Central Region
72%
28%
ALISSA AL-YEMNI
Dealer MS March 11 YTDCentral Region
38%
62%
Yemco Alissa
Pick up Market Share
D-Max (Pick-Up) class MS March 11 YTD
20%
67%
8% 4% 2%
Isuzu Toyota Nissan MMC Mazda
D-Max (Pick-Up) KSA MS over 07, 08, 09, 10 and 2011 YTD
2007 2008 2009 2010 2011YTD
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
IsuzuToyotaNissanMMCMazda
D-Max Dealers MS March 11 YTD
53%
7%
15%
25%
BBC BTTC Yemco Alissa
D-Max MS March 11 YTDCentral Region
39%
61%
Yemco Alissa
N-Series Market Share
N-series (LDT) class MS March 11 YTD
74%
12%2%
12%
Isuzu Fuso Hino Toyota
N-Series (Japanese LDT) KSA MS over 07, 08, 09, 10 and 2011 YTD
2007 2008 2009 2010 2011YTD
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
IsuzuFusoHInoToyota
N-Series dealers MS March 11 YTD
18%
26%
45%
11%
Yemco Alissa BBC BTTC
N-Series MS March 11 YTDCentral Region
36%
64%
Yemco-Central Alissa
F-Series Market Share
F-series (Japanese MDT) class MS March 11 YTD
46%
18%
27%
10%
Isuzu F-series Fuso Dutro UD
F (UP) Series KSA MS over 07, 08, 09, 10 and 2011 YTD
2007 2008 2009 2010 2011YTD
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
IsuzuFusoHinoUD
F-Series KSA MS March 11 YTD
8%20%
72%
Yemco Alissa BBC
F-Series KSA MS March 11 YTDCentral Area
24%
76%
Yemco-Central Alissa
AUM Sales Performance
AUM Sales Performance YTD 2011
JAN FEB MAR Total0
200
400
600
800
1000
1200
1400
1600
1800
2000
SalesTarget
67%
88%
131%65%
JAN FEB MAR TOTAL
300251
374
925
365 367 366
1098
SalesTarget
84%
D-Max Sales Performance YTD 2011
N-Series Sales Performance YTD 2011
JAN FEB MAR TOTAL
113 140
451
704
237 234 240
711
SalesTarget
99%
F-series Sales Performance YTD 2011
JAN FEB MAR TOTAL
16 18 16
50
24 22 24
70
SalesTarget
71%
Monthly achievement2011 vs. 2010
JAN FEB MAR0%
20%
40%
60%
80%
100%
120%
140%
67% 65%
131%
91% 92% 101%
20112010
AUM Sales Unites First Quarter 2011 vs. 2010
Jan Feb Mar Total Q10
200
400
600
800
1,000
1,200
1,400
1,600
1,800
20102011
-2.7%
AUM Marketing Activities
2011 Marketing Strategy Modifications
• Focus on AUM branding.• Control expenses.• Customer retention.• Maintain customer loyalty.• More focus on after sales department.• Maximize ROI. • Integrate all marketing communication tools.
Marketing Activities• 0% interest leasing campaign with AlYusr • Campaign objectives
– Offer maximum support to sales department and generating new hot leads.
– Focus more on after sales department through generating hot leads and announcing for long term relationship.
– Target virgin segment of small companies with more customized leasing program.
– Synergize different marketing approaches to maximize ROI.– Link AUM with Isuzu as an authorized dealer.– Keep AUM on top of prospects mind for future business.– Build AUM goodwill – Use innovation and modern approaches to maximize marketing
efficiency.
• 0% interest leasing campaign with AlYusr
• Integrating direct marketing with other used
marketing communication tools which are exhibition
in malls and advertising in newspaper and others in
addition to utilizing for the first time online - offline
integration in our activities. PR parallel campaign in
Newspaper.
2011 Marketing Activities
2011 Marketing Activities• 0% interest leasing campaign with AlYusr (Advertising)
– Targeting fleet and retail customers
– 9 Insertions in Riyadh, Aljazeera and Al Iqtsadeia newspapers.
– In cooperation with AlYusr Company.
– 0% Interest. -50 % cash. - 50% installments over 2 years.
2011 Marketing Activities
• 0% interest leasing campaign with AlYusr
(Direct Marketing)– High level of promoters visited 1500 medium and
small companies. Promoters distributed our branded
bags containing D-Max catalogue, simple gift and
flyer with different message according to customer
targeted segments;
– Targeting SMEs .
2011 Marketing Activities
1000 flyer distributedTo
Indu
stria
l City
1 &
2
Marketing Activities 2011
• PR parallel Campaign in Newspaper
2011 Marketing activitiesBrand Reminders
• Hijri Calendar • Diary
2011 Marketing activities
• Yearwall
calendar
2011 Marketing Activities
• Wall clock for Fleet customers
Trucks Sales & Service Campaign for
fleet and retail customers:– Free oil and filter from Alissa for 50,000
Km from our workshop.
– Targeting Fleet and Retail.
– For all N-Series Models.
– 6 insertions in Riyadh, Al- Jazeera and Al-
Iqtsadeia newspapers.
Marketing Activities
2011 Marketing Activities
• Trucks advertising campaign• N-Series• 6 insertions in Al-Riyadh
Newspaper, Aljazeera Newspaper and Al- Iqutisadyah newspaper.
• 50,000 Km free oil and filter
Marketing Activities
• Leasing & Service campaign for retail customers– Free Oil from Alissa for 100,000 KM
– In Cooperation with Arabic National Bank with the following terms:
– 2.99% interest rate. - No down-payment. - No Admin fees.
– Targeting retail sector.
– For all D-Max models during March.
– 4 Insertions in Riyadh and Aljazeera newspapers.
• Targeting Saudi youth.
• Leasing & Service campaign retail customers
Marketing Activities
• Targeting retail (Saudi families).
• Leasing & Service campaign for retail customers
Marketing Activities
Service Marketing Activities
• AUMSC:– Customer Fleet workshops’ technicians training in Exit
18 Trucks workshop.
Service Marketing Activities
• AUMSC:– Fleet workshops’ technicians training in Exit 18 Trucks
workshop.
Marketing Activities
D-max Cafe-MUPI campaign for retail customers:
• For all D-Max models February March
• 84 MUPIs in 19 cafe in Riyadh city
• In Cooperation with Arab National Bank with the
following terms:
– 2.99% interest rate. -No down-payment.
– No Admin fees.
Marketing Activities
"It may not always be profitable at first for businesses to be online, but it is
certainly going to be unprofitable not to be online."
Esther Dyson
Digital Marketing Activities
1. AUM website renovation.
2. Establish AUM presence in social media networks.
3. Email marketing campaigns.
4. Integrating online – offline activities.
5. Developing first online marketing campaign.
It is not about only creating a website, we are building our web
presence through the integration of the new version of the
website and the social media networking.
AUM has started its travel from a physical showroom and has
reached to its current destination of virtual showroom,
enabling a faster, professional and wider reach in much
economical way.
Building the new version of AUM website
Website Statistics YTD March 2011
• No. of generated requests: 124.
• No. of visits: 1172 visit.
• No. of page views: 8846 pages
• No. of pages per visit: 7.55 page
• Bounce rate: 8.53%
• Avg. Time on site: 05:31 min.
New version Vs. Old Version
The benefits of jQuery are:
• Increased SEO which means more traffic through search
engines.
• More browser compatibility
• Compatible with I-Phone, I-Pad and Smart phones (website
appears exactly as on computers).
• the pages are lightweight that means easier loading.
Confidential
New Version Old Version
Used Technology J-Query Flash
Browser Compatibility Compatible with all browsers Without installing adobe flash
Compatible with all browsers after installing flash
Compatibility with smart phones (Accessibility)
Compatible with I-Phone, I-Pad and Smart phones
Not Compatible with I-Phone, I-Pad and smart phones
Usability Maximum 3 clicks to navigate from anywhere to anywhere within the website
Up-to 6 clicks to navigate from a page to another page.
Page Loading Light Heavy
Layout User friendly – colorful Not attractive
Marketing Activities
Marketing Activities
Facebook Fan Page enables us to Interact with our Customers and Prospects
Q1 Post Views: 12,755 Q1 Photo Views: 409Q1 Video Views: 163
External referral from Google: 874
Marketing Activities
You Tube Channels
AUM Videos Watched 10,331 Times Till Now And Counting
Marketing Activities
Flickr is an online system that provides an
affordable way to store and manage photos, as
well as share them with the world.
Our photo stream on Flickr:
http://www.flickr.com/isuzusaudi
Marketing Activities
Marketing Activities
Objectives of AUM Email marketing
Campaign (monthly newsletter)
• Expand customer database.
• Increase brand awareness, and communicate
special offers and promotions.
• Overcome obstacles for easy reaching target
consumers
• Target the specific segment of consumers with
the right message.
• Direct qualified traffic to AUM website for
further action.
2010 CRM results
Enquir
y
Quotat
ion
New C
ustom
ers
Sales I
nvoic
e
Follow
Up
0100200300400500600700800
Q2-2010Q3-2010Q4-2010
2011 Marketing activities plan
• AUMSC:– Training decision makers by leading
training companies (Stake holder Management by TTM) in May.
– Service training for fleet workshops’ technicians. (continuous all over the year)
– Mini-Symposia for fleet customers to highlight competitive advantages of AUM and ISUZU in May.
2011 Marketing activities plan
• Participation in Janadryah Festival in April.• Annual celebration for AUM customers in June.• Launch new website in April.• Online campaign in May and June.
• Saudi Build 2011
2011 Marketing activities plan
2011 Marketing activities plan
• Saudi Build 2011• 22800 visitors in 4 days.
2011 Marketing activities plan
• Renovation Branding of AUM facilities:• Malaz and new HQ.
2011 Marketing activities plan
• Launch Mobile car gallery– Used in Isuzu at your place projects.– Driving Ethics campaign
2011 Marketing and Service activities plan
• Launch Mobile workshop– Used to provide service for fleet customers at their
locations.
AUM Financial Performance
Gross Profit
14,864
13,904
10,636
Actual YTD 2011Budget YTD 2011 Actual YTD March 2010
Gross profit performance
10.5 % 8.3 %8.7 %
Operating Expenses
3,868
4,811
3,241 Actual YTD 2011Budget YTD 2011 Actual YTD March 2010
Operating Expenses performance
2.5 %2.7 % 3 %
Net Profit
5,756
2,875 2,560
Actual YTD 2011Budget YTD 2011 Actual YTD March 2010
Net Profit Performance
2 %1.8 %4.1 %
AUM strategy “Lead by innovation”
2011 marketing strategy outlines• Maximizing ROI of Marketing Activities:
o Integrating online with offline marketing activities.
o Expanding our e-marketing activities (banner advertising - Google Adwords camp.)
o Approaching different vendors (new suppliers for promotional items)
o Monitoring gift distribution (providing valuable gifts to fleet customers via name list
request)
• Achieving Market share of 55% in central region at 2011 through:o Isuzu at your place project.
o Corporate Social Responsibility program (Driving ethics awareness campaign)
o Increasing SOV and SON
o Diesel concept building activities.
o Focusing on CRM implementation
2011 marketing strategy outlines
• Maintain and increase our customers loyalty through:o Driving Ethics campaign.
o AUMSC training waves for different levels.
o ISUZU branding activities.
o Promotional activities.
• Increase accessibility through:o New sales office.
o Expand Target Audience via online channels.
o Isuzu at your place project
2011 Sales strategy outlines
• Increase total sales by 7%:o Open new sales office in IC2 ( industrial city 2).
o Developing the governmental sales ( by using the Demo D-max )
o Increasing the heavy duty truck sales, and disposal of 2009 stock
• Keep minimum 8% GP through:o Give priority to margin over volume sales.
o Improving retail sales share from total sales.
• Developing Daily and weekly Sales Reports .o Daily monitoring using sales reports from S. force to S. supervisors, &
Weekly from S. Supervisors to S. Manager.
2011 Sales strategy outlines
• Strictly monitor operating cost at budgeted level through: o Manage inventory levels between 2.2 to 3 months sales.
o Review and approve cost allocations.
2011 after sales strategy outlines
• Reduce back jobs from 2% to 1.5%.o Train technicians to diagnose and fix the vehicle right first time
o Improve quality control process.
• Increase labor sales amount from SR- 3.39m to 4.14m by 2013.o Initiate routine and maintenance packages with customer at the point of vehicle sale.
• Increase service and parts sales.
o Mobile workshop.
• Maximize vehicles retention from 350 V /M to 450 V/M o Communicating warranty coverage and importance of periodic maintenance
with our customers at sales point and during first maintenance.
Handling Challenges
• Product development.• People development.• Marketing strategy modification.• After sales development.
Product DevelopmentModifying D-Max for small
shipment of water companies.
Basic Calculation for weight
GVW : 2,750 kg ---(1) Kerb weight : 1,425 kg ---(2) (Figure on catalog)Passenger weight : 250 kg ---(3) (3 passengers with 80kg/man)Rear Body weight (tentative) : 200 kg ---(4) (Just tentative weight)Fuel weight : 70 kg ---(5) (Full refueled)
Net Payload for Bottles : 805 kg = (1)–(2)–(3)–(4)–(5)
Weight of one water bottle is less than 20kg (18.9 L + plastic case), soMaximum loading quantity will be 40 bottles.
Body 200kgBottles 805 kg
20 bottles in one floor. 2 floors 40 bottles.
2,400 mm
1,720 mm
Apx 900mm
300 mm
500 mm
Bird View
Side View
Frame Body for Water Bottles
Frame Body for Water Bottles (on D-MAX)
Bird View
[Option 1] [Option 2]
Option 1 can accommodate more bottles, but it will be over-loaded (2 floors 50 bottles)Option 2 seems to be suitable, in terms of the number of bottles (2 floors 40 bottles)
(REF) Study for Water Bottle Layout
Al Manhal Water Factory (Mar.30th)
Hiace in Al Manhal Water Factory. All models are with DSL engine / MT, without ABS/Airbags. They have 200 units in Riyadh (400 u’ in KSA total), but there are some stand-by vehicles. Body is well branded for Al Manhal (or Nestle) product. They have role of running ads also.
Bottles are located on the floor, but it can carry 50 bottles in one floor. If 2 layers, it will be 100Bottles maximum. However their payload is only around 1t, it will be much over-loaded. They increase rear leaf spring by themselves.
Stand-by vehiclesNestle brandingAl Manhal branding
Increased leaf spring
Half floor 25 bottles
[Loading Layout for Hiace (inside the van)]
2,930 mm
1,545 mm
Tire House
Tire House
Around 45 bottles on one-floor
Al Manhal Water Factory
[Loading Layout for Hiace (inside the van)]
2,930 mm
1,545 mm
Tire House
Tire House
1st layer : 45 bottles2nd layer : 40 bottles
Total : 85 bottles
1,700 kg loaded !
: 2ne layer (on top of 1st layer)
Al Manhal Water Factory
Al Manhal Water FactoryConsideration :1. The fact is that Al Manhal is satisfied with Hiace is true, and Hiace itself is actually good and well designed vehicle. However, we have a chance to penetrate.
2. Our advantages are : (1) Stability during driving With bottle fixed cage-body. (2) Price Depending on the cost of body. (3) Safety D-MAX is bonnet type, while Hiace is cab-over. And D-MAX has option of ABS/Airbag also. (4) Special designed body It can be specialized. For example, we can provide body type which can carry bottles and machines together with. (5) Work efficiency Easy to load-unload body (side opened shutters) (6) Fuel Economy Fuel tank of D-MAX is 76L, while Hiace has 70L only. etc… We can find more, if we compare the specs in details.
3. Our disadvantages are : (1) Loading capacity But Hiace’s case is just over-loading. It will cause non-safe situation. And I wonder if they really need 70-80 bottles in one-time.
Next step will be a discussion with Body Maker who can make this kind of special body.
People Development
People development
• English Language courses.• Personal development (Time management and
self management training)• Marketing meeting.• Problem solving training.• Leadership training.• Communication skills.
After sales development.
Q : What is our objectives for after sales operation improvement ?
A : To make profit by after sales (Service and Parts operation)
Q : How to make profit ? A1 : To sell more (increase revenue)
A2 : To minimize cost (decrease expense)
Generally …
A1 (1) Increase in-coming vehicles
To invite customers to workshop
(2) Increase unit-price/case To sell more profitable services
A2 (1) Realize efficient operation To finish service in short time
(2) Decrease unnecessary portion To be smart operation
In case of After sales …1st STEP for this Project
Objectives and Method
We started this operation from JAN.2011 with monitoring and reviewing in-coming vehicles to Malaz and E18 workshop.
The result was (average unit / day) :
JAN FEB MAR TargetMalaz 12.5 9.6 11.1 20.0
E18 5.9 5.5 8.0 10.0
(1) E18 seems to have some improvement, however, Malaz seems to be far away from the target. (2) That means, currently activity to invite the customers to workshop is not yet
enough. What kind of activities can we take ? (3) And also we will have to specify the customers who can come to workshop. Who will come ?
Current Status
Customers will be divided into the following segments.
End User ?Own
Workshop ?
Maintenance
@ AUM ?
Repair @ AUM
Contact Method
D-MAX Sales Ratio
Truck Sales Ratio
Retail YES NO YES YES Call/SMS 10-20% Limited
SME YES NO YES YES Call/SMS 20-40% 30-40%
Big Fleet YES YES NO YES Visit 20-40% 30-40%
Souq * NO NO - - - 10-20% 0-10%
Bank / Finance Co
*NO NO - - - 20-30% 10-30%
* Souq and Bank / Finance Co will be finally treated as Retail, SME or Big Fleet, with specifying enc-user.
We will have to take proper method by customer segments.
Customer Segment
They don’t have any workshop by themselves of course.
(1) How many vehicles are sold to this segment ? (JAN – MAR)
(2) How to reach these customers ? * Phone number available ? Should be YES * Calling them already ? Not yet for new customers. (3) How to invite and how to get his information by calling ? Providing the followings, (a) Special offer for 1st service with 150 SR. *Normally, 1st service will cost 220 SR (Oil 70SR + Filter 75SR + Labor75SR)
(b) Special gift for coming to workshop *Utilizing give-away items.
(4) Receptionist (Caller) will call the customers and invite them, and also record the summary of phone-conversation. (a) If YES for coming, book the appointment (b) If NO for coming, what is the reason. (c) If NO with some comments, try to convince him.
For Retail Customers
They don’t have any workshop by themselves also.
(1) How many vehicles are sold to this segment ? (JAN – MAR)
(2) How to reach these customers ? * Phone number available ? Should be YES, but might not be PIC. * Calling them already ? Not yet for new customers. (3) How to invite and how to get his information by calling ? Providing the followings, (a) Special free inspections *Without any special offer, like 150SR.
(4) Receptionist (Caller) will call the customers and invite them, and also record the summary of phone-conversation. (a) If YES for coming, book the appointment (b) If NO for coming, what is the reason. (c) If NO with some comments, try to convince him. (d) If NO, AUM will try to visit them with Mobile Workshop with appointment.
For SME Customers
They HAVE their own workshop, and doing maintenance by themselves. Usually, they will NOT bring vehicles unless warranty issue (Sometimes, even in warranty case, they will NOT bring)
(1) How many vehicles are sold to this segment ? (JAN – MAR) and Who are they ? (2) How to reach these customers ? * Phone number available ? Should be YES, but might not be PIC. * Contacting them already ? Unfortunately NO. (3) How to treat these customers ? Communicating with “Face to Face” operation. Regularly, service/parts/sales team should visit them to hear what is their requirement. In visiting, (a) To check the problem they are facing (b) To check their requirement for replacement vehicles (c) To try to sell parts from AUM (d) To provide benefit, like training, inspection etc… These customers are like Treasure Box for service/parts/sales.
For Big Fleet Customers
Souq are not End-User. We will have to specify the end-user.
(1) How many vehicles are sold to this segment ? (JAN – MAR)
(2) How to specify end-user who purchased from Souq ? Providing the followings (as same as Retail Sales Method), (a) Special offer for 1st service with 150 SR. *Normally, 1st service will cost 220 SR (Oil 70SR + Filter 75SR + Labor75SR)
(b) Special gift for coming to workshop *Utilizing give-away items.
(3) Then, to Update AUM CRM information with real end-user information.
For Souq Sales
They are not End-User. We will have to specify the end-user.
(1) How many vehicles are sold to this segment ? (JAN – MAR)
(2) How to specify end-user who purchased from Souq ? (a) Tracking from System with real end-user name. (b) When specified, going to each segment method.
For Bank and Finance Co Sales
Also We will have to educate our customers to lead GENUINE PARTS and GENUINE
SERVICE, in order to invite them to AUM Workshop.
(1) Education materials
(2) Convincing talk Caller will be experienced and trained to convince customers that AUM
service has benefit for them, like safety, quality etc… (a) Training session will be necessary (b) Calling / Answering manual will be necessary.
Others : Education for customers
Method on this presentation will be just 1st step to increase in-coming vehicle to AUM workshop as “1st customer” mainly.
Those customers who come to AUM workshop will be retained, and invited to come again for 2nd/3rd… services. Retaining customer will make more profit for all operation.
Customer Retention
Vehicle Sales to New CustomerVehicle Sales
to New Customer
Vehicle Sales to New CustomerVehicle Sales
to New Customer
Vehicle Sales to New CustomerVehicle Sales
to New Customer
Hunter Business
: Profit
Profit is small…Due to competition
Service / PartsService / Parts
Service / PartsService / Parts
Service / PartsService / Parts
Agriculture Business
Bigger and sustainable profit !!
Service / PartsService / Parts
Service / PartsService / Parts
Service / PartsService / Parts
Agriculture Business
Service / PartsService / Parts
Service / PartsService / Parts
Service / PartsService / Parts
Agriculture Business
Bigger and sustainable profit !!
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Bigger than new customer !!!
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Vehicle Sales to Existing Customer
Bigger than new customer !!!
Finally : For Next Step
Recommendations
• Resolve current problems.– HR, IT and Facility.– Rebuild credit facility rules and procedures.– More support from legal department.– Restructure facility department.– Developing logistic department.
• New facility establishment.– Rent reconsideration.– Ensuring new facility delivery by end of 2011 applying
all Isuzu motors and dealer requirements.
Recommendations
• Supply cut off management– Increase vehicle price.– Reduce sales target.– Control expenses.– Freeze hiring.– Searching for new franchises.– Designing contingency plan for lack of inventory
period.
Thank you