Xiamen Honda 4S:Capturing Marketing Insight

MM UGM Executive B – 26 B: Group 1 Arifin Joyodiguno Bayu Wicaksono Adhi

Wita Puspadila

CASE SUMMARY

MAIN ISSUE

PROBLEM STATEMENTS

ANALYSIS OF SOLUTION ALTERNATIVE

RECOMMENDATION

China Automobile Sales Growth

China Automobile Sales System

Automobile Suppliers

Automobile Brand DealersCASE SUMMARY – CHINA AUTOMOBILE MARKET

CASE SUMMARY – CHINA AUTOMOBILE MARKET

Automobile General Distributor

• Corporate status• Written authorization of an

automobile maker & particular distribution rights of automobiles

• Professional automobile marketing capabilities

Automobile Brand Dealer

• Corporate status• Authorization of an automobile

supplier to sell certain brands• Have a shops (name, logo &

trademark consistent w/ the authorization)

• Have premises, facilities & technical professionals

• Comply w/ local regulation on urban & business development

REQUIREMENTS

SALESSPARE PART SERVICES SURVEYS

4S: a sales service shop serving four function

CASE SUMMARY – XIAMEN AUTOMOBILE MARKET

Xiamen, located in southeast Fujian on China’s southeastern coast.Land Area 1,575.16 square kilometersSea Area 300 square kilometers2009 data: 2.52 million registered residents 25.24 million tourist arrival2009 GDP US$ 25.43 billion

Xiamen Economic Growth improved the standard of living, reflected by the increase of motor vehicle purchases

Increased number of automobile brands moved into the Chinese market , including Xiamen market

XIAMEN PURCHASE PATTERN

Personal Financial Situation

Occupation & Social Status

Opinions

Advertisement

Tax Reduction

Direct Discount

Reduction of Automobile Usage Fees Equipment / Interior Decoration/Maintenance/Insurance

PURCHASE DECISION FACTORS

CASE SUMMARY – XIAMEN AUTOMOBILE MARKET

Price Range US$ 16,000 – 26,000

White collar employees

Self-employed people

Private Business Owner

Price Range US$ 26,000 – 41,000

Sr. White collar employees

Mid Level corporate Managers

Private Business Owner

A/I US$ 22,000 – 30,000

A/I US$ 30,000 – 44,000

Best Selling SUV 2009

Marketing & After sales

Redistributed to 2 dealers

CASE SUMMARY – XIAMEN HONDA 4S SHOP

CASE SUMMARY – XIAMEN HONDA 4S SHOP PROFILE

Main Business Dept .

SALES

• CUSTOMER CONTROLLED ACTIVITIES

PROCESS

• SALES CONSULTANCY ACTIVITIES

4S SHOP

• LOGISTIC & ADMINISTRATION ACTIVITIES

XIAMEN

• INTERNAL ACTIVITIES

CASE SUMMARY – XIAMEN HONDA 4S SHOP PROFITABILITY MODEL

Sales INCOME

PROVISION OF AFTER SALES SERVICES

SALES OF WHOLE VEHICLES

CAR INSURANCE

•ACCIDENT REPAIR (NON/ INSURANCE)

BEAUTY PRODUCT

•REGULAR AUTO BEAUTY CARE

PLATE LICENSING

•OTHER BUSINESS INCOME

MAIN ISSUES

MAIN ISSUES

1. Xiamen Honda Income Generated : Sales & After Sales

2. Low Income at After Sales Service Department

3. Lack of Coordination between two main profit center

MAIN ISSUES

Customer Loss Rates Below Customer Expectation Third party Contract

PROBLEM STATEMENTThe submitted proposal is involving the

complimentary car care plan to customer purchasing (undiscounted) insurance.

Is it a good way to retain the customer?

Could Xiamen Honda 4S follow suit?

Each Year 4S Shop spent large sums of advertising, promotion and enhancement of

customer satisfaction .Was the money well spent ?

ANALYSIS

Marketing Analysis

Define Problem & Research Objective

Develop Research

Plan

Collect Information

Analyze Information

Present Findings

Decision

INTERNAL

EXTERNAL

ANALYSIS

ECONOMIC VALUE

FUNCTIONAL VALUE

PSYCHOLOGICAL VALUE

PRODUCT VALUE

ANALYSIS

MARKETING METHODS

PRODUCT

PRICE

CHANNEL

ADVERTISING

ANALYSIS

• STRENGTH

GOOD PRODUCT / SALES

• WEAKNESS

LOW PROFIT AFTER SALES

• OPPORTUNITY

INCREASE OVERALL PROFITGOOD COLABORATION AMONG 2 DEPTIMPROVE CUSTOMER SATISFACTION

• THREADS

COMPETITORS STRATEGY

RECOMMENDATIONAccept the proposal Using “ATM” methods (observe, duplicate &

modify) this proposal should be a good way to test customers satisfaction and increasing the retention rate.

This will impact to the increase of after sales department expenses, but if this promotion strategy succeed, after sales could gain profit from other services (spare part, oil, etc. )

This will improve the coordination/ collaboration between two main income center which should also increase the overall company’s profit

RECOMMENDATIONXiamen will follow the suits This “duplicating” strategy will be more

powerful by modifying the services provided to the customer such as;

Provide home care services for regular services Create the comfortable waiting room completed

with free WIFI and playground area for children In cooperation with Banking Services to give

discount rate promo for the customerThis modification strategy will increase long life/ intimacy and customer satisfaction

RECOMMENDATION

COST EFFICIENCY STRATEGY Sales Department have a pressure to

sell the automobile unit that has been distributed by the distributor to avoid any storing cost.

Sales Department should continue using good media advertising to increase the unit selling