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Xiamen Honda 4S: Capturing Marketing Insight MM UGM Executive B – 26 B: Group 1 Arifin Joyodiguno Bayu Wicaksono Adhi Wita Puspadila
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
