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Network Diversity & Dealer Development Building a Stronger Retail Channel 2011 Game Plan Marcus A. Foreman Manager, Network Diversity & Dealer Development.

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Presentation on theme: "Network Diversity & Dealer Development Building a Stronger Retail Channel 2011 Game Plan Marcus A. Foreman Manager, Network Diversity & Dealer Development."— Presentation transcript:

1 Network Diversity & Dealer Development Building a Stronger Retail Channel 2011 Game Plan Marcus A. Foreman Manager, Network Diversity & Dealer Development

2 CHRYSLER GROUP LLC Network Diversity & Dealer Development 2 Minority Dealer Update 2010 Year In Review (Accomplishments and Initiatives) 2011 Game Plan

3 CHRYSLER GROUP LLC 3 3.0% of Total Dealer 4.8% of Total Dealer 10-Year Minority Dealer Count 4.8% of Dealers 7.1% of Volume Minority Dealer Count Total Dealer Count

4 CHRYSLER GROUP LLC Chrysler Group LLC. ( U.S. Dealer Network ) 4 Non-CMDA Dealer CMDA Dealer

5 CHRYSLER GROUP LLC Network Diversity & Dealer Development 5 Project Genesis 86% of Network carry all CG Brands (CJDR) 86% of Minority Dealers carry all CG Brands 372 Women - Ownership at 316 Dealerships: 66 have more than 25% ownership 33 have more than 50% own ership Minority Dealer count thru February 28 th is 113 46 (41%) are CMDA Dealers Minority Dealers : 4.8% of our Dealer Count Represent 7.0% of the total Sales Volume

6 CHRYSLER GROUP LLC 6 Network Diversity & Dealer Development Building A Stronger Retail Channel Top 10 Focus Factors:

7 CHRYSLER GROUP LLC Communication Initiatives 7

8 CHRYSLER GROUP LLC Dealer Candidate Development ( DCD ) 8 Goal Place 3–5 Candidates into dealerships Number #1 Goal: Find more diversity talent We’re looking to build and develop a deeper talent pool from both new candidates & existing dealers Execution: Candidates will work at dealerships and go through a rigorous training program. Roll Out: Phase 1: Find interested /qualified talent ( “The Bench” ) Phase 2: Assess the needs ( training, development, capital ) Phase 3: Implementation ( New Points ) Goal: Place 3 – 5 candidates into dealerships Basic Requirements (including but not limited to): Automotive Experience ( preferred ) Effective history of positive performance Access to capital United States Citizen & Ethnic Minority Must pass a background check

9 CHRYSLER GROUP LLC Performance Improvement Dealer 20 Group Format - Performance Incorporated (An ADP Company) Description: This is an organized format to help dealers with operational expertise. It will allow our minority dealers to learn from industry professionals and other dealers. - Three meetings per year in the 20 group format ( Platform for Adopt a Dealer ) - Share Best Practices - Operational Excellence - Increased Profitability - Goal Setting Execution: Delivered by a professional moderator with extensive automotive experience. Audience: CMDA Only Polk Cross Sell™ New Vehicle Report Description: Helps dealers Increase revenue through more effective inventory management ► Grow market share by monitoring the competition & identify areas of opportunity ► Decrease costs with increased marketing efficiency Execution: Communicated monthly and reviewed via conference call for all minority dealers. MarketMaster Description: Helps Dealers maximize sales by focusing their marketing efforts on lost sales opportunities ► Identify brand/product performance versus key competitors ► Provides a comprehensive view of local trends, demographics, sales and cross-sell information Dealer Standards – Minority Dealers Description: Drives operational and customer excellence. Total funding by Chrysler Group on the minority dealers behalf.

10 CHRYSLER GROUP LLC MarketMaster™ identifies incremental sales opportunities © 2009 Urban Science Customized market analysis report which: Helps dealers maximize sales by focusing their marketing efforts on lost sales opportunities Identifies brand/product performance versus key competitors Provides a comprehensive view of local trends, demographics, sales and cross-sell information Available via hard copy or PDF Customized tailored to brand and segments against competitive set Customized tailored to brand and segments against competitive set Focused zeros in on specific product opportunities versus competitors Focused zeros in on specific product opportunities versus competitors Insight target sales efforts to areas with greatest potential Insight target sales efforts to areas with greatest potential KEY BENEFITS:

11 CHRYSLER GROUP LLC MarketMaster™ Details © 2009 Urban Science What is it? MarketMaster™ is a customized market analysis report that evaluates vehicle sales opportunity at the Chrysler dealer Trade Zone (TZ) level. Objective? The objective MarketMaster™ is to Maximize Chrysler Sales Opportunities. The purpose of this report is to provide each dealer with tools that assist in quantifying incremental sales opportunities. This is achieved through a step-by-step approach. How does it work? Once the market and dealership’s TZ are identified, the next step is to begin to understand the key characteristics of the market. In this process, MarketMaster™ identifies geographical areas, within the TZ, offering possible incremental sales opportunity. To capture this sales opportunity the dealer may need to take necessary marketing actions to realize the full potential that is available. MarketMaster™: ► Pinpoints locations with incremental sales opportunities ► Provides detailed cross-sell analysis of dealers into Trade Zones (TZ) ► Identifies competitors’ performance within the market area ► Assists in highlighting trends and changes in TZ competitive sales and demographics ► Quantifies sales opportunities by model and/or vehicle line

12 CHRYSLER GROUP LLC 12 Dealer Standards Customer Care Standards Exceeding Customer Expectations & Loyalty Promoting Efficient Sales Processes After Sales Standards Achieving Service and Parts Targets Sales Standards Management Standards Foundation in Place For Success - Customer Advocacy ► Service Convenience, Repair Accuracy, Resolution Process - Retail Oriented ► Retain and Grow Customer Base, Market Driven - Repair Quality ► Quality Assurance, Right repair tools - Customer focused processes - Supports all brands and products - Marketing aligned to regional and national themes - Achieves volume and share targets - Facilities that will meet customer needs and represents our brands - Staff that is trained - Capital and financing to support the business - Respect for dealership employees - Listening and responding to their needs and wants - Promptly responding to the phone and internet inquiries - Providing what they ask for - Resolving their problems and concerns

13 CHRYSLER GROUP LLC 13 RETAIL SERVICE DEVELOPMENT PLANNED GROWTH OF COMMERCIAL VEHICLE SALES Capitalizing on market opportunities FLEET BUSINESS – STATE BIDS Overcome Challenges: - Customer Convenience - Independent Shops Overcome Challenges: - Trained Staff - Service Hours to Meet Business Owners Needs Overcome Challenges: - Learning the process - Customer Service FIAT 500 Goes on sale in December 2010 Will attract a new customer base Key metro markets Select dealers in the country Specific branded salon

14 CHRYSLER GROUP LLC Diversity Network Consolidation CJDR = 97 CD = 1CJ = 9 D = 6 (86%) (1%) (8%) (5%) Dothan CD * CJ of Ann Arbor Galeana * Denotes there is no * Dothan CD * CJ of Ann Arbor Galeana facing dealer * Freedom CJ Sport DT facing dealer * Freedom CJ Sport DT * Bertera CJ * Courtesy Mtrs * Bertera CJ * Courtesy Mtrs Greater Mobile CJ University DT Greater Mobile CJ University DT Hollywood CJ Rainer DT Hollywood CJ Rainer DT Galeana CJ * Gresham DT Galeana CJ * Gresham DT Chase CJ Chase CJ * Town & Country CJ Miami Lakes CJ * Town & Country CJ Miami Lakes CJ 14 Project Genesis - Low Throughput - Declining Franchise Attractiveness - Inadequate Profits - Lack of Reinvestment - Higher Throughput / per location - Increased franchise attractiveness - Enhanced Profits - Provides sound base for Dealer Reinvestment Issues: Outcome: Project Genesis is 86% Complete; full implementation by 2011CYE CJD = 100% by year-end 2011

15 CHRYSLER GROUP LLC Adopt a Dealer ( Peer to Peer ) 15 “Information is only power when it’s shared” Matched up based on KPI’s ( March 1 st ) - Volume, Profitability, Geography Encourage you to develop a relationship Collaborative Learning & Growth Performance Improvement Plans In-dealership visits Corporate Assistance: Business Management Analysis Training & Development Market Studies ( Market Master ) Best Practice Sharing Highlighted each month in the Diversity News

16 CHRYSLER GROUP LLC Increased Network Diversity Representation 16 2011 Diversity Targets

17 CHRYSLER GROUP LLC Community Service & Cultivating Diversity 17 Network RepresentationEmployee BaseCommunity InvolvementTrade AssociationsNAMADCommunity Service

18 CHRYSLER GROUP LLC 18 Network Diversity & Dealer Development Building A Stronger Retail Channel Top 10 Focus Factors:


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