network diversity & dealer development building a stronger retail channel 2011 game plan marcus...
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Network Diversity & Dealer Development Building a Stronger Retail Channel
2011 Game Plan
Marcus A. ForemanManager, Network Diversity & Dealer Development
CHRYSLER GROUP LLCNetwork Diversity & Dealer Development
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• Minority Dealer Update
• 2010 Year In Review (Accomplishments and Initiatives)
• 2011 Game Plan
CHRYSLER GROUP LLC
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42344115
3997 38923749
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2352 2314 2371
134137 136151
171184
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105113 113
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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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
CHRYSLER GROUP LLC
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Chrysler Group LLC. ( U.S. Dealer Network )
Non-CMDA Dealer
CMDA Dealer
CHRYSLER GROUP LLCNetwork Diversity & Dealer Development
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• 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% ownership
• Minority Dealer count thru February 28th is 113
46 (41%) are CMDA Dealers
• Minority Dealers : 4.8% of our Dealer Count
Represent 7.0% of the total Sales Volume
CHRYSLER GROUP LLC
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Network Diversity & Dealer DevelopmentBuilding A Stronger Retail Channel
Top 10 Focus Factors:
CHRYSLER GROUP LLCCommunication Initiatives
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CHRYSLER GROUP LLC
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Dealer Candidate Development ( DCD )
GoalPlace 3–5
Candidatesinto dealerships
Number #1 Goal: Find more diversity talentWe’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
CHRYSLER GROUP LLCPerformance 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.
CHRYSLER GROUP LLCMarketMaster™ 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
Customizedtailored to brand and
segments against competitive set
Focusedzeros in on specific
product opportunities versus competitors
Insighttarget sales efforts to areas with greatest
potential
KEY BENEFITS:
CHRYSLER GROUP LLCMarketMaster™ 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
CHRYSLER GROUP LLC
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Dealer Standards
Customer Care Standards
Exceeding Customer Expectations & Loyalty
Promoting Efficient Sales Processes
After SalesStandards
Achieving Service and Parts Targets
SalesStandards
ManagementStandards
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
CHRYSLER GROUP LLC
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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
CHRYSLER GROUP LLC
Diversity Network ConsolidationCJDR = 97 CD = 1 CJ = 9 D = 6
(86%) (1%) (8%) (5%)* Denotes there is no *Dothan CD *CJ of Ann Arbor Galeana
facing dealer *Freedom CJ Sport DT
*Bertera CJ *Courtesy Mtrs Greater Mobile CJ University DT
Hollywood CJ Rainer DT
Galeana CJ *Gresham DT Chase CJ
*Town & Country CJ Miami Lakes CJ
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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
CHRYSLER GROUP LLC
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Adopt a Dealer ( Peer to Peer )
“Information is only power when it’s shared”
• Matched up based on KPI’s ( March 1st ) - 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
CHRYSLER GROUP LLCIncreased Network Diversity Representation
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2011 Diversity Targets
2010 Total Dlrs
Minority Dlrs
% Minority Dealers
(Memo) Minority
Population %
Total Dlrs Thru
January 2011
Total Minority Dlrs Thru January 2011
% Minority Dealers2011 CJDR
Targets2011 FIAT Targets
2011 Total Target
Shortfall
Denver 315 11 3.5% 18.0% 315 11 3.5% 2 2 4 (4)
Great Lakes 308 8 2.6% 18.4% 308 8 2.6% 2 3 5 (5)
Mid-Atlantic 254 7 2.8% 28.0% 254 7 2.8% 3 2 5 (5)
Midwest 309 7 2.3% 25.7% 309 6 1.9% 3 2 5 (5)
Northeast 286 5 1.7% 32.9% 286 5 1.7% 3 2 5 (5)
Southeast 300 17 5.7% 35.5% 300 17 5.7% 3 4 7 (7)
Southwest 311 23 7.4% 46.3% 311 23 7.4% 4 3 7 (7)
West 228 35 15.4% 49.1% 228 34 14.9% 5 7 12 (12)
NATIONAL 2,311 113 4.9% 34.6% 2,311 111 4.8% 25 25 50 (50)
BUSINESS CENTER
Network Diversity Target ObjectivesYE 2010 January 2011 - YTD
CHRYSLER GROUP LLC
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Community Service & Cultivating Diversity
Network Representation
Employee Base
Community Involvement
Trade Associations
NAMAD
Community Service
CHRYSLER GROUP LLC
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Network Diversity & Dealer DevelopmentBuilding A Stronger Retail Channel
Top 10 Focus Factors: