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					DEALERSHIP MANAGEMENT
    BEST PRACTICES




        2011 ROAD Convention
        Moscow, Russia
               25 26th,
        August 25-26th, 2011
                           Company Profile

• Operations in 17 states and 3 countries
   p
   • 2nd largest auto retailer in the U.S.
• 327 franchises:
   • U S – 172
     U.S.
   • International – 155
• 15,000 employees
• Publicly traded on NYSE: PAG

                                         2
                                          Best in Class Brand Mix
(% of Total Revenue)

                                  5%           2%
                                                         12%
                                                                    Other
                         23%                                         3%


                                                                            3%


               2%
                                                                            11%

                    2%
                                                                       5%

                           12%
                                                               9%
                                 5%       1%
                                                    5%

•   Premium/Luxury – 68%              •   Volume Foreign – 27%
                                                      g                •    Domestic – 5%

     6M 2010                                                                         3
                                                           Franchise Mix

                 Represent 42 Different Brands
                                                    U.S.      Intl.   Total
BMW Group                                            18       37          55
VW GGroup                                            24       30          54
Toyota Lexus                                         37       13          50
Daimler Group                                        21       20          41
Honda Acura                                          27        2          29
Chrysler Jeep Dodge                                  12       15          27
Jaguar Land Rover                                     2       19          21
Ferrari Maserati                                      6       12          18
Nissan Infiniti                                       7       ―            7
General Motors                                        6       ―            6
Aston Martin                                          2        2           4
Other (Ford, Hyundai, Lamborghini, McLaren, etc.)    10        5          15
    Total                                           172       155         327
                                                                      4
                           Worldwide Revenue


                                 68%
   61%
                    39%                      5%

                                       27%



          U.S.                  Premium
           International        Volume Foreign
                                Domestic
6M 2010                                          5
                                                     U.S. Revenue

                   United States
                    158 Franchises
                                                       52%

                                                                 7%

                                                       41%



                                                       Premium
    States with PAG Dealerships      Puerto Rico       Volume Foreign
                                     14 Franchises
                                                       Domestic
6M 2010                                                           6
                                International Revenue

                   U.K.
          143 Franchises


                                      92%
                                                        7%
                                                        1%
                 Germany
               12 Franchises
             2 Joint Ventures




                                       Premium
                                       Volume Foreign
                                       Domestic
6M 2010                                                 7
                                          6M Highlights
                                                   Units

    •    Retail units increased +10%
                                                           140,657
                                                           140 657

                •   New           +5%     127,876


                •   Used        +17%

•       Total revenue increased 13%
                        to $5.7 billion       Revenue


                •   New         +12%                       $5.7B
                                           $5.0B
                •   Used         19%
                                +19%

                •   F&I         +14%

                •   S&P           +7%                                8
                    Mercedes-Benz of Fairfield

2010 AUTOHAUS INVESTMENT – $2.8M



                                Car Showroom
                             35 C Sh
                                    16,000 Sq. Ft.




     ays Service ac ty
 33 Bays Se ce Facility
       55,000 Sq. Ft.


                                                     9
                     Mercedes-Benz of Fairfield




                           AMG Performance Center
                             One of only 26 in the US




 Five-Time Winner of the
       Prestigious
    Mercedes-Benz
“Best of the Best” award

                                                  10
              Mercedes-Benz of Fairfield


    VISION:
OUR VISION
             customer s
  Become the customer’s car company
  for life.


OUR MISSION:
             py
  To be "simply the best” automotive
  retailer experience.

                                       11
         Mercedes-Benz of Fairfield

      Business Model
  Mercedes-Benz of Fairfield


 SYSTEMS AND PROCESSES

   HUMAN CAPITAL MOST
    IMPORTANT ASSET

SALES TOOLS AND MARKETING
        STRATEGIES

CUSTOMER LOYALTY THROUGH
  CUSTOMER SATISFACTION

 STRONG FOUNDATION FOR A
LONG TERM BUSINESS GROWTH
                                 12
       Mercedes-Benz of Fairfield




CONFRONT THE REALITY…

 Analyze and understand
      p
  the problems to find
    THE SOLUTIONS.


                               13
                 Mercedes-Benz of Fairfield

 STARTING POINT

• One-on-one interviews with every employee
     Understand their needs – “How can they
     become more efficient and more
        d ti ?”
     productive?”

 RESULT

     Create written step-by-step manual
     outlining dealership processes and
     procedures

                                              14
             Mercedes-Benz of Fairfield

 …the
“…the bulk of the causes of low
 quality and low productivity belong
 to the system and thus lie beyond
 the power of the workforce…”

“…a bad system will beat a good
              time.”
 person every ti   ”

                     W. Edward Deming


                                        15
                Mercedes-Benz of Fairfield

Get to know your people


   Learn their strengths and weaknesses

   Evaluate their compatibility with their job
   functions

   Ensure that the right people are in the
   right positions



                                             16
             Mercedes-Benz of Fairfield



"People are definitely a company’s
 greatest asset. It doesn't make
   y
 any difference whether the
 product is cars or cosmetics. A
 company is only as good as the
 people it keeps."
                           Mary Kay Ash


                                     17
              Mercedes-Benz of Fairfield


Grow Your Business
  Sales & Marketing tools

  Creative Marketing

  Interdepartmental Cross-Promotions
  (between Sales and Service)

  Customer Loyalty through Customer
  Satisfaction



                                       18
              Mercedes-Benz of Fairfield


 SALES & MARKETING TOOLS
• What  do your salespeople and
 service advisors need to succeed?
 Give them a toolkit that helps
 them out during every step of the
 sale. Outfitting your front line with
       g                          y
 the right tools is critical to your
 company's success.

                                      19
              Mercedes-Benz of Fairfield


CRM
• Customer   Relationship Management (CRM)
 software is about giving your employees
 an easy-to-use information system they
 needd    to
          t    serve    andd     h
                               enhance    th
                                          the
 relationship    with   your    customers    -
 including potential customers (leads).     It
 It starts by having all the customer and
 lead    information    at   the   fingertips,
 including quotes, orders, phone call notes,
 emails, projects - everything.

                                            20
            Mercedes-Benz of Fairfield

AutoAlert




                                    21
        Mercedes-Benz of Fairfield

vAuto




                                22
          Mercedes-Benz of Fairfield

MONTHLY SALES AND DELIVERY LOG




                                  23
              Mercedes-Benz of Fairfield

Marketing Strategies
• Marketing is an integral part of making it
 big.

• You may have the ingenious product in the
     ld but h t' the     i t          't find
 world, b t what's th point if you can't fi d
 the market for it? Without a market, a
 product is as good as dead. Every small
 business has to engage in aggressive
 marketing, if it aims to reach its best
 potential.  Most    naive    entrepreneurs
 believe that marketing takes a lot of
 money and it is only meant of giant
 business organizations. NO!                24
       Mercedes-Benz of Fairfield

www.FairfieldMercedes.com




                               25
       Mercedes-Benz of Fairfield

 PRE-OWNED VEHICLE ON
www.FairfieldMercedes.com
www FairfieldMercedes com




                               26
         Mercedes-Benz of Fairfield

ONLINE REPUTATION MANAGEMENT




                                 27
        Mercedes-Benz of Fairfield

SEARCH ENGINE OPTIMIZATION




                                28
     Mercedes-Benz of Fairfield

INTERNET ADVERTISING




                             29
               Mercedes-Benz of Fairfield
   MONTHLY
E-NEWSLETTER




                                       30
     Mercedes-Benz of Fairfield

GRASSROOTS MARKETING




                             31
         Mercedes-Benz of Fairfield

BUILD A REPEAT & REFERRAL
         BUSINESS




 Front                Back


                                 32
Mercedes-Benz of Fairfield


       CROSS-PROMOTIONS




                        33
   Mercedes-Benz of Fairfield
CROSS-PROMOTIONS




                           34
            Mercedes-Benz of Fairfield




PRESS RELEASE




                                    35
 Mercedes-Benz of Fairfield

IN THE NEWS




                         36
              Mercedes-Benz of Fairfield



 GIVING BACK TO
YOUR COMMUNITY




                                      37
  Mercedes-Benz of Fairfield


SOCIAL MEDIA




                          38
         Mercedes-Benz of Fairfield


INTERDEPARTMENTAL
  CROSS-PROMOTION

•Sales feeds Service




•Service feeds Sales
                                 39
           Mercedes-Benz of Fairfield
YTD Pre-Paid Maintenance Penetration
      Dec. 2010 MBUSA Report




                                       40
     Mercedes-Benz of Fairfield
WEEKLY NEWSPAPER ADS




                             41
  Mercedes-Benz of Fairfield




RESULTS

                          42
        Mercedes-Benz of Fairfield

YEAR OVER YEAR PERFORMANCE
   Dec. 2009 MBUSA Report




                                43
                   Mercedes-Benz of Fairfield

 YOY Performance MBUSA Report
    Through December 2009


                                SUMMARY

   FAIRFIELD, CT


                      YTD09     YTD08     ‘09 vs '08 Δ

Dealer                   842        784      7.4%
                                             7 4%

Market 03              11,505   13,974      -17.7%

Area A                 34,118    41,863     -18.5%

Northeast Region      60,408     70,552     -14.3%

National              189,877   225,128     -15.3%
                                                         44
                    Mercedes-Benz of Fairfield

   YOY Performance MBUSA Report
      Through December 2010


                                 SUMMARY
    FAIRFIELD, CT


                       YTD10     YTD09     '10 vs '09 Δ

Dealer                  1,081
                        1 081       842      28.4%
                                             28 4%

Market 03               14,193    11,505     23.4%

Area A                  41,802    34,118     22.5%

Northeast Region        72,632    60,408     20.2%

National               215,492   189,877     13.5%
                                                          45
                            Mercedes-Benz of Fairfield

                  2010 / 6M 2011 RESULTS


New Vehicles Retailed – 28.4% over 2009 / 12.6% over 2010 (6M 2011)

Pre-Owned Vehicles Retailed – 29.3% over 2009 / 29.8% over 2010 (6M 2011)

Total Labor Sales - 10.2% over 2009 / 11.4% over 2010 (6M 2011)

Total Parts Sales - 12,1% over 2009 / 18.7% over 2010 (6M 2011)

Total Revenue – 28.2% over 2009 / 12.5% over 2010 (6M 2011)

Net Pre-Tax Income – 84.2% over 2009 / 28.2% over 2010 (6M 2011)

Total Dealership Employees – 85

                        4.03
Employee Satisfaction – 4 03 (on the scale from 1 to 5)

Employees Turnover – 10% (one of the lowest in PAG)



                                                                            46
             Mercedes-Benz of Fairfield



“Let the systems run the business, and
make sure the right people run the
                  g    p p
systems. This lays the foundation for
sustainable growth, even in the most
             g     ,
challenging economies.”



                            A.
                       Eric A Ferits

                                     47
Mercedes-Benz of Fairfield




Q&A

                        48
             Mercedes-Benz of Fairfield

   c     e ts
Eric A. Ferits
General Manager
Mercedes-Benz
Mercedes Benz of Fairfield

Offi    1-203-368-6825
Office: 1 203 368 6825
        1 646 250 0740
Mobile: 1-646-250-0740
Email: EFerits@penskeautomotive.com



                                      49

				
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