Xiamen Honda 4S: Capturing Marketing Insight

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

2. CASE SUMMARY MAIN ISSUEPROBLEM STATEMENTSANALYSIS OF SOLUTION ALTERNATIVE RECOMMENDATION

3. China Automobile Sales System China Automobile Sales Growth Automobile Suppliers CASE SUMMARY – CHINA AUTOMOBILE MARKET Automobile Brand Dealers

4. REQUIREMENTS • 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 • Automobile General Distributor • Corporate status • Written authorization of an automobile maker & particular distribution rights of automobiles • Professional automobile marketing capabilities 4S: a sales service shop serving four function CASE SUMMARY – CHINA AUTOMOBILE MARKET

5. Xiamen, located in southeast Fujian on China’s southeastern coast. Land Area 1,575.16 square kilometers Sea Area 300 square kilometers 2009 data: 2.52 million registered residents 25.24 million tourist arrival 2009 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 CASE SUMMARY – XIAMEN AUTOMOBILE MARKET

6. Personal Financial Situation Tax Reduction XIAMEN PURCHASE PATTERN Occupation & Social Status Opinions Advertisement Direct Discount Reduction of Automobile Usage Fees Equipment / Interior Decoration/Maintenance/Insurance CASE SUMMARY – XIAMEN AUTOMOBILE MARKET PURCHASE DECISION FACTORS

7. Price Range US$ 26,000 – 41,000 Best Selling SUV 2009 Sr. White collar employees Mid Level corporate Managers Private Business Owner A/I US$ 30,000 – 44,000 Redistributed to 2 dealers Price Range US$ 16,000 – 26,000 White collar employees Marketing & After sales CASE SUMMARY – XIAMEN HONDA 4S SHOP Self-employed people Private Business Owner A/I US$ 22,000 – 30,000

8. Main Business Dept . CASE SUMMARY – XIAMEN HONDA 4S SHOP PROFILE

9. Sales INCOME CASE SUMMARY – XIAMEN HONDA 4S SHOP PROFITABILITY MODEL

10. MAIN ISSUES

11. 1. Xiamen Honda Income Generated : Sales & After Sales MAIN ISSUES 2. Low Income at After Sales Service Department 3. Lack of Coordination between two main profit center

12. Customer Loss Rates • Below Customer Expectation • Third party Contract MAIN ISSUES

13. PROBLEM STATEMENT

14. INTERNAL EXTERNAL ANALYSIS

15. ANALYSIS PRODUCT VALUE

16. MARKETING METHODS ANALYSIS

17. ANALYSIS

18. 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 RECOMMENDATION Accept the proposal

19. 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 customer This modification strategy will increase long life/ intimacy and customer satisfaction RECOMMENDATION Xiamen will follow the suits

20. 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 RECOMMENDATION COST EFFICIENCY STRATEGY