Geomarketing in the Automotive Industry by Frédéric Neumager – Discovery 2019

Geomarketing in the Automotive Industry by Frédéric Neumager – Discovery 2019


hello my name is collect namazi I’m coming from a whole new corporate network division and we built an application with web show service or web show services I don’t remember if they are there is Ness with working also with the geographical here so I will present you how we use one tool so I will not be I will not make many developments about the technical issues but how we use it from a business point of view I’m not again yes okay so let’s say you do it or I’ll do it this one a problem okay so I’m going to give you a quick overview of why do we need no marketing tool and this kind of technologies we are a group since this morning we are not married with Fiat so this group has six brands without Nissan Alliance we say we sold nearly four million cars last year and we have more than 13,000 outlets big ones small ones in many countries and what we want to do is we want to optimize them we want to optimize locations we want to take into account several considerations the first one is customers customers want to find outlets to buy cars or to service cars nearby so they want to have many many outlets but investors on the contrary they don’t want to have so many outlets they want to have profitable ones so few ones big outlets and with a good margin and although I say yes or no group has a company we have also our own objectives like the brand stand out signage and in the end volumes so we have several stakeholders several that said needs to take into account in the end we have also different objectives in Spain we saw last year nearly 200 thousand cars in Australia we sold 10,000 cows we have several brands we have Alpine cows here we have two outlets in Spain and 100 outlets we have more than 50 550 so geolocation optimized location is really different depending upon brands and objectives so we built a tool but it has to be a very practical tool because we have to demo 20 33 37 countries operational and we are planning planning to have more so our our need is to have one unique common tool which works for 37 countries with data sets which are reliable in 37 countries it’s always easy to find data for Spain for France and Germany the stake for us is to have data in Malaysia in Argentina Russia China South Africa everywhere to have one unique tool for one unique company so we need to have of course every everything that was said this morning about data clean the clean that are reliable data and so on we face it everywhere and we also have the need to have also local teams because as I am a corporate manager I’m in charge of defining tools methods but I will not analyze a 50 country territorial coverage or I will not define optimal location everywhere so we have teams in countries and the stake is to have one common tool training for everybody and knowledge and transfer know-how transfer to have let’s say skilled teams using the tool everywhere so we have to the spreading of the knowledge is a very important element for us in the drama cutting strategy oh yes so when we talk about data we have many times let’s say geographical or administrative boundaries like that with the socio demographic data like population wealth and so on but in the end we have to find also more precise more accurate data to refine our analysis of territory coverage in the end we want to be where people are so sometimes we need to have additional data sets like this ones to be able to calculate the coverage and the objective to be sure that the potential that we meet is corresponds to the the business that we want to do for and it really depends upon countries and upon brands we are now new in China for instance we have a company which name is a Jinbei and in China you have to be near the population but what does it mean when you have more than 1 billion people so we need to have first to know where we are and we need to define a real precise strategy in order to have the right network rightly position near customers and not overlapping themselves because sometimes you have empty areas with potential and several outlets in the same vicinity so data is really really important for us so the tool that we have now I’m not going to do a demonstration just to show you in 3 parts Maps to show results results and configuration panel in the end there was a lady this morning we talked about excel in the end everybody everything finishes with Excel because if I tell the Nigerian guy that the outlet is not well situated that he should delete it and replace it somewhere else as it represents one two three four not in Nigeria but in some countries five million euros investment it’s not with a nice map that I will convince anybody so we have to have nice maps to present and to do analysis we have to have calculations of KPIs key performance indicators and in the end we have to do deep dive when we want to convince investors or countries that they have to change things to create outlets to delete outlets so so yes we use also this review it’s always impressive for anybody when we discuss with Argentina for instance to know and to talk about the same element and to identify outlets and so on so this one is very much appreciated so I’m going to talk about KPIs key performance indicators for the business we have defined four main kept eyes and in the Renault Company we defined we we share their we share them when it’s a worldwide company like us like ours one of the difficulties is to have unique indicators unique index shared by all business entities so in this one we have these so numbers we have to have proportionate networks we have to have networks which are if we have 10% of the dealers in one country we hope to do at least 10% of the sales if we have 10% of the dealers and we do 15% of the cells then we are more efficient than the competition if we have 10% of the dealers and do only 5% of the sales in the country we are less efficient than others so we discuss with our countries on based on these elements and we try to optimize other locations numbers of outlets coverage because as in nearly all businesses you know in marketing you will learn about the 4p price positioning place and promotion and the place place place hit this one we have to be where the people are were the people buy their cars or their service so territory coverage is a real issue for us and we have to dimension networks which are rightly a dimension for that one and of course we need to limit overlap we have countries with many many outlets all outlets are in the same city so this is not optimum even if the business is in the city in one city say in some countries like Colombia you have nearly 40% of the market in Bogota so you have to be in Bogota bottom in Bogota so you have overlap which is acceptable by us and overlap which is not which we discuss with our countries so basically for just an example of what we have in in our tool to discuss with our countries and to talk about to talk with them about how they should optimize their network so we can go here it’s a European example but when we go into Austria we have the same figures in Belgium the same figures by province and by cities in order to have a shared understanding of kpi’s whether there are outlet count coverage of a lab and drive time this is what also example of one of the discussion that we may have in France with our national horses company and when you have to optimize a network so for instance this example would say that in Brittany which is west of the country you have less than six minutes to go to a Renault dealer because in France we have nearly four thousand dealers and it’s up over seven minutes in the Toulouse area so it’s up to the original directions to analyze this and to define if locally it’s a good Drive time objective or not depending upon the commercial objectives they have okay coverage these are examples of let’s say local City analysis we have one outlet we can analyze it 10 15 30 minutes isochron area and to define if the potential in this area is correct or if it has to be optimized and in each area we also identified competition with this you give commercial objectives to your network if one dealer has one competitor is commercial objective in market share will be higher than if he is in the center of Madrid with the 30 competitors around so we understand that we give them objectives also depending upon the competition depend in and we use this kind of maps to analyze local competition and to define objectives one other issue also is to define where there is a potential so in this case what we would say is there are areas in the country in a region in a district where there is a potential not yet covered by you know it can be all know that she are in that and so on so in this area we have locations or the locations we have potential the potential can be population it can be purchasing power depending upon countries for instance in South Africa they don’t talk about population they don’t put outlets in Soweto in ghettos they put outlets where there are is money in Brazil the same no outlets in favelas outlets where there is money in other countries most of the time population and wealth correspond so here we have to identify and the tool helps us to identify areas where there seems to be a potential so after that we have to analyze if we can create a service outlet or sales outlet whatever for hanno for that and so on and to have a profitable activity in this in this place overlapping yes so why don’t we like up overlapping because overlapping means internal competition if you are a customer you have to if you want to buy oh no you will go to the next outlet and you will ask for a rebate you will go to the other outlet and you will asked for another rebate so we will compete internally to give you the best price which is not optimum for us from a margin point of view this is not optimal so I either we we talk with one another to not to give you the higher rebates and to keep our margin higher either we don’t do it if the two outlets belong to the same investor we can manage the situation if the two our class belong to a and B investors they will want to do the sale and they will give you big rebates so this is why we don’t like overlapping and we try to limit it but sometimes it is necessary in this example sometimes one could do sells the other could do after size only so in this case no competition but we have cases of internal competition which we want to limit when I say that many things end with Excel files this is one example of this one so here we have only Europe results and only at country level this is an example of let’s say global reporting when we rank networks when we rank evolutions and when we talk with our countries about that we say ok let’s say in Austria we have we have we have we have this v network in number of outlets the the Delta here means that it is the same position as before the coverage we are also v so same more or less same performance and we cover 98% of the population in Australia and we gained two ranks so this one is okay but for instance here in Switzerland we lost one rank so it’s not very complicated we still cover 97% of the population but in Europe it’s more or less like that but in other countries you have to to propose a network which which which has a good efficiency if we lose ranks sometimes it is because we did’t heed outlets so it’s normal to lose coverage but sometimes when we don’t do anything the competition does so if competition does better than us then it we lose some ranks in the end nobody really cares about geo marketing in itself what we do care about is associated cells so if we are less close to customers than other brands as proximity is one of the key factors to go to one dealer we may lose some customers so and in the end we lose turnover margin so this is why we are we are so interested in these two marketing KPIs and this is one of us the examples we give to our countries so using the tool analyze in your country where you have good and bad performance so where is the lowest network coverage in your country what we expect them to do is to identify the regions where the coverage is lower and to to do deep dive and disease and to increase if necessary and if profitable coverage in this region the same for after sales a high drive time is bad for us because high drive time if you if you have to do 30 minutes to go to service your oh no you won’t do it you will go to a competition if you have to do 15 minutes then it’s okay most of the time you are not ready to drive a long time to do some operations you ready most of the time to drive that up to 30 40 minutes to buy a car because you do it every 5 or 7 years but to service your car you do it sometimes once or twice per year so you don’t you you really don’t want to drive to do too long overlapping outlets it is one of the issue that we have with our countries we ask them to identify overlaps and in the end to justify them if overlapping is not justified then please did it outlets it can be justified and also other export and so on which network is ranked first for some kpi’s because as in most of businesses we have let’s say competitors favored competitors sometimes we follow one brand in one country and we try to do that this is the target so we have to either to follow it or we have to if we are beyond them we try not to be I don’t know if you say it in English but to be rejoined like that and efficiency this is one thing that we thought that I just talked briefly before efficiency we have really issues about that we have one country where Methodist sells as many vehicles as we do they have 50 outlets and we have 250 outlets so there was a new sales director you arrived in this country and the network development manager had a very good time to justify why he needs 250 outlets where a Mercedes needs only 50 so the career of the lower guy is not very flavouring but no this is really very something like that you if you have to if you want to have a profitable Network this is a trade-off between number and volumes so number of outlets we try to have as few as possible outlets but corresponding to let’s set the customer needs to customer wants to have a high number we want to have a low number so it’s a trade-off and an equilibrium to find between them them okay so this was my presentation if you have questions [Applause]


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