Understanding the Context
In a high volume industry, many of today’s automotive manufacturers face strong market volatility. The management of industrial and commercial tools is therefore a constant challenge. Developed markets’ industrial overcapacities, due to gloomy economic times, have instigated ferocious price wars under tight profitability constraints. On the other spectrum, fulfilling demand spikes in emerging markets is difficult due to production limitations which in turn requires constant adjustment of commercial offers to align offer and demand while maximizing margin.
In this tense environment, after-sales activity becomes a very powerful lever in order to achieve desired short-term profitability levels, distribution network size and to amortize the cost of acquisition/ loyalty of new vehicle buyers.
While main automotive players focus on the reduction of fixed costs through the formation of strategic partnerships with competitors, we offer complementary axes of performance, most notably in the mastering of fixed and variable costs and the optimization of client strategies.
Using a macro-economic approach, the optimization of the automotive marketing mix (from media to discount) represents a powerful lever for the optimization boost of results. This approach guarantees the fulfilment of various objectives including : 1- recapturing of market share and protecting of volumes ; 2- preservation of the operational margin.