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E.N.G. Automotive Retail & Distribution Amsterdam March 24, 2015 E.N.G. Automotive Retail & Distribution Amsterdam - March 24, 2015

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Page 1: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

E.N.G. Automotive Retail & DistributionAmsterdam

March 24, 2015

E.N.G. Automotive Retail & DistributionAmsterdam - March 24, 2015

Page 2: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

The future is here:Experience the benefit of real-

time data and monitoring of theused car market, used car pricesand performance of your dealer

network

Jörg HöhnerGlobal Managing Director – INDICATAAUTOROLA GROUP HOLDING

Page 3: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

AUTOROLA GROUPGlobal leader in online remarketing and automotive IT solutions

Page 4: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

NO TRIVIAL CHANGETransformational impacts throughdiscruptive technologies

Page 5: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

NO TRIVIAL CHANGEMajor trends changing consumer buying patterns

The internet empowersconsumers

Smartphones and tabletsare game changers

Consumers take theirhomework seriously

Targeted researchresults influence buying

decisions

WWW

Page 6: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

77% 58% 37% 34%

CLASSIFIEDAD/LISTINGSITES

SOCIAL MEDIA CONSUMERREVIEW SITES

OEM/DEALERSITES

NO TRIVIAL CHANGETop online research sources for used vehicles

Page 7: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

“The real voyageof discoveryconsists not inseeking newlands, but inseeing with neweyes.”

-- Marcel Proust

Page 8: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

Classified Sites

Dealer Sites

OEM Sites

REAL-TIME INSIGHTSReal-time data to monitor market dynamics

Page 9: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

REAL-TIME INSIGHTSTrack price changes for a single vehicle and competition

Page 10: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

OEM• Monitor and Optimize

Dealer NetworkPerformance

• Protect and IncreaseResidual Values

DEALER• Optimize used car

operations• Increase stock turn

FLEET• Live Portfolio Value

Analysis

REAL-TIME INSIGHTSWho can benefit from real time insights

Page 11: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

MARKET DAYSSUPPLY

PRICE TOMARKET

INVENTORYAGE

PRICINGSTRATEGY

STOCKTURN

MARKETSHARE

REAL-TIME INSIGHTSKPIs to guide used vehicle operations success

Page 12: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

Ratio showsthe strengthsof therelationshipbetweensupply anddemand.

It is NOTaverage

stock days.

MarketDays

Supply

MAIN KPI: MARKET DAYS SUPPLYMeasures the relationship between supply and demand today

Page 13: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

NEW KPI: MARKET DAYS SUPPLYHow can Market Days Supply help protect residual values?

Avoid adding morevolumes in a marketalready saturated

Know when and howto price according tomarket changes

VolumeDistribution

PricingStrategy

Page 14: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

Pric

e / M

arke

t %

Time

RATIONAL PRICING STRATEGYWhat it should look like...

Page 15: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

1 0 0 %

1 0 0 , 5 %

1 0 1 %

1 0 3 %

6 . 8 0 0

E U R 8 8 M

GERMAN PREMIUMMANUFACTURER

JAPANESE VOLUMEMANUFACTURER

EUROPEAN VOLUMEMANUFACTURER

1 0 3 %

1 0 3 %

1 0 4 %

1 0 5 %

3 . 3 0 0

E U R 1 2 0 M

9 8 %

9 9 , 5 %

1 0 1 %

1 0 3 %

1 . 7 0 0

E U R 2 2 M

1 - 3 0 d a y s

3 1 - 6 0 d a y s

6 1 - 9 0 d a y s

9 1 + d a y s

v e h i c l e s

1 0 0 % v a l u e

ACTUAL PRICING STRATEGYWhat it actually looks like...

Page 16: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

Attractive carspriced too low

Identify network dealers whoconsistently price below the

market

Identify network dealerswithout “rational” pricing

strategy

Know when Market DaysSupply is in your favour

„Discount“ dealers Fresh inventorypriced lower than old

Attractive cars pricedtoo low

ACTUAL PRICING STRATEGYTop 3 dealer pricing strategies undermining your RV

Page 17: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

„DISCOUNT“ DEALERSIdentify network dealers who consistenly price below the market

Page 18: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

FRESH INVENTORY PRICED LOWER THAN OLDIdentify network dealers without a ”rational” pricing strategy

Page 19: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

ATTRACTIVE CARS PRICED TOO LOWKnow when Market Days Supply is in your favour

60 daysM A R K E T D AY S S U P P LY

Page 20: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

GERMAN PREMIUMMANUFACTURER

JAPANESE VOLUMEMANUFACTURER

EUROPEAN VOLUMEMANUFACTURER

1 - 3 0 d a y s

3 1 - 6 0 d a y s

6 1 - 9 0 d a y s

9 1 + d a y s

INVENTORY AGEMinimize the profit harming effects of increased market volatility

24%

13%

13%

50%

28%

15%

12%

45%

29%

18%

13%

40%

Page 21: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

USED CAR MARKET SHAREImprove the profitability of your used car operations

Benefit:Dealer network profitabilityIncreased service, financing,spare parts, etc.

Risk:Low market shareYour pricing is beingdetermined by thecompetition

Page 22: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

OEM/NSC DASHBOARDTrack and monitor the performance of your dealer network

Page 23: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

BEST PRACTICESImprove the performance in your used vehicle operations

Monitor yourdealer networksused carperformance

Make dealernetwork pricingstrategy aprimary focus.

Identify andtrain dealers notaligned withyour RV strategy

Keep the dealerinventory fresh

Monitorcompliance withcertified usedcar program

Page 24: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

ARE YOU READY TO GET YOURDEALER NETWORK TO PROTECTYOUR RESIDUAL VALUES?

Then visit us at our booth andget a demo and a free trial ofINDICATA.

Page 25: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final

CONTACT

Page 26: Indicata e.n.g. automotive retail & distribution joerg hoehner 24032015 final