ACCELERATING ACCESSORY SALES PROFITS.

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1 1 CASE STUDY MSXI ACCESSORY SALES EXCELLENCE SOLUTION ACCELERATING ACCESSORY SALES PROFITS. fueled by challenge. powering success. sm

2 2 TURNING ACCESSORIES INTO A COMPETITIVE ADVANTAGE. A global volume manufacturer engaged MSXI to develop and implement a comprehensive Accessory Sales Excellence Solution for their European retail network in order to improve their market position, increase network and brand loyalty and to develop new accessory distribution channels. The result has been a measurable increase in retail sales and profitability. MSXI ACCESSORY SALES EXCELLENCE because of their high profit margin. The fact is, SOLUTION HELPS GLOBAL VOLUME a retail model that includes accessory sales MANUFACTURER MEASURABLY INCREASE both increases profitability and is vital for THEIR RETAIL SALES AND PROFITABILITY helping automotive dealerships communicate EUROPE-WIDE. their value to potential and existing customers. Traditionally, automotive companies have In 2007, a global volume manufacturer focused almost exclusively on vehicle marketing engaged MSXI to strategically implement a and sales. However, in light of declining vehicle sales accessory excellence solution for their sales and changing customer purchasing habits retail network across virtually all of Europe. OEMs have taken a strong interest in upgrading MSXI applied its unparallelled automotive and enhancing accessory sales and not only competencies to assess key performance Studies show that 80% of accessory purchases take place at the time of purchase of a new vehicle. This underlines our strategic viewpoint that accessory sales is a vital component of the sales process rather than being positioned in an after sales strategy. indicators, responsibilities and day-to-day practices in order to find an optimal, cost-effective and easy to implement solution. MSXI then supported the pan-european roll-out of this accessory sales project, focusing on the improvement of accessory sales skills, the enhancement of promotion and marketing activities and the upgrading of dealer processes with reinforced cooperation between the OEM and its dealers. MSXI also provided the sales staff with regular product training so that they could better educate customers about how accessories contribute to the overall driving experience as well as motivating them to be proactive in their sales approach. The solution, which is still in place today, is supported by a constantly evolving marketing toolbox and MSXI dedicated consultancy support.

3 3 MSX INTERNATIONAL FROM STRATEGY TO IMPLEMENTATION. MSX International The first stage of the MSXI strategy involved an in-depth review of the following six areas within the OEM s sales environment in order to optimize the growth potential for the OEM: Product Promotion Price People Placement Process Product: Optimize the portfolio, develop top sellers Promotion: Implementation of running marketing campaigns Price: Communicate rounded, all-in prices incl. fitment & VAT Accessory Sales Excellence Program Environment People: Set up sales incentives and offer sales coaching Placement: Accessory sales at all customer touch points Process: Improve communication between sales, service and parts

4 4 MSX INTERNATIONAL FROM STRATEGY TO IMPLEMENTATION. PHASE 1 : Kick-Off Program Presentation Kick off contract signature Accessory Champion Nomination Sales report presentation Gap analysis Module 1 PHASE 3 : Training & coaching Product training Sales Coaching Marketing campaigns follow-up Gap analysis Module 3 PHASE 2 : Implementation Dealer internal process Competition analysis Marketing campaigns Sales tools & Measurement Gap analysis Module 2 PHASE 4 : Sustainment Marketing campaigns follow-up Training & Coaching Set-up sales targets Gap analysis Module 4 Program Closing contract Creation of a clear planning process between parts, service and sales so that dealers always have the accessories they need in stock (graphic: service installation / parts ordering / sales selling A comprehensive accessory sales toolbox that includes a detailed action plan for the MSXI field force and a variety of PoS and marketing materials such as a bundled accessory pack per vehicle model in order to simplify the sales process OUR COMPREHENSIVE PROGRAM INCLUDES THE FOLLOWING COMPONENTS: A four step program that includes a detailed strategic assessment, followed by networkwide, interdepartmental implementation program and the setting up of long-term sales targets. All four steps of the program include an audit / assessment in order to ensure measurability. A dedicated field force responsible for creating the right internal processes and communication channels, providing dealers with the right marketing tools and support, individualized training, implementing measurement tools and evaluating performance Assignment of KPIs for every marketing and sales initiative as well as annual project assessments comparing markets as well as dealerships within markets Identification of an accessory champion within the dealerships to take responsibility for leading the project on a local or regional level Interactive and highly individualized accessory sales training focused on developing a new, shared understanding of customers needs and behaviors, improving their product knowledge, matching the right accessory to the right customer and improving sales conversations and negotation skills Our proprietary, web-based technology tool Track IT, which drives field force management, generates web-based auditing and action plan reports and tracks the effectiveness of marketing campaigns

5 5 TRANSFORMING INSIGHTS INTO IDEAS. Several numbers underline the fact that MSXI has the competence to strategically develop an accessory sales excellence program that is implementable and successful as well as being cost efficient and tailored to manufacturer needs: Implementation time for a pan-european accessory sales solutions is 8-12 days within a 12 month period thus not unduly disrupting daily business processes and resulting in an ROI of 200% More than 700 sites have successfully participated in the program 60-70% of all new vehicles sold within the retail network were sold by dealers in the accessory sales excellence program exceeding our KPI defined target Customer loyalty ranges from 0-90% across Europe and we created a successful strategy that reflects this diversity TURNING ACCESSORIES INTO LONG TERM REVENUE The MSXI Accessory Sales Excellence program has now been in place for five years with continued success. After the first 12 months of the program, MSXI shifted from a standard rate to a pay-for-performance model. In addition to consistently meeting our KPI objectives, we have also been able to develop several new initiatives in cooperation with the OEM, including: The initiation of a sales incentives in order to motivate salespeople to sell accessories The introduction of a cost competitive accessory, which effectively closed the price gap with the thrid market competition. It positively influenced customer buying behavior to the extent that most customers now purchase this accessory from the dealer, thus increasing traffic and sales revenue The development of an accessory together with the OEM which was incorporated on to a new model, making it more attractive The development of best sellers and the provision of up-to-date product portfolios to dealers MSXI understands the relationships between departments in a retail network but we also have the tools, guidelines and processes which are necessary for a cost effective and rapid implementation.

6 6 THE SOLUTIONS EXPERT FOR THE AUTOMOTIVE INDUSTRY. MSXI provides a broad range of solutions for all aspects of the automotive retail industry. Individual solutions can be adapted and / or combined to create the best possible answer to your business challenges. Objective: Dealer Solutions Improve Dealership Profitability Technical Solutions Provide Technical Expertise Warranty Solutions Reduce Warranty Costs Managed Service Provider Optimize utilization of contract labor Technical Staffing & Recruitment Process Outsourcing On demand talent delivery Technical Platform: MSXI Dealer MSXI Connect MSXI Wire b2b buyer 04 / 2014 Service Programs: Aligned Customer Framework (ACF) Customer Satisfaction Dealer Training Lead Management Retail Compliance Sales Excellence Service Excellence Technical Publications Technical Training Technical Helpdesks Technical Pre-approval Technical Field Forces Warranty Audit Warranty Assessment Warranty Process Improvement Warranty Pre-Approval Warranty Analysis Warranty Training Supply Management Program Management Comprehensive Reporting Timesheets & Invoicing Risk Mitigation Diversity Development Contract Labor Permanent Placement Recruitment Employee Retention Strategies Sourcing Technology On-boarding/ Off-boarding MSX International is a dedicated supplier of services to the automotive industry. With more than 70 years of experience and over 5,000 industry experts in 52 countries, we have a thorough understanding of local, national and international markets. We use our experience and expertise to provide business solutions that make your business more efficient. From consulting to outsourcing, regardless of whether you are an automotive / truck / motorcycle OEM, dealer, supplier or aftermarket service organization if it s automotive, we can help you make it better. fueled by challenge. powering success. sm CONTACT:

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