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Xiamen Honda 4S: Capturing Marketing Insight. MM UGM Executive B – 26 B: Group 1 Arifin Joyodiguno Bayu Wicaksono Adhi Wita Puspadila. CASE SUMMARY MAIN ISSUE PROBLEM STATEMENTS ANALYSIS OF SOLUTION ALTERNATIVE RECOMMENDATION.

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xiamen honda 4s capturing marketing insight
Xiamen Honda 4S:Capturing Marketing Insight

MM UGM Executive B – 26 B: Group 1

Arifin Joyodiguno

Bayu Wicaksono Adhi

Wita Puspadila

case summary main issue problem statements analysis of solution alternative recommendation
CASE SUMMARY MAIN ISSUEPROBLEM STATEMENTSANALYSIS OF SOLUTION ALTERNATIVE RECOMMENDATION
case summary china automobile market
China Automobile Sales System

China Automobile Sales Growth

Automobile Suppliers

CASE SUMMARY – CHINA AUTOMOBILE MARKET

Automobile Brand Dealers

case summary china automobile market1
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
case summary xiamen automobile market
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
case summary xiamen automobile market1
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

case summary xiamen honda 4s shop
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

main issues1
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

main issues2
Customer Loss Rates
  • Below Customer Expectation
  • Third party Contract
MAIN ISSUES
analysis1
ANALYSIS

PRODUCT VALUE

recommendation
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

recommendation1
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

recommendation2
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

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