1. PartsHorizon2020: Mandatory backbone for K-TSK presentation
Final Draft
PartsHorizon2020: Mandatory backbone for K-TSK presentation
Hannover, 13th May 2014
04/05/2018
Volkswagen Group Polska

2. Assumptions for turnover calculation
Topic
- Details -
Baseline
some of the activities planned within PH2020, have been already considered within PR62, therefore the baseline turnover is underneath the PR62 turnover
Used assortment
Genuine Parts, incl. Warranty
Tyres
Miscellaneous
2013 –VGP systems integration – implementation of the Kopfsparte allocation methodology
2014 – change in the allocation methodology – from Kopfsparte to Singlesparte
2014 – Seat - New Brand in portfolio
Baseline Volkswagen PKW
Due to the change of the common parts allocation methodology (Kopfsparte to Singlesparte) VW PKW had a budget adjustment
The baseline of VW PKW is based on the new budget which is about 20. Mio PLN higher than PR62
Car Park
Source POLK
Multi brand approach coordinated by K-VO-SR
Price step
All turnovers calculated in nominal figures (Inflation rate included)
04/05/2018
Volkswagen Group Polska

3. Car Park development 2013-2018 Premise: Age of vehicles ≤15 years
Source: - POLK new estimation method (VWN, Audi, Seat, Skoda)
- POLK historical estimation method (VW Pkw)
04/05/2018
Volkswagen Group Polska

4. Baseline:. Baseline turnover (in PLN)
Baseline: Baseline turnover (in PLN) Baseline turnover per car (in PLN)
Premise:
turnover only domestic market
only genuine parts & tyres (incl. Warranty; excl. Oil and accessories)
04/05/2018
Volkswagen Group Polska

5. PR62 – Baseline (in PLN) Turnover (in PLN) Time 04/05/2018
Volkswagen Group Polska

6. Actions PartsHorizon2020: Pricing
Brand
- Details -
Pricing VW
Implementation of Market Intelligent Pricing
Price Image Campaign development
Reports, analysis & planning, aftersales market study (STS, MIS Aftersales) development on brand level
VWN
cMIP implementation
Price image campaign with Economy parts packages (seg. 2&3)
Audi
Brand specific price strategy: Price optimization according to brand value, customer value expectation and OEM/OES/IAM price studies; specific focus on premium models & brands
Price studies on elasticity and profit optimization (e.g. discount groups / rush & stock discounts)
Ongoing analysis of brand and grey market competition
SEAT
SKODA
Price study: STS
Group
Reporting and analysis of aftersales market and parts pricing studies
Appointment of Aftersales Business Analyst to provide insight analysis, reporting to the brand and factory
Development of market competitive Fleet Package Pricing - ensure consistency and transparency of pricing to fleet customers (fleet)
Market price study as a solid base for price definition
Implementation of new pricing concept (Market oriented price tool - Simon&Kucher) (excl. AOT)
Create attractively priced offers for new vehicle customers to support customer loyalty based on certain assortment (own / fleet)
Special pricing to retain used vehicle / Segment II and III customers (own)
Exploitation of price potential of „monopoly parts“
04/05/2018
Volkswagen Group Polska

7. Actions PartsHorizon2020: Own Workshop
Brand
- Details -
Own Work-shop VW
Loyalty increase:
Extended Warranty
S&M Packages development
Segment II&III increase:
Service Offensive
Economy Parts development & implementation of PPS
Development of Direct Express concept
Market exploitation & turnover per throughputs increase
Active Selling implementation (2014) & CRM approach for marketing campaigns + predictive marketing (automated reminder program for service, MOT, etc.)
Increase sales potential per throughput with direct reception development (new tools & system solutions needed)
Development and implementation of Service app for smart phones
Unfall Spezialist – Concept implementation
VWN
Development of Direct Express workshops
Service Packages to retain new and used vehicle customers
Loyalty program for service customers
Development of FF team responsible for VWN After Sales and support for dealers business of one add. Person (total 3 FF’es for 71 Service Partners)
Roll out of predictive marketing - automated reminder program for service, MOT, etc.
Service packaging
Audi
Customer loyalty increase via increasing sales of Extended Warranty and Audi Service and Maintenance Packages (either linked to new vehicles sales at the dealer and linked to workshop visit)
Keeping AOT purchase exclusivity concept
Professionalization of Audi Workshop appearance, processes and performance via mobile solutions for Direct Reception process (iPads concept)
Establishing Body & Paint centers in strategic market areas focus especially on Audi aluminium repairs
PPS - Service Segment II/III: “One price for the job”, Season campaigns, Service and Accessories offers in Audi Magazine; development and promotion of sell-out activities: e.g. exhaust test, periodic review , seasonal check (winter / summer), etc.,
CRM – system: Implementation in Service, Audi Insight, Audi App., use of predictive data to optimize market penetration, activities by sending service reminders or re-book at service visit
04/05/2018
Volkswagen Group Polska

8. Actions PartsHorizon2020: Own Workshop
Brand
- Details -
Own Work-shop
SEAT
Extended Warranty implementation on country standard level
Service Packages implementation
SEAT Insurance implementation
SEAT Connect application
Roll out of predictive marketing - automated reminder program for service, MOT, etc.
Development and implementation of Service app for smart phones
SKODA
Price image campaigns with economy price packages,
4+ discounts program supported by importer
Implementation of Direct Reception process
Supporting IT tool for service process (Digital Check-in – Health Check)
CRM approach for central and local marketing campaigns (Automated Sales chances)
Skoda Care products launch with VW Bank (extended warranty, Insurance and re-launch of S&M Packages)
CA Package launch
Marketing of Service app for smartphones
Group
Ensure implementation and further development of new product range „Economy parts“ (depending on launch of new product groups from the factory)
Development and implementation of Accident Management concept, incl. Unfall Spezialist concept to increase customer loyalty
Development and further implementation of product for repair financing together with VW Bank
Product groups analysis and intensive follow up by field forces
Full implementation and further development and optimization of E-mobility concept/business
Coordination of implementation of digital solutions for service process
Implementation of full package pricing
04/05/2018
Volkswagen Group Polska

9. Actions PartsHorizon2020: Fleet
Brand
- Details -
Fleet VW
Fleet loyalty program – AutoTeam Fleet development:
Fleet Business/Service Center implementation,
Measures development: unified labour rate, oil strategy, discount rules connected with volume targets
Incorporate of small fleet customers to the program
Mobility offer & services (i.e. door to door) development – main competitive advantage on fleet service market
Increase number of fleet customer in program and service revenue by more active acquisition & maintaining relations
VWN
Auto Team Fleet Platform and further development of the platform
Audi
Service Maintenance Program implementation for Audi fleet customers (including IT solution)
Develop and promote actively customized Fleet Service products
Definition and implementation of loyalty measures for insurance and lease companies
SEAT
Service Fleet Program development
SKODA
Service Program for fleet - further development
Simplify legal solution, new discount rules, oil price strategy based on VW Group branded oil, semi automated authorization process,
New IT tool Fleet Connect with CRM support for fleet and fully automated authorization process
Group
Development of market competitive Fleet Package Pricing - ensure consistency and transparency of pricing to fleet customers
Create and implement a framework that can be marketed to fleet customers by the Brands
04/05/2018
Volkswagen Group Polska

10. Actions PartsHorizon2020: NORA
Brand
- Details -
NORA VW
VWN
Offer for parts transport between dealers and Nora customers
Special offer for delivery car purchase for Nora customers
Audi
SEAT
NORA business model implementation in SEAT service network
SKODA
Group
Development and implementation of regular reporting system for retail network
Re-definition of NORA concept to support further market exploitation (e.g. NORA Centers)
Optimization of NORA bonus conditions
Implementation of consistent auditing process of NORA business
04/05/2018
Volkswagen Group Polska

11. Actions PartsHorizon2020: Tyres
Brand
- Details -
Tyres VW
VWN
Audi
SEAT
Fixed tyres seasonal campaign
Extended tyres offer
SKODA
Full implementation of group programs
Group
Development and implementation of regular reporting system for retail network
Development of marketing activities
Market and potential analysis of tyre business
Joining the central tyre business project
Tyre storage
Tyre insurance
Tyre Etka
04/05/2018
Volkswagen Group Polska

12. Additional turnover of PartsHorizon2020 actions (in PLN) (1/2)
04/05/2018
Volkswagen Group Polska

13. Additional turnover of PartsHorizon2020 actions (in PLN) (2/2)
04/05/2018
Volkswagen Group Polska

14. Turnover incl. PartsHorizon2020: Total turnover (in PLN)
Additional turnover vs. Baseline (in PLN)
Additional turnover vs. PR 62/Budget (in PLN)
04/05/2018
Volkswagen Group Polska

15. PR 62 vs. Baseline vs. PartsHorizon2020
Turnover (in PLN)
Time
04/05/2018
Volkswagen Group Polska

16. Turnover incl. PartsHorizon2020: Total turnover (in PLN)
Additional turnover vs. Baseline (in PLN)
04/05/2018
Volkswagen Group Polska

17. Turnover per car Baseline vs. Parts Horizon2020
PLN
Group Ø
PLN
VW Pkw
PLN
VWN
PLN
AUDI
PLN
SEAT
PLN
SKODA
PH2020
Baseline
04/05/2018
Volkswagen Group Polska

18. Requirements NSC: Additional Headcounts (organizational correlation) (1/2)
x field force level
x specialist level
04/05/2018
Volkswagen Group Polska

19. Requirements NSC: Additional Headcounts (organizational correlation) (2/2)
x field force level
x specialist level
04/05/2018
Volkswagen Group Polska

20. Financial result: NSC level (in PLN) (1/2)
04/05/2018
Volkswagen Group Polska

21. Financial result: NSC level (in PLN) (2/2)
04/05/2018
Volkswagen Group Polska