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Motor Trade
The Background to this project What Mungo Dunnett Associates delivered What were the benefits to the business of carrying out this project

What Mungo Dunnett Associates delivered

Evaluation of existing sales performance, commission structure and interaction between teams: 

Recommended alteration to salesmen’s package and working procedures, so that teams have joint targets, incremental sales are encouraged, and activities are rewarded where they contribute directly to bottom-line profit, not top-line turnover

Recommendations for creation of more enthusiasm amongst the salesforce, and toning down of company ‘control culture’ where it is impacting sales performance and profit


Pricing improvements in car finance department: 

Recommendations for creation of robust pricing model, to ensure that elasticity of demand is fully understood, and the optimal point between profit margin and sales volume is found


Evaluation of marketing expenditure:

Recommended process for ensuring marketing contributes to sales (not simply ‘awareness’)

Recommended improvements to type of marketing activities undertaken, and their design


Customer research: 

Recommended process to establish why customers buy; which marketing activities they are influenced by; and why existing customers buy elsewhere 


Retention strategy:

Recommended strategy for contacting and retaining customers in danger of leaving

Based on creating a ranking of existing customers in terms of their individual profitability

Targeted at the point when they are most likely to consider buying elsewhere

Including testing and evaluation of loyalty offers and promotions

Marketing support to expansion programme: 

Recommended marketing strategy for successful launch in large new city market 


Organisational structure: 

Recommended alterations to departmental incentives, to alter existing situation where separate ‘fiefdoms’ compete unhealthily against each other, and ensure that new sales, used sales, car finance, parts, service, rental and contract hire are each incentivised to focus on overall group profit

 
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