Snapshots

Snapshots of interesting challenges/opportunities involving our company and employees

Getting the BIG Picture: perception, reality, and what's important to prospects and buyers

Opportunity

Change the US western region ($1.1 billion in revenues and 77 BMW dealerships) from selling cars off the lot to pre-selling cars to order. (Increase inventory turnover.)
Discontinue emphasis on cheap leases and focus communication message on overcoming obstacles to purchase.

Bottom-line

Went from last place in inventory turnover to first place: 56 day supply to a 16 day supply in 3 years.
Doubled dealer operating profit
Highest market share in the country, largest increase, and outsold all other competitive brands.
Dealer profitability 38% higher than any other BMW Region.
Highest brand awareness, advertising recall and overall opinion of any BMW region, as well as of any competitive brand within the region.

It's going to be sold out so why should I promote it?


The Mercedes-Benz M-Class was much more than just a new product launch. It established Mercedes-Benz as not just a brand which built "The Best Car in the World," but also as one which built "A Car for Me." The launch was carefully planned to powerfully establish the M-Class, to drive demand in years two, three and beyond; not just at launch.

Opportunity

Successfully prepare Mercedes Benz, the dealers and the public for the launch of the M-Class sport utility vehicle.

Bottom-line

Profitability beyond most optimistic forecast ($300 million in incremental profit).
Nearly doubled the originally forecasted sales volume ( from 25,000 units to 40,000 units)
USA Today car editor quoted as saying, "Mercedes redefines the sports utility."

Building the Land Rover Brand

See Harvard Base Case: LAND ROVER NORTH AMERICA (LRNA) (Case no 9-596-036)

Opportunity

Help transform a loose group of luxury car dealers selling Range Rovers into a franchise of Land Rover Retailers.
Create the auto industry's first variable holdback program to boost dealer profitability enough to justify dealer investment in the Land Rover Franchise.

Building New Land Rover Centres

» View PDF of Article (878k)

Bottom-line

700% revenue growth for Land Rover in the U.S.; from $150 million to $1.2 billion.
Franchise transformed a loose group of luxury auto dealers into profitable, stand-alone Land Rover Centers.

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