Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration on Marketing Initiatives
January 2017
84
About the Report
About the Report
The report titled "Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration on Marketing Initiatives" provides a comprehensive analysis of premium car exchange market in India. The report covers total car sales for premium brands and car sales through exchange and exchange contribution. The report thoroughly covers organizational structure for the team involved in exchange process with their detailed analysis on sourcing, qualifications, trainings and salary. The report also covers customer interface for car exchange business with types of advertisement for car exchange as a part of promotional activities. The regions and cities which works well for premium car exchange business has been showcased in the report, along with the compliance and norms followed by companies for car exchange. The report provides coverage on quality check list, average ownership period, discount bonus on car exchange and assured buy back offers for car exchange in India.
This report helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for premium car manufacturers, authorized and unauthorized used car dealers, service centers, online portals and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Organisational Structure (Dealer and Company Level)
At the dealer level, pre-owned car sales manager, executives and evaluators are the ones who manage exchange operations, while at the company level, the sales head is the governing authority which surpasses the discounts and promotion policies for exchange and regulates the exchange operations for the dealers. The organizational structure is similar for almost every luxury car exchange company namely Audi, BMW and Mercedes.
Sourcing, Qualification and Salary (Dealer and Company Level)
The sourcing, qualification and training methods adopted at the company level and dealer level are similar for the premium car brands including BMW, Audi and Mercedes. The sourcing of the Sales head who oversees the exchange operations is appointed through succession planning internally. Annual CTC for the Sales head at the company level tends to be under the range of INR ~ million- ~ million, which varies depending upon the experience and knowledge. However, at the dealer level the evaluators are appointed directly through dealers, while the pre owned car sales executives and manager are appointed by the company.
Training of Personnel
The regular training is provided by the sales head at the dealer level, while an orientation program is organized at the company level. For the personnel at higher designation including sales and marketing executives, the company also organizes trainings to update them about new product and specifications. Regular training programs for sales and procurement personnel are conducted to ensure the efficacy of sales personnel. For this, employees in pre owned and new sales are sent to their overseas training centers in Germany. For the soft skills training at the dealer level, an outsource team is appointed which organizes training at a particular center, where the participants has to appear.
Customer Interface for Exchange
The mode of communication for the car exchange at the dealer level is made through below the line advertisement (BTL) and direct communication with the customer. Once the customer visits a dealer showroom, the sales consultants entertain the potential client and inform him about the car exchange process if the client is interested to purchase a newer car. To make the car exchange more lucrative, the dealer also offers additional exchange discounts to the customers who are interested to exchange their existing car to buy a newer one.
Exchange Contribution to Overall Sales
Audi India: During 2014, the company launched a separate pre owned department for Audi named as Audi Approved plus, which was responsible to handle the car exchange and pre owned cars business. Hence, the sales of Audi through exchange have grown robustly to ~ during 2015, with a share of exchange reported at ~%.
Mercedes India: Mercedes among all the luxury car makers has reported highest share in car exchange across the years 2010-2015. The share of car sales through exchange has grown from ~% during 2010 to ~% in 2015. Mercedes has relatively higher growth of exchange business primarily due to highest exchange bonus amount which are passed to the customers.
BMW India: The car exchange business for BMW is not much popular as the share has just been reported at ~% during 2015.
Average Ownership Period for Premium Car Brands
In India, there has been a substantial reduction in the ownership cycle of vehicles. Roll out of new car models, inclining personal disposable income, lucrative car exchange offers and assured buy back schemes launched by car companies has diminished the car ownership period. Earlier, the average ownership period for premium cars were estimated to be around ~ years which has now reduced to ~ years.
Key Topics Covered in the Report:
- Organizational Structure for Exchange Team
- Sourcing, Qualifications and Salary for Employees in Car Exchange Department
- Training of Personnel
- Customer Interface for Car Exchange Business
- Inclusion of Exchange in Promotional Activities
- Exchange Contribution to New Car Sales, CY’2010-CY’2015
- Exchange Facility Visibility for Major Luxury Car
- Which Regions/ Cities work well for exchange offers
- How Car Exchange Process Works for Luxury Car Companies
- Compliance and Norms Followed by Companies for Exchange
- Customer Perception of the Experience Provided during Exchange Process
- Quality Check List for Car Exchange
- Certification Process for Old Cars
- Average Ownership Period for Premium Car Brands
- Discount Bonus on Car Exchange and Eligibility
- Assured Buy Back Offers for Premium Car Brands
- Analyst Recommendations
Products
Products
Premium Car Exchange, Hatchback, Sedan
Companies
Audi, BMW, Mercedes
Table of Contents
Table of Contents
1. Executive Summary
Organisational Structure (Dealer and Company Level)
Sourcing, Qualification and Salary (Dealer and Company Level)
Training of Personnel
Customer Interface for Exchange
Inclusion of Exchange in Promotional Activities
Exchange Contribution to Overall Sales
Exchange Facility Visibility
Which Regions/ Cities work well for Exchange Offers
Exchange Process Adopted by Luxury Car Companies
Compliance and Norms Followed by the Companies for Exchange
Customer Perception of the Experience Provided during Exchange Process
Analyst Recommendations
2. Appendix
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
Company Sales Approach-Luxury Car Exchange Market
Limitations
3. Organizational Structure for Exchange Team
3.1. Company Level
3.2. Audi-Dealer Level
3.3. BMW-Dealer Level
3.4. Mercedes-Dealer Level
4. Sourcing, Qualifications and Salary for Employees in Car Exchange Department
4.1. Company Level
4.2. Dealer Level
4.2.1. Audi Dealer
4.2.2. BMW Dealer
4.2.3. Mercedes Benz Dealer
5. Training of Personnel
5.1. Company Level
5.2. Dealer Level
6. Customer Interface for Car Exchange Business
7. Inclusion of Exchange in Promotional Activities
7.1. Company Level
7.2. Dealer Level
8. Exchange Contribution to New Car Sales, CY’2010-CY’2015
8.1. Audi India
8.2. Mercedes Benz India
8.3. BMW India
9. Exchange Facility Visibility for Major Luxury Car
10. Which Regions/ Cities work well for exchange offers
10.1. Audi India
10.2. Mercedes Benz India
10.3. BMW India
11. How Car Exchange Process Works for Luxury Car Companies
12. Compliance and Norms Followed by Companies for Exchange
12.1. Audi India
12.2. Mercedes India
12.3. BMW India
13. Customer Perception of the Experience Provided during Exchange Process
14. Quality Check List for Car Exchange
15. Certification Process for Old Cars
16. Average Ownership Period for Premium Car Brands
17. Discount Bonus on Car Exchange and Eligibility
18. Assured Buy Back Offers for Premium Car Brands
19. Analyst Recommendations
19.1. Offer Exchange Bonus/Incentive to Attract Customers
19.2. Stipulate Targets for Car Sales Through Exchange
19.3. Allocation of Advertisement Expenditure to Promote Exchange
19.4. Focus on Tier 1 Cities to Promote Exchange Business
19.5. Align the Car Valuation to the Second Hand Car Sales Market
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List of Figure
Figure 3-1: Organizational Structure for Exchange and Sales at Company Level
Figure 3-2: Organizational Structure for Audi at Dealer Level
Figure 3-3: Organizational Structure for BMW at Dealer Level
Figure 3-4: Organizational Structure for Mercedes at Dealer Level
Figure 8-1: Audi Overall New Car Sales in India in Number of Units, 2010-2015
Figure 8-2: Audi New Car Sales through Exchange in India in Number of Units, 2010-2015
Figure 8-3: Mercedes Benz Overall New Car Sales in India in Number of Units, 2010-2015
Figure 8-4: Mercedes Benz New Car Sales through Exchange in India in Number of Units, 2010-2015
Figure 8-5: BMW India Overall New Car Sales in India in Number of Units, 2010-2015
Figure 8-6: BMW India New Car Sales through Exchange in India in Number of Units, 2010-2015
Figure 9-1: Mercedes Benz Dealer Showroom Showcasing Lack of Advertisement on the Walls
Figure 9-2: Mercedes Benz Dealer Showroom Showcasing Billboards for New Car Promotions
Figure 9-3: Audi Dealer Showroom Showcasing Lack of Advertisement on the Walls
Figure 9-4: BMW Dealer Showroom Showcasing Billboards for New Car Promotions
Figure 9-5: BMW Catalogue with Dedication on New Car Model and Specifications
Figure 10-1: Regional Exchange Sale of Audi Cars in India on the Basis of Number of Units in Percentage (%), 2015
Figure 10-2: Regional Exchange Sale of Mercedes Cars in India on the Basis of Number of Units in Percentage (%), 2015
Figure 10-3: Regional Exchange Sale of BMW India Cars in India on the Basis of Number of Units in Percentage (%), 2015
Figure 11-1: Car Exchange Process Adopted by Luxury Car Companies
List of Table
Table 2-1: Sample Composition for Market Sizing Approach
Table 3-1: Responsibilities and Team Size for Employees at Company Level
Table 3-2: Responsibilities and Team Size for Audi Employees at Dealer Level
Table 3-3: Responsibilities and Team Size for BMW Employees at Dealer Level
Table 3-4: Responsibilities and Team Size for Mercedes Employees at Dealer Level
Table 4-1: Sourcing, Qualifications and Salary for Employees in Car Exchange/Sales Department at Company Level
Table 4-2: Sourcing, Qualifications and Salary for Employees in Audi Car Exchange Department at Dealer Level
Table 4-3: Sourcing, Qualifications and Salary for Employees in BMW Car Exchange Department at Dealer Level
Table 4-4: Sourcing, Qualifications and Salary for Employees in Mercedes Benz Car Exchange Department at Dealer Level
Table 5-1: Training Methods of Personnel by Different Car Companies (Audi, BMW and Mercedes Benz) in India at Company Level
Table 5-2: Decision Making Process to Shortlist Corporate Training Company by Automobile Manufacturers with Parameters and Weightage in Percentage (%)
Table 5-3: Training Methods of Personnel by Different Car Companies (Audi, BMW and Mercedes Benz) in India at Dealer Level
Table 7-1: Total Marketing and Advertisement Expenditure by Major Luxury Car Brands in India on the Basis of Share in Net Revenues in Percentage (%), FY’2015
Table 10-1: Regional Variations and Description in Car Exchange Business for Luxury Car in India
Table 10-2: Regional Exchange Sale of Audi Cars in India on the Basis of Number of Units, 2015
Table 10-3: Audi Car Sales through Exchange in India, City Wise as a Contribution of Overall Audi Car Sales in Percentage (%), 2015
Table 10-4: Regional Exchange Sale of Mercedes Cars in India on the Basis of Number of Units, 2015
Table 10-5: Mercedes Car Sales through Exchange City Wise as a Contribution of Overall Mercedes Car Sales in Percentage (%), 2015
Table 10-6: Regional Exchange Sale of BMW Cars in India on the Basis of Number of Units, 2015
Table 10-7: BMW Car Sales through Exchange in India as a Contribution of Overall BMW Car Sales in Percentage (%), 2015
Table 11-1: Car Exchange Process of Major Luxury Car Brands (Audi, Mercedes and BMW) in India
Table 13-1: Decision Making Factors that Determine Car Exchange Decisions
Table 14-1: Quality Check List Followed by Premium Car Evaluators for Car Exchange Process
Table 16-1: Average Ownership Period for Premium Car Brands in India
Table 17-1: Discount Bonus on Car Exchange and Eligibility for Premium Car Brands
Table 18-1: Procedure for Buyback Schemes for Premium Car Brands in India
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