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Old 3rd June 2014, 12:05   #16
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

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Originally Posted by Mr.Boss View Post
Adding the Contributing factors
Pardon my ignorance, but I'm trying to understand each of the contributing factors in better detail. I've put down what I could gather to my best. All are welcome to add/correct as appropriate:

1. Training
This could either mean training given to salesmen or to service engineers or both. Is there anything more involved here?

2. Warranty claims
This could mean either the promptness with which a manufacturer responds to warranty claims or it could mean the rate at which warrany claims are honored. Either way, I'm trying to understand how the dealer stands to gain/lose from this since AFAIK, dealers simply play an intermediary role between the end customer and manufacturer. For e.g. if warranty claims are consistently rejected by a certain manufacturer, the end result could be loss of customer goodwill. Many dealers dont care much for that anyway and both dealer and manufacturer continue to thrive with that attitude. So does this really matter (a) to dealers and (b) from the point of view of this survey?

3. After sales team
I suppose #2 is a function of the after sales team and in that sense, there is a significant overlap. What else does this consist of?

4. Sales and marketing activities
5. Sales team
Cant differentiate between these two. Does this mean sales and marketing activities as performed by the manufactures' sales and marketing team? Possibly building awareness, advertising etc? What else? How are these different from a dealer standpoint and more importantly, how do they separately affect a dealership?

6. Parts
As in easy availability of spares?

7. Product
As in the quality/popularity of the product? Anything else?
(IMHO if a dealer does not think very high of the product he's selling, they should just get out of that business and start selling what they think better of. Blaming the manufacturer for this while continuing to keep the dealership does not seem to make much sense. In my little experience I've never come across a dealer so virtuous that they can comment on the product itself... )

8. Vehicle ordering and delivery
Meeting orders on time and to required specs? As in timely delivery for the odd order for a high-end when the 99% of sales are coming in from low-end+mid or slow moving colors etc?

9. Support from the manufacturer
I suppose this is covers almost every previously listed factor. Why is it mentioned separately?
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Old 3rd June 2014, 18:46   #17
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

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Originally Posted by smartcat View Post
As expected, there is high correlation between how well the company is doing (profitability, sales & market share) and dealership satisfaction.
In terms of market share Toyota is way behind in the bread and butter car segment and in terms of volumes too they are far behind when compared to Maruti or Hyundai. But see the dealer satisfaction, they are on top, there seems to be no co-relation as you have indicated.

If there was a survey about staff, factory worker and customer satisfaction, I can bet on anything that Toyota would win with absolutely flying colours.
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Old 4th June 2014, 08:30   #18
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

The whole concept of why a layer of inefficiency called "dealer" is introduced between manufacturer and end-buyer=customer, is alien to modern processes from supply-chain onwards. It is high time we are enabled by manufacturers to buy motor vehicles direct online, then we select which dealer we want for PDI, which agent we want for registration and thence onwards which service centre we want for warranty and repairs. To that, add the "Right to Repair" aspect, and ready to rock and roll!

Why we as customers are paying for dealer's real estate and holding costs is unknown to me if all I want is a simple bike or car with an EMI that is less than the cost of an air-ticket!!
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Old 5th June 2014, 16:35   #19
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Related article from The Economic Times:

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According to the findings of Frost & Sullivan, four key steps are needed to improve the viability of dealers, if taken in concert with car makers can significantly improve viability.

The steps include managing vehicle inventory efficiently - that is to maintain stock of 20-30 days only. Constantly monitor dealers' business health - having monthly and quarterly reviews with the dealers.

And monitor network expansion - appoint new dealers only after having prior discussion with existing dealers and offer existing dealer to expand first.

And lastly offer viability support during business slowdown like increasing sales margins, offer interest free credit for 28 days, support manpower cost.

V G Ramakrishnan, MD - Frost & Sullivan South Asia says while upturn in business cycle will positively impact on network profitability, structural changes have a long term impact on network viability, these solutions apart from helping dealers profitability will also benefit OEM's in building committed business partners when growth returns".

Just by managing inventory efficiently, dealers can gain about 1% margin, and if all the four steps are implemented by the car makers and dealers, the margins of Indian dealers that averages at 2.5-3% of the value of the car could easily double.
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Old 5th June 2014, 16:57   #20
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

I think there is a specific reason why the big T is at the top.

Coming from a quality oriented company most of our training materials are based from Toyota concepts - TPM TQM 6Sigma (though started by someone else), etc etc... their emphasis on man over machine, people over process is directly reflecting in these #s. Their rigor at which every Question is followed with a set of 5W1H (why where what who when how) and drilling it down to 32 (IIRC) levels ensures some of the best practices in the global auto industry.

Kudos - if only they can replicate it by bringing in 1 hot hatch and 1 alto beater!! sigh!
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Old 8th June 2014, 13:12   #21
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Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

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Originally Posted by isiv View Post
All are welcome to add/correct...
Nobody? Sad.

Mods: I know this post does not add value, and will most likely get deleted; but I only wish to express my despair at not receiving a single response...
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