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Feasability study

haithamo
22 de Nov de 2016
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Feasability study

  1. 1 14th June 2009 Renault Feasibility Study Summary
  2. 2 Agenda • Aim & Purpose • Success Factors • Sales Forecast overview • Financial Summary • Challenges and solutions • Why Renault for Alissa? • What is next?
  3. 3 Aim • Acquire Renault franchise as an exclusive dealership in the kingdom. Purpose • Maximize shareholder business profitability. • Optimize the utilization of the group infrastructure (economies of scale) • Business Diversification. – Capture the available opportunity “Renault exclusive dealership”. – Balance and mitigate current franchise uncertainty.
  4. 4 Success Factors Renault • Offering wide range of reliable products that are adapted to KSA environment – Product test has been conducted in the region for the last 2 years for Passenger cars and Light Commercial Vehicles • Professional and quality standard after sales service to meet the need of the target consumer – Technical team reside in the region (in Dubai) to assist and serve the local dealers. In Addition to one Renault technical advisor for after sales service located in Riyadh and Renault will add any needed additional staff in the future. Very advanced certified training system for all levels (Higher level than GM and Isuzu training) and fully sponsored by Renault – High ratio of spare parts availability. Buy back system for parts dead stock (30% of the landed cost) – Renault is committed to ensure the availability of all spare parts (Minimum stock will be available in our stock for any new vehicle before launching) investment has been raised with Renault’s after sales team regarding this issue. They will look for some sort of support. – Most of the parts are built on Nissan platform and Nissan power train which means most of the parts of Nissan are applicable for Renault (Renault parts can be sold through Autostar for Nissan vehicles parts)
  5. 5 Success Factors Cont… • Marketing Support “Renault marketing strategy” – Detailed re-launching marketing strategy in the region “include re-building image, Brand positioning and brand awareness) Complete Marketing campaign to be started in September in order to re-launch Renault brand in Saudi Arabia sponsored by Renault. – Official ceremony for Renault re-launch in Saudi Arabia in Sept. – Competitive retail prices that enable Renault’s products to penetrate strongly and quickly in the market. – Renault is eager to ensure the competitiveness of retail prices and they intend to review the market continuously. – Fleet support for all Renault range and additional support for special deals. – Financial support from Manufacturer for Trade-in programs to acquire maximum re-sale value. – Renault will establish a strategy to be launched in Sep/Oct 2009 which aim to set the re-sale value of each model. – Focused and innovative marketing programs “Customer First Program” 50% sponsored by Renault – Free marketing/sales materials and tools “sponsored by Renault”.
  6. 6 • QUALITY AND PARTS ACTIVITIES* – Products • Continuous improvement of the quality of the vehicles • Vehicles designed for the GCC & systematically tested in the GCC • Direct link between Technical Hub (Dubai) and the incidentology department – Services • Spare parts price & availability • Quality survey conducted every month • Training • Renault Excellence program & Peace Of mind package “Customer First Program” * From Renault Marketing Strategy presentation
  7. 7 Success Factors Cont… Alissa Alissa Heritage as a pioneer in Saudi Auto market backed by experienced executive board • Sales “strong network with complete infrastructure” • Distribution “ attractive customer base through out the kingdom” • Dedicated experienced management and staff. • Reliable fleet and retail customer data base. • Professional outdoor sales resources. • State - of – the - art IT and management system. • After sales service “Facilities, technical skills, and point of sales” • Strong foundation of Customer Relationship Management. • Customer financial offering (Leasing, Installment,...etc) for retail and fleet customers, through Al-Yusr and other financial institutions • Operational leasing, Daily rental through BTC and other Rent-A-Car companies. • Retail distribution channels through Autostar and other sub-dealers. • Alissa offered a special office for Renault stuff at Alissa premises to work as a team with Alissa management to support Alissa sales and after sales.
  8. 8 14th June 2009 Sales Forecast & Market Share Overview
  9. 9 Sales Forecast (units) 1,000 5,000 7,000 10,000 14,497 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2009 2010 2011 2012 2013 Renault
  10. 10 0.46% 1.48% 2.11% 2.53% 3.04% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2009 2010 2011 2012 2013 Total Renault Market share (assuming no growth in Passenger car market)
  11. 11 0.45% 1.39% 1.93% 2.25% 2.62% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2009 2010 2011 2012 2013 Total Renault Market share (assuming 3%growth in Passenger car market)
  12. 12 14th June 2009 Financial Summary
  13. 13 Net profit Forecast 0.00 10.00 20.00 30.00 40.00 50.00 60.00 2009 2010 2011 2012 2013 AUM NP Autostar GP AUM GP SR/M
  14. 14 ROCE Forecast 10.6% 9.3% 9.2% 10.3% 19.1% 18.2% 18.9% 24.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2010 2011 2012 2013 ROCE ROE SR/M
  15. 15 Challenges & Solutions Challenge • The Bad brand image in the market Solution • Re-launch Renault brand in KSA by Marketing activities. “Sept 2009” • Financial budget allocated by manufacturer for the re-launch activities. • Leverage Renault brand image by introducing new models to the market adapted to the Saudi environment. • Communicate “What is Renault?” In our re-launch activities: – Over 110 years in Automotive market – Owns 44% of NISSAN worldwide. – French design, Japanese technology – New Era for Renault products to cope with GCC requirements.
  16. 16 Challenge • Perception of low service quality Solution • Re-launch “Customer First” program for service. • Communicate the new wide network of service workshops kingdom wide: – Now…you can serve your Renault in 6 workshops kingdom wide and more… • High level of training for all mechanics sponsored by Renault. • Renault technical advisor for after sales service located in Riyadh and Renault will add any needed additional staff in the future. • CRM to ensure high customer service for Renault users. Challenges & solutions Cont…
  17. 17 Challenge • Perception of expensive and non-availability of parts Solution • Communicate our over 35 parts outlets kingdom wide. • Restructuring price list of parts with the manufacturer. • Communicate price comparison of parts and service between Renault and other brands. • Renault is committed to ensure the availability of all spare parts (Minimum stock will be available in our stock for any new vehicle before launching) investment has been raised with Renault’s after sales team regarding this issue. They will look for some sort of support. Challenges & solutions Cont…
  18. 18 Challenge • Low re-sale value. Solution • Financial support from Manufacturer for Trade-in programs to acquire maximum re-sale value. • Renault will establish a strategy to be launched in Sep/Oct 2009 which aim to set the re-sale value of each model. • Extended warranty for used car. Challenges & Solutions Cont…
  19. 19 Why Renault Franchise for Alissa • Renault will enter the Saudi Automotive market, planning to capture sizable market share, equipped with new strategy, initiatives, products and dedicated expertise. • Alissa is capable to accommodate and deliver Renault objectives and goals to sustain and grow shareholders’ profitable base. Confidential
  20. 20 What is Next? • Obtain the Board approval. • Proceed with Renault to finalize the dealer agreement.
  21. 21 Thank you
  22. 22 “RENAULT CUSTOMER FIRST” launched in the GCC PEACE OF MIND PACKAGE 11-POINT CONFIDENCE COMES STANDARD IN EVERY RENAULT 1. 100km test drive invitation 2. Initial 1000km free inspection 3. Always mobile service: courtesy cars / taxi vouchers 4. 24/7 Roadside Assistance 5. 3y / 100 000 km car warranty 6. Exclusive use of Renault Genuine Parts 7. 1y warranty for maintenance or repairing 8. Maintenance appointment within 48H 9. Quality Certificate after each repair or maintenance 10. Competitive fixed service prices 11. Dedicated Customer line BACK
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