This document provides a feasibility study and summary for acquiring the Renault franchise as an exclusive dealership in Saudi Arabia. It outlines the aim to maximize profitability through business diversification and capturing the opportunity of exclusive Renault dealership. Success factors include Renault's product adaptations, quality aftersales service, and marketing support. Sales forecasts project steadily increasing volumes and market share through 2013. Financial projections show increasing profits and strong returns. Challenges around brand image, service quality, parts availability, and resale values are identified along with proposed solutions. The next steps are to obtain board approval and finalize agreements with Renault.
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.
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.
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
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