Make the best use of market potentials by ensuring that the sales organisation is optimally positioned – Cirquent can make your sales organisation fit for the future.

Sales in the automotive industry are currently in decline, with the result that – if the number of sales outlets remains constant –the average sales per dealership or branch office are reduced. The dealership or branch organisation then has profitability problems that can develop into liquidity problems.

Stabilise dealership and branch networks

Manufacturers must intervene proactively in the marketplace with targeted sales network optimisation. Dealership and branch networks have to be stabilised. If necessary, several sales locations have to be closed to ensure sufficient market potential for the remaining locations. But proactivity is also needed in growing markets – the main objective here is to identify the number of locations needed and where they should best be positioned. On the whole, in sales network optimisation, the following three key objectives should be achieved:

1. Fulfil the company strategy and the company’s targets (e.g. sales volume)
2. Consider customers’ needs and, consequently, improve customer satisfaction
3. Stabilise the dealership organisation

Detailed sales network planning

A regional analysis of the markets on city and state levels, or on a post code level, helps identify and quantify growth potentials that have not yet been exploited. Even in markets that are shrinking on the whole there are regions that buck this trend. In addition, a comparison of the existing sales network with an ideal network (greenfield approach) allows the sales network to be positioned optimally. Hard facts and soft facts must both be considered.

Cirquent brings transparency into the sales organisation

Cirquent helps carmakers optimise their sales network. We bring transparency into the sales organisation and, with a cohesive consideration of dealership performance and market conditions, we identify fields of action that are critical for the success of the sales activities. In practice, this approach of optimising sales networks quickly allows specific options for reducing the cost of retail by up to 10 per cent to be identified. It also allows identification of potentials to increase market shares by up to 15 per cent.

The benefits for you at a glance

• Evaluate and prioritise dealerships and branches for a targeted distribution of budgets on a regional basis
• Identify dealerships and branches that are at risk financially and strategic partners that should be financially supported
• Stabilise and increase the performance of the sales network
• Determine the number of dealerships that are needed to service the future market potential optimally
• Identify growth potentials – improved market penetration and market skimming
• More customer satisfaction with the sales network aligned to customers’ requirements
• Integrate future retail trends and sales formats in the realignment of the sales network