CIMA Business Case Awards 2014 - DIMO - 12th November 2014
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Transcript of CIMA Business Case Awards 2014 - DIMO - 12th November 2014
CIMA Business Case Awards 2014
12th
November 2014
Madurika Samarasekera
Varuna Jayasinghe
Prabodha Silva
How focusing on “their”
purpose served “our” purpose
Diesel & Motor Engineering PLC http://www.dimolanka.com
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• The end of the war opened up the market and all
economic factors affecting our industry was positive.
• Past experience showed it would be temporary.
• Focused our efforts on mitigating the effects of:
• Fluctuating interest rates and duty structures.
• New competitors.
• Volatility of USD exchange rate.
Our World changed
Defining our Purpose
Through a customer centric approach, ensure the
market share gained is sustained.
Diesel & Motor Engineering PLC http://www.dimolanka.com
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By bestowing a total service solution instead of a routine sales approach, how it
resulted in sustaining the Market Leadership gained
How we achieved our purpose
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleOur Management Approach
Diesel & Motor Engineering PLC http://www.dimolanka.com
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•Chairman
•CEO
•Board of Directors
Direction
•General Manager
•National Sales Manager
•Head of Spare Parts
•Head of After-Sales
•Business Development
Conceptualizing •General Manager
•National Sales Manager
•Head of Spare Parts
•Head of After-Sales Service
Disseminators
• Product Managers
• Branch Managers
Enforcers• Regional
Operational Teams
Implementers
The Instigators
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleHow we defined a Total Solution
(1) Understand The business that our customers operates in and provide the best matched product through the TATA portfolio.
(2) Minimize lead time & add cost effective valueFor the Product procurement process
(3) Continuous engagement Ensure at the end of the product lifecycle the repurchase will be within the TATA portfolio.
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleCompetitive Advantage
The range of TATA models
DIMO’s Diversified BUSINESSES
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Customer base
Financial strength Brand value
Competitive Advantage
Human capital
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleOpt to be different – “Serving their Purpose”
Customer Segmentation
Identify, Approach, Fulfill
Segment the market according to their purpose – Application Matrix
Understand
Customer Reach
Geographic expansion of the market
Provide convenience & reliability
Closely engage with customers to nurture a long-term relationship.
Minimize lead time
& add cost
effective value
Continuous
engagement
TOTAL SOLUTION PROVIDER
STRATEGY I STRATEGY II
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe PUSH Marketing Strategy according to geographical segmentation
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleStrategy I – The New Approach - Customer Segmentation
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Investigated specific
requirements of different
segments – E.g. Cement Industry
Strategy I - Customer Segmentation Initiatives
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Financing requirements of different segments
Strategy I - Customer Segmentation Initiatives
Training to staff on selling
“Solutions”
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleStrategy I - Creation of a new Segment
Restaurant Hair Salon
Ice Cream Vegetable Stall
The DIMO Batta
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleStrategy II - Customer Reach
9Customer Interaction
Points
Year 2011
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleCustomer Reach
38Customer Interaction
Points
Strategy II - Customer Reach
Year 2014
Tripling our Customer Reach in 3 years
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Strengthening the Sales
Force
Customer Reach Initiatives
Strengthening CRM function
with a fully-fledged Call Center
After-Sales Network – 24-hour
Roadside assistance
Strategy II - Customer Reach Initiatives
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Market Share Stability
28%
35%
43% 44%40% 39% 39%
0%5%
10%15%20%25%30%35%40%45%50%
08/09 09/10 10/11 11/12 12/13 13/14 Aug'14
TATA Market Share
Before After
Source: RMV data
In a market which showed a
negative growth of 2% from the
point of Year 10/11 to the
present, DIMO & TATA have
been able to stabilize our market
share.
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Market Share Stability
0
2000
4000
6000
8000
10000
09/10 - beforesegmentation
13/14- after(current)
8%
20%
TATA
TIV
LCV Market share growth - After segmentation
0
100
200
300
400
500
600
09/10 with no CIPs 13/14 -with a CIP
11%
40% TATA
TIV
Area-wise market share growth with expanding CIPs (Eg:- Ampara)
28%
35%
43% 44%40% 39% 39%
0%5%
10%15%20%25%30%35%40%45%50%
08/09 09/10 10/11 11/12 12/13 13/14 Aug'14
TATA Market Share
Before After
Source: RMV data
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Qualitative Awards
Best Corporate Citizen Awards 2013
• Best Corporate Citizen - Overall Winner• Social Sustainability – Winner
National Business Excellence Awards 2012
• Diversified Group of Companies – Winner
TATA Innovate Awards 2012
• Special Achievements in Mini Trucks and Pickups• Highest Sales of Pickups in 2011-12• Highest Sales of Mini Trucks in 2011-12 – 40,000+
units• Achievement of Highest Sales of Full Built
Application Vehicles• 2nd Highest Market Share for Mini Trucks for 2011-12
Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleRecommendations
• Customer Retention through After-Sales Services
• Managing the product lifecycle.
• Revisiting business strategies continuously.
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Build relationships by focusing on a customer’s purpose
Key Learning Points
Being different rather than ‘competing’ is a strategy that is worth adopting.
Diesel & Motor Engineering PLC http://www.dimolanka.com
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Customer
Requirements
Market Research Financial StrengthDIMO & TATA
Brand Equity
Business Partner
Relationships
Customer Centric
ApproachSustainable
Market LeadershipMarket
Segmentation
Tata Product
RangeDistribution
Network
Strategically
Aligned Training
Policies
Recap