Potential Analysis
Goals of potential analysis for garages and car dealerships
- Identification of potentially strong undeveloped zip code areas
- Specification of deviations between the brand split in the catchment area and at the site
- Assessment of market shares by 5-digit zip code in the catchment area (Prerequisite: turnover identification by 5-digit zip code)
- Development of an annual plan of measures and delegations plus activity planning
- Control measures in transactions with private and industrial customers
- A basis for a competition analysis (competition data fed from the central data bank)
- Reduced advertising dispersion cost: targeted utilization of workshop marketing instruments
- Rating basis for negotiations with banks
- Search for locations, shifting of locations
- Field-work control
An example of analysis, planning & implementation solutions
Catchment area & potential analysis plus brand split
Specification of the catchment area on the basis of a map
We propose three options for marking out of the catchment area:
- wolkWolk & Nikolic Aftersales Intelligence specify the catchment area on the basis of empirical values.
- The car workshop informs us of the location and the catchment area with reference to neighboring zip code areas on the basis of empirical values.
- The car workshop sends us an Excel list of service turnovers by 5-digit zip code areas.
Wolk & Nikolic Aftersales Intelligence guarantee the confidentiality of data through a non-disclosure declaration provided to the car workshop.
Potential analysis within the catchment area
The passenger car populations provided by the Federal Motor Transport Authority (Kraftfahrt-Bundesamt) are fed by Wolk into the defined catchment area
The passenger car populations are multiplied by replacement-demand factors (EUR demand or units per passenger car/year).
These may be turnovers (turnover at end-user prices exclusive of VAT) or individual product volumes.
The result is a map into which the annual sales potential values by 5-digit zip codes are entered.
Dark blue = high potential, light blue = low potential.
In addition to the catchment area, the potential of the neighboring zip code areas is depicted. In this way, the car workshop may see whether interesting zip code areas might be developed beyond the core catchment area.
Brand split in the catchment area vs. the national area and vs. brand split of the car workshop
The list shows whether the composition of the passenger car population in the catchment area varies from the national average.
When comparing your workshop with your turnover by brand, the list may be a source of important operating alternatives for future market orientation.
Turnover, market share and competition analysis
Market share analyses of car workshops/car dealerships
The car workshop sends to Wolk & Nikolic Aftersales Intelligence, on a non-disclosure basis, a turnover list by 5-digit zip code in the form of an Excel sheet. The list shows only service station turnover w/o car sales by 5-digit zip code. The workshop may also send to Wolk & Nikolic Aftersales Intelligence a list of individual customers by 5-digit zip code.
Wolk & Nikolic Aftersales Intelligence sign a non-disclosure declaration and submit it to the car workshop.
Market share analysis of car workshops by 5-digit ZIP codes
Turnovers per zip code are set against potentials in order to assess the workshop’s market shares by zip code. On the basis of the color indication, the workshop may easily recognize in which zip code area its market share is high (dark green) or low (red).
Comparing market share and potential analyses
The market shares are compared with potentials. This is a fast way to establish which zip code areas show a need for action. These zip code areas are marked on the map with arrows
Catchment area competition analysis
In order to develop an action plan, however, the car workshop needs more information about the competition, for instance, the zip code regions with the strongest potential, in which the workshop still has a low market share, show a strong population of competitors. Here, this is not the case. Nonetheless, before launching intensified sales or advertising measures, one should acquire in-depth information on the competition.
The competitors are fed into the map. Also, industrial parks are indicated in the catchment area as grey fields. A high passenger-car ratio of the local employers shows that turnover success might soon be achieved in such a park.
Please contact Wolk & Nikolic Aftersales Intelligence in order to learn how to know how to handle these industrial parks effectively.
Optimization of advertisement activities
Optimization of advertising dispersion costs is implemented for the following cases:
- You have already been actively advertising and wish to check whether your advertising commitment might be optimized
- You intend to activate your sales and to know in which regions your advertising measures should cover.
Advertising measures should always be intensified in zip code regions with strong potential and low market shares.
Regions with weak potential may more easily be neglected.
It often also leads to shifting of advertising intensity on account that the advertising cost is too high vs. the turnovers.
Growth plan
Development of a growth plan for car repair shops
A short-term and medium-term growth plan is developed, which takes into account both the workshop’s turnover and gross profit targets.
Development of a sales promotion plan
On the basis of the growth plan, priorities are specified for an action plan (who does what until when?)
On the basis of prior analyses, the consultant prepares measures and develops the growth plan together with the workshop manager. This session leads to an action plan, including a timetable and a to-do list.
Note
Implementation of activities
Implementation assistance (Team Workshop)
In operational practice, the implementation of measures is always a bottleneck. Therefore, in the initial phase, it often needs the hand of a competent external consultant. The objective, however, is always to let the car workshop implement the activities on its own.
The “Team Workshop“ has proved to be a very successful tool for the start, which from the very beginning integrates all employees in goals, concepts, and implementation measures.
In the Team Workshop, the team works on the measures on its own and specifies the priorities, timetable, and to-dos individually. The consultant acts as a host and makes sure that the plans are then put into effect.
The consultant conducts the evening session of the Team Workshop on the site and then follows up the implementation on the phone and intervenes as a controller as appropriate.