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Automotive Fleet Sales Management

Olsson, Jakob and Westling, Gustav (2016) MIO920
Production Management
Abstract
Background The Master’s Thesis Case Study Company is a premium brand automotive OEM. In the Swedish fleet car (or company car) market, the company is lagging behind its main competitors in terms of market share a fact that is not true for several other European markets. Concurrently, the automotive industry is set to go through radical changes the next few years. The speedy development of digitalization and “connected” cars is set to offer entirely new business model opportunities and ways to understand and serve customers. A new test procedure for cars, the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), is also about to be introduced. Consequently, a new fleet sales management improvement study is requested. This should be... (More)
Background The Master’s Thesis Case Study Company is a premium brand automotive OEM. In the Swedish fleet car (or company car) market, the company is lagging behind its main competitors in terms of market share a fact that is not true for several other European markets. Concurrently, the automotive industry is set to go through radical changes the next few years. The speedy development of digitalization and “connected” cars is set to offer entirely new business model opportunities and ways to understand and serve customers. A new test procedure for cars, the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), is also about to be introduced. Consequently, a new fleet sales management improvement study is requested. This should be carried out from an internal, but international, perspective with global technological, environmental and consumer trends and trajectories in mind.
Purpose The main purpose of the Master’s Thesis is to give recommendations for how to create a future best-in-class fleet sales management strategy at the CSC in Sweden. In achieving this, three sub-purposes are pursued; firstly the current situation surrounding the fleet sales function in Sweden is assessed and analyzed. Secondly, relevant automotive industry-related trends are identified and assessed, and the last sub-purpose means identifying internal best practices for the Swedish market within the CSC organization in other successful European markets.
Methodology The Master’s Thesis is an inductive, exploratory research project, meaning the research area is academically untouched and constantly changing, and in the end, new theories through data collection are built. Consequently, a Master’s Thesis specific data collection & analysis model is created to reach the resulting recommendations. A conceptual framework that aims to create a comprehensive fleet sales management view of the business and sales strategy, the organization, and the industry & surrounding environment - the Current Situation Analysis framework, is also created. The three sub-purposes have different data collection methods. The current situation analysis in Sweden is mainly based on qualitative interviews, with a great number of people working at the Case Study Company’s national office, as well as within the dealership network. The industry-related trend identification makes use of quantitative data analysis and desk research of second hand sources. The identified trends are then judged by how they affect
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different aspect parameters of fleet sales. Resulting Trend-Based Practices that are regarded as sound strategic & operational fleet sales management practices for the CSC in response to the industry-related trends are formed. For the identification of internal best practices for the Swedish market, qualitative interviews with fleet sales managers in five European countries are utilized. A uniform interview template that aims to create comprehensive view of the fleet sales function, and the strategic & operational practices at each market, is used. Identified Characteristic Practices for all markets are then judged by how well they fit the Swedish market, after which Internal Best Practices for the Swedish Market are formed. Ultimately, recommendations for how to create a future best-in-class fleet sales management strategy at the CSC in Sweden are formed by combining trend-based practices with internal best practices, and adopting and prioritizing for the Swedish fleet sales function.
Conclusion In the end, eight main recommendations for how to create a future best-in-class fleet sales management strategy are constructed. It is recommended for the fleet sales department of the CSC in Sweden to:
Focus on Fleet Customer Needs, which means keeping track of customers and the market, adapting to the changing fleet customer base, and forming a customer-centric fleet strategy.
Update the Business Model, facilitating for and exploiting connected car services sales, and customer and vehicle data sales.
Implement an Omni-channel Strategy, starting with online and direct sales, as well as rethinking touchpoints and making them consistent.
Focus on and Modernize CRM, meaning ensuring the importance and exploiting the benefits of CRM, and using the company connectivity solution as a direct communication channel with user choosers.
Modernize Marketing, by focusing on digital channels, digitalizing, customizing and automating marketing processes, and updating messaging, branding and target group.
Adapt Offerings to Future Environmental Regulations and Standards, which includes adapting the product offering to the new complexities, and communicating the changes to customers.
Develop Dealership Fleet Sales, meaning developing fleet sales capabilities and processes, and incentivize prospection and relationship building activities.
Improve Fleet Sales Team Processes, by implementing a few streamlining efforts, and reviewing the collaboration strategy with leasing companies. (Less)
Please use this url to cite or link to this publication:
@misc{8892292,
  abstract     = {Background The Master’s Thesis Case Study Company is a premium brand automotive OEM. In the Swedish fleet car (or company car) market, the company is lagging behind its main competitors in terms of market share a fact that is not true for several other European markets. Concurrently, the automotive industry is set to go through radical changes the next few years. The speedy development of digitalization and “connected” cars is set to offer entirely new business model opportunities and ways to understand and serve customers. A new test procedure for cars, the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), is also about to be introduced. Consequently, a new fleet sales management improvement study is requested. This should be carried out from an internal, but international, perspective with global technological, environmental and consumer trends and trajectories in mind.
Purpose The main purpose of the Master’s Thesis is to give recommendations for how to create a future best-in-class fleet sales management strategy at the CSC in Sweden. In achieving this, three sub-purposes are pursued; firstly the current situation surrounding the fleet sales function in Sweden is assessed and analyzed. Secondly, relevant automotive industry-related trends are identified and assessed, and the last sub-purpose means identifying internal best practices for the Swedish market within the CSC organization in other successful European markets.
Methodology The Master’s Thesis is an inductive, exploratory research project, meaning the research area is academically untouched and constantly changing, and in the end, new theories through data collection are built. Consequently, a Master’s Thesis specific data collection & analysis model is created to reach the resulting recommendations. A conceptual framework that aims to create a comprehensive fleet sales management view of the business and sales strategy, the organization, and the industry & surrounding environment - the Current Situation Analysis framework, is also created. The three sub-purposes have different data collection methods. The current situation analysis in Sweden is mainly based on qualitative interviews, with a great number of people working at the Case Study Company’s national office, as well as within the dealership network. The industry-related trend identification makes use of quantitative data analysis and desk research of second hand sources. The identified trends are then judged by how they affect
vi
different aspect parameters of fleet sales. Resulting Trend-Based Practices that are regarded as sound strategic & operational fleet sales management practices for the CSC in response to the industry-related trends are formed. For the identification of internal best practices for the Swedish market, qualitative interviews with fleet sales managers in five European countries are utilized. A uniform interview template that aims to create comprehensive view of the fleet sales function, and the strategic & operational practices at each market, is used. Identified Characteristic Practices for all markets are then judged by how well they fit the Swedish market, after which Internal Best Practices for the Swedish Market are formed. Ultimately, recommendations for how to create a future best-in-class fleet sales management strategy at the CSC in Sweden are formed by combining trend-based practices with internal best practices, and adopting and prioritizing for the Swedish fleet sales function.
Conclusion In the end, eight main recommendations for how to create a future best-in-class fleet sales management strategy are constructed. It is recommended for the fleet sales department of the CSC in Sweden to:
Focus on Fleet Customer Needs, which means keeping track of customers and the market, adapting to the changing fleet customer base, and forming a customer-centric fleet strategy.
Update the Business Model, facilitating for and exploiting connected car services sales, and customer and vehicle data sales.
Implement an Omni-channel Strategy, starting with online and direct sales, as well as rethinking touchpoints and making them consistent.
Focus on and Modernize CRM, meaning ensuring the importance and exploiting the benefits of CRM, and using the company connectivity solution as a direct communication channel with user choosers.
Modernize Marketing, by focusing on digital channels, digitalizing, customizing and automating marketing processes, and updating messaging, branding and target group.
Adapt Offerings to Future Environmental Regulations and Standards, which includes adapting the product offering to the new complexities, and communicating the changes to customers.
Develop Dealership Fleet Sales, meaning developing fleet sales capabilities and processes, and incentivize prospection and relationship building activities.
Improve Fleet Sales Team Processes, by implementing a few streamlining efforts, and reviewing the collaboration strategy with leasing companies.},
  author       = {Olsson, Jakob and Westling, Gustav},
  keyword      = {Fleet sales,fleet cars,company cars,management,internal best practices,organizational learnings,business & sales strategy,NFA,LeaseCo,automotive industry,trend analysis,future best practices,digitalization & connectivity,omni-channel,WLTP,customer and vehicle data,online sales,direct sales,B2B,B2C,dealerships,CRM,business model disruption},
  language     = {eng},
  note         = {Student Paper},
  title        = {Automotive Fleet Sales Management},
  year         = {2016},
}