Network Development Study (dealer footprint)

Consumer research findings act as a key component for network realignment and recommendations offered to the client.

What are consumer preferences in the region and how does this impact the following parameters?

  • Reach maximization: Evaluate and adjust current network foot print based upon consumer preferences (and cognizant of internal sales, service and spares estimates).
  • Network expansion: Develop and adjust optimal strategies for the short to mid term and long term expansion based upon consumer preferences. Viz. Which regions covered in the survey would achieve critical mass for client brands to consider expansion.
  • Service potential: Align sales, parts volumes (and labor-hours) forecast with market potential and competitive consumer landscape.
  • Manage dealer expectations: Align dealer expectations to market potential as voiced by the consumer (VOC).

Consolidate / Reduce

  • Actions may entail consolidation of separate mainstream and premium outlets within a city, where city sales performance and growth outlook does not require the separate outlets by segment or locations.
  • Reduction of outlets within a city would entail the closure of outlets for either stand-alone mainstream or premium brands given sales performance and growth outlook. Where multiple outlets exists, lower performing outlets should be prioritized for closure.

Retain / Replace

  • Retention of outlets is contingent on improved outlet performance through sales efficiency improvements.
  • The magnitude of efficiency improvements would be determined by current sales performance per outlet vis-à-vis competitive set and growth in Client car sales.
  • Improvements may be performed through:
    • Sales experience (through offering test drives, brochures, ensuring courteousness and knowledge of sales staff).
    • Service experience (through reduction of waiting times, reduction of repeat complaints, service promptness and courteousness and knowledge of sales staff).
    • Encouraging sales through alternative sales channels such as related financing companies, fleet sales or appointing sub-dealers.


  • Expansion of sales outlets may be necessitated by market growth or lower coverage.
  • Increase in sales outlets would also result in an increase in service outlets commensurate to optimal sales to total outlet ratio derived from the competitive set.
  • New outlets may be located in high potential upcoming areas or existing population centers that may be under represented.

Actionable Results (illustration)

Example: Map of Saudi Arabia showing a schematic of over | under dealer network footprint.


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