Bayerische Motoren Werke AG · XETR:BMW
Bayerische Motoren Werke — BMW Group — Investor Day (October 2012)
26 slides from Bayerische Motoren Werke's investor day presentation, Oct 19, 2012
Slide 1: BMW Dealer Network in China
BMW DEALER NETWORK IN CHINA DR. DANIEL KIRCHERT SENIOR VICE PRESIDENT, SALES & MARKETING BMW BRILLIANCE AUTOMOTIVE OCTOBER 19, 2012
Slide 2: Contents
CONTENTS. Leading in city coverage Best quality dealer network Sustainable development New business growth engine BMW dealer network in china, D.Kirchert, Oct 2012 Page 2
Slide 3: Mainland China in comparison to Western Europe: more than twice the population and land area
MAINLAND CHINA IN COMPARISON TO WESTERN EUROPE: MORE THAN TWICE THE POPULATION AND LAND AREA. China West Europe Population in billion 1.3 0.5 Surface in million km2 9.6 4.3 BMW dealer network in china, D.Kirchert, Oct 2012 Source: China State Statistics Bureau, europa.eu Page 3
Slide 4: Economic development supported by growing urbanization in China
ECONOMIC DEVELOPMENT HAS BEEN SUPPORTED BY GROWING URBANIZATION IN CHINA. China urbanization forecast by 2025 Source: McKinsey Urbanization Report 350 million people will be added to China’s urban population by 2025. (more than the population of the United States today) BMW dealer network in china,
Slide 5: BMW and MINI are outperforming the premium segment's growth
BMW AND MINI ARE OUTPERFORMING THE PREMIUM SEGMENT’S GROWTH. BMW Group Sales Development (2007-2012) ( ‘000 Units) BMW MINI 237 233 Premium segment CAGR: 41% – We will sell the 1 millionth 169 CAGR: +46% BMW in 2012 Q4 – We surpassed 2011 FY in September 2012 91 66 52 2007 2008 2009 2010 2011 2012 Y
Slide 6: 332 BMW dealer outlets in operation by September 2012
332 BMW DEALER OUTLETS ARE IN OPERATION BY SEPTEMBER 2012. Daqing Jiamusi Harbin Kelamayi Mudanjiang Changchun Urumqi Songyuan Jilin Shenyang Hohhot Jinzhou Baotou Beijing Panjin Anshan Erdos Yingkou Datong Qinhuangdao Langfang Tangshan Baoding Dalian Yulin Tianjin Shijiazhuang Dongying Yinchuan Tai
Slide 7: 76 MINI dealer outlets in operation by September 2012
76 MINI DEALER OUTLETS ARE IN OPERATION BY SEPTEMBER 2012. Harbin Hohhot Shenyang Ordos Beijing Tangshan Taiyuan Tianjin Dalian Shijiazhuang Jinan Qingdao Lanzhou Zhengzhou Xuzhou Xi’an Nanjing Nantong Chengdu Wuhan Wuxi Shanghai Suzhou Shaoxing Hangzhou Chongqing Ningbo S-SR A-SR 4S Total Taizhou C
Slide 8: Strict selection criteria ensures BMW premium services with diversified investors
STRICT SELECTION CRITERIA ENSURES BMW PREMIUM SERVICES WITH DIVERSIFIED INVESTORS. Synergy Capability Government Relationship Training Resource Large Local Local Market Advantage People Development Group Group Land Resources Dealer 1. Good experience in automotive industry Selection 2. A
Slide 9: Contents
CONTENTS. Leading in city coverage Best quality dealer network Sustainable development New business growth engine BMW dealer network in china, D.Kirchert, Oct 2012 Page 9
Slide 10: We keep investing in more training facilities around China
WE KEEP INVESTING IN MORE TRAINING FACILITIES AROUND CHINA. Training Center Shanghai (2009) Beijing (2005) Training Base Nanjing – ME (2005) & BP (2011) Chengdu – ME(2007) Shenyang – ME(2008) Guangzhou – ME(2009) Wuxi –ME (2012) Fujian – ME(2012) Beijing Wuhan – ME(2012) Shenyang Hangzhou – ME(2012)
Slide 11: Beyond best class training, we provide full scope HR services to dealer staff
BEYOND BEST CLASS TRAINING, WE PROVIDE FULL SCOPE HR SERVICES TO DEALER STAFF. • Annual Dealer Remuneration • Dealer Apprentice Program Survey • Assessment Center • HR Director Summit • Recruitment Tools • Dealer Staff Motivation Analysis Retention Selection . Recruitment Training 留 选 Retail Qualifi
Slide 12: Continuously improve staff qualification and retention
STICK TO PREMIUM SERVICE COMMITMENT, WE CONTINUOUSLY IMPROVE STAFF QUALIFICATION AND RETENTION. Grading System Staff Certification 12000 Increase of Certifications 10000 Forecast Certification Actual Certification 8000 6000 4000 2000 0 2008 2009 2010 2011 2012 F 15-Year Loyal Service Award Car purch
Slide 13: Contents
CONTENTS. Leading in city coverage Best quality dealer network Sustainable development New business growth engine BMW dealer network in china, D.Kirchert, Oct 2012 Page 13
Slide 14: 5S dealership is BMW China's practice for sustainability strategy
5S DEALERSHIP IS BMW CHINA’S PRACTICE FOR SUSTAINABILITY STRATEGY IN DEALER NETWORK. BMW dealer network in china, D.Kirchert, Oct 2012 Page 14
Slide 15: 5S further extends the sustainability concept across the value chain
5S FURTHER EXTENDS THE SUSTAINABILITY CONCEPT WHICH COVERS THE WHOLE VALUE CHAIN. Product Production Retail - Efficient Dynamic - BBA Tiexi Plant - 5S Dealership BMW dealer network in china, D.Kirchert, Oct 2012 Page 15
Slide 16: How is 5S dealership characterized in terms of sustainability?
HOW IS 5S DEALERSHIP CHARACTERIZED IN TERMS OF SUSTAINABILITY? 5S Dealership Economic Environment Social Sustainable Sustainable Attractive Mobility Design Employer Sustainable Recycling & CSR on Training Waste Dealer Management Level Customer Sustainable Customer Orientation Service Involvement Ope
Slide 17: 5S differentiates through customer involvement, health & safety and employee care
FOCUSING NOT ONLY ON HARDWARE, 5S DIFFERENTIATES FROM OTHER OUTLETS BY THE EFFORTS IN CUSTOMER INVOLVEMENT, HEALTH & SAFETY AND EMPLOYEE CARE. Waterborne paint Paint Shop Ventilation Car Wash Water Recycling Health & Safety training Social Contribution – BMW Waste & Recycle training Wind turbines Jo
Slide 18: Multi-win given growing awareness of social and ecological aspects
MULTI-WIN GIVEN THE GROWING AWARENESS OF SOCIAL AND ECOLOGICAL ASPECTS IN THE MARKET. Joint Efforts & Joint Joy Customer Benefit Dealer Benefit • Enhanced customer’s • Higher customer & staff retail experience satisfaction 5S 5S • Good citizenship • Enhanced process/ demonstration resource efficienc
Slide 19: 5S concept won positive feedback from the media
5S CONCEPT WON POSITIVE FEEDBACK FROM THE MEDIA. “ The introduction of the 5S leads BMW dealers into a new era. ” “ The 5S concept, developed in China, may be rolled out globally. China is also becoming an important source of BMW’s global brand strategy. ” BMW dealer network in china, D.Kirchert, Oc
Slide 20: Various projects in the pipeline to enhance brand image and network quality
MEANWHILE, VARIOUS PROJECTS ARE IN THE PIPELINE AIMED TO FURTHER ENHANCE BRAND IMAGE AND NETWORK QUALITY. Objective: 1.Increase the number of possible contact points with customers and prospects. 2.Increase the services and benefits offered in its retail channels. 3.Enhance the retail experience at
Slide 21: Samples: 4S upgrade
SAMPLES: 4S UPGRADE BMW dealer network in china, D.Kirchert, Oct 2012 Page 21
Slide 22: Contents
CONTENTS. Leading in city coverage Best quality dealer network Sustainable development New business growth engine BMW dealer network in china, D.Kirchert, Oct 2012 Page 22
Slide 23: China still offers opportunities beyond new car sales
COMPARED TO MATURE AUTO MARKET, CHINA STILL OFFERS OPPORTUNITIES BEYOND NEW CAR SALES. China Market Average New Car Sales % US Market Average New Car Sales % Others New car sales >90% ~55% Source: Deloitte Research (2012 China automobile dealer risk research report) Source: USA NADA (National Automo
Slide 24: Aftersales see huge potential for sustainable growth
ALONG WITH CAR PARK INCREASE, AFTERSALES SEE HUGE POTENTIAL FOR SUSTAINABLE GROWTH. (unit) BMW Car Park Development MINI BMW 1,200,000 >1 Million 1,000,000 800,000 600,000 400,000 200,000 - 2009 2010 2011 2012 Car Park ‘Maintaining Joy’ & brand commitment ‘Efficiency’ ‘Transparency’ and ‘Care’ 2012
Slide 25: Used car business as another growth engine
USED CAR BUSINESS CONTRIBUTES TO BMW FUTURE GROWTH AND PROFITABILITY ENHANCEMENT AS ANOTHER GRWOTH ENGINE. Improve market values and used car image for BMW and MINI. Support conquest of new customers for BMW and MINI. Increase profitability of the used car business both for BMW group and deale
Slide 26: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION! BMW dealer network in china, D.Kirchert, Oct 2012 Page 26