The Automobile Business - On a New Course

Anand Mahindra, Vice-Chairman & MD, Mahindra & Mahindra Ltd

The face of the automobile business in the country is rapidly changing. In fact, as I write, consumer behaviour is changing in many ways; new perceptions are made, old opinions are remade, expectations are increasing; in fact, the market has a face that you will probably find a little strange and may be, a lot new. Shrinking global distances, the new media and high market awareness have contributed to it all.

Newer products and improved variants are launched at a pace that could take you quite unawares. Marketers and organisations are waking up to a demanding new consumer-one, whose needs are always two steps ahead. Always. This reflects the rising aspiration levels of customers and it cuts across all segments, starting from two-wheelers and extending right up to commercial vehicles.

Market strategies are evolving to catch up. Boardrooms are abuzz with activity. The shop shelves look different every time you turn back to them. New and improved is in. No one speaks a word about the old. Better quality products, higher warranties, expanding dealer networks, specialised quick service' shops for non-diagnostic jobs, fleet management companies, online insurance repair approvals, usage of internet for shopping, internet service bookings, branded multi-product service stations.

That's just the tip of the iceberg.

Organisations are constantly on their toes. The battle lines are drawn and what's at stake is the biggest prize ever-the CONSUMER. And you, the dealers are our biggest allies. For the consumer, you are the face of the organisation. In this new terrain, your role is nothing short of immense and the fruits of playing your part well are sweet indeed.

▪	The shop shelves look different every time you turn back to them. New and improved is in.
▪	Marketers and organisations are waking up to a demanding new consumer.
▪	The battle lines are drawn and what's at stake is the biggest prize ever - the CONSUMER.
▪	You, the dealers are our biggest allies. Your role is nothing short of immense and the fruits of playing your part well are sweet indeed.

The Terrain - The Early Bird Gets the Worm

Countless new factors are at work in this new terrain. Road infrastructure is being improved, commercial vehicles now have a fixed life span, emission norms are made stricter all the time to meet nothing less than global standards. (And yes, the fierce competition from roadside garages is quickly dying, high technology for diagnostic services being the chief cause.)

At a much larger level, the less-taxing tax regime in the form of new excise and VAT laws are likely to make it easier for the manufacturer, dealer and the consumer too. The spin-off is that aspirations are on the rise, there is greater spending power and a greater desire to spend (attractive finance schemes only fuel this desire). All this makes one thing very clear - the future for automobile dealership business in India is bright. Very bright.

In the Right Direction

Most serious players in the business of manufacturing automobiles have some very common priorities. Launching newer, cleaner, higher quality and competitively priced vehicles.

So, what should your priorities be? Not surprisingly, while market realities may constantly change, what remains constant are some very basic truths. There are no miracles for success. Simple truths often go a long way in building a great business. David Ogilvy, a marketing & advertising icon once said, "The customer is not a moron. She's your wife." That might just be a truth that we often ignore. Don't. Treat the customers with respect. Listen to their needs and understand them. Find out what delights them. You can do all this and more because you are the person the customer is in touch with.

Never Lose a Customer

One single customer could lead you to a million. Literally, it means that all the people he or she is in touch with, on a personal as well as a professional level, are your potential customers. There is no conventional communication faster than "word of mouth". On the flipside, losing a customer is like losing a million more customers. It is a complete disaster. So, invest in Customer Relationship Management. But remember, it is not just telemarketing efforts for sales. It is everything you can do to touch a customer's emotional, rational & functional chords. And it helps you meet your marketing budgets and do wonders to your bottom line.

Make a Difference for Your Dealership

Hear what you want your customers to say about your dealership. Do not be in the business just to sell and service products. Make a personal promise to your customers, something that will differentiate you in the market and then, live up to the promise you made. You will never be short of business from referrals in sales as well as loyal customers in after-sales. That means boom time for your business.

Adopt New Technology

No matter how small your size of operation, technology can help improve sales as well as after-sales. Technology also assists in streamlining your market coverage efforts. And it also gives you a clear picture on the soundness of your strategy. That's not all. It helps you to identify the sincere and productive employees in sales, improves percentage efficiency (hours worked vs hours invoiced to customer) & percentage productivity (hours worked vs hours available) of your service shops. Small gains yes, but they are large contributors to your bottom line.

Formulate Good HR Policy

Do not expect mediocre employees to give you good returns on your investment. Identify good performers and attract the right talents. Promise what you will pay to meet your business targets and pay what you have promised. Do not lose high quality staff (technicians or sales consultants) on whom you have invested in training. Highly motivated and demanding employees are always a better bet than a bunch of "loyal" deadwoods. While you need to have loyal employees, please evaluate if your sales & service managers are more of glorified sales consultants & supervisors and less of strategic business development managers. Do this and you could be far ahead of the competition, ignore it and you wouldn't even know what hit your business.

Look for Synergies in Business

Depending on the type of automobile you deal in, look out for avenues where you can create business synergies. Tie up with ITI to develop technicians with basic qualifications. Skilful technicians could be a great customer draw and it is also half the battle won. Provide service to fleet management companies. That way the scope of your business gets multiplied manifold. Offer complete transport solutions to schools. You could even tie-up with gas stations for quick service. More importantly, keep your eyes, ears and mind open for any new business synergies and become a one-stop shop.

The future is full of opportunities. In fact, to someone who can exploit it, the future is overflowing with them. This is the best time to shift into a higher gear and steer your business on to the right path. Success, needless to say, will be inevitable.

▪	There are no miracles for success. Simple truths often go a long way in building a great business.
▪	Invest in Customer Relationship Management. It is not just telemarketing efforts, it is everything you can do to touch customer's emotional, rational & functional chords.
▪	Highly motivated and demanding employees are always a better bet than a bunch of "loyal" deadwoods.
▪	Depending on the type of automobile you deal in, look out for avenues where you can create business synergies.