The Challenge
“Make our car distribution business unit profitable again, and help us build a future-proof business model”. - Auto Client
Keeping new car sales, used car sales and after sales under one roof, was long the way to go in car distribution. Requiring large surfaces, it led to a concentration of dealerships, at the outer edges of urban areas.
What did we do?
We analyzed years of customer data by combining public and proprietary data sources. Different catchment areas emerged for sales and after-sales, not based on hypothetical statements in customer surveys, but based on actual customer behavior. In parallel, we made a simulation tool for modelling the costs of sales and after-sales outlets.
The Solution
Combining the ideal footprint with the economic viability of outlets, led to a granular recommendation how to rebuild the car distribution network while simultaneously ensuring intra-city locations to fulfil future mobility needs.
Quick Facts
- 50% more physical outlets in the 'new format'
- 3 km average decrease in distance to auto outlet
- ~30% decrease in costs
Why does this matter to you?
How to optimize your current business operations while building in optionality for future customer needs
