AppendicesJune,1999DaimlerChryslerNortheastAsiaChinaCommercialVehicleSalesandDistributionOrganizationDevelopmentHighlyConfidentialHighlyConfidential2A.T.Kearney47/A108/llProjectPlanning3A.T.Kearney47/A108/llProjectworkplanAssessmentofDCNEAcurrentsales,aftersalesandpartspracticesandfutureneedsUnderstandcurrentDCNEAsales,distribution,aftersalesandpartsnetworkDeterminebusinessunits’salesvolumesforecastIdentifyfutureneedsAssessmentofChina’sregulationsandchangesuponentrytoWTOUnderstandcurrentregulationspertainingtosales,distribution,aftersalesandpartsDeterminechangestotheseregulationsuponChinaentrytoWTOUnderstandregulationsofShanghaiWaiqaoqiaoFreeTradeZoneAssessbenefitstoDCNEAuponusingShanghaiWaiqaoqiaoFreeTradeZoneAssessmentofcurrentandfuturemarketneedsUnderstandcustomer’srequirementsanddemandStudycompetitor’scurrentpracticesandfutureevolutionDetermineeconomicsofdirectversusdealershipsalesAssessmentofJVpartnersinsales,aftersalesandpartsmanagementUnderstandthecurrentpositionofJVpartnersandkeyissuesathandAssesstheirwillingnesstoacceptchangestocurrentsales,serviceandpartspracticesDevelopmentofrecommendationsforDCNEA’ssalesandaftersalesandpartsorganizationUnderstandDCNEA’skeyissuesinsales,aftersalesandpartsDeveloprecommendationsObtaininitialbuy-infromDCNEAleadershipIdentificationandassessmentofpossiblesynergiesamongDCNEA’sbusinessunitsBrainstormandidentifypossiblesynergiesamongbusinessunitsAnalyzesynergiesProposalofshortandmediumtermrecommendationsandactionplanPrepareimplementationplanincludinginvestment/savings/expensesandobtainapprovalTeamMeetingTasks3101724May3171421June285121926July29162330AugustCompletedDelayedPlannedProjectplanning4A.T.Kearney47/A108/llAssessmentofcurrentandfuturemarketneedsandcompetitors’practices5A.T.Kearney47/A108/llCurrentandfuturemarketneedsCUSTOMERREQUIREMENTS(LARGE&MEDIUMBUS/TRUCK)Majorityofsalesarefleetpurchasers(findout%)BuyersareprofessionaluserswithspecificrequirementsBuyersperceivedtheycangetabetterdealthroughdirectdealingwithOEMsDemandquickandreliableaftersalesservice,notnecessaryfromOEMBuyersusuallypossessin-houseservicecapabilities•Economicreason•LimitedexternalservicecapabilityGivenachoice,buyerswillchoosenottodoin-housemaintenancePartsaremainlypurchaseddirectlyfromOEMsforimportedproductsandfrommarketforlocalproductsSometimeshumanfactorsdeterminepurchasingpracticeWhoarethecustomersWhataretheirneeds/demandWhataretheimplicationsSales&distribution•Moreproductinformation•FamiliaritywiththeirspecificneedsAfter-salesservice•Shortserviceturnaround,bothbefore&afterwarrantyperiod•Improvedqualityoftechnician•Providemaintenancemanualandtoolkits•Providetrainingtotheirin-housetechnician•Provideemergencysupportatshort-notice•Provideon-sitetechnicalsupport•Honorwarrantyincontract(localproducts)Parts•Partseasilyavailable,shortleadtime•Pricemustbelowerthanmarketprice•Mustbeabletosupplypartofamodule•ProvidesufficienttechnicaldocumentationOther•RegularcontactwithcustomerstoaskforserviceneedsDirectsalesisandwillcontinuetobemainchannelintheshorttermwhileDCNEAstillhaslowsalesvolume•Economics•CustomerrequirementsSales/distributioneffortfocusonvolumebuyersinitiallySalesstaffneedstohavedeepproductknowledgeandunderstandcustomers’needs.Knowledgeoftheeconomicsofsalesandlife-cyc...