Automotive dealership consultancy offers insight on 20 years of German dealer network.
Saturated European market requires fresh look at dealer locations, performance and marketing
FRANKFURT, Germany, Nov. 11, 2010 - Celebrating its 20th anniversary in Germany this month, global automotive retail consulting firm Urban Science has made its mark by identifying the challenges and opportunities to improving brand and dealership performance in a mature and saturated market. Low profit margins, intense competition, increasing product complexity and challenging markets have created an environment where OEMs are relying on new sets of tools for dealer improvements.
Urban Science helps companies understand where retail sites should be located for optimum performance based on long-term projections and scientific analysis. In the company's view, dealer networks are very dense in many established markets across Germany, forcing average returns into unacceptably low levels.
"Dealers are under tremendous pressure with the level of competition in the market today," said Eric Haase, managing director Urban Science - Germany. "It's in the manufacturers' best interest to have a healthy distribution chain. If dealers are not making money, it's difficult for OEMs to drive facility improvements, increase inventory and aggressively market at the retail level.
"Now is the time to optimize the locations you have by providing the tools and analytics to improve service area profits and retain and conquest new customers," Haase added. "OEMs can increase the sophistication of their dealers' marketing efforts by sharing information, such as using service data to understand customer segments to identify opportunities for increased service sales and address unique marketing needs."
Urban Science also sees opportunities for improved sales through improved dealer performance.
"Proper planning and analysis produces a significant competitive advantage for the OEMs. Standards management is one area of focus in Germany," said Paul Beaumont, European practice manager. "Standards ensure that the brand is consistently presented to the OEM's specifications and expectations anywhere in the world, from the facility layout to how new vehicles are prepped to how they follow up on service visits. OEMs can benchmark dealership performance against any market, region and national standards and apply learnings from successful dealers to underperformers."
Urban Science opened its Frankfurt office in 1990, growing from just two employees to 45 over the past two decades. The growth has been generated by increasing the services available for European-based OEMs, helping them not only in the region, but around the world. Urban Science will mark its anniversary with a client celebration this month.
About Urban Science
Founded in 1977, Urban Science is a global retail consulting firm that combines science with marketing to give companies the competitive edge they need to increase their market share and profitability in the most effective and efficient manner. With headquarters in Detroit, Urban Science serves its global clientele from offices in the United States, Spain, United Kingdom, Germany, Italy, France, Australia, China, Mexico, Japan, India and Russia.
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