CIMA Business Case Awards 2014 - DIMO - 12th November 2014

CIMA Business Case Awards 2014

12th

November 2014

Madurika Samarasekera

Varuna Jayasinghe

Prabodha Silva

How focusing on “their”

purpose served “our” purpose

Mercedes-Benz Presentation/Template.pptx


Diesel & Motor Engineering PLC http://www.dimolanka.com

Click to edit Master title style

• The end of the war opened up the market and all

economic factors affecting our industry was positive.

• Past experience showed it would be temporary.

• Focused our efforts on mitigating the effects of:

• Fluctuating interest rates and duty structures.

• New competitors.

• Volatility of USD exchange rate.

Our World changed

Defining our Purpose

Through a customer centric approach, ensure the

market share gained is sustained.





By bestowing a total service solution instead of a routine sales approach, how it

resulted in sustaining the Market Leadership gained

How we achieved our purpose




Click to edit Master title styleOur Management Approach





•Chairman

•CEO

•Board of Directors

Direction

•General Manager

•National Sales Manager

•Head of Spare Parts

•Head of After-Sales

•Business Development

Conceptualizing •General Manager

•National Sales Manager

•Head of Spare Parts

•Head of After-Sales Service

Disseminators

• Product Managers

• Branch Managers

Enforcers• Regional

Operational Teams

Implementers

The Instigators




Click to edit Master title styleHow we defined a Total Solution

(1) Understand The business that our customers operates in and provide the best matched product through the TATA portfolio.

(2) Minimize lead time & add cost effective valueFor the Product procurement process

(3) Continuous engagement Ensure at the end of the product lifecycle the repurchase will be within the TATA portfolio.




Click to edit Master title styleCompetitive Advantage

The range of TATA models

DIMO’s Diversified BUSINESSES





Customer base

Financial strength Brand value

Competitive Advantage

Human capital




Click to edit Master title styleOpt to be different – “Serving their Purpose”

Customer Segmentation

Identify, Approach, Fulfill

Segment the market according to their purpose – Application Matrix

Understand

Customer Reach

Geographic expansion of the market

Provide convenience & reliability

Closely engage with customers to nurture a long-term relationship.

Minimize lead time

& add cost

effective value

Continuous

engagement

TOTAL SOLUTION PROVIDER

STRATEGY I STRATEGY II




Click to edit Master title styleThe PUSH Marketing Strategy according to geographical segmentation




Click to edit Master title styleStrategy I – The New Approach - Customer Segmentation





Investigated specific

requirements of different

segments – E.g. Cement Industry

Strategy I - Customer Segmentation Initiatives





Financing requirements of different segments

Strategy I - Customer Segmentation Initiatives

Training to staff on selling

“Solutions”




Click to edit Master title styleStrategy I - Creation of a new Segment

Restaurant Hair Salon

Ice Cream Vegetable Stall

The DIMO Batta




Click to edit Master title styleStrategy II - Customer Reach

9Customer Interaction

Points

Year 2011




Click to edit Master title styleCustomer Reach

38Customer Interaction

Points

Strategy II - Customer Reach

Year 2014

Tripling our Customer Reach in 3 years





Strengthening the Sales

Force

Customer Reach Initiatives

Strengthening CRM function

with a fully-fledged Call Center

After-Sales Network – 24-hour

Roadside assistance

Strategy II - Customer Reach Initiatives




Click to edit Master title styleThe Success of our Approach – Market Share Stability

28%

35%

43% 44%40% 39% 39%

0%5%

10%15%20%25%30%35%40%45%50%

08/09 09/10 10/11 11/12 12/13 13/14 Aug'14

TATA Market Share

Before After

Source: RMV data

In a market which showed a

negative growth of 2% from the

point of Year 10/11 to the

present, DIMO & TATA have

been able to stabilize our market

share.




Click to edit Master title styleThe Success of our Approach – Market Share Stability

0

2000

4000

6000

8000

10000

09/10 - beforesegmentation

13/14- after(current)

8%

20%

TATA

TIV

LCV Market share growth - After segmentation

0

100

200

300

400

500

600

09/10 with no CIPs 13/14 -with a CIP

11%

40% TATA

TIV

Area-wise market share growth with expanding CIPs (Eg:- Ampara)

28%

35%

43% 44%40% 39% 39%

0%5%

10%15%20%25%30%35%40%45%50%

08/09 09/10 10/11 11/12 12/13 13/14 Aug'14

TATA Market Share

Before After

Source: RMV data




Click to edit Master title styleThe Success of our Approach – Qualitative Awards

Best Corporate Citizen Awards 2013

• Best Corporate Citizen - Overall Winner• Social Sustainability – Winner

National Business Excellence Awards 2012

• Diversified Group of Companies – Winner

TATA Innovate Awards 2012

• Special Achievements in Mini Trucks and Pickups• Highest Sales of Pickups in 2011-12• Highest Sales of Mini Trucks in 2011-12 – 40,000+

units• Achievement of Highest Sales of Full Built

Application Vehicles• 2nd Highest Market Share for Mini Trucks for 2011-12




Click to edit Master title styleRecommendations

• Customer Retention through After-Sales Services

• Managing the product lifecycle.

• Revisiting business strategies continuously.





Build relationships by focusing on a customer’s purpose

Key Learning Points

Being different rather than ‘competing’ is a strategy that is worth adopting.





Customer

Requirements

Market Research Financial StrengthDIMO & TATA

Brand Equity

Business Partner

Relationships

Customer Centric

ApproachSustainable

Market LeadershipMarket

Segmentation

Tata Product

RangeDistribution

Network

Strategically

Aligned Training

Policies

Recap



CIMA Business Case Awards 2014 - DIMO - 12th November 2014

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