“Best in Class”
Appendices
9
Appendix 1 US Car Brands US Car Brands
1900-30 1930-50 1950-70 1970->
GM GM GM GM GM
Buick Cadillac Chevrolet Oldsmobile
Ford Ford Ford Ford Ford
Lincoln
Chrysler Chrysler Chrysler Chrysler Dodge Dodge
Maxwell Maxwell
AMC AMC Kaiser Kaiser
Nash Nash Nash
W illys W illys W illys W illys Auburn Auburn
Stearns Stearns Duesenberg Duesenberg
Edewards Cord
American Locomobile Sampson Studebaker Studebaker DaimlerChrysler Autocar Marion Saxon Hudson Hudson
Chalmers Mason Saxon Packard Packard Columbia Mercer Simplex Cord
Diamont T Overland Standard Durant Durant Packard Stanley Essex
Edwards Pierce-Arrow Stoddard Graham Essex Pope Studebaker Stutz Graham-Pag Premier Stutz
Hudson Rambler Thomas International Reliance W alter Jeffrey-Nash Reo W averly
Jewett Riker W hite
W inton
Daimler-Benz
Porsche Volkswagen
Aston Martin Honda Mazda Nissan Subaru Toyota Volvo
Mitsubishi Suzuki Entry of foreign producers in the US market
Appendix 2 US Vehicle Models US Vehicle Models
Detroit News research, Automotive News, Autodata Corp.
11
Appendix 3 Cars vs. Light Trucks Sales Cars vs. Light trucks Sales
NADA Services Corp., National Automobile Dealers Association Data Report 2003, Economic Impact of Americas New Car and New Truck Dealerships, 2003, p8
Cars vs. Light Trucks Sales
0 1.000.000 2.000.000 3.000.000 4.000.000 5.000.000 6.000.000 7.000.000 8.000.000 9.000.000 10.000.000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year
= Series4 New Cars Light Trucks Sales Quantity
Appendix 4 Number of New Car Dealerships in the US Number of New Car Dealerships in the US
US Dealerships
21.000 21.200 21.400 21.600 21.800 22.000 22.200 22.400 22.600 22.800 23.000 23.200
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year
Number of Dealerships
NADA Services Corp., National Automobile Dealers Association Data Report 2003, Economic Impact of Americas New Car and New Truck Dealerships, 2003, p4.
13
Appendix 5 Vehicle Sales and Price Vehicle Sales and Price
Year
New vehicles sold per dealership
Average retail selling
price 1993 608 $18.200 1994 661 $19.200 1995 648 $20.450 1996 664 $21.900 1997 668 $22.650 1998 694 $23.600 1999 759 $24.450 2000 783 $24.900 2001 785 $25.800 2002 774 $26.150 2003 769 $27.550
NADA Services Corp., National Automobile Dealers Association Data Report 2004, Economic Impact of Americas New Car and New Truck Dealerships North American Dealer Association Data Report 2004, 2004, p8
Appendix 6 Accessory and Automotive Growth Rates Accessory and Automotive Growth rates
Year Sales at
Manufacturer Level
% Change
1985 $2.35 billion N/A
1986 $2.63 billion 11.91%
1987 $3.07 billion 16.73%
1988 $3.51 billion 14.33%
1989 $3.97 billion 13.11%
1990 $4.35 billion 9.57%
1991 $4.19 billion -3.68%
1992 $4.58 billion 9.31%
1993 $5.14 billion 12.23%
1994 $5.47 billion 6.42%
1995 $5.96 billion 8.96%
1996 $6.32 billion 6.04%
1997 $6.85 billion 8.39%
1998 $7.47 billion 9.05%
1999 $8.17 billion 9.40%
2000 $8.69 billion 6.29%
2001 $9.02 billion 3.84%
2002 $9.30 billion 3.10%
2003 $10.02 billion 7.74%
SEMA, Automotive Specialty Equipment Industry Update 2003, 2004, p2.
Year Vehicle Sales % Change
1992 12,860,600 N/A 1993 13,896,000 8.05%
1994 15,058,600 8.37%
1995 14,728,000 -2.20%
1996 15,097,200 2.51%
1997 15,130,200 0.22%
1998 15,541,900 2.72%
1999 16,895,800 8.71%
2000 17,349,700 2.69%
2001 17,121,900 -1.31%
2002 16,817,500 -1.78%
6.92%
2.86%
8.49%
5.24%
15
Appendix 7 Accessories Outlet Type Market Shares Accessories Outlet type Market Shares
Outlet Type Market
Share 2003
Market Share 1996
Difference in Market
Share
Automotive Chains 16,1% 12,3% 3,8%
Direct from Manufacturers 7,2% 7,0% 0,2%
Discount Chains 6,9% 7,3% -0,4%
Full-line Auto Parts Stores/Jobbers 6,3% 9,5% -3,2%
Import Auto Parts Stores 1,3% 1,2% 0,1%
Independent Repair Shops 1,9% 2,7% -0,8%
Machine Shops 0,7% 1,3% -0,6%
Mail Order Companies 14,4% 13,5% 0,9%
Specialty Product/Installation Outlets
21,8%
16,2% 5,6%
Speed Shops & Performance Retailers
5,8%
11,1% -5,3%
Tire Dealerships 4,1% 4,9% -0,8%
New-Vehicle Dealerships 9,4% 10,2% -0,8%
Wholesale Clubs 2,6% 2,2% 0,4%
Other Outlets 1,5% 0,6% 0,9%
SEMA, Automotive Specialty Equipment Industry Update 2004, 2004, p10.
SEMA, SEMA Market Study 1998, Specialty Equipment Market Association, 1998, p4
Appendix 8 Camp’s 10 Step Benchmarking Model Camp’s 10 step benchmarking model
Camp, R.C., Benchmarking: The Search for Industry Best Practices that Lead to Superior Performance, 1989.
Identify what is to be benchmarked
Identify comparative companies
Determine data collection method and collect data
Determine current performance gap
Project future performance levels
Communicate benchmark finding and gain acceptance
Recalibrate benchmarks
Leadership position attained
Practices Fully Integrated into Processes Establish functional goals
Develope action plan
Implement specific action and monitor progress Planning
Analysis
Integration
Action
Maturity
17
Appendix 9 Porter’s Value Chain Porter’s Value Chain
Porter, M.E., Competitive advantage: Creating and sustaining superior performance, 1985
Appendix 10 Dealer Visit Report Dealer Visit Report
Dealer visit: Benzel Bush
Jim Vitale, Service manager 03-03-‘04
First impression: Older facility with different departments in different buildings but located close together. Looked small at first but was quite large with 36 bays. No accessories visible in the facility.
Accessories knowledge: Mr. Vitale had general knowledge about accessories but was not familiar with the special actions.
Sales advisors do not know about the available accessories and do not pay much attention to it (phone conversation Mr. Vitale – sales advisor). They also lose interest after a while so a reminder from time to time would be a good idea.
The parts manager is well informed about the accessories that are available. (This might be due to his visit to the San Francisco Parts meeting)
Problems: The biggest challenge Mr. Vitale believed was the informing of the sales advisors about the possibilities and the details of the different accessories. If it would take the sales advisor too much time to look things up, he would not bother. This could also be contributed to their limited computer access.
When asked about problems encountered the parts manager’s first response was that the availability of the parts had been so bad in the past that the sales people would not even offer them to customers anymore. These delivery problems were his biggest problem with the sale of accessories. The electronics are problematic as well, mainly because of the constant changes in electronics and the difficulty when installing and explaining the cause of the high price to the customer.
Communication: Informing the dealer and the sales people is best done using paper.
Limited computer access prevents information from getting to the right places.
Reward systems: The sales advisors at Benzel Bush work on a commission bases.
Opportunities: It was believed that the biggest gain would be possible in the sale of car accessories not electronics or personal accessories.
Specific changes needed to improve the sale of accessories were:
• Better accessories availability
• Printed copies for service advisors and sales persons
• Wheel & Tire Packages…..Tires are not always available
• Need accessory information readily available
19
Appendix 11 Topic List Performance Interviews Topic List Performance Interviews
Introduction
Describe task goal of the department
Important historic events for the department (at least 3)
Problems encountered
Rate departmental performance (Based on what?)
Personal opinion about:
o Costs
o Dependability o Flexibility o Quality o Speed
Areas of improvement
Personal role in the department
Personal performance o Assessment
o Performance measures o Frequency
Important factors when assessing personal performance
Comments/ remarks?
Appendix 12 Accessories Scorecard Accessories Scorecard
Cultural Survey Results
# Training Classes by Employees
% of Employees with Development Plans in place
% of PMPs for employees
Inventory Turn - Automotive
Accessories - Collection - Telematics
Phone
Navigation
Obsolete Inventory - Automotive
Accessories - Collection - Telematics
Phone
Navigation
Service Level - Automotive
Accessories - Collection - Telematics
Phone
Navigation
- Market Share
Automotive Accessories Collection
- Penetration
Automotive Accessories Collection
C-Class Tele-Aid
Phone
Navigation (ML V-6)
- Tele-aid Retention Rate
Communications
Web-Hits by Product Category
Automotive Accessories # of Training Days Given
- CAC
- PAC
# of Publications
Collection C.S.I. by - Dealers - Customers
- EM
# of Publications
Telematics / Electronics Accessories C.S.I. by - Dealers - Customers # of Articles in Press
Financials
Profit
- Automotive Accessories - Collection
- Telematics
Phone
Navigation
TeleAid
Others
Sales Revenue $
- Automotive Accessories - Collection
- Telematics
Phone
Navigation
TeleAid
Others
Inventory Value
- Automotive Accessories - Collection
- Telematics
Phone
Navigation
Others
Scrap Value
- Automotive Accessories - Collection
- Telematics
Phone
Navigation
Others
Collection
Revenue by Sales Channels
Establish MBA as the preferred source for Accessories Develop, clearly define and document roles and
processes for internal areas
Continually develop and motivate Accessories staff Educate internal partners about Accessories products
and services
Develop and improve communications strategy Develop and implement product strategy Integrate and enhance TeleAid Integrate field staff into sales processes Margin, price calculation, price strategy Optimize inventory management
Create / provide financial transparency and establish financial targets
Margin, price calculation, price strategy
Core Initiatives
Collection
- Number of suppliers - Number of new products
Acknowledgement time Tele- Aid
% of products that meet launch date:
- Automotive Accessories - Collection
- Telematics
Miscellaneous
21
Appendix 13 Departmental Goals Departmental Goals
Conduct market analysis to select and ensure appropriate products for our customers
Select and partner with quality and proactive vendors who understand our business needs
Develop industry leading products with new technology with vendors, MBA, and advance product planning
Develop three tiered product approach for personal accessories to reach all Mercedes-Benz consumer demographics.
Educate and involve our partners about how we develop and bring products to market
Collaboratively create and enhance formal processes that are understood, measured and benchmarked
Transform MBA into the role of key supplier to MBUSA
Provide accurate and timely product information to our dealers and customers
Effectively collaborate with internal communications departments to ensure accurate product representation
Ensure that communications support and enhance the product plan
Continue to develop marketing tools and programs that make the accessories sales process simple, uncomplicated and measurable
Provide necessary information to business partners to enable them to assess, develop and implement programs that support our product plans
Continuously review content and success of existing programs through measurable results
Appendix 14 Top 15 Global Brands Top 15 Global Brands
2004 Rank
2003 Rank
Country of
Ownership Brand
Brand Value 2004 ($
millions)
% change over
previous year
Brand Value 2003 ($
millions) 1 1 US Coca-Cola 67 394 -4% 70 453 2 2 US Microsoft 61 372 -6% 65 174 3 3 US IBM 53 791 4% 51 767 4 4 US GE 44 111 4% 42 340 5 5 US Intel 33 499 8% 31 112 6 7 US Disney 27 113 -3% 28 036 7 8 US McDonald's 25 001 1% 24 699 8 6 Finland Nokia 24 041 -18% 29 440 9 11 Japan Toyota 22 673 9% 20 784
10 9 US Marlboro 22 128 0% 22 183 11 10 Germany Mercedes 21 331 0% 21 371 12 12 US Hewlett-
Packard 20 978 6% 19 860 13 13 US Citibank 19 971 8% 18 571 14 15 US American
Express 17 683 5% 16 833 15 16 US Gillette 16 723 5% 15 978
The Best Global Brands, BusinessWeek, 2-8-2004
23
Appendix 15
Mercedes-Benz USA Dealer Base PNUR AnalysisMercedes-Benz USA Dealer Base PNUR Analysis
800,00 600,00
400,00 200,00
0,00
PNUR
40
30
20
10
0
Frequency
Mean = 394,1742 Std. Dev. = 113,55432 N = 333
Descriptives Statistic Std. Error PNUR Mean 394,1742 6,22274
95% Confidence Interval for Mean
Lower Bound 381,9332 Upper Bound 406,4151
5% Trimmed Mean 392,9733
Median 394,0000
Variance 12894,584
Std. Deviation 113,55432
Minimum 94,00
Maximum 719,00
Range 625,00
Interquartile Range 147,50
Skewness ,127 ,134
Kurtosis -,035 ,266
Appendix 16 Regional PNUR Comparison
Regional PNUR Comparison
25
Appendix 17 Dealership Likert Scores Dealership Likert scores
Accessory presence: 1 = no accessories present
5 = all promotional and display materials present
Employee knowledge: 1 = No knowledge of accessories
5 = Very well educated in MB accessories
Accessory value: 1 = Accessories are not valuable for the dealership 5 = Accessories offer a lot of value for the dealership
Customer interest: 1 = No customer interest for accessories
5 = Almost all customers are interested in accessories
Aftermarket accessories: 0 = No aftermarket accessories present in dealership 5 = Aftermarket accessories present in dealership
Accessory presence
Employee knowledge of
MB acc.
Acc. value for the dealership
Customer interest in
acc.
Presence of aftermarket accessories
PNUR
2 2 3 4 0 302
1 1 2 3 0 234
1 2 2 2 0 261
1 2 2 3 0 264
1 1 2 3 0 216
1 3 2 2 0 353
3 2 2 3 1 407
5 4 5 4 0 648
2 2 2 2 1 265
1 1 2 2 0 203
3 3 4 3 1 340
5 4 5 4 1 408
27
Appendix 18
Results per Dealership on Month to Month BasisResults per Dealership on Month to Month Basis Outsourced Scenario
$0
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
$70.000
Sept Oct Nov Dec
Large Dealer 2003 Large Dealer 2004
$0
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
$70.000
$80.000
$90.000
Sept Oct Nov Dec
Medium Dealer 2003 Medium Dealer 2004
$0
$5.000
$10.000
$15.000
$20.000
$25.000
$30.000
$35.000
$40.000
$45.000
$50.000
Sept Oct Nov Dec
Small Dealer 2003 Small Dealer 2004
Committed Scenario
-$20.000
$0
$20.000
$40.000
$60.000
$80.000
$100.000
$120.000
$140.000
Sept Oct Nov Dec
Large Dealer 2003 Large Dealer 2004
$0
$20.000
$40.000
$60.000
$80.000
$100.000
$120.000
Sept Oct Nov Dec
Medium Dealer 2003 Medium Dealer 2004
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
$70.000
Small Dealer 2003 Small Dealer 2004
29
Empowered Scenario
$0
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
Sept Oct Nov Dec
Medium Dealer 2003 Medium Dealer 2004
$0
$2.000
$4.000
$6.000
$8.000
$10.000
$12.000
$14.000
$16.000
$18.000
Sept Oct Nov Dec
Small Dealer 2003 Small Dealer 2004
$0
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
$70.000
$80.000
$90.000
$100.000
Sept Oct Nov Dec
Large Dealer 2003 Large Dealer 2004
Appendix 19 Accessories Seasonality Accessories Seasonality
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan uary
Feb uary
Marc h
April May
June Jul
y August
Sept em
ber Octob
er Novem
ber Decem
ber
