1. INCREASE CUSTOMER RETENTION AND
REVENUES WITH A PROACTIVE DEALERS PARTS
SALES APPROACH
Parts Forum, Berlin, 28th
January 2014, Federico
Pensa
Parts Marketing & Sales Manager – SDF Group

2. Agenda
 SDF Group
 Background
 Project goals
 Sell in vs sell out
 Parts market potential
 External sales project
 Market research
 Q&A
Parts forum, Berlin, 28 th
January 2014 Page 2

3. Page 3
SDF Group – Production plants
Combines
Tractors
Engines
Parts
BANDIRMA
da 50 a 80 HP
RANIPET
da 30 a 80 HP
da 30 a 100 HP
MOSCOW
da 150 a 270 HP
TREVIGLIO
da 50 a 180 HP
da 100 a 170 HP
ŽUPANJA
da 222 a 450 HP
LAUINGEN
da 120 a 300 HP
COGNAC
da 100 a 187 CV
Page 3Parts forum, Berlin, 28 th
January 2014

4. SDF group – Distribution network
Page 4
▪ 14 Subsidiary ▪ 141 Importers ▪ 3.000 Dealers
Subsidiary
Importer
Page 4Parts forum, Berlin, 28 th
January 2014

5. Backgroud
This presentation shows a project started in 2012 and
implemented from April 2013 with the aim to change
Italian parts department approach to the market.
This to provide dealers a different vision of the parts
business and of parts area managers role.
The project is strongly related to change management
and impact with hard and soft skills of all stakeholders.
Page 5Parts forum, Berlin, 28 th
January 2014

6. Background
Italian SDF dealer history come from individual sales
agent that time by time become dealers.
In Italy it is still strong the presence of wholesalers and
poor the dealers parts business know-how.
It is strategic to impact on culture, behaviours, business
approach, business know-how of parts area managers
and SDF dealers.
Page 6Parts forum, Berlin, 28 th
January 2014

7. CHALLENGE # 1CHALLENGE # 1
Page 7Parts forum, Berlin, 28 th
January 2014

8. BIGGER can M-O-R-E
CHALLENGE # 2
Page 8Parts forum, Berlin, 28 th
January 2014

9. CHALLENGE # 3
Complexity and lack
of proper market
information
Page 9Parts forum, Berlin, 28 th
January 2014

10. Project goals
Dealers do not perceive parts as a business
opportunity
Dealers believe parts are a big opportunity of growth
in term of revenues and customer retention
Dealers have a passive approach with parts sales Dealers are proactive and wish to become an active
parts agent
Strong turbulences caused by competition among
dealers and wholesalers
Wholesalers and dealers work and cooperate
together with a distinctive mission
Parts area managers are perceived as parts problem
solver or a discount provider
Parts area managers cooperate with dealer to
develop sales
AS IS TO BE
Page 10Parts forum, Berlin, 28 th
January 2014

11. Sell in vs sell out
Focus on sell out:
 Increase dealer purchases helping the dealer to sell more
Focus on sell in:
 Increase dealer purchases pushing the dealer to buy more
(generally with bonus scheme and volume discounts)
Push Short term Historical
sales
Low market
knowledge
Market
turbulence
Easy and
fast
Poor
commitment
Pull Long term Market
potential
Business
intelligence
Market
control
Complex
and time
consuming
Strong
commitment
Sell in
Sell out
Page 11Parts forum, Berlin, 28 th
January 2014

12. Parts market potential
 Parts consumption  (…)
 It is a complex estimation due to uncertain about the tractor
park population and working hours
 Even the best algorithm and most accurate database will not
help understanding sales drivers and correlation to sales
Tractor park  (quantity, mix)
Working hours
Page 12Parts forum, Berlin, 28 th
January 2014

13. Parts market potential
 Parts potential in much deeper and precise analysis have been
determined with local surveys, useful also to determine sales
drivers
 For each Italian district have been calculated the average parts
and lubricants performance, and best results have been taken
as benchmarks
Page 13Parts forum, Berlin, 28 th
January 2014

14. Parts market potential
 Have been identified 12 dealers with bigger gaps versus the
benchmark performance
 These dealers have been involved in a customized market
research project
Data presented are an example and not real
Page 14Parts forum, Berlin, 28 th
January 2014

15. Page 15
Main purposes:
 Increase original SDF parts and lubricants market share reducing the gap versus the
market potential
Methodology:
 Determine market potential and market drivers with a market research
 Market research will not be only a tool of business intelligence and decision making
but also a tool of team building and change of perception and behaviour of dealers
and parts area managers
Output:
 Together with the dealer will be defined a commercial strategy and a three years
business plan forecasting incremental revenues and costs
External sales project
Page 15Parts forum, Berlin, 28 th
January 2014

16. Market research
Main purposes:
 Understand market potential and market drivers
Methodology:
 Identify main farmers, contractors and service repairs in the SDF dealer area of
responsibility
 SDF Dealer staff and SDF Parts Area Manager organize a joined visit to address main
market agents a survey
Output:
 The questionnaire will help to determine market potential and will help to better
understand main reasons behind the purchasing behaviour, will help to segment
farmers, contractors and services
Page 16Parts forum, Berlin, 28 th
January 2014

17. Market research: clustering
Clustering:
 We have identified four main agents in the dealer area: parts resellers, service
points, farmers and contractors
Methodology:
 Clusters will help to classify main business agents grouping them
 To any of these different clusters we addressed a dedicated survey in order to better
understand potential and purchasing drivers
Output:
 For any cluster will be highlighted those drivers have bigger impacts in purchasing
habits
 Any cluster will be addressed a customized market strategy accordingly to drivers
Page 17Parts forum, Berlin, 28 th
January 2014

18. Market research: farmers &
contractors
F=Farmer
C=Contractor
FC=Farmer&Contractor
 We started defining a list of customers (existing, news) using
different sources (dealer database, farmers and contractors
associations, etc.)
 All customers have been insert in a data record and contacted
by phone for a first screening and selection
Type Province Address Phone Main contact / Mobile phone NOTE
F
CC Street 24, City 12345 Mr. Xyz Done
F
CC Street 24, City 12345 Mr. Xyz On holiday, contact him later
F
CC Street 24, City 12345 Mr. Xyz Not interested
F
CC Street 24, City 12345 Mr. Xyz Done
F
CC Street 24, City 12345 Mr. Xyz Done
C
CC Street 24, City 12345 Mr. Xyz Wrong contact details, unable to reach him
PARTS SURVEY - FARMERS AND CONTRACTORS
Page 18Parts forum, Berlin, 28 th
January 2014

19. Market research: farmers &
contractors
For example in this market search we visited 30 clients:
 Within Farmer cluster have been identified 4 subclusters:
Zootecnical, Pig breading, Cereal and Horticultural farmers
X Y Z
Zootecnical farmers 5 7 2 14
Pig brading farmers 1 1 2
Cereal farmers 2 2
Horticoltural farmers 7 7
Contractors 1 2 2 5
TOTAL 14 10 6 30
Farmers by activity
Province
TOTAL
FARMERS VISITED
Data presented are an example and not real
Page 19Parts forum, Berlin, 28 th
January 2014

20. Market research: farmers &
contractors
Brand/Model HP
Year of
reg.
Working
hours
Same 360
Lbg 654
Buffalo 130
Explorer 80
Explorer 80
Laser 130
Antares 100
Titan 160
J.D. 2650
J.D. 7800
J.D. 7800
Antares 130
Solaris 45
A.tron X 720
A.tron X 720
2 Headers JD
2 Combine. JD
60
65
130
80
80
130
100
160
82
180
180
130
45
270
270
1961
1970
1974
1985
1985
1985
1988
1989
1989
1992
1992
1999
2006
2006
2006
40.000
10.000
13.000
4.200
7.200
6.800
6.800
8.000
10.000
7.900
8.900
2.800
1.000
3.200
3.500
Ordinary and
extraorfinary
maintainance
+
Important repair
activities
External service
repair of
reference XXX
SDF supplier:
XYZ
100% original parts
JD supplier:
ABC
20% original parts
Annual parts expences:
€ 20K
Driver :
Availability
Dedicated delivery
Brand: ROLOIL
1200 Kg per year
Seller:
ABC
Driver:
I'm used to
He appreciates a lot SDF dealer
because of high level of assistance.
Very interested in maintainance
program
OUTPUT QUESTIONAIRE - CONTRACTORS
Company data
Contact
person
Agricoltural activity
Cultivated
Surface
Tractor park Internal repair
station
Spare parts Lubricants
Company name
street
phone
Mr. Mobile
phone
Contractor NA
Page 20Parts forum, Berlin, 28 th
January 2014

21. Market research: farmers &
contractors
KILOGRAMS PER YEAR
Zootecnical,
Pig branding,
cereal farmers
Horticoltural
farmers
Contractors
TOTAL
n. %
100 3 3 6 20%
200 - 300 6 2 1 9 35%
400 - 700 6 1 7 25%
> 700 2 1 3 6 20%
Zootecnical,
Pig branding,
cereal farmers
Horticoltural
farmers
Contractors
TOTAL
n. %
Friendship 5 1 4 10 33%
I trust my dealer 4 2 1 7 23%
Price 3 1 1 5 16%
Where I buy fuel 3 1 4 13%
Because it is original 2 2 6%
Confortable 1 1 3%
Quality 1 1 3%
Full range 1 1 3%
POTENTIAL
DRIVERS OF PURCHASE
Clusters lubricants potential and sales drivers:
Page 21Parts forum, Berlin, 28 th
January 2014

22. Market research: farmers &
contractors
Zootecnical & pig
brading & cereal
farmers
Horticoltural farmers Contractors
I buy mainly filters and competitive parts 95% 100% 40%
Also captive 5% 60%
% of use of original parts
100% 85% 70% 80%
70 - 90% 15% 30% 20%
How much is important
Availability 80% 80% 100%
Delivery 20% 20% 60%
Clusters parts potential and sales drivers:
Page 22Parts forum, Berlin, 28 th
January 2014

23. Market research: service repairs
Company data:
Data presented are an example and not real
XXX REPAIR SERVICE SERVICE A
XXX REPAIR SERVICE SERVICE B
XXX REPAIR SERVICE SERVICE C
XXX REPAIR SERVICE SERVICE D
XXX REPAIR SERVICE SERVICE E
XXX REPAIR SERVICE SERVICE F
XXX REPAIR SERVICE SERVICE G
XXX REPAIR SERVICE SERVICE H
XXX REPAIR SERVICE SERVICE I
XXX REPAIR SERVICE SERVICE J
XXX REPAIR SERVICE SERVICE L
XXX REPAIR SERVICE SERVICE M
XXX REPAIR SERVICE SERVICE N
XXX REPAIR SERVICE SERVICE O
XXX REPAIR SERVICE SERVICE P
XXX REPAIR SERVICE SERVICE Q
XXX REPAIR SERVICE SERVICE R
CITY PHONE E-MAILADDRESS
PARTS AREA
MANAGER
SDF DEALER CUSTOMER TYPE COMPANY NAME OWNER
POSTAL
CODE
Page 23Parts forum, Berlin, 28 th
January 2014

24. Market research: service repairs
Service data:
Data presented are an example and not real
LANDINI 3 1 60 NO NO
CNH 2 3 500 SI YES
INDIPENDENT 2 1 15 NO NO
LANDINI + GOLDONI 3 2 80 SI YES
INDIPENDENT 2 1 150 SI YES
NH 2 1 300 SI YES
INDIPENDENT 1 1 100 NO NO
CNH 6 3 100 SI YES
INDIPENDENT 1 1 50 NO NO
LANDINI 5 3 150 SI YES
FIAT 1 1 10 NO NO
MF + FENDT 4 4 100 SI YES
CNH 6 4 200 SI YES
CNH 2 1 40 SI YES
GOLDONI 4 2 200 SI YES
LAMBO + DEUTZ 6 5 200 SI NO
CNH 3 2 80 SI YES
WORKING
POSITIONS
WAREHOUSE SQMCHIEF MECHANIC BRAND FRANCHISE
N. OF
EMPLOYEES
INTERNETOIL DEPOSIT
Page 24Parts forum, Berlin, 28 th
January 2014

25. Market research: service repairs
Service metrics:
Data presented are an example and not real
2 60 € 25 € 30.000 € 48.000 SDF5% + LANDINI80% + CNH5% + MF10% MANITAINANCE, ENGINE, TRANSMISSION
3 30 € 34 € 70.000 € 105.000 SDF21% + FENDT1% + LANDINI70% + JD1% + MF2% + GOLDONI5% MAINTAINANCE
2 60 € 22 € 18.000 € 30.000 SDF1% + LANDINI25% + CNH40% + JD10% + MF10% + VARIE10% ALL
2 120 € 25 € 40.000 € 58.000 SDF10% + FENDT2% + LANDINI70% + CNH18% MAINTAINANCE
3 50 € 25 € 38.000 € 50.000 SDF15% + LANDINI5% + CNH60% + MF5% + GOLDONI15% CATERPILLAR + GEAR + TRANSMISSION
2 100 € 30 € 120.000 € 230.000 SDF1% + LANDINI60% + CNH39% MAINTAINANCE, GEARBOX
1 50 € 25 € 15.000 € 30.000 LANDINI10% + CNH80% + MF10% CATERPILLAR, MAINTAINANCE
4 300 € 28 € 40.000 € 60.000 SDF0,5% + LANDINI50% + MF15% MAINTAINANCE
1 50 € 25 € 25.000 € 45.000 SDF8% + LANDINI 12% + CNH60% + MF10% + GOLDONI10% TRANSMISSION, ENGINE
6 700 € 28 € 200.000 € 350.000 SDF3% + LANDINI90% + CNH7% ALL
1 60 € 24 € 21.000 € 32.000 SDF5% + LANDINI30% + CNH60% + MF5% MAINTAINANCE
4 400 € 30 € 60.000 € 90.000 SDF12% + FWNDT20% + LANDINI10% + MF58% MANITAINANCE, ENGINE, TRANSMISSION
5 400 € 30 € 200.000 € 350.000 SDF5% + LANDINI10% + CNH85% MAINTAINANCE
1 35 € 25 € 20.000 € 30.000 SDF16% + LANDINI2% + CNH80% + MF2% MANITAINANCE, ENGINE, TRANSMISSION
3 80 € 29 € 50.000 € 115.000 SDF3% + LANDINI12% + CNH20% + GOLDONI65% MAINTAINANCE, GEARBOX
5 500 € 28 € 150.000 € 200.000 SDF35% + LANDINI40% + CNH10% + MF15% + VARIE MAINTAINANCE, GEARBOX
3 200 € 30 € 150.000 € 200.000 SDF10%+FENDT5%+LANDINI5%+CNH60%+JD20% ALL
N. OF TRACTOR
REPAIRED PY
TRACTOR PARK MIX (%) MAIN WORKSN. OF MECHANICS
PARTS INVOICED
PY
SERVICE LABOUR
RATE PH
PARTS
PURCHASED PY
Page 25Parts forum, Berlin, 28 th
January 2014

26. Market research: service repairs
Purchase drivers parts:
Data presented are an example and not real
PRICE PRICE + FAST DELIVERY 40% GOOD PRICE € 6.000 GOOD EXCELLENT
PRICE, FAST DELIVERY PRICE + FAST DELIVERY 80% BECAUSE IT'S ORIGINAL € 8.000 EXCELLENT EXCELLENT
PRICE AVAILABILITY & FAST DELIVERY 80% BECAUSE IT'S ORIGINAL € 8.000 GOOD GOOD
PRICE, FAST DELIVERY AVAILABILITY & FAST DELIVERY 80% BECAUSE IT'S ORIGINAL € 6.000 GOOD GOOD
PRICE, FAST DELIVERY AVAILABILITY & FAST DELIVERY 40% GOOD PRICE € 10.000 GOOD GOOD
PRICE PRICE 40% GOOD PRICE € 18.000 EXCELLENT GOOD
PRICE PRICE 20% GOOD PRICE € 4.000 GOOD GOOD
PRICE PRICE + FAST DELIVERY 40% ONLY ORIGINAL € 18.000 GOOD GOOD
PRICE, FAST DELIVERY PRICE 20% GOOD PRICE € 2.500 SUFFICIENT GOOD
OFFICIAL DEALER, PRICE, FAST DELIVERY PRICE 80% BECAUSE IT'S ORIGINAL NA EXCELLENT EXCELLENT
PRICE PRICE + FAST DELIVERY 80% BECAUSE IT'S ORIGINAL € 2.800 EXCELLENT EXCELLENT
PRICE PRICE + FAST DELIVERY 30% GOOD PRICE € 9.000 EXCELLENT EXCELLENT
OFFICIAL DEALER, FAST DELIVERY PRICE + FAST DELIVERY 30% GOOD PRICE € 20.000 EXCELLENT EXCELLENT
COMODITA' + PREZZO + DISPONIBILITA' PRICE + FAST DELIVERY 80% ONLY ORIGINAL € 16.000 EXCELLENT GOOD
FAST DELIVERY PRICE + FAST DELIVERY 30% GOOD PRICE € 12.000 GOOD GOOD
PRICE, QUALITY OF THE DERVICE,
TECHNICAL KNOW HOW
I'M AUTHORIZED SERVICE 80% ONLY ORIGINAL € 8.000 EXCELLENT GOOD
PRICE AVAILABILITY & FAST DELIVERY 90% ONLY ORIGINAL € 18.000 EXCELLENT GOOD
EXPENDITURE PY
DELIVERY
SATISFACTION
TECHNICAL PARTS
ASSISTANCE
REASON WHYWHERE I BUY PARTS REASON WHY WHERE I BUY SDF PARTS REASON WHY % ORIGINAL PARTS
Page 26Parts forum, Berlin, 28 th
January 2014

27. Market research: service repairs
Purchase drivers lubricants:
Data presented are an example and not real
Page 27Parts forum, Berlin, 28 th
January 2014

28. Market research: service repairs
Purchase drivers lubricants:
Data presented are an example and not real
Page 28Parts forum, Berlin, 28 th
January 2014

29. Page 29
Market research: geomarketing
Service A
Service B
Service C
Service D
Service E
Service F
Service G
Service H
Service M
Service L
Service I
Service N
Service O
Service Q
Service R
Service S
Service T
Service P
DEALER SDF
Service A
Service B
Service C
Service D
Service E
Service F
Service G
Service H
Service M
Service L
Service I
Service N
Service O
Service Q
Service R
Service S
Service T
Service P
DEALER SDF
Page 29Parts forum, Berlin, 28 th
January 2014

30. Page 30
Q & A
Thank you
Page 30Parts forum, Berlin, 28 th
January 2014