Automakers’ advertising and marketing strategy in this age of social distancing
Lean is ‘in’ these days – and auto showrooms will be the most shining ambassadors of this management method. The drive toward achieving this goal will likely have a ‘digital’ powertrain.
Singed by financing costs of unsold inventory, dealers and vehicle makers want minimum stocking in yards and sales touchpoints. Digital bookings for sales and service and just-in-time deliveries will allow dealerships to hold just-in-time inventory.
That will reduce the inventory carrying costs, which amount to roughly Rs 30,000 crore. So, regional stockyards are alternatives that are weighing. Shashank Srivastava – ED sales and marketing – Maruti Suzuki told ET when an unprecedented event like Covid-19 happens, there is a massive change in the perspective of all stakeholders, especially when the future course is uncertain. There will be fundamental rethinking of all aspects of business – consumer behavior, brand preferences, lifestyle changes, value equations, business relationships, etc.
“This will expectedly lead to questioning and reexamination of various business processes by all dealers, suppliers, OEMs, etc and of all systems like inventory & working capital management, customer interaction, inquiry management, brand management, and indeed the entire sales process. And that process will inevitably be quick,” added Srivastava.
If automakers indeed revamp their inventory management, it will provide relief for dealerships and banks as the major pain point for dealers and banks has been inventory funding.