3. 3
Introduction
• Al-Zahid has been a distributor of Renault for
more than 20 years in Saudi Arabia.
• Al Zahid decided few months ago to quit
passenger car business and focus on B2B only.
• Alissa has taken the initiative to come up with
a proposal to be the sole importer and
distributor for Renault in Saudi Arabia.
4. 4
Strategic Objectives
• Leverage Renault brand to be one of
the major players in Saudi Automotive market.
• Positioning Renault to be one of the top 5
brands in Saudi Arabia market.
• Expand Renault market share dramatically.
• Develop after sales service network Kingdom
wide.
5. 5
Keys to success
• Offering wide range of reliable vehicles that are adapted to KSA environment.
• Wide network of sales and after-sales service.
• Vehicles Purchase financing schemes (Leasing, Installment,...etc) for retail and
fleet customers.
• Sales to Rent-A-Car companies (Operational leasing, Daily rental).
• High ratio of spare parts availability.
• High quality service .
• Manufacturer and dealer work jointly to re-build Renault brand equity in KSA.
• Reliable administration that is ready to serve customers.
• Customer Relation Management "Work with our customers on a personal level".
• Innovative Marketing Strategy.
• Financial support from Manufacturer for Trade-in programs to leverage the resale
value.
• Be an active member of the community.
6. 6
Alissa History
1940 : Started commercial business in Eastern province of Saudi Arabia
1950 : Started selling GM vehicles.
1960 : Expanded Car business in Riyadh.
1960 : Launched ‘Al-Yusr' in financing business.
1968 : Awarded the sole agency of LUCAS/DELPHI group of companies
1974 : Awarded dealership for Chevrolet vehicles and AC Delco parts.
1985 : Awarded Isuzu motors franchise
1990: Awarded the dealership of GMC.
1990: Launched ‘Best' rent a car business
1994-97: Won the prestigious Cadillac Master Dealer Contest four years in a row
1998: Launched General Automotive Company (AUTOSTAR) as a multi-brand car retailer
2006: Acquired Japanese accessories franchise Yellow Hat.
2007: Achieved GM "Chairman's Challenge" award for the fifth time
2008: Acquired distribution rights for East European HD Truck Franchise (AVTOKRAZ)
2008: Signed an alliance with Group 1 Automotive, Inc. a Fortune 500 automotive retailer.
7. 7
Company Locations and Facilities
• AACO car-franchisee business in Riyadh
– 6 showrooms
– Three 3S facilities
• Autostar
– The only "Non-Franchised" company in KSA providing multi-brand 3S facilities Kingdom-
wide.
– 12 showrooms kingdom wide
– 8 service workshops
– 34 parts outlets.
• Al Yusr Financing Company
– Branch network (9) increasing to 18 by 2009 covering all major town centers in the
kingdom.
• Best Trading Company "BTC"
– Fleet of over 8,800 vehicles increasing to 15,000 by 2012 positioning BTC as a second
largest operator.
– 16 outlets and 3 regional offices in 2008 increasing to 35 outlets by 2012.
8. 8
KSA Passenger cars market
• Low penetration of vehicles / person, favorable demographics and
macro economic factors are contributing factors to continued
growth in the automotive sector.
• Introduction of attractive new models could impact significantly
sales and market share.
• Subcompact and compact cars are growing in the last 2 years by
16% .
• The market leader in Passenger car sector is 2.4 – 3.5 cc engine cars
“Camry alone sold 47,108 units in 2008.”
• It is expected that female will be allowed to drive then Subcompact
and Compact cars will be the first choice for this segment.
9. 91st April 2009
Persons Per Vehicle
Market growth will accelerate in view of low penetration and
demographics
13. 13
Renault Sales analysis 2006 - 2008
1665
994
1180
0
200
400
600
800
1000
1200
1400
1600
1800
2006 2007 2008
Renault
Renault
14. 14
Renault Current Performance overview in KSA
• Low sales volume and very small market
share.
• Resale values is lower than competitors’.
• Perception of low quality after sales service.
• Perception of expensive spare parts and non-
availability.
• Weak brand image.
16. 16
Alissa Renault Marketing Strategy in KSA
• Re-launch Renault brand.
• Re-position Renault brand.
• Leverage Renault image.
• Gain sizable market share.
• Promote Renault brand as “modern French design
backed by Nissan technology”.
• Restore the customer confidence in Renault after sales
service.
17. 17
Market Segmentation
• Retail
– Youth:
• Includes males aged from 20 to 34 years which represent 29.3% of the population.
• This segment is price oriented due to low purchase power (limited income).
• Students, employees, expatriates and nationals who prefers economic cars, modern designs.
• Sport cars and coupe for niche segment.
– Family:
• Focuses on safe, reliable vehicles that matches the Saudi environment.
• Fleet
– Rent-A-car companies: Operational leasing, and daily rental.
– Firms: Which purchase economic cars, at low service cost and low price.
– Government: ministries, police, civil defense and healthcare sector.....etc.
– Sub-dealers
18. 18
Promotion strategy
• Tactical campaigns to create demand and expand sales.
– Above the line activities.
• Newspaper advertisement, prints , banners, brochures.
• E-marketing activities.
• Radio spots
• Outdoor marketing activities.
– Below the line activities.
• Direct mail for fleet customers
• Personal promotion.
• Sales promotion. “seasonal offers”
• Public relation activities:
– A press release kit will be sent to all major media outlets in Saudi
Arabia, highlighting:
• What is Renault?
• New Renault products.
• After sales service facilities in Saudi Arabia.
– Events: launching, fleet events….etc.
19. 19
Sales Strategy
Start up:
• 4 dedicated showrooms for Renault
– 2 In Riyadh "Khorais Road (main Auto Market) and Al Shifa area"
– 1 In Dammam "Auto mall”
– 1 in Jeddah "Madina Road"
• 12 Autostar showrooms kingdom wide
– Dedicated branded area for Renault vehicles in Hubtowns.
• 8 Autostar workshops kingdom wide with dedicated
reception area for Renault.
• More than 35 parts outlets kingdom wide.
21. 21
• Used car sales
– 12 Autostar used car centers kingdom wide.
• Financing
– Retail and fleet financing facilities through our
sister Company Al Yusr.
– Operational leasing and daily rental through our
sister company BTC.
Sales Strategy Cont…
22. 22
Sales strategy Cont…
• Dedicated fleet and retail team for Renault Kingdom
wide in the three main cities.
• Focus on LCV range and Logan for fleet segment.
• Focus on Safrane and Koleos for retail segment.
• Re-launch of customer first program.
• Trade-in program.
23. 23
Sales Strategy Cont…
Future expansion:
• When sales volume exceeds 10,000 units per annum
– 3S facilities dedicated for Renault in the 3 main cities
– Opening new showrooms dedicated for Renault according
to new opportunities in the market.
– Renault will be part of all Autostar showrooms, service
workshops and parts outlets kingdom wide.
26. 26
Conclusion
Alissa group is a capable organization that
will take the responsibility of Renault
franchise success in KSA, through its
huge network kingdom wide and
abundant resources, managed by
professional team with a long experience
in the local Automotive market.
