into Canada
Dino Ibranovic 0356715
Joanie Li 1471346
Yousuf Ali 1471106
Neo Bai 1471177
Mirna Hanna 1471258
P720 Strategic
Management
Prof. Peter Vilks and
John Nashid
Table of Contents
Executive Summary.........................................................................................2
Company Background/History.........................................................................3
Statement of Problems....................................................................................3
Analysis............................................................................................................5
Brief History Overview..................................................................................5
Industry Overview.........................................................................................5
SWOT............................................................................................................6
Porters 5 Forces............................................................................................7
PEEST............................................................................................................8
VRIO............................................................................................................10
Competitor Overview..................................................................................12
Alternatives....................................................................................................12
Decision Criteria............................................................................................14
Implementation.............................................................................................16
Contingency...................................................................................................19
References.....................................................................................................21
Exhibits..........................................................................................................22
Executive Summary
Alfa Romeo, a company steeped in automotive performance history is
being evaluated for re-entry into the North American and specifically
Canadian consumer market. The company was founded in 1910, and has
been producing high performance vehicles to present day. To-date its sales
focus has been focused on the European market, with over 90% of units sold
in Europe. It was acquired by, then Fiat Group, in 1986 from this acquisition
a partnership was brokered between Fiat and Chrysler Motor Company in
1988 for exclusive rights to sell Alfa Romeos through Chrysler dealerships
from 1988 to 1995, at which time Alfa Romeo pulled out of the North
American market. In 2015, due to the recent partnership between Fiat and
Chrysler and the creation of Fiat Chrysler Automotive Group, Alfa Romeo is
returning to North America.
Three key problems have been identified that must be overcome for
Alfa Romeo to be successful in the Canadian market place and North
American market overall. The first is to develop strong brand recognition,
the second is to achieve market share in the North American and Canadian
market specifically, and finally the venture into Canada and North America
must prove to be profitable.
From the analysis, it is evident that as in Europe the North American
and Canadian market is fierce with competition. There are currently many
strong contenders in the market such as BMW, Mercedes-Benz, Audi and
other Fiat Chrysler Group subsidiaries.
potential for profits is great. From the SWOT analysis, the weaknesses and
threats point to a low market presence and strong competition, but the
strengths and opportunities show that there is room for success with the
launch of the brand with potential market share to be taken.
Four alternatives are being proposed, with the overall analysis pointing
to the initially opening two Alfa Romeo dealerships and sell through two non-
Alfa Romeo dealerships. This will allow Fiat Chrysler Group to capitalize on
existing customer base and to further grow and develop brand image
through the Alfa Romeo dealers. An implementation plan outlining the short,
medium and long term plans is described. A contingency plan is laid out to
analyze any shortfalls and how to best mitigate them.
Company Background/History
Originally, the company that would become the current Alfa Romeo
Company was founded in 1906 in France and known as Societ Anonima
Italiana Darracq (SAID). In 1910, it merged with an existing company from
Milan,
Italy
Anonima
Lombarda
Fabbrica
Automobili
(A.L.F.A.).
This
partnership continued until 1986 when it was purchased and became part of
the Fiat Group, now known as Fiat Chrysler Automobile Group.
The Alfa Romeo brand has had a strong sales history in Europe to-date.
But its success has been 90% based out of Europe. As such a strategy by
the Fiat Chrysler Automobile Group (FCA) CEO, Sergio Marchionne has outline
a strategy for the Alfa Romeo brand.
worldwide sales in 2014 has been revised twice, but it will be hard to even
return to 100.000 sales with just two volume models and one limited edition
sports car.
From this strategy, one of the first steps is to enter the North American
market, with Canadian market being entered at present. This is not the first
venture that Alfa Romeo has had into North America. In 1988, Chrysler and
Fiat, owner of Alfa Romeo, reached an agreement that named Chrysler to be
the exclusive distributor for Alfa Romeo in North America and easily allow
Chrysler dealers to sell Alfa products, which lasted until Alfa left the United
States in 1995.
Statement of Problems
With the reintroduction of the Alfa Romeo brand to the North American
market, several problems arise.
factors that will be necessary for the brand to achieve success in the North
American market and carve out a market segment for itself.
By meeting
these key success factors, Alfa Romeo will be able to grow and become
successful in North America.
factors identified for the Alfa Romeo brand looking to re-enter and develop in
the North American market.
The first identified success factor is to clearly and well develop the
brand in the North American consumers eye.
It is important to generate
awareness, this in turn will drive and develop the market share held by Alfa
Romeo in the North American sports luxury automobile market.
Market
brand and grow, it must show the sales numbers in a timely manner and as a
result there must be profits. If this is not realized, the sign is that the market
is not willing to accept a new product and as such will not be successful in a
full scale venture into North America.
automobiles on sale in North America, the net profits will be large, but will
give insight into how well the brand will perform.
Therefore, from these three key success factors by achieving them,
Alfa Romeo will be able to grow and succeed in the North American market.
Analysis
Brief History Overview
Cars were always a luxurious product in Canada, a product that is only
owned by the rich for luxurious purposes, up until the 1950th when World War
II ended, and economic growth started to take place in Canada making cars
more affordable to more people. In the 1960 th, as economic growth increased
more, the automobile industry started offering cars with different sizes and
started offering sports cars, and accordingly some cars were priced more
than others, and some cars were more luxurious than others creating the
luxury car industry.
Industry Overview
The luxury car industry products is divided into 3 categories:
The small size/entry luxury cars
The midsize luxury car
The small size luxury car, including sport utility cars (SUVs) include brands
such as BMW 3 series, Mercedes Benz C class, Audi A4, Lexus IS. The small
size luxury car industry has increased by 4.6% from 2013 -2014. The highest
percentage increase in sales was accounted to the Lexus IS brand, a luxury
sport sedan, with a percentage increase of 278% (Appendix 1)
The midsize luxury car industry include brands such as Acura RLX/RL,
Lincoln MKZ, and Cadillac CTS. The midsize car industry sales has decreased
by only 1.7% from 2013 2014. The Acura RLX/RL brands account for the
highest percentage increase in sales, which is equal to 1170% (Appendix 2)
The large size luxury cars include brands such as Audi A6, BMW 6 and 7
series, Mercedes-Benz S-Class & CL-Class, Jaguar KJ, Lexus LS and Porsche
Panorama. Sales of large luxury cars have increased by 42.2% from 2013
-2014.
Mercedes-Benz S-Class
&
CL-Class
accounts
for
the highest
depending on the brand, yet all luxury cars are priced at a minimum of
$50,000.
SWOT
Strengths
Unique style of vehicles
Strong brand name
Weaknesses
Low presence in world markets
Low number of distribution and service
centers
Opportunities
Growing Canadian luxury sports vehicle
market
Competitive pricing
No Alfa Romeo cars sold in Canada for
past 20 years
Threats
Competitors have strong brand image
Competing in well-established market
Few buyers in that specific segment
Shorter Canadian Winters may cause
problem in sales
As far as weaknesses, Alfa Romeo has just recently entered one of the
worlds biggest markets, the U.S. Alfa Romeo is still not as active in many
markets outside of Europe. Sales in the European market have been slow as
well due to no new models coming out and changes in consumer
preferences. With the new 4C and 4C spider, Alfa Romeo and analysts are
predicting a turnaround for Alfa Romeo and FCA.
The growing Canadian market for luxury vehicles is a perfect
opportunity for Alfa Romeo to re-enter the Canadian market. Further, with
the launch of Alfa Romeos new models, analysts are expecting a rise in sales
for Alfa Romeo. FCA and Alfa Romeo will have to deal with the existing
competitors in the Canadian market which include the Porsche Cayman and
Jaguar F-Type, along with other indirect competitors such as the BMW M3 and
Mercedes-Benz C63 coupe.
Porters 5 Forces
Threat of New Entrants
The luxury car industry is booming due to increase in generation X and
the increase in disposable income. Thats encouraging the new entrants into
the industry. Also, since other automotive companies usually have the
economies of scale and the capabilities to do so, they are encouraged to
diversify their product offerings and offer luxury cars to make use of the
increasing trend. Accordingly, the threat of new entrants is high.
Bargaining Power of Buyers
Buyers are high end Canadian Consumers, and whether they buy
directly from showrooms or from dealerships, they are not price sensitive.
Also, when high end Canadian consumers purchase a car, they usually favor
a certain brand due to its quality, reputation and brand awareness making
the switching costs to other brands medium. Plus, the fact that the demand
for luxury cars is increasing is creating a seller markets. Accordingly, this
makes the bargaining power of buyers low.
PEEST
market.
It
concentrates
on
the
Political,
Economic,
Political Factors
A company should consider all the legal issues, laws and regulations in
which the company survives. Canada is well known for its stability of
governments and harsh requirements on the safety aspects. All imported
cars must go through Canada Motor Vehicle Safety Standards.
On the other hand, the tax policy is quite straightforward. Based on
Canada Border Services Agency (CBSA) and transport Canada requirements,
5% of duty have to be paid and another 5% of GST afterwards.
Environmental
Canada has an uneven population distribution that south area has a
high density while the north is rather low. Subarctic and arctic areas are
mostly inhabitant due to extreme weather and ice-covered soil. Sports cars,
designed for speed racing on F1 games will may suffer a lot from long
Canadian winter. That is also the reason all-season sports cars such as Acura
TL and Audi A3 are welcomed in the Canadian market. Therefore the main
market for luxury sports car is tightened to the south and hard to extend.
Economic Factors
Canada is one of the wealthiest countries in the world that the
education is of high quality and the standards of living are pretty high as
well. The Median total income, by family type is $74,540 in 2012.
In general, Canada has a mature market of luxury cars and a stable
increase annually. The luxury vehicle market set yet another sales record in
2014 with 187,786 units and for the first time accounted for 10 percent of
the overall Canadian market. Under pressure of oil dependency and currency
alternation, prices of luxury cars in Canadian market are increasing from the
year 2014.
Social factors
VRIO
Value
Due to financial backing of Fiat Chrysler, Alfa Romeo has the resources
and capabilities that enable the firm to respond to environmental threats and
opportunities. With an approximate value of FCA of just under $20 Billion,
FCA has the ability to fuel Alfa Romeos growth. Since finance is one of the
biggest issues that companies like Alfa Romeo face, FCA can help make Alfa
Romeo successful depending on how the financing is used and the strategic
choices that Alfa Romeo management make.
Rareness
Competitors have similar capabilities but Alfa Romeo is more rare and
unique in the market. Many experts point to Alfa Romeos out of the box type
designs for the reason why Alfa Romeo has trouble reaching sales targets
and succeeding in the market. With Alfa Romeos new 4C, the company has
decided use the latest technology and carbon fiber parts in order to compete
with luxury vehicles in the same price range but also with much more
expensive super cars.
Imitability
Alfa Romeo is one of the few truly Italian engineered vehicles in the
market.
Other
Italian
made
vehicles
include
Fiat,
Ferrari,
Maserati,
Lamborghini and Lancia. Only the last two that are not owned by FCA. Italian
made cars are known for their high quality and craftsmanship, a trait that is
hard to imitate among vehicle manufacturers.
Organization
Firm organization has potential to exploit its resources and capabilities
in order to compete with competitors. Since FCA, one of the largest car
manufacturers in the world, owns Alfa Romeo, Alfa Romeo has a good chance
to succeed in its intended market.
After analyzing all aspects of the VRIO model, we can see that Alfa Romeo
has a clear competitive advantage and has the core competencies that will
help FCA and Alfa Romeo succeed in a new market like Canada.
Resources
Marketi
ng
Operati
ons
Developm
ent
Financial
Human
Corporat
Resourc e
es
Reputatio
n
Small
market
share
outside
Europe
Strong
supplier
relations
Large scale
facilities
Growing
Canadian
market
Plants
shared by
Ferrari
Pipeline
projects
include SUV
and small
sized sedan
Technological
partnership
with
Microsoft
Reputatio
n for high
quality
vehicles
Backed by a
$17 billion
dollar car
manufactur
er
Positive
relations
with
unions
and staff
associate
s
FCA has a
longstandin
g, reputable
history with
suppliers
and buyers
Competitor Overview
Alfa Romeo 4C has two major direct competitors that are Porsche
Cayman from Volkswagen Group, and Jaguar F-Type from Tata Motors Limited.
Further details about the specific models that are considered direct
competitors can be found in appendix 6.
Alternatives
For the re-entry into the North American market for Alfa Romeo, four
alternatives have been developed that need to be evaluated for success and
best fit for FCA Group. These three alternatives examine broad approaches
that could be taken by FCA that would best suit the re-entry into the
Canadian market. The fourth alternative to be considered is the do nothing
alternative, that is do not enter the Canadian market.
The first alternative to be considered is the option to sell the new Alfa
Romeo through two already established independent dealerships and to
open two exclusive Alfa Romeo dealerships in key market locations.
This
approach would create a strong and positive brand image through the use of
the Alfa Romeo dealerships by providing an exclusively Alfa Romeo
experience for the customer.
Finally these dealerships are already established and in fixed locations, FCA
would not be able to optimally position them for the Alfa Romeo target
market. This alternative is a medium-low risk approach.
The third alternative to be considered is to open four exclusive Alfa
Romeo dealerships in key areas.
Decision Criteria
Alfa Romeos corporate goals and structure should be considered when
analyzing which strategy is best for Alfa Romeo and Fiat Chrysler. The
metrics in the following decision matrix include Competitors Rivalry,
Profitability, Consumer Preference and Time to Implement. The scores are
ratings as to how well each dimension contributes to Alfa Romeos potential
Decision
Criteria
Competitor
s Rivalry
Profitabilit
y
Consumer
Preference
Time to
Implement
Total
Weight
Alternative
1 (Two
owned
dealers
and sell
through
two
dealers)
Alternative
2 (Sell
through
dealers)
Alternative
3 (4
showrooms
in Canada)
0.2
0.3
0.4
0.1
1.0
2.6
2.5
As evident in the matrix above, the benefit of Alfa Romeo opening two
dealerships of its own and selling through dealers at two other locations is
higher than compared to focusing solely on one method of entering the
Canadian market. The following information outlines the reasoning and
assumptions behind each criteria in the decision matrix:
Competitors Rivalry: The degree of competition varies depending on the
method of entering the Canadian market. By building your own dealerships
and selling Alfa Romeo exclusively, you may be competing against other
brands that have been well established in the Canadian market such as BMW
and Audi. These companies have a well-developed supply chain and have
experience operating within Canadian laws and regulations. Selling Alfa
Romeo vehicles through established dealerships that sell exotic cars will help
Alfa Romeo enter the Canadian market without having to deal with the
Implementation
Short-term plan: year 2016 ~ year 2017
Oakville, ON
Awarded:
Maserati
Store,
Oakville, ON
Maserati-Alfa
Romeo, ON
Greater
Toronto Area
Time
Summer 2016
Staf
Maintain
current sales
and technical
staff.
Training
Vancouver,
BC
Awarded:
FIAT of
Vancouver,
BC
Alfa Romeo
of Vancouver,
BC
Vancouver
Island &
surrounding
area
Summer
2016
Recruit
experienced
sales and
technical
staff from
local luxury
car dealers,
including
sister brands,
Ferrari and
Maserati, and
competitors
brands, i.e.
BMW and
Porsche.
Montreal,
Calgary,
QC
Branded
AB
Branded
LaSalle Alfa
Romeo
Alfa Romeo
Of Alberta
Greater
Montreal area
Calgary &
surrounding
area
Summer 2016
Before Grand
Prix
Recruit
experienced
sales and
technical staff
from local
luxury car
dealers,
including
sister brands,
Ferrari and
Maserati, and
competitors
brands, i.e.
BMW and
Porsche.
Summer
2016
Recruit
experience
d sales and
technical
staff from
local luxury
car dealers,
including
sister
brands,
Ferrari and
Maserati,
and
competitors
brands,
i.e. BMW
and
Porsche.
Start With:
An intensive one-week training for all sales and technical
staff.
Lead by a dedicated staff assigned by the parent company.
Aim to ensure the high quality service for Alfa Romeos
clientele.
Continue to:
Cars
(Appendix
2)
Target
Clientele
Ads Time
Advertise
ment
Channel
Advertise
ment
Contents
Sales and
profits
Sales units: Increase the sales to 670 units in the Canadian market (Appendix
10). We expect the majority of sales to realize in the British Columbia,
Ontario, and Quebec with a steady increase of sales in Saskatchewan,
Manitoba, Nova Scotia, New Brunswick, and Prince Edward Island.
Target market: Males will remain the primary market; and females will
become the potential market. Besides, more Millennials will grow into
working ages and might become new rich because of their success of
eBusiness. The desire to compensate themselves for hard working and early
success might drive sales in this younger generation. Thus, the importance
of Millennials will increase. To better serve the Millennials and the female
clients, we will recruit Millennials sales that share the same values and hire
female sales that better understand females concerns about cars to boost
sales and client satisfaction.
Commercials: Female clientele can be roughly divided into mother clients
and single professional clients. To increase the interest of mothers,
commercials of Sedan and SUV will stress how safe and stable the cars are
when moms have kids in them. For example, the kids will continue playing
happily without realizing that they are driving on a bumpy road. Slogan: Alfa
Romeo, for you and your beloved ones. To draw attention of young, single,
and successful professional women, focus on how the cars can extend their
feelings of being in control of their lives and enhance their experiences of
enjoying the adventures. Slogan: Alfa Romeo, the best lover on the road.
Public relations: Attend Grand Prix in Montreal every year to maintain
exposure to the public. Tourists go to Montreal for Grand Prix from all over
Canada every year. The quality of attention that Alfa Romeo could generate
during that week would be much higher than commercials as potential
clients could physically experience the excellent design and technology of
the car. In addition, sponsor MBA Games and Case Competitions in business
school across Canada. MBA graduates have a tendency to work in venture
capital and consulting firms and have a potential to become new rich. They
might appreciate the support offered by Alfa Romeo when it is in need and
would prefer Alfa Romeo to its competitors when they desire a luxury car
indeed.
Data collection and analysis: Children born after year 2000 will start to turn
into 20s since 2020. They could become a totally new generation from
Millennials. Alfa Romeo should start to collect and analyze data of this age
group to project their preference of luxury cars. This age group could become
a major client or influencer in another five to ten years. Understanding and
meeting their needs will ensure Alfa Romeos first mover advantage of
attracting and maintaining the youth market and enable Alfa Romeo to start
building brand loyalty in the younger generations.
Alfa Romeo could detect the new trend and follow it closely, the brand would
have a better chance to beat its competitors.
Contingency
If the sales of the first four dealerships did not meet the target after
one year, then research will be conducted to assess the reasons why the
sales target was not met. If the reason was due to a decrease in demand for
Alfa Romeo luxury cars, a decision will be taken accordingly. If the decrease
in demand is a slight decrease, then the 2 dealerships producing the least
sales will be closed, and only 2 dealerships will be kept.
If the decrease in demand was a medium decrease, then only the most
profitable dealership will be kept, and the other three will be closed.
If the decrease in demand was a sharp decrease, then Alfa Romeo will
close its 4 dealerships in Canada and leave the Canadian Market.
If the reason was due to fierce competition with other brands, then the
reasons why other brands are performing better will be studied. If the reason
is a better dealer-customer relations, then dealers and staff of Alfa Romeo
will be re-trained how to improve and exceed competitors customer service.
Training will be repeated, modified, and its results will be evaluated on
monthly basis.
If the reason was a better communication strategy, then Alfa Romeo
should do research on the best way to communicate and reach its
customers, take in consideration what competing firms are doing, and
develop a fierce and competitive communication plan accordingly.
If the reason was the quality and performance of Alfa Romeo compared
to its competitors, then more developments should be made to Alfa Romeo
cars to improve their quality, performance, satisfy their customers, and
outperform the competing cars.
If competition was still very fierce after one year, then Alfa Romeo
should close one or two of its dealerships depending on the decrease in sales
or leave the Canadian market at all.
References
1950. In Search of the Canadian Car. Web. Google. May 20, 2015
http://www.canadiancar.technomuses.ca/eng/frise_chronologiquetimeline/1950/
1960. In search of the Canadian Car. Web Google, May 20, 2015
http://www.canadiancar.technomuses.ca/eng/frise_chronologiquetimeline/1960/
Cain, Timothy. Small and Midsize Luxury Car Sales in Canada - February 2014
YTD. Good Car Bad Car. Web. Google. May 20, 2015
http://www.goodcarbadcar.net/2014/03/canada-luxury-car-sales-figuresfebruary-2014-ytd.html
Cain, Timothy. Large Luxury Car Sales in Canada - February 2014 YTD. Good
Car Bad Car. Web Google, May 20, 2015
http://www.goodcarbadcar.net/2014/03/canada-large-luxury-car-sales-figuresfebruary-2014-ytd.html
Cain, Timothy. Top 15 Best-Selling Luxury Vehicles In Canada - 2014 Year End.
Good Car Bad Car. Web Google, May 20, 2015
http://www.goodcarbadcar.net/2015/01/canada-best-selling-luxury-autos2014-sales-figures.html
Keenan Greg. Porsche leads rise of Canadas luxury auto sector. The Globe
and Mail. 18 February 2015. Web Google, May 20, 2015
http://www.theglobeandmail.com/report-on-business/internationalbusiness/european-business/porsche-leads-rise-of-canadas-luxury-autosector/article23062675/
http://fiatgroupworld.com/2013/05/04/alfa-romeo-sales-2012-full-yearanalysis/
http://left-lane.com/european-car-sales-data/alfa-romeo/
http://www.reuters.com/article/2010/08/23/retire-us-volkswagen-alfaidUSTRE67M26E20100823
http://business.financialpost.com/news/transportation/fiat-chryslerautomobiles-nvs-stock-surges-49-since-nyse-debut-but-analysts-arentimpressed
http://seekingalpha.com/article/3078086-alfa-romeo-is-the-finalpiece-in-the-jigsaw-for-fiat-chryslers-brand-strategy
http://www.thestar.com/autos/toronto_auto_show/2015/02/18/toront
o-autoshow-alfa-romeo-is-back-in-canada.html
The Formula Publications Team. (2014, June 12). Four Canadian Dealers
Awarded Alfa Romeo Franchises. Canadian Auto World. Retrieved from
http://www.canadianautoworld.ca/article/101460/
Chrysler Canada - The Attainable Supercar: All-new 2015 Alfa Romeo 4C
Coupe Delivers Groundbreaking Italian Design, Advanced Technological
Solutions and Supercar-level Performance. (2014, June 17). Fiat Chrysler
Automobile.
Retrieved
from
http://media.chrysler.com/newsrelease.do;jsessionid=1012E03166E5584943261B11CC948B8C?
&id=15731&mid=193
Fiat targets doubling profit by 2018 on upscale models. (2014, May7).
Automotive
News
Europe.
Retrieved
from
http://europe.autonews.com/article/20140507/ANE/305079993/fiat-targets-doubling-profit-by2018-on-upscale-models
Monzasports. Alfa Romeo 4C TV Advert. (2011, September 2). Youtube.
Retrieved from https://www.youtube.com/watch?v=z9Wdh2_HK50
Fiat Chrysler Automobiles. (2015, April 7). Canada 2015 ALFA ROMEO 4C
CUSTOMER PREFERRED CODE GUIDE.
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http://www.fcagroup.com/enUS/investor_relations/financial_information_reports/annual_reports/Pages/default.aspx
http://en.wikipedia.org/wiki/Millennials
from
Exhibits
Appendix 1
Small/Entry
Luxury Car
201 201
Februa %
%
February
4
3
ry
Chan
Change
2014
YT YT
2013
ge
D
D
Volvo C30
---
42
-100% ---
Audi A3
---
65
BMW 1-Series
---
250
Acura TSX
50
89
86 167 -48.5%
43.8%
Acura ILX
119
179
BMW 3-Series
593
626
-5.3% 967
Lexus CT200h
77
48
Infiniti G/Q60
34
37
-8.1% 52
BMW 4-Series
113
---
---
224 ---
---
Mercedes-Benz
CLA-Class
153
---
---
374 ---
---
Volvo V60
33
---
---
Mercedes-Benz CClass
372
534
928 927
30.3%
0.1%
Mercedes-Benz BClass
201
178
3.4%
Audi A5
113
136
221 213
16.9%
3.8%
Audi A4
419
357
4.5%
Volvo S60
73
78
Cadillac ATS
202
164
Infiniti Q50
231
117
Lexus IS
254
62
---
---
---
---
Total
3037
2962
2.5%
-100%
70
---
50
-100%
344 -99.7%
130
-25.7%
2
60
---
---
579 553
1
6
-13.3%
---
--4.6%
Appendix 2
201 201 %
Februa Februa %
4
3 Chan
ry
ry
Chan
YT YT
ge
2014
2013
ge
D
D
Mercedes-Benz R-Class
---
23
-100% ---
54 -100%
Infiniti Q70/M
26
20
69.2%
52
Cadillac XTS
34
52
67 112
34.6%
40.2%
Lexus GS
23
37
54
37.8%
Lexus ES
111
176
253 346
36.9%
26.9%
Acura TL
96
125
175 236
23.2%
25.8%
Volvo XC70
44
38
BMW 5-Series
111
140
Lincoln MKS
47
Hyundai Equus
Audi A6
53
55
Cadillac CTS
58
36
Mercedes-Benz E-Class
& CLS-Class
181
183
Volvo S80
Audi A7
54
41
Jaguar XF
58
45
28.9% 93
Lincoln MKZ
58
25
Acura RLX/RL
51
---
---
---
Total
892
1058
15.8% 77
83
90
61.5%
34.9%
14.4%
298 331
20.7%
10.0%
70
85.1%
0.0%
50.0%
920% 63
---
---
71 -1.4%
6
0.0%
40.0%
55 69.1%
1160
%
---
---
204 207
-1.7%
15.7% 0
5
Appendix 3
Large Luxury
Car
%
Februa Februa
%
201 201
Chan
ry
ry
Chan 4
3
ge
2014
2013
ge YTD YTD
Jaguar XJ
14
29
25
51.7%
64
60.9%
Audi A8
12
18
23
33.3%
33
30.3%
Lexus LS
12
21
25.0%
23
-8.7%
Porsche
Panamera
19
18
37
2.7%
BMW 6-Series
33
25
BMW 7-Series
16
Mercedes-Benz
S-Class & CLClass
67
25
---
---
---
Total
170
134
Appendix 4
5.6%
38
32.0% 60
43 39.5%
129%
24 62.5%
39
168% 185 51
---
---
---
263%
---
Appendix 5
Appendix 6
Direct
Porsche Cayman
Competit
ion
Models
Parent
Volkswagen Group
Compan
y
Origin
Germany
Jaguar F-Type
Target
Market:
Age
Current
Market:
Income
Level
Target
Market:
Gender
Campaig
n
Highligh
ted
Traits
Typical: 40 years+
New: Younger between
25-54 years old
Household
with
a
college
graduate:
$100,000+
Younger:
25-54 years old
Primarily Male
Primarily Male
-Fuel economy
City - 11.5 L/100 km
Hwy 7.9 L /100 km
- Drivetrain
Rear-Wheel-Drive
-Transmission Options
6-speed manual
7-speed dual-clutch auto
-Weight
1,655 kg to 1,685 kg
16
- Fuel Economy
City - 10.4 L/100 km
Hwy - 7.1 L/100 km
- Drivetrain:
Rear-Wheel-Drive
- Transmission Options
8-speed auto
-Weight
1,567kg to 1,594kg
$59,900 - $96,500
$77,500 - $117,500
# Of
dealersh
ips
Price
Ads
Channel
Traditional:
Radio,
Magazine
Digital:
Blog
Social Media
With high
income
level
of
disposable
24
Traditional:
Television, Article,
Magazine,
Newspaper,
Radio, Broadcast TV, Cable TV
Digital:
Blog
Social Media
Mobile Apps
Mobile Apps
Internet
Internet
Appendix 7
The Locations of Four Dealerships from 2016 to 2017
Appendix 8
Estimated Income Statement
Alfa Romeo Brand
For the year ended December 31st, 2017
Revenue
$3,413,760
Costs of goods sold (86.5%)
$2,952,90
2
Gross Profit
$460,858
Expenses
Selling (7.4%)
$252,618
R&D (1.5%)
$51,206
Other (2.6%)
$88,758
$392,582
Net income before tax
$68,275
Net profit margin (before taxes)
2%
Appendix 9
The Locations of 14 Dealerships
Appendix 10
Sales Target in Five-Year Plan
15,000 vehicles x (4 Canadian dealerships / 86 dealerships in North America)
=670 Vehicles.