Network strategy

The importer of a luxury car company wanted to strongly reduce the number of outlets, while improving the customer experience and service levels. MSR has been asked to jointly determine how many outlets are needed and to develop a roadmap to get there. Furthermore MSR investigated what the implications for the remaining establishments would be, and what changes should be made inside the organization and staff of the particular outlet in order to keep or improve the quality. Finally, we also calculated the financial impact per outlet.

Our approach

• The market: analysis of similar networks and developments in the industry
• Current network: analysis of current retail network
• Quality of the network: aap analysis consumer quality perception and desired experience
• Strategy: jointly develop vision and strategy (density and quality)
• Implementation: roadmap design and support during implementation

Tools

• Geographic optimization program

Results

• 50% reduction of all the outlets
• Margin improved by less intra-brand competition
• Profitability improved by higher volume per outlet
• Brand experience enhanced by stand-alone premium outlets