bc hdwt update[1]
TRANSCRIPT
Competitive Environment• GM,Toyota,Ford and Dodge all have new pick up trucks – Volume
leader for domestics
• Retaining pick up truck market sales and maximizing new
opportunities are key to success
• All players are becoming more aggressive
• Domestics are reducing fleet sales while Nissan and Toyota are increasing.
• NFC – great opportunity to help bolster volume. Toyota sales increasing in market while other non GM are not
Market Detail
• RL Polk – Largest year over year decline in 2007 was from large fleet customers
• NFC as a percent to total increased from 66% - 69.4%
• In GVW 3 individuals registered over 50% of the units
• Small fleets/NFC drove the business for the first 9 months of 2007 Large fleets were out of market
• Non Fleet Commercial market is stable and not as volatile as large fleet
Industry Segment Size
Full Size Pick Up Registrations (DEC 2005 – 2007 CYTD)
CYTD Retail Registrations
GM Y-Y Change Ford Change Dodge Change Toyota Change Nissan Change
2007 584,149 -3% 408,409 -20% 284,198 -6% 167,603 48% 53,103 -15%
2006 603,651 -10% 509,493 -15% 303,431 -9% 113,521 0% 62,681 -16%
2005 673,484 602,637 335,085 113,479 74,909
Note 52,219 of these customers were business use customers registering in name
CYTD NON Fleet Firm Registrations
GM Change Ford Change Dodge Change Toyota Change Nissan Change
2007 118,781 2% 81,168 -11% 24,352 -9% 16,209 91% 1,908 -21%
2006 116,586 -3% 91,679 -11% 26,698 5% 8,489 3% 2,406 -20%
2005 120,207 103,310 25,309 8,222 2,989
NFF Percent to Retail
2007 20% 20% 9% 10% 4%
2006 19% 18% 9% 7% 4%
2005 18% 17% 8% 7% 4%
Business Use at 29 % when adding in individuals registering in their name
CYTD Fleet
GM Change Ford Change Dodge Change Toyota Change Nissan Change
2007 103,096 -15% 122,269 1% 32,618 1% 5,299 57% 5,646 108%
2006 120,994 7% 119,429 6% 32,264 7% 3,377 34% 2714 17%
2005 112,910 112,414 30,126 2,529 2,314
December CYTD Registration
RETAIL FULL SIZE PICKUPS
0
200,000
400,000
600,000
800,000
GM 584,149603,651673,484
FORD 408,409509,493602,637
DODGE 284,198303,431335,085
TOYOTA 167,603113,521113,479
NISSAN 53,10362,68174,909
200720062005
December CYTD Registration
NON FLEET FIRM PICKUPS
010,00020,00030,00040,00050,00060,00070,00080,00090,000100,000110,000120,000130,000
GM 118,781116,586120,207
FORD 81,16891,679103,310
DODGE 24,35226,69825,309
TOYOTA 16,2098,4898,222
NISSAN 1,9082,4062,989
200720062005
GM Business Choice
Business Choice Metrics – 2007 Volume
• Over 3 million customers to date
• Over 250,000 units sold – 10% incremental (25,000 units)
• Roughly 171,000 of the total deliveries were pickup/chassis cabs
• Significantly improved GM non fleet pick up market share to become pick up leaderLead NFC at 41 % - was 26% at inception (94) Incrementally consistently above 10%
Business Choice Metrics – 2007 Financial
• Over $2 billion in net contribution margin
• Average cost $625. Total $156 million • Net contribution of 25,000 incremental units $225
million
• Incremental sales covered cost of program plus left $69 million in additional profit
• Lowes and Best Buy contributed $800,000 in marketing funds plus value of communication assets
Why is Business Choice So Effective?
• Branded Easily communicated, reinforcing its importance Not hidden in other divisional programs and communications
• Customer Perspective Positive perceived value Relevant and motivating offers that last
• Financial Perspective Lower incentive cost providing “more for money” resulting
from enhanced partner discounts
• Increased customer exposure utilizing partners communication channels, financial resources and assets
Lowe’s Asset Wheel
2006 Pilot2007 FTC
Hard Day’s Work Tour
• Objective Help launch Silverado/Sierra -TX pilot Help launch the Heavy Duty Silverado/Sierra and HHR panel - FTC Take the Business Choice to the customer in environments that are relevant and
non threatening Sell key products and document sales Leverage unique marketing opportunities
at key job sites Blunt Toyota Inroads
• 80 Events TX Pilot - 125 Events FTC
(Lowe’s, dealerships and job sites) Texas attendance 4,000 FTC attendance 70,000
• Lowe’s contributed
$450,000 (pilot) - $650,000 (FTC)
2007 Hard Day’s Work Tour
• Traffic Drivers FREE Food, beverage, tool giveaway 2 GMC – 1 Chevy Vehicle sweepstakes $500 Onsite Certificate TX pilot $250 Onsite certificate FTC
• Tour Sales 25% return TX pilot – 15% return FTC 1,000 units in TX pilot, 5,000 in FTC