Automotive Industry Experience

Strategy development for an auto parts manufacturer: For a foreign manufacturer of auto parts, with operations in Europe, the U.S. and Australia, the team examined the cost structures, manufacturing technologies, and markets for the company's three product lines. While company management had believed that they had a unique distribution system, the consultants helped them realize their potential competitive strengths were in the ability to use global manufacturing and marketing approaches. One of the important changes resulting from the study was a plan for rationalizing the manufacturing of the primary product line between the one French plant and the two North American plants.

Service strategy study for an auto manufacturer: For a major international car manufacturer, Hamilton's President led a 9-month study of automobile service. The engagement included extensive consumer and dealer research and a "cross-industry" analysis of how service was performed in 20 different industries. As a result of the study, management embarked on a successful program to emphasize service, including service contracts, measurement of customer satisfaction, increased service training, and consideration of showcase company-owned repair centers.

Acquisition search for a large diversified manufacturer: Consultants performed a "search and screen" effort to identify potential acquisition candidates in truck and auto parts manufacturing for the automotive division of this large company. Independent companies as well as divisions of large companies were studied. The consulting team narrowed the search to seven companies and divisions which met a strict set of criteria. The client reviewed all seven, and eventually pursued discussions with two of the candidates.

Acquisition evaluation of an auto parts distributor: A diversified company seeking acquisitions in distribution-based businesses retained Hamilton's president to evaluate a particular acquisition candidate in auto parts distribution. Through field interviews in which the client was not identified, the consulting team concluded that the candidate had a poor market reputation. This information, coupled with the client's evaluation through direct negotiations, led to the client dropping this particular acquisition from consideration.

Market penetration for a truck parts manufacturer: For a manufacturer of truck brake components, consultants evaluated the company's position in the marketplace and determined the key factors in customers' buying decisions. As a result of this analysis, the company successfully reduced its dependency on a large, integrated component assembler to which it sold nearly half its output; it began at the same time to sell its components directly to truck and trailer producers. The company grew its sales volume and was able to streamline operations enough to halve its labor force over time; this success was partially attributable to having a base of sales spread over a much larger group of customers.

Market opportunity investigation for an automotive springs manufacturer: For a division of a diversified company, consultants examined a large number of segments in the auto springs market to determine segments where the division had not had much penetration. The result of the project was a game plan of priority segments for the new marketing and sales team to pursue.

Marketing strategy for a multi-line automotive parts manufacturer: Hamilton Consultants conducted a comprehensive marketing strategy evaluation for a leading auto parts manufacturer. The research phase involved surveys with warehouse distributors and jobbers to determine the client's image on product quality and service relative to competition. Personal interviews were conducted with senior management, marketing and sales staff, and key warehouse distributors. Parallel with Hamilton's efforts, focus groups were conducted with professional mechanics to identify opportunities for additional products and services. Besides a push for getting "back to basics" -- good quality and fill rate at a reasonable price -- strategy development also included: distribution plans for metro markets which the company had historically underpenetrated, tactics for dealing with the growing retail channel without alienating traditional aftermarket channels, and a means for improving linkage with the technicians through education.

Competitive assessment and product development process for a global automotive component manufacturer: Hamilton managed the development of an ongoing competitive assessment process for the manufacturer. The team identified information needs and sources, organizational responsibilities, and the application of results. The team also provided tools for quantitative modeling of competitive cost position. The assessment process integrates with product and process engineering activities to focus technical managers on sources of competitive advantage.

Market positioning and strategic analysis for an automotive metal stamper: Hamilton worked with a strong, mid-sized, automotive metal stamper on developing ways to add value to product offerings in light of heavy downward price trends. In this "job bid" environment, margins were eroding due to changing procurement practices by the "Big Three." A Hamilton team evaluated a move to subassembly work, including the acquisition of related technology, the identification of target subassemblies, a review of likely customers for such products, and the capital requirements necessary to transition to this new concept. As a result of the project, the company added engineering resources to bid more complete subassemblies and sought stronger relationships with key customers in order to be positioned to bid on more subassembly work. Technology acquisition plans are still in process.

National Accounts Sales Program and sales policy design for an industrial battery company: Hamilton staff studied key customer segments and sales and service operations for one of the largest suppliers of industrial batteries in the U.S. The project led to a redesign of sales policies, including commission splits, service programs, and field feedback from corporate offices. The project included the development of a new National Accounts Sales Program to attack the top 20% of industrial battery users through more integrated sales efforts, seamless support of key accounts, and more rapid response to service requests.

Marketing and distribution strategy for a tire wholesaler and retailer: For a leading wholesaler of private label tires, Hamilton analyzed the current business environment, identified future growth opportunities, and developed a distribution strategy to maximize sales and service while optimizing efficiency. Further, for their retail operation of over 300 tire stores, Hamilton developed a marketing and distribution strategy to support the chain's growth strategy in light of increasing competition from other retail formats, especially mass market discounters.

The consulting team interviewed customers, potential customers, store operators, and management and developed a model demonstrating the cost-service trade-offs between various distribution options. As a result, the company was able to select the most efficient distribution network to support its long-term growth strategy.