Mitsubishi 2006 Annual Report Download - page 27

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MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Regional Topics—Japan
In the second half of the year, MMC plans to launch
new versions of the flagship models
Pajero and Delica ,
further boosting the company’s presence in the SUV market.
Another planned introduction is a non-turbocharged
version of the
i minicar to meet the needs of a broader
range of customers.
In May 2006, MMC launched a new promotional
campaign featuring Hello Kitty, the popular character
from Sanrio Company, Ltd., to reach out to customers.
The
Hello Kitty Campaign is encouraging more cus-
tomers to visit MMC dealerships in Japan.
Improving the Profitability of Domestic Sales
Companies
With the successful launches of the Outlander SUV and
i minicar in fiscal year 2005, MMC has taken the first
steps to win back customer trust. Building on this suc-
cess, the company aims to foster deeper trust and last-
ing customer satisfaction while returning operations in
Japan to profitability by enhancing services at domes-
tic sales companies. Through various initiatives and a
broad range of support offerings, MMC aims to surpass
the 300,000 unit mark for annual retail sales and re-
store sales companies in Japan to profitability.
•Strengthening Sales Force Effectiveness
Critical in strengthening sales effectiveness is increasing
the amount of contact with customers, boosting the
negotiating skills of sales personnel, and improving their
responsiveness to customers at dealerships. MMC is put-
ting stronger emphasis on role-play in sales force train-
ing and is also working to improve the coaching skills of
dealership managers to enable them to get the best out
of staff. A team of 13 training experts has been formed
to provide support to Japanese sales companies.
•Expanding Profits From After-sales Services
MMC recognizes that making dealerships consistently
profitable involves not only selling new cars, but also
generating greater profits from after-sales services. The
Hearty Plus Program has been developed to provide
customers buying a new vehicle with a package of main-
tenance and inspection services. Through this and other
measures, MMC is attempting to develop a base of cus-
tomers that routinely bring their vehicles to Mitsubishi
dealerships for various services. MMC is also seeking to
position used car sales operations as an additional profit
center through the establishment of standard operational
procedures and methods for staff. By improving the
management of these operations and establishing a
company-wide standard, business will be expanded.
•Rebuilding the Sales Network
MMC remains focused on cutting overhead costs and
boosting operating efficiency by consolidating and broad-
ening the coverage of Japanese sales companies and auto-
parts vendors. The sales company network stood at 158
companies, 855 branches at the beginning of April 2006,
down from 165 companies, 865 branches a year earlier.
Similarly, the network of auto-parts vendors shrank during
fiscal year 2005 from 13 companies, 65 branches to 9
companies, 59 branches. MMC plans to continue this
initiative in fiscal year 2006 to achieve further improve-
ments in sales company profitability.
A nationwide dealership renovation program is under-
way to make Mitsubishi dealerships more attractive to
customers. The redesign of advertising and company
name signage has now been completed at all dealer-
ships. The next stage of the program is the renovation
of dealerships buildings themselves.
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