Volvo 2011 Annual Report Download - page 47

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Growing aftermarket business
In addition to vehicles and machines, the Volvo Group’s
offering includes various types of financing solutions,
insurance, rental services, spare parts, preventive main-
tenance, service agreements, assistance services and IT
services. The range and flexibility of the offering means
that the solutions can be customized for each customer.
Since a large part of the offering within the aftermarket
business is requested as long as products are being
used, they contribute to balancing the fluctuations in the
business cycle for the Group. By strengthening the after-
market offering, profitability and revenue sustainability
can improve for the Group throughout the business cycle.
The strategy to increase sales of services and after-
market products is an important element in the Volvo
Group’s effort to achieve targets for profitability and
growth, both in mature markets and in the Group’s new
markets. During 2011, the services and aftermarket prod-
ucts business (soft products) represented approximately
23% of net sales in the Industrial Operations compared
to 27% in 2010. The extended product offering such as
used vehicles and machines, trailers and superstructures
and special vehicles were previously defined as soft products.
Starting January 1, 2012 these are instead defined as
hard products. The numbers above and in the pie chart
on page 42 reflect the new definition and the comparison
numbers have been restated.
Develop and increase interface with customers
The majority of Volvo Group’s customers are companies
within the transportation or construction industries. The
reliability and productivity of the products are important
and in many cases crucial to the customers’ success and
profitability.
The goal is that Volvo Group companies shall be regarded
as number one in customer satisfaction, in terms of both
products and services. The Volvo Group shall also be
number one when the dealers’ customers assess customer
satisfaction. A competent and professional dealer and service
network is of vital importance to the Volvo Group and con-
tributes to strengthening the Group’s various brands.
43