Volvo 2013 Annual Report Download - page 42

Distribution of net sales 2013
Sales of soft products
(services and aftermarket
products), 27% (27)
Sales of hard
products, 73% (73)
demanding transport and construction busi-
nesses. A testament to the strength of the Volvo
Group’s distribution and service network is the
market positions that have been attained.
Develop and increase interface
with customers
The majority of Volvo Group’s customers are
companies within the transportation or con-
struction industries. The reliability and produc-
tivity of the products are important and in many
cases crucial to the customers’ success and
profi tability. A competent and professional
dealer and service network, which makes sure
that customers’ vehicles and machines can be
used to the maximum and are free from
unwanted stoppages, is of vital importance for
the Volvo Group and assists in strengthening
the Group’s various brands.
The goal is that Volvo Group companies shall
be regarded as number one in cus-
tomer satisfaction, in terms of
both products and services.
The Volvo Group shall
also be number one
when the dealers’
customers
assess customer
satisfaction.
When customers choose a sup-
plier of vehicles or machinery,
the offering of supplementary
services combined with excel-
lent products is a crucial factor.
Customer surveys show that the Volvo Group’s
companies get high ratings in terms of service
and spare parts availability in most markets. As
important as getting the customers’ vehicles and
machines back in operation quickly, is the way
customers are treated. This does not apply to
just a specifi c workshop, instead customers must
be able to count on receiving the same, fi rst-class
service wherever they are.
The Volvo Group offers such services as
fi n a n cing and insurance, various forms of ser-
vice agreements, accessories and spare parts.
The Volvo Group’s increasingly broad range
ofthese services and aftermarket products is
ofever-increasing importance to the Group’s
competitiveness.
Strong market channels
The Volvo Group’s products are sold
and serviced through wholly-
owned as well as independent
dealers and service workshops.
In order to attain a market posi-
tion which is strong over the
long term, good products are
not enough. Of at least equal
importance is a fi nely -meshed
network of dealers and
service points that can
support customers in
WORLD-CLASS SERVICES AND DISTRIBUTION
Strengthen customer
relationships
Many customers want long-term cooperation around total solutions to execute
their work as effi ciently as possible with maximum profi tability and reliability.
Growing aftermarket business
In addition to vehicles and machines, the Volvo
Group’s offering includes various types of fi nan c-
ing solutions, insurance, rental services, spare
parts, preventive maintenance, service agree-
ments, assistance services and IT services. The
range and fl exibility 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 bal-
ancing the fl uctuations in the business cycle for
the Group. By strengthening the aftermarket
offering, profi tability and revenue sustainability
can improve for the Group throughout the busi-
ness cycle.
The strategy to increase sales of services and
aftermarket products is an important element in
the Volvo Group’s effort to achieve targets for
profi tability and growth, both in mature markets
and in the Group’s new markets. During 2013, the
services and aftermarket products business (soft
products) represented approximately 27% of
the Volvo Group’s net sales, which was unchanged
compared to 2012.
A GLOBAL GROUP 2013 BUSINESS MODEL
38