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1. #1 100% 12. Michelin Fleet New division for services under Euro
Solution (MFS) sales director. 3-5 year complete tire
2. #2 EXTERNAL 80%
Offer? management so buyers gain
2A)
1. peace of mind w/mo fixed payment
1. comp catching up in product
based on km's
performance
2. better control costs (unseen
2. mkt price going down
breakdowns)
3. first mover opportunity
3. benefit from Michelin's continuous
4. environmental considerations.
innovation
5. consolidation of transportation
Michelin gains
industry enables more -sophisticated
1. Long-lasting relationships
#2 INTERNAL and centralized customer to make this
2. Clients eventually understand their
type of decision.
value
2B)
3. Differentiate from competitor offerings
3. #3 90%
13. Michelin Fleet -MFS = comprehensive tire-management
4. #4 100% Support (MFS) solution offer
5. #5 80 (Service/Solution) -3 year long differentiation attempt, yet
to be profitable
6. Disappointing results? 3 years - 50 contracts - 10 countries
-Target: large Euro transportation
result = $70 million
companies
troubles selling the value of the
-Strategy: use smaller players for
solution/service
external growth first. (~1500 rapidly
7. European Roll-out growing, in hyper-competitive market)
14. Michelin -Worldwide leader in tire industry.
(Product-Driven) -Mission: contribute to the mobility of
goods & people.
15. Operational ISC: "Sales & Marketing-key to
Excellence & leveraging MFS success"
Managing Costs? Pierre Dupuis: "Success depends on
service execution!"
-Weakness is distribution network
complying w/terms.
(France & UK model) | (Europe roll-out)
-Relying on service providers to
8. EXAM QUESTIONS ANSWERED optimize tires means rely on them to
9. International Strategy 4 important marketing reasons for poor optimize cost-structure w/retread rate.
Consultancy (ISC) comes performance: -Re-Tread target = 70% ... lowest
in? 1. segmentation practices realization = 45%
2. selling
3. contracting
4. managing 3rd party relationships
10. ISC: Client Encouraged a "needs-based"
Segmentation/Contracting segmenting scheme to custom bundle
Process? the specific needs of customer.
-Contract (72 versions) must be
clarified/briefed
-simple comprehensive standards & fee
estimates
11. ISC: Turning distributors Build stronger relationships with
into close service distributors since they didn't want
providers? Michelin moving into service originally
-distributors FEARED client & revenue
loss
16. Organizational 20. T&B tires in the
Issues & eyes of their end-
hierarchy users? What is a
chart? tire? Why are
tires so important
for trucks?