20.12.2004

IzhAvto held a Conference for Dealers

Last week, the Izhevsk automobile factory, a subsidiary of the SOK Group, held a scheduled conference for dealers. It reviewed the results of the servicing and marketing network development in 2004 and plans for 2005.

In 2004, as a result of distribution system adjustment, identical ex-works prices for cars were established for all businesses. This made it possible to cut by 30% the sales of products through uncertified companies, as well as to reduce the risks of the end buyer.

As of now, the factory has 87 package agreements with dealers in place, which makes it possible to expand the geography of Izhevsk car sales. In 2003, the IzhAvto servicing and marketing network comprised 80 dealers; today, the domestic market has 94 sales partners of the car manufacturer in place. The dealer and branch network of the Izhevsk automobile factory covers 58 regions. In future, IzhAvto plans to expand the network to cover 70 regions.

The number of businesses engaged in after-sales maintenance of IzhAvto motor vehicles has increased by 95% as compared to 2003. Today, 58 regions in Russia have 249 companies offering after-sales service. In 2004, the IzhAvto service centres were granted the right to perform warranty servicing of VAZ cars. Moreover, the Izhevsk manufacturer made 20 contracts with businesses that have the right to service the KIA Spectra cars.

In September 2004, the management of the Izhevsk automobile factory decided to set up regional sales offices. “The local warehouse facilities to be set up under the system of regional offices are supposed to become a means of cushioning the seasonal fluctuations in demand,” said general director of IzhAvto OJSC Mikhail Dobyndo, “we now have 28 offices in place to handle regional sales. We plan to expand the chain of regional offices from Transbaikalia to Karelia.”

To improve the distribution system, the conference participants decided to have the outlets of the servicing and marketing network file orders for the cars required on a monthly basis starting in 2005.

The year 2005 will also see IzhAvto marketing departments launch a survey of regional markets and start providing regional forecasts, which will make it possible to better understand the needs and opportunities of the markets in Russia and CIS countries.