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Andy Palmer CEO Aston Martin

Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

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Page 1: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Andy PalmerCEO

Aston Martin

Page 2: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

May 2015

3

The Reinvention of Aston Martin

Dr. Andy Palmer

Chief Executive Officer

Page 3: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Voted UK’s coolest brand 5 times since 2006 (CoolBrands®)

Reputation Products People Culture Image

Our identity. Our passion. Power Beauty Soul

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Reinvention of Aston Martin as a luxury Brand that makes automobiles

Page 4: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Luxury market growth is expected to continue; moving to BRIC markets

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280 299 319351

2011 2012 2013 2014E

Luxury Cars Market Trend (€B)(Bain & Co Global Luxury Goods Worldwide

Market Study)

Locations of HNWI

Africa Middle EastLatin America EuropeAsia-Pacific North America

0

5

10

15

20

25

30

35

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

Global HNWI Growth(CapGemini Lorenz Curve Analysis)

Individuals

(Millions)Locations of HNWI

Africa Middle EastLatin America EuropeAsia-Pacific North America

2000 2050

The population of HNWIs has

the potential to double by 2050

Location of HNWI(CapGemini Global Wealth Report Extrapolated)

+7%+6%

• Luxury car market projected to post solid growth, driven by “high-end"

segment and emerging markets

- Especially Brazil, India, Middle East and China where luxury cars are still

perceived as "social enablers"

• 360° customization trend: from product to services

- Customers are choosing to customise their vehicles doubling or even

tripling the basic price tag

- Personalisation extended also to financing structure and after-sales

services

• Super luxury SUVs as a new emerging segment in which several high-end

carmakers will compete in the coming years

• Connectivity and ergonomics as "the two hot topics" in the industry

+10%

Page 5: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Our ‘Second Century Plan’ is targeted towards ensuring our sustainability as a luxury business

Second Century Plan

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Phase 1:

Stabilisation

Phase 2

Core Strengthening

Phase 3

Portfolio Expansion

Sustainable Luxury Business

Page 6: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Exclusive luxury cars will remain at our core; new luxury models will ensure sustainability

3-Pillar Portfolio Strategy

Power Beauty Soul

Sports SedanNext generation of 4-

door sports sedan to

compete with Rolls-

Royce / Bentley

To be funded from

future cash-flows

Sports CarsRenewal of sports car

range with iconic cars

with unmistakable

design and increased

visual differentiation

between products

X-Over GTAthletic and

dynamic GT with

increased usability

targeting female

HNWIs

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Page 7: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Inspiring Customer

Focused Product

Replacement of current product portfolio with new competitive luxury

products focused on a diverse global customer base

Strengthened Global

Brand & Sales Power

Power Beauty Soul will be recognised internationally as defining

Aston Martin luxury; driving the business and global sales growth

Leadership in Cost

Control

Sustainability depends on robust cost control, ensuring value add is

in everything we do

Enhanced Quality The foundation of being a great brand is in the quality of everything

we do – product quality, service excellence, customer experience

Passionate and

Professional People

The culture of the team that is the Aston Martin family – employees,

our dealers and brand partners defines Aston Martin

Financing & Funding Ensure delivery of the vision through funding activities, delivering

sustainable positive cash flow after 2017

‘HOSHIN KANRI’ (Policy Deployment)

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Aston Martin: A Sustainable Luxury Business

Page 8: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Aston Martin and ‘The Art of Living’

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Proven Pricing Power

An increase in Average Selling Price of 63% since 2007

Ability of halo products to command ultra-high prices

Strong second-hand values of halo products and classics

Brand Exclusivity

Exclusive yet visible

High-end dealer showrooms with equivalent luxury experience

Money can’t buy experiences

Product Desirability

Design leadership: assertive, distinctive style

Sensory superiority: materials, craftsmanship & sound quality

Competitive performance, technology and feature specification

Bespoke products & personalisation via Q by Aston Martin

70

114

2007 2008 2009 2010 2011 2012 2013 2014

Average Selling Price (£k/unit)

+63%

Page 9: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Knowing Our Customers

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New Luxury Customers Cultivating Relationships

Personal Experiences Exclusive Club

Sophisticated engine

supporting cultivation of

long-term 1:1 relationships

Salesforce engaged as our

system partner

Omotenashi: every

encounter single and

unique

Anticipating needs;

exceeding expectations

Private club

membership for

VVIPs

Page 10: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Consistency: Luxury is now beyond the product

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Page 11: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

End-to-End Customisation: The luxury business versus the mass market

LUXURY MARKET MASS MARKET

Detailed and bespoke product specification and ordering

process

‘One Click to Buy’

‘Omotenashi’; there when you need; anticipate needs

and wants

Self-service; algorithmic purchase suggestions

Collections; caretaking for future generations;

provenance

Disposable; always something new coming along; in-

built obsolescence

Direct relationship with the company; access to the CEO Out-sourced and off-shored customer call centres; on-

line FAQs

Visit the factory/workshop; meet the craftsmen and

women

Made in [?]; automated mass production

Surprise gifts, social events; previews and exclusive

access

Loyalty schemes – collecting points and coupons

Attractiveness of a compelling and relevant story Same

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Page 12: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

Dealers remain essential interface with customers

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Network of 155 dealerships world-wide : Presence where the customers are, consistent experience

Future: Dealer partners not only investing in facilities, but also service, personalisation and customer relationships

Dealer network has

expanded 2.5x

since 2000

70% of our dealer

partners have been

with us for over 20

years

Our longest

relationship extends

almost 65 years

Page 13: Andy Palmer - Automotive News · 2018. 11. 21. · Luxury market growth is expected to continue; moving to BRIC markets 5 280 299 319 351 2011 2012 2013 2014E Luxury Cars Market Trend

The Reinvention of Aston Martin

Continue to position Aston Martin as a luxury brand that makes beautiful cars

Ensure relevance for a new generation of HNW customers

Satisfy demand for experiences as well as product – wherever our customers are

Our dealer partners remain an essential enabler to delivering end-to-end service

excellence and personalisation

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