The document discusses how Diesel & Motor Engineering PLC (DIMO) focused on sustaining their market share in the commercial vehicle market in Sri Lanka following the end of the civil war. They achieved this through a customer-centric approach involving segmenting the market based on customer needs and expanding their customer reach across the country. This allowed them to position themselves as a total solution provider and stabilize their market share, outperforming competitors and overall market trends. Their approach was recognized through various industry awards.

1. CIMA Business Case Awards 2014
12th November 2014
Madurika Samarasekera
Varuna Jayasinghe
Prabodha Silva
How focusing on “their”
purpose served “our” purpose

2. Diesel & Motor Engineering PLC http://www.dimolanka.com
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• The end of the war opened up the market and all
economic factors affecting our industry was positive.
• Past experience showed it would be temporary.
• Focused our efforts on mitigating the effects of:
• Fluctuating interest rates and duty structures.
• New competitors.
• Volatility of USD exchange rate.
Our World changed
Defining our Purpose
Through a customer centric approach, ensure the
market share gained is sustained.

3. Diesel & Motor Engineering PLC http://www.dimolanka.com
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By bestowing a total service solution instead of a routine sales approach, how it
resulted in sustaining the Market Leadership gained
How we achieved our purpose

4. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleOur Management Approach

5. Diesel & Motor Engineering PLC http://www.dimolanka.com
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•Chairman
•CEO
•Board of
Directors
Direction
•General Manager
•National Sales Manager
•Head of Spare Parts
•Head of After-Sales
•Business Development
Conceptualizing
•General Manager
•National Sales Manager
•Head of Spare Parts
•Head of After-Sales Service
Disseminators
• Product
Managers
• Branch
Managers
Enforcers
• Regional
Operational
Teams
Implementers
The Instigators

6. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleHow we defined a Total Solution
(1) Understand
The business that our customers operates in and
provide the best matched product through the TATA
portfolio.
(2) Minimize lead time & add cost effective value
For the Product procurement process
(3) Continuous engagement
Ensure at the end of the product lifecycle the
repurchase will be within the TATA portfolio.

7. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleCompetitive Advantage
The range of TATA models
DIMO’s Diversified BUSINESSES

8. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Customer base
Financial strength Brand value
Competitive Advantage
Human capital

9. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleOpt to be different – “Serving their Purpose”
Customer Segmentation
Identify, Approach, Fulfill
Segment the market according to
their purpose – Application Matrix
Understand
Customer Reach
Geographic expansion of the market
Provide convenience & reliability
Closely engage with customers to
nurture a long-term relationship.
Minimize lead time
& add cost
effective value
Continuous
engagement
TOTAL SOLUTION PROVIDER
STRATEGY I STRATEGY II

10. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe PUSH Marketing Strategy according to geographical segmentation

11. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleStrategy I – The New Approach - Customer Segmentation

12. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Investigated specific
requirements of different
segments – E.g. Cement Industry
Strategy I - Customer Segmentation Initiatives

13. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Financing requirements of different segments
Strategy I - Customer Segmentation Initiatives
Training to staff on selling
“Solutions”

14. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleStrategy I - Creation of a new Segment
Restaurant Hair Salon
Ice Cream Vegetable Stall
The DIMO Batta

15. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Strategy II - Customer Reach
9Customer Interaction
Points
Year 2011

16. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Customer Reach
38Customer Interaction
Points
Strategy II - Customer Reach
Year 2014
Tripling our
Customer Reach
in 3 years

17. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Strengthening the Sales
Force
Customer Reach Initiatives
Strengthening CRM function
with a fully-fledged Call Center
After-Sales Network – 24-hour
Roadside assistance
Strategy II - Customer Reach Initiatives

18. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Market Share Stability
28%
35%
43% 44%
40% 39% 39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
08/09 09/10 10/11 11/12 12/13 13/14 Aug'14
TATA Market Share
Before After
Source: RMV data
In a market which showed a
negative growth of 2% from the
point of Year 10/11 to the
present, DIMO & TATA have
been able to stabilize our market
share.

19. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Market Share Stability
0
2000
4000
6000
8000
10000
09/10 - before
segmentation
13/14- after
(current)
8%
20%
TATA
TIV
LCV Market share growth - After
segmentation
0
100
200
300
400
500
600
09/10 with no CIPs 13/14 -with a CIP
11%
40% TATA
TIV
Area-wise market share growth with expanding
CIPs (Eg:- Ampara)
28%
35%
43% 44%
40% 39% 39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
08/09 09/10 10/11 11/12 12/13 13/14 Aug'14
TATA Market Share
Before After
Source: RMV data

20. Diesel & Motor Engineering PLC http://www.dimolanka.com
Click to edit Master title styleThe Success of our Approach – Qualitative Awards
Best Corporate Citizen Awards 2013
• Best Corporate Citizen - Overall Winner
• Social Sustainability – Winner
National Business Excellence Awards 2012
• Diversified Group of Companies – Winner
TATA Innovate Awards 2012
• Special Achievements in Mini Trucks and Pickups
• Highest Sales of Pickups in 2011-12
• Highest Sales of Mini Trucks in 2011-12 – 40,000+
units
• Achievement of Highest Sales of Full Built
Application Vehicles
• 2nd Highest Market Share for Mini Trucks for 2011-12

21. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Recommendations
• Customer Retention through After-Sales Services
• Managing the product lifecycle.
• Revisiting business strategies continuously.

22. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Build relationships by focusing on a
customer’s purpose
Key Learning Points
Being different rather than ‘competing’ is a
strategy that is worth adopting.

23. Diesel & Motor Engineering PLC http://www.dimolanka.com
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Customer
Requirements
Market Research Financial Strength
DIMO & TATA
Brand Equity
Business Partner
Relationships
Customer Centric
Approach
Sustainable
Market Leadership
Market
Segmentation
Tata Product
Range
Distribution
Network
Strategically
Aligned Training
Policies
Recap