Best Practices For Automotive Retail

Reynolds and Reynolds CPO-Integrated Marketing Optimization Proposal
(Draft in Consideration of an Opportunity to Propose)
BMW of North America
Certified Pre-Owned
Integrated Marketing Optimization
Project Proposal for CPO-IMO Pilot
Submitted by:
Reynolds and Reynolds
Monday, July 28, 2003
Response to, and requests for information regarding this proposal draft should be directed to:
Donald Burlile
914-805-4473
Donald_Burlile@reyrey.com
- 1Confidential Property of The Reynolds and Reynolds Company.
Not intended for use by any other persons without the expressed consent of Reynolds and Reynolds

Proposed CPO Pilot Plan:

We will implement our Certified Pre-Owned Integrated Marketing Optimization program along with
BMWs CPO Business Processes at five (5) selected BMW retailers as a proof of concept. The pilot
project will validate the viability of the Reynolds and Reynolds installation and training methodology as
well as the CPO Integrated Marketing Optimization concept and product. Based upon successful
completion of the proof of concept CPO-IMO implementations, along with BMWs review and approval,
we will proceed with a national program for enrolling retailers and implementing Reynolds CPO-IMO
Business Processes to BMW retailers as designated by BMWs Certified Pre-Owned management team.
The pilot is designed to track and measure the results of a few select retailers to determine the potential
ROI of rolling out the initiative to the rest of the BMW retailer body. Based on extensive automotive
retail experience, we anticipate the CPO-IMO pilot will:
Reduce the average days in stock for the Retailers CPO inventory
Help retailers increase monthly CPO sales volume
Increase profits Per Used Vehicle Retailed (PUVR) for CPO sales
Increase the annual CPO inventory turn-rate of participating BMW retailers
Drive increased customer inquiries received by the Retailer in reference to CPO inventory
Improve customer perceived value from Retailer communications relative to CPO inquiries
Increase Sales Closing Ratios on CPO Business Opportunities delivered to retailers via
showroom visitors, incoming phone calls and Internet based customer inquiries
Prepare retailers to deliver a BMW Certified Pre -Owne d experience to their customers
Demonstrate the value proposition and ROI of CPO Integrated Marketing Optimization


Scope of Work Timeline Summary

Description:
Time Period:
1) BMW CPO Strategy and Process Integration

q RCS Catalysts assigned to the BMW Project to
work directly with BMW CPO ma nagement in
New Jersey for two days of BMW CPO-IMO
program development
q RCS Catalysts assigned to the BMW Project
work in Philadelphia for three days of BMW
CPO-IMO material development and editing to
align with BMWs CPO program
2) Reynolds Internal Preparations
4) Retailer CPO Operations Assessment, IMO

Strategy & Process Development Days
q One CPO Operations Assessment Day
BMW Pilot Retailer #1 Strategy-Process

6) Retailer CPO-IMO Launch

q 4 days CPO-IMO Launch Training per Retailer
BMW Pilot Retailer #1 CPO-IMO
Wednesday - Friday
Monday, Week 4 Wednesday, Wk 6

o Monday
Wednesday
o Monday
o Wednesday
o Wednesday
o
Week 4
Week 4
Week 5
Week 5
Week 6
Tuesday, Week 4 Friday, Week 6

o
o
Tuesday & Wednesday Week 4

o Thursday & Friday Week 4
Tuesday & Wednesday Week 5
Thursday of Week 4 Monday of Week 7
One Day of Training on Using IMO Process Tools

o BMW Pilot Retailer #1 IMO Training
o
o
o
o
o
Monday of Week 4 Friday of Week 6
5) Retailer IMO Process Tools Training

q
Monday & Tuesday
BMW Pilot Retailer #1 Assessment

Two CPO-IMO Strategy & Process

Development Days
o
o
o
o
o
3) Reynolds Project Management & Administration
o
o
o
o
o
Monday Friday of Week 2
o Thursday Week 4
o Monday Week 5
o Thursday Week 5
o Monday Week 6
o Monday Week 7
Tuesday of Week 5 Friday of Week 9
Launch
Launch
Launch
Launch
Launch

o
o
o
o
o
Week 5
Week 6
Week 7
Week 8
Week 9

7) Certified Pre-Owned Integrated Marketing Optimization Operations Growth

q
Ten Days of CPO-IMO operations Consulting

and Training for each BMW Pilot Retailer
Phase 1 CPO-IMO OPERATIONS
GROWTH Consulting Visits
o
o
o
o
o
o
o
o
o
o
o
o
o

OPERATIONS GROWTH Days 7-8

o
o
o
o
o
Week 7 through Week 11

Pilot Project Review & Wrap-up Meetings
Wednesday Friday, week 7


o
Delivered after completion of the 4

day CPO-IMO Program launch


o
Wednes day Friday, week 14

o
Wednesday & Thursday; week 14

o
Thursday of Week 29


1) BMW CPO Strategy and Process Integration

Purpose:
Catalysts assigned to the project will work with BMW CPO management to develop
comprehensive understanding of BMWs CPO program design including branding compliance
issues, program features and Retailer benefits, and BMWs unique value proposition to their
retailers. The Reynolds Catalysts will immediately follow their immersion into BMWs CPO
program by coming in to the Reynolds Philadelphia offices and further develop Reynolds CPOIMO materials, presentations and Retailer Toolkit based on their enhanced knowledge of the
BMW CPO program, their field experience and the Retailer best practices that are part of the
Reynolds CPO-IMO program. The goal is to assure close alignment with the core strategic
mission of BMWs CPO program while assuring that Reynolds Catalysts understand the key
components of the BMW CPO offering.
The Catalysts assigned to the BMW CPO-IMO pilot project will refine the CPO-IMO Projects
Tactical Blueprint, while crafting and documenting detailed action plans. These plans will be
specific to several of Reynolds and Reynolds trademarked Integrated Marketing Optimization
programs and will define the Whats, Hows, Whys, Whos and By Whens for each item on the
CPO-IMO Retailer Action Plan templates. The weeks outcome will include CPO-IMO
implementation tactical blueprint models for each area of the programs key objectives.
By the end of this week, the Reynolds CPO-IMO Catalyst team will:
Refine & Recast the definition of what Integrated Marketing Optimization means to BMW
CPO retailers within the key strategic components of BMWs current program.
Thoroughly understand BMWs required CPO processes.
Incorporate BMWs key CPO program Metrics within the Reynolds CPO-IMO program.
Produce the CPO-IMO presentation on the programs value to participating Retailers with an
emphasis on creating clarity regarding the answers to:
What is a CPO-IMO Retailer strategy?
How do CPO-IMO Retailer processes work?
What is in it for each BMW Retailer that gets on board?
How much does it cost to impleme nt CPO-IMO?
A detailed Retailer Action Plan Template that will document:
The Retailers development of an effective CPO-IMO strategy
The details of each participating Retailers unique CPO-IMO daily business processes
The progression and sequence of each Retailers CPO-IMO component implementation
Tracking the results of each Retailers CPO-IMO components throughout the project
Result:
These are specific to integrating BMWs CPO program into Reynolds IMO solution.
Refined CPO-IMO Tactical Blueprint materials including the following:
- Branding Reynolds people and program with the BMW core components
- Preparing the assigned Catalysts for specific BMW CPO program Deployment
- Establishing parameters for Reynolds to use when working with BMW Retailers
- Integrated Marketing Channel management manuals
Incorporate Documented BMW CPO best practices into implementation and action plans
Finalization of content for CPO-IMO Pilot Program

The BMW CPO-IMO pilot project manual for retail implementation

Commitment and buy-in generated from BMWs CPO Management Team
Logistics:
Conducted in Woodcliff Lake, NJ & Philadelphia, PA
2 Days for BMW CPO Strategy orientation and key component understanding (NJ)
3 Days for CPO-IMO Program materials development, customization and integration with
BMW CPO program objectives, terminology and key component references (PA)
The 3 day session in Philadelphia should be immediately following the Catalysts 2 days of
working sessions with BMW CPO program stakeholders.
Resource:
BMW
CPO Management Team
- BMW Corporate Policies & Procedures
- BMW CPO Stakeholders
- Selected BMW Market Managers who are CPO thought leaders
R&R:
- RCS Catalyst Leaders assigned to CPO-IMO Pilot Project - 5 days


2) Reynolds Internal Preparations

Purpose:
In preparation for the BMW CPO Integrated Marketing Optimization deployment, Reynolds will:
Create the curriculum and training materials for internal training.
Train our catalysts on the BMW CPO-IMO pilot program strategy and processes
Result:
RCS Catalysts are immersed in the BMW CPO-IMO pilot strategy and vision. They are ready to
begin the BMW CPO-IMO pilot retailer visits.
Resources:
1 RCS Project Manager
1 RCS Program Consultant
2 RCS Catalysts committed to the BMW CPO-IMO pilot program deployment
1 RCS Graphics Professional


3) Reynolds Project Management and Administration

Reynolds will employ strict project management processes throughout the life of this project to ensure
that information is not lost, issues are raised and resolved, scope is controlled, and the schedule is
maintained. High quality training and consulting are delivered in a reliable and cost effective manner.
a) Pre-Visit Communication
Purpose:
The purpose of the pre- foundation visit communication is to allow the catalyst to introduce
themselves to the retailers, confirm the scheduled training date, and inform the retailer that a previsit package will be arriving soon.
The components of our previsit communication are:
Pre-visit phone contact.
Pre-visit packet (includes letter to retailer, pre-visit checklist, agenda and roster).
Follow up phone contact to confirm packet was received
Result:
Effective communications with retailers regarding dates and expectations for each catalyst visit.
Resource:
1 RCS Project Manager
2 RCS Catalysts
1 RCS Scheduling Administrator
b) Administration
Purpose:
Reynolds will be responsible for coordinating all arrangements associated with the BMW CPO
Integrated Marketing Optimization Retailer Training Program to include:
Retailer Training Letter - we will schedule onsite training at each retailer. A follow-up
letter/fax will be sent to all participating Retailers outlining the dates, times and agenda for the
onsite training and consulting visits.
Field Notification a similar email/letter will be sent to all BMW Field personnel that work
directly with the Retailers in the pilot program.
Shipping - we will ensure the timely arrival of all training materials at each retailer.
Retailer Evaluation we will provide an evaluation document at the conclusion of the CPOIMO Process Assessment visit on day 1 and again after the Process Growth Day 10 visit.
We will distribute training status reports to BMW stakeholders and other applicable parties.
Retailer Action Plans we will prepare a detailed visit summary and Retailer Action Plan
(RAP) after each CPO-IMO consulting and training visit that the retailer will sign during the
exit meeting between the CPO Catalyst and the Retailer or GM on the last day of each visit.
o A signed copy of each Retailer Action Plan will be faxed from each Retailer by the catalyst
prior to leaving the retailer on the last day of each visit.


o The catalysts will utilize a dedicated CPO-IMO Project eFax number which will
automatically distribute each visits signed RAP to the Project Management Team at
Reynolds for post-visit review.
o Reynolds will set up a web accessible, password protected, online file storage account and
electronically store the signed retailer RAPs online within a file storage account accessible
by BMW CPO program management.
o At the conclusion of the project, Reynolds will supply BMW with a CD-ROM containing
electronic copies of each signed retailer RAP and the online storage account will be closed.
Project Management
Reporting:
Documentation & Distribution
Retailer Action Plans - Accomplishments during visit
Performance notes: IMO Implementation, Proficiency, Compliance, and Integration
Open Issues and future support needs and interest areas
Reporting and monitoring of onsite delivery phone contact to retailer personnel to discuss
the CPO-IMO pilot program processes and training to improve overall efficiency
IMO Strategy Utilization and results monitoring
Training satisfaction metrics
Escalation and resolution process
BMW CPO Pilot Project Status Meetings
Establish & Maintain a project management Action list
Manage timelines and budgets
Result:
Communications to all involved parties in regards to CPO pilot project status.
Resources:
1 RCS Account Manager
2 RCS Catalysts


4) Retailer CPO Assessment, IMO Strategy & Process Development Days

There are many CPO challenges and opportunities for retailers today. Our goal is to help them
identify their CPO-IMO implementation challenges and capitalize on their specific areas of
strength and business opportunity. In order to do this we first have to look at the retailers current
business practices related to developing CPO sales opportunities and once an opportunity presents
itself, the outgoing prospect management communications. We will assess these areas and
identify the challenges your retailers face in todays competitive market. Then, we can attempt to
turn these challenges into opportunities.
Purpose:
Present to the retailer the BMW vision, strategy and deployment plan. Communicate the phased
approach to the implementation of the CPO-IMO solution. Define and incorporate retailer
branding within the pre-defined processes. RCS Catalyst will train processes in preparation for the
CPO-IMO Integrated Marketing launch.
Result:
Assessment of current state of retailers CPO sales process analyzed
BMW vision and strategy communicated
Tactical plans developed specific to retailer including retailer branding opportunities
If applicable: capture and document retailer CPO Best Practices
CPO Evaluation Metrics collected and documented
Logistics:
CPO Operations Assessment, Strategy Definition and Process Development days are conducted at
the retailers facilities unless the retailer makes other arrangements for an offsite location.
1 CPO Sales Operations, Marketing & Prospect Management Assessment Day
1 CPO-IMO Strategy Definition & Process Development Day
1 CPO-IMO Retailer Action Plan Development Day
Resources:
Retailer:
Key management team including: Owner, General Manager, CPO Sales Manager(s), Used Car
Manager, Service Manager and Parts Manager
BMW:
Market Manager (optional)
R&R Resource:
RCS Catalyst 3 days per retailer
- 10 Confidential Property of The Reynolds and Reynolds Company.


5) Retailer IMO Process Tools Training

Purpose:
The CPO Integrated Marketing Optimization Tools Training insures that each participant has
access to all necessary technology tools prior to the scheduled launch date. Conducting this IMO
application focused training minimizes the risk of disruption to planned launch days due to
environment and/or retailer staff knowledge of all IMO Tools being used.
IMO Tools Training includes:
Browser based applications.
Specific tools provided to dealers by Web based IMO service providers.
Installation of updated tools required to use IMO processes
Installation and use of CPO-IMO email and vehicle listing templates
Result:
Validation that retailer is ready for CPO Integrated Marketing Optimization program launch.
Resource:
BMW Retailer:
CPO Manager
Used car Manager
Used Car Sales Consultants
General Manager
R&R:
RCS Catalyst


6) Retailer CPO-IMO Launch

Purpose:
CPO-IMO Integrated Marketing Strategy and Processes go live and it is now time for techno logy
and processes to be merged to accelerate the sales rate of Certified Pre-Owned BMW vehicles.
The Catalyst ensures that all committed Retailer staff are following IMO Integrated Marketing
processes and implementing the CPO Integrated Marketing Optimization strategies.
Result:
Daily execution of processes implemented through the use of CPO Integrated Marketing
Optimization to ensure accelerated sales rate and volumes. Prospect Inquiry responses are
launched on a live basis with RCS Catalyst working shoulder-to-shoulder with retail staff to
ensure lead management processes are being executed.
CPO-IMO Building Blocks
Sales Process Execution

Showroom Process
Incoming Phone
Incoming Internet
Unsold Follow Up
Create
CPO-IMO
Strategies
Define & Document

CPO-IMO Prospect
Response Processes
CPO-IMO Strategy & Process

Development, Infrastructure,
Roles & Responsibilities
CPO Integrated
Marketing Management
Skills & Insight
Logistics:
Retailer CPO-IMO Launch days are conducted at the retailer location.
Individual Retailer/Go Live Training Days
4 days for each pilot Retailer
Resources:
BMW Retailer:
All CPO sales managers, sales consultants and support staff
BMW:
Market Manager (optional)
R&R:
RCS Catalyst - 4 days per retailer

7) Retailer CPO Integrated Marketing Optimization Operations Growth

Purpose:
Insure ongoing compliance and improvement to CPO sales processes and execution
Result:
Upon completion of CPO-IMO Phase I, retailers will have business processes for the management
of Walk in CPO Prospects, Incoming CPO Phone Prospects, Incoming Internet Prospects and the
Unsold Follow-Up associated with the three inbound sources of CPO prospect contact and inquiry.
Technology Components:
Provides CPO managers with the knowledge, skills and abilities to manage their time invested
in harnessing Integrated Marketing techniques more effective throughout each business day.
Using access to lead management tools to manage inquiries from CPO prospects.
CPO Management will be coached on using available system reports related to CPO vehicle
aging, reconditioning and costing.
Assignment of new leads and customers to sales personnel.
Extensive familiarization with an extensive suite of Integrated Marketing resources such as
ebay motors, AutoTrader.com, CarsDirect, MSN Autos, Yahoo!, Dealer web sites,
BMWs CPO online listings, Kelley Blue Book Classifieds, CarFax and more
Establishing the right Reports will provide an analytical view of the management of vehicles,
marketing, pricing, prospects and sold customers.
Logistics:
OPERATIONS GROWTH days are conducted at the retailer location.
Individual Retailer Continuous Process Improvement (CPO-IMO GROWTH) days are
essential to the long term success of any retailers CPO-IMO implementation.
For maximum effectiveness, OPERATIONS GROWTH visits to the retailer:
- 3 days during second week following IMO Technology launch
- 3 days scheduled 3 weeks after first OPERATIONS GROWTH visit
- 2 days scheduled 4 weeks after second OPERATIONS GROWTH visit
- 2 days scheduled 6 weeks after third OPERATIONS GROWTH visit
Resources:
BMW Retailer:
All CPO Integrated Marketing Optimization process stakeholders
R&R:
RCS Catalyst - 10 days per retailer
The Reynolds and Reynolds /BMW CPO-IMO solution is proprietary to both BMW and Reynolds,
requiring Reynolds to train, set up and support the CPO Integrated Marketing Optimization solution


Best Practices For Automotive Retail

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Reynolds and Reynolds CPO-Integrated Marketing Optimization Proposal

(Draft in Consideration of an Opportunity to Propose)

BMW of North America

Reynolds and Reynolds CPO-Integrated Marketing Optimization Proposal

Proposed CPO Pilot Plan:

- 2Confidential Property of The Reynolds and Reynolds Company.

Reynolds and Reynolds CPO-Integrated Marketing Optimization Proposal

Scope of Work Timeline Summary

1) BMW CPO Strategy and Process Integration

4) Retailer CPO Operations Assessment, IMO

BMW Pilot Retailer #1 Strategy-Process

6) Retailer CPO-IMO Launch

Monday, Week 4 Wednesday, Wk 6

Tuesday, Week 4 Friday, Week 6

Tuesday & Wednesday Week 4

Thursday of Week 4 Monday of Week 7

One Day of Training on Using IMO Process Tools

Monday of Week 4 Friday of Week 6

5) Retailer IMO Process Tools Training

Monday & Tuesday

Monday of Week 1 Friday of Week 30

BMW Pilot Retailer #1 Assessment

Two CPO-IMO Strategy & Process

Monday of Week 1 Friday of Week 3

3) Reynolds Project Management & Administration

Monday Friday of Week 2

Tuesday of Week 5 Friday of Week 9

- 3Confidential Property of The Reynolds and Reynolds Company.

Reynolds and Reynolds CPO-Integrated Marketing Optimization Proposal

7) Certified Pre-Owned Integrated Marketing Optimization Operations Growth

Ten Days of CPO-IMO operations Consulting

BMW Pilot Retailer #1 CPO-IMO

Phase 4 CPO-IMO OPERATIONS

Week 7 through Week 11

BMW Pilot Retailer #1 CPO-IMO

Pilot Project Review & Wrap-up Meetings

Wednesday Friday, week 7

Wednesday Friday, week 8

Wednesday Friday, week 9

Wednesday Friday, week 10

Wednesday Friday, week 11

Week 10 through Week 14

BMW Pilot Retailer #1 CPO-IMO

Phase 3 CPO-IMO OPERATIONS

Delivered after completion of the 4

BMW Pilot Retailer #1 CPO-IMO

Phase 2 CPO-IMO OPERATIONS

Wednesday Friday, week 10

Wednesday Friday, week 11

Wednesday Friday, week 12

Wednesday Friday, week 13

Wednes day Friday, week 14

Week 14 through Week 18

Wednesday & Thursday; week 14

Wednesday & Thursday; week 15

Wednesday & Thursday; week 16

Wednesday & Thursday; week 17

Wednesday & Thursday; week 18

Week 20 through Week 24

Wednesday & Thursday; week 20

Wednesday & Thursday; week 21

Wednesday & Thursday; week 22

Wednesday & Thursday; week 23