BUSINESS PLAN
Panama's Distributor
TABLE OF CONTENTS
Executive Summary Organization & Management Market Analysis Country and General Facts Political Outlook Economic Outlook The Automotive Market Total Market / Segment Top Ten Brands and Market Share Chinese Brands Competitors Network
Products Operation Plan Marketing and Sales Plan Portfolio Development Next Steps
Panama's Distributor
EXECUTIVE SUMMARY
“GAC Panamá” is planned to be formed in Panamá City, Panamá, in response to the following market conditions: Panama's Distributor
EXECUTIVE SUMMARY
Startup opportunities exist for importing and distributing GAC products in Panamรก. Panamรก have grown consecutively for the last 10 years. GDP growth for 2018 is estimated at a minimum 5,4% and the automotive industry is approaching to increase. The creation of a company to import and distribute GAC brand in Panamรก will be supported combining the experiences of executives and investors with extensive background in managing and developing successful businesses within the automotive industry.
ORGANIZATION & MANAGEMENT THE KEY STRENGHT: SOLID ALIGNED SHAREHOLDERS PMG strength will be based in the diversity and complementarities of its individual components, aligned to achieve a common objective. Shares will belong to two main groups, perfectly complemented:
MENDEZ GROUP Deep Understanding and Know How of the automotive business (former Nissan, Mitsubishi and all American Brands distributor) Experience in aviation business, real estate, construction, banking and ďŹ nancial business and agriculture.
ESKENAZI GROUP Is a group of companies devoted to exploring the most innovative projects with a view to their development and transformation into role models within each sector of the economy. Our main activities are: -Banking and Financial Business. Commerce in PanamĂĄ (Premium Brand Stores). -Free Zone Trade to Latin America (clothing, footwear, car accessories, construction tools and equipment, modular for storage, lighting). -Brand Management and Franchising to Latin America. -Real Estate Development (Commercial, buildings or housing in general) -Shareholder in Medical Center
OPERATIONAL ORGANIZATION Reporting to the General Director, PAG Panamรก will be organized into three main functional areas: Finance & Administration, Commercial management and After-Sales department. The Management Team & Board of Directors combine the experiences of executives with extensive backgrounds in managing and developing successful businesses within the automotive and premium product industries. GENERAL DIRECTOR
Finance & Administration Manager
Commercial Manager
BOARDS OF DIRECTORS
After-Sales Manager
MARKET ANALISYS Political Outlook Panama is an Independent, Panama has shown political Sovereign and Democratic State. stability, which has allowed it to generate sustained economic The Presidential period is 5 years. growth and a good atmosphere for The current President is Juan doing business. Carlos Varela, who must remain in charge until 2019.
Official Name: República de Panamá
Capital: Panama City
Population: Climate: It has a tropical climate, 4 million very hot throughout (BM 2016) the year.
Currency: US. Dollar
Major Cities: Panama City, David
Language: Spanish
Area: 75.420 km2
Main Sector: Main Exports: Bank and Agricultural Financial Services, products Logistics Services, Free Zone, Tourism
MARKET ANALISYS ECONOMIC OUTLOOK •Over the past decade, Panama has been one of the fastest growing economies worldwide. Average annual growth was 7.2 percent between 2001 and 2013, more than double the regional average. The Panamanian economy grew by 6.1 percent in 2014, coming down slightly to 5.8, 4.8 and 5.2 percent in 2015, 2016 and 2017, respectively. By 2018 the forecast remains at 5.4 percent, the highest in Latin America. •Private and public demand has been growing aggressively in the last 6 years and supports the economic expansion. •In the medium term, Panama’s growth is likely to remain one of the highest in Latin America. Public investments should also remain high, with planned construction of the second Metro line and expected additional traffic generated by the expanded Canal. Private investment should also remain strong. Prospects for high growth in the coming years are also supported by emerging opportunities for private sector-led growth in key sectors, such as transport and logistics, mining, financial services, and tourism.
THE AUTOMOTIVE MARKET
TOTAL MARKET & SEGMENT
TOP TEN BRANDS & MARKET SHARE
CHINESE BRANDS
COMPETITORS NETWORK
PRODUCTS
GA3: POSITIONING PAMANA: SEDAN B Competitors Kia Rio Hyundai Accent GL Toyota Yaris Sedan Nissan Sentra B 13 Suzuki Ciaz Chevrolet Aveo Honda City Ford Figo BYD F3 GAC GA3 Renault Logan Peugeot 301 Mazda 2
Sales 2017 3.251 2.702 1.572 741 545 366 200 176 88 30 25 20 19
GA5: POSITIONING PAMANA: SEDAN C Competitors Toyota Corolla Nissan Versa Kia Cerato Honda Civic Hyundai Elantra Mazda 3 Nissan Tiida Nissan Sentra B17 Chevrolet Sonic MG 350 Chevrolet Cruze GAC GA5 Volkswagen-Beetle Volkswaguen Jetta Subaru WRX Ford Focus Mitsubishi Lancer EX
Sales 2017 929 744 561 343 249 191 167 84 54 24 21 20 15 14 14 13 12
GA4: POSITIONING PAMANA: SUV COMPACT Competitors Hyundai Creta Nissan Kicks Suzuki Vitara Hyundai I-20 Active Honda HRV Nissan Qashqai Suzuki Jimmy Chevrolet Trax Mitsubishi ASX Toyota Rush Mazda CX3 Ford Ecosport GAC GS4 Subaru XV Suzuki Scross Jeep Renegade Renault Captur Kia Soul
Sales 2017 1.703 1.251 1.215 757 431 369 322 361 233 200 150 115 110 89 89 85 60 58
GA4: POSITIONING PAMANA: SUV SMALL Competitors
Sales 2017
Toyota RAV 4 Honda CRV Hyundai Tucson Kia Sportage Mazda CX5 Nissan X-Trail Suzuki Gran Vitara Mitsubishi Outlander Ford Escape Renault Duster Subaru Forester
1.981 1.638 1.391 1.279 670 594 241 194 175 144 133
GAC GS5 Volkswagen Tiguan Chevrolet Equinox Jeep Wrangler MG GS
90 76 72 19 10
OPERATION PLAN -Constitution of Distributor to GAC (PanamĂĄ or CA) -Homologation processes (products, emissions) -Negotiation to purchase plan, based on FOB Price. -Aftersales development: GAC Warranty. -Logistic development (freight, insurance, customs, local in bond). -Showroom opening in Panama City: Sales, aftersales (spare parts and workshop).
MARKETING AND SALES PLAN -Initial strategy is to communicate with strong actions that a new distributor is in place to deliver a dierent sales and after sales experience. -An important media campaign is necessary to launch the operations and have a strong base to start with the direct marketing actions.
Considerable marketing investment to maximize visibility: -Advertising campaigns (Media, cinemas, community manager). -Merchandise displays in dealer. Test drives and Road Shows for customers and prospects. -Panama Motor show 2018 to be evaluated as platform for launching
Direct Marketing Actions: -Extensive use of a PR Agency to maximize data bases and contacts utilization -Activities to be strongly oriented to a personalized approach strategy
Build an elite team of executives and industry professionals: -Our ongoing eort of building a team with backgrounds in automotive area -Competences development through continuous training for personnel
Build strong brand recognition: -The Company’s strategy is to promote, advertise, and increase its brand equity/visibility through a variety of marketing techniques including online advertising and promotions, public relations and development of business alliances and partnerships (Chinese Community)
Develop key strategic partnerships -Enter into selected strategic relationships in order to quickly build credibility as well as traďŹƒc to salesrooms / events. -This include partnerships with major magazines publishers, high level retailers, banks, Chinese companies, etc
-Provide a compelling presentation of products and services: Our salesroom layout and design will be customer-friendly and cutting edge in the eyes of our customers. We have strong and independent brand messages to extend to all aspects of the business and will truly provide an unrivaled purchase experience -Implement CRM programs and loyalty campaigns -Aftersales: Personalized service.
PORTAFOLIO DEVELOPMENT
NEXT STEPS
Time is critical for a successful take over: Take advantage of 2019MY, it’s the best opportunity to launch the GAC brand To consolidate a Business Plan, we require the following: -Retail Price: 20% - 30% down to Korean Brands. -GA3 Entry model: Retail Price $ 9.995,00 + ITBMS. -GA5 Entry model: Retail Price $ 13.995,00 + ITBMS. -GS4 Entry model: Retail Price $ 14.995,00 + ITBMS. -GS5 Entry model: Retail Price $ 19.995,00 + ITBMS. -GAC Warranty: 3 years / 100.000 km. Increase the time to 5 years.
Panama's Distributor