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Insights Supporting Our Success How can we make products safer? What can we do together to make products safer? 2 Managers Conference 2017 601 Total Work Related Injuries We reduced serious injuries by Insights over 41% YOY “Aspiring to Zero Supporting our Success injuries ” Managers Conference 2017 Managers Conference 2017 1 Success through Partnership and today is Continued development of our trade business about recognising our partners support ORIAS NRA Omni NRA Safety Multichannel Retailer 2016 2016 OUR JOURNEY SO FAR : 2017 winner 2005: First Trade Accounts 2009: Trade Discount Card launched Young Retailer Australian Auto 2012: Full service model trialled Auto Trade Direct Roy Morgan Aftermarket of the Year 2015: Trade consolidated into a single program Customer Satisfaction Award Certificate of Achievement 2016 Supercheap Auto Trade Direct 2016 2016 Most Innovative Digital Auto Store of the Year Marketing Campaign Andy Bentzen SCA “Big Break Competition” FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Managers Conference 2017 Managers Conference 2017 Spontaneous Recall: Above all competitors Store Brand Attributes – Above all competitors Q1a & b. Thinking about the auto parts and accessory stores where you would go to buy these types of items, Q13. Thinking about auto parts & accessories, please indicate which of these stores you associate which stores can you think of ? Are there any others? with the following… you can nominate as many or as few statements as you like for each store. Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 64 Statement 60 Q4 All values are % SCA % SCA % SCA % SCA % Repco % Repco % Repco % Repco % SCA 61 59 Q3 Stocks well known, quality products 54% ↓ 57% 53% 62% ↑ 41% 43% 42% 47% Is an car care/car accessories specialist 60% 61% 59% 62% 43% 43% 42% 50% ↑ 50 Q2 46 Is good value for money 54% 57% 54% 61% ↑ 25% 26% 20% ↓ 29% ↑ Repco Q1 46 Is a one- stop- shop for auto parts & accessories 61% 60% 60% 61% 35% 38% 33% 42% ↑ 45 Stocks a wide range of products 55% 62% ↑ 59% 60% 32% 39% ↑ 36% 42% 37 36 Is a convenient place to shop 52% 55% 52% 58% 31% 30% 25% 30% Autobarn 36 31 Has a good layout for finding what I want 50% ↓ 52% 49% 55% ↑ 28% 30% 26% 30% Supercheap Auto is the brand most Has knowledgeable and experienced staff 52% 56% 50% 54% 37% 45% ↑ 38% ↓ 43% 31 35 likely to be attributed to advertising Always has good specials 51% 53% 46% ↓ 52% ↑ 23% 24% 21% 25% Kmart 32 30 that is spontaneously recalled. Repco Easy to find someone to help me if I need 49% 50% 46% 51% 30% 35% 27% ↓ 35% ↑ Has friendly and enthusiastic staff 47% 52% 47% 51% 29% 36% ↑ 30% ↓ 33% 8 8 and Autobarn are secondary. Always has what I need 47% 50% 46% 50% 24% 26% 24% 29% ↑ Auto One 6 8 Is an enjoyable place to shop 45% 48% 43% 48% 26% 28% 24% 29% ↑ Stocks mainly low cost, lower quality products 32% 35% 36% 38% 14% 14% 12% 14% Q4‘15-16 n=550, Q1 ’16-17 n=550, Q2 ‘16-17 n=550, Q3 ‘16-17 n=550, Q4 ‘16-17 n=551 Stocks more than just car care/car accessories 30% 28% 25% 25% 15% 13% 12% 11% Managers Conference 2017 Managers Conference 2017 2 Supercheap Auto Strategy on a Page OUR VISION Inspiring you to live your passion Supercheap Auto offers value customer focused ranges, services solutions for the car OUR PURPOSE garage shed & other mobility needs. We strive to be first and best for new, providing an engaging experience, while allowing you to communicate, socialise and shop your way Our Market Leadership in Service Retail Leadership Digital Trade Growth OUR STRATEGY Leadership Engagement Our World 2018 2020 +2022 Enhanced DIFM solutions, increasing The ultimate Mobility retailer providing Seen as the ultimate point of social community connections an ecosystem for all mobility needs connection for all mobility needs supporting customer loyalty moving towards DDA Subscription STRATEGIC based solutions Providing owned, shared and leased solutions for customer and is Enhanced capability to rapidly deploy Seamless enablement to provide the communities VISION skills -capability to enhance team team and customer with the ultimate development and customer point of connection for solutions A Community that is sought out for experiences inspiration & learning social interactions & solutions GROUP Seamless Actionable Agile & Engaged & Strong & CHANGING? Future Omni-Retail Customer Efficient Capable Sustainable SUPPORTING Organisation PILLARS Capabilities Insights Supply Chain Team Foundations Managers Conference 2017 Managers Conference 2017 Strategic Focus towards and beyond 2020 Industries Effected SCA Performance: Auto Government / Market Competition Average 10yr Our Market Car Ownership Disruption Growth is 6.2% Our World It’s Changing Historical levers of differentiation (range and price) will no longer be enough. We now need service solutions, owned and third Implications party for Building a stronger emotional connection with customers is critical – built around their passions for their leisure activities Supercheap We have a significant advantage through connecting our customers with our team members who share their passions Auto Organisational capabilities have to be World-Class not Australasian class Safety Engagement Customer Focus Loyal Customers Evolution Success Factors All these business sectors will be effected 1.95 Million Managers Conference 2017 Managers Conference 2017 3 Shared Personally Autonomous Owned Industry Consensus - Uber Driver-Driven - Car Next Door Personally Shared Owned Driver-Driven Autonomous Managers Conference 2017 Managers Conference 2017 Amazon CONSIDERATIONS OUR STRENGTHS • Teams • Automotive is 1% of Amazon Sales – • Locations • Size - $136 Billion, $7.1 Billion in Predominately consumables and parts • Customer Experience Delivery Our Customers want: Australia NOW • Brand – Distribution & Market Positioning • Seamless Omni Retail • Brand’s regional price models • Brand Partnerships • Width of Range • Dynamic Pricing • Known for Value • Amazon website is a point of reference for • Price Beat Policy • Convenience search • + 60% of Customers use Click & Solutions • Amazon’s perceived value Collect • Value - Price Leadership Total Amazon sales projected to be $4 billion at Customers’ require maturity • Prime – Community, Free Delivery • Immediacy Assuming Amazon achieved $4 billion, their Inspirations • Information • Marketplace – Infrastructure & Automotive sales would be $40 million • Team Advice Supply Chain against Australian Auto market of $5.4 • Support, e.g. services and diagnostics billion / Health Checks Confidence and Value 15 Managers Conference 2017 Managers Conference 2017 4 Our customers voice- Real club members with real customer experiences Have you personally worked on your car in the last 3 months/purchased car care/car accessories? 100% Q27 – Q38 Scott, Q1 – Q14 Scott & Barry Q15 – Q26 Scott, Barry, Maureen & Barry, Alex, Cathy Herb & Herb 80% NB. Q27 Criteria changed from those who work on their car to those who purchased something from the category (in keeping with Roy Morgan 60% 55% 54% 55% 55% 53% 54% 52% 50% segmentation). 49% 48% 49% 47% 41% 39% 40% 35% 31%31%31% 28% 30% 25% 27% 27% 21% 23% 23% 23% 19% 19% 18% 20% 14% 16% Sample: Category participation relative to general population 0% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10Q11 Q12Q13 Q14Q20Q22 Q23Q24Q25Q26 Q27Q28Q29Q30 Q31Q32Q33Q34 Q35Q36Q37Q38 Feb Feb Feb Feb Feb Feb Feb Feb Feb 2008 2009 2010 2011 2013 2014 2015 2016 2017 Managers Conference 2017 Managers Conference 2017 Our OPPORTUNITY is to EVOLVE focusing on Omni-retail We need your help – Speed of Order to Ship DIY DIFM DDA Have the best offer 12 - 18 months 18 months + products mechanical services information services ‘supplies’ limited supplies go to you • NPS – 54.45% • 90 minute click & collect no service (longtail online) subscription models • Services grew 67% • Pick Up Point trial • Customer Orders grew 17.32% • Australia Post implementation appeals to the hard core appeals to ‘mainstream’ - little appeals to the next gen car enthusiast to no experience buy (digital native) • Hub store efficiency project • Delivery packaging review HORIZON 1: NOW HORIZON 2: NEXT HORIZON 3: LATER Managers Conference 2017 Managers Conference 2017 5 Services and Solutions building beyond F18 Automotive Servicing... POWERED BY SCA Booking Platform • Strategic Joint Venture between Bosch and SCA has been agreed Book In-store • 10 workshop proof of concept Service • 1st workshop opening in H1 of FY18 Partner Outbound Services Tyre fitting Cosmetic care and repair Windscreen Diagnostic and repair/replace telematics Battery fitting In-car tech installation Managers Conference 2017 Managers Conference 2017 My Actions deliver our Customer Experience Club Members – Projection for F18 Seamless NPS Customer Store Evolution • Continue to grow beyond 2 million; Experience Empowerment Commitment • Focus on experience to deliver value to Club Members, which drives sales/value Retail 400,000 Leadership 1,986,668 350,000 STRETCH TARGET 300,000 Delivery Instore Outbound Full Service FORECAST TARGET 250,000 • To Store Tyre Fitting Battery fitting Automotive • Parcel Lock Servicing Service & Cosmetic care • Urgent and repair 200,000 In-car tech Solutions Delivery Book In-store Service installation Windscreen • Standard repair/replace 150,000 Delivery + 63 MORE! Diagnostic and Telematics 100,000 NZ Total 369,416 Digital Connection Social Activations Club Customer Communities 1,614,527 Digital 50,000 AU Total 1,617,252 Social - Community 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930 31 32 33 34 35 36 37 38 39
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