arkusnexus

Innovative Cloud

Channel Incentive Platform

TIRE MANUFACTURER

executive summary

This Case Study focuses on ArkusNexus collaboration with Garvin Promotion Group (GPG) in the design and development of a world-class Dealer & Distributor Portal for a subsidiary of Asia based rubber and major car, truck and off-road tire manufacturer with 40 Distributors and over 250 Dealers in multiple locations throughout North America.

This client was already running consumer oriented rebates through GPG, a company that manages multi-million dollar rebate promotions, coupons, gift cards, and promotional items for a variety of industries. The client’s Marketing Team asked GPG and a team of ArkusNexus Nearshore Software Developers to design and develop a portal within a 6 month period that would support an Associate Network program, which aimed to incentivize Dealers to sell more tires through recommendations to their consumers, thereby increasing overall market share in the region. This portal was deployed on GPG’s multi-tenant Cloud based Channel Incentive Platform known as ChIPs.

Frequent changes to marketing plans and shifts in program criteria were the main development challenges. These were addressed by designing an innovative and accessible platform that was flexible enough to allow the Marketing Directors to readily adjust and update the different components of the program.

With the support of the Dealer and Distributor portal, the company averaged an increase of 19% in tire sales in North America, and added 4 Distributors and nearly 80 Dealers to the program during the first 8 Quarters.

Product expansion was later achieved through the implementation of additional features, including Enhanced Reporting, a sales-based Heat Map, and a Bonus Points system which awarded points redeemable for brand SWAG.

Team Composition

Given the ambitious 6 month development timeframe, ArkusNexus’ Team Extension acceleration driver via a managed software development team (pod) proved to be an ideal solution for the company’s technology needs. The Core Team in charge of developing the Dealer & Distributor Portal included:

  • 3 Subject Matter Experts from the Client’s Marketing Department
  • CIO from GPG, who acted as the Lead Business Analyst (Product Owner)
  • 1 Arkus Team Lead and Scrum Master
  • 5 Arkus Software Developers
  • 1 Arkus Quality Assurance Engineer

Time Frame

The overall project was broken down into multiple Phases, with the goal of having the 1.0 Release ready by the upcoming SEMA (Specialty Equipment Manufacture’s Association) show in Las Vegas.

SEMA is the largest automotive equipment manufacturer’s show in the world, and the Client has a significant presence in it. Given its positive potential business impact, it was crucial for the team to meet the launch date for this initial release.

core Features

for the Dealer and Distributor Promotions Portal

INNOVATIVE
TECHNOLOGIES
INNOVATIVE
END-USER EXPERIENCE

Business requirements and careful consideration of end-user experience were incorporated into the portal's innovative design. From the outset, developing clean, scalable code that allowed for flexible functionality and subsequent Product Expansion was fundamental.

The five Core Features included:

CHALLENGES

Code loss prevention (CLP)

Marketing programs will frequently change, often on a Quarterly basis, and sometimes even during the course of a Quarter. To address this, the team needed to make the platform as flexible as possible to allow the Marketing Directors to pull the various levers as they desired to adjust program criteria. This required quick team integration, as well as constant feedback and communication with SMEs to validate requirements.

Examples of these adjustments included:

  • Doubling or tripling the Rebate for a brand new tire being introduced to the market.
  • Increasing the Rebate to clear out inventory, or alternatively ratchet back the payout as inventory levels fall  due to older products being discontinued.
  • Increasing or decreasing Points earned by an entire Brand or for a specific SKU.
  • Offering a special promotion for a single day, like Black Friday.
  • Offering special Channel Incentives to tie in with special Consumer Promotions being run during the same time period in order to double the effect of promotional marketing efforts.
  • Tying a Consumer Rebate Promotion with a Dealer Incentive Bonus to maximize their ability to generate new sales.

results

Once the Program went live, The Client reported the following results:

1 During the first 8 Quarters, they averaged a quarterly increase of 19% in tire sales within North America through the program.

2 They added 4 additional Distributors and nearly 80 Dealers to the Program.

3 They were recognized as having the best Dealer Incentive program among Tire Manufacturers in North America at the SEMA show.

aditional improvements

ArkusNexus Upgrade Recommendations (AUR)
INNOVATIVE
TECHNOLOGIES

Due to the initial success and positive feedback from the Dealers regarding the impact of the program, additional enhancements were implemented in later releases, including:

  • Enhanced Reporting for Administrators for improved analysis on where certain Tires, Brands, or specific SKUs are being sold.
  • A Heat Map that allows Admins and Distributors to quickly:
  • See where tire sales are the strongest.
  • Drill into a specific geographical area.
  • Filter by Time Frame, Tire type, SKU, Distributor, Dealer, and Dealer Location.
  • Added Bonus Points that can be redeemed for brand SWAG, which includes:
  • A Points Engine to calculate how many Points each Dealer earns.
  • A method for changing the number of Points earned by Tire Model, SKU and Level.
  • A way for the Dealer to see how many points they have accrued.
  • Redemption Screen for the Dealer to redeem their Points in exchange for:
  • Free Tires.
  • Branded clothing and accessories:
  • Coffee mugs, RC Cars, Snowboards, etc.
  • Marketing materials (flags, banners, car stickers, etc).

This Product Expansion helped further improve the overall success of the Program and ultimately increase sales in North America.

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