‘Customer focus’ name of game for new utilitarian 4×4 brand
INEOS Automotive is gearing up for its Grenadier’s Australian market launch, with pricing announced, local testing underway, a media passenger ride and first deliveries timed for July 2022.
Justin Hocevar is Head of Region APAC at INEOS Automotive, and he recently detailed the Australian market approach to carsales.
Backgrounder
“INEOS is first and foremost a chemical company, a very large and successful one at that,” said Hocevar.
“The business owner (Jim Ratcliffe) is very passionate about 4×4, about adventure travel, and back around 2016 he was lamenting the demise of iconic 4x4s, vehicles that had run the earth and helped people fulfil all sorts of wonderful pursuits.”
“Jim and his time observed that there was a space opening up where there were still a lot of customers that had a lot of different use cases needing to be fulfilled,” said Hocevar, adding that the modern trend towards more complex and SUV-like (rather than utility-like) further exacerbated this gap.
Fast-forward five years, and you have the INEOS Grenadier.
Customer first, from the start
“INEOS is a well-backed project but it’s also a project that has a lot of passion in order to fulfil this space for customers,” said Hocevar.
“That is important because at every point of this journey, it has been about going back and listening to customers.
“What are the use cases? What do they want? What do they really like and what to do they really hate? What do they dislike about, not just a product or brand, but also the details of their dealings on a day-to-day basis, when it comes to accessing parts or servicing their vehicle, where they need to go?”
This combination of passion and financial influence has enabled INEOS to partner with established automotive powerhouses such as BMW (for drivetrains), Bosch (componentry and development) and Magna Steyr (as a development and engineering partner), embarking on a substantial, global development program. To date, over 1.8m testing kilometres have been covered.
“We’ve continued to develop the vehicle in plain sight, always doing it so that people could see what we’re up to and engaging with them, so they could give us feedback. That has helped us set the trajectory going forward,” said Hocevar.
The result is a vehicle that is based “on traditional values, 4×4 values, but to bring it to customers in a modern context that hopefully addresses their concerns.
“This was about building a vehicle that was going to be successful all over the globe. In every little pocket and corner, it would be a hardworking vehicle for people.”
Customer cohorts
Hocevar sees INEOS appealing to four “cohorts”, with some crossover between the core groups.
Large corporate fleets are a key focus, Hocevar citing the government, mining, and emergency services sectors as examples.
“We already have strong interest, but we need to invest in getting these larger fleet buyers to understand the ins and outs of our product and support,” Hocevar explained.
The second cohort remains focused on work. “Let’s call them utilitarians, people that need a dependable 4×4 for their day-to-day work.”
The third key demographic is those “choosing a vehicle to suit their lifestyle”; families that love getting out of town or people towing and touring the country.
Off-road enthusiasts are the final focus: “That’s real die-hard 4×4 people and ‘overlanders’ that love configuring, modifying, and building their vehicles just as they like.”
Reservation space
Public online reservations for Australian-market Grenadiers opened on October 14, though early ‘hand raisers’ were able to lodge a refundable $800 deposit to secure a production slot. They were lucky; as carsales reported earlier this week, the first 1000 Australian Grenadier units are already accounted for, with 2023 the next available production date.
Reservation holders will experience the pre-production test vehicle that is currently working through its Australian development program, with access to specify their own Grenadier following soon after.
“We will begin our deliveries in alignment with the European start of production, in Q3 of 2022. With normal times for shipping and launch activities, we expect to be delivering vehicles to customers from the fourth quarter of 2022,” said Hocevar.
Strategic retail
“We really started with the end game in mind, a big focus on customer experience,” said Hocevar of INEOS’s planned retail process.
“Once you’ve bought your vehicle, what was your journey going to be like with the brand?”
Australia is considered a ‘direct’ INEOS market, that will allow customers “to have a face-to-face experience with us through a number of touchpoints, but they can also have a fully integrated digital solution through their buying and also a lot of their aftercare solutions,” explained Hocevar.
Face-to-face experiences could be via one of the INEOS ‘agents’ or direct with the OEM, either at standalone events, 4×4 shows or caravan and camping shows.
The customer could then continue the buying process with an agent, or return “to the comfort of their own home, configure the vehicle, get a finance quote and even receive a quote on part-exchange of their existing vehicle. The configuration could be shared with friends and ultimately they could transact online.”
INEOS retains ownership of stock and demonstration vehicles, with agents receiving a “pretty straightforward” facilitation fee when a sale is made.
“We don’t believe in making our partners jump through a million claiming hoops. They’re our business partners and we want to make sure they are rewarded,” Hocevar said.
The agents themselves are what Hocevar called “a diverse mix.”
“There are a number of automotive dealers that will take the Grenadier under an agency model. But we will augment it with other partners. For example, I have a motorcycle dealer group. I have an engineering company that produces incredible off-road adventure trucks. I have a combined vehicle and caravan outlet… and some other diverse outlets.”
INEOS is looking to have at least 16 Australian agents by market launch, with “approximately 34” by year three. Melbourne, Sydney, Brisbane, Perth, and Adelaide will have one exclusive partner and account for “somewhere between 45 and 48 per cent of our volume, based on population and location,” said Hocevar.
INEOS’ remaining sales and service agents will be spread across the country, with the intent to have around 80 per cent market coverage at launch, building to 98 per cent by year three.
Servicing intent
Hocevar also recognises the need for remote service locations, with INEOS offering an innovative tie-up.
“We have a really deep relationship with Bosch, from the project’s inception. They will also partner with us as part of our aftercare customer service solutions, via Bosch Service Centres.
“We can identify locations where we can’t justify having a full sales and service outlet, and we can ‘turn on’ handpicked Bosch Service Centres for those regions. That really helps to expand our network’s service coverage into a lot of small locations,” Hocevar explained.
Not every Bosch Service Centre will be activated, however, customers will be able to identify fully trained and approved outlets via the INEOS website.
Ongoing support
Aftersales business is increasingly a focus point as OEMs continue to evolve their customer offers. It is also a place where strong margins and repeat business make the space lucrative for dealers and agents.
“We are going to launch with a five-year unlimited mileage warranty in Australia and New Zealand,” said Hocevar.
“It’s a key consideration for customers and particularly important for us as a newcomer… and I’m pleased we’ve been able to come to Australia and New Zealand with that sense of confidence.”
A five-year service package will also be offered at additional cost, Hocevar promising it will be “very comprehensive and quite competitive in terms of price.”
A roadside assist program is also being finalised.
Clean sheet approach to back office
“Many OEMs have a lot of legacy systems, but because we are starting with a clean sheet, we’re able to come up with a holistic solution, to make the identification, ordering and repair of components quite seamless,” said Hocevar.
This system uses an interactive 3D catalogue for simple parts identification and will also provide repair advice.
The INEOS ‘look and feel’
While pricing may start from $84,500 (plus on-road costs), Hocevar wants to ensure the brand experience is “absolutely true to us”.
“We don’t want to ask our partners to invest in multi-million-dollar, extravagant facilities,” Hocevar said.
“We’re looking at an environment that is comfortable and commensurate with the brand. If there is a great floor treatment already in the facility, a polished concrete for example, and it is a suitable size, we will work to create an environment there.
The overall intent is to make “the Grenadier the showroom.”
“(Doing it this way) keeps the cost of distribution down, and that’s what’s really important as we can pass on a high-quality product that’s not bloated with a lot of excess,” Hocevar concluded.
*Justin Hocevar will also be joining as a panelist on our next webinar, titled ‘The journey to Vehicle Ownership’ webinar on November 24.
