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Strategic Planning & ForecastingUsing Alteryx and Tableau

Aaron Cohen, General Manager, Strategic Planning & Analytics, Audi of AmericaAlex Khvan, Senior Analyst, Strategic Planning & Forecasting, Audi of AmericaTuesday, May 19, 2015

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Progressive

Sophisticated

Sporty

Audi Brand Identity

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The Future of Audi of America

Strategy 2020 Planning Industry Planning Audi Volume Planning

Market Intelligence Trend Study Margin & Bonus Program

Strategic Planning & Analytics

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Audi Premium Competitors in U.S. MarketAudi Premium Competitors in U.S. Market

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2009 2010 2011 2012 2013 2014

83K

102K

118K

139K

158K

101K

120%Audi Sales VolumeGrowth in U.S.2009-2014

ConsecutiveMonthsRecord Sales52

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SustainableProfitableGrowth

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Audi BMW Mercedes

#2 Top Cross Shopped Premium Brand

#3

#7

#1

#3

#2

#1

Source: Strategic Vision NVES, 2013 Wave 3

#2 Top Cross Shopped Premium Brand

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2009 2010 2011 2012 2013

Audi BMW Mercedes

Growth in High End Models (C/D Mix %)

56%

20%

43%

55%

34%

40%

Source: Autodata (U.S. Market)

Growth in High End Models (C/D Mix %)

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2009 2010 2011 2012 2013

Audi BMW Mercedes

Low Retail Incentive Spend per Vehicle

$4,870

$3,390

$4,970

$3,800

$2,600

$3,710

Source: Autodata (U.S. Market)*Figures rounded to order of magnitude (10)

Low Retail Incentive Spend per Vehicle

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2009 2010 2011 2012 2013

Audi BMW Mercedes-Benz

Increased Pricing Power

Source: JD Power PIN (Customer Facing Transaction Price)*Figures rounded to order of magnitude (100)

$41,900

$45,300

$50,300

$47,000$47,600

$53,800

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2009 2010 2011 2012 2013

Audi BMW Mercedes

Healthy Lease Penetration

45%

40%

51% 51%

37%

52%

Source: IHS Automotive (U.S. Market)

Healthy Lease Penetration

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54

56

58

AgeAge

Audi customers…

Source: Maritz NVCS, IHS Automotive (U.S. Market, 2013)Premium Competitive Set: BMW, Mercedes, Lexus, Land Rover, Volvo, Jaguar, Acura, Infiniti, Porsche, Saab, MiniTier 1 Competitive Set: BMW, Mercedes, Lexus

95%

91%

90%

% Attend College

$193K

$165K $164K

HH Income (Median)

2.96

2.83

2.77

Vehicles per HH (mean)

Are Younger Are Better Educated Have Higher Income Own More Vehicles

Audi customers…

Growth in High End

Models

Low Retail Incentive

Spend

Increased Pricing Power

Healthy Lease Penetration

Strong Residual Values

Audi Sales VolumeGrowth in U.S.2009-2014

52ConsecutiveMonthsRecord Sales

120%

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A Clear Understanding of the

Market

Comprehensive Strategy

Dedication to Customer Delight

Marketing Excellence

Exciting Product

Committed Partners

Futuristic Vision

How

?

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7 Fundamental

Truths

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Data is being accumulated faster, in greater quantities and in more diverse types than ever before in history

1

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Business decision makers need data at their fingertips to be relevant and answer questions when they arise• Information is only relevant if it makes a difference in a decision• Relevant information either forecasts future events (predictive value), or

assesses prior expectations (feedback value)• Information must be available to decision makers before it loses its

capacity to influence their decisions (timeliness)

2

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3Current data analysis processes are inefficient and often ineffective• Data is scattered & fragmented, typically in many different

places• Analysts spend more time pulling data, transferring it into

excel and then graphing it in neatly formatted powerpoint slides than exploring the data and actually analyzing what it means

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To actually make progress toward creating value from Big Data, we must make sense of the chaos

4

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5

The first step in “Big Data” is seeing and understanding the data you already have

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6The human brain processes visuals 60,000 times faster than text and 90 percent of the information transmitted to the brain is visual

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There is a clear need for tools to empower data analysts, managers and executives - not IT - to explore and self-serve their own advanced data visualizations

7

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Data Consolidation with Alteryx

Single Data Repository

SalesSource of SalesMarketing Transactional Data Geographical

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Alteryx is a Key Enabler of Data Consolidation

• 10 independently developed spreadsheets with key data• Over 3 million rows of data

1gb of storage• Using excel to store

and analyze the data

Before After

• Single .tde file with alteryx database .yxdb as backup

• Over 3 million rows of data storage, now reduced from 1gb to 4mb

• Result is much faster processing times in Tableau

• All data current and historical is available at the finger tipsROI:

Significant Productivity GainsTime Savings

Easy Data Discovery

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Alteryx as a Data Cleanser and Shaper

• Data cleansing and shaping used in repetitively and in many instances

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Example of a Use Case in a Month-End Sales Report

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov-1

4

Jan-

15

Mar

-15

0

200

400

600

800

1000

1200

1400

400

300

500400

400

10001000

1200

800

1000

700

1100

900

• In the automotive world, many decision makers rely on sales reports to guide their decisions

• In example on the left, it would seem that soon after the product introduction, sales have gained a lot of traction and it is successful

• A costly decision could take place to invest into a product that would directly compete with Competitor A

Competitor A New Carline

Sale

s

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Tableau as a Visual and Analytical Layer

Single Data Repository

Beyond Sales Analysis:

• Reported Sales• Registrations• Pricing• Incentive Spend• Monthly

Payments• Lease Rates• Customer Loyalty• Competitive

Strategies• Internal KPI’s

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Sale

s

Month-End Sales Reports

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov-1

4

Jan-

15

Mar

-15

0

200

400

600

800

1000

1200

1400

400

300

500400

400

10001000

1200

800

1000

700

1100

900

• With all relevant data sitting in one database, other important variables become obvious

Lease Rate: 30%

-> 80%

Transaction Price:

$50K -> $40K

Inventory: 30 -> 90

Days

• High inventory, decreasing transaction prices and high lease penetration would indicate, that the product is not very successful, contrary to what sales report may suggest…

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View of the Premium Market (2014 Sales)

BMW Mercedes-Benz Lexus Audi Acura Infiniti Volvo Mini Land Rover Porsche Jaguar0K

20K

40K

60K

80K

100K

120K

140K

160K

180K

200K

220K

240K

260K

280K

300K

320K

340K

Volume

GLE-Class (ML)

QX80(QX56)

GLK-Class

CLA-Class

QX60(JX)

Rg Rover

RR Sport

GL-Class

Cayenne

4-Series

5-Series

3-Series

Q40 (G)

Q50 (G)

EvoqueC-Class

S-Class

E-Class

Cooper

XC60MDX

RDX

S60

TLX

ILX

GX

Q7

Q5

A4RX

A6

GS

A3

A5

X3

X5

X1

ES

CT

IS

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View of the Premium Market (2014 Sales)

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View of the Premium Market (2014 Sales)Segment Sedan SUV Cabrio/Roadster Coupe Wagon Hatchback

Premium A0

Premium A

Premium B

Premium C

Premium D

3K1K5K25K

103K

121K 110K

23K

35K

27K

21K

18K

12K

23K

23K37K

42K

19K 45K

15K

18K

20K

68K

52K

34K35K

11K

10K

57K

22K53K

32K

16K

47K

23K

23K

36K51K

19K

66K

13K24K

15K 30K

13K

7K

8K 4K

5K

2K

6K

7K

6K

4K4K

3K

0K

1K

0K

7K

1K

8K

2K 2K2K

6K

5K

9K

3K

6K

7K

4K

6K

3K

5K1K

2K

7K 2K

1K

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Premium Market YoY Change (2014 vs 2013)

A SedanC SUVB SUVA SUV

B SedanB CoupeD SedanB WagonA CoupeD Coupe

A0

HatchbackC Coupe

A Hatchback

C WagonA0 SUV

C Cabrio/ Roadster E CoupeB Cabrio/ Roadster A0 Coupe A Cabrio/ RoadsterA0 Cabrio/

RoadsterA0 Wagon

D SUVD Cabrio/ Roadster C Sedan

-10K

0K

10K

20K

30K

Difference in Volume

-50%

0%

50%

100%

% Difference in Volume

32K29K

25K

-1K -2K -2K -2K -3K -3K -4K

-9K

7K 7K 6K 6K 5K3K

2K 2K 2K 1K 0K 0K 0K

0K

-26%

-62% -63%

-32%

-49%

-23%

92%

11%

24%12% 10%

38%

92%

21%28%

-3% -5% -5%

9%2%

7% 7% 8%1% 1%

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Potential Future Use Cases

• Statistical analyses and forecasting• Geographic and demographic analyses• Web scrubbing and social media analytics• Fuzzy match to cut down time to map models to one another• Convert survey data from SPSS into visual friendly format, for

enhanced data discovery• Reporting and automation of recurring information• Consistent upgrade of our data arsenal

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Cultural Shift

• Audi’s Strategic Planning team, has rapidly adopted and shifted its approach to data analysis, in order to achieve breakthrough insights and maximize the value from its vast array of existing resources.

• With these new tools, Audi has begun to realize a vision of lightning quick and accurate forecasting and analytics.

• Perhaps more importantly, the team has initiated a cultural shift toward rapid visual data discovery.

• Ultimately, these new capabilities will directly support Audi’s mission to inspire customer delight and become the #1 Premium brand.

THANK YOU!

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