Quinn Chow - April 2007 Presentation

7/28/2019 Quinn Chow - April 2007 Presentation

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The Designerly Approach to Business

Quinn Chow

Masters of Science Candidate in Industrial Design

Art Center College of Design

email: [email protected]

May 2009

April 2007 Presentation


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April 2007 Presentation | page 2

First a little background... Theres no doubt we love cars. We spent

$700 billion on them last year in the US.


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Theres also no question we hate the act of buying them a Ford

survey found that buying a car was one of the most unpleasant retail

experiences in life.


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This was confirmed every time we spoke to car buyers In our first

survey, they brought up issues like feeling not well-informed having

to sit in a showroom all day and going through long sales pitches.


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And when we spoke to car sellers, they expressed the same

frustration talking to dealers and salespeople, they hated having

to compete by negotiating and lowering prices and the most

valuable customers to them are the happy ones, because they

become customers.lifelong


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Its happening slowly, but sellers are changing their attitudes: The top

10 dealers in sales all point to their commitment to customer service

as leading to their success.

So the question we had to ask was: What has been stopping it from

getting better?

Well we found many reasons, but the one were tackling is

confusion.


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Right now, there are 19 dealers to go to within 15 miles of here

most representing different makes, let alone models this creates an

overload of choices.

Or when shopping online, these are a fraction of the choices the

internets been great, but its created an overload of information.


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So for car buyers, we offer Alfred, an online shopping assistant that

streamlines the entire process into a single interface. Its a website

from which buyers access beginner-friendly advice on how to

navigate all the choices and then keep track of subsequent

research by storing it on their Alfred account.

And from which buyers can add car information OFFline on the

showroom floor, by using their cell phones. This way, bridging the

gap between physical cars, and the virtual information that

represents them.

And it turns buyers into a networked community that offers trusted

ratings on everything to do with buying cars: the cars, dealers,

salespeople.


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And we do the same thing for car sellers they suffer from

confusion too.

These are the major departments, processes, decisions, and variables

involved in selling a car.. There is a definite overload here

previously, sellers deliberately used this to their advantage when

negotiating a car deal but now, this confusion is seen as a

roadblock to giving the buyer good service.


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So for them we have FastSell, a sales management toolthat, again,

organizes it all into the same workflow, and streamlines it into a

single interface

and puts it into a handheld terminal, so the seller can manage the

system from anywhere again, bringing virtual information out onto

the physical car lot.


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And then, when we integrate the streamlined buyer information with

the streamlined seller information and share it with the

appropriate checks and authorizations of course Alfred and FastSell

combine to build a transparent, trusted, and lasting relationship.

So what does this relationship look like?


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To show it, I introduce to you Ronnie Ronnie just learned she's

going to be a new mom! Which means a time of big, exciting

change, not the least of which is their car.


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She and her husband have been meaning to talk about it but they

never seem to get the time.


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And her friend, pictured here, made her wary of buying a car.. For

her, all the excitement was lost when she had to listen to loooong

sales pitches wait a loooong time for a salesperson to run around

getting answers and deal with the confusion of having to talk to

different people from different departments.


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But not Ronnie. She finds Alfred when shopping for other things

related to her new baby, in this case, baby seats.


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She clicks through to AlfredCarShopping.com, and is impressed that

instead of asking which car she wants, it asks about her: where she'll

be driving, how many people, any pets, etc only after getting to

know her, does Alfred offer beginner-friendly advice and recommend

some cars to her.


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And then it helps her keep track of further research onlineShe

really loves this because she only has a few minutes a day to look at

this stuff, so whenever she gets back to it, she only needs to log into

her Alfred account and pick up where she left off!


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It helps her offline too! At one particular dealership, Cerritos Infiniti,

she can take a picture of the circular barcode to upload that cars

information to her Alfred account!... Cool! Thinks Ronnie Way

better than writing things down and carrying all those pamphlets!

"Way better than having ME carry your pamphlets, her friend quips.


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It's at the dealer where Ronnie first encounters FastSell, a tool used

by the salesperson with it, he can add anything else they talk about

to her Alfred account.


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Out of all the dealers and all the cars she looked at that day, one of

them stands out: Cerritos Infiniti. Instead of mucking around with

sales pamphlets, information about that specific G35 Sedan Ronnie

looked at was all in her Alfred account waiting for her when she

returns home.


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There's also info about the dealer and about Justin, the

salesperson!... Key to that info are trusted, buyer-generated ratings

Ronnie and her husband are assured when the car, Justin, and

Cerritos Infiniti all check out with high ratings!... It also points out the

dealer offering fast and friendly service through their FastSell system.


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What this means is that when Ronnie goes back to the dealer, she

can allow FastSell to access to her Alfred information - no need for

wasted time on anotheor sales pitch. Her only remaining question

was to see one in Laser Red with alloy wheels, that's what her

husband preferred.

Justin checks and they don't have it. But they DO at Glendale Infiniti,

and they can start a dealer trade, on the spot, and it can be delivered

within an hour oh, and hey, this is what the car looks like.


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Ronnie and her friend decide, NAAAHHH


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The rest of the sales process goes just as smoothly. When it comes to

trade-in, it's as easy as scanning the VIN number, using his FastSell

terminal.


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And Justin has make, model, history... All the information he needs to

help Ronnie decide on the value of her car".

Note that there's still the same questions being asked before, and

Justin still needs to access the same databases, it's just that he

throughout it all.

stays

at Ronnies side


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It's the same when it comes to negotiating the price and the

financing. The transparency makes it a cooperative process. Ronnie's

done her homework and it shows.


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When everything's agreed upon, it's just a matter of hitting "print"

and paperwork is already filled out both Justin and Ronnie benefit

equallyNo muss, no fuss, just a signature.


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So Alfred's streamlined flow of buying information made Ronnie feel

confident she was making the right purchase on the right terms

FastSell's streamlined workflow made Justin's sale quick and

trustworhy The end result? A lasting relationship


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The nice little surprise for Ronnie when she gets home is a free car

care kit she gets when she describes and rates her buying

experience thus helping future buyers through Alfred and adding

to the community!


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And FastSell has gone already gone through Alfred to start Ronnie on

her next phase: owning and maintaining her new car she can

schedule her first service right there It seems Ronnie will get to see

Justin, and the crew at Cerritos Infiniti, in a few months.


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Alfred and FastSell are my recommendations for Risoria's entry into

this market What market is that?

First FastSell competes for small-and-medium dealership spending on

Dealer Management Systems and Customer Relationship

Management systems...

And assuming small and medium makes up two-thirds of all the

dealers in the US, multiplied by their average spending yearly on

these systems, we get a market potential of $320 a year

Our plan is to capture that market $22,000 at a time but why

would a car seller pay this?...


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Simple FastSell offers bottom-line savings.

When presented with early prototypes, Justin Soto, Used Car Sales

Manager at Pacific Honda said the integration and real-time

communication between departments saves time and the

structured working process saves them errors so he sees being able

to cut 1 or 2 support staff, which equals $67,000, or 3% of their

personnel costs.


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And it means top-line growth.

Paul Conant, General Manager at Cerritos Infiniti, says his happiest

customers are the ones that get their car quickly, and that happier

customers lead to referred and repeat business A lifelong customer

to at Cerritos Infiniti is worth easily more than $300,000.


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FastSell is the best way for sellers to seamlessly tap into a projected

47,000 car buyers a year Where do these buyers come from?

Alfred's buyer community.

Our primary target are the 1.6 million new families a year in the US.

In an initial survey, "good service" ranked just as important as "low

price" in the purchase decision however when narrowed to a new

family demographic, "good service" ranks so these are the

people most interested in the friendly service Alfred and FastSell offer.

And this demographic is also 40% more likely to buy a car online

than any other demographic Why is that? Because life's changes

demand it.

higher


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This is the type of marketing that will address that putting Alfred in

places new families will most likely be.


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But we won't ignore secondary markets. We want to hit other likely

car purchasers: college grads starting their first jobs, and teenage

new-drivers marketing to them can take on some unique forms,

such as producing an Alfred widget, so young users can rate and

review cars, just as they would music or movies, on MySpace.


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So whats it take to launch FastSell and Alfred?... Here are the major

activities Risoria must take on in the next 7 years.

We focus on design and development of FastSell, needing half a

million dollars to get FastSell to soft launch into alpha installations by

Year 1.


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After testing and refinement, we officially launch FastSell locally after

Year 2 this lets us continue to refine the product, while gaining

some sales to fund the development of Alfred.


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The goal is to time the national expansion of FastSell to start when

Alfred goes live in Year 4.


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And so Year 5 is where we see the biggest outlay of investment A

cumulative $2.8 million through 5 years to fund the marketing of

Alfred. We need to build a critical mass of users to a) make the buyer-

generated ratings meaningful and b) protect us from competitors

who try to build a similar community.


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As Alfred gets a foothold, that downstream buyer demand I talked

about will kickstart sales of FastSell reversing the flow of cash and

breaking even in Year 6.


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For our business model, we are assuming 2.2% market share by Year

7. This means $8.4 million in revenue, with $3.7 million in ebit, and

positive cash of $1.7million.

This represents 100% year-on-year growth, which we are confident

we can achieve for two reasons the first is the growth in internet-

assisted sales: it grew from zero in 2000 to 30% by 2006 and its

showing no sign of slowing down the second is other innovators in

this area like CarMax and MSN Auto experienced 2 to 300% growth

in their first years of inception.


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In conclusion did we make the car buying experience a joy?


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I presented prototypes to sellers and this is what they had to say

Paul Conant, general manager said this system is very useable

Rocco Calundruccio, a student here but some of you dont know is

a former Jeep salesman wishes he had this when he was selling

cars and Justin Soto, sales manager said theyd for sure consider

running FastSell

And I did an online survey asking car buyers opinions on Alfred and

FastSell a Honda Accord owner said it seems to have all the info I

need in one spot a recent purchaser of an Acura RSX said this

could build a healthier relationship between the salesperson and him

or her and a Mercedes owner simply said this idea is fantastic.


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So the answer is YES, we are making a joyful car buying experience

but I think a more worthwhile question to ask now is, and this is very

particular to what we do here in Grad ID is the solution worth

implementing for Risoria?... Ill let Johann and Larry answer that

but first I want to say one more thing...


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...Thank you!

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Quinn Chow - April 2007 Presentation

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