SULLIVAN FORD AUTO WORLD

Lets Make A Deal.

IBS - Bangalore

Krutharth Joshi

Shankar K

Pradeepa

Vignesh RV

AGENDA..
Outline & Facts CSAT Survey Problem Statement Flower of the Service 7Ps Possibilities

IBS - Bangalore

OUTLINE & FACTS

Walter Sullivan the founder of Sullivan Ford Auto World Family business is in financial trouble. Carol Sullivan-Diaz, a health care manager by profession took over the business, eldest daughter of Walter Sullivan. Average sales of 1,100 cars per year Auto Worlds financial situation had been deteriorating for the past 18 months and running at a loss for the past 6 months. Past 12 months financials show that gross sales figures are not enough to cover fixed expenses Margins had been squeezed by promotions and other marketing efforts.

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CONTD
Year Last Year Current Year Car Sales $30.5 Mn $26.6 Mn Service $3.6 Mn $2.9 Mn

Category Car Sales Service

Margins 5.5 % ~ 4.6% 25% ~ 24%

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CSAT SURVEY

30 Days
Auto world achieved better than average ratings 90% of customers said that Auto world informed them of what to do if they needed service Less than 33% of respondents said that they have been introduced to someone in the service department (which is a sales protocol)

270 Days
Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealers More than 50% of respondents -would rather use another Ford dealer for future service
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PROBLEM STATEMENT
Should Carol Sullivan-Diaz sell Sullivan Ford Auto World to prevent future losses or try to turn it around?

If she chose the latter, what changes & improvements should she implement to improve service quality in Auto World?

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FLOWER OF SERVICE
Core Service
Car dealership
Information
Order Taking Billing Payment

Product Vs Service

Supplementary Service
vehicle servicing
Consulting Hospitality
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Factors Advertising

Car sales Yes

Service Yes

Delivery Guarantee
Quality checks Trial Loans Frequency Return Factor

Feasible Yes
Yes Yes Yes One Yes

Depends Depends
No No No Multiple No

Relationship and value IBS - Bangalore

No

Yes

Product / Service

Place

Price

Promotions 1. Induced Buyers

1. Front End Car Sales 2. Back End Service Dept

1. Sub Urban Highway 2. 8:30 AM & 6:00 PM

1. Low Margins 2. Aggressive Discounts

People 1. 2. 3. 4. Sales Manager 7 Sales People Office Manager Secretary

Process 1. Service Writing

Physical Evidence 1. 2. 3. 4. Ford LOGO Hi Fi Showroom Office / Service Area Cars

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POSSIBILITIES
1. Sell the Business
2. Try to turn around the Business. 3. Hire an Expert

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AND NOW.

OPEN TO THE CLASS.!!! THANK YOU

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