GROUP 1 SULLIVAN FORD AUTO WORLD G R O U P 1 NGUYEN THI VAN ANH TRAN THU HUONG TRAN THI MAI LINH KHONG KIEU NGAN LE THI DIEM QUYNH TABLE OF CONTENTS 01 CASE BACKGROUND 02 CASE ANALYSIS 03 RECOMMENDATIONS 04 CASE IN VIETNAM CASE BACKGROUND Sullivan Ford Auto World Started in 1993 Located at an important suburban highway intersection After Walter Sullivan's demise, his daughter Carol Sullivan-Diaz, a healthcare manager, unexpectedly took over the business. The family business is in bad condition 01 Poor macroeconomic environment New car sales had declined ➡ 02 Rising fuel prices Discouraged future sales 03 Margins had been squeezed 04 Low satisfaction with service ➡ Case Analysis Answering questions Problems Question 1 The different between marketing cars and marketing service for cars Inseparability Intangibility Car - tangible, customer can touch, see and experience Automobile services - intangible, hard to imagine Variability Ford car - almost identical Car service - change due to the skills of the technicians Marketing car service - the technicians perform the various Toservice createtasks; yourcustomers own, pay a fee choose a topic that Marketing cars - car is the main interests you. attraction. Perishability Car - can be returned Service for car - cannot be returned or resold. Ownership Ownership changes to a buyer when a car is sold, but no transfer of ownership of a service Question 2 Compare and contrast the sales and service departments at Auto World Appearance Car sales department Eye-catching site in convenient location Customers can walk-in High-polished new cars on display; attractive, modern facility Car service department Same location but the service building looks old, greasy and hidden behind showroom Customers must make appointments Modern, well-maintained equipment in service bays Question 2 Compare and contrast the sales and service departments at Auto World Staff and Customer's experience Car sales department Salespeople are smartly dressed with smooth, friendly manner Customers can examine the cars while they wait for a salesperson Can choose between new or late-model “pre-owned’’ cars, different colors etc. Customers can have a chance to bargain for discounts, free accessories Car service department The service manager and service writers may respond rudely to abusive customers Customers have to stand and wait in line for service writers Choose how much of the problem to fix in one time Price of parts is fixed; labor costs are expensive QUESTION 3 From a consumer's perspective, what useful parallels do you see between operating a car sales and service dealership and operating health services? Strict requirements for effectiveness and safety High quality of service provided by the staff, the reception and resolution of customer complaints, the facility, time of service Building trust and close relationships is essential Problem Wrong marketing strategy Poor management of customer complaints Low quality service provider Wrong marketing strategy Misperception of customer expectations and quality standards Unsystematic service design for writing service orders, long and slow lines. Not investing in technology The office where service customers are first greeted is not well maintained The focus is on acquiring new customer rather than building customer relationships Poor management of customer complaints The previous manager often did not face customer complaints and also contributed to the problem ➡ Unpleasant customers getting more irate Low quality at the service writer - do not communicate well what was performed when they assist the customers in picking serviced vehicles. Low quality service provider Managers and staff miss interpersonal skills and customer orientation Employees are not motivated to do well in their work and have high absenteeism Poor employee skills on handling service failure recovery GROUP 1 Recommendation Question 4 What advice would you give to Carol Sullivan-Diaz? Service revenue is dropping more than car sales Narrow the gap between the front end (sales department) and the back end (service department) Recommendation Improve service quality by revamping the service department Hiring well-trained and experienced service management team, training the service staff Make use of the technology for client records and service writing Expand the service delivery system Focus on high-quality service assuring the reliability of products Focusing on building relationships with customers Advertising, marketing tools and promotions ➡ create value and attract customers with high quality services Customer-oriented service strategy, regain the trust and loyalty of clients by implementing new and innovative packages SIMILAR CASE IN VIETNAM Honda Minh Hien About Honda Minh Hien A small motorbike dealership in the suburb of Hanoi Comparison with Sullivan Ford Auto World Similarity: Operate both sales and service department Differences: - Departments are put next to each other - Customers coming to the sales department will be introduced about the service department. PRE-PURCHASE STAGE Set up fanpages and websites to gain awareness Post information about their stores, motorbikes, and special offers,... Clearly explain the process, the price, SERVICE ENCOUNTER STAGE POST-ENCOUNTER STAGE and the timing. Serve free coffee, tea, and candies. Seating zone Remind maintenance schedule. Send the bill through email GROUP 1 CUSTOMER SATISFACTION IS THE KEY Thank You F R O M G R O U P 1
