Management of Innovation
(MOI, 2011/2012)
Brief 2.0 Project Work
New Service Development in Automotive Retailing
Part 2
Emilio Bellini and Chiara Cicenia
2
BRIEF, TIPS, FORMATS
FOR THE PART 2
Project Work: 5 Parts
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Part 1 - Analysis of Successful Cases in Retail Innovation: Learning from the Past and Present
Contents:
State of the Art: boundaries of retail innovation
- New/Emergent Meanings in retail/shopping experience
- New/Emergent Technologies for retail services
- New Configurations of Customer Journey in Retail/shopping
Part 2- Analysis of Innovation Context in Automotive Retailing
Contents:
- Distance between Automotive Retail and State of the Art in Retail Innovation
- Comparative Analysis between Different Automotive Brands
Part 3 - New Service Development in Automotive retailing: The Concept Statement
Contents:
1) The Emerging Socio Cultural Models and the Interpreters
2) The Unpleasant Touch Points and the New Meanings/New Functions
3) The 2 Layers NPD Model: Technologies-Functions-Performances, Languages-Messages-Meanings
Part 4 - New Service Development in Automotive retailing: Visualizing the Concept
Contents: on student’s choice (e.g., Storyboard, Moodboard, Video, QFD)
Part 5 - New Service development in Automotive Retailing: The Business Model
Contents:
Collaborative Strategy
Business Model
Rough Financial Sustainability
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General Information
Brief and Contents
Methodologies and Tools
Tips
Format to use for the Delivery
Criteria for Final Evaluation
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Evaluation:
Class participation (for each group): 20%  15%
(class attendance; proactive class participation; quality of case discussion)
Project presentation (for each group): 20%  40%
(Completeness, Correctness, Creativity, Written presentation)
Final exam (for each student): 60%  45%
(written test and oral discussion of course subjects and project delivery. The oral
discussion will involve each group, but the evaluation will )
Class participation and project presentation marks will be kept valid until last a.a.
session (February 2013)
Project Work: New Scheduling
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Part 1 - Analysis of Successful Cases in Retail Innovation: Learning from the Past and Present
- First Draft Due On: 1st Review/Evaluation 23/11/2011
(Second Draft after eventual visits in Innovative Retail in your country, during Holidays)
Part 2- Analysis of Innovation Context in Automotive Retailing
- Informal Draft Due by email On: 19/12/2011
- First Draft Due On: 2nd Review/Evaluation 11/01/2012 (by email on 09/01/2012, 11.00 pm)
(After eventual visits in Car Dealership in your country, during Holidays)
Part 3 - New Service Development in Automotive retailing: The Concept Statement
First Draft Part 3 Due On: 3rd Review/Supervision 18/01/2012
Part 4 - New Service Development in Automotive retailing: Visualizing the Concept
Part 5 - New Service development in Automotive Retailing: The Business Model
Final Report “Part 1+ Part 2+ Part 3+ Part 4+ Part5” Due: three days before oral exam (by each group)
Written Exam: 26th January, 1.15 pm
Oral Exam: 03rd February, 9.30 pm
Oral Exam for special situations (on demand, to be documented): 26th January
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General Information
Brief and Contents
Methodologies and Tools
Tips
Format to use for the Delivery
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Part 2
Parts and Contents
Empirical Activities/ Format (with
Example)
Part 2
Analysis of Innovation Context in
Automotive Retailing
Each Group :
n. 1 Comparative Analysis FGA Brand vs.
Competitor Brand
n. 2 Visits in a Car Dealer (one FGA and
one Competitor)
Contents:
- Distance between Automotive Retail and
State of the Art in Retail Innovation
- Comparative Analysis between Different
Automotive Brands: Fiat vs. Volkswagen,
Citroen, Toyota, ecc; Lancia vs. ???, ecc.;
Alfa Romeo vs…
Format “PW 2”
- Format 2.1. “Interpreters and Evolution of
Socio-Cultural Models and Automotive
Retailing”
- Format x.x. “Unpleasant Touch Points in
current Customer Journey n FGA Dealer
vs. Competitor”
- Format x.xx: TBD (Customer Experience,
Mystery Shopping + Visuals, etc.)
Brief for Part 2
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In the Part 2 You will build the bridge between the Part 1 (Analysis of Leading Innovative
Cases in all the Retail contexts) and the Part 3+4+5 (Concept Development of innovative
services in Automotive Retailing).
In the Part 2 You will develop two basic activities:
- The evaluation of the “distance” between current practices in the Automotive Retailing
and the “State of the Art in Retail Innovation
- The comparative analysis between Automotive Retailing in different Automotive
Brands/Car Models
Your goal is to:
- Identify the unpleasant/pleasant “touch points” [TP] within the customer journey [CJ] in
a car dealership (especially by comparing the CJ in Automotive Retailing and the CJ in
Leading Innovative Retailers, and by comparing the CJ in a FGA Dealerships and the CJ in a
Competitors Dealership)
- Identify metrics/drivers (qualitative and/or quantitative) to evaluate and to compare the
different touch points (e.g. the atmosphere in the store, the relationship with the
salesman, the discovery of the car).
Part 2- Focus on Specific Purchasing Experience of
single Car Models
In order to simplify the analysis each group could study the whole customer journey (from pre-sales
activities as information searching to the after-sales as workshop services), moving from the
purchasing experience of a specific car model.
As every brand of FGA implies a different customer experience and a different customer journey, we
decided to divide groups by brands. Some groups will visit Fiat Car dealerships and their competitors,
other groups Lancia car dealerships and their competitors , and so on.
Each Group can send an email before Monday 5th of December, 3.00 pm, proposing a favourite couple
of Brand/Model FGA vs. Brand/Model Competitor. This proposal will be based on your opportunity to
have an easy access to the visits in Car Dealership Stores, e.g.:
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“1 FGA Dealer in Italy vs. 1 Competitor Dealer in Italy”,
or “1 FGA Dealer in Italy vs. 1 Competitor Dealer in your country”,
or “1 FGA Dealer in your country + 1 Competitor Dealer in your country”,
or “1 FGA Dealer in Italy + 1 FGA Dealer in your Country vs. 1 Competitor Dealer in your country”
or “1 FGA Dealer in Italy and 1 FGA Dealer in your country VS. 1 FGA Dealer in your Country and 1
Competitor Dealer in your country”
…
Part 2: Groups Division- First Draft
Definitive Assignment will be communicated by Monday 5th of December
1. Brand FIAT  Groups: 1,2,3,4,5,6,7,24,25, 17
 Purchasing 500 VS Purchasing Smart for 2 or Mini or Toyota IQ
 Purchasing Panda VS Kia Picanto or Toyota Aygo or VolksWagen Up
 Purchasing Punto VS Ford Fiesta or Opel Corsa
2. Brand Lancia/Jeep Group 8,9,10,12,20, 18
 Purchasing Y VS Purchasing VolksWagen Polo
 Purchasing Musa, Y VS Citroen C3 or Toyota Yaris
 Purchasing Compass VS Nissan Qasquai (only group 20 out of the 5)
3. Brand Alfa Romeo  Group 13,14,15,16,19, 23
 Purchasing Mito VS VolksWagen Golf
 Purchasing Giulietta VS BMW 1
•
Each group could propose a favourite couple, but the definitive assignment will be defined according
to organizational constraints (higher numeber of Brand Fiat Dealership, lower number of premium
car models and Brand premium dealerships, etc.)
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General Information
Brief and Contents
Methodologies and Tools
Tips
Format to use for the Delivery
Part 2 – Tools for Each Methodology
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• Each Group could adopt one or more methodologies (e.g. dividing the
roles between the single members of the group):
 Mystery Shopping, interacting with Salesmen (especially for
“purchasing touch points”)
 Analysis of Websites and Social Network activities (especially for
“pre-purchase touch points”)
 Visit in the Car Dealerships (especially for observing other
visitors/shoppers and for observing the sales activities developed
within the store)
 Interviews of shoppers/visitors at the exit of car dealership (e.g.
asking for unpleasant moments, for specific touch points, etc.)
 …
Mystery shopping
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Definition from Wikipedia:
• “Mystery shopping or a mystery consumer is a tool used externally by
market research companies or watchdog organizations or internally by
companies themselves to measure quality of service or compliance to
regulation, or to gather specific information about products and services.
The mystery consumer's specific identity is generally not known by the
establishment being evaluated. Mystery shoppers perform specific tasks
such as purchasing a product, asking questions, registering complaints or
behaving in a certain way, and then provide detailed reports or feedback
about their experiences
Tips for the Mystery Shopping
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Before the visit:
 Prepare your original “initial touch point list-evaluation criteria” (it is important
that each group will be able to identify specific touch points, coherently with
the goals/contents of the Part 2)
 In order to prepare your “initial touch point list-evaluation criteria”, please read
other Mystery Shopping (like the Interauto 2011 in next slides from slide n. 16
to n. 19) and Tips for each Brand/Car Model (from slide n. 26 to n. 32)
 Prepare your speech and your questions
 Pay attention to the sequence of activities (pre-purchase, purchase, afterpurchase) in order to identify/label the relevant “touch points”
 Try to use Your experience in the Part 1 in order to define a first draft of touch
points and a measurement scale of their performance. You can use both
qualitative evaluation (e.g. Atmosphere: Warm, Elegant, Quick & Dirty),
and/or quantitative evaluation (e.g. from 1- very poor level to 10-outstanding
level)
During the visit:
 Pay attention to the expected “touch point list-evaluation criteria”
 Pay attention to new “touch points” that can emerge during the visit
InterAutoNews: The Mystery Shopping in Italian Car
Dealerships
InterAutoNews 11/2000
InterAutoNews 11/2003
2011 InterAutoNews Mystery Shopping
Access to the
car model
Presentation
of the car model
8,0
8,0
7,4
7,3
7,5
7,9
7,5
7,8
7,5
7,1
7,0
7,8
7,5
7,6
7,1
6,4
7,8
7,7
7,6
7,1
7,1
7,4
7,5
7,5
7,4
6,5
6,0
1/3
7,2
7,2
6,1
7,0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
Selling
Argumentations
8,9
8,8
8,8
8,7
8,6
8,5
8,6
8,5
8,5
8,4
8,3
8,4
8,3
8,6
8,4
8,4
8,3
8,2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
2011 InterAutoNews Mystery Shopping
Test Drive
4,3
Delivery of business card
7,5
4,0
3,7
3,8
7,0
3,7
6,5
3,6
3,3
2/3
3,6
2,9 2,9 3,0
3,0
6,9
7,0
7,3 7,3
6,8
5,9
6,0
3,0
2,8
5,9
5,5
5,3
5,0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
5,2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
Request for customer’s phone
number
Listening to/ Asking for
customer’s needs
7,0
5,0
6,2
6,0
5,0
5,0
4,0
3,6
3,7
4,3
5,5
5,2
4,4
6,2
4,5
5,2
5,1
4,0
3,6
3,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2010
4,9
4,0
3,7
3,0
4,9
2005
2006
2007
2008
2010
2011 InterAutoNews Mystery Shopping
3/3
Proposing Price
Discount
Proposing
Additional Services
10,0
5,0
9,7
9,5
9,7
4,0
9,0
3,5
8,5
3,0
8,0
2,5
7,5
7,5
2,0
1,5
7,0
6,5
4,8
4,5
0,6
1,0
6,1
0,6
0,5
0,0
6,0
2005
2006
2008
2010
2007
2008
2010
Part 2 – Tools for Each Methodology
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• Each Group could adopt one or more methodologies (e.g. dividing the
roles between the single members of the group):
 Mystery Shopping, interacting with Salesmen (especially for
“purchasing touch points”)
 Analysis of Websites and Social Network activities (especially for
“pre-purchase touch points”)
 Visit in the Car Dealerships (especially for observing other
visitors/shoppers and for observing the sales activities developed
within the store)
 Interviews of shoppers/visitors at the exit of car dealership (e.g.
asking for unpleasant moments, for specific touch points, etc.)
Analysis of Websites and Social Network activities
(especially for “pre-purchase touch points”)
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• Distance between automotive retailing and best cases of innovation in
“internet-based” pre-purchase activities
• Specific unpleasant touch points during the “internet-based” prepurchase activities in automotive retailing (e.g. lack of
services/information that are usually expected in other industries)
• Specific pleasant touch points during the “internet-based” prepurchase activities
• Relevance of social networks, viral marketing, mouth to mouth effects
• …
Part 2 – Tools for Each Methodology
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• Each Group could adopt one or more methodologies (e.g. dividing the
roles between the single members of the group):
 Mystery Shopping, interacting with Salesmen (especially for
“purchasing touch points”)
 Analysis of Websites and Social Network activities (especially for
“pre-purchase touch points”)
 Visit in the Car Dealerships (especially for observing other
visitors/shoppers and for observing the sales activities developed
within the store)
 Interviews of shoppers/visitors at the exit of car dealership (e.g.
asking for unpleasant moments, for specific touch points, etc.)
Visit in the Car Dealerships
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• Capturing the current MEANING of the visit/shop in a car dealership
• Capturing the atmosphere of the car dealership, understanding the
cultural background
• Observation of visitors/shoppers in order to identify
unpleasant/pleasant touch points
• Identification of missing touch points (e.g. comparing with leading
innovative retailers)
• Identification of defective/outdated touch points (e.g. comparing with
leading innovative retailers)
Part 2 – Tools for Each Methodology
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• Each Group could adopt one or more methodologies (e.g. dividing the
roles between the single members of the group):
 Mystery Shopping, interacting with Salesmen (especially for
“purchasing touch points”)
 Analysis of Websites and Social Network activities (especially for
“pre-purchase touch points”)
 Visit in the Car Dealerships (especially for observing other
visitors/shoppers and for observing the sales activities developed
within the store)
 Interviews of shoppers/visitors at the exit of car dealership (e.g.
asking for unpleasant moments, for specific touch points, etc.)
Interviews of shoppers/visitors at the exit
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Introduce yourself as students of MOI Politecnico di Milano
Show a letter of presentation by your professor
Request for “5 minutes for answering”
Only 4 or 5 simply questions
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General Information
Brief and Contents
Methodologies and Tools
Tips
Format to use for the Delivery
Tips for ALL BRANDS
Touch Points to take into consideration during visits in car dealerships
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- Entrance in the store/Welcoming : what is your first impression? (nice atmosphere,
clean environment, fresh retail..), Is the welcoming exciting/friendly…? Are waiting times
long? Do you feel served or abandoned?
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Experiencing the car (Contact with the product)

Which part of the car provides you more emotion?

Is the salesman presenting you the car in an interesting way (letting you discovering
it) or does he list the elements of the car as a boring brochure?

Are the advantages of the car underlined to you? (as is to say: do you come back
from the dealership with a clear idea of the advantages for you?)

Which characteristics of the car would require a digital support (ipad..) to be
explained better to customers?

How is the quality of information given? (Technical knowledge: Do you have a clear
understanding of the technical elements you are interested in?)
Relationship with the salesmen:
-
Do they LISTEN to you? Are they able to talk to you about the elements you are
more interested in?
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Is the salesman PASSIONATE about the car model and does he convey it to you?
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Does the salesman give you valid arguments for the characteristics of the car he is
describing?
Tips for single brand: FIAT
Touch Points to take into consideration during a visit for a FIAT Car Model
The comparison should be done as follows:
You have to go to a car Fiat Car dealership acting as if you are buying a 500,Panda, Punto.
By doing that, you should observe the elements listed in the following slides, by asking
questions to salesman and evaluating your overall experience in your journey.
The same should be done for competitors
Compare purchasing a 500 vs Mini, Smart for 2, Toyota IQ,
Compare purchasing Panda vs Up! , Kia Picanto, Toyota Aygo
Compare purchasing Punto vs Ford fiesta , Opel Corsa
Tips for Fiat Car Models:
500:
How is the salesman explaining/proposing twin air, start and stop, ecodrive? Do you have a
good experience of it?
Panda:
How is the salesman explaining (giving supportive arguments) about usability, functionality,
versatility and safety?
Punto:
How is the salesman explaining (giving supportive arguments) about reliability and
usability?
How is the salesman explaining ecodrive? Do you have a good experience of it?
Tips for single brand: ALFA ROMEO
Touch Points to take into consideration during a visit for Alfa Romeo Car
The comparison should be done as follows:
You have to go to a car Alfa Romeo Car dealership acting as if you are buying a Mito or
a Giulietta. By doing that, you should observe the elements listed in the following
slides, by asking questions to salesman and evaluating your overall experience in your
journey.
The same should be done by going:
- to a BMW MINI Car dealership by acting as If you are buying a Mini
Tips for Alfa:
Would you buy the car after the talk to the salesman?
Does he believe in the car?
Where is the focus of the talk? (costs, performance, ..)
How do salesmen give supportive arguments about technology as Multiair 135?
Tips for single brand: LANCIA
Touch Points to take into consideration during a visit for a LANCIA CarModel
The comparison should be done as follows:
You have to go to a car Lancia Car dealership acting as if you are buying a Lancia Y. By
doing that, you should observe the elements listed in the previous slides, by asking
questions to salesman and evaluating your overall experience in your journey.
The same should be done by going:
- to a Volkswagen Car dealership by acting as If you are buying a Polo
- to a Citroen Car Dealership by acting as If you are buying a C3
- to a Toyota Car Dealership by acting as If you are buying a Yaris
Tips for Lancia:
Is the salesman able to offer you a personalized car?
Is the salesman able to offer you accessories?
Is the salesman motivated?
Do you have a good technical explanation from the salesman? (twin air, start and stop, blue
and me, engine,..)What about it?
Tips for single brand: JEEP
Touch Points to take into consideration during a visit for a JEEP Car Model
The comparison should be done as follows:
You have to go to a JEEP Car dealership acting as if you are buying a Compass. By doing
that, you should observe the elements listed in the previous slides, by asking questions to
salesman and evaluating your overall experience in your journey.
The same should be done by going:
- to a Nissan Car dealership by acting as If you are buying a Qashquai (Compass)
- to a Land Rover Car Dealership by acting as If you are buying Land Rover 4x4 (Wrangler)
Tips for JEEP:
How is the salesman giving arguments for important details of the car both in Jeep and
competitors?
Tips for single brand: FIAT PROFESSIONAL
Touch Points to take into consideration during a visit for a FP Car Model
The comparison should be done as follows:
You have to go to a Doblò or a Fiorino. By doing that, you should observe the elements
listed in the following slides, by asking questions to salesman and evaluating your
overall experience in your journey.
The same should be done by going to competitors car dealerships:
For the comparison with Doblò
- Go to a Renault/VW Car dealership by acting as If you are buying a Kangoo/VW
Keddy
For the comparison with Fiorino
- Go to a PSA dealership by acting as If you are buying a Nemo/Ripper
Tips for Fiat Professional vs competitors:
Is the salesman using a digital support to let you experience Doblò?
How do salesmen give supportive arguments about characteristics desired?
What is offered along with the car? (financial services..)
Where is the focus of the talk? (costs, performance, ..)
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General Information
Brief and Contents
Methodologies and Tools
Tips
Format to use for the Delivery
Format 2.1. “General Information on Part 2”
 FGA Brand/Car Model Analyzed: _____________________
VS.
 Competitor Brand/Car Model Analyzed: ________________
 Place and Date of Visit:
 First Visit: ______________________
 Second Visit: ______________________
 Eventual other Visits: ______________________
 Methodologies Adopted for the Analysis (please tick all that apply):
 Mystery Shopping
 Analysis of Websites and Social Network
 Visit in the Car Dealerships for observing other visitors/shoppers
 Interviews of shoppers/visitors at the exit of car dealership
 Other: __________
Format 2.1. “Distance between the Customer Journey in FGA
Dealer and the State of the Art in Innovation in Retail”
General Description of the Customer Journey in FGA Dealer.
Distances between the Customer Journey in FGA Dealer and the
State of the Art in Innovation in Retail (please quote examples from
Part 1)
General Description of the Customer Journey in FGA Dealer.
Distance between the Customer Journey in FGA Dealer and the
State of the Art in Innovation in Retail (please quote examples
from Part 1)
OVERSIMPLIFIED EXAMPLE
CJ in FGA Dealer
Description of CJ, Main distances from CJ in Leading Innovative retailer that could be
used as reference: …….
CJ in Innovative Retailer
Innovative Touch
Points….
Format 2.2. “Distance between the Customer Journey in FGA
Dealer and the Customer Journey in Competitor Dealer”
General Description of the Customer Journey in
Competitor/Other Carmaker Dealer.
Distances between the Customer Journey in FGA Dealer
and the Customer Journey in Competitor/Other Carmaker
Dealer
Format 2.3. “Reasons of Distances”
Reasons of Distances Between CJ in FGA Dealer and CJ
in Leading Innovative Retailers/Best Automotive
Competitors
Format 2.4. “The Unpleasant Touch Points in the Customer
Journey in FGA Dealer”
The Unpleasant Touch Points in FGA Dealership (the
current meaning of the Visit in a Car Dealership):
Description + Visualizing
Comparing The Unpleasant Touch Points in FGA
Dealership with Other Carmakers/Competitors Dealer:
Format 2.5. “The Pleasant Touch Points in the Customer
Journey in FGA Dealer”
The Pleasant Touch Points in FGA Dealership (the meaning
of Visit in a Car Dealership):
Description + Visualizing
Comparing The Pleasant Touch Points in FGA Dealership
with Other Carmakers/Competitors Dealer:
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Format 2.6.1. “Comparing Single Touch Points for the Purchasing Experience
of
the Car Models “____ vs ____ - Touch Point n.1 “…………………..”
Qualitative Comparison
Between FGA Car Models and Competitors Car Model:
Quantitative Comparison
Between FGA Car Models and Competitors Car Model
(and State of the Art Reference, as Interauto Mistery
Shopping or Leading Innovative Retailer):
Format 2.6.1. “EXAMPLE Comparing Single Touch Points for the Purchasing
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Experience of the Car Models “ Lancia Y vs VW Polo - Touch Point n.1 “Access
to the Product”
Qualitative Comparison
Between FGA Car Models and Competitors Car Model:
… on the websites…
… in the first contact when you enter
… displaying the product during the presentation
.. Using innovative technologies for the configuration of the product
Quantitative Comparison
Between FGA Car Models and Competitors Car Model
(and State of the Art Reference, as Interauto Mistery
Shopping or Leading Innovative Retailer):
a
10
8
f
6
b
4
2
FGA
0
VW
State of the Art
e
c
d
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Format 2.6.2. “Comparing Single Touch Points for the Purchasing Experience
of
the Car Models “____ vs ____ - Touch Point n.2 “…………………..”
Qualitative Comparison
Between FGA Car Models and Competitors Car Model:
Quantitative Comparison
Between FGA Car Models and Competitors Car Model
(and State of the Art Reference, as Interauto Mistery
Shopping or Leading Innovative Retailer):
44
Format 2.6.3. “Comparing Single Touch Points for the Purchasing Experience
of
the Car Models “____ vs ____ - Touch Point n.3 “…………………..”
Qualitative Comparison
Between FGA Car Models and Competitors Car Model:
Quantitative Comparison
Between FGA Car Models and Competitors Car Model
(and State of the Art Reference, as Interauto Mistery
Shopping or Leading Innovative Retailer):
45
Format 2.6.n. “Comparing Single Touch Points for the Purchasing Experience
of
the Car Models “____ vs ____ - Touch Point n. “…………………..”
Qualitative Comparison
Between FGA Car Models and Competitors Car Model:
Quantitative Comparison
Between FGA Car Models and Competitors Car Model
(and State of the Art Reference, as Interauto Mistery
Shopping or Leading Innovative Retailer):
Format 2.7. – Conclusions of Part 2 of the Project Work
General Comments connecting results of Part 1 and Part 2 of Project Work in Your Group
The Emerging Meaning of the Visit in an Innovative Store/retailer (from Part 1) and the
Current Meaning of the Visit in a Car Dealer (From Part 2)
General Comments connecting results of Part 2 and Part 3 of Project
Work in Your Group (insights for innovation in Automotive Retailing)
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