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    Sullivan Ford Auto World

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    Vignesh RV
    Sullivan Ford Auto World, a family-run car dealership founded by Walter Sullivan, is facing financial troubles. Carol Sullivan-Diaz, Walter's daughter and current owner, took over the business which averages 1,100 car sales per year but has been running at a loss for the past 6 months. A survey found the dealership's service department satisfaction rates placed it in the bottom 25% despite high initial customer satisfaction. Carol must decide whether to sell the struggling business or try to improve its service quality through changes to turn it around.

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    Sullivan Ford Auto World

    Uploaded by

    Vignesh RV
    399 views12 pages
    Sullivan Ford Auto World, a family-run car dealership founded by Walter Sullivan, is facing financial troubles. Carol Sullivan-Diaz, Walter's daughter and current owner, took over the business which averages 1,100 car sales per year but has been running at a loss for the past 6 months. A survey found the dealership's service department satisfaction rates placed it in the bottom 25% despite high initial customer satisfaction. Carol must decide whether to sell the struggling business or try to improve its service quality through changes to turn it around.

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    Sullivan Ford Auto - Case Analysis

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    Sullivan Ford Auto World, a family-run car dealership founded by Walter Sullivan, is facing financial troubles. Carol Sullivan-Diaz, Walter's daughter and current owner, took over the business which averages 1,100 car sales per year but has been running at a loss for the past 6 months. A survey found the dealership's service department satisfaction rates placed it in the bottom 25% despite high initial customer satisfaction. Carol must decide whether to sell the struggling business or try to improve its service quality through changes to turn it around.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    399 views12 pages

    Sullivan Ford Auto World

    Uploaded by

    Vignesh RV
    Sullivan Ford Auto World, a family-run car dealership founded by Walter Sullivan, is facing financial troubles. Carol Sullivan-Diaz, Walter's daughter and current owner, took over the business which averages 1,100 car sales per year but has been running at a loss for the past 6 months. A survey found the dealership's service department satisfaction rates placed it in the bottom 25% despite high initial customer satisfaction. Carol must decide whether to sell the struggling business or try to improve its service quality through changes to turn it around.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    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.

    IBS - Bangalore

    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%

    IBS - Bangalore

    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
    6

    IBS - Bangalore

    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?

    IBS - Bangalore

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

    Product Vs Service

    Supplementary Service
    vehicle servicing
    Consulting Hospitality
    IBS - Bangalore 8

    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

    IBS - Bangalore

    10

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

    IBS - Bangalore

    11

    AND NOW.

    OPEN TO THE CLASS.!!! THANK YOU

    IBS - Bangalore

    12

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