Quick Lane in Canada

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Agenda

• Introduction/Background

• Review internship objectives

• Summarize performance initiatives

• Process overview

• Conclusion

Introduction/Background

• Quick Lane (QL) and Fast Lane (FL) were introduced at roughly the same time; but as QL has continued to grow in America, Canada has reduced FL support over the year, and now the program is on auto pilot.

• 15 weeks ago, I was tasked with aiding the initiative to rebrand 54 Canadian FL stores with the Quick Lane brand.

Student Objectives Overview

1. Understand current QL and Fast Lane networks. Develop matrix that compares FL to QL.

2. Assist in the documentation, planning and prelaunch phases required to launch Quick Lane in Canada.

3. Work with QL NA and FOC personnel to develop business plan showing how QL model could be leveraged. ID QL elements that could/should be launched in Canada.

4. Investigate additional profit opportunities for FMC and dealer.

5. Work with FOC to develop "rebrand" business case for FMC execs and dealers.

Objective 1 Understand Current QL and Fast Lane

Networks

• Understanding QL/FL Network

• Matrix

• Current FL Metric Performance

• QL Vision

• QL in America today

Understanding QL/FL Network

• I was able to understand the current FL/QL process, procedures and network by:– Toured QL’s in the local area– Attended immersion training– Toured Ford of Canada HQ and local FL network– Attended meetings that were relevant to QL

operations– Participated in discussions that dealt with FL to QL

transformation

Matrix of QL vs. FL

Quick Lane Vision

• Network of branded stores• Dedicated to delivering convenience with

confidence• Strategically placed to ensure success

GOALS:– Improved Customer Satisfaction– Increased Dealership Traffic and Sales– Improved Company Parts Sales

Quick Lane in America

• 569 facilities at the end of June 2010

• 409 Integrated• 129 Stand Alone Onsite• 40 Stand Alone Off Site

• P5 Comparison

• Quick Lanes had average monthly QL operating profit of $24,000

Sales Traffic

QL 6.2% 3.9%

Non QL 4.5% 1.9%

Memo p7 13.0% 5.2%

Objective 2Documentation, Planning and Prelaunch

Phases

• Why Rebrand in Canada?

• QL Opening Process

• Fast Lane Performance

Why Rebrand in Canada

– Quick Lane program as administered in the U.S. will encourage greater traffic and sales at Canadian locations

– Single brand strategy will enable Canada to leverage tools/resources that have already been developed in the U.S.

– Consumers are becoming GLOBAL citizens and solitary brand enables Ford and dealers to capitalize on building consumer awareness

– Quick Lane is already expanding internationally

QL Launch Process Roles & Responsibilities

• The Canadian team was interested in which people or activities were involved in the various phase of the launch process and their roles & responsibilities.

• I developed a document that identifies each person involved in the QL opening process and there roles and responsibilities. Timing of each activity was also provided.

• Canada is hoping to use this as an outline when they begin their rebrand process.

Fast Lane Network is Doing Well in Canada

• 54 Fast Lane Dealers in Canada• FL Dealers as a whole are still driving the business vs.

non-FL dealers – with higher sales and traffic

-2%

-1%

-1%

0%

1%

1%

2%

2%

3%

3%

4%

YOY Parts & LabourSales

3% 1%

YOY RO Count 3% -1%

Fast Lane National Average

2009 vs. 2008Page 5 FMC 100

Objective 3Resources/Materials could be Leveraged

American• E-resources• MSX Data Reporting• Brand Development

– Market Opportunity Analysis/ Scorecard

– Interior Elements & Moda360– Uniforms– POS/Style Guide (Look and

Feel of the Brand) – Ad-Creator

• Misc– Pro-Forma– French Translation– Immersion Training

Canadian• Weekly Newsletters• Brochures

E-Resources

• QL Facilities Web Portal– Tracks Key milestones for dealers and QL team. Could be leverage to

keep tabs on new QL in Canada

• B2B/Quicklanedealerconnection.com– Serves as a one-stop portal/resource for all things Quick Lane. Dealer

in Canada would find this convenient for there QL integration

• B2C/Quicklane.com– Exposes customers to the Quick Lane brand and Allows them to

search for existing Quick Lanes. Could help bring exposure to the market for consumer searching for “Quick Lane” in Canada

• Materials/Shopquicklane.com– Makes purchasing materials for newly converted FL a breeze and can

be leveraged by the Marketing Attack Package that will be provided

Data Reporting MSX

• Currently the Canadian team is using a third party to produce an executive summary style document their Data (Similar in fashion to our executive summary)

• They are in the process of transferring the reporting needs to MSX

• Will allow them the ability to monitor the profitability and performance of their new QL’s and deepen more robust reporting ability

% FLM UIO

MajorCompetitor

Count

Distance toCompetitors

Avg. Consumer

Expenditure

HouseholdCount

Site Score(Performance Against Index)(Performance Against Index)

•Reviewed MOA and MMRP tool from the QL side.

•Canada will leverage MMRP tool and the MOA to create a Site Score Card

•Canada will use top 5 Fast Lanes as a benchmark in the Site Score Card.

•For Canada, the consumer expenditure is not itemized. They are considering this breakdown to assist further.

RESOURCE - Market Opportunity Analysis (MOA) – SITE SCORE

SAMPLE Scorecard and Site Score

• Not Available in Canada Yet

Interior Elements & Moda360

• All FL will be stripped of their current cushion configurations and replaced to fit the QL color scheme

• Moda360 would be too expensive for this venture. Therefore, another party will be utilized for this service

• For future solutions Moda360 will be considered for the Canadian market

Uniforms

• Our uniforms are designed by Team Detroit for our QL employees

• They are made by Red Cap• Canada could use these to help

promote and strength the brand recognition of QL in the mind of the consumer

• Canada has not inquired about this solution as of yet but money in the Marketing Attack Package can be utilized

POS/Style Guide• Our Style Guide is created by Team

Detroit • It is a very effective tool in setting

Brand Guides• If FL become QL, this will be a

essential resource to leverage. • It will help the Dealers become to the

different brand identity and practices for QL’s

• Pos is also created by Team Detroit and is distributed for printing to local companies

• Future solutions for print companies in Canada have not been determined as of date

Ad-Creator

• Makes creating advertisements for QL very easy for the dealer

• Must be reviewed by Canadian legal team of Ford before adverts. can be distributed to public

• Would ease dealers into a new transition of using QL ad-mats

Pro-forma

• Reviewed QL assets and determined that our Pro-Forma could be valuable to the Canadian team

• Canada currently does not use any type of Pro-Forma for Fast Lane

• Canada intends to implement this tool in the near future

• The Canadian market requires by law that all reading materials and signage are available in Quebecois French

• The E&G team for QL uses René A. Javier-Oronoz

• The cost was minimal($12,000 USD) and service can be rendered within 3 weeks

French Translation Consultant

Immersion Training/Sales Training

• Immersion Training – A required training class that teaches the following:– QL philosophy– Operations– Hiring Staff– Brand Guide Lines– Tires`– VCU – Separate from Service– Separate Accounting

• Sales Training – Extreme Retail class that focus on training about the benefits of using the VCU. How it is used as a sales tool when the customers car is in the RED danger zone.

Canadian Applications that Could be Leveraged

• Weekly news letter– Written by National Field Manager

• Brochures in house that educate customers about their vehicles – Ex. Tires, Brakes, Batteries

Objective 4Additional Profit/Revenue Streams

• Because FL is looking to rebrand and exists within a functioning system, there are reduced opportunities for additional revenue streams– Reduced Ford participation in dealer visit costs

• With a new launch, many of the aspects of how we target, position, structure, and create a brand can be tailored to maximize profit.

Objective 5Rebrand Business Case for FMC

• Business Case of International Brand

• Alternatives– Team Detroit– Signage Quotes

• FL Rebrand Strategy – New Structure of QL in Canada– Marketing Attack Package

Business Case of International Brand

• PRO– International

Recognition– Strength in

numbers– Leveraging &

Adopting Processes from Country to Country

• CON– Differences in Laws

and Processes– Different Types of

Target Markets & Economies of Scale

– Difference in Public Perception of Dealerships

Alternatives

• The FL team looked at some alternatives to the rebrand.– Team Detroit – Signage from AGI

• David Mondragon had said that cost was a crucial factor, and wanted to know why we could not just continue with Fast Lane, and grow from there.

• By investigating these alternatives I discovered they would actually be cost prohibitive instead of reductive

Team Detroit Web Conversion• If Canada continues the use of Fast Lane, the US can provide assets. • The costs to revise e-resources are indicated below:

– Quicklane.com Consumer Site• Asset redesign: $30,000

– Quicklaneopportunity.com Dealer Prospecting Site• Asset redesign: $100,000• Virtual tour and videos: $75,000

– Quick Lane Photographic Assets• Retouch all images (uniforms, signage, POS)

– 50 x $3,500 = $175,000

– Newspaper, Digital Display, Postcards, and Point of Sale• Redesign layouts = $150,000

– Brand Style Guide• Redesign = $40,000• Printing = $5,000

– Total estimate = $575,000

Signage RFQ through AGI(All prices are in USD)

• Refit Old Signs – – This cannot be provided by AGI because there is not enough information (CAD files) on the

original signs to create a realistic quote• New Install Sign –

– QL-2000 20 ft Pylon Sign = $12,834– QL-2016 16 ft Pylon Sign = $10,075– QL-2022 non-illum. 8' Entrance directional sign = $4,050– QL-2130 Fascia sign hand symbol 3' non-illum = $551– QL-2130 Fascia sign hand symbol 2' non-illum = $502– QL-2140 Fascia sign hand symbol 4' non-illum = $630– QL-2150 Fascia sign hand symbol 5' non-illum = $732– QL-2230 Fascia sign hand symbol 3' illum LED = $1,949– QL-2240 Fascia sign hand symbol 4' illum LED _= $2,305– QL-2250 Fascia sign hand symbol 5' illum LED = 2,634

• Shipping – $2,000 est. to Eastern Canada– $5,000 est. to Western Canada

• Installation– AGI has an install base in Canada and would be able to offer the same installation services

in Canada that we do for the dealers in the U.S.

Example of Conversion of Signage

FL Rebrand Strategy

• At first, Ford of Canada considered covering all signage and rebranding costs for the dealers. The estimate ranged from 1.6 to 1.9 million dollars (CAN).

• David Mondragon expressed concerns over the cost. Therefore the FL team has decided to lay the cost of signage on the dealerships, while still paying branding costs.

• The dealers will also be given Marketing Attack Package that will help recover some funds.

• A new FL structure would be created and they would begin to leverage our pro-forma in order to expand.

New Structure of QL in Canada

Ford of Canada

Director of Quick

Lane

1 French

Speaking

Specialist

(Quebec)

1 MSX Current

Field

Specialist (West)

(BC & Alberta)

National Quick

Lane

Operations

Manager

1 MSX Current Field

Specialist (West)

(Saskatchewan &

Manitoba)

1 Field

Specialist

(Ontario)

1 Field Specialist

(PEI, Newfoundland,

New Brunswick and

Nova Scotia)

Marketing Attack Package

• Ford of Canada intends to give dealers: – $10,000 put into Co-Op fund for 2 years

• Must follow Ford’s brand guidelines

– $10,000 – $15,000 for rebranding purposes• Uniforms• Paint• POS, etc.

Conclusion

By electing to rebrand the FL network, we support the One Ford concept by :– Having a singular brand identity– Leveraging processes internationally– Encouraging stronger domestic and

international consumer recognition– Standardization of company operations