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In the process of completing this report, the team received a lot of help from everyone.First of all, the group would like to express their sincerest thanks to all individuals andorganizations who wholeheartedly supported the group to complete this graduationthesis in the most practical way.

Besides, it is indispensable for the support of two lecturers Nguyen Quoc Bao and VuTung Linh. Thank you for your enthusiasm in the process of supporting, giving manygood and useful comments so that the team can complete this report to the fullest.At the same time, the group also received many valuable comments from lecturers inthe thesis grading committee of FPT University. All the valuable comments andencouragements of the teachers are great things to motivate the team.

S-car would like to thank each member for their efforts in completing the graduationthesis.

The group's project will have many shortcomings and limitations. We hope that theauthors will accept all valuable comments from readers.

Once again, the team would like to thank everyone.

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<b>TABLE OF CONTENT</b>

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<b>CHAPTER 4: COMPANY & PRODUCT48</b>

4.1.1. Introduction: Mission and Vision 48

5.5.1. Employees and Organization structure 94

7.1.1. Revenue Stream from Commission 102

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<b>CHAPTER 1: PROJECT INTRODUCTION1.1. Project Background</b>

<b>1.1.1. Background</b>

Owning a car has always been a trend in the world in general and in Vietnam inparticular. By 2025, the autonomous vehicle market will be worth some 400 billionU.S. dollars, globally, according to data provided by KPMG. According to an articleby the Euromonitor International, over the period 2016-2025, the global automobilesector is expected to grow at a 5% compound annual growth rate (CAGR). Over thenext five years, emerging nations are expected to lead demand growth for vehicles,while developed economies are expected to remain subdued due to crowded marketsfor new cars. Asia Pacific is forecast to be the fastest growing automotive producingregion globally by 2025, generating nearly 60% of global automotive output. Withsuch rapid growth, car warranty facilities and garages are also making a big explosion.Over the past few years, automobile maintenance in Vietnam has been increasinglyemphasised. Vietnam is also gradually presenting itself as a country of informationtechnology, which also makes it easier for technology projects to reach thecommunity. However, in this market, there is still a lack of management methods thatcan apply technology to not only car information such as identity, condition andmaintenance record but also allow car owners to choose and refer to many car repairgarage systems with diverse services and products. Integrating technology into vehiclediagnostics and management is believed to be an effective way to repair vehicles. Bydigitizing the storage and management of car information through a cloud database,car owners will save time and effort in managing that information. In addition,providing a platform to help car owners easily choose a reputable garage is also afeature that brings convenience to car owners. Beside that, in the context of Covid-19pandemic, Social distancing has been in place for quite some time. And this hasformed the habits of post-pandemic consumers, customers tend to have the habit ofgoing online to look for information and solutions about services and goods they want

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to buy more. This creates more opportunities for an online platform to help connectcar owners and garages like S-car.

Because of the above reasons, S-car was established, targeting the car repair andmaintenance market, specifically, the niche market is old and used cars.

<b>1.1.2. S-car - A Car care Service</b>

S-Car was established to provide convenience, safety and transparency in choosing aplace for car maintenance and repair. Understanding that waiting for car maintenance

<b>takes a lot of time, the pre-booking feature was created to optimize customers'</b>

valuable time. Moreover, information about reputable garages is still fragmentedacross the Internet when users have to search for information from articles and groups

<b>to online forums and then choose a garage to trust, the garages review feature was</b>

formed to give user a multi-dimensional views with the support from S-Car in fraudcases to ensure the safety of users. Moreover, to avoid the loss of service history

<b>manuals, S-Car also offers an Electronic Maintenance Record feature (EMR) ,</b>

which can track and retrieve vehicle repair histories by both car user and garages (viaS-Car app) when necessary.

<b>1.2. Market Problem Identification</b>

S-car have two main customer segments: Garages and car users so the problemidentification part is also divided into 2 sections: problems from garage owners andproblems from car users.

<b>1.2.1. Problems of Garage Owners</b>

Based on the online interviews with ten garages located in Da Nang City and twogarages in Ho Chi Minh city, information storing method and car repair history areconcluded to be the problems of garage owners

<b>● Unable to manage appointments effectively</b>

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The first problem that we noticed when interviewing is that many garages do not havean effective appointment management tool. Mr. Quang Anh, owner of garage HoangAnh Luc - a large garage in Da Nang city said that he often receives customersbooking appointments directly via phone number or from Zalo, then will make notesin a book for staff to handle these problems. However, there were times when hecouldn't remember to record all of those appointments, besides, customers who did notmake an appointment also made up a large percentage. Therefore, he shared that it isdifficult to optimize car repair slots in the garage and if it is during peak hours, it canlead to customers having to wait for a long time or even lose customers.

The second issue is operating costs. Maintaining the garage and running it requires alot of capital. They have to pay for equipment, facilities for personnel. Mr. Giau -owner of Khai Giau garage, Ho Chi Minh City, said that his garage is using 2 peoplejust for answering phones, quoting and arranging maintenance schedules. Therefore,digital transformation is sooner or later for him to streamline his management.

<b>● Vehicle's maintenance history</b>

From the interview, Mr. Quang Anh also shared the insight that it will be difficult torepair a car when not fully grasping the maintenance history of that car, because a carhas a lot of parts with different levels of detail. Therefore, without a complete vehiclemaintenance history, the mechanic also spends time figuring out what is wrong withthe car and sometimes the repair does not meet the customer's needs, causing them toreturn many times.

<b>1.2.2. Problems of Car Users</b>

<b>● Lack of comfort in choosing a reputable and suitable private garage</b>

Currently, there is no application to connect garage and car owners in the mostconvenient way. According to the survey, we found that the majority of customers willgoogle and search for garages near their home, which can lead to incorrectinformation because most of what customers search for are articles. Advertisementreports are paid for by registered garages, not by users. In addition, customers willpost on forums and communities on social networking platforms to find information8

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about reputable garages or repair places, in addition, they also go to car forums suchas autopro, autodaily for more information.

<b>1.3. Idea Introduction1.3.1. Value Proposition</b>

<b>i. Value Proposition for Car owners</b>

S-Car is an application that provides useful and convenient solutions to help connectcar users with owners while bringing values of transparency, safety and highinformativeness.

<b>● Transparency</b>

According to staffing and training policy, S-Car will provide a professional workingteam knowledgeable about the Vietnamese car market to give the best assessments toselect reputable garages into the system. In addition, common goods such as wax,coolant, car wash liquid, .. or common services such as car wash, engine cleaning,...will be publicly priced, which will help customers have time to choose the rightservice for their financial ability. And users who have experienced the service willmake public reviews to accumulate incentives from S-Car. Moreover, each car willhave a particular car ID, which enables the customers to look up their Car information,or Car maintenance's history by entering the Car ID account on the S-Car application.

<b>● High informative</b>

To ensure that customers have the most convenient and seamless experience and avoidthe trouble of having to search for too much information on their own when lookingfor a garage. The S-Car team will work directly with garage partners to ensure qualitybefore putting it into the system, displaying a transparent list of garages, divided byarea and city. Each customer account will be set up with electronic maintenancerecords (EMR) about the vehicle they own. When customers use the service, thegarage will be accessed in order to shorten the time to diagnose the car's fault or givecar care suggestions, buy and sell automotive parts more conveniently.

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<b>● Safety</b>

S-Car provides customers with safety when using our service, with an electronicmaintenance record (EMR) feature, which not only increases convenience because theinformation is stored in the cloud, but also a tool that help S-Car to protect thecustomer’s vehicles when there are dishonest or fraud car repair and maintenancecases from garages.

<b>ii. Value Proposition for Garage owners</b>

As a platform that connects businesses and consumers, S-Car will enhance serviceefficiency with technology. Core features and values are designed to make the garageeasy to find, attract potential customers and lessen effort to manage customerdocumentation.

<b>● Effectiveness</b>

With the vision of being an effective, scientific and logical connectivity platform,S-Car's founding team worked with 10 garage business owners in Da Nang city andHo Chi Minh city to understand and empathise for how a garage operates andproblems that a garage can encounter at every stage of operation. Since we alreadyhave certain insights into the needs of garage owners, We recommend a pre-bookingfeature to optimize repair slots in the garage. Through the evaluation and estimationwith Mr. Khanh - owner of Ninh garage, this feature can help increase 20-30% outputcapacity for his garage.

<b>● Relationship</b>

RLO Training/Bottom-Line Impact Group facilitator John Wafler, 2017 observed that“for many years, the auto repair industry has assumed average attrition rates in mostindependent shops at 20–25 percent. With better tracking systems implemented, weare actually measuring rates as high as 50–60 percent for many independent shops”.Therefore, S-Car provides a combination of tools that allow monitoring and customercare more effectively to help the garage increase the retention rate.

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According to a KPMG report, 75% of customers will prefer a brand when it has aloyalty program. S-Car provides a mechanism to accumulate points and exchangepromotions when using services at garages. Moreover, according to a survey by S-Car,up to 85% of users appreciate the electronic maintenance record feature and are readyto use the application again because of its usefulness. By directing vehicle owners to acentralized platform, electronic maintenance records will be easily accessed from thechat feature within the garage owner account, making it easier to connect and takecare of their customers.

<b>1.3.2. Products and Services</b>

S-Car is an application that provides useful and convenient solutions to help connectcar users with garage owners through these main functions:

<b>i. Electronic Maintenance Record (EMR)</b>

The EMR is a digital record of all customer information and the garages the customerhas visited. Customers can access it through S-car application. Customer phonenumber will be provided to identify customer and vehicle, each customer can registermultiple vehicles. When logging into S-car's website, by entering a phone number,customers can access and modify information related to themselves such as name,vehicle type, vehicle number, address, address.etc. In addition, the S-car app will alsodisplay the vehicle's maintenance history, the parts and components that have beenrepaired and replaced by the customer, the garages that the customer has visited.

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<b>ii. Pre-booking feature</b>

The pre-booking feature is one of the important features implemented in the S-Carapplication, after registering for an account, the customer will be redirected to themain page of the application, where there is a list of divided garages. By region, city,information and pictures of the garage are displayed with full information to ensuretransparency. After choosing a suitable garage, customers will proceed to book anappointment based on the time that they feel is suitable. Next is the service selectionprocess, as shown in the illustration, the Shinwa Pro garage will have three main carcare services. And finally, the process of verifying the scheduler's information and thevehicle's information. In case customers cannot make an appointment or can't findsuitable services, customers can contact S-Car's hotline or Chat with Garage to gettheir questions answered.

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<b>iii. Garages rating feature</b>

Garage rating is a collection of buyers' ratings and reviews on a garage after a serviceis completed. Buyers will be prompted to rate every service within 15 days of servicecompletion, and are allowed to edit their rating once within 30 days from the day theyfirst rated. Garages rating can range from a scale of 1 to 5 stars, with 5 being the best.Buyers are encouraged to include a description (at least 50 characters) and photos (atleast 1 photo) of their service in their review to earn more S-Car points. Buyers canview these ratings when they browse search results or the product page.

At S-Car, we strive to ensure a safe community for both buyers and sellers. Even aswe expect all garages to provide an ideal car care experience, this doesn't mean thatwe condone unreasonable customers.

Should garage receive reviews, ratings that are unjust or inappropriate to the product,including:

- Messages designed to mislead other customers- Use of inappropriate or foul language, pictures- Sharing of private information.

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Garages can make reports using the Report button. Then, S-Car will examine thereport and take necessary action.

<b>iv. 24/7 S.O.S</b>

With the vision of an advanced technology application, supporting users inmaintenance and repair effectively. Real-time crash rescue feature launched. The mainpurpose of this feature is to make it easier to rescue vehicles in trouble on the roadbecause rescue units will easily locate the vehicle (illustration figure) or simply incases that cars has not been used for a long time, resulting in not being able to start thecar

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<b>v. Management account for garage owners</b>

To help the garage manage the most user-friendly types of services, products andcustomer information, S-Car provides a separate account for garage partners. In thelogin / registration section, S-Car allows users to choose a personal account or agarage owner account (illustrated below). By using a separate account for the garage,the garage owner will easily manage the customer's car maintenance reservationschedule, negotiate the price and take care of the customer when receiving thebooking schedule. The functionality of the garage account in the S-Car system will bedemonstrated in the below figure.

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<b>CHAPTER 2 : MARKET ANALYSIS2.1 Automobile Industry Overview</b>

According to The Global Automative Market Overview.cdr, The automobile marketgrew +3.0% in 2018 from +3.1% in 2017 and slowed to +1.9% in 2019, with newvehicle registrations expected to exceed 100 million units by 2019, worldwide.Annual sales are predicted to reach 110 million units by 2022. The market is mainlydriven by demand in China and to a lesser extent India. However, for manufacturersand suppliers, the transition to electric vehicles and protectionism are leading tosignificant increases and increased costs, especially input costs, relocation. productionand sudden changes in the supply chain. Some automakers will be forced to spendCAPEX (Capital Expenditure) to meet short-term challenges and thus be unable todeploy the substantial funds needed to capitalize on the opportunities that come fromthe future of their automobiles.

<b>Figure : Global Vehicle Sale Medium Term Forecast (In million)</b>

The world auto industry produced more than 70 million cars and about 25 millioncommercial cars, trucks, vans and buses in 2018. These vehicles are essential to the16

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that cars that have expired genuine warranty will have the need to use the services ofgarage private external more than, so we decided to choose the number of carscalculated by 2018 as our customer segment. The market that S-car targets is the carmarket that is 3-5 years out of warranty, so according to ThanhNien newspapers,2018, about 752,650 cars are being used in Ho Chi Minh city and739,731 cars in HaNoi.The number of 1,492,291 units is also a reasonable calculation for S-car when itfirst entered this market.

<b>● Demographics</b>

Regarding demographic, we target customers from 25 to 44 years old becauseaccording to Giaxeoto.vn who got information from google analytics in 2017, the agesfrom 25-34 year olds account for 33.5% of total people who are interested in cars andoften visit the company to choose and buy cars here. The age from 34-44 years old is15.5%, because this is the age when people have status and consume the second mostcars. Moreover, according to statistics of the Ministry of Culture, Sports and Tourismin 2018, Vietnam is the 18th country in the world in terms of the percentage of peopleusing the internet and is one of the 10 countries with the highest number of Facebookand YouTube users in the world, in which youth and middle-age account for a largeproportion. Therefore, S-Car will have the opportunity to promote and convert thissegment into its main customer file.

<b>2.4.2 Customer Persona</b>

According to Adele Revella, the founder of Buyer Persona Institute, actionable buyerpersonas reveal insights concerning the buyers’ decisions - the specific attitudes,concerns, and criteria that drive prospective customers to decide on the product.Making fictitious people support the attributes of the ideal customers helps toobviously outline and section them for your content selling team. From that, thebusiness will choose the main focus cluster based on the kinds of individuals who fittheir product or service.

In this case, S-car’s customer is Hoang Thai who has a 2015 Mazda 2. Due to his busy32

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job and modern lifestyle, he does not have much knowledge about car repair andmaintenance and also has no relationship with private garages.

Source: Author’s design

<b>2.4.3 Customer Insight</b>

Customer insight is an observation on the behavioral patterns of your target customersthat can be used to make strategic adjustments to better suit their needs. They are theresult of data analysis and proactive effort to better understand an audience orcustomer base" (CoSchedule, 2021). Understanding the customer will tell the truthabout the situation that the customer is experiencing (Truth), unresolved difficulties inthe user's thinking (Stress) and changes in their perception (Motivation)."Accordingly, S-car builds customer insight based on three factors: Truth, Stress, andMotivation. However, every customer has worries that they can't say, or sometimesaccidentally doesn't realize it. So, based on the observations of the car owners of theauthors, S-car insight is "Take care of the driver with you".

<b>● Truth: Currently, Vietnamese people are gradually feeling "bored" of using</b>

motorcycles. According to a Q&Me survey, what makes them feel mostuncomfortable when using a motorbike is due to traffic jams, air pollution and33

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traffic accidents when it rains. Accordingly, 90% of those surveyed said theyhave a greater desire to own a car in the future because it gives them a sense ofsafety and convenience.

<b>Figure : Source Q&Me</b>

<b>● Tension: There are many users who feel confused about bringing the car to the</b>

garage for repair and maintenance, they take a long time to choose a suitablegarage. According to a team of 300 people, customers find it difficult to find areputable garage, with 42% of those surveyed wishing that they could find atechnology app that would help them solve this problem where they live.

<b>● Motivation: It shows social status symbol. According to the Vietnam Registry,</b>

cars will soon switch from luxury items with an ownership rate of 34 cars /1000 people (2020) into a popular item, because according to the generalpsychology of Vietnamese people, 42% of people aim to buy a car instead ofbuying a house as before. Along with the Q&Me survey, 67% of peoplesurveyed said that cars are a symbol of success. Of those, 51 percent thoughtbuying a car was a turning point in adulthood, and 49 percent thought carowners were wealthy.

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<b>2.4.4. Customer journey</b>

Customer journey map is a visualized summary of actions and experiences of how athe customer reacts to a specific situation. This diagram will illustrate what a customertends to do in cases step-by-step. Mapping a customer journey will help gaincustomer’s insights into their pain points; therefore, ensuring that the company willnot miss a chance to reach customers.

The journey focuses on Hoang Thai and his 2015 Mazda 2 car and illustrates how hefinds a treatment for his car (illustrated from the Figure below). The journey startswhen Hoang Thai discovers the very first problem of the car and ends when he finallyhas the right repair. The core reason of mapping the journey is to breakdown the painpoints of

customers and find out the opportunities in every phase. The customer journey ofS-Car is

divided into five phases: Discover the problem, Garage evaluation, Decision making,During and Post Garage reparation.

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<b>Figure: Customer Journey Map (Source: Authors’ design)● Discover the problem, garage evaluation:</b>

For the first two phases, S-Car realizes that Hoang Thai wasted a lot of time to find atrusted solution. All the advices, data and advertisements on the internet made himconfused and anxious due to overload and uncertified information. Therefore, S-Carsees an opportunity to build an all-in-one car care application service to servecustomers at more logical practices, which also is a chance to convince garages totransform their data into digital.

<b>● The Decision-making phase:</b>

In the Decision-making phase, Hoang Thai found a trustable garage, but there was aproblem with lack of instruction and low response from the garage. According to theinterviews that S-Car conducted with 10 garages , they replied that they often respond36

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to customers not fast enough and often miss customers. From here, S-Car will buildpre-booking features, along with a description of the garage's services, and a chatfeature with the garage to make it easier for customers to interact with the garage.

<b>● During garage, post garage reparation.</b>

In the next phase, Hoang Thai had to bring his 2015 Mazda 2 to a garage for directreparation, however, there was no guarantee if the garage was available or not. Thereis an opportunity for a digital system to show the working status of a garage with ahigh responsible way to drive customers to the garage. After arriving at the garage,Hoang Thai felt impatient when he had to fill in personal and vehicle information onthe form, he also felt confused because he couldn't remember what parts the car hadbeen replaced, ... because he lost his car's maintenance history book. Understandingthe inconvenience of the pre-diagnosis process, S-Car specifies that a digital system tostore customers data is very important to reduce the waste of time. After fixing the car,the car got better. However, Hoang Thai still has a fear that the parts that the garagehas repaired will be used and durable, making a complaint to the garage may bedifficult if he discovers that the car still has problems after taking the car home.Therefore, S-car will rely on the electronic maintenance record function (EMR) toevaluate complaints and implement user protection measures if necessary.

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<b>CHAPTER 3: COMPETITIVE ANALYSIS3.1. Overview of competitors:</b>

The explosion of the automobile industry led to the birth and development of businessmodels related to automobiles, especially garages. This opens up a dynamic andpotential market for businesses to participate and grow. In this section, the author willpoint out some specific competitors and divide them into two groups that are directand indirect competitors. Information about S-Car's competitors will be summarizedin the table below.

<b>Indirect Competiors</b>

Social mediafor automoblie

Social mediafor

<b>Activities</b> ScheduleaintenanceInformationconsultingNews

News sites andonline forums

News sitesand onlineforums

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<b>Strengths</b> Easilyschedule andsearch fornearby garagefacilitiesHave fullsupport when

customerusing thecompany's car

Easilyschedule andsearch fornearby garagefacilitiesHave fullsupport whenbeing acustomerusing thecompany's carDirectconnection tonew carmodels

customersusing theHuyndai's carscan use thisapp

Onlycustomersusing theHonda's carscan use thisapp

Not haveunique value=> easy to besubtituted byother flatform

Not haveunique value=> easy to besubtituted byother flatform

(Source: Authors’ design)

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<b>3.1.1 Direct competitors</b>

There is currently no direct competitor, according to the research of the authors, thecompetitors have the same or similar model as the S-Car are no longer working. Homepages or uploading these apps to your phone are difficult and almost unusable.

<b>3.1.2 Indirect competitors</b>

With the car market growing strongly, it is not difficult to have competitors with asimilar business model to S-Car, including myHonda+ and HyundaiMe. These twoapplications have the same main functions as S-Car: booking appointments,maintenance reminders, finding garages in the vicinity through GPS,... but whatmakes the authors list these apps as indirect competitors, but because they arein-house apps developed by Honda and Hyundai, only the owners of the company canuse genuine repair and maintenance services. Since the S-car doesn't share the samevision as the S-car to connect private garages with car owners, for that reason theauthors listed MyHonda+ and HyundaiMe as indirect competitors.

HyundaiMe is a phone app of Hyundai motor company launched in 2019. HuyndaiMeis built to make it easy for customers to use the company's services such as bookingand maintenance reminders, looking up information and prices for vehiclemaintenance at all levels, Vehicle purchase information, technical support and vehicleuse instructions,... with the strength that hyundai car owners will support all of thecompany's talents in using genuine maintenance garage services. HyundaiMe's maincustomer base is mostly the owner of the new Hyundai car with warranty, there will becustomers of hyundai's old car but will be negligible. In general, HuyndaiMe appfocuses on customer service and product marketing such as suggestions for findingsuitable cars, instalments, test drive registration,... Maintenance functions must not bedeveloped too strongly. The weakness many users rated not positive is that the app isslow, often the app error does not work smoothly.

MyHonda+ is Honda's phone app launched in 2019. Myhonda+ also has the samebasic functions as HyundaiMe and S-car. Besides, myHonda+ has support for the40

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