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Analysis of CarDrops Business Proposition
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Analysis of CarDrops Business Proposition

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Analysis of CarDrops Business Proposition Analysis of CarDrops Business Proposition Presentation Transcript

  • CARDROPS MODELANALYSISA Devil’s Advocate View
  • It is not about convenient delivery...Its about secure storageBut is a car boot secure?• Dont leave valuables in your car• Parking lot not responsible for loss/theftIf people are anxious about leaving items intheir car, then CarDrops defeats thepurposeFraming the Service
  • Car is a physical extension of the owner• Emotional attachment• Willing to give access to some third party?• Especially at times when owners are not nearbyFear of turning their cars into potentialtargetsPopular in-car services involve the owner inthe car or under supervisionInvading Personal Space
  • Target Group SizeOwners with own carsThat are not hatchbacksThat have regular work locationsNot in protected parking areasCannot receive parcelsat work
  • Target Group SizeOwners with own carsThat are not hatchbacksThat have regular work locationsNot in protected parking areasCannot receive parcelsat workAcceptance of Night-time delivery• Anxiety• HassleIs this less convenient than using apick-up point?
  • Value Proposition ComparisonCompetitor Cost Security Effort ConvenienceKiala     DHL      DPD      BOL.COM     TNT      
  • Value Proposition ComparisonCompetitor Cost Security Effort ConvenienceKiala     DHL      DPD      BOL.COM     TNT      Future Proof?What if a competitor partnered with a wide-range of 24 hr distributionpoints?• Petrol Stations• Fast-food drive-thrus• Fitness CentresTargeted MarketingX-Promotions
  • Reposition• Cost of membership• Perception of inscecurity/viable target• Turning off tracking (lost revenue streams)CarDrops must be used almost daily to offset:• Food (including fresh, frozen*, warm)• Necessities (Diapers, toiletries, etc.)• Entertainment (DVD rentals, flowers, etc.)• As well as weekly shoppingCarDrops "removes" end of workday errands:
  • Recommendations• Partner with local chains to allow the deliverywithout a minimum transaction1• Insulated containers (fresh, frozen*, warm)2• Subscription-only pricing option3• Absorb merchant delivery costs in monthlysubscription (where possible)4• Revenue stream through selling trackinginformation5
  • Key Partnership (Albert Heijn)CarDrops PartnershipAH Deliverycost isremovedSent toCarDrops tosort and deliverSorted by AH,CarDrops picksup & deliversExtend AHdelivery zoneTargetedMarketingCurrent stateOnline shopping anddelivery from €4.95 +premiumDoes not deliver to northernNLMain cost comes fromdelivery not order picking
  • Hurdles• Technical and/or logistical insulated container solution1• Partnership & pricing model (is €99/year still viable?)2• Changing consumer perception3• Quick deliveries (i.e before 5 pm when ordered thenight before)4• Privacy issues surrounding sharing tracking informationwith third parties5
  • The make-or-break for many online storesis not in delivery but in the management ofexchanges/returnso How does CarDrops fit into this?Question