the five fingers

The Five FingersProduct and Service Innovation Final Project

KWON

YOONSuji Bo-

rye

JiEun

?!

Ever felt helpless in the rain?

Not everybody is prepared all the time

A service Which can

save you the troubles

Umbrella Lending Service


Solution: Lending Service in CV2Expected Effectiveness3

Problem Definition1

Umbrella Lending ServiceProblem Definition

So one day you wake up...

The Five Fin-gers


Turn on the television...

The Five Fin-gers


But it’s too sunny to rain!

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So you just decide to leave them home

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You come out of the station and …

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What Would you do?


1. Buy a new umbrella

3. Wait until rain stops

2. Go without an umbrella

The Five Fin-gers



Problem Definition1

The Five Fin-gersUmbrella Lending Service

Service for convenience store

Lending Umbrella for Free!

Procedure1. When it rains, go to a convenience store2. Ask for Umbrella lending service and deposit 3,000 Won3. Go home with the umbrella4. Next day, return the umbrella to a convenience store on your way 5. Receive 3,000 Won

HOW? • By utilizing infrastructure of convenience stores

• Using deposit – Return System• Adding Advertisement in the Umbrella• Creating more ‘purchase opportunities’

The Five Fin-gers

AdvertisementThe umbrella will contain an ad(Wing & Handle)This will pay for manufacturing cost of Um-brella

Umbrella Lending ServiceProfit and Cost Structure

The umbrella lending service would just be enough to sustain its operation. However, it would connect to possibilities of additional sales which will benefit

the convenience store

2,000 printed umbrella costs = 10 Million KRW = 5,000 Won per Um-brella

Manufacturing Cost

Advertisement Profit = Manufacturing Cost

BUT!

The Five Fin-gers

• Most accessible location from any part of an area.

• Especially around break points of public transporta-tions

• Distribution Infra which con-nects all the convenience store

Umbrella Lending ServiceDistribution Channel & Method

Why Convenience store?


Distribution System of Convenience Store

Centrally Controlled1 2 Daily Distribution

Region1: In-cheon

Region2 : Yeongi

Region3 : Gwangju

Region4 : Gimhae

Region5: Yangsan

Region6 : Jeju

• High percentage of In-sourcingDistributor Coverage(%)InSourcing 72%

Outsourcing 23%Others 5%

• Secondary control tower in each region

(Source: 2010 Annual Report of KACS)

• Continuous Logistics flow for various demands (at least twice a day)

Product Type Number of shipping/week

Processed Food 4.5Liquor 5.5Milk 7.0

Beverage 5.5Snack 4.5

General Merchandise 3.3Daily Raw Food 9.2

Daily Processed Food 9.3Fresh Food 14.0


Application to the Service


Application in Five Fingers’ Service

Time

+/- in De-mandin each store

• Based on Efficient distribution system of convenience store, the balance in demand and supply of umbrella would be accomplished.

Mean level

Day 1: Rain Day 2: No Rain

Lend-ing Deficit

Return Sur-plus

Logistics from control cen-ter



Problem Definition1


Expected Effectiveness for Sponsor

Exposure to Customer!!!


Expected Effectiveness for Customer

SK saves me from the rain!!

Don’t have to Stack up

piles of umbrellas!

I can go to anyConvenience store to return


Expected Effectiveness for Convenience Store

Visit store Twice. Possibility of purchase “This plus and a lighter please”

So don’t be sad when you don’t have an umbrella

Sometimes.... Just Enjoy the Rain!

THANK YOU FOR LISTENING- The Five Fingers -

the five fingers

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