Provence brainstorming session 2006

THE EUROPEAN TH!NK BRAINSTORMING SESSION (Provence, July 22-23)

The purpose of the European brainstorming session , ten days after the original Google brainstorming session in California, was to dwell deeper into the issue on how TH!NK should organize to be a successful mobility company of the 21st century, and how a branding strategy should be developed. The following is a summary of the brainstorming session that was held in France on July 22-23. Fifteen people from 7 attended the session.

Highlights and Conclusions:

TH!NK has a competitive advantage by being able to produce a city vehicle which produces zero emissions and is affordable within the next 10-18 months. When coupled with the sale of solar panels or wind power credits, consumers can buy both their car and its future energy supplies all at once. This will be the only commercial available highway-safe car that would produce zero greenhouse gas emissions over its operational life time.

The Brainstorming Sessions addressed three dimensions

I. THE ORGANIZATION

A: What are the key characteristics of THINK as a 21st century organization?

Words the groups used for describing the future TH!NK organization were:

· Adaptable and Flexible

· Responsive

· Transparent

· No compromise

· Flat and efficient

· Local

· Confidence-oriented

The most important underlying concept of that organization is

TH!NK Globally – Act Local - which could mean the following:

· Global environmental benefits from local purchasing decisions;

· Global movement but local messaging.

· Global Corporation but locally controlled or anchored.

Some of the analogies and slogans that were used:

• THINK is to the current car companies as Google is to the Encyclopedia Britannica
• THINK is a lifestyle/a statement about the need to change the world.
• TH!NK should be looking to Silicon Valley, not Detroit or even Japan for its models.
• TH!NK: Changing the World / Saving the World One Car at a Time

B: Strong local organization

For the electric vehicle to succeed in the marketplace it will take a good local team in each regional area. Local officials and politicians will need to provide the necessary incentives. Electric utilities will need to assist in the development of the infrastructure. Economic development organizations will need to provide various types of support for the assembly plant.

• Because TH!NK will be using a chassis and an aluminum space frame, it will allow for lower cost and economically viable local assembly. The existence of a local assembly plant, which should also serve as the sales and service center, TH!NK has the opportunity to garner the necessary strong local mentioned above.

• Each local organization should be permitted to incorporate the corporate marketing theme into a strong-grassroots based effort using local symbols, icons, and personalities.

• Each local organization should be given clear metrics but room to be creative and dynamic.

• Local ownership should be strongly encouraged. TH!NK should consider the franchise model or at least shared ownership with a key individual or group. The local organization should be able to realize the upside potential of increasing sales.

• The local organizations should be given a local brand to further increase local support and buy-in. For example, the TH!NK facility in San Francisco could be called “TH!NK San Francisco”.

• One of the benefits of local assembly is that it would allow a customer to see his/her product come off of the assembly line and, after a ceremony and a test, be able to drive his/her car home. An added benefit of allowing this to happen is that it would strengthen the company’s image as being transparent and honest.

TH!NK could further support local community buy-in buy having a 501 (C) 3 non-profit organization be the recipient of a certain percentage of its local profits. That entity would then distribute the revenues to local charities. Tata Corporation, the largest conglomerate in India, apparently has a similar structure.

C: A Clear Role of a Unifying Corporate Hub

The key tasks of the Global headquarter is to be the Hub or center of a wheel, that provides

• Quality control
• Centralized purchasing
• Product planning
• Legal
• Over-all marketing strategy and implementation
• Facilitating information sharing and best practices among the local entities
• Continuous improvement in terms of the manufacturing process
• Financing
• Battery leasing

Questions :

• Is Norway the right location for the headquarters? Does it project the best image? Would it be a location where the company could select the best, brightest, and most creative?

D: A Lean and Flexible organization

TH!NK should remain a lean and agile company

TH!NK may well face competition from the existing auto industry. TH!NK’s main advantage will be its ability to move fast.

• Within the constraints of being an auto manufacturer, TH!NK needs to be remain non-bureaucratic and fast on its feet.
• THINK may want to consider outsourcing various functions to avoid the development of a bureaucracy.
  
  • By franchising the local organizations, TH!NK can then create a decentralized corporation. “Committees” reviewing important decisions should consist of 1-2 key individuals.

The organization should be highly flexible and adaptive

The TH!NK organization should be liked an organism. It should have a strong and healthy central nervous system that quickly receives and sends out messages to its exteriors. It should be able to replicate at will. And it should be highly adaptive.

• The traditional product development cycle in the car industry is six to seven years from concept to delivery. TH!NK needs to be nimble and be able to able to operate under a much shorter, 6-12 month, cycle.

E: A Socially engaged organization

TH!NK employees are the key source of competence

To develop a cooperative relationship and utilize their talents, all employees should either become shareholders or have the option of becoming shareholders. The employees should be highly motivated to see the company succeed.

• The company needs to always recognize that it’s doing something special that provides a unique contribution or product. Employees want to be part of something special. It was pointed out the Ferrari employees are highly motivated.

• The company needs to show trust and demonstrate commitment to its employees and vise versa. Employees should not be afraid to make bad decisions. The company should avoid traditional automotive industry job titles and use Silicon Valley-like titles.

Supplier relationships

TH!NK should develop strong partnerships with its suppliers. The relationships should be based on trust and the opportunity to grow together as organizations. TH!NK should be able to trust the results of the studies and analysis’ done by its suppliers without going through costly independent review processes.

II. THE BRANDING

A: TH!NK should become a movement

The TH!NK consumers will want to make a statement with their purchase. The organization should provide an annual report and a regularly published newsletter to document the growth of the company and the positive contributions made by its employees, the products, and the company

• Apple is a movement/a statement. It’s more than just buying a computer.

THINK should seriously study the Apple model. TH!NK could have an annual conference. The company must have a Chairman or CEO who is a strong communicator and could become a “Steve Jobs” like personality/visionary. THINK could become the “rebel” car company in the way that Apple became the “rebel” computer company.

• To encourage a greater sense of the movement, TH!NK should consider having rental cars available at each plant for out-of-town TH!NK owners/members. We want TH!NK owners to have access to the car and show their friends in different cities.

B: Develop a PROFILE“Think Bubble”

The brand should mirror a reflective and thinking individual, who is concerned about issues and wants to make a statement

The Cartoon BUBBLE should therefore be the issue that provides recognition )like the black silhouettes for the IPod. It reflects dreams and thinking about the future

C: Launching a BRAND - both Local and Global

To implement the right brand building strategy, the following was considered:

• Co-marketing with other eco brands
• Sell some cars and find out who the customer is and then quickly adapt the positioning and marketing to that – may be different today than earlier years and may be different in different geographic markets
• Brand should be “equity focused” , i.e. give a long lasting brand (or movement like the MINI). This means …
  
  • New links and responsibilities are part of brand building
  • The car is part of a bigger picture – a LIFESTYLE or MOBILITY MOVEMENT

D: Become part of the local Community

Key brand characteristics must be the local partnering to become part of the city:

• Partnering with infrastructure providers
  
  • City & municipalities, Parking, Voters
  • Provide integrated Mobility
    
    • Car sharing
    • Station car concepts
  • Integration in the city Structure
    
    • Electric grid – add value to grid stabilization
    • Fueling stations
    • Think owners are part of giving back
• Connectivity with the society around us
  
  • Internet and wifi connection
  • Open-source Software Allow others to contribute software and product ideas
    
    • Encourage local Applications
    • Google partnership
    • Onstar-type communications
  • Navigation and communication
• Play a Role in the Local Society
  
  • Establish Foundation to share some of the profits locally
  • Integrate with Academia and young people
  • Find role as part of the local Business - Shopping
  • Link to Solar energy : Provide PV –based carports
  • Link to Climate issues: Plant locally trees to compensate carbon emission from power plants providing electricity to THINK

E: Build Customers Loyalty

• Customers should be allowed to be shareholders
  
  • To encourage involvement and commitment to TH!NK, the company should either offer stock or a stock option upon purchase of a vehicle its customers. Alternatively, a special class of stock could be created for TH!NK customers. Samuel Adams, the beer company, created such a class of stock for its customer base.

• Building Strategic Alliances
  
  • TH!NK could partner with solar and wind firms to provide packages that include both the car but also means to produce renewable electricity over its life time. The process of selling and delivering the car and its accompanying source of renewable energy should be simple, transparent, and convenient.

For this TH!NK MUST COMMUNICATE

• Aspire to an unprecedented level of communication/relationship with customer

III. THE PRODUCT

Becoming a “special Product”

The design of Apple’s products makes the customers feel like a part of the company. It's intuitive and part of the company/customer culture. TH!NK should consider a similar approach in finalizing the design of the current car and future models.

• Where feasible, TH!NK should consider using software to allow the customer to do his or her own low cost customization of the vehicle. The company could look to the cell phone industry for some ideas. For example, after the car is turned on and the batteries and drive system ready to go, the customer could select a “ring tone.” Perhaps the customer could also select an individual ring tone for when s/he leaves the car with the lights on or the key in the ignition or when the seatbelt needs to be turned on. Maybe the customer could even download a digital image to the car and that image could appear on the dashboard, much like the desktop image on computer screens today.

• Every Ipod looks the same, but the owner is able to customize it once s/he owns it. How can TH!NK create a similar dynamic?

• To maintain strong local ties and avoid bureaucracy, TH!NK may want to consider capping the size of any single plant at the optimal number. TH!NK may not want any individual plant to produce more than 10,000 cars.

Manufacturing & mass customization

Using an on-line process, TH!NK should follow the lead of the Mini and allow for individual design and customization of the vehicle.

• Is more or less customization practically and economically feasible in a situation where many plants are used to create the same number of cars that a single large might plant might?
• How much mass customization is allowable under a system where local assembly is maximized?
• Would mass customization and allow for significantly longer product delivery lead time?

TH!NK needs to find the optimum number of items that can be customized from a logistics, financial, and customer choice perspective.

To improve logistics, TH!NK might want to consider a global supply chain management strategic partnership with UPS or FedEx.

TH!NK needs to have tremendous manufacturing expertise. It has to produce its vehicles in a way that no other car company does today. The costs and process needs to be closer to the manufacture of a computer than a car.

B: Assurance

The company needs to be emphasizing assurance in all aspects. All of the worries and possible issues that the customer might have about the company and product should be thought about at the very beginning. The company should fully address all safety concerns the customers may have. The recharging and recycling issues should also be addressed. In short, more so than any other car company, TH!NK needs to show its done its thinking.

• Quality should be Job #1. The company cannot afford to get off to a bad start. Everything needs to be working from day one. TH!NK will only have one chance at a new product lunch.

• If a customer is not satisfied, TH!NK should consider a favorable return policy similar to Nordstrom. Returns within a certain period should be free and easy.

C: Creative partnerships

If more people drove TH!NKs in the U.S., due to the size of the vehicle, parking lot operators would have more customers. What types of partnerships could be formed with those operators? Are there spaces in parking garages that a TH!NK could utilize but a normal vehicle couldn’t.

• In Lyon, France, there is a mobility system where people are allowed to use designated bikes for free. Could a similar system be created to encourage mobility using TH!NKs?

• Could TH!NKs be provided as a shopping vehicle? Would a mall operator or large retail outlet pay for someone to have access to a TH!NK to shop at their location?

Questions: Contract manufacturing?

Silicon Valley companies out-source a lot of the production of its products. Many of the products sold by Silicon Valley firms are manufactured in Asia. Should TH!NK consider a similar model.

TH!NK could focus on product planning, marketing and sales, and finance by out-sourcing the manufacture of the product to an existing qualified low volume vehicle manufacturer. This strategy would allow TH!NK to focus its limited resources and not have to learn and become expert in the car manufacturing process.

D: Who is the customer?

There are different markets, and it is unclear which one will take off first: THINK ahs therefore to be very flexible and respond quickly to the emerging market responses.

The Brainstorming revealed four potential customer groups:

:

• Thoughtful/responsible
  
  • 45+ (not youth)
  • typical Male or independent Female
  • Highly educated
  • Well off
  • Connected – concerned – consistent
  • This is a psychographic, rather than a demographic
  • Socially responsible – “thinking consumer”
• Techie
  
  • Technological novelty appeals
  • That the car is electric is not enough. It must appeal on a deeper level as well
• Women doing their shopping
  
  • Replacement for larger car, as long as there are children seats in then back

• Youth market (smallest market)
  
  • First car for student life

The key is to “find the pull” so that the market develops once it knows about THINKL and embraces it (the “movement”)

In terms of creating a community, what is it that brings the above people together?

• You have to appeal to a future that THEY aspire to

There is competition among cities to appeal to citizens. This can, amongst other things, be seen by recent offerings of free WiFi. Think should appeal to cities’ competitive instinct in terms of laying the groundwork for EV’s. Think should also make use of internet enabler.

Use partners to help create a community

• Utilities have many customers
• Google is willing and able
• City governments want us to succeed

Create a Community

Community is about bringing individuals together to make a real difference and to shape the future.

• We need to communicate early and often to customers about the results of the movement.
• Organize a Think summit of mayors in order to communicate the “best practice” among cities for going green.
  
  • Create a “Think prize” for best results
  • Associate with Challenge Bibendum

Create a documentary about the “re-creation” of Think.

• How did it end up where it is?
• How can it/will it be?

Oil companies spend millions to convince people that they are nice and concerned about the environment, but too little effect. To ensure that we don’t fall into the same trap, make sure that we are very visual and concrete in our support of local communities:

• Plant a tree for each Think sold, so people can visit the park they helped create.
• Add to the green infrastructure with a solar park or wind park.
• Have preferred parking spaces with clean power to charge with.
• “Act local” through the support of urban charities with profits from local facility

Can Think create opportunities for other companies that want to make a difference? Think can be an enabler for:

• Suppliers
• Utilities
• Google/Apple/eBay/etc…

Women are an important market

• “lipstick” market.
• They assume the product works, and don’t care about the technology
• Pampering, convenience, no hassle are important

Women who are particularly concerned about the environment tend to have just had babies, or have teenaged children.

Think is a lifestyle company, but it goes deeper than just a lifestyle. It’s not just a fashion.

Think should act more like Silicon Valley than the Big 3:

• Make the car upgradeable
• Have the best technology available installed in the car
• Lifecycle of car is different from that of other components like entertainment system, battery, etc.

The company should be as “transparent” as possible with regards to financial, environmental impact, etc. A glass wall at factory symbolizes this nicely.

E: How to build a market demand for THINK ?

The small decision to buy a car should build to something bigger. How do we communicate this to the customer, and how do we show their individual contribution?

• Postcard every quarter?
• Tons of CO2 saved visualized concretely?
• We need to communicate with our customers and get them involved in our success:
  
  • Get feedback every year, in form of interviews, questionnaires, etc.
• Give them some ownership in the company. This will make it harder for them to switch.
• Community is a 2-way conversation:
• Publish a “Think book” showing results of what we’ve done
• Have people submit actionable ideas on web page, and reward them in some way for their contribution
• Global: IT, music system, etc
• Local: designers that create cool
  
  • Prius owners are:
    
    • Big moviegoers
    • Well read
    • frequent internet users
    • 35-50 years old

• There is a big opportunity within the B2B fleet market

• What ownership form should customers have of their TH!NK city
  
  • Do they have to own the car?
  • Can we offer a lease? 0% APR
  • Is there another model that is better?
  • Is some combination ideal?
    
    • Fixed (low) price for car w/out battery
    • Monthly fee (high) that includes battery, electricity, service, insurance, road tax, onStar, XFM/Sirus, video-on-demand, etc.

• Talk to Airbiquity in Seattle about OnStar-like solutions. Richard Blundell can put us in touch with then (Larry Seaford).

• Have a good sound system in the “silent car”

Make a deal with Bose

• Could we have a network of people who are willing to let you charge at their place? Could this information be made available online and could GPS guide you there?

• If municipalities give good enough incentives, the vehicle will sell themselves:
  
  • Bus lanes
  • Road tax exemption
  • The best parking spots
  • Charging for free

• Present a master plan to the cities showing best practice. Appeal to cities’ competitive instincts.

• Communicate effect of individual effort
  
  • CO2 saved counter/dial in car/on web
  • CO2 credits
  • Filter on car could make the car cleaner as you drive.

Questions.

• Strategically, should we market EV’s, TH!NK, or mobility issues? If we focus too much on general EV issues, we do a lot of legwork for competitors.

• How do we make people want the car? We have plenty of rational reasons (pollution, congestion, cost savings, etc), but what are the emotional reasons for buying the car?

• Establishing a secondary market for the batteries could be a key in selling the vehicle.