The Five Fingers

1
The Five Fingers
Product and Service Innovation Final Project
?!
YOON
JiEun
KWON
Borye
Suji
2
(No Transcript)
3
Not everybody is prepared all the time
4
A service Which can save you the troubles
5
Umbrella Lending Service
6
Umbrella Lending Service
7
Umbrella Lending Service
8
The Five Fingers
Umbrella Lending Service
Problem Definition
So one day you wake up...
9
The Five Fingers
Umbrella Lending Service
Problem Definition
Turn on the television...
10
The Five Fingers
Umbrella Lending Service
Problem Definition
But its too sunny to rain!
11
The Five Fingers
Umbrella Lending Service
Problem Definition
So you just decide to leave them home
12
The Five Fingers
Umbrella Lending Service
Problem Definition
You come out of the station and
13
The Five Fingers
Umbrella Lending Service
Problem Definition
1. Buy a new umbrella
What Would you do?
3. Wait until rain stops
2. Go without an umbrella
14
Umbrella Lending Service
15
The Five Fingers
Umbrella Lending Service
Service for convenience store
Lending Umbrella for Free!

• By utilizing infrastructure of convenience stores
• Using deposit Return System
• Adding Advertisement in the Umbrella
• Creating more purchase opportunities

HOW?
Procedure 1. When it rains, go to a convenience
store 2. Ask for Umbrella lending service and
deposit 3,000 Won 3. Go home with the umbrella 4.
Next day, return the umbrella to a convenience
store on your way 5. Receive 3,000 Won
16
The Five Fingers
Umbrella Lending Service
Profit and Cost Structure
Advertisement The umbrella will contain an
ad(Wing Handle) This will pay for manufacturing
cost of Umbrella
Manufacturing Cost
2,000 printed umbrella costs
10 Million KRW
5,000 Won per Umbrella
Advertisement Profit Manufacturing Cost
BUT!
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
17
The Five Fingers
Umbrella Lending Service
Distribution Channel Method
Why Convenience store?

• Most accessible location from any part of an
  area.
• Especially around break points of public
  transportations
• Distribution Infra which connects all the
  convenience store

18
The Five Fingers
Umbrella Lending Service
Distribution System of Convenience Store
1
2
Centrally Controlled
Daily Distribution

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

• High percentage of In-sourcing

Distributor Coverage()
InSourcing 72
Outsourcing 23
Others 5
Product Type Number of shipping/week
Processed Food 4.5
Liquor 5.5
Milk 7.0
Beverage 5.5
Snack 4.5
General Merchandise 3.3
Daily Raw Food 9.2
Daily Processed Food 9.3
Fresh Food 14.0

• Secondary control tower in each region

(Source 2010 Annual Report of KACS)
19
The Five Fingers
Umbrella Lending Service
Application to the Service
20
The Five Fingers
Umbrella Lending Service
Application in Five Fingers Service

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

/- in Demand in each store
Return ? Surplus
Mean level
Lending ? Deficit
Time
Day 1 Rain
Day 2 No Rain
21
Umbrella Lending Service
22
The Five Fingers
Umbrella Lending Service
Expected Effectiveness for Sponsor
Exposure to Customer!!!
23
The Five Fingers
Umbrella Lending Service
Expected Effectiveness for Customer
SK saves me from the rain!!
Dont have to Stack up piles of umbrellas!
I can go to any Convenience store to return
24
The Five Fingers
Umbrella Lending Service
Expected Effectiveness for Convenience Store
Visit store Twice.
Possibility of purchase This plus and a
lighter please
25
So dont be sad when you dont have an umbrella
26
Sometimes.... Just Enjoy the Rain!
27
THANK YOU FOR LISTENING
- The Five Fingers -