RACC
:
Jump-starting a new line of business
Client
Services
Envisioning and scenarios
Value proposition design
Business model design
Innovation platforms identification
Product portfolio strategy
Category growth strategy
How to develop a winning formula when entering a mature market? Put users and innovation at the very core of your business strategy

RACC is a leading Spanish provider of roadside assistance services for car owners, while also offering home repair, personal travel and medical assistance services. In order to leverage its strong brand equity, as well as its deep expertise in managing consumer-oriented service operations, the company retained Lantern to identify how to position a new business unit focused on the car maintenance and repair market. Defining a winning value proposition in a mature market, with strong competition from specialist repair chains, car dealerships and independent operators, was truly a challenge. The first question we wanted to address was ‘where to play’: which piece of the pie could RACC legitimately capture and grow based on its strategy and capabilities? A clear picture of what the competition looked like from the perspective of different consumer segments helped us to uncover gaps in the composition of the market offering. Our research team hit the road and went long and far into the world of car owners. Key words like trust, anxiety, peace of mind, risk, hassle, and joy rapidly emerged in the conversation. We analysed the attitudinal and sociographic factors that regulate consumers’ emotional connection with their car (a topic that frankly warrants an entire book), and uncovered elements that led to identifying a customer target that was being underserved by the competition.

In order to define a clear strategy for 'how to win', Lantern and the core RACC project team worked together to determine an engaging value proposition that would allow RACC car maintenance and repair workshops to resonate in the hearts and minds of target car owners. Parting from this high-level vision, we then designed the key service elements along the consumer's journey. Based on our recommendations, RACC has launched its network of car workshops focusing on high quality and advanced technology in a professional, modern and clean environment that models the precision of an engineering lab. The business is designed to build long-standing trust with end users by placing transparency at the heart of the business. Embedding digital and multi-channel tools also allows for simplicity and control, crucial factors demanded by car owners. The repair jobs are always performed based on a previously agreed-upon budget, and users are given access to low emission vehicles or bikes while their car is in the shop in order to limit disturbances to their routines and habits.