Special Color Edition of New Beetles Only Available Through the Internet; Results of Pilot Program to Shape Volkswagen’s Future eBusiness Plans
SeraNova Inc., the majority owned eBusiness subsidiary of Intelligroup, Inc. (Nasdaq: ITIG) announced today that it has developed an online buying application for Volkswagen to sell limited edition colors of the New Beetle for the US market via the Internet only, at www.vw.com. In this online buying pilot, a total of 4,000 cars will be made available in Vapor Blue and Reflex Yellow. The pilot will test customer response to online buying that allows customers to learn about these special color edition New Beetles via its website, pick a dealer, configure a desired car, check its availability within Volkswagen’s distribution system, get financing, discuss purchasing terms and finally arrange a delivery date, all online with the selected dealer.
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The online buying pilot launched May 4, 2000 and is being promoted by a national advertising campaign from Volkswagen.
The online buying pilot represents the first time a US based car manufacturer is selling a particular edition of a car only through the Internet — and the results of this endeavor will shape the future of Volkswagen’s eBusiness model. Volkswagen will learn how direct requests via the Internet, affect all aspects of the business — including marketing, sales, distribution, credit application and legal. “Never before has an engagement required as much cooperation between business units, leveraged as many systems and affected the business processes and daily lives of individuals responsible for selling Volkswagens,” said Scott Crompton, Vice President for SeraNova’s Global Automotive Practice. “The net result is that Volkswagen will be able to present a branded online buying experience for the consumer.”
By taking ownership of the online buying experience Volkswagen assumes a leadership position and asserts a competitive advantage as an original equipment manufacturer. “Rather than farming out the online buying model to a third party or some other channel of selling cars online, Volkswagen supports the entire enterprise, including the brand, customers and dealers,” said Liz Vanzura, Director of Marketing, Volkswagen of America, Inc. For example, recognizing that their dealers are a critical part of the Volkswagen value chain to customers, the auto-maker involved their dealers from the very beginning of the project and expects them to be an integral part of the online buying experience.
Consumers purchasing online will be able to configure a car’s features to their liking, apply and obtain credit approval if they wish and have their purchase request automatically sent to a local or preferred dealer of their choice. This process generates a personalized web page for each customer. Through a Volkswagen web portal, dealers then receive the customer buying requests that have been submitted via http://www.vw.com. After the dealer and customer agree upon price, the car, if available, is allocated by Volkswagen to the dealer through the web, thus eliminating dealer’s expense and risk of carrying inventory. This ‘flexible distribution system’ differs from existing online car buying models that require the dealer to obtain the car through traditional means such as finding a car on the lot, trading with another dealer or ordering a car. The dealers involved in this initiative have embraced this pilot, and Volkswagen is now seen as taking a position to help lead dealers into a successful eBusiness environment.
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By GlobalData“Our work with Volkswagen is a good example of SeraNova leveraging our automotive vertical practice and global delivery model as we employed skill sets and capabilities from around the world,” said Rajan Nair, Chief Operating Officer of SeraNova. SeraNova continues to work with Volkswagen to further develop its Internet strategy.
About SeraNova
SeraNova provides Internet professional services to businesses. The Company’s services enable clients to combine the scope and efficiencies of the Internet with their existing business processes. SeraNova designs and implements Internet-based software applications that help companies manage procurement, sell products and services, provide customer service, conduct supplier transactions and communicate with their employees over the Internet. The Company’s services include strategy consulting, creative design, technology implementation and maintenance of Internet-based software applications.
In all client engagements, the Company applies the proprietary SeraNova Time-to-Market Approach methodology, to deliver these services. SeraNova focuses on five industry markets — financial services, telecommunications, automotive, technology and healthcare. During the last three years, the Company has provided Internet professional services to over 80 clients. SeraNova’s clients include Global 5000 companies and emerging Internet-based companies that conduct their business exclusively over the Internet.
SeraNova is a subsidiary of Intelligroup, Inc., a publicly traded (Nasdaq: ITIG) professional services firm. Intelligroup has announced its intent to spin off SeraNova as a separate company, subject to regulatory approvals. Visit SeraNova at www.seranova.com.
