Innovation Development and Management
Business model innovation or bust.
Enhanced Membership by 5x
Increased Revenue to six figures
Turnaround a struggling early stage business at the verge of closing its doors by restructuring their value proposition.
Fast Toys is a membership club that offers its clients the chance to utilize its large selection of exotic and luxury cars without the hassles of ownership. The fleet is meticulously selected to have something for everyone. There are exotic cars for the passionate, luxury sedans for those with a flair for elegance, and luxury utility vehicles for those who need a little more space. The company also offers something for the daring by providing the opportunity to pilot high performance race cars on world-renown racetracks.
- Attract 20 members to the club in the 1st year
- Reach $1M in revenue in year 1
After the initial discovery, it was apparent to the BoCG team that the lack of awareness was directly related to the lack of a proper marketing funnel. The founder had invested in a $3M car fleet thinking that that would be sufficient in terms of marketing. The 2 non-paying members on the books told a different story.
The BoCG team devised an aggressive awareness campaign highlighting the benefits of membership vs. ownership. The target customer was determined to be an upper middle-class male who could afford a Porsche or Corvette but not a Ferrari. Fast Toys took out ads in magazines that could reach this demographic. Similarly, the company hired SEO and Adword specialists to drive online awareness about the club.
Another strategy to generate awareness about the club was to have a presence at major car shows and also smaller local gatherings. The company would send 2 exotics cars to these events with large stickers on the door to garner attention. Simultaneously, the Fast Toys Team would pass out brochures and gather emails for the company’s monthly newsletter. The company also featured its unique race cars during Monterey Car Week, LA Car Show, and Porsche Festival of Speed.
The BoCG team also advised the Fast Toys Team to add additional revenue streams to the membership club. Namely, the company started to offer its cars for rental as well. Renting cars attracted both tourists visiting Los Angeles but more importantly allowed local Angelenos to rent an exotic for a day or join a car tour where they got to experience driving multiple exotics. Local renters became a great candidate pool for memberships.
In addition to daily rentals and exotic car tours, Fast Toys Club drew attention to its race car business by arranging exclusive, all-day, track days. Owners of exotics would pay a fee to track their cars around some of the most well-known race tracks in the US. Initially this was a pay-to-participate ordeal but over time a racer membership evolved. Similar to the daily rental channel, the racetrack even became a great source of revenue and also a funnel for memberships.
A major challenge was that the company only operated only in Los Angeles. While LA is a popular tourist destination, and therefore a great rental market, memberships were a tougher sell initially. In order to create utility around a membership, a San Francisco branch was launched. This was a test run for further expansion plans. In addition to the permanent 4 cars in SF, cars could also be shuttled between LA and SF as needed. The San Francisco plan was the beginning of a franchise plan that was developed for the company.
To manage the increased revenue, the company also invested in a new customized car booking system for members. The system also allowed for rentals and created a more refined and efficient booking experience.
- $1M revenue achieved
- 28 members signed in year one
- 52% of revenue generated by rentals.
- 15% of revenue generated by racetrack days
- SF Location in 2017
- Utah Franchise in 2018
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