” Local Motors ” New generation of product co-creation

 

     Local Motors was founded in 2007 by John B. Rogers. Local Motors is motor vehicle manufacturing company that significantly perceives the important of co-creation. Therefore this company allows customers and car lovers designing their own car. Which one has the most votes, the company will produce that design as its product. The power of customers and community help enrich the company’s product effectively and sustainably.

 

                              

 

 

    Now I will focus on c0-creation process that allow everyone around the world to share their ideas through this product. And how the company uses this process to build the community and achieve the customer loyalty.

What type of co-creation is Local Motors using?

     Local Motors uses Co-designing type which the selective process is made by its community and some features such as frame and structure are scoped by the company. Firstly, users create drawing designs and the decorative ideas on their own style. Although the users are novices or experts, all users can participate in this step. After that users present their designs on the website, the best design selected by people in the community will be developed by the company. Finally, the company will launch the co-designing car into the market. Using Co-creation method, company gains customer’s engagement and loyalty.

What do you think of the Rally Fighter? Will this new car be successful? Why or why not?

     Rally Fighter is the new dimension of the co-created vehicle. No one would believe that some day we can design a car by our creativity. I think Rally Fighter is a good model of product generation nowadays. The effective and easy way to access the customer’s need is that the company using Internet to trigger customer’s participation and trust. By building the community, Rally Fighter is acceptable in the majority customer with its function and design.

     In my opinion, Rally Fighter will be successful in short term. Of course there will be a lot of customers in the community that interested in this car and buy it. But in the long term, it is hard to keep the sales volume according to the obsolescence. I think that, for some people, car is about fashion and trend. Fashion has short life cycle so it is essential to keep improve its quality and design. To be successful, the company might launch many versions of Rally Fighter to broaden the target market, for example, Rally Fighter car for Family or Rally Fighter car for Children. And the company should update trends and designs frequently improve to product and satisfy customer’s need.

What is Local Motors’ value proposition?

     Local Motors’ value proposition : 

  • A legally off-road vehicle that can normally drive on the street in everyday life gives worthiness to the owner. Moreover, it is high involvement product that presents luxurious identity and high economic status. The product is not available in the normal market so it provides customer’s satisfaction and unique. Customers also willing to buy it to fulfill their interest although the price is high.
  • The automobile designed by the ordinary people unlocks the new world of car manufacturer. Engagement and brand loyalty are the benefit that company receives from customers. When the car design that win the votes is manufactured, the name of the winner was labeled on the surface of the car. This way increases the value and the executive feeling of the customers.
  • Local Motors not only sell the products but also build a car lovers community. People who is interested in car-designing or automobile can freely update or talk anything about cars via the website. It is easy way to access and participate in the company campaign or contest. Now customer do not feel like they are forced to buy a company’s product but they feel like they are in the community that all car lovers around the world are gathering to express their ideas instead.
  • Building car with friends is the best experience that you can find in the Local Motors Factory. There are experts that help and advise all customers all time. So you do not have to worry if you can not do it by yourself. Local Motors provides great service and exciting experience to car lovers all time.

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