zipcar: saving the world one car at a time

ZIPCAR:SAVING THE WORLD ONE CAR AT A TIME

MKTG 600 – Dr. Vince Carter

DEREK ABBOTT, KATIE BARTON, VIKRAM DEOL, JORGE HAIEK, RAJU JASSAR, JEN KUNZE

1999…

HISTORY

• 2000-2007o Growth

• 2007o Merger

o Todayo 5,000 carso Marketso Competitiono How’s it work

SWOT

SWOT

• Economico Recessiono Gas prices

• Ecologicalo Sustainable solutions

• Social-Culturalo Quality of life

• Technologicalo Acceptance of

technology

OPPORTUNITIES STRENGTHSSearch for sustainable solutions

Zipcar lower impact than car ownership

Reduced spending Zipcar lower cost than car ownership

Desire to improve quality of life

Zipcar usage improves overall quality of life

SWOT ANALYSIS

DIFFERENTIATED MARKETINGSegment 1- Age

Segment 2- Driving Records

Segment 3- Afford Zip Fees

Segment 4- Location

Target Market

POSITIONING

Supplement Public

Transportation

Impress PeersWith Different

CarsSave Money

TargetSegments

Aestheticsand

Style

Eco Friendly

CUSTOMER CHARACTERISTICS

• Derive great pleasure from using Sustainable products

• Socially conscious – Zip Sharing• Save money by not owning a car• Heavily populated cities• Colleges

ZIPCAR’S VALUES

MARKET DIRECTION

• Mission Statement

• Growth

• Market Penetration

• Market Development

SOCIETAL OBJECTIVES

• Greener/Cleaner Operations

• Charitable Activities

– Green Miles

• Energy Conservation

• Community Involvement

Potential Product

Augmented Product

Actual Product

Core Product

PRODUCT

PRODUCT STRATEGY

• Featureso On-Demand Mobility w/Advanced Technology

• Benefitso “Green” serviceo All-Inclusive Rateso Lifestyle Quirks

• Brandingo “Zipsters”o Hip, urban edge w/Cool and frisky identity

ZIPCAR DIFFERENTIATORSAlways a “Green” solution!

Practicality of car sharing mixed with the convenience of lifestyle.

“Under -Age” crowd pleaser

PRICE STRATEGY

The pricing model should..1. Achieve the financial needs of the company 2. Be set at level where consumers are willing to

pay that amount for the service 3. Align with the positioning of the company

PRICING MODEL

Economy Pricing Model- No-Frills…1. Zipcar has began turning a profit2. Low pricing insures that consumers are able to

afford the service provided3. For every new Zipcar that is added to the fleet,

15-20 personal use vehicle are taken off the road

Zipcar members save more than $500 a month (vs. car ownership)

ZIPCAR VS. OTHERS

ZIPCAR VS. OWNING

PRODUCT LIFE CYCLE

PERFORMANCEMEASUREMENT

• Forecasting Zipster Growtho Analyze Growth in Targeted Market Segments• Domestic Markets• New International Markets

PERFORMANCEMEASUREMENT

• Budgeting Zipster Growtho Percentage of Sales Marketing for Existing ZipCar

Marketso Objective-and-Task Budgeting for International

Expansion

• Performance Metricso Societal Metricso Net Promoter Score

IMPLEMENTATION &CONTROL

• Controlso Strategic Controls Every 12 Months

• Evaluate Management of Marketing, Analyze Customer Relationships, Levels of Social Responsibility

• Annual Marketing Audit

• Contingency Plan– Prepare for Threats from Rental Agencies, Start-Ups

o Retrenchment from new marketso Discounted pricing in existing markets.

Questions?

No? Let’s go to BJ’s!Happy St. Patrick's

Day!