zipcar
TRANSCRIPT
Creating Value for Your Business™
Market Trends LLC.
Market Trends LLC Team
Project Manager
Allen LuoBiotechnology
UCD 2013
Advertising Specialist
Alisha MakmuriBiological Sciences
UCD 2014
Creative Director
Polk LuleComputer Science
UCD 2013
Industry Consultant
Joshua KimEconomics UCD 2014
Financial Analyst
Erik J. TeensmaMedical Microbiology
UCD 2014
Outline• Company Overview
• Market Dynamics
• Marketing Problems • Evaluation & Trial• Price• Location & Availability
• Solutions
• Closing Statements
Zipcar®: Background
• Car sharing service
• 11,000 vehicles (10 in Davis), 767,000 members
• Included gas, insurance, maintenance
SWOT AnalysisSTRENGTHS
• Rent by the Hour• Low Price• Insurance /Maintenance/ Gas Included• Convenient checkout process
WEAKNESSES• Low Availability of Cars• Application fees• Limited Vehicle Selection
OPPORTUNITIES• Awareness gained from additional Davis
Fleet expansion (i.e. include a truck)• Plethora of potential customers who
know of the Zipcar® service but have not yet tried it.
• Promotional activities that could let potential customers try and test Zipcar®.
THREATS• Competitors with more resources may
adopt our car sharing model• Consumers’ use of alternative forms of
transportation (bike, bus, etc.)• People like to drive and don’t want to
give up their cars. (America’s driving culture)
Competitive Analysis
Attributes (1-10) Zipcar® Avis Enterprise Hertz Weight (1-6) Low-To-High
Convenience 9 6 5 5 1
Price 9 6 5 4 2
Service 3 8 6 3 5
Availability 6 7 4 6 4
Variety of Cars 6 7 6 6 6
Amenities 10 7 4 5 3
TOTAL 43 41 34 29
Market Segmentation
Young Adults
College Students UC Davis Don’t
Own CarEarly
Adopters
Target Audience
• Emerald “the green adventurer”• Environmentally conscious college student • Early adopter of products and services,• Travels on the weekends for leisure,• Does not own a car. • Either male or female.
3 Major Problems
• Evaluation and Trial 80 % have heard of Zipcar® but never used it
• Price64% report price as most important factor in rentals
• Availability & Location77% would rent for more hours if there were more drop-off locations
3 Month Strategy Roadmap
Initial Launch of Zipcar Marketing
Strategy
Davis Wide Zipcar Amazing Race Promotion
3 Month Evaluation of
Progress
Educating Potential First
Time Consumers of Zipcar’s
Features and Values
Incentivizing through Price
and Brand Promotions
Expand awareness of Convenience,
Availability, and Location of Zipcar hubs
1 Month 2 Months 3 MonthsToday
Build up anticipation and excitement for launch event
Problem #1 Identification - Evaluation & Trial
• 80% of survey respondents have heard of Zipcar but haven’t used it
• Features are unknown by general public
• Price vs Value
Problem #1 - Evaluation & Trial
#1 Evaluation & Trial: Objective & Strategy • Objective
• Increase first time users by 30%. • 10% per month in 3 month marketing strategy
• Strategy• Educate potential first time users of unique existing Zipcar features to
spur evaluation and initial trial. • Gas & Insurance are included• Option of renting by day or hour
#1 Evaluation & Trial: Promotional Assets & Engines
• Assets:• Educational cards, trivia questions, interactive
games
• Engines: • Zipcar on campus
• “Write your name on the Zipcar” with tent and educational games (spinning wheel)
• Test drive Zipcar
Zipcar on Campus
Problem #2 Identification - Price
• Background:• 64% of those surveyed reported price was the limiting factor in making a
purchase• Price importance to company VS price importance to consumer
Problem #2: Price• Objective
• To position and integrate an overall product price point that draws a 15% increase in Zipcar users over 3 months
• Strategy• Market the Zipcar’s inexpensive pricing compared to competitors • Use discounting to entice new users• Directly target leads that are aware of Zipcar but have not tried it
Add pictures
#2 Price: Assets & Engines
• Aggressive Product Comparison Flier
• $10 Application fee
• Promo code: #startdriving
• Weekly Mystery Coupon via Mobile Phone App
• Add pictures*
#2 Price: Promotional Engines
• $10 application fee
-Social Media; Facebook page, email list•Simple, easy to understand fact, can be glanced at quickly
• Can use web analytics to track endpoint success
• Price Comparison flier
• Print: Strategic placement• Lecture Hall Bulletins- High Traffic• Rolled out through Brand Ambassador staff- Interactive Q&A +
Ambassador Customer Service Training Class• Eye Catching- Visual, Memorable
#2 Price: Engines
• Mystery Coupon: check in at a campus location to receive coupon
• iOS/Android• Gets other users together in the same place• Caters to the adventurous type• Makes purchasing fun• Completely trackable via Analytics
#2 Price: AnalysisMonths Standard Customers Standard Revenue Enhanced Customer Enhanced RevenueFixed Cost (304,607.00)$ (304,607.00)$ Variable Cost (189,000.00)$ (240,300.00)$ M0 500 105,000.00$ 500 97,500.00$ M1 540 113,400.00$ 585 114,075.00$ M2 583 122,472.00$ 684 133,467.75$ M3 630 132,269.76$ 801 156,157.27$ M4 680 142,851.34$ 937 182,704.00$ M5 735 154,279.45$ 1096 213,763.68$ ...M9 1009 211,838.96$ 2054 400,569.03$
Revenue 1,523,032.54$ 2,183,328.05$ Costs (493,607.00)$ (544,907.00)$ Net Income 1,029,425.54$ 1,638,421.05$ IRR 21% IRR 24%
Assumtions: Existing Growth Factor 8% (for standard Revenue)Initual Customers: 500 Average Users use service 6x times/year for 3 hours/rentalStandard Revenue = $25 Application FeeNew Growth Factor 17% (Enhanced Revenue)20% of Standard RevenueEnhanced Revenue = $ 10 Application FeeFixed Cost: 20% of RevenueVariable Cost $300/Customer
#2 Price: iPhone Analytics• Realtime Success:
304 Users Accepted Promotion X
Problem #3 Identification - Location & Availability
64% of respondents would use Zipcar if there were more Zipcar locations
#3 Location & Availability: Objective & Strategy • Objective
• Expand car fleet by 150% to satisfy customer needs and schedules• 10 15 Zipcars in Davis
• Strategy• Buy 5 additional cars and have a “schedule” type format to guarantee
time slots
• Add pictures*
#3 Location & Availability: SolutionAdd 5 New Locations
1 – The Ramble (Target Audience) 1 – South Davis Safeway (33% of survey respondents) 1 – North Davis Safeway (24% of survey respondents)1 – Memorial Union (Major hub for foot traffic) 1 – Silo Union (Major hub for foot traffic)
#3 Location & Availability: Promotional Activities• Mini Zipcar birth parties for new location launches
• Kick off location pool party: West Village (Ramble)
Zipcar’s Amazing Race
• Grand Prize: $1000 ($500 Zipcar credit, $500 cash)
• Target student and community organizations
• Station at each of 11 Zipcar locations in Davis • Mini games• Obstacle Course• Quizzes on Zipcar features • Celebrity appearance: Shaun White
• Pamphlets in cars with clues & study guide
Zipcar’s Amazing Race
Amazing Race: Stop 1• Pin-the-Zipcar locations on the map
• Goal: Pin all 11 Zipcar locations on the map.
Zipcar’s Amazing Race
Amazing Race: Stop 2
• Given: Zipcar Piñatas • Inside Piñatas: Cards with real
or fake Zipcar features. • Goal: Identify the real features.
Included Gas
Included Insurance
Free Limo Pickup service
Zipcar’s Amazing Race
Conclusion
Educating Potential First Time Consumers of Zipcar’s Features and Values
Incentivizing through Price and Brand Promotions
Expand awareness of Convenience, Availability, and Location of Zipcar hubs
Evaluation & Trial
Price
Location & Availability
Problems Solutions Metrics
30%
15%
150%