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 oGrowth 2007 oMerger oToday o5,000 cars oMarkets oCompetition oHow’s it workHow’s it work

SWOT

Economic oRecession oGas prices Ecological oSustainable solutions Social-Cultural oQuality of life Technological oAcceptance of technology

OPPORTUNITIESSTRENGTHS Search 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 S W O T ANALYSIS

DIFFERENTIATED MARKETING Target Market

POSITIONING Supplement Public Transportation Impress Peers With Different Cars Save Money Target Segments Aesthetics and 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 Be Zipsters Be The Best We Can Be Deliver Results Keep it Simple Have an Impact

MARKET DIRECTION Mission Statement Growth Market Penetration Market Development

SOCIETAL OBJECTIVES Greener/Cleaner Operations Charitable Activities – Green Miles Energy Conservation Community Involvement

PRODUCT

PRODUCT STRATEGY Features oOn-Demand Mobility w/Advanced Technology Benefits o“Green” service oAll-Inclusive Rates oLifestyle Quirks Branding o “Zipsters” oHip, urban edge w/Cool and frisky identity

ZIPCAR DIFFERENTIATORS Always 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 profit 2.Low pricing insures that consumers are able to afford the service provided 3.For every new Zipcar that is added to the fleet, 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

PERFORMANCE MEASUREMENT Forecasting Zipster Growth o Analyze Growth in Targeted Market Segments Domestic Markets New International Markets

PERFORMANCE MEASUREMENT Budgeting Zipster Growth o Percentage of Sales Marketing for Existing ZipCar Markets o Objective-and-Task Budgeting for International Expansion Performance Metrics o Societal Metrics o Net Promoter Score

IMPLEMENTATION & CONTROL Controls o 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 markets o Discounted pricing in existing markets.

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