Thisenvironmental responsibility is another attractive incentive to current and potentialmembers. Nonetheless, this volatile growth has been complemented by the substantial disruption. Members reserve a car online, then use their Zipcard to access it. Questions Two: Discuss the synergy between the business strategy of Zipcar and information technology. One advantage of targeting the corporate sector is that they are less price sensitive and ZipCar can charge higher prices from corporate members listed in the corporate plan. If that sounds good to you, watch and learn what your business can do to rock digital marketing like Zipcar: 1. Words: 1064 - Pages: 5.
Each component of the marketing mix is formulated on the basic of Marketing information and distribution. This case describes several variations of the Zipcar business model along with their financial plan. Now it's a matter of tapping into those sources and teasing out patterns that have the potential to build new opportunities. Robin Chase set up the company in 2000 with the the memorable tag line 'Wheels when you want them', assembled car fleets in Boston, New York, and Washington, and eventually acquired 6,000 members. Zipcar motivates its customers and partners by truly addressing their needs and wants from a company like theirs. As per the concepts of positioning given in Chapter 7, a strategy must be able to present explicitly the benefit which the product seems to accrue to the potential buyers. The younger generation today increasingly values access to cars over personal ownership.
On their many social channels Facebook, Twitter, Instagram, Google+, and LinkedIn , Zipcar posts news, original content and images, on topics like green living, green technology, and travel. We have to have a broader view on business in general. The target market is currently pet owners that live in a 10km radius of the store. To be specific, my main demographic was the college-educated individual since they were the most receptive to the car sharing idea. This is just one brief example of the many technologicalinnovations Zipcar has and is developing. When the actual model was put into practice, several changes had to be made in the original plan of December 1999. But it also sent a wave of anxiety through Zipcar customers also known as Zipsters who feared the acquisition would soon make the service indistinguishable from the one they signed on for.
By hiring someonethat they believed had the appearance of upper management and would address theconcerns of credibility to the investors was a poor choice. ©Copyright 2017 Insight Guru Inc. Since the target market is mostly college students who would prefer to share a car than own it, advertising efforts could also be aimed at colleges in Boston. The following discussion details an analysis of the current market conditions for the development of a new product by Texas Instruments. Merged with Seattle-based rival Flexcar in 2007. As a result, marketing needs to be data driven. We continue to show our support at Pride events and in how we do business every day.
In each of those markets, we provide our members with local benefits like discounts to local museums, a special offer at a bike shop, a discount gym membership. The organization focuses mostly on technological advances and research. It was projected that they would achieve gross margins of 25% Hart, 2002. Director of Field Marketing, Kate Pope Smith, provides a sneak peek into how Zipcar divides its global community of more than a million members into smaller groups, creating a more personal connection with the brand. The system was to capture information about the car in the form of usage per miles and hours which was then sent to a central location for billing. If that seems like too much for your business, you can start slow by having your customer service staff sign their comment replies or tweets with their first names or initials.
Zipcar is the world leader in providing 'wheels when you want them' — a revolutionary mobility service that gives members on demand access to a variety of cars in cities, campuses and airports, by the hour or day. Drive off, noting the rules e. Their technology allows Zipcar to provide quick, quality, convenient serviceto its customers. Indeed there were already three north American competitors by 1999: CommunAuto Canada , Car-Sharing, Inc. It started its operations in 1880s as a small segment through a door-to-door sale of perfume products. It is this sense ofcommunity that is very important for Zipcar.
So how does Zipcar do this? Need some help with your charity organization? This analysis will define what cultural, social and personal factors are likely to most influence consumer purchasing of Froyo Loco products and services. Zipcar has been the choice of partners becauseof its successful track record, user-friendly technology, and advanced web-basedreservation system, which continues to add to its success. They had ambitious targets, but established a realistic strategy and did not overextend itself. Analyzes its data, leveraging information to find optimal utilization trends, member demographics and spending patterns. Marketers of the future are going to have to have that diverse set of skills.
For starters, the complete technology platform had not been implemented before the launch and so the system which was introduced initially did not have car specific zipcards. Recommend at least two 2 actions that ZipCar could take in order to leverage its strategies to expand its target market. Create Killer Video Content with Real Value When I joined Zipcar, I was super-impressed with their clever and amusing, but also informational, video content. Members could get a car without the hassle havingto pay for insurance, buy gas, or try to find parking on city streets. So, the initial contribution per member was estimated at 2559.
Cultural Factors El Paso, Texas is located on the most western tip of Texas and shares a border with Mexico and New Mexico. Further, as indicated in Chapter 7, a good positioning strategy must be evaluated and changed from time to time, on the basis of the requirements of the niche that an organization is trying to target. Zip Car targets people who want to use a vehicle for more than a single taxi trip and who do not live near the rental agency offices. I created this number by using the amount of miles a college student drives on a daily basis and multiplied it by the average cost per mile, which was 46. Rates vary by area, time of day, day of the week and the make and model of the vehicle. For fans who saw Zipcar as a new, forward-thinking, independent company, the purchase was a disaster. However, Zipcar amended the problem after they realized they didnot correspond with its strategy and corporate culture.