MKTG 600 – Dr. Vince Carter
DEREK ABBOTT, KATIE BARTON, VIKRAM DEOL,
JORGE HAIEK, RAJU JASSAR, JEN KUNZE
ZIPCAR:
SAVING THE WORLD
ONE CAR AT A TIME
1999…
HISTORY
• 2000-2007
o Growth
• 2007
o Merger
o Today
o 5,000 cars
o Markets
o Competition
o How’s it work
SWOT
SWOT
• Economic
• Social-Cultural
o Recession
o Gas prices
o Quality of life
• Ecological
o Sustainable solutions
• Technological
o Acceptance of
technology
SWOT ANALYSIS
OPPORTUNITIES
STRENGTHS
Search for sustainable
solutions
Zipcar lower impact than car
ownership
Reduced spending
Zipcar lower cost than car
ownership
Desire to improve quality of Zipcar usage improves
overall quality of life
life
DIFFERENTIATED
MARKETING
Segment 1- Age
Segment 4Location
Target Market
Segment 2Driving Records
Segment 3- Afford Zip Fees
POSITIONING
Eco Friendly
Supplement
Public
Transportation
Aesthetics
and
Style
Target
Segments
Impress Peers
With Different
Cars
Save Money
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
Keep it
Simple
Deliver
Results
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
Core Product
Actual Product
Augmented Product
Potential Product
PRODUCT STRATEGY
• Features
o On-Demand Mobility w/Advanced Technology
• Benefits
o “Green” service
o All-Inclusive Rates
o Lifestyle Quirks
• Branding
o “Zipsters”
o Hip, 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,
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
PERFORMANCE
MEASUREMENT
• Forecasting Zipster Growth
o
Analyze Growth in Targeted Market Segments
• Domestic Markets
• New International Markets
PERFORMANCE
MEASUREMENT
• Budgeting Zipster Growth
o
o
Percentage of Sales Marketing for Existing ZipCar
Markets
Objective-and-Task Budgeting for International
Expansion
• Performance Metrics
o
o
Societal Metrics
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
o
Retrenchment from new markets
Discounted pricing in existing markets.
No? Let’s go to BJ’s!
Happy St. Patrick's Day!
Questions?