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Zipcar

Team:Zhang QingDhanush RavindraKelly Chen

MKT 300Instructor:Henry PrudenFall 2011

Direct Marketing Plan

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Preview Market environment

Competitors

SWOT analysis

Market strategies (including goal, target, tactics, creative, pricing,and others)

Profit&lost Recommendations

Video:http://www.youtube.com/watch?v=JnSXYtDz2Kw&feature=player_detailpage

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History

A car sharing company, service 24/7

Founded in January, 2000 byAntje

Danielson and Robin Chase. 14 major markets in U.S., Canada,

and UK.

9,000 vehicles and 650,000 zipsters(zipcar members) in Sep., 2011

http://www.youtube.com/watch?v=PzR_uuv_1c8&feature=related

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Macro-environment

Sales Increasing

Reasons:

Fuel prices

Business travel Air travel

Personal income

Future is optimistic

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Competitors

CityCarShareUniversities and special plans(Berkeley, Hastings, UCSF, Kaiser Permanente

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Competitors

Enterprise Rent-A-Car The Market Smart Decision System Combines data & campaign shortly

Hertz Campaign: The Gas and The Brake Sign up: Win a free weekend car rental

Avis Budget Group Inc. La Quinta Inns & Suites members discount

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SWOT

Strengths

Reach target audienceeasilyRedeem the offer easilyTrack consumers behavior

Opportunities

Retain students aftergraduationCreate future offer based oncollecting customers behavior

Weaknesses

Target audience is too smallMonitor partners quality

Threats

Low brand awareness Rising fuel cost affect budgetto execute the plan

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Target group analysis

Occupation: College studentsAge range: 18

Location: Bay Area

Most care about:

1. Price

2. Appearance

Students who need a car immediately andtemporarily for any possible destination.

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Loyalty program offers

Sign up member Annual Fee $35

No application fee

Special discount at partner stores Free 180 mile + 30 extra miles

Free Parking in university spots

E

arning points from consuming amount Upgrade car level Free miles exchange

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About database

Customers ID Frequency Loyalty

Record of consuming partner stores

Tracking consumers behavior Right offer

Purchase amount Earning points

Point Redeem free miles Upgrade car level

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Distribution channels

Traditional Channels:FlyersPostersDirect Mail

Email

New Channels:Facebook

TwitterYouTubeZipcar app

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Goals and objectives

Improve brand awareness

Enhance brand image

Increased profitGiving sustainable solutions and

making car sharing easier, faster,

and better

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Attractive approach

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Pricing

Actually, you save more than $8!

(Based on university students who study in Bay Area)

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MarketingStrategy1 year campaign

1 year circulation

1-5 Jun Jul Aug Sep Oct 11.12 Total

DirectMail

50% 50% 100%

Email 25% 25% 25% 25% 100%

FlyersandPoster

50% 30% 20% 100%

These promotion will include Facebook, Twitter, YouTube, and Zipcar APP

information.

Flyers and Poster will keep remaind target customers.

Direct Mail will be send at the begging of summer vacation.

Email will keep remind sending.

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ProductSituation

Occasional driving plan

Pay as you go

Annual fee$60

Application fee$25

Hourly from$7.75

Daily (any 24 hours)from$77

Friday -Sunday drivingrates

Hourly from$7.75

Daily (any 24 hours) from$93

No annual fee !

EVP$50

Extra value plans

EVP$50

EVP$75

EVP$125

EVP$250

http://www.zipcar.com/sf/learn-more?plan_key=evp-50

No annual fee !

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Campaign P&L

Total Order/ Quantity 7,166/1,050,000Response Rate 0.68%

Orders $7140 Gross Sales $249,900

Returns 0

Net Sales $249,900

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Campaign P&L

COGS $49,980

Fulfillment $7,497

Bad debt $4,998

Total Variable Cost $62,475

Total Marketing Cost $94,850

Overhead $50,000

Total Fixed Cost $144,850

Profit/Lost $42,575

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Budgets andFinancial

Net Sales: $ 249,900

Total Variable Cost: $( 62,475 )

Total Fixed Cost: $(144,850)

Profit: $ 42,575

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Recommendations

Increasing brand value and influencethrough social contribution.

New product development. Provide a bonus plan.

Encouraging staff to focus on service

and greet customers by name. Global Campaign.

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References

1. Car rental report 2011, Mintel

2. One-Stop Reports for Zipcar 2011, OneSource

3. Zipcar at a Glance, Zipcar.com

4. Zipcar Reports 2011 Second Quarter Results,Zipcar.com

5. www.zipcar.com

6. www.citycarshare.com