Zip Car

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Marketing Plan

Created by: The 4 P’s
Jessica Burg
Alice Popescu
Ranjita Shetty
Ritesh Maskay

Project Summary
Car sharing is an economical and eco-friendly mode of transportation that is designed to fulfill a just-in-time need for personal access to passenger cars. This transportation network encourages people to be socially and environmentally responsible by minimizing private vehicle ownership. Car sharing started gaining popularity in the early 1990s in Europe. Today, such fleet of automobiles operates in 600 cities around the world, in 18 nations, and 4 continents. In the United States, a Massachusetts based car-sharing company Zipcar is the industry leader with over 400,000 users in 13 major cities, and 150 college campuses. Zipcar mainly operates in urban areas and in college towns where car ownership is lower and parking is expensive and/or limited. People are enjoying the convenience of reserving the car over the phone or online for a nominal fee on an hourly or per day basis. The cost of service includes the fuel, car maintenance, and insurance charges. Currently, the main goal of Zipcar is to enter into a new market segment at the University of New Orleans in New Orleans, Louisiana. Hence, the 4 P’s marketing team has developed an extensive marketing plan to introduce this revolutionary transit system to a much deserving community of the University of New Orleans. Based on our analysis, a public relation strategy is a very effective marketing strategy that can give Zipcar’s car sharing service on campus. Even though there are many hurdles to overcome in order to implement Zipcar on UNO’s campus, our implementation schedule has the full Zipcar transportation service on campus in the beginning of the Spring 2011 school semester..

I.What is ZipCar?
Zipcar is the world's largest car sharing and car club service. It is an alternative to traditional car rental and car ownership. Zipcar transportation offers services to anyone interested in available geographic areas; ages 18+, and usage charges are by the hour or the day depending on the needs of the customer. Car sharing is an evolving concept that targets people that desire a hassle free lifestyle. As a leader in this market ZipCar wants to continue to focus on excellent services and to expand throughout the U.S. bringing their services to more cities in need of an eco friendly, easy to use, and economical way of transportation. According to CNN Money, Zipcar is the best new idea in business earning annual revenues of $130 million and continuing to grow at approximately 30% a year. Zipcar’s mission statement is to “change the world through urban and environmental transformation”. Scott Griffith, the 50 year old CEO sets an example of how it’s done by being one of the over 400,000 members who rely on the company’s handy gassed up cars to get around. According to the Boston Globe, Zipcar currently owns a fleet of 5,000 vehicles parked throughout most neighborhoods in major cities. There is never any paperwork or standing in line required to borrow a car. A member just waves their membership card over the windshield and the doors pop open. The best part of it all is that the gas, insurance, and car maintenance are included in the hourly rate of $7. However, it is important to note that Zipsters, people with a membership to Zipcar, must pay an annual fee of $50 plus hourly/daily charges, and first-time users are required to pay an application fee of $25.Zipcar has partnered with more than 150 universities throughout the U.S. to help students, faculty and staff alike by providing environmentally green cars on a shared bases to university communities where parking is a problem and car ownership is difficult and costly.

II.Problem Definition
The major goal of Zipcar at this particular moment is to enter into a new market segment at the University of New Orleans, Louisiana. By entering this market Zipcar is trying to broaden its horizon and offer its...
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