Marketing mix: Place

First, Zipcar will be integrated into St. Petersburg and Moscow only. Then, we are planning to operate in other big cities as well.

You will be able to find Zipcars near universities, business and shopping centers, airports, railway and subway stations.

When you want to use a car, simply open a mobile application and track whether there are any cars available nearby. After using, you can leave it wherever you want, but if the car is left on any of our special parking slots, you will receive free 15 min to personal account.

Our staff will monitor the location of each car, maintain the distribution among districts at daytime and at night, drive vehicles to its original locations.

Zipcar: Easy find, easy go, easy leave

Marketing mix: Promotion

1. Advertising

Since the service is new in Russia, first of all we have to introduce it to consumers. We have to show all the advantages of using the service as opposed to substitute services such as public transport, personal vehicles and taxi. Taking in consideration that our target customers are young modern people, we will use billboards, internet and social networks ads.

2. Sales Promotion

We believe that if someone tries out service once, he or she will use it every day. So, our goal at the beginning is to attract new customers fast. We are planning to communicate with universities and business centers to promote Zipcar with emphasize on its advantages, such as free parking spots in the area and different bonuses. For instance, we will create mobile offices where potential customers will be able issue membership fast and easy.

3. Public Relations

As our main promotion will be through the word of mouth, along with traditional PR promotion techniques such as outdoor, internet and print ads, we will create a “Zip-club” within our website, where our members will be able to chat and share their Zipcar experience. Also, many contests and our annual Zipcar racing will be held and announced there.

Also, we position ourselves as a 100%green company that is helping to protect the environment by decreasing the number of personal vehicles. Therefore as a part of social responsibility program we will donate percentage of revenues to help nature.

4. Personal Selling

It is important for us to create valuable relationships with each potential customer. Also, we understand that each customer has her own desires and purposes for using Zipcar, therefore we propose loyalty programs and bonuses for our clients.

Micro-analysis: SWOT

Strengths: Cool and modern brand image Unique technological platform A lot of experience in the industry (1) “Save-the-Earth” strategy Avis is already operating in Russia (2)	Weaknesses: No experience in emerging markets Low brand awareness in Russia
Opportunities:   Increasing environmental concerns Government support of eco-cars and development of infrastructure (3)  Partnerships with government and car plants (4)	Threats: Increasing rivalry and substitute services (car rent, taxi, public transport) Russian consumers are not familiar to car sharing No infrastructure High level of corruption and bureaucracy

Notes:

(1): Zipcar is a leading company in US. It enjoys first-mover advantage and therefore are well-aware of specifics and pitfalls in the car sharing industry. This experience might be helpful in expanding to another markets

(2): Avis is operating in Russia for more than five years, since Zipcar is its subsidiary that has no experience in emerging markets, it would be easier for Zipcar to enter Russian market with Avis’ experience

(3): From 2014, Russian government implement new legislation in order to support and promote the use of electro-cars. For instance, zero-tariff on the import of such cars and more facilities for service (charging and service stations). That might be crucial if Zipcar decides to continue its “green strategy” and will try to raise electro car culture in Russia.

(4): Since car sharing business requires of the company to own a wide-range car park, one of the possible solutions is partnerships with car assembly plants. Ford, General Motors and Nissan are successfully operating in Russia and might be considered as potential partners. Also, following from the previous point, Zipcar might be supported by government as a part of promoting electro-cars program.

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To sum up: Although today car sharing is not well-spread service among Russian people and many things should be overcame in order to build profitable relations with customers, there are a lot of opportunities for the industry here. Moreover, Zipcar has several strategical advantages that will help it to become successful in Russia.

Zipcar: company profile

Zipcar, Inc. was founded in 2000 as a membership-based, car sharing company. In march 2013 the company was purchased by Avis Budget Group and now operates as its subsidiary.

One of Zipcar’s main competitive advantages is its proprietary and efficient technology platform. The platform allows for a host of integrated activities such as “member sign-up, online and wireless reservations, keyless vehicle access, fleet management and member management. So, technology, strong brand image and communication are main reasons that Zipcar managed to achieve strong positions in the USA and in 2009 began to expand to Europe. The first move was the acquisition of Spain-based company Avacar in 2009 (although the deal was completed only in 2013). Later in 2010, Zipcar announced that it had acquired London-based car-sharing Streetcar Limited. As of July 2013, the company had more than 810,000 members and offers nearly 10,000 vehicles throughout the United States, Canada, the United Kingdom, Spain and Austria, making Zipcar the world’s leading car sharing network.

From 2004, Zipcar started to work on B2B model, providing service to more than 10,000 companies. Also, Zipcar has partnered with over 300 colleges and universities across North America.

Zipcar is currently the leading market player in the segment with first-mover advantage and significant brand cache. Given that car sharing market is expected to exceed $10 billion global market size by 2020, Zipcar has all the chances to expand even more.

Zipcar: Wheels when you want them

Just imagine the world with a million fewer cars on the road…

Are you young, trendy and green-minded?

Do you live in  densely populated city?

Could you imagine what your neighbourhood might look like if there were up to 20 times fewer cars?!

Then Zipcar is created for you!

“We are obsessed about our customers! So, our work is to make your carsharing experience as easy as possible. Only $6/month or $60/year and You can become Zipster, a member of our exclusive community. We serve more than 810,000 members and offer nearly 10,000 vehicles throughout the United States, Canada, the United Kingdom, Spain and Austria. Imagine, you can actually enjoy all the benefits of driving without complexity of using the car: no servicing, no car-washing, no worries about hijacking and no additional costs!  Just “Join. Reserve. Unlock. Drive.”

We envision a future where car-sharing members outnumber car owners in major cities around the globe

“Save-the-Earth is our philosophy. We believe that we can change the world through urban and environmental transformation. That is why we are fans of electrocars! After joining Zipcar, 90% of our members drove 5,500 miles or less per year. That adds up to more than 32 million gallons of crude oil left in the ground—or 219 gallons saved per Zipster.”

 

Finally, we have packages not only for individual drivers, but also for progressive companies! Less cost, hassle and waste. It’s just plain good for business! We propose: Low weekday driving rates, for business members only. Gas, insurance, and daily mileage included. Conveniently parked around your office (and around the world)

Sounds nice? Zipcar in your city: join the club!