By: Amit Das Aminul Islam

INTRODUCTION
Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje

Danielson and Robin Chase.

As of February 2013, the company has 777,000 members and offers nearly

10,000 vehicles.
On 14 March 2013 Avis Budget Group purchased Zipcar.

The company focused on three main customers:

Individuals Companies Universities

S.W.O.T. ANALYSIS
Strength

Ease of use Style of its service (cool car) Technological sophistication (Wireless & RFID technology) Green Benefits!! Membership savings

No usual hassles attributed to traditional car rental like reservation after joining as a member.
Effective branding through its website and fleets by using signature Zipcar light green that symbolizes environmental friendly.

Weakness

High dependency on technology for its seamless operation like online reservation, payment and fleet management. There is certain weakness in its marketing tactics as it is largely unknown to urban masses. Its website failed to be search engine optimised.

Opportunities

By been environmental friendly, it is in a very strong position to entice customers who have strong view about environmental and social concern. By establishing its presence on college, it has created a strong awareness and foothold of new generation fans. While rising fuel costs will push people toward Zipcar. Transit connection- fleet can be strategically parked near train or subway stations for easy access to member.

Threats

Big car rental companies like Hertz, Enterprise entering into car sharing market. Rising petrol can be an economic burden to Zipcar since its rate is inclusive of petrol.

MARKETING MIX (4PS)

Product
Zipcar offers more than 30 models of vehicles
All cars comes with equipped with GPS & WIFI Clean fuel vehicles

Price
Provide low-cost, economic car sharing service (one-time

application fee $25)

occasional driving (from $8.25/hr and $84/day)

extra value ($50/month then $7.43/hr and $75.60/day)

Included with every plan: fuel, insurance and up to 40 free

miles per day

Zipsters can save an average of $500 a month compared

to car owners

Promotion

Print ads on public transportation like Buses, Taxis, Subways etc Advertisement on Zipcar properties Free membership for merchants who prominently displayed Zipcar pamphlets. Online marketing IKEA-the home goods retailer-has sponsored 14 cars bearing both the IKEA and Zipcar logos IKEA then created "Zipcar parking only" spaces at its new store

Place

Online

FACTORS THAT NEED TO BE CLEARLY GRASPED BEFORE MAKING A DECISION OF VENTURE ARE:
GLOBAL COMPETITORS
Which other companies with similar service are targeting the same

market?
Do they have any advantages? If so, what (political ties, personnel

from the market, etc,.)?

Do they have any disadvantages? If so, what (poor reputation in

the market, legal issues at home, etc,.)?

What is their track record in new market entry? If strong, what are

their methods?

LOCAL COMPETITORS
Are there any existing local companies in the target market with similar

service? If so, how many?

How long have they been operating?

What is their percentage penetration of the estimated market size?

What kind of barriers will they be able to erect to the company entry?

How strong is their brand loyalty?

SOCIAL CHANGES
What kind of social changes are occurring in the target market that would

affect service success?

Which changes are trends and which are new models of living?

Are social changes becoming more sympathetic to the country of service

origin?
Will the service be left in the dust due to changing social taste or will it

harness the next wave?

SUPPLIERS

How many potential suppliers do have currently compiled for the service? How strong is supply chain (fiscally, historically, logistics, ability to meet future demand, etc,.)?

Are there any suppliers closer to target market who can provide the same quality but cut down on transportation / logistics overhead?

DEMOGRAPHICS
Do the demographics in target market facilitate a growing market potential

or a declining one?
What is the adoption rate of the current demographics for the service?

What barriers exist in introducing the service, creating hurdles to be

cleared?
What needs will the service solve?

GOVERNMENT POLICIES
Who are the key policy makers for the niche which affects the service? Does

home government have any special regulations involving trade with the target country? If so, what?

Are there any policies under development currently that would affect the

market entry?
What kind of relationship does home country embassy trade consulate

have with target market policy makers? Of how much help can your consulate be?

ECONOMIC CONDITIONS
What is the current trade volume of the target market?

What is the Gross National Product (GNP)?

How does the currency difference affect the venture?

What are the spending patterns of the target end user in this market?

Will your service bring value to the economic conditions? If so, how?

WORLD SITUATION
What is happening with the target market on the stage of world politics

and economics?
Is it or a neighboring country hosting the Olympics soon? If so, how would

this affect the company entry?

Is there civil war in a neighboring nation? If so, what kind of threat does

this pose to the company sustainability?

Is the target market under international investigation/pressure for alleged

support of subversive activity?

TECHNOLOGY

What is the level of sophistication of the target market as a whole? How does the historical data on adoption of new technology/service affect the company entry and sustainability?

What are the current technology needs of the target market and does the service meet them?
What are the anticipated future technology needs and how will this affect company sustainability?

CONCLUSION
India is a perfect market for Zipcar
In 2012, EMBARQ, the WRI Center for Sustainable Transport, has been researching the feasibility of car sharing in developing countries a project sponsored by Volkswagen. The team recently conducted focus groups with potential and existing car sharing users in Hangzhou, China and Bangalore (India). A final report summarizing the findings will be published soon.