Intro to Management 1
Tea Tree Systems Michael Chamberlin Drew Kessler Bill Wenrich Daniel Zhao
Bill Wenrich01 April 2010
Intro to Management 2
• Who is Zipcar?• How should we spend the money?• Market segments• Memberships• Brand image• Environment • Public transit• Analysis
Agenda
Intro to Management 3
Who is Zipcar?• Zipcars live in neighborhoods, near
businesses, and at transit locations in Boston• Shared vehicles that members can drive by the
hour or day – from only $4.50/hr• No hassle – The hourly fee covers all expenses:– Fuel– Insurance– Maintenance
• And we are expanding…
Intro to Management 4
How to Spend the Money• Expand into East coast markets• Add targeted advertising to the established
word-of-mouth advertising• Extend Zipcar as a cost-saving resource for
business travel• Focus on promoting the environmental
benefits of car sharing
Intro to Management 5
Our Market Segments• Consumers – Provide personal drivers with a
more cost effective solution for car ownership and rental.
• Businesses – “Z2B” plan and dedicated vehicle program provides cost- effective transportation for businesses
Intro to Management 6
Membership• Open to those
21+ with license, deposit
• Some people with poor driving record excluded
• Annual membership fee + hourly rate
Breakdown of User Cost0%
10%20%30%40%50%60%70%80%90%
100%
Additional milesTotal hourly serviceAnnual feeDeposit
Intro to Management 7
Brand Image & Advertising• Established through word-of-
mouth advertising in urban areas
• Expand advertising to include posters in proximity to mass transit stations in future markets for expansion
• Partner with mass transit– Help customers chose the best
option for them– Based on honesty and trust
Intro to Management 8
Environment• 13% of members have sold a car since joining
• 40% have avoided buying a car
• In San Francisco, car share members drive 47% less– Always aware of miles and
hours– Equate reducing driving &
fuel consumption with saving money
Vehicle tr
avel
Fuel c
onsumption
Emissions
-60
-40
-20
0
20
40
60
80
100
120
140
MembersControl
Intro to Management 9
Partner with public transportation• Supplement, not replace
existing transit networks• Locate Zipcar pods near mass
transit stations• Begin a journey on public
transportation, complete the last leg with Zipcar
• Putting cars here is also an investment in advertising because they are located in a heavily-trafficked area
Intro to Management 10
Analysis of Expansion• Strengths:– Co-founders have experience in business,
environmental issues– Established relationships with insurance, car
manufacturers, parking authorities• Weaknesses:– The management team is weak - Danielson is
distracted by research and is not committed to Zipcar– There is a significant investment into a city before any
profit can be realized
Intro to Management 11
(continued) Analysis• Opportunities:– There are no competing car sharing companies
currently operating on the East coast– Urban areas with over 25 households/acre
frequently have less than 1 car per household• Threats:– Existing car rental companies are established in
many markets and could enter the car sharing market
– Zipcar’s profits are heavily reliant on steady prices in fuel, maintenance, and parking
Intro to Management 12
Questions
Tea Tree Systems Michael Chamberlin Drew Kessler Bill Wenrich Daniel Zhao
Intro to Management 13
References
• http://upload.wikimedia.org/wikipedia/en/9/92/Zipcar_sign_-_Washington,_D.C..jpg
• http://www.zipcar.com/business/• http://blastmagazine.com/wp-content/uploads/
2009/10/zipcar_boston.jpg• http://www.travelyucatan.com/cancun/cancun_
bus_station.jpg• City Car Share. (2007). Bringing car-sharing to
your community. Retrieved from http://www.citycarshare.org/download/CCS_BCCtYC_Short.pdf
• http://images.fanpop.com/images/image_uploads/Boston-MBTA-Map-2001-metro-maps-46863_1024_1022.gif
• http://www.themidnightcoders.com/blog/uploaded_images/question-mark-787608.jpg