Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Ähnlich wie IMCProject-CarSharing
Ähnlich wie IMCProject-CarSharing (20)
IMCProject-CarSharing
- 3. External Influences Economic Trends The state of our economy greatly influences consumer purchase decisions. The “sharing economy” has emerged recently in Canada due to the recession. The sharing economy allows consumers to share, trade, or rent what they own to others for a reduced price compared to retail or normal means of purchasing. As for car sharing, there are a few economic trends greatly affecting this alternative solution for urban travel. First of all the annual cost of owning and operating a midsize vehicle today is a high $10,456/year. The factors affecting this cost are value depreciation, auto insurance, fuel costs, maintenance & repair, licensing, and financing changes. Due to high annual ownership costs, today’s consumers are reevaluating their means of transportation. Social & Demographic Trends In Canada there is an aging population due to the quantity of baby boomers. This aging population is going to have a large impact on Canada's economy in the soon future. Within the next 30 years StatsCan forecasts that a large majority of Canada’s population is going to retire, causing a shift in consumer needs.[1] A large population shift to the west of Canada will occur mainly in Alberta and B.C, with Alberta exceeding B.C. in population.[2] The provinces of B.C., Ontario, and Quebec will grow in population primarily from immigration.[3] The environmentally considerate trend influences the majority of Canadian purchases today. Most if not all car sharing companies use ecofriendly and fuelefficient vehicles as a means to be perceived as a “green” company. The use of social media is trending and most of consumers are making their purchase decisions online. 81% of Canadians are connected to the internet, from that 47% of them search a product online prior to purchase.[4] Many Gen Y people have had financial problems and their purchase decision is impacted by it. Technology Trends There is an inevitable need to satisfy customers’ efficient technology demands in regards to speed, ease of utilisation, and accessibility for the car sharing industry. Several technological trends play important roles in these businesses. Example One, we have cloudcomputing, a popular form of storage technology which allows users to stream their information wirelessly. This includes for example, personal profiles, preference of car, saved locations, and more; all for free. It is protected into a data save bank so personal records are kept confidential. Evidence suggests that more than half of all Canadian companies have now upgraded towards cloudbased services. According to the Information and Communications Technology Council (ICTC), “The underlying impact of cloud computing on the Canadian enterprise market appears to be strengthening, as both ICT and nonICT companies continue to migrate toward cloud solutions. [1] Population projections: Canada, the provinces and territories, 2013 to 2063. (2014, September 14). [2] Ibid [3] Ibid [4] Five Game Changing Consumer Trends. (2013). 3
- 4. Although the economic impact of the switchover has yet to be determined, onehalf of SMEs believe that cloud adoption has reduced their ICT infrastructure costs.” (ICTC Report, 2013) Therefore, “Cars On The Go” should personalize the consumer experience and costeffectively adopt their company in a cloudbased environment to compete with the market. 1 Another familiar trend is the growing use of mobile service technologies, referred to as companion apps. These applications allow customers to connect to other services with their own technology (phones, tablets, laptops, etc.) to control multiple functions. Security is a major concern that must be updated to meet the technological changes in Canada and our society, so members will trust the regulatory acts of company car sharing policies. Regulatory Trends In regards to regulatory trends, there are specific laws and regulations for the car share industry. First of all, there are several privacy issues, including security of personal information, location tracking, and consumer profiling. We also see Federal government closely involved with car industry regulations as there is great interest in the influence of car sharing on our consumer market. If more Canadians start using car sharing programs rather than using their individual vehicles, we could see new emissions and HST taxes. Since 2005 car share members have had to pay user tax every year in addition for how many times they used the service. Policy includes, but is not limited to: automakers, developers and zoning regulations, fleet reduction, participant subsidies, parking policies and variants, risk sharing partnerships, taxes, transit discounts and university/college involvement. Finally, we note that multiple people using the same vehicle must abide by the following conditions: the membership agreements, the parking regulations, the insurance policies, etc. As car sharing is similar to car renting, insurance companies will be forced to take high precautions when outlining their policies. 2 Target Market Analysis Consumers and businesses look at a variety of factors when looking to use a carshare service, such as: Value (price per hour vs. Quality of cars and technology) Availability (Pick up locations) Kilometers granted per day Complementary services included (Insurance, gas) membership benefits and discount programs Environmental engagement. 1 Ictcctic.ca, (2014). Information and Communications Technology Council » Ontario – Regional Labour Market Report 2013. Retrieved from: http://www.ictcctic.ca/?portfolio=ontarioregionallabourmarketreport2013 [Accessed 24 Oct. 2014]. 2 Shaheen, Susan; Cohen, Adam P.; & Roberts, J. Darius. (2005). CARSHARING IN NORTH AMERICA: MARKET GROWTH, CURRENT DEVELOPMENTS, AND FUTURE POTENTIAL. Institute of Transportation Studies. UC Davis: Institute of Transportation Studies (UCD). Retrieved from: https://escholarship.org/uc/item/4h62q7mg 4
- 5. Competitive analysis COTG competes directly with Autoshare, Zipcar, Car2Go, and Options for Cars in the Toronto carshare market. Zipcar is the biggest competitor but it targets young drivers with disposable income, attracting them by offering an extensive variety of cars including premium vehicles. Autoshare has an ecofriendly approach incorporating electric cars on their fleet; it is also slightly cheaper than Zipcar’s rates and offers more plans for every customer’s needs. Car2Go has grown incredibly rapidly since it began offering services in Toronto in 2012, its strategy consists in giving the customers more freedom by removing annual and monthly fees and using a oneway model, this allows customers to leave the car in a different location every time they stop using the service. Options for cars is a small competitor with only 300 members. CarShare Brand Membership Share Locations Fleet Zipcar 45000 37.90% 200 600 Car2go 30000 25.30% 200 700 Communauto 20000 16.85% 450 1000 Autoshare 13500 11.40% 175 300 COTG 10000 8.45% 50 N/A Options for Cars 300 .030% 7 N/A Total 118800 100% 617 N/A Zipcar Since 2006, Zipcar “Wheels when you want them” operates in the city of Toronto, York, Mississauga, and Hamilton as well as Vancouver, BC. It is the largest carshare provider in the city of Toronto; Zipcar success is due the following factors: ● It offers a variety of car styles such as: 4door, 5door, Cargo Van, Coupe, Hatchback, Hybrid, Luxury, Minivan, SUV, Sedan, Truck, and Wagon ● Premium vehicles account about 35% of its fleet and you can find zipcars all over the city in their 200 different locations and also at airports. ● Zipcar focuses on youth and people with extra disposable income and intent on making the experience of car sharing “cool” and to provide the right vehicle to enhance your image. ● It offers business memberships without monthly commitment and helps them monitoring and controlling costs. ● It has student discounts as part of the association with the University of Toronto in all its campuses. ● It is most convenient for frequent travelers because allows customers to cross provinces and it is the only company allowing them crossing the U.S. border. 5
- 6. ● It has a greater investment in advertisement ● Members can reserve Zipcars in other cities like Chicago, London, or Barcelona.1 Autoshare Autoshare “The Smart Alternative to Owning a Car” is Toronto’s first car sharing network. It was founded in 1998 and also offer cars in Mississauga, York and Scarborough. Autoshare success is due to the following factors:4 ● The company focuses in delivering an environmentalfriendly car share service. ● Initial discounts and credits for promotion through customer to customer ● It is slightly less expensive compared with competition in hourly rates, daily rates and premium rentals ● Superior Insurance program (2 million coverage) compared with competition ● Founded as a localowned company, enjoys a closer approach with the city than competition such as Zipcar ● AutoShare members build an insurance record if they are using a personal account ● It offers a variety of plans for each customers needs. ● Interesting experiential marketing campaign through social network targeting young customers2 Car2Go Car2Go “Affordable drive through the city” can be found in downtown Toronto since 2012, and Montreal since 2013. Its oneway model and minute rates make the company service suitable for short trips. Car2Go success factors are: ● It allows customers to drop off the car in different designated points instead of the original spot ● Pay per minute, hour or day rates. ● No monthly or annual fees ● Members can reserve cars in other cities around North America and Europe ● It has great location spots thanks to the agreement with the Toronto Parking Authority ● Customers can rent a car from 19 years old3 Options for Cars Options for cars is a nonprofit carsharing cooperative operating in the GTA since 2009. It is a very small organization. 1 Fung, R. (2014, August 20). CarSharing Comparison: Everything You Need To Know About AutoShare, Car2Go And Zipcar. 2 Hughes, K. (2014, May 13). Which carsharing service is right for you. 3 Urback, R. (2013, July 13). Car sharing in Toronto: AutoShare vs. car2go vs. Zipcar. 4 O'kane, J. (2013, November 21). AutoShare fights to be king of the road. 6
- 7. Brand Analysis Cars On The Go was originally established in Toronto, they began operations in 2008. Currently COTG has 10,000 active members between two markets, Toronto and Montreal, holding a 8.45% of the market share in Toronto and Montreal together. Over the past three years COTG has had an 18% annually growth, averaging 4750 new members for the last two years. COTG’s sales have been a result of their marketing strategies, which are: ● Direct Mail: 45% ● Search Engine Marketing: 35% ● Unaddressed Mail: 5% ● Organic Sales: 15% COTG’s Position in the market has been a result of these factors: ● It’s been operational since 2008 ● It’s a convenient service offered at a competitive price ● social benefits of fewer vehicles on the road and less emissions ● Car sharing is an economic alternative to owning a car ● Offers a solution to increasing gas and insurance prices ● The majority of members are under the age of 35 ● Services the most populated markets in Canada SWOT Analysis Strengths ● Most green ecofriendly and fuel efficient organization perceived by customers ● Offers services in Montreal [Frequent Business Travellers] ● Partnerships with 3 Universities in On and two in QC ● Competitive prices with competition ● Customer loyalty ● Good reputation ● Good pick up locations, variety & number of vehicles ● Increase in membership over the last two years Weaknesses ● Dropoff locations are inconvenient ● Less locations available than competition ● Not enough numbers compared to competitors ● Lack of incentives for customers (Discounts) ● Limited marketing strategies ● Country border travel restrictions Opportunities ● Increase partnerships in different businesses around downtown areas to promote the service ● Presence in airports and train stations to increase memberships 7
- 8. ● Creation of an experiential marketing campaign remarking the strengths of the company over competition Theats ● Indirect competition such as Uber carservices is gaining popularity among major cities ● An increase in older population who prefer ownership over in carsharing Positioning Strategy Wheels to go everywhere at the best value. Target Market Primary Target ● Age: 1935 ● Gender: Male & Female ● Income: Limited Income usually under $25,000 annually ● Education: Currently a University or College student ● Occupation: Parttime or Internship ● Location: Toronto or Montreal ● Interests: Sports, Entertainment, shopping, and school work ● Lifestyle: Trendy but economical because of the student’s limited income, social media is a key role in their daily routine, socializing is essential on the weekends Secondary Target ● Age: 2635 ● Gender: Male & Female ● Income: 42,00049,000 ● Education: University or College Diploma ● Occupation: Fulltime business or professional occupation ● Location: Urban area Primarily in Toronto & Montreal ● Interests: Socializing after work and weekends, Family oriented activates, Career advancements ● Lifestyle: Works throughout the week, either work or family driven, Married and/or living in a 2 member household Marketing Objectives S.M.A.R.T Goals are smart, measurable, attainable, relevant, and timebound. Primary Objective To portray Cars On the Go as an affordable, “green”, and alternative decision to leasing/purchasing vehicles. Profit To increase membership from 10,000 members to 11,500 members in 2014 ROI To increase return on investment from 45% to 95% in 2014 Advertising To implement COTG direct to marketing initiatives across three channels in a campaign that includes direct mail advertising and experiential marketing (event) to Canadian institutions from midSeptember until November 2014. 8
- 9. Marketing Communication Strategy Experiential Marketing Objectives Create awareness between students from the three universities in Ontario (University of Toronto, York University, and Ryerson) and and the 2 of Quebec (McGill and Concordia) where we have agreements about the benefits of using COGT using social media (Facebook and Youtube) Get around 2,000 new members to the company within next three years from the schools we have agreements. Strategy This strategy involves a selection process of one student from each one of the five universities we are planning to target. The selection will be based on the students personality as well as the criteria of not owning a car and having a friends network already established within that school. The strategy involves providing the students a COTG for a month for free with the condition of filming the students’ experiences involving a variety of activities that promotes the attractions within the cities. The promotion of our car services as a way of convenient transportation for students who are looking to make plans with their friends will be delivered through social media.The duration of this campaign will be 2 months from MidSeptember to MidNovember Execution ● We will start the recruitment process at the beginning of the next school year, around september. ● Preferably students from second and third year with an outgoing attitude and are not car owners. ● After the selection, our 5 students will receive $1000 CAD in cash to spend in the activities they choose with their friends, as long as they are within the city of residency. ● We will ask them to plan a different activity with their friends every week and they will film their experiences, emphasizing the advantage of using COTG as a way of transportation to be able to do this activities. ● Our social media manager will edit those videos and upload them on the social network (Facebook and Youtube) before the weekend, so it creates buzz between students and get them to use our services on their weekend plans. Assumptions: ● The five universities we have agreements with are U of T, York, Ryerson, McGill and Concordia. ● Thanks to the agreement, we’ll have access to students emails, in this way we can reach them and let them know about our promotions and our social media campaigns. Activity Expenditure % of Total Social Media Manager Salary $2,000 6% Car Service $22,400 62% Recruiter $1,500 4% Cash for attractions $10,000 28% Total $35,900 100% 9
- 10. Event Marketing Plan To immediately increase our current membership rate and create brand awareness within our partnered universities.The event marketing plan involves using a table top booth complete with text, images, flyers, brochures, and interactive tools all setup in each university and college at the Toronto and Montreal locations specific with our target market that aims to promote membership agreements with the consumers. Objectives: ● To increase the amount of active members within our primary target market by at least 65%(6,500) . ● Increase brand awareness within our partnered universities. Strategy To associate COTG with our currently partnered universities in order to position are company as the Car share Company for University and College students. It will be a five week process. One of the key strategies is to develop a booth which allows interaction and engagement with 4 sales rep present and explaining our service, such as offering key features, combine that verbal dialogue approach with an iPad companion device showcasing COTG. Execution ● COTG will place a table top event within all 5 partnered University’s for the length of 3 days ● 4 Sales Reps will be hired to verbally promote and hand out brochures to passing students ● 10,000 Brochures will be printed for each university, a total of 50,000 Brochures ● Each sales rep will be equipped with an IPad, to obtain new memberships on the spot ● The reps will be paid for the 5 week days at each university ● An email will be sent to all students attending the Universities to advertise the event a day before. ● The event will last from Tuesday to Thursday at each University ● Prizes will be available to new members by a draw at the end of each day ● Prizes include Prepaid Visas, GoPro Cameras, and Free Access to our services for the first month ● Every new member will receive a complimentary COTG lanyard upon signing up ● Sales Reps will travel from Toronto to Montreal by train for the week they visit Concordia ● Hotel rooms will be provided for the sales reps Assumptions ● The cost of the space is covered because of our partnership with the Universities ● Are partnered Universities include University of Toronto, York, Ryerson, McGill, and Concordia ● We have the access to all the student emails at each university to promote the event Prizes ● Prizes will be awarded at the end of each day via a draw of all new members that day ● 10 Prizes of 1 Month Free Service will be awarded each day ● 50 Gopro Cameras will be awarded each day ● 100 Prepaid visa cards containing $100 will be awarded each day ● Every new member will receive a COTG Lanyard when they sign up 10
- 11. Activity Expenditure % of Total Equipment Rental $4,500 0.72% Sales Reps $10,000 1.6% Transportation $1,000 0.16% Prizes $597,500 95.6% Brochures $3,750 0.6% Hotel Costs $15,000 2.4% Total Cost $625,000 100% Prizes Expenditure % of Total One month free services $225,000 37.7% Go Pro Cameras $150,000 25.1% Prepaid Visa Cards $150,000 25.1% Lanyards & Shipping costs $72,500 12.1% Total Prize Cost $597,500 100% Direct Mail Advertising Plan Objectives ● Add 3,000 new members within the Canadian territory to the company's list of members. ● Create new partnerships with other small and medium enterprises. ● Small and Medium Enterprises (SME's) Strategy ● With the B2B strategy, we are trying to get a 100 different companies to sign with us, offering membership packages depending on the size of the company could be between 25 to 40 memberships for a yearly contract. (60 medium businesses and 40 small) ● Adding up to 3,000 new members to our database. 11
- 12. ● For that we will be using direct mail as part of our plan allocating 30% of our budget; 400K that will be used for sending packages with information about COTG, so they are aware of who we are, where we are later going to follow up with them already aware about us to start setting up interviews to meet with them and propose our idea. ● We have estimated that this will be accomplished in a period between 18 to 25 days plus a 5daytraining for our sales reps. Execution We are going to be targeting Small and Medium Businesses in the areas of Toronto and Montreal. We want to target people in the Human Resources Department; given they are the ones in charge of looking after the satisfaction, and employees benefits, etc. Using Direct Mail, FollowUps, Setting up Meeting, etc. is how we want to reach people that, to later sell them our idea creating business with them. Some of the businesses we are targeting are shown in the next table Fuller Landau LLP FINANCIAL SERVICES & INSURANCE / ACCOUNTING ITG Canada Corp. FINANCIAL SERVICES & INSURANCE Summerhill PROFESSIONAL SERVICES Wynford/EventSimple PROFESSIONAL SERVICES • Ceragres: ceramic and stone importer • Vitre Art: offers residential customers a wide selection of weldfree stained glass for doors • AV & R: an engineering firm specializing in automation • Bon Look: creates and sells prescription lenses We are training our people to have between two to three meetings per day, two reps in Toronto and two more in Montreal. ∙ 60 medium businesses and 40 small businesses, divided equally between the two areas. ∙ $ 120,000/100 businesses = 1,200 worth of information, enough for each business and its HR department. The way we are trying to do this is by aiming the HR people, sell them our idea, letting them know how this could be a win win situation. Providing them with all the answers to all of their why complete? And every doubt about doing this and all the benefits that this could bring to them as to the company and their employees. ● You reduce parking problems on and around the site, especially if expansion or relocation is planned. ● Relieves local traffic congestion ● Limits staff complaints about cost and time of their journey to work 12
- 13. ● Assists with staff recruitment and retention ● Contributes towards sustainability and travel plan targets ● Demonstrates CSR ● It reduces the number of singleoccupancy cars coming to your organization ● Make parking easier for visitors and staff who need to drive ● Contribute to shift mode / carbon reduction targets Percentage (%) Total Sales Rep (4 reps) 40% $160,000 Trainer 10% $40,000 HR Packages 30% $120,000 Equipment, transportation, etc. 20% $80,000 Total 100% $400,000 Assumptions. ● Getting 3,000 new members assuming we going to reach a 100% of our businesses to partner with us. ● Assuming we have a fleet big enough to satisfy this strategy. ● That we won’t have to hire new sales people, using our own just training them, saving cost of new hiring. 13