Tata AIG General Insurance Company - Insurer Innovation Award 2024
Plan_The Kiwis
1. GreenShare
Affordable. Convenient. Sustainable.
Eva Maria Arnadottir | Lisa Heinemann | Zachary Krumme | Oskar Litton | Sherry Wu
S
MGM Marketing Processes - Final Presentation 27.9.2012 - The Kiwis
2. Introduction
• Service
• Current Situation
• Segmentation
• Marketing Strategy
• Evaluation
• Budget
3. A step
ahead…
• Mission
To provide a green, simple,
and affordable mode of
transportation whenever,
wherever our members need.
• Vision
To change the way people
use motor vehicles and
create a sustainable future
for transportation.
4. Service
• Sign-up.
• Find nearby station.
• Use a “green” Volvo.
• Return it.
It’s that simple.
5. Current Situation
S Strengths S Weaknesses
S High Disposable Income S Strong Public Transport
S High Societal Eco-Awareness S Non-Core Operation
S Strong Existing Brand
Presence
S Opportunities S Threats
S Untapped Market for short S Other car-rental services
(<4hr) inner-city trips S Regulatory Hurdles
S Green Niche
6. Political Economic
1. Gov’t backs 1. New Demos
green 2. Inc. Brand
projects Recognition
2. Favorable
climate
Legal Social
1. Insurance 1. ”Green”
2. Driver’s 2. Leverage
Licenses Goodwill
Environmental Technologica
l
1. Hybrid 1. Latest
2. Fully-Electric Models
2. Recharging
Stations
8. Target Markets
Students Young Professionals
S 18-25 years S 26-34 years
S Inner city resident S Inner city resident
S Economical solution, S Environmentally sound solution,
convenience, independence convenience
S Light user S Light to medium user
S Market size: 70,000 S Market size: 200,000
10. Marketing
Strategy
• Hybrid blend of traditional
media together with new
media
• Strategically placed print
media
• Show Volvo Green Share
is a part of the
transportation ecosystem
11. Marketing
Strategy
• Marketing through new
forms of social media
• Encourage happy
consumers to promote
brand on their social media
accounts
• Show the match in values
we have with the consumer
12. Reach the
consumer…
• Use the parking spots as
billboards
• Collaboration with local
businesses
• Local events such as street
festivals and farmers
markets - first-hand
interaction with potential
customers
• Create partnerships in
order to increase credibility
and awareness
13. How are we
doing?
• Marketing metrics
• Online analysis
• Customer database
• Tracking system
14. It never goes
according to
plan
• 350 signups first month
• Growth rate average of
15%
• 60 cars at the end of the
first year
• Obstacles - Reaction
15. Budget
Stable
Growth
Make
Impact
Create
Awareness
Positive Constant Share 15%
revenue Break even
growth 5% of Hertz
in year 2
In year 1 per m membership
16. Budget
• 49 out of 57 can drive a
car, 48 of whom don’t
have a car but would like
to drive
• 68% are willing to use a
car share service
• Price and convenience
are the major concerns
17. Financial Impact &
Marketing Budget
Volvo Green Share
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
-500000
Net Income Revenue Marketing
Start off with a strong push of a hybrid blend of traditional media that is modern together with new media such as internet radio and social media create brand awareness as well as word of mouth buzz.Position print media in places in eye catching spots such as outside big box retailers, public transportation and apartment buildingsCreate impression that car share is a part of the transportation ecosystem and an option for every day travels.
Focus on key demographicDemographic responds best to new forms of social media such as Facebook, Twitter. Combine this with encouraging happy consumers to promote brand on their social media accounts.Show how values of sustainability, affordability and environmental awareness are values we share with the consumer.
Bring together our product with the communityUse the parking spots themselves in their convenient locations to help create awareness.Through collaboration with local businesses such as supermarkets, coffee shops and apartment buildings to create a familiar local association with the brand.Actively attend and promote the service at local events such as street festivals and farmers markets. Interact first hand with potential customers. Create partnerships with the city government, environmental groups and young professional/ student associations to increase creditability and awareness.
1. sales analysis and marketing expense-to-sales analysis, financial analysis will be done monthly. Market share analysis every 6 months as well as primary research on brand awareness and general knowledge and preferences concerning car rental and sustainable living.2. Tools available on the web – google support, activity on our social media pages3. The Database – forms automatically - geographic, demographic and behavioral segmentation (such as rental frequencies and rental time).4. Able to see exactly how the cars are being used
lightly step on the main goals -sign ups which will lead us to 60 cars at the end of the year.Obstacles - Reaction - would be (if the research shows that we are not doing our job then we will invest in relaunch - if we have systematic fail then we invest more in R&D. If these adjustments will not show any increase then we will reconsider our prospects in Sweden as Stockholm is seen as the best starting point.
Through the first three months of the marketing project, we plan to allocate half of the budget for the first year (0.9 million SEK as half, 1.8 million SEK in total) to create a wide-spread impression of the service. We will comply with the Volvo brand, its mission and vision, pursuing a green future of automobile by providing eco-friendly car sharing service, which enables the customers to associate the brand with its social responsibility and technology. This can alternatively turn our customers into walking advertisements, which in turn saves our marketing expenses.We aim at a 15% monthly increase of the membership and a 15% stable increase of the car usage per month.Share 15% of the membership from Hertz by the end of the first yearGenerate positive revenue within the first year of operation, reach breakeven point in two yearsReach at least 15000 regular members by the end of the first yearOutweigh most of the small and private car sharing service present in Stockholm in terms of reputation by the end of the first year of operationBy offering the car sharing service directly, we aim at saving the operating cost while generating extra income for Volvo (leasing the cars to other car rental companies usually brings along extra cost and Volvo can only get a fixed proportion of the generated revenue)
1. monthly growth rate of membership is estimated at 15% 2. monthly usage per car is estimated at 1500 kilometers in first month 3. We expected a discount on the original parking fee of 600kr per car per month 4. Car insurance is estimated to be 6000kr per car per year 5. Toll is said to be 60kr maximum per car per day, only applicable for weekdays 6. monthly car usage growth rate is estimated to be 15% 7. First month penetration rate is estimated to be 0.2%, with month to month growth rate of 2% , so first month usage will be set at 350 users 8. Target group is estimated to be 800000 in Stockholm, data: age 20-40, 40% out of 2 million, using survey results times penetration rate: 2m*0.4*0.005*0.84*0.87*0.679. Assuming the usage is evenly divided per car 10. Late return happens one out of every 10 times 11. Assuming the first signups all use the cars and monthly usage will be twice per person, each car will be used for 3 hours per user for the first month12. Personnel expenses are estimated at 50000 for 2 landline customer center, maintenance will be outsourced 13. R&D expense is estimated to be 10000 per month(to get the webisite running, fleet management is already developed) 14. Maintenance fee includes fleet maintenance and website maintenance 15. We use linear depreciation methods 16. Assuming Volvo gives us 1.8 million for marketing the first year, the first three months take up half of the budget and the rest divided equally 17. Regular using year of the fleet is estimated at 5 years 18. Price for V70 will be $35000, and C30 will be $30000, roughly 300000 SEK and 200000 SEK 19. Cost for V70 and C30 is estimated to be the same as market value, so the investment will be 10000000 in total 20. Assuming by the end of the 5th year, the savage value of our fleet will be 40%, will sell the old ones to get new ones21. V70: 175 SEK/hour fee – 400 SEK one-time late fee,C30: 125 SEK/hour fee – 400 SEK one-time late fee22. Monthly fee: 50 SEK times however many users there are per month23.Parking lot – reference: http://www.stockholmparkering.se/engparkingingeneral.htm24. Maintenance: 1,000 SEK/car/month
