YU I ZHENG I ZHANG1 | Smart Advertising I-GO Presentation Boston Consulting Group Case Competition May 2011 Vincent Yu, Geoffrey Zheng & Mike Zhang

YU I ZHENG I ZHANG2 | What are your pain points as a carsharing service? Balancing cost with new improvements to service Differentiating specific appeals for specific market segments Leveraging network of current car- sharers to spread word-of-mouth

YU I ZHENG I ZHANG3 | Smart Advertising Target advertising based on preferences Cost Car-Sharing Affinity Mixture of Both Create tiers based on preferences: Franklin, Clinton & Gore Sector Develop Market strategy based on tiers

YU I ZHENG I ZHANG4 | Low Income: $7, ,000 per annum household income Only 13% of current car- sharing market Overcome car culture Lower half of sector spends 42% of income on ownership Focus on cost savings Correlation between income and number of vehicle miles driven Franklin Sector

YU I ZHENG I ZHANG5 | Low Income: $7, ,000 per annum household income Only 13% of current car- sharing market Overcome car culture Lower half of sector spends 42% of income on ownership Focus on cost savings Correlation between income and number of vehicle miles driven Franklin Sector Humboldt Park

YU I ZHENG I ZHANG6 | Extremely Young: 25-54% of residences from % more likely to support green business 60% of market under 35 years old 70% willing to pay cost premiums for causes Gore Sector

YU I ZHENG I ZHANG7 | Extremely Young: 25-54% of residences from Highly-Educated: 35% and above with higher education 66% of carsharing market has higher education Gore Sector

YU I ZHENG I ZHANG8 | Extremely Young: 25-54% of residences from Highly-Educated: 35% above with higher education High Income: $52, ,000 per annum household income Green-Focused Green edge over Zipcar Local Business Gore Sector

YU I ZHENG I ZHANG9 | Extremely Young: 25-54% of residences from Highly-Educated: 35% above with higher education High Income: $52, ,000 per annum household income Green-Focused Green edge over Zipcar Local Business Gore Sector Lake View

YU I ZHENG I ZHANG10 | Highly-Educated: 35% above with higher education Middle Income: $39, ,000 per annum household income Model Consumer Cost advantage Environment commitment Better customer service Clinton Sector

YU I ZHENG I ZHANG11 | Highly-Educated: 35% above with higher education Middle Income: $39, ,000 per annum household income Model Consumer Cost advantage Environment commitment Better customer service Clinton Sector Near West Side

YU I ZHENG I ZHANG12 | Marketing Segments Low Third-Tier-Yield-to- Cost ratio Second-Tier Untapped Growth Potential Unrecognized coverage potential Hybrid Focus Cost edge over Zipcar Environmental Edge over Zipcar Environmental Focus Low emission vehicles More green, more local than Zipcar Cost-Savings Focus $5,000 average savings on car Best parts of driving, for less Strategies Franklin Sector: Capture the low-income market Gore Sector: Challenge for environmental activists; product differentiation Clinton Sector: Challenge for model customers; product differentiation and cost leadership

YU I ZHENG I ZHANG13 | Leveraging Networking: Word of Mouth Systems Compensation-Based Referral Systems Reward Users for referring new IGO users 25-35% word-of-mouth consumers Create exposure in neighborhoods Overcome Car Culture 70% prefer customer views over critics/professional reviews 82% prefer customer views over all else Average 15-30% Increase in Sales/Revenue 40% of WOM customers have brand loyalty

YU I ZHENG I ZHANG14 | Leveraging Networking: Social Networks Facebook groups for each neighborhood and each college Pareto Principle: 80/20 rule Use Sectors to focus information 43% of year olds use Facebook 10+ hours weekly 81% of marketers indicated significant exposure 29% Increase in Sales from Online Advertising Same Effects as Traditional Word of Mouth Systems

YU I ZHENG I ZHANG15 | Leveraging Networking: Model 40% Growth over 10 Weeks Committed brand loyalty

YU I ZHENG I ZHANG16 | New Technology Implementations: Smartphone App Low cost improvement to service Estimated $1000 cost to implement Increase Exposure of I-GO Estimated to benefit 60% of members Mobile reservations GPS locations of parking lots

YU I ZHENG I ZHANG17 | Conclusion: First Steps Target Advertisements Based on Sectors Leverage Social Networking Create Facebook group for each neighborhood/college campus Create referral-based system

YU I ZHENG I ZHANG18 | YU I ZHENG I ZHANG