By: Arun Nadar Gururaj Rajni Roushelle Marta Mehtab
Car Sharing An alternative for car ownership. Saves insurance and investment cost. Environment friendly. Reduces traffic congestion.
About… 30% market share 10,000 active members across its 2 markets Attrition levels 18% annually (last 3 years) 4,750 new members on an average, annually (last 2 years) Partnered with three universities in Ontario and 2 in Quebec. The 5 universities have a total enrollment of 229,578 students.
Competitors Source:
COTG vs Competitors About 12,500 members. AutoShare has vehicles parked in over 60 condos and apartments across the GTA Claimed to be 28,000. There is no time or location commitment—keep the car long as you need it and drop off at any approved parking space within the home area.
Issues to Address Increase subscriptions Number of locations Brand name confusion
Business Objectives To reactivate 3% of the lost customers and inspiring, motivating, creating brand awareness amongst people aged 23 – 35. To acquire 11,500 new members by the end of fiscal year 2017 by developing three integrated direct marketing strategies within a budget of $1,250,000.
Target Audience Young professionals Middle class income group Frequent travellers Valid drivers license Less disposable income
Audience Objections: Strong Competition in car sharing market Less pick up & drop off points Limited number of sedans and SUV’s Maintenance problem No baby seats & upgraded insurance maintenance-is-very-important/
Marketing Strategy Features & Benefits Providing Service in multiple city (Toronto & Montreal) Very competitive fee structure Reserve online from 50 pick up & drop off location
Long distance traveler can get low fares 24 hour mechanic service provide Fleet of new car like SUV’s, sedans, minivan & hatchback(minicooper) Environmental friendly Saves fuel cost
Unique Selling Proposition
Proposition 1 : 3 rd Party Ad CAR When customer selects this car they pay hourly rate of $ 5.50(travelling above 30km) This is best price amongst competitors and ensures more customers to opt COTG.
Proposition 2: Social Media Marketing Discussion and suggestions on various adventurous places to travel, reviews on new cars and equipment. This content attracts attention and encourages spread messages from users to users. This attracts non customers too
Proposition 3: Direct Mail marketing This is for inactive customers and provide free pass for 20km to use within next 3months. This motivates in reactivating the lost customers. To regain customers
Proposition 4: Sending s Sending s to most frequent customers about new car purchases at COTG and offering them to use at discount prices. To increase customer spend
Proposition 5 Creating Awareness Conducting awareness programs in the form of flyer distribution and surveys at universities to target students. To get new customers
Communication Objective Provides a wide range of cars without any hassle of insurance and investment cost at BEST PRICE in market Provides service in multiple cities (Toronto and Montreal) and option of reserving a vehicle online 50+ locations in each market that it serves for pick up and drop offs
Tactics Third Party Ad Car Targeted at students Strategy: Hourly rate of $ 5.50 travelling above 30km Tactics: Sponsor’s logo on vehicles Source:
Rewarded Targeted mainly at students Strategy: Social media marketing Tactic: Create discussion forums online banners Facebook fan of the month Post a picture of a parked COTG get 10% off on the next drive.
Kill Bill Target: Existing inactive customers Strategy: Direct Mail marketing Tactic: Identify inactive customers free pass for 20km to use within next 3 months
Campaigning Target: Frequent Customers Tactics: 30% referral discount Once a month
Budget Plan TacticsCost of tactic Number of contacts Expected RR% Expected # Sales Cost/resp onse ROI % Social Media %2160$ Campaign *1.5%5400$66.66 Direct Mail %1260$ TOTAL CAMPAIGN $ %
Budget Pan Assuming the revenue is $200 per sale and the cost of goods is $95 per sale, overhead is 25% Revenue from campaign is 8820 x $200 = $ COG is 8820 x $95 = $ ROI = Profit – Cost of campaign = ( – ) = 8.69% Cost of campaign
Results Monthly marketing team meetings to review the objectives Re-assess marketing plan if we do not meet budget goal Monitor social media daily engagement towards target audience Evaluate through monthly analytics report Review promotions and advertising effectiveness
Annual Marketing Plan
Call To Action Get a membership at COTG by paying annually fee of $45 and start using COTG service today and get access to our wide range of cars
Bibliography 1. Autoshare company websitehttp://autoshare.com 2. Kim Hughes, May 13, 2014http:// Car2Go company websitehttps://