The Market Leader In Providing Car Showing Services Marketing Essay

Zipcar, the market innovator in providing car posting services was began just a decade back with a relatively simple looking idea of sharing of autos for common destination. Though it looks simple but actually it is very difficult and complex to implement this idea on large level. The growth of the business so far is principally attributed to the utilization of technology and its zeal and motivation degree of its workforce. The business is getting excited about sustain the development momentum by focusing on reduction in carbon footprints apart from low priced and decongestion of city traffic. Apart from business customers they are simply focusing intensely on universities, they think that the carbon footprint idea can help them in accumulated more colleges in their customer list. That is an area which includes got tremendous development potential. This is the reason that it's got many competitors in the market targeting this business portion. Zipcar targets business users, colleges and individual users. It designs its promotional and publicity strategies to aim for this segment. The business positions itself as a low cost conveyance due to its shared service notion. This helps it getting more and even more customers. The company offers its customers options to choose their preferred car and time of use. There's a vast request of IT as the company uses latest techniques like RFID to track its network of cars and hence can save well on costs.

Company Background

Zipcar was founded in 2000 by Robin Run after and Antje Danielson to bring the Western craze of car sharing to Cambridge, Massachusetts in USA. Apparently simple and rational idea of car writing has been converted into the worlds most significant car writing company that came up to the covers of fortune Newspaper in '09 2009 by the dedicated work of the team and advancement and use of technology in providing service to its customers. Zipcar has were able to grow at this outstanding speed by using inorganic way before like merging with and acquiring others to grow in size as well concerning increase the its reach to newer territories.

Zipcar has used systems like RFID transponders to generate efficiency as well as responsiveness to its car writing business which in turn business lead to inclination of increasing numbers of people towards car showing as use of technology brought down the price of service along with surge in the service quality and enhanced individual experience.

Zipcar has given its member an option to choose car from a number of models including Volvos, trucks, and many more. A couple of more than 6500 zipcars in 28 UNITED STATES state governments and provinces as well as London, England. It really is on way to bring his functions to newer territories especially Europe.

Marketing Strategy

Market Segmentation

Total market for zipcar can be segmented on the following basis.

Geographical segmentation- like metro, urban, suburban

Demographic segmentation-on the foundation of age

Socioeconomic segmentation- based on education, profession and income

Psychographic segmentation-

User group

Target Market

Based on the segmentation and other main and supplementary data, target market for the company is really as under.

Business Customers with an increase of employees using vehicles or taxis for established work

Universities indirectly focusing on faculties and students over there. Though one person (say scholar) seldom uses car/taxi cab but final number of pupil enrolled at a school is very high and therefore cumulatively market size is high.

Anybody who wants to use shared taxi cab instead of public transportation or rented taxis with drivers.


Zipcar is actually offering a offering i. e. providing car showing service. As an offering is generally a mix of product and services, offering of zipcar also has product aspect associated with it that are vehicles and zipcar RFID cards etc. You can avail car on hourly as well as day basis at predetermined location and time (as explained during booking)


It is the largest customer puller for Zipcar. By posting of automobiles and use of progress technology zipcar has managed to provide good service at very competitive price. Technology and its people have empowered Zipcar to become worlds greatest car showing company.


Company began its services in 2000 from Cambridge, Massachusetts in USA which it has now expanded to 28 UNITED STATES areas and provinces along with some parts of Europe. A possible customer can find out from the website if any particular place is included in Zipcar or not.


Company is focusing on technology savvy people by enabling them to reserve their car on internet and mobile. It further focuses on the big companies or large groups instead of concentrating more on specific users, as profits on return is higher in the last case. However now when company has already become worlds largest car showing company it might be difficult for the business to increase at the speed it can be used to without focusing on specific users.


Company has located itself as financial but convenient option for transportation along with contribution to the reduction of carbon footprints.

Points of difference

Convenient and monetary option

Contribution towards decrease in carbon footprints

Use of latest technology

External Environments

Political Environment

As today every person is concerned about rising fuel costs and increasing carbon footprint globally, overall politics environment is in favor of ideas like car writing which positively affect the import invoice (petrol), carbon footprint and decrease in traffic congestion.

Social Environment

People are considering it as a sustainable and good option for travelling. Astronomical expansion of the business above the almost past one decade also implies that folks on the whole are favoring Zipcar and its car sharing model.

Economic Environment

Sustainability of the business style of Zipcar due to its low cost, impact it positively so far as economic environment is concerned. Furthermore recent monetary downturn biggest following the great tough economy of 1929 made individuals as well as business users to think about cost decrease, which goes in favour the Zipcar.

Technology Environment

It is the advancement of technology like RFID that enabled the company to manage its operations successfully and at the same time being more responsive to the customer, which led to the increased self confidence of its customers and superb expansion. It is expected that further improvement in the technology is merely going to help the company in one or another way.

Competitive Environment

Zipcar came into existence in 2000 and within one decade it became the major car sharing company on the globe. It has actively taken inorganic growth road using merger and acquisition for supplementing its organic progress. Though there exist a great number of competitors but most of them are small with existence in small physical area.

Internal Environments


Despite recent global tough economy company keeps growing at a significant pace favorably affecting its top lines and bottom level lines. Company despite being on acquisition spree has healthy financing condition. Company is also going to capitalize over its superb performance and trust it likes among public by having IPO in the financial market. That is likely to make its financial position more strong.

Human resources

Along with use of technology, its real human resource is the biggest contributor for the growth of the company. Decision manufacturers have been taking calculated risks as far as formulation of development strategies is concerned, its middle management and other labor force is also not behind as far as performance can be involved.


Zipcar was founded by Robin Chase and Antje Danielson in 2000, and they have performed very critical role in the management of the company. Scott Griffith, CEO of the Zipcar has been providing the company for many years now. Scott Griffith enjoyed an extremely critical role as far as merger with Flexcar can be involved. With proven history of the management of Zipcar, its future looks very appealing.


In service industry marketing one needs to guarantee that no difference is left huge enough to cause customer dissatisfaction. Up to now company did well, though there were some concerns when company announced end of its collaboration with XM radio, but company have well in appearing out of that situation.

Marketing Planning


How good the strategies produced by way of a company may be, they could will end up in vein if they are not integrated properly and also if proper control is not held. As per as implementation is considered strategy, system, composition, staff, shared beliefs plays an extremely critical role. So far company has had the opportunity to formulate good strategies along with implementation but only that's not sufficient, Zipcar needs to continue it in future also.


Company does make good use of technology which does help it getting the relevant data needed for decision making and control goal. Marketing dashboard could be of great help as far as control can be involved. Also contingency plan is must to deal with any unforeseen situation.

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