By:

Arun NadarGururaj RajniRoushelleMartaMehtab

Car Sharing

• An alternative for car ownership.

• Saves insurance and investment cost.

• Environment friendly.

• Reduces traffic congestion.

http://www.tnooz.com/article/stelios-hitches-a-ride-on-carshare-bandwagon-with-easycar-revamp/

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: http://www.wagjag.com/deal/toronto/67-off-a-year-autoshare-membershiphttp://www.alternativeconsumer.com/2014/08/14/

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

http://mydistance-learning-college.com/blog/recent-issues-regarding-certificationawarding-bodies/

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

http://shetakesontheworld.com/2010/07/who-is-your-target-audience/

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

http://www.carserviceprices.com/why-regular-car-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

http://kaleidico.com/blogging/blogging-sales-strategy-52027

• 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

http://www.facebook.com/l.php?u=http%3A%2F%2Flego.wikia.com%2Fwiki%2FMechanic_(Minifigures)&h=lAQEX75rthttp://www.viacometa.com.br/fotos/25022013055051.jpg

Unique Selling Proposition

http://premium.wpmudev.org/blog/wp-content/uploads/2011/12/unique-big.jpg

Proposition 1 :3rd 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.

http://blog.oneclass.com/wp-content/uploads/2014/07/car2.gif

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

http://digitalpopmarketing.com/wp-content/uploads/2014/11/spreading-the-word-socially-1.png

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

http://www.envelopesexpress.com/img/E105-10_Wdo_Envelope.new.jpg

Proposition 4:Sending Emails

• Sending emails to most frequent customers about new car purchases at COTG and offering them to use at discount prices.

• To increase customer spend

http://www.google.com/hangouts/images/gmail-icon.png

Proposition 5Creating Awareness

• Conducting awareness programs in the form of flyer distribution and surveys at universities to target students.

• To get new customers

http://apsdfile.com/wp-content/uploads/2013/10/Car-Rental-Trifold-Brochure-Template.jpg

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

http://www.uspy.ca/gps-tracking.php

TacticsThird Party Ad Car

• Targeted at students

• Strategy: Hourly rate of $ 5.50 travelling above 30km

• Tactics: Sponsor’s logo on vehicles

Source: http://www.cnn.com/2011/TRAVEL/08/03/rental.car.ads/

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.

http://www.keepcalm-o-matic.co.uk/p/keep-calm-and-get-rewarded-1/

Kill Bill

Target: Existing inactive customers

Strategy: Direct Mail marketing

Tactic:

Identify inactive customers

free pass for 20km to use within

next 3 months

http://www.theorange.co/blog/fantastic-kill-bill-volume-1-fan-art-by-gianmarco-magnani

Email Campaigning

Target: Frequent Customers

Tactics: 30% referral discount Once a month

http://www.techvibes.com/blog/canadian-justice-department-employees-fall-hard-for-phishing-scam-prompting-security-concerns-2014-06-25

Budget PlanTactics Cost of

tactic Number of contacts

Expected RR%

Expected# Sales

Cost/response

ROI %

Social Media

72000 150000 3.00% 2160 $33.33

Email Campaign

360000 150000 *1.5% 5400 $66.66

Direct Mail 420000 150000 0.30% 1260 $333.33

TOTAL CAMPAIGN

852000 8820 $96.60 8.69%

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 = $1764000• COG is 8820 x $95 = $837900• ROI = Profit – Cost of campaign = (1764000 –

837900) - 852000 = 8.69%• Cost of campaign 852000

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

Bibliography1. http://autoshare.com Autoshare company website

2. http://www.thegridto.com. Kim Hughes, May 13, 2014

3. https://www.car2go.com Car2Go company website