Industry Analysis GROUP D: BYRON CARBAJAL JENNY PARK NANCY FELIX FABIOLA PEREZ

Business Idea

•WHO ARE WE?•“D”-Lightful Designated Drivers Service

•WHO IS THIS SERVICE INTENDED FOR? (PTA)•25-34 crowd•High income market segment•Night Club/ Bars

•WHY THIS

INDUSTRY?•Alcohol related accidents/fatalities •Safer streets

•Limited benefits to taxi cabs•Innovating •Beneficial to society & customer

Industry Revenues (2007) Industry Revenues (2007)NAICScode

Description

Establishments'

Revenue ($1,000)

Paidemployees

4853 Taxi & limousine service

7,0705,861,09

1 74,359

485310 Taxi Service 2,830 1,828,088 32,534

Source: http://www.census.gov/econ/census07/data/industry/E4853.HTM

•Industry Growth Rate

• Firms competing in industry

Competition• 156 Listings • 120 Counties – 34

States

Source:

• Arizona• Maricopa• Pinal

• California • Los Angeles • Oakland • Orange• San Bernardino• San Diego• San Francisco

• Colorado• Denver

• D.C.• Washington

• Florida• Tampa Bay

• Georgia• Atlanta

• Louisiana • New Orleans

• Maryland• Baltimore

• Missouri• St. Louis http://www.drinkinganddriving.org/tools/services.html?gclid=CO-

z5LC8158CFQYXagodlCDUGQ

Consumers (2008)

% Pop, 18-24 yrs

% Pop, 25-34 yrs

% Go To Bars/Night

Clubs-4.00%

1.00%

6.00%

11.00%

16.00%

21.00%

26.00%

PasadenaWestwoodWest Hol-lywoodSanta Monica Beverly HillsLos Angeles

Distribution Channels

•BARS/NIGHT CLUBS•brochures, business cards, referrals •Partnerships

•DIRECT•Website (create accounts)•College Campuses

•OUR SALES FORCE•Street Teams on location •Social Networks •Twitter Updates

•AGENTS•Our professional drivers on-site

How will we sell our services?

Closest Substitute and How our prices compare

Our Prices vs. Taxis

Us • $36 for the

first 10 miles– $3/mile

thereafter

TAXI CAB• $2.85 flag

drop• $2.70 per

mile• Drive Back

To Your Car In Morning– Double the

cost

Factors that Provoke Use

• Availability of Service • Brand Recognition

– Brand Image

• $ Consideration • Brand Awareness

– Who are you?

• Distrust – “Let you drive my

car!!”

• Reliable

Main Entry Barriers

• Consumer acceptance – Brand recognition

• Brand Awareness• High marketing costs• High capital costs• Insurance Companies• Training and skills• Unique technology and patents– Di Blasi folding Motorbike (Zingo Trans. Inc

owns distribution rights to sell in North America)

Porter’s FiveForces Model• Customers– Repeat – One way taxi service

is less expensive

• Threat of New Entrants– Stealth Competition– Penetrating Prices

• Suppliers – Dealerships– Bars/Clubs

• Substitute services – Taxis, Buses, Metro

etc

• Competitive Rivalry– Other DD’s for hire – Taxi/Limousine

Industry– Private Chauffeurs

Conclusion •WHY IS THIS AN ATTRACTIVE INDUSTRY FOR OUR START-UP?•Growing Market •Undefined Industry Leaders•Cost efficient marketing •Partnerships can add credibility •Breweries (drink responsibly campaign), LAPD, MADD organization

•Unmet need is pertinent•DUI related accidents continue to kill

•http://www.alcoholalert.com/deathclock.html

THANK YOU