First presentation done at Suffolk University presenting on how ZipCar can expand their business and reach more college age customers.

1. +
Sawyer Business School
Honors Business Foundations
29 November 2012
Kara McCormack
Andrea Ravikumar
Stephen Stanton
Lauren Van Abel
Kevin Yong

2. +
The Beginnings of Zipcar
 Antje Danielson was impressed by Berlin’s car-sharing system
 Supervisor of Harvard University's undergraduate energy policy
research
 Danielson sought help from Robin Chase to create a car-sharing
start-up on the East Coast
 Chase received an MBA from MIT, joined a private school of director
of finances, served as interim director of John Snow’s international
division, and became the managing editor of Public Health Reports

3. +
Market Overview Without Cool Title
 North American car-sharing enterprises
 CommunAuto (Canada)
 Car-Sharing Inc. (Portland)
 Flexcar (Seattle)
 Car Manufacturers
 Volzwagon
 European Car-Sharing Enterprises
 Swiss Mobility
 Carsharing
 Drive Stadtauto
 Car Rental Companies
 Hertz
 Avis

4. +  Danielson’s Responsibilities within the Company:
 Worked during free nights and on the weekend
 Form relationships within the automobile industry
 Selecting in-car technologies
 Negotiating initial car purchases
 Evaluating environmental issues affecting the company
 Editing Chase’s drafted documents
 Chase’s Responsibilities within the Company:
 Full-time Work
 Streamline concept
 Perform research related to the car-sharing market
 Develop a business plan
 Design and contribute to Zipcar’s Web site
 Fashion the company’s online reservation system
 Chase sought the advice of Glenn Urban, a former dean of
MIT’s Sloan School of Management

5. +
Original Business Plan
 Projected car-sharing to be popular in urban
environments and amongst college-educated, tech-savvy
individuals
 Focused on covering Zipcar’s cost of goods sold (COGS)
and then covering overhead
 Original Pricing Model
 $25 non-refundable application fee
 $300 fully refundable security deposit
 $300 annual subscription fee
 $1.50 per hour
 $0.40 per mile

6. +
The Incorporation of Zipcar: 2000
 Chase and Danielson agreed to share equal equity of
Zipcar
 Used a $50,000 convertible loan from one of Chase’s
former MIT classmates to develop Zipcar’s technology
platform
 MIT engineer Paul Covell wrote the software for
“Zipcards” that have the ability to authorize car users
and track odometer readings, mileage, and time stamps
 Patented
 Used a $25,000 convertible loan from an unrelated
investor to purchase Zipcar’s first vehicles

7. +
Cutting Costs to Survive
Relied on low-budget marketing strategies
Word of Mouth
Limited public relations
Guerilla marketing efforts
Believed the Web would serve as a major
interface between Zipcar and its clients

8. +
Expansion Efforts
 Chase and Danielson hire, and later cut ties with, a “big-company
guy” who was to serve as Zipcar’s president and
bring credibility to the company
 June 22, 2000: Zipcar introduces its first three vehicles to the
streets of Boston
 Boston was chosen as Zipcar’s testing ground because it had
limited street parking and a large population of college-educated,
Web-savvy inhabitants
 October 2000: Zipcar has grown to include 19 vehicles and 250
patrons
 Zipcar raised, and consequently spent, and additional
$375,000
 Lacked the equity capital to truly grow

9. +
Zipcar Stakeholders
Zipcar
Brand
Robin Chase
and Family
Antje
Danielson
and Family
Chase’s
Former MIT
classmate
($50,000)
Prospective
Investor
($25,000)
Group of
Unnamed
Investors
($300,000)
Former MIT
Dean Glenn
Urban
Zipcar
Member and
Clients
Zipcar
Employees

10. +
Springboard 2000 New England
 The duo was looking to secure an additional $1.3 million to truly
prove and expand upon Boston’s viability as a market of the
car-sharing industry
 Chase and Danielson have an opportunity to pitch their Zipcar
idea to venture capitalists at the Springboard 2000 New
England forum

11. +
Crunching the Numbers

12. +
Poor Planning Lead Zipcar to
Prematurely Enter the Market
Chase and Danielson have never run a start-up
before
Technology platform was not ready to be
launched
Adequate funds had not yet been secured
Lacked sufficient marketing strategy
Too limited target audience
Too eager to expand

13. +
Alternative 1
Adjusting Financing
Re-revise pricing strategy
Realize maximum budget
Work to more efficiently cover Cost of
Goods Sold (COGS)
Re-evaluate fleet size after initial leases
expire

14. +
Alternative 2
Marketing to Increase Sales
Seek help from a marketing team to create
more professional advertising scheme
Promote Zipcar on college campuses around
Boston
Buy advertising space on public
transportation
Create a user incentive program

15. +
Alternative 3
Gaining Investor Trust
 Emphasize Zipcar’s immediate popularity in its test market
 Work to demonstrate Zipcar’s viability in Boston before
expanding
 Increase usage in primary market
 Provide investors with research to prove Zipcar has future
ability to grow nationally
 Focus Zipcar’s ability to work with a limited budget
 Regulate balance of power between Chase and Danielson
 Look to hire an additional top-level manager

16. +
Marketing to Increase Sales

17. +
Talk the Talk, Zip the Car:
Putting Marketing into Action
 Hire a marketing team and advisors to design new marketing tactics
 Informational brochures
 Test new marketing techniques on beta test groups
 Advertisements targeting specific market(s)
 Present Zipcar to college students in the Boston area
 Buy advertising space in the “T” and on public transportation vehicles
(taxis, busses)
 250 million people a year
 Introduce Zipcard Points system (incentive program)
 Have QR (Quick Read codes) on Zipcar postcards and brochures
 Make Zipcar reservations available by phone

19. +
Making the New Plan Known
 Present new marketing ideas to Robin Chase, Antje
Danielson, and other stakeholders
 Zipcar Headquarters in Cambridge, MA
 Create a professional presentation for the
Springboard 2000 New England conference
 Include market research
 Introduce innovative marketing ideas
 Use PowerPoint and physical visual aides