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KOCHI
EXPANSION STRATEGY
Team: Blade Runners
Abdullah Saghir Ahmad
Mohammed Shoaib Javeed
NMIMS, Bangalore
2
Zoomcar owns a fleet, which makes it an
asset-heavy model that requires plenty of
capital, slowing growth.
Launch ZAP
OUR RECOMMENDATION
Crowdsourcing through Zoomcar Associate
Program (ZAP) will help Zoomcar add
vehicles to its fleet without having to
purchase more cars and without the hassle
of maintenance and storage. It will also help
them balance demand and supply.
WHY KOCHI ?
Tourist
Destinations
in and
around Kochi
Established
IT/ITES industry
with young crowd
having disposable
income
Presence of
Zoomcar will
enable it to
introduce ZAP w/o
having to build it
from scratch
3
DRIVERS FOR SEGMENTATION
▰ Many people in Kochi would have a second car available to be leased as a part
of the ZAP program
▰ There are many families where the car owner is working abroad and the car is
maintained just for their own use during 1/2month(s) of vacation. This pool
must be readily available for lease. These cars can be pooled for about 10
months from Kochi and many cities/towns in Kerala
▰ People like to have different vehicles for different occasions (A small car to go
to work but a large one while going out with extended family)
▰ Some youth like driving variety of cars
▰ There are many who don't need a car for every day use but need it
occasionally (College students/working bachelors)
▰ Many people prefer not to have an unknown driver with them, especially while
they travel with family and friends
▰ Bus/rail connectivity of Kochi with cities like Bangalore, Chennai, Mysore is
not great especially during rainy season
▰ With many tourist spots in and around the city, many people
would like to self-drive
4
Youth
living
away from
home
Tourists
Executives
and
Corporates
Urban
dwellers
who do not
want to
own a car
END USER
FOR ZAPSEGMENTATION
Who have more
than one or more
vehicles that is not
being used
regularly
Who want to buy a
car but are
hesitant to spend
Potential
Car
Buyers
Lessors
ZAP ASSOCIATES
5
END USERS
TARGETING
ZAP ASSOCIATES
Tourists travelling to
and from Kochi (3.2
Million in 2015)1. Often,
it’s their first time in the
city, so, it is a great
possibility of loyalty
creation which eventually
leads to creation of a
positive buzz.
Tourists
Small segment.
Business customers
“tell” references
leading to future
contracts. Often
companies rent a
significant number of
vehicles (corporate
contracts).
Corporates
They use the
vehicle on a temporary
basis. They often demand a
low price and recommend
the company to friends and
family if they are happy
with the service.
Youth
Lessors
Potential
BuyersA guaranteed money-maker
that utilizes the idle capacity of
their vehicle(s). They choose when
they want to drive the car and when
they want to share it. CADABRA lets
them track their vehicle’s health
while it is away from them.
Enabling people to buy
their dream vehicle and
letting the vehicle not only pay for
itself but also generate income.
1 Source: Kerala Tourism
6
COMPETITIVE ANALYSIS
Parameter Zoomcar
Cochin Car
Rentals
AVS Cars
Rate for 1 day rental INR 2280 INR 1600 + Taxes INR 1080 + Taxes
Free Fuel Yes No No
Payment methods
Digital Wallets/ Online/
Card/Cash
Cash/Online Cash
Ease of booking
(1-Bad 5-Excellent)
5 3 2
Website/app Evaluation
(1-Bad 5-Excellent)
5 3 2
IoT platform Yes No No
Insurance coverage Yes Not specified Not specified
Combo Offers No Yes No
Own fleet Yes Yes Yes
Aggregated fleet Suggested to launch No No
Presence National Local Local
*Data based on our primary research. The competitors are highly localized.
7
ZAP
EXPANSION STRATEGY
▰ City level promotions (billboards,
events, local newspapers)
▰ Personal selling for ZAP (meeting
with potential lessors)
▰ Targeted online advertising
(target expats at their current
locations)
PROMOTIONS
▰ Total population of Kerala = 33.4 Million1
▰ Total population of Kochi City = 0.63 Million2
▰ NRIs from Kerala = 1.63 Million3
▰ Estimated NRIs from Kochi = 36 Thousand
▰ Estimated number of personal cars in Kochi =
50 Thousand (Calculated from vehicular data provided
by MDA, Kerala with year-on-year increase approximated at
5% which in-turn is calculated by using the available data
from 2012, 2014 and 2016)
▰ Estimated lessor market (NRIs only) = 1200 Cars
(Assuming 40% of the NRIs own leasable cars)
Note: This is an estimate for the NRIs from Kerala. If we factor
in the domestic residents who would be willing to lease their
cars, the market size would be much bigger.
1 http://www.census2011.co.in/census/state/kerala.html
2 http://www.census2011.co.in/census/city/459-kochi.html
3 http://www.newindianexpress.com/states/kerala/2017/apr/25/nri-deposits-in-kerala-see-growth-in-time-of-depression-
1597345.html
Launch ZAP &
promotional
activities
Jan
2018
Add 10% of the potential
cars in Zoomcar’s fleet and
promote the self-driving
model aggressively
Apr
2018
Add 25% of the potential
cars in Zoomcar’s fleet
and attempt further
expansion
Oct
2018
THANK YOU
8

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Expansion Strategy of Zoom Car in a Tier 2 City

  • 1. KOCHI EXPANSION STRATEGY Team: Blade Runners Abdullah Saghir Ahmad Mohammed Shoaib Javeed NMIMS, Bangalore
  • 2. 2 Zoomcar owns a fleet, which makes it an asset-heavy model that requires plenty of capital, slowing growth. Launch ZAP OUR RECOMMENDATION Crowdsourcing through Zoomcar Associate Program (ZAP) will help Zoomcar add vehicles to its fleet without having to purchase more cars and without the hassle of maintenance and storage. It will also help them balance demand and supply. WHY KOCHI ? Tourist Destinations in and around Kochi Established IT/ITES industry with young crowd having disposable income Presence of Zoomcar will enable it to introduce ZAP w/o having to build it from scratch
  • 3. 3 DRIVERS FOR SEGMENTATION ▰ Many people in Kochi would have a second car available to be leased as a part of the ZAP program ▰ There are many families where the car owner is working abroad and the car is maintained just for their own use during 1/2month(s) of vacation. This pool must be readily available for lease. These cars can be pooled for about 10 months from Kochi and many cities/towns in Kerala ▰ People like to have different vehicles for different occasions (A small car to go to work but a large one while going out with extended family) ▰ Some youth like driving variety of cars ▰ There are many who don't need a car for every day use but need it occasionally (College students/working bachelors) ▰ Many people prefer not to have an unknown driver with them, especially while they travel with family and friends ▰ Bus/rail connectivity of Kochi with cities like Bangalore, Chennai, Mysore is not great especially during rainy season ▰ With many tourist spots in and around the city, many people would like to self-drive
  • 4. 4 Youth living away from home Tourists Executives and Corporates Urban dwellers who do not want to own a car END USER FOR ZAPSEGMENTATION Who have more than one or more vehicles that is not being used regularly Who want to buy a car but are hesitant to spend Potential Car Buyers Lessors
  • 5. ZAP ASSOCIATES 5 END USERS TARGETING ZAP ASSOCIATES Tourists travelling to and from Kochi (3.2 Million in 2015)1. Often, it’s their first time in the city, so, it is a great possibility of loyalty creation which eventually leads to creation of a positive buzz. Tourists Small segment. Business customers “tell” references leading to future contracts. Often companies rent a significant number of vehicles (corporate contracts). Corporates They use the vehicle on a temporary basis. They often demand a low price and recommend the company to friends and family if they are happy with the service. Youth Lessors Potential BuyersA guaranteed money-maker that utilizes the idle capacity of their vehicle(s). They choose when they want to drive the car and when they want to share it. CADABRA lets them track their vehicle’s health while it is away from them. Enabling people to buy their dream vehicle and letting the vehicle not only pay for itself but also generate income. 1 Source: Kerala Tourism
  • 6. 6 COMPETITIVE ANALYSIS Parameter Zoomcar Cochin Car Rentals AVS Cars Rate for 1 day rental INR 2280 INR 1600 + Taxes INR 1080 + Taxes Free Fuel Yes No No Payment methods Digital Wallets/ Online/ Card/Cash Cash/Online Cash Ease of booking (1-Bad 5-Excellent) 5 3 2 Website/app Evaluation (1-Bad 5-Excellent) 5 3 2 IoT platform Yes No No Insurance coverage Yes Not specified Not specified Combo Offers No Yes No Own fleet Yes Yes Yes Aggregated fleet Suggested to launch No No Presence National Local Local *Data based on our primary research. The competitors are highly localized.
  • 7. 7 ZAP EXPANSION STRATEGY ▰ City level promotions (billboards, events, local newspapers) ▰ Personal selling for ZAP (meeting with potential lessors) ▰ Targeted online advertising (target expats at their current locations) PROMOTIONS ▰ Total population of Kerala = 33.4 Million1 ▰ Total population of Kochi City = 0.63 Million2 ▰ NRIs from Kerala = 1.63 Million3 ▰ Estimated NRIs from Kochi = 36 Thousand ▰ Estimated number of personal cars in Kochi = 50 Thousand (Calculated from vehicular data provided by MDA, Kerala with year-on-year increase approximated at 5% which in-turn is calculated by using the available data from 2012, 2014 and 2016) ▰ Estimated lessor market (NRIs only) = 1200 Cars (Assuming 40% of the NRIs own leasable cars) Note: This is an estimate for the NRIs from Kerala. If we factor in the domestic residents who would be willing to lease their cars, the market size would be much bigger. 1 http://www.census2011.co.in/census/state/kerala.html 2 http://www.census2011.co.in/census/city/459-kochi.html 3 http://www.newindianexpress.com/states/kerala/2017/apr/25/nri-deposits-in-kerala-see-growth-in-time-of-depression- 1597345.html Launch ZAP & promotional activities Jan 2018 Add 10% of the potential cars in Zoomcar’s fleet and promote the self-driving model aggressively Apr 2018 Add 25% of the potential cars in Zoomcar’s fleet and attempt further expansion Oct 2018