Zipcar’s initiative to provide cheap, reliable, and affordable carpooling services without necessarily owning cars is the newest invention that has transformed both public and private transport in urban centers. The firm needs to work on its marketing ethics and branding strategies, though. The next two decades will see this firm become one of the world’s leading carpooling companies owing to its appropriateness, especially in the urban areas. The most important lesson that this company offers is that people do not necessarily need to own cars to enjoy the driving experience.
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Scott Griffith, the CEO of Zipcar, the world’s largest car-share company presented an in-depth analysis of how this company has tried to solve the problems of corporate ethic and the branding approach, as well as continue to expand to new markets and register new members within a short span after its launch. Zipcar’s journey, achievements, marketing strategy, and future are discussed in the discussion below.
The origin of Zipcar has a close connection to other carpooling services and companies. However, Zipcar intends to ensure that the living standards of populations, especially urban dwellers, should be improved. Zipcar became a car rental company that was about not just owning cars but also providing the driving experience to members. Fulfilling consumer needs by providing reliable and convenient rides to urban dwellers became the second pillar that drove this company to success. Fostering the brand community by creating an urban and environmentally conscious lifestyle has become an identity of this company (Hirsch, 2012).
Two Marketing Concepts Relevant to the Case
The significance of marketing ethics can hardly be underrated. It is crucial to make sure that the product advertised to the target audience meets the existing standards and requirements, therefore, posing no threat to its users. Moreover, the marketing tools adopted must prevent the customers’ data disclosure to any third party.
Seeing that the entrepreneurship has not yet defined the strategy that will provide complete safety of the customers’ personal information, Zipcar’s entrance into the global economy can be viewed as ethically questioning (Pride & Ferrell, 2015).
Seeing that the current dent in the generally strong marketing strategy may jeopardize the customers’ wellbeing, it may become the foundation for the future legal repercussions. Therefore, the information system used in the firm must be updated.
Branding and product management
This trick enables consumers to identify with the company and believe that it is committed to providing what is good and resonates with their lifestyles. Particularly, its orientation is based on the urban and environmentally conscious lifestyle.
The CEO argues that the company informs, educates, and encourages its members and potential clients to make informed decisions by embracing its services (Keegan, 2009).
By developing an efficient branding strategy and creating the premises for targeting a larger audience, the company is likely to establish a strong presence in the target market. As a result, further growth of Zipcar is expected (Patel, 2009).
Analysis of the Firm’s Future
In light of the recent rapid growth of entrepreneurship, one may suggest that the company is likely to face a range of opportunities in the environment of the global economy. Particularly, the company may have a chance at expanding even further given the fact that it has recently been acquired by a more influential organization and carried out a merger with Fixedcars (Clifford, 2008). Seeing that entrepreneurship may target a larger audience, it will be reasonable to assume that Zipster should consider the design of a new brand image and, more importantly, a brand product that will represent it in the target market in a more accurate way.
Additionally, instead of the traditional approach of appealing to an average customer, Zipster should view the concept of segmentation as a necessity and the primary course of its further evolution. Particularly, the segmentation based on the customers’ annual income (e.g., $10,000-$20,000, $20,000-$30,000, etc.), the purposes of car renting (e.g., recreation, work-related trips, etc.), and other typologies should be considered. Consequently, customer loyalty rates are going to increase rapidly.
Since the company is already viewed as a major threat to the wellbeing of other organizations operating in the area, the competition rates are going to be very stiff. To address the issue above, Zipster should view different strategies for improving the quality of the services. For instance, the use of the Six Sigma approach, the concept of Lean Management, and the use of the TQM approach as the means of enhancing the quality of the service provision process (Kell, 2013).
Most Important Lesson/Concept
Although the connection between a nursing facility and a car rental service might seem somewhat farfetched, the information represented in the case under analysis has shed some light on my future career. Particularly, I have learned that the adoption of a quality management approach that will serve as the tool for maintaining the services efficient and relevant is a crucial aspect of operating in the global economy. In other words, I will need to apply the TQM strategy to maintain the level of my expertise in nursing high.
Zipcar’s innovation adds value and vigor to the fight against environmental pollution and the desire to conquer the hassles of urban lifestyles. Griffiths and other like-minded individuals behind Zipcar’s success will leave a legacy that will impart relevant knowledge of individuals who are interested in conserving the environment and living a meaningful urban lifestyle. The future of Zipcar seems brighter as nations continue to seek ways of conserving the environment, ending congestion in urban lifestyles, and improving the standards of their citizens’ lives.
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Clifford, S. (2008).How fast can this thing go, anyway? Web.
Hirsch, J. (2012). Zipcar CEO talks about car sharing as lifestyle choice. The Seattle Times. Web.
Keegan, P. (2009). Zipcar – The best new idea in business. Fortune. Web.
Kell, J. (2013). Avis to buy car-sharing service Zipcar. The Wall-Street Journal. Web.
Patel, K. (2009). Zipcar: an America’s hottest brands case study. Web.
Pride, W. M., & Ferrell, O. C. (2015). Marketing 2016. Boston, MA: Cengage Learning.