ZIPCAR - Case Study Example

The ZipCar Not About Cars But Urban Life The Zipcar Not about Cars but Urban Life Zipcar specializes in renting out cars by hour or day and promotes the car sharing lifestyle among the consumers. The company represents a profitable car-sharing business model by constant modification and improvement to meet customer demands since car sharing industry is full of uncertainty and high competitions. The CEO of the company Griffith says that the enterprise sells lifestyle, but not cars since it has a large fleet of different types of cars.

The most significant benefit of Zipcar is that it provides convenience for reducing car ownership, which may be a hurdle in a congested city. Zipcar customers concentrate on driving a car of choice and not owning the car. To gain Zipcar membership, a customer has to pay a $60 as an annual membership fee to receive a personal Zip card. The card helps in unlocking any of their vehicles within the urban areas, globally. Bookings are online within minutes or months depending on how urgent the customer needs the car.

After the reservation, the customer chooses the car he wants and drives to the destination of his choice for $7.50 an hour including gas and insurance. Whenever the client gets ready, he picks a car of his or her choice from the parking lot, and after he is through he returns the vehicle at the same parking (Calder &Tybout, 2010). Zipcar Company deals with the car cleaning and maintenance and eliminates the hassle of urban car ownership. The process of car sharing is cost efficient in that it saves money by reducing expenses saving $600 a month on car payments, insurance .

gas, maintenance, and other ownership costs. Zipcar operating systems is intricately in line with the urban lifestyles and has the latest models of cars the urbanites love. The fleet is in good conditions and fuel-efficient like Toyota, Honda CRVs, MINIs, Volvos S60s, and BMW 382s.The Company has the latest models like Toyota Siennas and Subaru Outback. The company creates names and profiles for the cars and makes sure that customers do not have to waste much time before reaching a car pod along the streets.

Marketing Segmentation Market segmentation is the identification of various partitions of the market that are unique to the others. The segmentation process enables the company complies with the needs of its immediate customers. The marketing concept requires the knowledge of the clients and the gratification of their requirements better than the competition. Customers have numerous requirements that are not easy to gratify all consumers by performing equality. Mass marketing is the solution to dealing with a chain of customers by giving them giving equal treatment at the same time.

Segmentation as pertaining to the case, Zipcar provides its service to everyone from the college level to high corporate officials without any discrimination. The company has many car models, and the customers are always free to take a car of their choice so long as he is a registered member of zip car. The company has a variety of customer’s level to serve treating all them in the same manner without bias. The cars sharing is among many people from different classes, economic, religious, and political backgrounds, but they are treated the same with no discrimination.

The company launched several local “Low Car Diet” events in which it asked the urban residents to join them in order to receive their services. The Marketing Ethics /Corporate Social Responsibility Marketing principles and the corporate social responsibility is the continuing commitment by business to behave ethically and contribute to financial stability while shaping the quality of life in society. It is the process used to describe what people view as the company obligation to be aware of the requirements of all the associates in the business operations.

The Zipcar Company applies the use of marketing ethics and corporate social responsibility by making the lives of people in the society easier. Making them save up to 600 dollars by providing affordable transport solutions within the urban areas. IT has lead to economic improvement and equality to within the society. The future of the company is bright and headed for a substantial growth because of the expansion of the customers base because of perfect services offered by the Zipcar fraternity.

There is gradual dependence on the provided by the Zipcar because of the reliability and convenience showing the prospects of the company’s expansion. It too has a well-organized management like the CEO Griffith whom ensure the quality services to customers bridging the customer- business relationship (Dresbeck, 2011). The major concept derived from this point of view is the creation of the spirit of sharing inculcated in the society by the Zipcar Company. The idea leads to economic enhancements through cost reduction while providing the environmental friendly and quality services to the clients.

The sharing culture has also helped improve the power sector by moderation of power through the rationing that spreads electricity to some deprived areas because of congestions. The act maintains the equal distribution public resources to the society. References Dresbeck, R. (2011). Cheap Bastards Guide to Portland, Oregon: Secrets of Living the Good Life for Less.

Lanham: Globe Pequot Press. Tybout, A. M., Calder, B. J., & J.L. (2010). Kellogg on Marketing. Hoboken, N.J: Wiley. Zip Car. (2015). What’s zipcar?. Retrieved February 13, 2015 from http://www.zipcar.com/