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Smart Advertising. I-GO Presentation Boston Consulting Group Case Competition May 2011. Vincent Yu, Geoffrey Zheng & Mike Zhang. What are your “pain points” as a carsharing service?. Differentiating specific appeals for specific market segments.

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Smart advertising

Smart Advertising

I-GO Presentation

Boston Consulting Group Case Competition

May 2011

Vincent Yu, Geoffrey Zheng & Mike Zhang


What are your pain points as a carsharing service

What are your “pain points” as a carsharing service?

Differentiating specific appeals for specific market segments

Leveraging network of current car-sharers to spread word-of-mouth

Balancing cost with new improvements to service


Smart advertising1

Smart Advertising

  • Target advertising based on preferences

    • Cost

    • Car-Sharing Affinity

    • Mixture of Both

  • Create tiers based on preferences: Franklin, Clinton & Gore Sector

  • Develop Market strategy based on tiers


Smart advertising

Franklin Sector

  • Low Income: $7,000-22,000 per annum household income

    • Only 13% of current car-sharing market

  • Overcome car culture

  • Lower half of sector spends 42% of income on ownership

  • Focus on cost savings

    • Correlation between income and number of vehicle miles driven


  • Smart advertising

    Franklin Sector

    • Low Income: $7,000-22,000 per annum household income

      • Only 13% of current car-sharing market

    • Overcome car culture

    • Lower half of sector spends 42% of income on ownership

  • Focus on cost savings

    • Correlation between income and number of vehicle miles driven

  • Humboldt Park


    Smart advertising

    Gore Sector

    • Extremely Young: 25-54% of residences from 20-35

      • 49% more likely to support green business

      • 60% of market under 35 years old

      • 70% willing to pay cost premiums for causes


    Smart advertising

    Gore Sector

    • Extremely Young: 25-54% of residences from 20-35

    • Highly-Educated: 35% and above with higher education

      • 66% of carsharing market has higher education


    Smart advertising

    Gore Sector

    • Extremely Young: 25-54% of residences from 20-35

    • Highly-Educated: 35% above with higher education

      • High Income: $52,000-69,000 per annum household income

      • Green-Focused

        • Green edge over Zipcar

        • Local Business


    Smart advertising

    Gore Sector

    • Extremely Young: 25-54% of residences from 20-35

    • Highly-Educated: 35% above with higher education

      • High Income: $52,000-69,000 per annum household income

      • Green-Focused

        • Green edge over Zipcar

        • Local Business

    Lake View


    Smart advertising

    Clinton Sector

    • Highly-Educated: 35% above with higher education

      • Middle Income: $39,000-52,000 per annum household income

      • Model Consumer

        • Cost advantage

        • Environment commitment

        • Better customer service


    Smart advertising

    Clinton Sector

    • Highly-Educated: 35% above with higher education

      • Middle Income: $39,000-52,000 per annum household income

      • Model Consumer

        • Cost advantage

        • Environment commitment

        • Better customer service

    Near West Side


    Marketing segments

    Marketing Segments

    • Low Third-Tier-Yield-to-Cost ratio

    • Second-Tier Untapped Growth Potential

    • Unrecognized coverage potential

    Strategies

    Franklin Sector:

    Capture the low-income market

    • Cost-Savings Focus

    • $5,000 average savings on car

    • “Best parts of driving, for less”

    Gore Sector:

    Challenge for environmental activists; product differentiation

    • Environmental Focus

    • Low emission vehicles

    • More green, more local than Zipcar

    Clinton Sector:

    Challenge for model customers; product differentiation and cost leadership

    • Hybrid Focus

    • Cost edge over Zipcar

    • Environmental Edge over Zipcar


    Leveraging networking word of mouth systems

    Leveraging Networking: Word of Mouth Systems

    • Compensation-Based Referral Systems

      • Reward Users for referring new IGO users

      • 25-35% word-of-mouth consumers

      • Create exposure in neighborhoods

        • Overcome Car Culture

        • 70% prefer customer views over critics/professional reviews

        • 82% prefer customer views over all else

    • Average 15-30% Increase in Sales/Revenue

      • 40% of WOM customers have brand loyalty


    Leveraging networking social networks

    Leveraging Networking: Social Networks

    • Facebook groups for each neighborhood and each college

      • Pareto Principle: 80/20 rule

      • Use Sectors to focus information

    • 43% of 20-39 year olds use Facebook 10+ hours weekly

      • 81% of marketers indicated significant exposure

      • 29% Increase in Sales from Online Advertising

      • Same Effects as Traditional Word of Mouth Systems


    Leveraging networking model

    Leveraging Networking: Model

    • 40% Growth over 10 Weeks

    • Committed brand loyalty


    New technology implementations smartphone app

    New Technology Implementations: Smartphone App

    • Low cost improvement to service

      • Estimated $1000 cost to implement

    • Increase Exposure of I-GO

    • Estimated to benefit 60% of members

      • Mobile reservations

      • GPS locations of parking lots


    Conclusion first steps

    Conclusion: First Steps

    • Target Advertisements Based on Sectors

    • Leverage Social Networking

      • Create Facebook group for each neighborhood/college campus

      • Create referral-based system


    Yu i zheng i zhang

    YU I ZHENG I ZHANG


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