ZipCar Media Plan.docx

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Media Plan created for Principles of Advertising class.

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Katie Stevenson 203-Intro to Media Advertising

Business Commuters as a Target Group for Zipcar Target Segment Summary Target’s Psychographic Summary  Commuter  Money-conscious  Time-crunched  Educated  Current in technology  Smart-phone user  Environment-friendly  Hard-working Target’s Demographic Summary    Gender: Male or Female Marital status: Married with one car, or single Age Range: 25-40

Target’s Geographic Summary    Client Description Company Overview: Zipcar is an American car-sharing company with locations in the United States, Canada, and the UK. Zipcar was founded in Cambridge, Massachusetts. Since it was founded in 2000, Zipcar has grown to a network of more than 8,000 vehicles in 14 metropolitan areas and on more than 230 college campuses, mostly in the United States but also in Canada and Europe (the company has grown in part through acquisitions of the competitors Flexcar, Avancar and Streetcar) (Zip Car, Inc., 2011). Metro Priority No. 1: New York City Metro Priority No. 2: Washington D.C. Metro Priority No. 3: Seattle

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Zipcar CEO Scott Griffith says that as car sharing enters the mass market, the original Zipster demographic -- young, college-educated, higher-income, environmentally conscious, techno-savvy Facebook and Twitter users -- is gradually becoming older and more reflective of the national average. "I've been surprised to see good growth among empty-nesters," he says. "People who moved back into the city after raising kids and are now dumping their cars (Keegan, 2009). According to the company website, www.zipcar.com, Zipcars cater to individuals who do not own cars, but need them sometimes. Everyone from business commuters to college students are able to use Zipcar. How Zipcar system works: The first step in becoming a Zipcar member is applying online. According to www.zipcar.com, to be eligible you must be at least 21 years old (or 18 years old and affiliated with certain Zipcar partner universities). An applicant must have a valid driver’s license for at least one year. In order to meet the qualifications, a person must have a clean driving record, with no major violations in the past three years and no alcohol or drug violations in the past seven. If an applicant is under 21 years old, they cannot have any moving violations or alcohol or drug violations. After becoming a Zipcar member you pay an annual fee of $60 dollars along with daily or hourly rates when you are using the cars. Gas, insurance, and 180 free miles are included in the Zipcar membership. When you need a car, all you have to do is reserve a car online at a specific time. At the appointed hour, you approach your Zipcar, which has been notified wirelessly of your arrival. You wave your Zipcard in front of a reader inside the windshield and are pleased to be recognized. The car unlocks. Then you drive. When you’re done, you return your car to the place you found it. A few hours later, you get a friendly e-mail message regarding your journey. It links you to a statement of charges

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that have been applied to your credit card. (Zip Car, Inc., 2011). According to www.zipcar.com, Zipcar for Business offers discounted rates for weekday business travel, as well as easy group or individual billing. Once a business has a Zipcar account, it is very easy to add or remove individual employees from the account. Zipcar’s main competitors are car rental companies such as Hertz or Avis. Unlike Zipcar, rental agencies ask consumers to travel long distances to a centralized hub, stand in line, fill out paperwork, pay only by the day or week, and shell out for insurance, gas, and often mileage charges. They give you the keys to whatever generic car happens to be available that day. (Keegan, 2009). CEO Scott Griffith argues that car owners are Zipcar’s real competition. Owning a car is costly. After paying a car payment, finance charges, licensing fees, maintenance fees, taxes, gas, insurance, and parking fees, car ownership proves to be much more expensive than being a Zipcar member. Potential Targets: Business Professionals- Business professionals are beginning to use Zipcar instead of costly car rental. Employees no longer have to go through the long tedious routine for renting a car for unplanned business meetings or sales calls. Zipcars are faster than buses or other public transit, and much cheaper than car rentals and taxis. Individuals can set up personal accounts on Zipcar’s website and have access to thousands of cars around the United States. Zipcar services are very convenient for business commuters. What if you need a car in a hurry, and don’t have time to wait for the bus or a taxi? Zipcar targets those who work in large cities and use public transit to get to and from their job. After setting up an account on Zipcar’s website the weary business commuter can breathe a sigh of relief. With thousands of cars just a click away, it is very fast and easy to reserve

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a car for those moments when public transit just won’t cut it. Businesses can also set up accounts through Zipcar for their employees to use while on the clock or for company business. The hourly rentals, with gas, insurance and parking included, can also help businesses bolster their green credentials by offering hybrids as well as electric plug-in cars (Olsen, 2010). College Students- Parents no longer need to worry about leaving their kids at college without a car. At dozens of universities, Zipcar offers students cars for trips around town, to the grocery store, and other infrequent trips. As for insuring all those young adults, each member is screened in advance, so only "relatively good drivers" are accepted into such programs (McGee, 2010). Commuters-Zipcar offers its services to those who normally use public transit, but are in need of a car on infrequent occasions. Environmentalists-According to www.zipcar.com, each Zipcar shared takes at least 15 personally-owned vehicles off the road. Target Audience: Business Commuters Psychographic Elements of Target- Studies show than many people use public transportation to access a job, but begin ridesharing or driving a car once work is secured (Who Uses Public Transportation and Why, 2010). Also, people who make more money but don’t own a car will often use the public transit that is the fastest to get around with. The target group for Zipcar will want a mode of transportation that is fast and easy. They want something that will take the chaos out of their day, not add to it. The people who use Zipcar will be aware of the environmental advantages to the product. Zipcar's

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expansion was well-timed to ride the wave of environmental awareness sweeping the country, and by 2007 the company had launched in San Francisco, Chicago, Vancouver, Toronto, and London, and its membership had soared to some 120,000 (Keegan, 2009). The consumers will also be conscious of the money that they are saving by using Zipcar instead of owning a car. The average American spends 18% of his income on running a car that is usually stationary. If you are green or broke, as many people are these days, this seems wasteful. (Schumpeter, 2010). The target audience for this product will be very time-aware and will see that using Zipcar versus a car rental company or other public transit saves them a lot of time. Most of the target audience will be socially connected and aware of current trends in technology. The business commuters who use this product will not be stuck in their ways; they will be people who quickly adopt new ideas, because they will not be wary of trying Zipcar instead of the public transit that they have been used to using. The target audience for Zipcar will also be up to date with current technology. One of the main attractions of Zipcar is the easy and tech-savvy way of reserving a car and unlocking it with the swipe of a card or with the push of a button a smart-phone. The business commuters who use Zipcar to get to business meeting or sales calls will also be worried about their appearance and status and will use Zipcar to borrow a car that may elevate their status or put them in a different light for a client. “Today’s a BMW day,” purrs Zipcar, “Or is it a Volvo day?” (Schumpeter, 2010) Demographic Elements of Target- Since the targets are businesses commuters, the income level is probably upper middle class to upper class. The age for this target would be post-college graduate to middle age. The gender could be either male or female. The

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marital status could either be married with a single vehicle or single. The race and religion also do not really factor into the elements of the target. How Target Aligns with Zipcar Offerings- The target’s need for easy commuting aligns with Zipcar’s offering of cheap reliable transportation. Most commuters take mass transit to and from work, but sometimes they need a car during the day when they can’t wait for the next bus or train. Zipcar provides a fast and cheap alternative to public transit. It is much cheaper than a taxi, and much more convenient than a bus. Zipcar provides the business commuter with a reliable mode of transportation for the daily errands or the unexpected trips that need to be done during the day. The target will be busy and short on time and that aligns with Zipcar’s fast and easy reservation system and the ease of finding a ride with cars all over the city. The commuters will be conscious of their spending and this aligns with Zipcar’s cheap service. Geographic Choice Explanation Metro Area Priority No. 1: New York City New York City is the first metro area priority mainly because of the population. The more people the more prospective business. Also, since the target is business commuters, New York City is the perfect location. In New York City, especially in areas of Wall Street and Manhattan there are many businesses. Many of the employees of these businesses commute from other areas of New York City, and even from other states. In 2000, as many as 22 percent of working residents of Long Island, 19 percent of those in the lower Hudson Valley, and 11 percent of those in nearby northern New Jersey worked in Manhattan. The commuting trends reflect the economic relationships within the region:

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Manhattan has been the engine of growth for the entire metro area, claiming the highest concentration of jobs and most of the best-paying jobs in the region (McKay, 2005). Most of the business professionals would utilize public transportation to get to work and wouldn’t have a consistent and dependable way around the city during the day. Aligning Zipcar with the business commuters of New York City’s needs would bring in a substantial amount of customers. Metro Area Priority No. 2: Washington D.C. Washington D.C. is another city where many of its workers commute from other areas. Most of the workers in Washington D.C. are commuting from the Virginia or Maryland suburbs (Woolsey, 2008). Washington D.C. is ranked the country’s second best for commuter carpooling, public transportation and walking (Woolsey, 2008). Washington D.C.’s population swells during the day because of the abundance of business commuters. Among cities of a half million or more, Washington shows the largest net increase in daytime population. The stream of government and other workers that flows into Washington D.C. from all over northern Virginia and Maryland swells the District's population by 71.8 percent (Christie, 2005). Because of this swell in population during daytime hours it is a safe assumption to say that public transit and taxis are harder to find. Zipcar in Washington D.C. would align perfectly with business commuters and other potential customer’s needs. Metro Area Priority No. 3: Seattle Seattle is a rapidly growing city. City officials worry about the possible consequences of a larger population and more commuters. Three-quarters of Seattle-area commuters, or

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1.13 million people, drove to work alone last year, according to the Census Bureau. If Seattle's population grows as predicted, more than 25,000 extra parking spaces will be needed downtown in the next quarter century, said Steve Gerritson, executive director of Commuter Challenge, a Seattle-based non-profit and coalition member. "That just isn't going to happen. We don't have the space," he said. "We really have to make some effort here to get people out of their cars" (James, 2006). Many of the Seattle area businesses have begun to offer incentives to employees who use public transit instead of their own cars to get to work. Amgen, a Seattle based biotechnology firm offers its employees gift cards for not driving to work. Meanwhile, employees who drive pay $65 a month to park. As a result, two-thirds arrive at work via some method other than driving alone, and 10 percent ride bikes, says Jan Law, who works full time as Amgen's employee transportation coordinator (James, 2006). Zipcar is a perfect solution for business commuters who need a car during the day, but don’t have their own car at the office. Zipcar Media Plan Introduction: This media plan for Zipcar is on a 4-month schedule for the months of November, December, January and February. It is the goal of this plan to make Zipcar a household name and a recognized brand. In order to achieve these goals, this media plan maps out how to aggressively advertise not only the Zipcar product, but also the Zipcar name during the aforementioned intensive time period. Through spots in television, newspaper, magazines, radio and internet it is our mission to thoroughly advertise Zipcar as the premiere car sharing company. Media Type Priorities: The single, top priority media vehicle in this media plan is the internet. Although other media vehicles had more money spent on them, the internet is

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the media type that has the most choices and the most insertions. I chose this media type as my priority, because with the money constraints, I believed that I could attract the most viewers with banner ads and other internet advertisements. My secondary media priority was television. This is the media vehicle that I allotted the most money towards advertising. I believe television is a very efficient way to advertise, because with the combination of sight and sound a viewer is more likely to remember the product. Specific Media Choices: Magazine Choices: 1. Forbes Magazine- I chose Forbes Magazine has one of my magazine choices because of the content of the magazine. I believe that the content of the magazine aligns with the psychographic elements of my target. Forbes has sections about business, investing, entrepreneurs, leadership and affluent lifestyle. Business professionals are interested in all of these topics. 2. Business Week/Golf Digest combination- In the SRDS book there was a combination rate for Business Week and Golf Digest. I chose this combination firstly because it offered advertisements in two magazines for one price. Secondly, I chose these magazines because Business Week is a magazine that many business professionals read since the content relates to their work. Golf Digest is a magazine that aligns with the hobbies of my target’s demographic. Newspaper Choices:

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3. The Wall Street Journal- I chose The Wall Street Journal as one of my newspaper choices to advertise in because it has a very large audience of business professionals. It is both a regional and national newspaper, and many business professionals read it. 4. The New York Times- I chose this magazine for a lot of the same reasons that I chose the Wall Street Journal. New York business professionals read it for the news about their city and also about current national and global business trends. 5. The Seattle Post- the Seattle Post is the one of the main newspapers in Seattle. Advertising in the Post will attract the business professionals that read it. 6. The Washington Post- the Washington Post is another one of those magazines that could be considered local and national. Its business and political –related content aligns with the interest of business and political figures in Washington D.C. Radio Choices: 7. WBBR- This is a New York City news and talk show radio station. The content relates to my target’s interest in keeping up with current events and staying educated. The age range of 25-65 listed in the SRDS book also aligns with the demographic elements of the target audience. 8. WACA- I chose this station based out of Washington D.C. for the same reasons as I chose the previous station. This radio program is also a news and talk show based station.

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9. KBKS- This is an adult contemporary station in Seattle. It reaches many people in my target demographic audience and not widens the psychographic target because it is a station that mixes music and news Television Choices: 10. Mad Men- I chose to advertise during this television show for different reasons. First, it is one of very few scripted television shows that deals with business. The ratings for viewers in the 25-50 age range were high, and I believe that the content of this show coincides with the targets interests and hobbies. 11. Anderson Cooper 360- I chose to advertise during this show because it is a very popular current events and news show. Business professionals watch this show to stay on top of current events. Web Site Choices: 12. usatoday.com – I chose to advertise on this site because it is a very high traffic national news site. Many people, including business professionals frequent this site for news and business articles. 13. WSJ.com- I chose to advertise on this site along with in the newspaper so that the consumers who don’t read the paper will still see the advertisement on the website. 14. CNN.com- this is also a very popular news site that business professionals frequent.

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15. Washingtonpost.com- Just like the Wall Street Journal, I chose to advertise on this site so that the consumers in my target audience who choose to visit the website instead of read the newspaper will still see the advertisement. 16. Nydailynews.com-this is a website that caters especially to the New Yorkers. It is a regional newspaper and website, and doesn’t have as national news as the other New York newspapers. New York business people will go on this website to find out news about their city. 17. Seattletimes.nwsource.com- I chose to advertise on this site to go along with the advertisement in the newspaper. 18. Linkedin.com-this is a social website where business professionals connect. I chose to advertise on this website because many of my target audience will be on this site. 19. Nytimes.com-this choice is to go along with my choice to advertise in the New York Times newspaper. This is a national news organization that business professionals will frequently visit. 20. Msn.com- This is another national news website that I chose to advertise in. Also, this website has its own email server, so business professionals will come to this website to not only get news, but to also communicate with other people. 21. Seattlepost.com-this is a website for the newspaper that I also advertised in. It targets people from Seattle and business professional who want to stay current in news.

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22. Msnbc.com- this website is a lot like CNN and other news organization websites. I chose to advertise on this website to attract the attention of the business professionals that visit this site instead of the other ones that I have advertised in. 23. ABCnews.com- I advertised on this website for the same reasons as I advertised on the previous website. 24. Businessweek.com- I chose to advertise on this website because it is specifically targeted towards business professionals. 25. Bloomberg.com-I chose to advertise on this website because this is also a website targeted towards business professionals. This is where business professional come to find news about stock market and finance news. Google Keywords:  Car sharing- my target uses these keywords to find information on a form of car rental. Car sharing is different from car rental because once you are done with the car you just leave it in a designated location for the next customer.  Commuter services- my target would type in these keywords to find out the different services and ways to travel as a commuter.  Car/Auto rental- my target would type in these keywords when they needed a car for something that they couldn’t use public transit for.  One way car rental- this is a keyword search for the commuter that doesn’t have time to go through the hassle of returning a rented vehicle to the same location where they got it.

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Cheap commuting- this is a keyword search to find cheaper alternative ways to travel and commute around a city.



Car rental companies- this is a keyword search typed in to compare the benefits and services of different car rental companies to find the right match.

Media Plan Schedule: I have chosen to advertise in the four consecutive months of November, December, January and February. I chose these months to start an advertising campaign mainly because the weather in my priority cities during this time isn’t favorable for a commuter who is taking public transit. It is a very cold and wet time of year to have to wait in long lines at the bus stop or to stand outside to try to wave down a taxi. I think that the targets will try Zipcar during these months for comfort and efficiency. Justification of Money Spent: I am recommending that a total of $1,973,125.00 be spent on this campaign. It was very hard to try to find a variety of media vehicles while staying inside of the given price constraints, but I still managed to come up with what I think will be a successful advertising campaign. It would be very hard to spend less than the previously mentioned amount. If the amount was any lower than the campaign would not be as effective because the variety of media vehicles wouldn’t be as much and the target audience may not see the intended message.

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Bibliography
Who Uses Public Transportation and Why. (2010, May 8). Retrieved from One Stop Transit: http://www.onestoptransit.com/who-uses-public-transportation Zip Car, Inc. (2011, April 18). The New York Times. Retrieved from The New York Times: http://topics.nytimes.com/topics/news/business/companies/zipcar-inc/index.html Christie, L. (2005, October 21). Best Commuter Cities. Retrieved from CNN Money: http://money.cnn.com/2005/10/21/real_estate/buying_selling/daytime_population_cities/ James, A. (2006). Paid for not taking the car to work. Seattle PI. Keegan, P. (2009, August 27). Zipcar - The best new idea in business. CNN Money . Retrieved from CNN Money. McGee, B. (2010, February 2). Is car sharing or an hourly rental the solution for your next trip? USA TODAY. McKay, J. B. (2005). The Evolution of Commuting Patterns in the New York City Metro Area. Federal Reserve Bank of New York. Olsen, E. (2010, November 22). A Shift From Company Cars. The New York Times, p. B6. Schumpeter. (2010). The business of sharing. The Economist . Woolsey, M. (2008). 10 Worst Cities for Commuters. Forbes. Retrieved from Forbes: http://www.forbes.com/2008/04/24/cities-commute-fuel-forbeslifecx_mw_0424realestate3_slide_5.html?thisSpeed=undefined

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