Smart Advertising

YU I ZHENG I ZHANG 1|

Smart AdvertisingI-GO PresentationBoston Consulting Group Case CompetitionMay 2011

Vincent Yu, Geoffrey Zheng & Mike Zhang


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

Balancing cost with new improvements to service

Differentiating specific appeals for specific market segments

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


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


• 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

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

Franklin Sector

Humboldt Park


• 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

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

Gore Sector



• 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

Gore Sector




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

• Green-Focused• Green edge over Zipcar• Local Business

Gore Sector

Lake View



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

• Model Consumer• Cost advantage• Environment commitment• Better customer service

Clinton Sector



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

• Model Consumer• Cost advantage• Environment commitment• Better customer service

Clinton Sector

Near West Side


Marketing Segments

• Hybrid Focus• Cost edge over Zipcar• Environmental Edge over Zipcar

• Environmental Focus• Low emission vehicles• More green, more local than Zipcar

• Cost-Savings Focus• $5,000 average savings on car• “Best parts of driving, for less”

Strategies

Franklin Sector:Capture the low-income market

Gore Sector:Challenge for environmental activists; product differentiation

Clinton Sector:Challenge for model customers; product differentiation and cost leadership


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

• 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

• 40% Growth over 10 Weeks

• Committed brand loyalty


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

• 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

Smart Advertising

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