1. New service development in local
government
Bicycle share, new service development A case of Harare city
By Chiedza Maposa ,lucia mutengwa ,Admire chikwekwete alongside Bernard Tapiwa
Sithole

3. introduction
New services can be perceived to be any service within a broad continuum ranging from a major
radically innovation new service to a slightly modified or repackaged new service, or even one
involving a new change of style.
 Major service innovations--new core products for previously undefined markets
 Major process innovations--using new processes to deliver existing products and offer extra
benefits
 Product line extensions--additions to current product lines
 Process line extensions--alternative delivery procedures
 Supplementary service innovations--adding new or improved facilitating or enhancing elements
 Style changes--visible changes in service design or scripts

4. Success Factors in New Service
Development
 Market synergy
 Good fit between new service and firm’s image/resources
 Advantage vs. competition in meeting customers’ needs
 Strong support from firm during/after launch
 Firm understands customer purchase decision behavior
 Organizational factors
 Strong interfunctional cooperation and coordination
 Internal marketing to educate staff on new product and its competition
 Employees understand importance of new services to firm
 Market research factors
 Scientific studies conducted early in development process
 Product concept well defined before undertaking field studies

5. Service development Strategy for bicycle
service
 Development aims, objectives and scope were defined with respect to the
organization’s vision and strategic goals. The rationale for the service
improvement or new service were understood and established in conjunction
with service staff. The specific research objectives were clearly defined, the
constraints outlined and agreed upon. A preliminary plan for the research is
established and the existing service issues understood, by gathering internal
information from service staff and members of the public and various stake
holders

7. New Service Development Process
 Problem Identification or Situational analysis
 Idea Generation
 Concept Development and Evaluation
 Business Analysis
 Service Development and Testing
 Post introduction Evaluation
 Commercialization
 Market Testing
Screen ideas against new service strategy
Test concept with customers and employees
Test for profitability and feasibility
Conduct service prototype test
Test service and other marketing-mix elements

8. Problem identification
 The problem that we have identified is that of growing traffic congestion and the
environmental concerns. Cars now days have became affordable and Harare
citizens are buying more and more cars to the extent that its now difficult to move
from point A to Point B whilst in the Central Business District (CBD) due to traffic
congestion. Also the parking space is so little to the extent that one cannot get
parking on a normal working day.
 Furthermore its now expensive to park in town $1 per hour and if ones does not
pay the vehicle is clamped by the city council and it costs $144 to unclamp the
vehicle.

9. Why Bike Share?
WHEN?
TIME
Weekday peak hour
Weekday off-peak
Evening
Weekend
WHETHER?
SUBSTITUTES
Telework
Teleconferencing
Online shopping
Trip chaining
WHY?
PURPOSE
Work
School
Shopping
Recreation
WHERE?
DESTINATION
Street
Neighbourhood
Community
City
HOW?
MODE
Walking
Cycling
Public transit
Car driver/passenger
TDM: Strategies and policies to reduce travel demand
Bikeshare is more than just a supply issue

10. Why Bike Share?
 Promotes cycling by increasing access to bicycles, raising the profile of
cycling and acceptance of cycling as a normal travel behaviour
 Can be implemented relatively quickly and at little cost compared to other
transportation systems
 Reduces Congestion, air pollution and GHG emissions
 Improves health through the promotion of active transportation
 Contributes to a City’s menu of transportation modal options for citizens,
reducing SOV dependence
 Helps achieve Harare goals through Vision2020, Transportation Master
Plan and TDM initiatives

12. Idea generation
We have identified the problem in the city of Harare. We will gather information
from internal, external, the service users, the motorists, we will consult the experts in
this field and brainstorming with the citizens of Harare.
This same service is being provided in China and we will consult the experts and
according to research carried out this has eased congestion and have resulted in
less accidents in town.
Currently citizens drive around town or from point A to point B or travel by
commuter ominbuses. Theses minibuses have caused so many accidents in the city
because they do not have proper ranks were citizens can properly embark and dis
embark.

14. Idea generation cont
 The city of Harare has became so small due to increasing population in the city
since it is the capital city of our country. City of Harare only has a population of 2,5
million people.
 Inorder to ease the congestion the City of Harare can introduce the bicycle renting
in and around town.
 City council need to have bicycles at the strategic points where they will be
stationed and if a customer comes by they need to have their National I.D
screened on the system they pay the fare and they will rent the bicyle for a certain
duration.

15. Idea generation continued
 The bicycle city council will be having the tracker and the timer so that the city council agent
will use that. Before the customer is given the bicycle all the information is loaded into the
system to avoid theft and vandalism and they will have cameras within the bicycle.
 Instead of driving to from point A to point B one can just rent a bicycle from the City Council
designated bicycle center and cycle around town doing business or personal errands.
 The idea of bicycle share came first among the following brain stormed projects, mobile bulk
water distribution ,care homes, cable cars ,child play centers to name a few

17. Concept development and evaluation
 This concept if properly lauched it will yield positive results.
 In the 1980s and the 1990s we used to have the bus system by the government(
ZUPCO). There was an hourly bus around all the places in Harare and this service
was discontinued due to lack of finances to service the buses and buy spare parts
to repair the buses.
 For testing purposes the City Council can introduce the bicycle service in Harare
only for six months and closely monitor how it goes and conduct surveys to get
feedback from the citizens on how they view the new service development.

19. Concept development and evaluation
 City of Harare can advocate for the environmental protection (Green Marketing)
and introduce the rent a bicycle service. Since most organisations are
advocating for environmental protection this will be a great move and the
council will gain support from internal and external.
 Furthermore it will be cheaper and more affordable to move from point A to
point B using a bicycle than using a car. One can save on fuel, stress involved by
driving in a small congested roads with potholes and parking fees.

21. Concept development and evaluation cont
 One can move around town freely without the fear that the car will be clamped
or stolen.
 According to the research carried in and around Harare most motorists nowdays
prefer to walk around time as compared to driving as they say it is now risky to
drive around CBD its better to walk from point to point. Most of them will have
left their cars at the periphery of town and we are saying City council can take
this opportunity to fill the gap instead of walking one can cycle to save time.

22. Business analysis
 On the business analysis we will be looking at feasibility and profitability.
 Its more profitable for the City of Harare to take this avenue because bicyles are
less expensive as compared to buying the shuttle buses and since the
organisation is not making vast profits the bicycles do not need spare parts later
on and the Coucil can save a lot.
 The bicycles do not need fuel to move around town. All what is required is to
have the bicycle registered on the system and have a tracker to prevent
vandalism and theft.

23. Harare bicycle Potential System - Analysis
Is there potential?
• 1.5m residents in service
area
• 10% uptake to be profitable
• 50% of all trips made are 1-2
km in length in Harare
• Greater than 80% of trips
originate and end in the City
• Proposed service area is the
largest employment area
• Initial survey shows support
• Stakeholder interest is high
• Highest level of alternative
modes in the service area

24. Business analysis
 Since our roads are badly damaged especially in Harare CBD area and the city
council is failing to get enough funds to repair the roads the rent a bicycle
service will be the answer and they will need to have more cycle tracks in town.
 The bicycles will be high tech and the Council can propose that the residents
can rent for the bicycle for at most three days and it can be reviewed after
market testing.
 On the security side this new service development is feasible because coucil
already have its own policemen and security guards.

26. BICYCLE SHARE PROJECT budget
It is a quantitative expression of a plan for a defined period of time. It may include
planned sales volumes and revenues, resource quantities, costs and expenses, assets,
liabilities and cash flows.
After extensive consultation with various stakeholders the following budget was
Arrived at

27. COSTS REVENUE CASH
FLOW
Operational Costs/annum
Salaries for maintenance and administrative staff,
insurance,
replacement costs for broken or stolen equipment,
debt-service, gasoline upkeep costs for redistributor
vehicles, website housing and maintenance, electricity
charges for the bike-stations, membership cards
warehouse/storage fees.
Estimate $500*500bikes=$750 000
Total operational cost =$750 000
Capital costs
manufacturing, installing and “trenching bicycle
shelters
bicycles, manufacture installing bike-stations,
purchase of service and distributor vehicles,
development of a website,
purchase installing of necessary hardware and soft
ware
Estimate cost of $2000/bike *500bikes =$1000 000
Membership
use fees
Assumed Rates
Annual Pass$30
Weekly Pass $15
Day Pass $5
1st Half Hour
0.50c Free
Subsequent
Hour(s) $ 1 each
Harare City
(total
population 1.5
million), the
projected Total
revenue per
year is $1000
000
Total
cash
flow
per
annum
$250
000

28. Service development and testing
 We can conduct a service prototype testing for the new service development
using a few models quickly and cheaply. We can select a few Harare residents
from different locations to experience this new service so that we can have their
feedback so that we improve the service before it is launched and this will be
the pilot testing to rent a bicycle service in Harare.-

29. Transit Supportive Design
Bicycle sharing
is the perfect
mode of transit to
fill the gap between
trips that are
too far to walk &
too short to drive
B-Line
Harare Nice Ride:

30. Service development and testing
 At this level we will test the new service with the other marketing mix elements
which are the product, place , price, promotion and the additional three which
are people, process and physical evidence.



31. product
 The product will be the bicycle service that the council will be offering to the
Harare residents, service, or program - something of value you are offering the
customer, client. This service will benefit both the residents and the council.
City council residents
• Another avenue for revenue
generation
• Save on fuel and money
• Bicyles do not need spare parts • Drive around time with no worries
• They are cheaper to bring into the
country
• Promoting the green marketing
since biclcles do not pollute the
environment
• Faster than driving a vihicle in the
city center
• Its even healthier because cycling is
exercising.

32. place
 This refers to where we are going to sell or make our services available and how
we are going to make sure every customer have the access.
 We will be having centers in town and outside town with more than 500 bicycles
each so that where ever the residents are they will be able to rent out and they
can return it at any Council center in town. This is done to ensure that time will
not run out whilst one is still far off. For example one can a bicycle in Eastlea and
one can return it any center in town.

34. Price
This is what the customer pays to enjoy the service. The City council can start with
the penetrating pricing whereby they will have to start will low pricing inorder to
gain market share. Since it’s a new service development the council need to gain
confidence and trust from the its customers.
 Annual Pass$30
 Weekly Pass $15
 Day Pass $5
 1st Half Hour 0.50c Free
 Subsequent Half Hour(s) $ 1 each

35. promotion
 These are methods used to communicate the features and benefits of our
services. These methods help us to create awareness of the service. They can
start by promoting the product to the Council employees, government
employees and the public.
 Advertising and awareness will be carried out in our local newspapers
,radios,TV,trade fairs ,Harare bicycle share website, bill boards, to name a few

37. Commercialisation
 Excellent internal marketing required to maintain enthusiasm for the new
service, due to slow new service adoption by users ,this will include better
salaries ,improved communication, delegation,empowerment and consultancy
 Train and monitor the service delivery employees for service quality.
 Monitor costs and operating efficiency.

38. Commercialisation

39. Post evaluation
 We will do customer surveys and evaluate the effectiveness of new service
development.
“Happy riding Harare
Residents”

40. Conclusion
 A conclusion will be made after we have made the pre- market test for about six
months.