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Marketing Plan
Principles of Marketing
Prepared For: Judith Richards
December 11th
, 2014
Prepared By:
Caitlin Braun
Jessica Maldoon
Andrew Vu
Luke Wlodarski
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Student Responsibilities
Student Name Responsibilities
Caitlin Braun  Market Description
 Benefits and Product Features
 Service Review
 Competitive Review and Analysis
 Channels & Logistics Review
 Conclusion
 Appendix
Jessica Maldoon  Logo Creation
 Marketing Strategy
 Marketing Organization
Andrew Vu  Objectives & Issues
 Action Programs
 Budget
 Controls
 References
Luke Wlodarski  Creative Design
 Compiling of Paper
 Commercial Directing
 Commercial Editing
 Executive Summary
 SWOT Analysis
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Table of Contents
Executive Summary……………………………………………………………………………… 4
Current Marketing Situation …………………………………………………………………….. 5
Market Description ……………………………………………………………………………….7
Benefits and Product Features ……………………………………………………………………8
Service Review …………………………………………………………………………………...9
Competitive Review and Analysis ………………………………………………………………10
Channels and Logistics Review …………………………………………………………………10
SWOT Analysis …………………………………………………………………………………11
Objectives and Potential Challenges …………………………………………………………… 12
Marketing Strategy ……………………………………………………………………………... 13
Marketing Communication Strategy …………………………………………………………….16
Marketing Research ……………………………………………………………………………. 17
Marketing Organization ………………………………………………………………………... 18
Start-Up Assumptions ………………………………………………………………………….. 18
Budget ………………………………………………………………………………………….. 19
Conclusion ……………………………………………………………………………………... 22
Appendix ……………………………………………………………………………………….. 23
References ……………………………………………………………………………………… 24
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Executive Summary
As of 2014, there are 2,618 accredited four-year universities in The United States of America.
Among these universities, there are currently 21 million students enrolled across the nation. Of
these 21 million students, more than half do not have automobiles while at school due to policy
or lack of funds. Campus Cruise is a bicycle rental service for students on college campuses who
require a simpler mode of transportation. Campus Cruise is safe, reliable, convenient, and fun!
MissionStatement
“To provide hard-working students a means of transportation in the most eco-friendly way
possible.” Not only is Campus Cruise convenient for students who require a mode of
transportation to and from classes, dorms, or local hang-out spots, it is also an opportunity for
individuals to reduce their carbon footprint by choosing a more sustainable option. Automobiles
make up more than half of the greenhouse gases that are emitted into the ecosphere on a yearly
basis. By implementing this service across every university in The United States, Campus
Cruise hopes to reduce this generation’s carbon footprint by a significant amount. This young
generation is the future of this planet. By redirecting mindsets and introducing programs like
Campus Cruise, there will be a more enlightened sense of awareness, allowing our future to be
brighter.
The Story So Far
Campus Cruise was initially developed by a group of third and fourth-year students attending
California Lutheran University, located in Thousand Oaks, California. The idea came somewhat
abruptly and unexpectedly. The students, all students who lived on-campus during semesters
without vehicles of their own, needed a ride to the local grocery store, but were unable to find
one. Frustrated, the students collectively formulated a plan for an on-campus bicycle service for
other students who may be in the same situation as they; thus, Campus Cruise was born.
Recommendations
In a convenience-based society, the development team at Campus Cruise feels that this service
has the potential to be a massive success across college campuses on a national scale. In order to
be successful in this day and age, there is a great deal of research, development, and intelligent
execution that must be completed first. The marketing and development team at Campus Cruise
is young and has a social media-based mindset. The team understands their target demographic
of young college students and is looking to satisfy customer needs and wants. In order to do this,
the team must understand its target market, branding, advertising, and budgeting.
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Current Marketing Situation
Campus Cruise is a university-based bicycle-renting program for students. This renting service
will be ideal for both students living on campus and those who commute. The goal of Campus
Cruise is to provide these students with the convenience of transportation using an easy-access
bicycle rental service throughout every university in the United States. Marketing for Campus
Cruise will require a few various approaches. The marketing team will need to market the
service itself, the quality of the bicycles being rented, the environmental sustainability of
selecting this option over other conventional transportation methods, and the flexibility of the
service.
Marketing Campus Cruise will require a great deal of marketing. The marketing team
plans to utilize its primary marketing through two different avenues: through individual
university relations and through referrals or word of mouth. Campus Cruise will introduce its
program to multiple universities with differing student demographics and populations. The
marketing department will work hand-in-hand with university relations to market the service in
brochures, newspaper advertisements, and even give students the opportunity to select a payment
plan on their tuitions to further broadcast the new, innovative transportation service. A referral
program will also be established in which customers will receive discounts or coupons when a
new customer uses their name as a reference.
Partnerships
Campus Cruise will create a partnership with Divvy, one of the most recognized bicycle
companies in the world, noted for its quality and sleek, sophisticated designs. This business-to-
business partnership will enhance credibility for Campus Cruise by implementing high-quality
bicycles into its rental options, and for Divvy because it will allow a platform for its brand to be
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seen and more often recognized. Campus Cruise will also utilize the technology that Divvy has
implemented in its products. Creators of Divvy have invented stations with touch screens and
card scanners for users. Campus Cruise plans to customize these stations to install on campuses,
allowing the rental service to be that much easier.
A Service for Every University
Environmental sustainability is a hot topic in today’s society. Efforts are being made
daily to reduce the carbon footprint of our generation. The marketing team will work to
broadcast awareness of this issue on a national scale. Conventional methods of transportation
such as: cars, buses, trains emit dangerous greenhouse gases that are detrimental to the
environment; however, bicycles are completely sustainable and do not endanger the environment
in any way because they do not emit any carbon monoxide. This method of marketing will be
successful in targeting millennials because these groups of individuals are the future of the well
being of the planet; creating this awareness will allow college students to broaden their
perspectives and choose more sustainable options, starting with their transportation methods.
Campus Cruise plans to be an extremely flexible service, in terms of convenience and
accessibility. Based on campus-size, there will be a number of rental and return stations, giving
students the convenience of picking up or dropping off their bicycles at the nearest location; no
one will have to go out of their way ever. Next, the service will be open during normal
university operating hours and until two o’clock in the morning on Fridays and Saturdays for
students who either work late or use the rental service to commute to and from local parties and
recreational activities. Finally, convenience will take a step further with multiple payment
options for customers. Students will have the choice to pay once a semester on their tuitions
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when selecting a “Campus Cruise Transportation” option or they may pay on a daily basis after
checking in their rented bicycles at the end of their use.
Market Description
At Campus Cruise, we understand our market is different than the general public market.
We are specifically targeting students at colleges and universities to use our service. Although,
we do not limit our service to just students, we do also encourage professors to use the campus
bike service for their necessities and travel purposes throughout the day. However, the bike
service is centrally targeted to the demands and needs of the students.
Our marketing strategy strives to reach students in a similar way to how schools reach
their students. We would present an informational brochure to incoming students along with their
admissions packet, as well as, each year sending the brochure to returning students if they would
like to renew the service or sign-up for the upcoming semester. There will also be several media
advertisements used to promote this service. There is a plan to release a short PSA or
commercial on music services like Spotify and Pandora by utilizing the demographic locations of
students at participating or potential campuses for the bike service. This way, we will be able to
reach our target market through applications they use on a daily basis.
We will also be utilizing social media as a tool to reach our market. With the use of
Facebook, Twitter, and Instagram, Campus Cruise will be able to spread awareness about the
service as well as engage with students. This is important to have a strong practice of social
media since most people in our market utilize this source for information and interaction with
other people and companies. With the Campus Cruise accounts on social media, we will be able
to develop more recognition of our company, as well as, allow students to be a part of the
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service. Our video advertisement demonstrates a fun way in how Campus Cruise helps a student
out on campus. We will encourage other students of the service to show how Campus Cruise fits
into their campus life by posting pictures, sharing stories, or making fun videos. With the use of
social media, there will be lots of engagement between users of the service and the company.
Benefits and Product Features
Many students who attend a college or university, have to deal with the very high prices
of a parking permit for their vehicle. Often, these high prices result in students not bringing a car
to campus with them during the school year. They then have to rely on other people to transport
them or plan around a bus schedule whenever they need to leave campus. Having a bike service
that is conveniently located at several places on campus is very beneficial to students who may
need the bike to run an errand to the market to pick up some groceries.
There is also the aspect of the size of a campus. Typically, dorm rooms are a separate part of
campus, far away from the buildings where students attend class. Students may use campus
cruise to quickly and efficiently get to class on time. Having this type of transportation may also
make students feel safe when going to and from their destination since they can make it their in a
shorter amount of time, especially when it is dark outside.
With the low-cost of the bike service, students will be able to save what little spending money
they have instead of paying more in gas or for bus fare. Other beneficial aspects include Campus
Cruise being environmentally friendly and supporting physical exercise with the use of the bike.
A small survey was conducted between California Lutheran University students as well as
students from other campuses such as UCSB, ASU, Auburn University, CSUCI, UCLA, UCR,
CSUN, and Cal Poly SLO. Forty students responded to the survey and within that group it was
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found that on average they all traveled 72.25 miles per week. This traveling puts a stamp on our
carbon footprint, but with Campus Cruise we can reduce this amount, as well as, reduce the cost
of gas spent each week, which was $40.50 on average. This service will benefit college students
by supporting their limited finances.
Service Review
Campus Cruise will be conveniently located at each school’s popular areas. In general,
there will be bike racks at dorm halls, dining commons, the library, main parking lot or
welcoming center of campus, and near the central area of campus where students attend class. In
order to access the bikes, students will need to swipe their student identification card to unlock
the bike. The identification card works like a key and is also similar to how students would use it
for a meal plan. Students who choose to use the service and sign up for a semester plan are able
to swipe their card to unlock the bike. After the card is swiped, the screen will show the students
name and what time the bike was checked out. Later, they are able to check their Campus Cruise
account on their student portal to access information such as, what time they had checked the
bike out and when it needs to be returned. They will also be able to check the status of their
account whether or not they have a pre-paid plan. Accessing bikes will be an easy process and
information regarding the service and students will be very obtainable.
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Competitive Review and Analysis
Main competitors to the service include cars and students who already own bikes. Most
people are going to want to use their car over a bicycle since they are faster and less work.
However, people will choose to ride the bike in consideration for its positive environmental
effects. It is also seen as a fun activity between friends who may want to ride their bikes to the
other side of campus for a night event or down the street to the local restaurant. Other
competitors are car or taxi services such as Uber, Lyft, and bus services. Although all of these
competitors come with a higher price, people tend to use them since they can carry multiple
people to a location in a timely manner and to further distances. Knowing what the competition
holds, we as a company must focus on our mission and purpose for the service. We will have to
really enforce the healthier, environmentally friendly, and cheaper alternative for students’
nearby necessities.
Channels and Logistics Review
Campus Cruise is a service that will be provided for the school but not by the school.
When a University creates a contract with us, we will be agreeing to a partnership but the school
will not be receiving any profit made by the service. The company will have a central office
located in Thousand Oaks, California where the aspects of business will take place. The service
will also have a partnership with the company Divvy, which is the supplier for our bikes.
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SWOT Analysis
Strengths
Campus Cruise is convenient and easy to use.
Students will have no issue renting a bicycle
for personal use. The technology partnership
with Divvy will allow the rental process to be
quick and stress-free. Payment is also
convenient and inexpensive, as students may
pay on a daily basis or once at the beginning
of each semester.
Also, Campus Cruise aims to address
ecological issues. If this service were
implemented on every college campus, carbon
emissions from automobiles would be reduced
by a great deal.
Marketing is also targeted towards college
students as the development team is working
with partners such as YouTube, Pandora, and
the FCC and Pac-12 networks to run both
print and commercial advertisements.
Weaknesses
Being a start-up company, budgeting for
Campus Cruise will be low until investors are
found.
The majority of marketing will be done on
social media which may be extremely
successful or a potential failure.
As fresh college graduates, there is a lack of
experience in the developers of Campus
Cruise. Investors may have a difficult time
investing in recent college graduates to build
a successful start-up company.
Opportunities
Campus Cruise has the opportunity to target
young adults who are passionate about
environmental sustainability. Vehicles are the
number one source of greenhouse gas
emissions globally. Campaigns could be
implemented in order to capture this audience.
On Earth Day, a huge social media campaign
could be designed to raise awareness of
sustainability issues with the hashtag
#CampusCruiseCleanUp. On this day every
year, Campus Cruise will lead a brigade of
college students who will collaborate in
cleaning up their campuses and surrounding
communities.
Threats
There are countless forms of transportation
across the United States. On college
campuses, there are already students who
have cars, bikes, and utilize public transit.
Targeting this market may be a challenge
because these students are already
comfortable and satisfied with their current
mode of transportation.
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Objectives & Potential Challenges
There are definitely other factors that could hinder our success. Many students who use bikes
already own their own bikes and won't need to rent ours. Clearly this cuts into the amount of people
that will want to rent our bikes. Whether or not students own a car can also impact our revenue.
Students who own cars are more inclined to drive places as opposed to biking. Where we believe our
service would be the most utilized are short distances like to and from class or the gym. We would
also have to focus on schools outside of major cities since many of them already have bike-sharing
systems in place. While these companies provide bike rentals they are only in cities and haven’t
started expanding to schools.
We have high hopes for our company over the next two years. As of 2011 there were 2,870
four-year colleges in the US alone (National Center for Educational Statistics), all of which are
potential locations for campus cruise. With so many colleges growing in size every year are market is
always growing. Students without a car or bike need some form of transportation and our bikes are
an efficient and eco friendly way to get to class, the gym or a grocery store. For CLU in particular,
the majority of social functions and parties are located off campus. Our Bikes can provide means of
transportation to and from these events as well. I think this is why our business has the opportunity to
be extremely successful. Our hope is to have our bike systems in place in five schools in the first year
and twenty by the end of the second year. Our goal for revenue in the first year is $250,000. I think
this is a very realistic mark to set, especially if we are able to get into five universities by the end of
the year. Since it is our first year I believe our best-case scenario would be $50,000 in profit and
worst would be to break even. For our second year of business we think our company will expand
from 5 to 20 schools. In terms of revenue I believe we will hit $1,000,000 and make $300,000 in
profit.
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Marketing Strategy
Campus Cruise is creating a strategic plan that will emphasize our mission statement and goals.
Our plan is to create a service of value for our customers and make long lasting relationships
with universities. Our focus is college students with low to moderate income, seeking convenient
and inexpensive transportation that promotes a healthy life style and is environmentally friendly.
Proposal
For our service to be successful on college campuses around the country, we have put together a
plan for the Campus Cruise marketing mix covering all the important aspects of marketing;
positioning, service, price, distribution, and promotion.
Positioning
Campus Cruise wants to be eco-friendly, inexpensive, convenient, and promote a healthy
lifestyle. In taking this position, this is the way we want our service defined by us as well as our
target consumers. Positioning is arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers (Kotler and
Armstrong 75).
Our marketing team will create a positioning map that will display what the consumer
thinks of our service compared to options of transportation. Our first point if attraction for our
consumer market is that we are an inexpensive and convenient way to travel. We will maintain a
relationship with Divvy to insure the quality of bikes and place the bike racks in areas most
convenient to students. To differentiate our service, we will promote being eco-friendly by
reducing the carbon footprint of this generation, and promote a healthy lifestyle by getting
exercise in an inexpensive and convenient way.
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Service
Campus Cruise is a bike rental service for college students. Students can rent these bikes from
several convenient locations around their college campus by simply swiping their Student ID
card. We have partnered up with the Divvy bike company who supplies us with the bikes as well
as the rental kiosks for a fee and having their logo featured with ours on the bikes and kiosks.
Pricing
After conducting focus groups and researching the cost of parking passes and other college
student travel expenses, we came to two different forms of pricing for our service. The first is for
the student to pay up an upfront semester cost of $100, much like the way campus meal plans are
set up. The account would be linked to the students’ ID cards and would allow them unlimited
access to the Campus Cruise service for the semester with a simple card swipe.
The other option for student would be to pay per rental. Students would have the option
of renting for a half day at $3 in which bikes must be returned in 12 hours of the rental purchase,
and a full day at $5 in which bikes must be returned within 24 hours of the rental purchase.
If a student damages the bikes, a charge of $50 will be credited to their student account. If a
student does not return a bike or looses the bike, a charge of $500 to replace the bike will be put
on their student account. If a student does not pay the charge(s), a hold is placed on their account
that does not allow them to register for classes, use the service, or even graduate until they pay
back the fine(s).
Distribution
The bikes will be placed on bike racks, which would be located around the campus for easy
accessibility for students. Students will swipe their ID card at the Campus Cruise kiosk and
choose how long they wish to rent the bike for. The kiosk would then unlock one of the bikes for
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the student to use for the charged time. The bike would come with a bike lock for students to use
when traveling off campus to lock up their bike at non Campus Cruise bike racks. Once finished
with a bike, the student can simply return the bike to any Campus Cruise bike rack, relock it, and
receive a confirmation receipt by student email that the bike was returned.
Promotion
To promote our service, Campus Cruise will work with university relations on campus. We will
utilize brochures and advertisement space in the schools’ website and local newspapers. When
students receive acceptance packets and registration notices from the universities, we will
include a flyer that informs the student of our service and how they can pay an upfront semester
cost if they would like.
Campus Cruise will partner up with SCC and PAC12 Networks to run commercials
during college sporting events to target student views. We would also run demographic
commercials and PSA’s on YouTube, Spotify, and Pandora.
Using social media sites, such as Facebook, Campus Cruise will run campaigns to engage
customer engagement. For example, going along with our emphasis on being eco-friendly, on
Earth Day we will run a campaign with the hash tag #CampusCruiseCleanUp in which students
post photos and videos how they are promoting an eco-friendly lifestyle, and where they are
traveling to using our eco-friendly service. Also, we will make posts about promoting a healthy
life style and how riding a bike through Campus Cruise is a part of that life style, such as benefits
of cardio workouts.
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Marketing Communication Strategy
Since our target market does not include all consumers, we will not focus on mass-
communication advertising. Instead, we are choosing to focus on promoting through the ways
listed above as well as using brand representatives and campus relations.
Campus Cruise Brand Representatives
While conducting market research on campuses, we will find students that are interested in our
company to become campus brand representatives for Campus Cruise. We will pay them to
promote our service on their campus. Not only will this allow us a way to promote our service
but also have new minds to come up with ideas of effective service promotion. We will give out
bonuses for brand representatives that are very successful in promoting Campus Cruise as well as
those who find effective new ways to promote that we can utilize at other campuses. It provides
constant market research without conducting surveys or focus groups.
Campus Relations-Public Relations
One of the most important aspects to the success of our company is maintaining relationships
with universities. As we are a start up company, we need to build these relationships, our
company image, and maintain them. In order to do this, we can send out monthly newsletters to
the universities about what Campus Cruise is doing to benefit the campuses as well as promote
our mission statement. We will also keep a constant line of communication with the campuses
regarding any issues they have.
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Marketing Research
We conducted a survey utilizing SurveyMonkey.com as our primary research in order to
understand our target market better. We wanted to find out what form of transportation our
target market uses, if they would use a more eco-friendly form of transportation and if they
would use a bike service. On our survey, we asked students ten questions that we believed would
help us gain the information we were looking for from our target market. We reached out using
Facebook and student emails from our courses, and had 40 participants in our survey that gave us
helpful feedback. We have 60 percent say that they would not utilize a bike service. We noted
that the majority of these students attended small campus where it would be more convenient to
walk around campus and drive off campus than use a bike. Of the 40 percent who said that they
would use a bike service, 95 percent of them came form large universities where it would be
more convenient and cheaper to use a bike service than walk or pay for a parking pass. To see
the full results of our survey, use the following link or see our appendix:
https://www.surveymonkey.com/results/SM-2QDDRHWV/
The following is the link to take our survey:
https://www.surveymonkey.com/s/PJ5K5BB
For our secondary research, we conducted two small focus groups with our target market. From
these focus groups, we were able to determine our two forms of pricing and determine that
Campus Cruise would be a better fit on larger campuses.
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Marketing Organization
Our four founding members of Campus Cruise all own an equal part in the company as we all
invested in equal parts. Campus Cruise wants to create and establish our company image and will
focus on building our marketing department. We will have a Chief Marketing Officer (CMO)
who will have five directors reporting to them; Public Relations Director, Market Research
Director, Promotion Director, Advertising Director, and Director of Strategic Marketing.
Start-Up Assumptions
There are always tons of moving pieces that go into starting a business. For Campus Cruise
we have the following assumptions. We have talked with CLU’s board of directors and they believe
our idea can greatly benefit students and the overall functionality of the campus. We have a budget of
$200,000. Approximately $100,000 of this initial budget will go towards purchasing the bikes and
the racks and getting them installed on campus. After this the remaining $100,000 will be used to
market our service. Also In order for our business to get started as quickly as possible we have
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partnered with Divvy Bikes who will be our supplier for both the bikes and bike racks. While Divvy
will be supplying the equipment necessary for Campus Cruise that is our only association with the
company as the rental fees and agreements are through CLU.
Divvy is responsible for establishing the bike-sharing program already in place in
Chicago. While they are currently only in Chicago, they are interested in expanding and think that
we can get into almost every college in the nation. To start we will bring twenty bikes at four
conveniently located stations around campus. Depending on how well it is received we will go from
there and build more racks and buy more bikes as needed. Divvy Bikes has their own payment
program that offers yearly, daily or hourly rental agreements. They have agreed to let us create our
own prices so that the bikes are more affordable for the average college student. While Divvy bikes
uses member keys or ride codes they have agreed to let us alter the kiosk screens that are installed on
the bike racks so that bikes can only be checked out with a student’s school ID as a form of
payment. All students need to do is register their ID number with on the Campus Cruise website and
then swipe their card at the station and the system will monitor who checks out which bike and will
record how long it was used to determine the cost.
Budget
Our total budget for our first year of business is $200,000. The four of us: Caitlin, Andrew, Jessica
and myself are all equal partners contributing $50,000 each. This initial investment will be split in
half, $100,000 to be used for purchasing and installing equipment and $100,000 for our first years
advertising budget.
The $100,000 that will go towards purchasing and installing the equipment is necessary to
get Campus Cruise off the ground. For our first location at CLU this includes purchasing twenty
bikes, four bike racks that will each hold five bikes, and twenty kiosk screens with ID readers. We
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have estimated that all of this equipment combined will cost $40,000. Another $10,000 will be
needed to get all this equipment to CLU and have the bike racks installed with each kiosk screen
attached and linked to the individual bike stall. The remaining $50,000 will be kept in our company
bank account so that we will have funds readily available so that we can accommodate the next
university that wants to bring Campus Cruise to their school. It is important to have this money
available, as it will allow us to expand beyond one school without having to find a way to get more
capital. By initially contributing an equal amount of money that allows us to have extra cash as an
asset, we are making it so that we won’t have contribute more of our own money, take out a loan or
bring in another partner just to expand Campus Cruise to a second campus. Initially we will be
relying on our contract with CLU to bring in revenue, but we anticipate it won't take long for another
university to see the benefits we can bring to their campus and when they do we can bring our service
to them immediately.
The other $100,000 will be our first years marketing budget. We have decided that because
our company is so new we have to use all forms of media to get our brands name and message to as
many people as possible as quickly as possible. Our budget will be divided as such. We spent $10,000
filming and producing our commercial, which will be broadcasted via multiple mediums. A large
portion of our advertising budget will go towards broadcasting this commercial on certain TV stations
during specific events. We have decided to allocate $25,000 for TV spots. This money will be used
to show our commercial during NCAA College football Championship. This will cost us $5,000 for
two, one-minute spots. The other $20,000 was used to get our commercial regularly broadcasted on
both the PAC 12 Network and The SEC Network. This deal will get us five; one-minute spots a week
for the next year on both networks. These TV ads will be viewed primarily by our target market of
college students as both of these networks only broadcast news and sporting events that relate to those
NCAA conferences.
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Apart from TV we wanted to advertise online and on aps. We decided that for our target
audience the best places to start would be YouTube and Pandora Radio. We will use $10,000 for our
ad to be shown on YouTube. With this our ad will pop up and either play prior to the start of the video
or our logo will appear on the side of the screen. This investment ensures that our ads will be seen
anytime someone searches videos relating to universities or college sports. We will also be using
another $10,000 to have our PSA air on Pandora Radio. This will help to broaden our reach as students
everywhere use Pandora. Our PSA will give a brief overview of our service and provide information
on how to contact us in order to bring Campus Cruise to their school.
Another media form we believe will benefit our company is print and we have chosen to spend
$10,000 on print media. Our focus will be on printing flyers and pamphlets with important information
about our company and its mission. These flyers will be passed out and hung up on college
campuses. Initially we will start by going to colleges in the Los Angeles area as we can personally
cover that territory. As the owners we are the most knowledgeable and will be able to give the most
accurate description of how Campus Cruise can benefit each school. We decided that school
newspapers are a great way to reach students and get them to sign up for our bike sharing program
once we have established our service on the campus. This can be a good way to expand as well. If we
are able to get ads in newspapers of schools that we haven’t convinced to join the Campus Cruise
family, students might see our ads and gain interest in our service and advocate for it to be brought to
their university.
For Social Media advertisements we set aside $10,000. We would start by creating a Facebook
page. $1,000 is going towards boosting our posts regarding important events special deals. With this
Facebook will make sure that people in certain areas see our posts even if they haven’t liked our page.
The rest of the money will go to paying brand reps that we find when doing market research at different
schools. These individuals will be people that show a significant interest in our company. Based on
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how well they promote Campus Cruise and if their university chooses to start using our bike sharing
system they will be paid for the work they do.
Since we are just starting this business it is essential for us to understand our target
market. There currently are no other companies that do what we do so we have no way of know the
potential for growth in the market. We have decided to dedicate $25,000 of our budget to doing
research on which schools we could be both beneficial and profitable. This would cover our expenses
to travel around the country to different schools. We would be trying to find which schools would be
the most open to having Campus Cruise on their campus. The money will also be used for focus
groups. We need to set up environments where we can talk to students and gauge their interest and the
overall opportunity for profit.
Conclusion
Campus Cruise will be the newest form of transportation seen on college campuses throughout
the United States. The service helps create a healthier, environmentally friendly, and cheaper
alternative to transportation for students on and around campus. Campus Cruise not only
provides these abilities, but also adheres to students who do not even have the option for an
alternative. Our company and service hopes to soon equip many schools with these bicycles to fit
in with the lifestyle of the modern college student.
23
Appendix
Do you live on or off campus? 35% On Campus
65% Off Campus
By what form of transportation do you
travel?
82.5% Car
5% Bike
5% Public Transportation
7.5% Walking
Where do you travel on a daily/weekly
basis?
80% School
55% Work/Internship
30% Gym
25% Other
Would you consider a more
environmentally friendly form of
transportation for local trips?
80% Yes
20% No
Male or Female? 22.5% Male
77.5% Female
What school do you attend? 27 CLU
2 Moorpark College
1 UCLA
1 CSUCI
1 UCSB
1 Cal Poly Pomona
1 Cal Poly SLO
1 UCSD
1 CSUN
1 UC Riverside
1 Auburn University
1 New School of Architecture and Design
How far do you travel on a weekly basis? 16: 2-50 miles
24: 51 miles and above
How much do you spend on travel every
week?
32:$0-$40
8: $41 and above
Would you use a bike service on campus if
it were available to you?
16 Yes
24 No
24
References
http://youtu.be/8dpWS_0nv_A (Song)
PSA for internal marketing. Campus radio.
Advertisement for on campus TV and on student portal.
http://www.peopleforbikes.org/statistics/category/environmental-statistics
http://www.climatecentral.org/news/bike-sharing-complicated-climate-impact-17910
Book online: http://www.scribd.com/doc/226094315/Kotler-Philip-Principles-of-Marketing

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BUS 375 - Campus Cruise Final

  • 1. Marketing Plan Principles of Marketing Prepared For: Judith Richards December 11th , 2014 Prepared By: Caitlin Braun Jessica Maldoon Andrew Vu Luke Wlodarski
  • 2. 2 Student Responsibilities Student Name Responsibilities Caitlin Braun  Market Description  Benefits and Product Features  Service Review  Competitive Review and Analysis  Channels & Logistics Review  Conclusion  Appendix Jessica Maldoon  Logo Creation  Marketing Strategy  Marketing Organization Andrew Vu  Objectives & Issues  Action Programs  Budget  Controls  References Luke Wlodarski  Creative Design  Compiling of Paper  Commercial Directing  Commercial Editing  Executive Summary  SWOT Analysis
  • 3. 3 Table of Contents Executive Summary……………………………………………………………………………… 4 Current Marketing Situation …………………………………………………………………….. 5 Market Description ……………………………………………………………………………….7 Benefits and Product Features ……………………………………………………………………8 Service Review …………………………………………………………………………………...9 Competitive Review and Analysis ………………………………………………………………10 Channels and Logistics Review …………………………………………………………………10 SWOT Analysis …………………………………………………………………………………11 Objectives and Potential Challenges …………………………………………………………… 12 Marketing Strategy ……………………………………………………………………………... 13 Marketing Communication Strategy …………………………………………………………….16 Marketing Research ……………………………………………………………………………. 17 Marketing Organization ………………………………………………………………………... 18 Start-Up Assumptions ………………………………………………………………………….. 18 Budget ………………………………………………………………………………………….. 19 Conclusion ……………………………………………………………………………………... 22 Appendix ……………………………………………………………………………………….. 23 References ……………………………………………………………………………………… 24
  • 4. 4 Executive Summary As of 2014, there are 2,618 accredited four-year universities in The United States of America. Among these universities, there are currently 21 million students enrolled across the nation. Of these 21 million students, more than half do not have automobiles while at school due to policy or lack of funds. Campus Cruise is a bicycle rental service for students on college campuses who require a simpler mode of transportation. Campus Cruise is safe, reliable, convenient, and fun! MissionStatement “To provide hard-working students a means of transportation in the most eco-friendly way possible.” Not only is Campus Cruise convenient for students who require a mode of transportation to and from classes, dorms, or local hang-out spots, it is also an opportunity for individuals to reduce their carbon footprint by choosing a more sustainable option. Automobiles make up more than half of the greenhouse gases that are emitted into the ecosphere on a yearly basis. By implementing this service across every university in The United States, Campus Cruise hopes to reduce this generation’s carbon footprint by a significant amount. This young generation is the future of this planet. By redirecting mindsets and introducing programs like Campus Cruise, there will be a more enlightened sense of awareness, allowing our future to be brighter. The Story So Far Campus Cruise was initially developed by a group of third and fourth-year students attending California Lutheran University, located in Thousand Oaks, California. The idea came somewhat abruptly and unexpectedly. The students, all students who lived on-campus during semesters without vehicles of their own, needed a ride to the local grocery store, but were unable to find one. Frustrated, the students collectively formulated a plan for an on-campus bicycle service for other students who may be in the same situation as they; thus, Campus Cruise was born. Recommendations In a convenience-based society, the development team at Campus Cruise feels that this service has the potential to be a massive success across college campuses on a national scale. In order to be successful in this day and age, there is a great deal of research, development, and intelligent execution that must be completed first. The marketing and development team at Campus Cruise is young and has a social media-based mindset. The team understands their target demographic of young college students and is looking to satisfy customer needs and wants. In order to do this, the team must understand its target market, branding, advertising, and budgeting.
  • 5. 5 Current Marketing Situation Campus Cruise is a university-based bicycle-renting program for students. This renting service will be ideal for both students living on campus and those who commute. The goal of Campus Cruise is to provide these students with the convenience of transportation using an easy-access bicycle rental service throughout every university in the United States. Marketing for Campus Cruise will require a few various approaches. The marketing team will need to market the service itself, the quality of the bicycles being rented, the environmental sustainability of selecting this option over other conventional transportation methods, and the flexibility of the service. Marketing Campus Cruise will require a great deal of marketing. The marketing team plans to utilize its primary marketing through two different avenues: through individual university relations and through referrals or word of mouth. Campus Cruise will introduce its program to multiple universities with differing student demographics and populations. The marketing department will work hand-in-hand with university relations to market the service in brochures, newspaper advertisements, and even give students the opportunity to select a payment plan on their tuitions to further broadcast the new, innovative transportation service. A referral program will also be established in which customers will receive discounts or coupons when a new customer uses their name as a reference. Partnerships Campus Cruise will create a partnership with Divvy, one of the most recognized bicycle companies in the world, noted for its quality and sleek, sophisticated designs. This business-to- business partnership will enhance credibility for Campus Cruise by implementing high-quality bicycles into its rental options, and for Divvy because it will allow a platform for its brand to be
  • 6. 6 seen and more often recognized. Campus Cruise will also utilize the technology that Divvy has implemented in its products. Creators of Divvy have invented stations with touch screens and card scanners for users. Campus Cruise plans to customize these stations to install on campuses, allowing the rental service to be that much easier. A Service for Every University Environmental sustainability is a hot topic in today’s society. Efforts are being made daily to reduce the carbon footprint of our generation. The marketing team will work to broadcast awareness of this issue on a national scale. Conventional methods of transportation such as: cars, buses, trains emit dangerous greenhouse gases that are detrimental to the environment; however, bicycles are completely sustainable and do not endanger the environment in any way because they do not emit any carbon monoxide. This method of marketing will be successful in targeting millennials because these groups of individuals are the future of the well being of the planet; creating this awareness will allow college students to broaden their perspectives and choose more sustainable options, starting with their transportation methods. Campus Cruise plans to be an extremely flexible service, in terms of convenience and accessibility. Based on campus-size, there will be a number of rental and return stations, giving students the convenience of picking up or dropping off their bicycles at the nearest location; no one will have to go out of their way ever. Next, the service will be open during normal university operating hours and until two o’clock in the morning on Fridays and Saturdays for students who either work late or use the rental service to commute to and from local parties and recreational activities. Finally, convenience will take a step further with multiple payment options for customers. Students will have the choice to pay once a semester on their tuitions
  • 7. 7 when selecting a “Campus Cruise Transportation” option or they may pay on a daily basis after checking in their rented bicycles at the end of their use. Market Description At Campus Cruise, we understand our market is different than the general public market. We are specifically targeting students at colleges and universities to use our service. Although, we do not limit our service to just students, we do also encourage professors to use the campus bike service for their necessities and travel purposes throughout the day. However, the bike service is centrally targeted to the demands and needs of the students. Our marketing strategy strives to reach students in a similar way to how schools reach their students. We would present an informational brochure to incoming students along with their admissions packet, as well as, each year sending the brochure to returning students if they would like to renew the service or sign-up for the upcoming semester. There will also be several media advertisements used to promote this service. There is a plan to release a short PSA or commercial on music services like Spotify and Pandora by utilizing the demographic locations of students at participating or potential campuses for the bike service. This way, we will be able to reach our target market through applications they use on a daily basis. We will also be utilizing social media as a tool to reach our market. With the use of Facebook, Twitter, and Instagram, Campus Cruise will be able to spread awareness about the service as well as engage with students. This is important to have a strong practice of social media since most people in our market utilize this source for information and interaction with other people and companies. With the Campus Cruise accounts on social media, we will be able to develop more recognition of our company, as well as, allow students to be a part of the
  • 8. 8 service. Our video advertisement demonstrates a fun way in how Campus Cruise helps a student out on campus. We will encourage other students of the service to show how Campus Cruise fits into their campus life by posting pictures, sharing stories, or making fun videos. With the use of social media, there will be lots of engagement between users of the service and the company. Benefits and Product Features Many students who attend a college or university, have to deal with the very high prices of a parking permit for their vehicle. Often, these high prices result in students not bringing a car to campus with them during the school year. They then have to rely on other people to transport them or plan around a bus schedule whenever they need to leave campus. Having a bike service that is conveniently located at several places on campus is very beneficial to students who may need the bike to run an errand to the market to pick up some groceries. There is also the aspect of the size of a campus. Typically, dorm rooms are a separate part of campus, far away from the buildings where students attend class. Students may use campus cruise to quickly and efficiently get to class on time. Having this type of transportation may also make students feel safe when going to and from their destination since they can make it their in a shorter amount of time, especially when it is dark outside. With the low-cost of the bike service, students will be able to save what little spending money they have instead of paying more in gas or for bus fare. Other beneficial aspects include Campus Cruise being environmentally friendly and supporting physical exercise with the use of the bike. A small survey was conducted between California Lutheran University students as well as students from other campuses such as UCSB, ASU, Auburn University, CSUCI, UCLA, UCR, CSUN, and Cal Poly SLO. Forty students responded to the survey and within that group it was
  • 9. 9 found that on average they all traveled 72.25 miles per week. This traveling puts a stamp on our carbon footprint, but with Campus Cruise we can reduce this amount, as well as, reduce the cost of gas spent each week, which was $40.50 on average. This service will benefit college students by supporting their limited finances. Service Review Campus Cruise will be conveniently located at each school’s popular areas. In general, there will be bike racks at dorm halls, dining commons, the library, main parking lot or welcoming center of campus, and near the central area of campus where students attend class. In order to access the bikes, students will need to swipe their student identification card to unlock the bike. The identification card works like a key and is also similar to how students would use it for a meal plan. Students who choose to use the service and sign up for a semester plan are able to swipe their card to unlock the bike. After the card is swiped, the screen will show the students name and what time the bike was checked out. Later, they are able to check their Campus Cruise account on their student portal to access information such as, what time they had checked the bike out and when it needs to be returned. They will also be able to check the status of their account whether or not they have a pre-paid plan. Accessing bikes will be an easy process and information regarding the service and students will be very obtainable.
  • 10. 10 Competitive Review and Analysis Main competitors to the service include cars and students who already own bikes. Most people are going to want to use their car over a bicycle since they are faster and less work. However, people will choose to ride the bike in consideration for its positive environmental effects. It is also seen as a fun activity between friends who may want to ride their bikes to the other side of campus for a night event or down the street to the local restaurant. Other competitors are car or taxi services such as Uber, Lyft, and bus services. Although all of these competitors come with a higher price, people tend to use them since they can carry multiple people to a location in a timely manner and to further distances. Knowing what the competition holds, we as a company must focus on our mission and purpose for the service. We will have to really enforce the healthier, environmentally friendly, and cheaper alternative for students’ nearby necessities. Channels and Logistics Review Campus Cruise is a service that will be provided for the school but not by the school. When a University creates a contract with us, we will be agreeing to a partnership but the school will not be receiving any profit made by the service. The company will have a central office located in Thousand Oaks, California where the aspects of business will take place. The service will also have a partnership with the company Divvy, which is the supplier for our bikes.
  • 11. 11 SWOT Analysis Strengths Campus Cruise is convenient and easy to use. Students will have no issue renting a bicycle for personal use. The technology partnership with Divvy will allow the rental process to be quick and stress-free. Payment is also convenient and inexpensive, as students may pay on a daily basis or once at the beginning of each semester. Also, Campus Cruise aims to address ecological issues. If this service were implemented on every college campus, carbon emissions from automobiles would be reduced by a great deal. Marketing is also targeted towards college students as the development team is working with partners such as YouTube, Pandora, and the FCC and Pac-12 networks to run both print and commercial advertisements. Weaknesses Being a start-up company, budgeting for Campus Cruise will be low until investors are found. The majority of marketing will be done on social media which may be extremely successful or a potential failure. As fresh college graduates, there is a lack of experience in the developers of Campus Cruise. Investors may have a difficult time investing in recent college graduates to build a successful start-up company. Opportunities Campus Cruise has the opportunity to target young adults who are passionate about environmental sustainability. Vehicles are the number one source of greenhouse gas emissions globally. Campaigns could be implemented in order to capture this audience. On Earth Day, a huge social media campaign could be designed to raise awareness of sustainability issues with the hashtag #CampusCruiseCleanUp. On this day every year, Campus Cruise will lead a brigade of college students who will collaborate in cleaning up their campuses and surrounding communities. Threats There are countless forms of transportation across the United States. On college campuses, there are already students who have cars, bikes, and utilize public transit. Targeting this market may be a challenge because these students are already comfortable and satisfied with their current mode of transportation.
  • 12. 12 Objectives & Potential Challenges There are definitely other factors that could hinder our success. Many students who use bikes already own their own bikes and won't need to rent ours. Clearly this cuts into the amount of people that will want to rent our bikes. Whether or not students own a car can also impact our revenue. Students who own cars are more inclined to drive places as opposed to biking. Where we believe our service would be the most utilized are short distances like to and from class or the gym. We would also have to focus on schools outside of major cities since many of them already have bike-sharing systems in place. While these companies provide bike rentals they are only in cities and haven’t started expanding to schools. We have high hopes for our company over the next two years. As of 2011 there were 2,870 four-year colleges in the US alone (National Center for Educational Statistics), all of which are potential locations for campus cruise. With so many colleges growing in size every year are market is always growing. Students without a car or bike need some form of transportation and our bikes are an efficient and eco friendly way to get to class, the gym or a grocery store. For CLU in particular, the majority of social functions and parties are located off campus. Our Bikes can provide means of transportation to and from these events as well. I think this is why our business has the opportunity to be extremely successful. Our hope is to have our bike systems in place in five schools in the first year and twenty by the end of the second year. Our goal for revenue in the first year is $250,000. I think this is a very realistic mark to set, especially if we are able to get into five universities by the end of the year. Since it is our first year I believe our best-case scenario would be $50,000 in profit and worst would be to break even. For our second year of business we think our company will expand from 5 to 20 schools. In terms of revenue I believe we will hit $1,000,000 and make $300,000 in profit.
  • 13. 13 Marketing Strategy Campus Cruise is creating a strategic plan that will emphasize our mission statement and goals. Our plan is to create a service of value for our customers and make long lasting relationships with universities. Our focus is college students with low to moderate income, seeking convenient and inexpensive transportation that promotes a healthy life style and is environmentally friendly. Proposal For our service to be successful on college campuses around the country, we have put together a plan for the Campus Cruise marketing mix covering all the important aspects of marketing; positioning, service, price, distribution, and promotion. Positioning Campus Cruise wants to be eco-friendly, inexpensive, convenient, and promote a healthy lifestyle. In taking this position, this is the way we want our service defined by us as well as our target consumers. Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers (Kotler and Armstrong 75). Our marketing team will create a positioning map that will display what the consumer thinks of our service compared to options of transportation. Our first point if attraction for our consumer market is that we are an inexpensive and convenient way to travel. We will maintain a relationship with Divvy to insure the quality of bikes and place the bike racks in areas most convenient to students. To differentiate our service, we will promote being eco-friendly by reducing the carbon footprint of this generation, and promote a healthy lifestyle by getting exercise in an inexpensive and convenient way.
  • 14. 14 Service Campus Cruise is a bike rental service for college students. Students can rent these bikes from several convenient locations around their college campus by simply swiping their Student ID card. We have partnered up with the Divvy bike company who supplies us with the bikes as well as the rental kiosks for a fee and having their logo featured with ours on the bikes and kiosks. Pricing After conducting focus groups and researching the cost of parking passes and other college student travel expenses, we came to two different forms of pricing for our service. The first is for the student to pay up an upfront semester cost of $100, much like the way campus meal plans are set up. The account would be linked to the students’ ID cards and would allow them unlimited access to the Campus Cruise service for the semester with a simple card swipe. The other option for student would be to pay per rental. Students would have the option of renting for a half day at $3 in which bikes must be returned in 12 hours of the rental purchase, and a full day at $5 in which bikes must be returned within 24 hours of the rental purchase. If a student damages the bikes, a charge of $50 will be credited to their student account. If a student does not return a bike or looses the bike, a charge of $500 to replace the bike will be put on their student account. If a student does not pay the charge(s), a hold is placed on their account that does not allow them to register for classes, use the service, or even graduate until they pay back the fine(s). Distribution The bikes will be placed on bike racks, which would be located around the campus for easy accessibility for students. Students will swipe their ID card at the Campus Cruise kiosk and choose how long they wish to rent the bike for. The kiosk would then unlock one of the bikes for
  • 15. 15 the student to use for the charged time. The bike would come with a bike lock for students to use when traveling off campus to lock up their bike at non Campus Cruise bike racks. Once finished with a bike, the student can simply return the bike to any Campus Cruise bike rack, relock it, and receive a confirmation receipt by student email that the bike was returned. Promotion To promote our service, Campus Cruise will work with university relations on campus. We will utilize brochures and advertisement space in the schools’ website and local newspapers. When students receive acceptance packets and registration notices from the universities, we will include a flyer that informs the student of our service and how they can pay an upfront semester cost if they would like. Campus Cruise will partner up with SCC and PAC12 Networks to run commercials during college sporting events to target student views. We would also run demographic commercials and PSA’s on YouTube, Spotify, and Pandora. Using social media sites, such as Facebook, Campus Cruise will run campaigns to engage customer engagement. For example, going along with our emphasis on being eco-friendly, on Earth Day we will run a campaign with the hash tag #CampusCruiseCleanUp in which students post photos and videos how they are promoting an eco-friendly lifestyle, and where they are traveling to using our eco-friendly service. Also, we will make posts about promoting a healthy life style and how riding a bike through Campus Cruise is a part of that life style, such as benefits of cardio workouts.
  • 16. 16 Marketing Communication Strategy Since our target market does not include all consumers, we will not focus on mass- communication advertising. Instead, we are choosing to focus on promoting through the ways listed above as well as using brand representatives and campus relations. Campus Cruise Brand Representatives While conducting market research on campuses, we will find students that are interested in our company to become campus brand representatives for Campus Cruise. We will pay them to promote our service on their campus. Not only will this allow us a way to promote our service but also have new minds to come up with ideas of effective service promotion. We will give out bonuses for brand representatives that are very successful in promoting Campus Cruise as well as those who find effective new ways to promote that we can utilize at other campuses. It provides constant market research without conducting surveys or focus groups. Campus Relations-Public Relations One of the most important aspects to the success of our company is maintaining relationships with universities. As we are a start up company, we need to build these relationships, our company image, and maintain them. In order to do this, we can send out monthly newsletters to the universities about what Campus Cruise is doing to benefit the campuses as well as promote our mission statement. We will also keep a constant line of communication with the campuses regarding any issues they have.
  • 17. 17 Marketing Research We conducted a survey utilizing SurveyMonkey.com as our primary research in order to understand our target market better. We wanted to find out what form of transportation our target market uses, if they would use a more eco-friendly form of transportation and if they would use a bike service. On our survey, we asked students ten questions that we believed would help us gain the information we were looking for from our target market. We reached out using Facebook and student emails from our courses, and had 40 participants in our survey that gave us helpful feedback. We have 60 percent say that they would not utilize a bike service. We noted that the majority of these students attended small campus where it would be more convenient to walk around campus and drive off campus than use a bike. Of the 40 percent who said that they would use a bike service, 95 percent of them came form large universities where it would be more convenient and cheaper to use a bike service than walk or pay for a parking pass. To see the full results of our survey, use the following link or see our appendix: https://www.surveymonkey.com/results/SM-2QDDRHWV/ The following is the link to take our survey: https://www.surveymonkey.com/s/PJ5K5BB For our secondary research, we conducted two small focus groups with our target market. From these focus groups, we were able to determine our two forms of pricing and determine that Campus Cruise would be a better fit on larger campuses.
  • 18. 18 Marketing Organization Our four founding members of Campus Cruise all own an equal part in the company as we all invested in equal parts. Campus Cruise wants to create and establish our company image and will focus on building our marketing department. We will have a Chief Marketing Officer (CMO) who will have five directors reporting to them; Public Relations Director, Market Research Director, Promotion Director, Advertising Director, and Director of Strategic Marketing. Start-Up Assumptions There are always tons of moving pieces that go into starting a business. For Campus Cruise we have the following assumptions. We have talked with CLU’s board of directors and they believe our idea can greatly benefit students and the overall functionality of the campus. We have a budget of $200,000. Approximately $100,000 of this initial budget will go towards purchasing the bikes and the racks and getting them installed on campus. After this the remaining $100,000 will be used to market our service. Also In order for our business to get started as quickly as possible we have
  • 19. 19 partnered with Divvy Bikes who will be our supplier for both the bikes and bike racks. While Divvy will be supplying the equipment necessary for Campus Cruise that is our only association with the company as the rental fees and agreements are through CLU. Divvy is responsible for establishing the bike-sharing program already in place in Chicago. While they are currently only in Chicago, they are interested in expanding and think that we can get into almost every college in the nation. To start we will bring twenty bikes at four conveniently located stations around campus. Depending on how well it is received we will go from there and build more racks and buy more bikes as needed. Divvy Bikes has their own payment program that offers yearly, daily or hourly rental agreements. They have agreed to let us create our own prices so that the bikes are more affordable for the average college student. While Divvy bikes uses member keys or ride codes they have agreed to let us alter the kiosk screens that are installed on the bike racks so that bikes can only be checked out with a student’s school ID as a form of payment. All students need to do is register their ID number with on the Campus Cruise website and then swipe their card at the station and the system will monitor who checks out which bike and will record how long it was used to determine the cost. Budget Our total budget for our first year of business is $200,000. The four of us: Caitlin, Andrew, Jessica and myself are all equal partners contributing $50,000 each. This initial investment will be split in half, $100,000 to be used for purchasing and installing equipment and $100,000 for our first years advertising budget. The $100,000 that will go towards purchasing and installing the equipment is necessary to get Campus Cruise off the ground. For our first location at CLU this includes purchasing twenty bikes, four bike racks that will each hold five bikes, and twenty kiosk screens with ID readers. We
  • 20. 20 have estimated that all of this equipment combined will cost $40,000. Another $10,000 will be needed to get all this equipment to CLU and have the bike racks installed with each kiosk screen attached and linked to the individual bike stall. The remaining $50,000 will be kept in our company bank account so that we will have funds readily available so that we can accommodate the next university that wants to bring Campus Cruise to their school. It is important to have this money available, as it will allow us to expand beyond one school without having to find a way to get more capital. By initially contributing an equal amount of money that allows us to have extra cash as an asset, we are making it so that we won’t have contribute more of our own money, take out a loan or bring in another partner just to expand Campus Cruise to a second campus. Initially we will be relying on our contract with CLU to bring in revenue, but we anticipate it won't take long for another university to see the benefits we can bring to their campus and when they do we can bring our service to them immediately. The other $100,000 will be our first years marketing budget. We have decided that because our company is so new we have to use all forms of media to get our brands name and message to as many people as possible as quickly as possible. Our budget will be divided as such. We spent $10,000 filming and producing our commercial, which will be broadcasted via multiple mediums. A large portion of our advertising budget will go towards broadcasting this commercial on certain TV stations during specific events. We have decided to allocate $25,000 for TV spots. This money will be used to show our commercial during NCAA College football Championship. This will cost us $5,000 for two, one-minute spots. The other $20,000 was used to get our commercial regularly broadcasted on both the PAC 12 Network and The SEC Network. This deal will get us five; one-minute spots a week for the next year on both networks. These TV ads will be viewed primarily by our target market of college students as both of these networks only broadcast news and sporting events that relate to those NCAA conferences.
  • 21. 21 Apart from TV we wanted to advertise online and on aps. We decided that for our target audience the best places to start would be YouTube and Pandora Radio. We will use $10,000 for our ad to be shown on YouTube. With this our ad will pop up and either play prior to the start of the video or our logo will appear on the side of the screen. This investment ensures that our ads will be seen anytime someone searches videos relating to universities or college sports. We will also be using another $10,000 to have our PSA air on Pandora Radio. This will help to broaden our reach as students everywhere use Pandora. Our PSA will give a brief overview of our service and provide information on how to contact us in order to bring Campus Cruise to their school. Another media form we believe will benefit our company is print and we have chosen to spend $10,000 on print media. Our focus will be on printing flyers and pamphlets with important information about our company and its mission. These flyers will be passed out and hung up on college campuses. Initially we will start by going to colleges in the Los Angeles area as we can personally cover that territory. As the owners we are the most knowledgeable and will be able to give the most accurate description of how Campus Cruise can benefit each school. We decided that school newspapers are a great way to reach students and get them to sign up for our bike sharing program once we have established our service on the campus. This can be a good way to expand as well. If we are able to get ads in newspapers of schools that we haven’t convinced to join the Campus Cruise family, students might see our ads and gain interest in our service and advocate for it to be brought to their university. For Social Media advertisements we set aside $10,000. We would start by creating a Facebook page. $1,000 is going towards boosting our posts regarding important events special deals. With this Facebook will make sure that people in certain areas see our posts even if they haven’t liked our page. The rest of the money will go to paying brand reps that we find when doing market research at different schools. These individuals will be people that show a significant interest in our company. Based on
  • 22. 22 how well they promote Campus Cruise and if their university chooses to start using our bike sharing system they will be paid for the work they do. Since we are just starting this business it is essential for us to understand our target market. There currently are no other companies that do what we do so we have no way of know the potential for growth in the market. We have decided to dedicate $25,000 of our budget to doing research on which schools we could be both beneficial and profitable. This would cover our expenses to travel around the country to different schools. We would be trying to find which schools would be the most open to having Campus Cruise on their campus. The money will also be used for focus groups. We need to set up environments where we can talk to students and gauge their interest and the overall opportunity for profit. Conclusion Campus Cruise will be the newest form of transportation seen on college campuses throughout the United States. The service helps create a healthier, environmentally friendly, and cheaper alternative to transportation for students on and around campus. Campus Cruise not only provides these abilities, but also adheres to students who do not even have the option for an alternative. Our company and service hopes to soon equip many schools with these bicycles to fit in with the lifestyle of the modern college student.
  • 23. 23 Appendix Do you live on or off campus? 35% On Campus 65% Off Campus By what form of transportation do you travel? 82.5% Car 5% Bike 5% Public Transportation 7.5% Walking Where do you travel on a daily/weekly basis? 80% School 55% Work/Internship 30% Gym 25% Other Would you consider a more environmentally friendly form of transportation for local trips? 80% Yes 20% No Male or Female? 22.5% Male 77.5% Female What school do you attend? 27 CLU 2 Moorpark College 1 UCLA 1 CSUCI 1 UCSB 1 Cal Poly Pomona 1 Cal Poly SLO 1 UCSD 1 CSUN 1 UC Riverside 1 Auburn University 1 New School of Architecture and Design How far do you travel on a weekly basis? 16: 2-50 miles 24: 51 miles and above How much do you spend on travel every week? 32:$0-$40 8: $41 and above Would you use a bike service on campus if it were available to you? 16 Yes 24 No
  • 24. 24 References http://youtu.be/8dpWS_0nv_A (Song) PSA for internal marketing. Campus radio. Advertisement for on campus TV and on student portal. http://www.peopleforbikes.org/statistics/category/environmental-statistics http://www.climatecentral.org/news/bike-sharing-complicated-climate-impact-17910 Book online: http://www.scribd.com/doc/226094315/Kotler-Philip-Principles-of-Marketing