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South Bend Bike Share Presentation
- 1. Bike Share South Bend Blake Barens, Katie Higgins, Shannon Roney & Noah Wilson
- 2. AGENDA Strategy ▸ Segmentation ▸ Target Market & CLV/CLROI ▸ Resonating Focus Value Proposition Tactics ▸ Product ▸ Price ▸ Place ▸ Promotion 2
- 4. SEGMENTATION STRATEGY 4 Total Market ▸ Consists of all possible customers ▹ People in need of transportation in the South Bend area Market Segmentation ▸ Segmented by differences in behavior ▸ 3 major segments: ▹ College Students ▹ Local Residents ▹ South Bend Visitors Segment Selection ▸ Measurable? ▸ Differentiable? ▸ Reachable? ▸ Profitable? ▸ Relevant?
- 5. TARGET MARKET 5 College Students in South Bend Area ▸ About 20,000 students ▸ Younger population ▹ More open to biking as option for transportation ▹ In better physical shape making biking more possible ▸ Travel shorter distances than other segments ▸ Less access to other forms of transportation ▹ Only 29% of ND students have a car on campus ▸ Price Conscious
- 6. Gross Margin $130.74 & 67.81%: $ value customer generates in a year. Divide by revenue to get GM% Relationship (yrs) 4 years: average amount of years it takes student to graduate college Retention Rate 75%: went with very general estimate, 1-attrition rate Interest Rate 10%: the percentage used for discounting Total Marketing Expenditures $5,000: Total of pre & post-launch promotions in a year Total Customers Acquired 1,000: Number of customers gained over the course of a year CLV & CLROI 6
- 7. $317.00 Customer Lifetime Value $63.42Customer Lifetime Return on Investment $5.00Acquisition Cost 7 $1,268,413Expected profits from all acquired customers over 4 years
- 8. RESONATING FOCUS VALUE PROPOSITION StudeBikes© is a uniquely designed transport-sharing system that gives the entire South Bend community access to bikes. StudeBikes are a health-conscious and environmentally friendly alternative to other forms of transport. Its distinctive technology allows riders to easily rent and drop off bikes at docking stations. The docking stations are placed in various popular hubs around South Bend, providing a convenient, economical, and safe way to navigate the city. 8
- 9. TACTICS The 4 P’s: Product, Price, Promotion & Place 9
- 10. StudeBikes ▸ Smart Docks ▸ Partner with local bike shops for service ▸ Leasing Model ▹ Less upfront cost = less risk PRODUCT 10
- 11. 11
- 12. Operated by Zagster ▸ Does business in many similar midwest communities ▹ Carmel, Fort Wayne, West Lafayette, Huntington, Flint MI ▸ Full service model with next-gen technology ▸ Helps plan, build and operate program ▹ Less risk for City and contributors PRODUCT -Operations- 12
- 13. System ▸ 10 Stations ▸ 100 Bikes ▸ Pricing Comparisons ▹ Purdue ▹ Carmel ▹ Indianapolis ▹ Columbus PRICE Pricing ▸ $4 per hour ▸ $10 per day ▸ $30 per month ▸ $80 annual membership ▹ Encourages students and frequent riders to get monthly or annual membership ▹ High hourly prices for one time riders (like on football weekends) 13
- 14. Indianapolis ▸ 26 stations / 250 bikes ▸ $2/hour, $8/day, $35 annual membership ▸ Launched in 2013 ▸ Funded by Herb Simon Family Foundation ▸ Operated by Indianapolis Cultural Trail, Inc., B-Cycle PRICING COMPARISONS Purdue/West Lafayette ▸ 13 stations / 50 bikes ▸ $35 annual membership ▸ Launched fall of 2015 ▸ Funded by grant given to Purdue University by the Alcoa Foundation ▸ Operated by Zagster 14
- 15. Columbus ▸ 8 stations / 78 bikes ▸ $8/day, $20/month, $80 annual membership ▸ Launched in May 2016 ▸ Funded by Columbus Regional Health and the Parks Foundation ▸ Managed by the Parks Foundation ▸ Operated by B-Cycle PRICING COMPARISONS Carmel ▸ 10 stations / 80 bikes ▸ $3/hour, $15/month, $75 annual membership ▸ Launched in 2015 ▸ Cruisers and Trikes available ▸ Operated by Zagster 15
- 16. Stations ▸ Get/return bikes from 1 of 10 docking stations ▸ 10 stations across South Bend ▹ 4 different college campuses ▹ Downtown ▹ Other points of interest ▹ Almost all docks off-street on sidewalks ▸ Docking stations have “maximum security, minimum space” PLACE 16
- 17. 17PLACE -StudeBikes App- Riders pay for bike use through mobile app Bluetooth technology will unlock bikes Ticket dispenser for those without a phone
- 18. PLACE -Dock Locations- 18 Eddy Street Commons “Main Circle” - Notre Dame
- 19. PLACE -Dock Locations- 19 North Quad - Notre Dame “Apartment Row” - Notre Dame
- 20. PLACE -Dock Locations- 20 Saint Mary’s College Holy Cross College
- 21. PLACE -Dock Locations- 21 Downtown - Riverwalk Downtown - Washington/Michigan
- 22. PLACE -Dock Locations- 22 Downtown - Western/Lafayette IUSB
- 23. Project Launch ▸ May 4th, 2018 ▸ Free rides on May 5th to encourage ridership Pre-Launch Promotions ▸ Advertising Campaign ▹ Printed signs throughout South Bend area ▹ Signs at dock station locations 2 months in advance saying “StudeBikes: Coming Soon” ▹ Social media accounts - Instagram, Facebook, Twitter ■ All owned accounts, no paid or sponsored ads ▹ University Campaigns ■ Work with students organizations like SAO to create events and buzz on campus ● At Notre Dame, could be An-Tostal event like “Tour de Notre Dame” ▹ Launch Party - May 4th, 2018 - 6pm - River Walk downtown ● Food trucks, ribbon cutting, inaugural rides 23PROMOTION
- 24. Post-Launch Promotions ▸ Post-Launch Promotions ▹ Free Rides Saturday, May 5th ▹ StudeBike “Street-Team” ■ Attend events in SB area ■ Give away promotional gear like water bottles, keychains, discount codes (10% next ride) ▹ Fitness Challenge ■ Challenge riders to ride the most miles in the month of June ■ Winner receives free month membership ▹ Active in Welcome Weekends for Colleges in August ■ Street-team appearances, ads placed in orientation packages 24PROMOTION
- 25. FINAL THOUGHTS 25 ● Strongly targeting college students in area ○ 20,000 consumers in our target market ● Highly seasonal business ○ Favorable weather *usually* in months of April to October ● Seek to maximize ridership and mileage during warmer months ○ Heavy Street-Team advertising ○ Heavy social media usage