This presentation includes a strategy for Zoomcar that can help the company to expand its operations in one of the tier-two cities, here, Kochi. Zoomcar owns a fleet, which makes it an asset-heavy model that requires plenty of capital, slowing growth. Crowdsourcing through Zoomcar Associate Program (ZAP) will help Zoomcar add vehicles to its fleet without having to purchase more cars and without the hassle of maintenance and storage. It will also help them balance demand and supply.
2. 2
Zoomcar owns a fleet, which makes it an
asset-heavy model that requires plenty of
capital, slowing growth.
Launch ZAP
OUR RECOMMENDATION
Crowdsourcing through Zoomcar Associate
Program (ZAP) will help Zoomcar add
vehicles to its fleet without having to
purchase more cars and without the hassle
of maintenance and storage. It will also help
them balance demand and supply.
WHY KOCHI ?
Tourist
Destinations
in and
around Kochi
Established
IT/ITES industry
with young crowd
having disposable
income
Presence of
Zoomcar will
enable it to
introduce ZAP w/o
having to build it
from scratch
3. 3
DRIVERS FOR SEGMENTATION
▰ Many people in Kochi would have a second car available to be leased as a part
of the ZAP program
▰ There are many families where the car owner is working abroad and the car is
maintained just for their own use during 1/2month(s) of vacation. This pool
must be readily available for lease. These cars can be pooled for about 10
months from Kochi and many cities/towns in Kerala
▰ People like to have different vehicles for different occasions (A small car to go
to work but a large one while going out with extended family)
▰ Some youth like driving variety of cars
▰ There are many who don't need a car for every day use but need it
occasionally (College students/working bachelors)
▰ Many people prefer not to have an unknown driver with them, especially while
they travel with family and friends
▰ Bus/rail connectivity of Kochi with cities like Bangalore, Chennai, Mysore is
not great especially during rainy season
▰ With many tourist spots in and around the city, many people
would like to self-drive
5. ZAP ASSOCIATES
5
END USERS
TARGETING
ZAP ASSOCIATES
Tourists travelling to
and from Kochi (3.2
Million in 2015)1. Often,
it’s their first time in the
city, so, it is a great
possibility of loyalty
creation which eventually
leads to creation of a
positive buzz.
Tourists
Small segment.
Business customers
“tell” references
leading to future
contracts. Often
companies rent a
significant number of
vehicles (corporate
contracts).
Corporates
They use the
vehicle on a temporary
basis. They often demand a
low price and recommend
the company to friends and
family if they are happy
with the service.
Youth
Lessors
Potential
BuyersA guaranteed money-maker
that utilizes the idle capacity of
their vehicle(s). They choose when
they want to drive the car and when
they want to share it. CADABRA lets
them track their vehicle’s health
while it is away from them.
Enabling people to buy
their dream vehicle and
letting the vehicle not only pay for
itself but also generate income.
1 Source: Kerala Tourism
6. 6
COMPETITIVE ANALYSIS
Parameter Zoomcar
Cochin Car
Rentals
AVS Cars
Rate for 1 day rental INR 2280 INR 1600 + Taxes INR 1080 + Taxes
Free Fuel Yes No No
Payment methods
Digital Wallets/ Online/
Card/Cash
Cash/Online Cash
Ease of booking
(1-Bad 5-Excellent)
5 3 2
Website/app Evaluation
(1-Bad 5-Excellent)
5 3 2
IoT platform Yes No No
Insurance coverage Yes Not specified Not specified
Combo Offers No Yes No
Own fleet Yes Yes Yes
Aggregated fleet Suggested to launch No No
Presence National Local Local
*Data based on our primary research. The competitors are highly localized.
7. 7
ZAP
EXPANSION STRATEGY
▰ City level promotions (billboards,
events, local newspapers)
▰ Personal selling for ZAP (meeting
with potential lessors)
▰ Targeted online advertising
(target expats at their current
locations)
PROMOTIONS
▰ Total population of Kerala = 33.4 Million1
▰ Total population of Kochi City = 0.63 Million2
▰ NRIs from Kerala = 1.63 Million3
▰ Estimated NRIs from Kochi = 36 Thousand
▰ Estimated number of personal cars in Kochi =
50 Thousand (Calculated from vehicular data provided
by MDA, Kerala with year-on-year increase approximated at
5% which in-turn is calculated by using the available data
from 2012, 2014 and 2016)
▰ Estimated lessor market (NRIs only) = 1200 Cars
(Assuming 40% of the NRIs own leasable cars)
Note: This is an estimate for the NRIs from Kerala. If we factor
in the domestic residents who would be willing to lease their
cars, the market size would be much bigger.
1 http://www.census2011.co.in/census/state/kerala.html
2 http://www.census2011.co.in/census/city/459-kochi.html
3 http://www.newindianexpress.com/states/kerala/2017/apr/25/nri-deposits-in-kerala-see-growth-in-time-of-depression-
1597345.html
Launch ZAP &
promotional
activities
Jan
2018
Add 10% of the potential
cars in Zoomcar’s fleet and
promote the self-driving
model aggressively
Apr
2018
Add 25% of the potential
cars in Zoomcar’s fleet
and attempt further
expansion
Oct
2018