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Product and Distribution Strategies From

Last reviewed: May 25, 2013 ~3 min read

Product and Distribution Strategies

From Case Study 11.3, analyze the direction ZipCar has gone with this marketing strategy and its goal of supporting a sustainable environment. Provide examples with your response.

ZipCar saw the market gap where student required safe transport during adverse weather conditions or when they have excess back load in the university. They saw the need to provide cheap, electronically enabled, and economic cars with full insurance and parking fees. They tailor-made the solutions to a specified clientele: students. The ZipCar strategy was to improve on what others had done and incorporate into their new service. Car sharing was popular in Europe, and ZipCar brought the idea to U.S.. ZipCar has further embraced technology using the Zip-card to pay the $35 fee to use the car. They also went to defined universities where students use skates and a bicycle as means of transport (Capon, 2009).

ZipCar also conducted a research that was aimed at answering all the questions and concerns about their move. This helped them in revealing their competitor's weakness: $400 annual parking fees, expensive gas, and insurance against zip's $35 dollars for the same package inclusive of 180 miles driving allowance per day. The goal of reducing waste and saving energy was a way of cleaning the environment and providing cheaper services. Emotion from cars and noise would cause the university lots of noise and air pollution hence the strategy worn the administration on the pollution mater and students on the cheaper costs (Boone & Kurtz, 2011).

Using the Internet choose one airline and one hotel chain that offer customer loyalty programs. & #8230;.. Then, determine what practices you would employ to your business to foster loyalty.

The Australian airline has rolled out a Qantas frequent flyer program (QFF) to rewards it frequent fliers with points. The points are used to shop in third party organizations such as Woolworths, car hire and banks (Worthington, 2013). Qantas allows customers get seats with incentive to rebook their flight. This with aim too maintains points balance, access lounges, and high treatment. On the other hand, Omni hotels and Resorts have an Omni reward program where members get Wi-Fi shoeshine, beverage delivery as complementary services. Global privileges to over 300 luxurious hotels (Omni, 2013).

Both organizations enjoy a massive customer base 8.6 million for airline and 1 Million for Omni hotels. Both loyalty programs encourage customers to spend more on their services in order to get rewards. In this case, staying twenty night guarantees one a free night. In the airline frequent flyers, points are credited to them and can be redeemed in Woolworths or used for booking seats (Worthington, 2013). The two organizations get to partner with other companies to offer their loyalty programs to their clients like the airline has collaborated with Woolworths while the hotel has partners with more than 300 hotels to offer you their guest loyalty program (Omni, 2013).

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References
3 sources cited in this paper
  • Boone, LE & Kurtz, DL. (2011). Contemporary Business. New York, NY: John Wiley & Sons
  • Capon, N. (2009). Capon's marketing framework. London: Wessex Publishing
  • Goodman, M. & Dingli, SM. (2013). Creativity and Strategic Innovation Management. New York, NY: Taylor & Francis
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PaperDue. (2013). Product and Distribution Strategies From. PaperDue. https://www.paperdue.com/essay/product-and-distribution-strategies-from-90910

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