Free Essay

Zen Mobil

In: Business and Management

Submitted By LuiseNajib
Words 3307
Pages 14
Table of content

Introduction 3 Overview of Jakarta 4 The International Marketing Mix 5 Product 5 Place 7 Pricing 8 Promotion 9 The market entry strategies 10 Conclusion: 11 Final remarks 11 Bibliography 12

Introduction
As a second year Marketing student from the Katholieke Hogeschool Leuven, I wrote this paper in the context of the comprehensive assignment II. This assignment is an educational subject that belongs to the fourth semester of the bachelor Businessmanagement in Marketing. This comprehensive assignment was given to the students to learn and understand about the basic principles of international marketing.
Each student was assigned to make a plan for a Belgian company that wants to export its product to another country.
I recently got back from a long stay in Jakarta, the capital city of Indonesia. During this stay, I was confronted by the biggest problems of Jakarta. Which is traffic jam, pollution, parking and high car expenditure.
Jakarta has a bad reputation for having some of the worst traffic-jams in the world. (www.thejakartaglobe.com)
Belgium on the other hand is more environmentally friendly than ever. Smart mobility solutions have expanded in the past couple of years.
So I decided to write an export plan for the Belgian company Zen Car. It’s a company with a new concept of green mobility. Its system of sharing electric, silent and non-pollutant cars is simple and practical.
Zen car in Jakarta is the topic of this assignment.
This might be one of the answers to Jakarta’s transportation problems.
This paper starts with an overview of Jakarta and its international marketing environment. The second part is the international marketing mix. In this part I will define the optimal 4 P’s (product, promotion, place and price) of Zen Car in Brussels and how they could be adapted to Jakarta. The last part is the market entry strategies. In this stage the advantages and disadvantages of the exporting strategies will be evaluated.
This paper will examine how this marketing strategy could be adapted for Zen car in Jakarta.

Overview of Jakarta
Jakarta is the capital and largest city of Indonesia, a country with a population of 230 million. Jakarta is located on the northern coast of West Java. Jakarta has a population of over 9.5 million people and has known a high increase of population over the last decade. During daytime the population can increase to 11 million people due to commuters from other region.
Jakarta is the most populated city in South East Asia. Jakarta is the country’s economic, cultural and political center. It is the center of the government activities, commerce and industry and has a large communication network with the rest of the world.
The official language is Bahasa Indonesia. But in Jakarta, English is often spoken in international and business contexts.
Jakarta is known for its failing transportation situation.
It has about 6.7 million vehicles with an increase of 1172 vehicles a day. 98 percent are private vehicles serving 44 percent of the trips and 2 percent are public vehicles serving 56 percent of the trips.
This shows that Jakarta has a lack of public transportation. Due to the time that people have to stand in line when taking the bus, they 6prefer taking their own car. The high amount of cars and traffic cause high emission rates and therefore air pollution in Jakarta is a serious problem.
According to the pollution index for 2013, Jakarta is placed on the 6th place of the world’s most polluted cities.
It is time to improve the efficiency of the transportation and find a solution for these problems that Jakarta is facing today.
At the moment, interest in green technology and cheaper solutions is growing. The government even has plans for the production of electric vehicles. The minister of state-owned enterprises, Dahlan Iskan, is stimulating a program for the production of electric cars.
The electric car seems like a great idea to save money as well as the environment in the country. (Dahlan Iskan)

The International Marketing Mix
Product
The company Zen Car is supported by the Société Régionale d’investissement de Bruxelles (SRIB). Zen Car is a Belgian company launched in March 2011 in Brussels and has had lots of success. It is a car-sharing service company that offers a range of 4 different kinds of electric cars. It enables electric cars to be used by its members on short-term. Within their range the well-designed Tazzari Zero car is the most popular model. This model is produced by the Tazzari Group in Imola, Italy. It’s a two-seated 100% electric car with a maximum speed of 100km/h and no CO2 emission. The car drives on Lithium-ion Fe batteries that require a charging time of 5 to 12 hours. This battery delivers a range of 140 kilometers. The vehicle can be booked by Internet. Zen car members can access their electric cars 24/7.
The vision of Zen Car is to create a more sane urban area and reduce the impact of cars on public areas. Their mission is to give the clients the benefit of using a car without owning one and help them save time and money, while preserving the environment.
A Zen Car has several advantages for the environment. It helps reducing pollution and CO2 emissions by reducing the number of cars on the road. Each car-sharing Zen Car replaces about 8 private cars.

This car-sharing concept works very well in Brussels and could also offer benefits for the people in Jakarta. The concern for environmental issues in Jakarta is growing now as people are becoming more aware of the problems. But most of the people in Jakarta still choose for the cheapest way to travel with the shortest time of waiting. The citizens need to know that a car sharing system can contribute to solving Jakarta’s transportation problems.

However, in order to introduce a car sharing system in Jakarta, we have to be aware of the local situation: standardizing the product and the concept in Jakarta could be difficult because they could be affected by the different expectations of the clients. We therefore have to study the situation first in order to meet the needs of the people in Jakarta. Providing a solution for Jakarta’s problems is the key.
For example: The average weather temperature in Jakarta is higher than in Brussels. The car needs tinted windows to reduce the heat inside of the car.
The process of booking on the internet is not so familiar in Indonesia. Booking by phone should still remain a possibility.
The crime percentage in Jakarta is still high according to the crime and safety report of Jakarta in 2013.
This shows, that we should also be concerned about theft prevention. We could consider installing a GPS-tracking device in the cars that is connected with a system that has the ability to shut down the engine from the center. This way, if the car gets stolen, it can be quickly recovered.

The brand name is important for a product or company to be recognized. It should be easy to pronounce and people need to understand the name. Zen Car is a good name but it is differently pronounced in the Indonesian language. That’s why the name should be changed to Zen Mobil. Mobil means Car in Indonesian and it could also be linked with the idea of Zen Mobility.
Zen Mobil could be positioned as ‘the first green electric solution of mobility in Jakarta’.

Place
The driver needs to be older than 19 and in possession of a category B driving license for at least 2 years.
Drivers who are interested in taking part in the system have to go through a four step procedure: First they have to join Zen Car by going on its website. Once the person is registered he will receive a membership card at home. With this card and ID he can book a car for the time needed on the website. Then he can go to the Zen Car parking station, unlock and drive the car. After the ride the person needs to return the car to any Zen Car station and park it on a Zen Car parking spot.
Zen Car has its stations throughout the center of Brussels. The firm uses a direct distribution channel. Zen Car is a specialty distributor where members can rent their car in self-service. So far there are 23 stations available, 8 in interparkings and 15 on the streets.
The Zen Car stations are strictly meant for parking and charging the Zen Cars.
Since Jakarta has a high-flood risk, the cars should be stored safely in parking stations, which are located in a higher secured area.
It’s not interesting to put Zen Mobil parking stations on the streets, but shopping malls do have high ground parking spaces.
Shopping malls play an important role in the social-life of the inhabitants of Jakarta. There is at least one in every region of the city. At this moment, there are 24 shopping malls just in the center of Jakarta. They are not only serving as a commercial center but also as a meeting point. People even call them the city within the city. It’s definitely interesting to place parking stations in these malls but also in the most busy area of Jakarta, the business area. People should easily be able make use of the Zen Mobil to go to work.

Pricing
In Brussels, the members of Zen Car car-sharing only pay for the hours they use the car. There is no limit to the number of kilometers that are made.
Currently, Zen Car offers 3 different rates for the 2 seats car. Firstly, there is the discovery and exploration rate that is only reserved to all new members. It’s valid for 3 months without any commitment. There is a registration fee of €40 and an hourly rate of €9. Secondly, they have the classic rate with the same registration fee of €40. With this rate there is an extra monthly subscription fee of €6. The hourly rate from 7h00 to 0h00 is 7eur and from 0h00 to 7h00 is €5. There is also the possibility to rent a car for a whole day for €49.
With the registration there is also an excess cost of €600. This is a part of an insurance claim to be paid.
There are a several aspects that could influence the price when a product or service is exported. The cost of living in Jakarta is lower in comparison with Brussels. But it is Indonesia’s most expensive city. The currency of Indonesia is Rupiah and €1 is equal to Rp 13.848.
Zen Mobil won’t be interesting for the Indonesians, if they need to pay the hours they use. Drivers can be stuck in traffic for hours in Jakarta. That’s why it should be adapted to a rate based on the number of kilometers made with the Zen Mobil. Zen Mobil is an unknown and new concept in Jakarta. This also means that research and development costs will be higher. In order to recover these costs, a skimming strategy is a good method to enter the market. Starting with high prices and adjust it as the competition increases.
I believe that a competition-oriented approach is a good strategy to begin with. The biggest competitor on the transport market is the silver bird taxi. Their tariff starts at Rp 15.000 and increases with Rp 6.000 per kilometer.

Promotion
Promotion and communication is needed to build long-term customer relationships. Zen Car in Brussels uses social media websites like Facebook and Twitter to communicate in an interactive way to its customers. This communication tool is a great way to receive direct feedback from the customers. Therefore it should also be applied for Zen Mobil.
The objective is not only to attract people to become members but also to build a good relationship so they would become fans.
Zen Car uses two strategies for promoting their car-sharing service: a push and pull strategy. A push strategy means giving information about the cars or car-sharing concept. They could do this by sharing it on their Facebook page or giving flyers to drivers during traffic jam or to people entering office buildings.
The way to attract the people to become a member is by making sales promotions. An example for the pull strategy: giving a 50% reduction on the membership for all the citizens of the area where a new parking station has opened. They could share this message on their Facebook profile and place billboards in the area. A promo code will be shared in this message where potential customers could insert it when registering.
Online marketing is a good and cheap way to create brand awareness.
Zen Mobil can make informative video clips about their concept and post in on Facebook and Twitter. People will be convinced to like and share the video on their profile to make a chance to drive the Zen Mobil for one whole day. When it’s shared on a person’s profile, it will lead his friends to see and learn about the Zen Mobil as well.
A promotion example for the existing members is that they can receive a free first hour ride when they’re parked in one of the Zen Car stations mentioned on Facebook.

The market entry strategy
The best option for Zen Car in order to enter Jakarta’s market is the cooperative strategy, joint venture. Sharing its ownership with a local company is the best way to enter Jakarta’s market, which will create a huge advantage in increasing the speed of market entry. A local joint venture partner has better business and government contacts and is often very essential for success in this market. Zen Car could share its ownership with an electricity company that is also environmental friendly and wants to create brand awareness and a better image.
The advantages are that, first, Zen Car has more direct participation in the local market and could understand better how it works. It could also increase control over the company.
The disadvantages exist when both companies have different aims and objectives. This could lead to disagreements over the strategies and will create delays and failures. It is important that both companies have the same vision and mission.
Finding a good partnership in Indonesia is not easy. Personal relationships and mutual understanding is very important for Indonesians. Partnerships are based on written contracts. But it is necessary that the agreements be well understood by both sides. Disagreements can cause problems in the future.
The Indonesian government can be involved because they control the access to the market in Jakarta. They can adapt their policy for Zen Car since it is bringing an advanced technology and is willing to make a major investment.
The disadvantage of this is that it could limit the influence on management and operation of Zen car.

Conclusion
This assignment started with Jakarta’s transportation and pollution problems.
Zen Car has definitely the potential of exporting their car-sharing system to Jakarta to solve the problem. But several things should be taken into consideration.
The international marketing mix shows that the product and name should be adapted. In order to introduce a car sharing system in Jakarta, we have to be aware of the local situation: standardization with adaptation of the product, place, promotion and pricing is important to meet the needs of the people in Jakarta.
After finalizing the marketing mix, the market entry strategy can be developed. Joint venture is the best option for Zen Car in order to enter Jakarta’s market. Sharing its ownership with a local joint venture partner offers plenty of advantages.

Bibliography
Internet
Transportation in Jakarta. (2011), Consulted on 14 February 2013, on www.asianhumannet.org
Trade Expo Indonesia. (2013), Jakarta Facts, Consulted on 14 February 2013, on http://www.tradexpoindonesia.com/jakarta-facts
Overview of Indonesia. (2013), Language, Consulted on 14 February 2013, on www.expat.or.id
Jakarta Local Government, Jakarta urban transport problems and their environmental impacts, Consulted on 14 February 2013, on www.ui.ac.id/download/apru-awi/jakarta-local-goverment.pdf
Numbeo. (2013), Pollution index 2013, Consulted on 14 February 2013, on www.numbeo.com/pollution/rankings.jsp
Okezone. (2012), Mobil Listrik Paling Hanya Isi "Bensin" Rp50 Ribu, Consulted on 15 February 2013, on www.economy.okezone.com
Zen Car. (2013, The Cars, Consulted on 17 February 2013, on www.zencar.eu
Tazarri Zero. (2013), Consulted on 17 Februari 2013, on www.tazzari-zero.com
Zen Car. (2013), 4 Good reasons for using a Zen Car, Consulted on 17 February 2013, on www.zencar.eu
OSAC. (2013), Indonesia 2013 Crime and Safety Report, Consulted on 17 February 2013, on www.osac.gov
The Guardian. (2013), Jakarta faces up to a high flood-risk future, Consulted on 17 February 2013, on www.theguardian.com

Zen Car. (2013), How does it work, Consulted on 18 February 2013, on www.zencar.eu

Zen Car. (2013), How much does it cost, Consulted on 18 February 2013, on www.zencar.eu

XE. (2013), The Indonesian currency rate, Consulted on 18 February 2013, on www.xe.com
Blogdetik. (2013), Transportasi Jakarta, Consulted on 17 February 2013, on http://trans.blogdetik.com/index.php/tarif-taksi-di-jakarta/

Zen Car. (2013), Renting your electric vehicle near you, Consulted on 18 February 2013, on www.zencar.eu/en/station.cfm

Doing Business in Indonesia. (2012), Country commercial guide for U.S. Companies, Consulted on 18 February 2013, on http://export.gov/indonesia/static/2012%20CCG%20Indonesia_Latest_eg_id_050874.pdf

Books:
Doole, I. and Lowe, R., (2004) International marketing strategy, South-Western Cengage Learning

--------------------------------------------
[ 1 ]. Transportation in Jakarta. (2011), Consulted on 14 February 2013, on www.asianhumannet.org
[ 2 ]. Trade Expo Indonesia. (2013), Jakarta Facts, Consulted on 14 February 2013, on http://www.tradexpoindonesia.com/jakarta-facts
[ 3 ]. Overview of Indonesia. (2013), Language, Consulted on 14 February 2013, on www.expat.or.id
[ 4 ]. Jakarta Local Government, Jakarta urban transport problems and their environmental impacts, Consulted on 14 February 2013, on www.ui.ac.id/download/apru-awi/jakarta-local-goverment.pdf
[ 5 ]. Numbeo. (2013), Pollution index 2013, Consulted on 14 February 2013, on www.numbeo.com/pollution/rankings.jsp
[ 6 ]. Okezone. (2012), Mobil Listrik Paling Hanya Isi "Bensin" Rp50 Ribu, Consulted on 15 February 2013, on www.economy.okezone.com
[ 7 ]. Zen Car. (2013, The Cars, Consulted on 17 February 2013, on www.zencar.eu
[ 8 ]. Tazarri Zero. (2013), Consulted on 17 Februari 2013, on www.tazzari-zero.com
[ 9 ]. Zen Car. (2013), 4 Good reasons for using a Zen Car, Consulted on 17 February 2013, on www.zencar.eu
[ 10 ]. OSAC. (2013), Indonesia 2013 Crime and Safety Report, Consulted on 17 February 2013, on www.osac.gov
[ 11 ]. The Guardian. (2013), Jakarta faces up to a high flood-risk future, Consulted on 17 February 2013, on www.theguardian.com
[ 12 ]. Zen Car. (2013), How does it work, Consulted on 18 February 2013, on www.zencar.eu
[ 13 ]. Zen Car. (2013), How much does it cost, Consulted on 18 February 2013, on www.zencar.eu
[ 14 ]. XE. (2013), The Indonesian currency rate, Consulted on 18 February 2013, on www.xe.com
[ 15 ]. Blogdetik 2013, Transportasi Jakarta, Consulted on 17 February 2013, on http://trans.blogdetik.com/index.php/tarif-taksi-di-jakarta/
[ 16 ]. Zen Car. (2013), Renting your electric vehicle near you, Consulted on 18 February 2013, on www.zencar.eu/en/station.cfm
[ 17 ]. Doole, I. and Lowe, R., (2004) International marketing strategy, South-Western Cengage Learning
[ 18 ]. Doing Business in Indonesia. (2012), Country commercial guide for U.S. Companies, Consulted on 18 February 2013, on http://export.gov/indonesia/static/2012%20CCG%20Indonesia_Latest_eg_id_050874.pdf

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Exxon Mobil Merger

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