What Is ZMC?

ZENN Motor Company
Introduction

The company that has been chosen for this case study is ZENN Motor Company (ZMC). This Toronto based company was founded by Ian Clifford under the name Feel Good Cars Incorporated. Being the brainchild of the idea of getting drivers a “quality urban transportation solution” would positively impact the environment and reduce vehicle cost. ZMC was able to create a vehicle that emit little to no emissions called the Zero Emission No Noise or ZENN for short. Through various methods of marketing and being successful showcasing the ZENN vehicles, Feel Good Cars became ZENN Motor Company (ZMC). This achievement is merely the beginning for ZENN, from thereon the company success is noted with influential
customers and well played out strategy with different partners.
This report is used to determine and analyze the practice of applying marketing principles of ZMC in creating customer value as in its initial success. Information introduced below is based on gathering ZMC’s information in the book Principle of Marketing of Kotler, Armstrong, Cunningham, and Trifts (2011, p. A2-A9) together with the lectures and knowledge of chapter 1-4 and 18 of the same book. The analyzing is divided into five parts, consequently to the order of five chapter contents which are ZMC’s definition about marketing, Strategy in building Customer relationships, marketing environment, sustainable marketing, and competitive advantage.

Chapter 1: Definition Marketing, Marketing Strategies, and Crucial Relationships

The text book mentioned that ZMC made it definition and it involve into two stages. The “first stage was to build awareness of product among consumers and retailers. The second stage was to build the corporate brand, get the company’s name out into the marketplace, and establish the company’s credibility as a firm that really understands sustainable transportation”(p. A2).
ZENN has made its first appearance at the Canadian International Auto show in February 2001 at a time where yearlong smog and rising gas prices were of concern. With the growing demand of additional information, request for test drive cars, and demand for these vehicles, it was clear that ZENN on its way to success. ZMC has targeted gated – communities that are widely populated by wealthy people. The chosen target market is an ideal target since people seemed interested in acquiring multiple vehicles for leisure purposes, social prominence, and to support the environment. The retail network is critical must since it assists ZENN with getting their name out there and both are beneficiaries. This kind of relationship includes two groups:
Automotive dealers through the National Automobile Dealers Association’s Las Vegas tradeshow.
Environmental entrepreneur retailers
By cooperating with second group, ZMC took several steps to build relationship as following:
Build win-win relationship with these specialty retailers
Work with them as strategic partner, don’t call them “dealers”
The Value of this relationship:
Provide the true retail experience that customer are looking for by the help of these retailers
Share costs together in Advertising, 50-50 while control massage, format, design, layout of ZMC
Increase the demonstration on potential customers for ZMC and retailers.
Chapter 2: The Mission and Marketing Concepts

ZENN’s mission is the “100% electric ZENN represents everything good about personal transportation. While it runs on electricity, the ZENN is fueled by optimism. It’s stylish, comfortable, fun and socially responsible”, acts as an invisible hand. This mission is important for capturing consumer’s interests that acts to promote self-interest.
ZMC’s business units are described as a Star according to the BCG growth-share matrix. With factors such as increased pollutions, increased gas prices and the media coverage concern consumers as an alternative mode of transportation. This has increased the demand for ZENN’s electric cars. Moreover, if ZMC make a development in the engineering necessary for safe and efficient electric car in mass amounts, the company grow to be profitable and have high market growth.
As with any strategic business unit (SBU), a star will eventually slow down their growth and become cash cow.
Cash cows generally have high market shares in turn low market growth. From this transition, ZMC had to diverse itself by acquiring businesses outside the company’s current market. ZMC was approached by a company called EEStor in 2002, a Texas based firm that was on track to develop an electrical energy storage unit (EESU). It was not until 2004 that ZMC had partnered up with EEStor. With the development of the EESU, ZMC saw the potential that EEStor had to offer. ZMC’s products in the current market would improve vastly by outlasting any vehicle it is installed it, be quick to recharge, and increase the travel
distance.
Chapter 3: Macro environmental Forces Affecting ZMC
Technology:
Different from other types of cars, ZENN cars work on the operation of electricity instead of gas. At the present time, ZMC cooperates with EEStor to produce and develop the battery so that it can last longer and be stronger. However, technology is very quick to change. Comparing ZMC with original equipment manufacturers (GM, Toyota, Ford, Honda, etc.), ZMC has a small source of finance and investment verses these giant companies. While the idea of electric cars seem raw to these giant companies, they will see the advantage of these emission free vehicles. In acting out, ZMC will we placed in an environment with more pressures and increased competition. Consequently, ZMC has to keep to par by constantly developing and improving its technologies.
Economy:
In recent years, gas prices are going up and the economy is in a period of recession. So, by offering an electric vehicle, it will be an economic advantage to the consumer and to the environment.
Natural Forces:
The Earth is always changes, and one of those changes is impacting the Earth negatively by the impacts of global warming from CO2 emissions. Catching this trend, ZMC offers electric cars which proactively respond to the change in nature.
Cultural Forces:
Customers pay attention to the environmentally friendly side which ZMC ventures to accommodate their need. ZMC raises the awareness of the green environment onto the customers through brochures, ambassadors program and the product itself. Other consumers sense of these vehicles as accommodation, toys in their disposal for show.
Social Environment:
The first adopters of ZENN are evangelists because these customers are stopped and asked for the car information by other people. To respond to this, ZMC created the Ambassador Program to train and market materials about ZENN Car to the customer. These activities create the value for customer themselves and build a positive image for ZMC.
Demographic Environment
ZENN car are accepted widely by customers who “have been urban commuters and commercial fleets. Therefore, ZMC was forced by the shift of geographic population. To have a better life, also better job or income, big cities attract more people, and people move from rural to urban area to live and work. As a result, ZMC offered ZENN car for their convenience based on the needs on transportation increasing.
Chapter 4: Socially Responsible Marketing Marketing principles are defined as “the best long-run performance of the marketing system”. The initial success of ZMC found on practicing and applying these principles to create higher value to their customers. The 5 major principles that enlightened companies as well as ZMC are as follows.
Consumer-Orientated Marketing:
ZMC thought, marketed, and produced the car in the eyes of the customer. The idea of ZENN car was created to benefit the consumer in ways to keep the environment clean and saving wealth in the long run. In addition, ZMC implemented research to collect data from customers. These data types vary from their consumption choices, type of car, speed, adaptability in climate changes, design in order to determine the ideal target market.
Customer-Value Marketing:
ZMC create its products with high quality and convenience. In fact, customers were pleased with ZENN. Customers can drive the vehicle for 50 – 80 km with one charge of the battery. Thus, ZMC had planned to develop and produce a higher speed vehicle with longer distance driving with also a shorter charging time.
Innovative Marketing:
An important step to provide the innovative marketing to ZMC is the partnership with EEStor. They worked together to introduce a revolutionizing product called the ESSU. This new technology would help increase the outlasting time of the vehicle, enhance power levels, and quickly charge. This would not only benefit ZMC and EEStor, but also benefits the consumers and the electrical industry.
Sense-Of-Mission Marketing:
As mentioned in ZENN mission statement, ZMC focused on “electric car, good for personal transportation… it’s stylish, comfortable, fun, and social responsible”. The sense-of-mission marketing principle was not applied. Generally, ZMC defined its product and its usage instead of concentrating to the board social term of ZMC in the market.
Societal Marketing:
Decisions of the company rely on consumer’s wants, company’s requirements, and the long-run interest of both. It is possible to conclude that ZMC did well. ZMC educated customers and its partners about the benefit of emerging technology, in the way of protecting the environment for younger generations, saving energy, and being a smarter consumer. Therefore, when ZMC made environmentally friendly products, electric cars, it created a desirable product which brought the satisfaction for current customers and in the long run.
Chapter 18: ZMC’s Competitive Advantage

ZMC had a competitive advantage over other automotive manufacturers in ways that other manufacturers could not offer. Zero Emission No Noise, the ZENN car is the product as well the name is what it offers. The early adopters of ZENN car had become the preachers of the product. When someone is driving a ZENN, they are constantly stopped and asked questions. ZMC responded to this by creating the ambassador program which enables the buyers of ZENN cars to provide information and knowledge to other potential buyers.
ZMC has evolved in such ways that it has created a name for itself that attracted potential suppliers and began receiving proposals to the company. One such opportunity came along by the company called EEStor which is a Texas-based firm that was on track to developing an Electrical Energy Storage Unit (EESU). This product has the capability of reducing charge the time, increase distance travelled, and outlast any other vehicle on the market. Ian was quick to catch sight of the opportunity and entered into a partnership with ESStor in 2004. This partnership has resulted in a big shift for ZMC, rather than competing with Original Equipment Manufacturers (OEMs), ZMC realized they are better off to be a major supplier to them.

Conclusion

Like any successful company, ZENNs success came from perseverance, through their customers, suppliers and partners.
Perhaps why ZMC was chosen for this case study is because this has company strived for and constantly adjusts itself to the changing environment and its OEMs competitors. Throughout the company’s existence, it has made deliberating changes that positioned the company from becoming a leading electric car manufacturer to being one of the major suppliers to the large automotive firms. From this, ZMCs credibility sored through the automotive industry amounting to their own success. Although ZMC success has flourished, the company must progress rapidly to the changing environment and demands in sustaining the continuation of its
company

Works Cited
Kotler, Armstrong, Cunningham, Trifts. (2010). Principles of Marketing. Ontario: Pearson Canada.

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