ZAP! Vehicles and Motors: A New Way to Travel?Gary Starr had been hoping to market alternatives to gas-powered vehicles since the 1970s when an oil crunch shot gasoline prices to all-time highs inAmer

ZAP! Vehicles and Motors: A New Way to Travel?

Gary Starr had been hoping to market alternatives to gas-powered vehicles since the 1970s when an oil crunch shot gasoline prices to all-time highs inAmerica/>/>.  At the same time, Jim McGreen was tinkering with a working model of an electric bike.  Both men met at an electric vehicle association meeting in California/>/>and decided to go into business together.

After a lot of toil and lots of money and time investment, the two entrepreneurs have one invention ready to market under their brand name, ZAP! (which stands for Zero Air Pollution).  The invention is a small, quiet electric motor that contains a square battery pack, and can be used to power small vehicles. Produced in a small Sonoma/> County/>/> factory in California/>/>, ZAP! Has used the electric motor on its first new product -- a 35-pound foldable electric scooter with a handle that travels up to 13 mph.  A recommended retail price hasn't yet been determined for the product but Gary, president of ZAP!, says he thinks $600 sounds affordable. The scooter is small enough to fit in a school locker, and according to both partners with practice, you can even do tricks. It takes a few hours to charge the batteries, which plug into any outlet and lasts for about 14 miles.  The company has the engineering expertise, and unlimited financing, and determination to produce other, similar type transportation products that can use its ZAP! motors.

Both men realize that to capture market share with this innovation, to have ZAP! become #1 in its industry, and then to stay ahead of the competition, they will have to develop and implement a strong marketing plan as soon as possible.  They have heard about your expertise as a marketing consultant, and are seeking your advice before they begin their marketing.  Specifically, they want to know answers to many questions including:

·         Who and where should ZAP!'s target  market(s) be?  Why?

·         What product extensions, additions, modifications, etc., if any, should they consider to their line?  Why?

·         How, where, should they physically distribute their product(s)?  Why?

·         How, where, and to whom should they promote their product(s)?  Why?

·         As part of their promotional mix, how should the company position its product(s)?

·         What pricing strategy should they adopt for the scooter?  Why?

·         What may be some of the environmental opportunities and/or threats to their marketing plans?

·         Five years from now, do you still think they will be a successful business?  Why?

Note: To get current informaton about Zap, check out www.zapworld.com for a complete website about this company.  This case was developed by Dr. S. LeShay, Ph.D., and is based on an article entitled "Two guys find way to ZAP! bike idea into huge success," in the Mar. 7, 1999/>Stars & Stripes Business Section, p. 1 and 3.