ZBoard has developed great audience, reviews and reception from the public, from boarders fans through hi-tech enthusiasts, in both the domestic and international markets. Their orders and demand of ZBoards is increasing fast. Retails stores and rental equipment businesses are showing more interest to have ZBoards on their show rooms and shelves displays.
MARKET SITUATION
According to the Board-Track ‘s Specialty Retail Report 2009, Skateboard hard goods are one of the most important categories to specialty sports retailers business. The highest percentage of skateboard’s users is between 12-35 years old. However, Zboard’s price ($ 649 - $949) could be expensive for the majority of this segment composed by students. Due to this interesting niche, the company wants to study the possibility to launch a Zboard rental service for California Universities.
UCI’s reputation as a leader University for promoting new alternatives of sustainable transportation would be an excellent test market for this service. UCI’s campus area is big and the distances between campus facilities, housing and off campus services are too far to walk. Also the campus location, characteristics of the terreno>>>>>>>>> and the good weather all year long are favorable to the use of skating devices.
As reported by Mr. Ramon Zavala (Interim Supervisor of UCI Sustainable Transportation Department, the 2011-2012 UC Irvine AQMD Survey Results certified by the South Coast Air Quality Management District, combined UCI staff, faculty, and graduate employee commute behavior is approximately 52.96% for all forms of sustainable transportation:
- Drive Alone - 47.04%
- Carpool - 10.75%
- Vanpool - .51%
- Shuttle (Anteater Express) - .25%
- OCTA Bus - 4.65%
- Train - 1%
- Walk - 22.70%
- Bike - 10.30%
- Telecommute - 2.20%
- Working outside the area - .89%
Note:
-The numbers for students commute behavior are NOT included
-Skate devices’ usage is not tracked (yet) as the use of skateboards, roller skates, and inline skates are not permitted on UCI campus core areas at any time. The use of skate devices is just permitted in residential and outlying areas of the campus () This doesn't mean that UCI don't recognize that skating is a valid form of transportation. Actually they have notice that the usage of skateboards has increase and they are interested in the results of my project.
COMPETITORS
There are other methods of alternative transportation for the UCI population who live near/in the campus (Carpool, Anteater Express, OCTA, Bicycle and Walking), but just one with rental mode. It is Zotwheels Bike rental service.
Accordinf to Mr, Zavala, ZotWheels is not run for profit. It is an amenity to the campus community. The vast majority of the expense comes from the establishment of the system and since the university also administer it, upkeep expense is minimal.
An individual Zotwheels membership is $40 annually, allowing to have unlimited use of the ZotWheels bikes with no additional charges, as long as the bike has been returned within three hours of rental.
Zotwheels usage fluctuates severely. People use it frequently when they get membership and then frequently stop using the system in favor of buying their own bikes after getting comfortable riding ZotWheels around campus.
There are other electric skateboard companies but none with weight-sensing capabilities or rental options. They use a wired or wireless remote control to determine throttle and they're not as cool or fun as ZBoard.
SWOT ANALYSIS
Strenghts
- It is the world's first, weight-sensing electric skateboard
- Faster and easier to drive than regular skateboards
- More portable than a bike
- Cool and fun to drive
- Sustainable, fun, powerful and device to commute short distances
Weaknesses
- Zboard is a brand new product, very few people knows about this kind of electric skateboard device
- It is considered as a risky activity
- The user needs to have some level of skate skills
- It is a male predominant activity
- People under 25 years old (main users) can’t afford to buy a ZBoard
Opportunities
- Offer a Zboard rental service to UCI population (students and staff/employees) who live near/in the campus
- Be the leaders on electric skateboard rentals in California Universities
Threats
- Skate is not permitted on UCI campus core areas at any time. (The use of skate devices is just permitted in residential and outlying areas of the campus)
- Seasons. During holidays and vacations the demand will decrease
- There are other methods of alternative transportation at UCI that could compete with ZBoard. Specially Zotwheels Bike rental service.
3. OBJECTIVES
MARKETING PAIN AND OPPORTUNITY
The main target for Zboard is young people between 15-25 years old. However, Zboard’s price ($ 649 - $949) could be expensive for the majority of this segment composed by students. Due to this interesting niche, the company wants to study the possibility to launch a Zboard rental service in UCI for students and staff/employees population who live near/in the campus where everything is too far to walk and too short to drive.
ADDED VALUE OF THE PRODUCT
ZBoard is faster and easier to ride than a regular skateboard (you don't have to push it up hills), and is more cool, fun and portable than a bike.
BUSINESS OBJECTIVE
This research will help the company to determine if there is a market opportunity for ZBoard rentals in UCI by answering these questions:
- What is the total population of UCI students and staff/employees?
- How is the transportation behavior of UCI students and staff?
- How many people (UCI students and staff) live/work near/in the campus?
- Which are the methods of alternative transportation at UCI?
- Are there other rental services of alternative transportation at UCI?
- How many people at UCI use other rental services of alternative
transportation?
- How much it costs to rent a bike in UCI?
- How many people at UCI use regular skateboards for transportation?
- Are gender and age characteristics that are significatively related to the use of skate devices for transportation?
- Which are the main reasons to avoid the use of skateboards?
- How many people have used or are interested in use electric skateboards for transportation?
- Which are the main reasons to avoid the use of electric skateboards?
- Do UCI students and staffs are willing to use ZBoard rentals?
- What is the size of the potential market for ZBoard rentals in UCI?
- How much UCI students and staff are willing to pay for ZBoard rentals?
4. RESEARCH APPROACH
TASK 1: PRIMARY DATA
In order to reach my research objectives I had made some approach.
First, I have to meet the client in person to obtain more information about the product, current situation of the company and objectives of the research.
TASK 2: SECONDARY DATA
I compiled secondary data about the Skateboard Industry from Board-Trac’s website (2009 Board-Trac’s Specialty Retail Report and 2010 Board-Trac’s Seminar Report). I made some strategic emailing to UCI Office of Institutional Research to obtain population size (including students and staff), UCI housing community facilities. I also interviewed Mr. Ramon G. Zavala (Interim Supervisor of UCI’s Sustainable Transportation Department) and Mr. Chad E. Kim (Leading researcher of UCI’s Institute of Transportation Studies) to gain information about UCI’s alternative methods of transportation, commute behavior of the population (2012 UCI AQMD survey) and Zotwheels (UCI Bike rental service) business model.
TASK 3: EMAIL SURVEY
I will use a quantitative method on my research by conducting an email survey to know in-deph information about UCI’s population transportation behavior patterns and their attitude towards skateboarding, electric skateboards and ZBoard rentals in UCI. The survey will be sponsored by the UCI Sustainable Transportation Department and will be sent by email from the Department’s account using free survey software to guarantee the highest and fastest response at a minimum coast. The participants will be selected by quota sampling method: 200 students (100 undergraduate and 100 graduate) and 200 staff/employees (100 Administrative and 100 Academic). The questionnaire was designed with multiple and dichotomy choice questions using nominal and interval scales of measurement. I also used screener questions at the beginning of the survey to filter participants, i.e.: “What is your primary UCI affiliation?”, “Do you live or work on/near UCI campus?”, “Enter your zipcode”.
According to UCI Office of Institutional Research 2011 Report, the population size of UCI students is 27.189 people, and the population of UCI staff/employees is 21.291 people. Combined, the total population of UCI students and staff/employees is 48.480 people.
For a 95% confidence level to have a margin of error of 5%, the sample size needed is 381 participants
TASK 4: ANALYSIS
Last, I will analyze the data and submit the report to Zboard Directors to make the most suitable business decision.
5. TIME AND COST REQUIREMENTS
The whole research would coast $3000 and it would take 8 weeks to finish.
6. TECHNICAL APPENDIX
LINKS:
by
patriciarr (student)
