A Case Study on how Enterprise Rent A Car- Free Sample

Question: Make a plan for the launch of a ENTERPRISE RENT A CAR cab service which is well established in 7 countries making going to start the business in BRISBANE AUSTRALIA with a 500,000 AUD. Answer: Executive Summary This report was basically a marketing plan for Enterprise Rent - A Car which is going to launch its services in Brisbane, Australia. The organisation was first time launching its services in Brisbane city. During the first year of the business, Enterprise Rent- A Car aimed to achieve the target of enough popularity in the market so that it can be a leader of car rental services in the Brisbane City. It also aimed to gain the 0.6% market share and wants to perform the business of $1,000,000.For marketing strategy, the online marketing was preferred to reach maximum people in Brisbane city and to utilize the opportunities and to overcome the threats and weaknesses. The company used various other strategies like launching other services and populate them using various marketing strategies. Getting Tired of Never-Ending Assignments? Hire an Expert from MyAssignmenthelp and Get the Necessary Assignment Help at a Reasonable Rate. The company provided the cars and other vehicles on rent. The special service that the company was targeting to start is providing the one way rental service as this has become a weakness for the company. Thus, the company provided the vehicles on rent for various purposes. This basically targeted the people of age group 15 to 65 years. For private bookings and for organizational bookings it targeted the orphanages, old age homes etc. Initially, the prices of the services were very low for attracting people. The distribution of the services was both online and on call service. The payment will be done by online and on delivery of service.The company tried to achieve all the targets by implementing the marketing plan described in the report. Basically, the company used the online marketing, magazines, newspapers, direct mails for the marketing purpose to attract a large group of people. This report is a marketing plan for an Enterprise rent-a-car in Brisbane, Australia. This marketing plan includes the current situation of the enterprise, enterprises SWOT analysis, Market segmentation, targeted market, positioning the car rental service in the market, Objective of the marketing plan, marketing strategy, the budget assigned to marketing,control and contingencies. This includes the budget of 500,000 AUD. Thus, this report will prepare the marketing plan according to the given budget.Aim of this report is to create an appropriate formarketing plan for the Enterprise rent-a-car so that it can well establish its market in the Brisbane city of Australia.The scope of this marketing plan is very wide. This marketing plan will create abusiness wide opportunity for Enterprise rent-a-car and help the enterprise to enhance their business. Company Background Enterprise Rent-A-Car is based in UK and currently provides its services in seven countries worldwide. The company provides its car rental services for both private and business purposes. The company currently has more than 8,200 offices worldwide and 370 offices in the UK itself. The company also provides the vehicle replacement. It even replaces the accidental vehicles. The company was founded in 1957 and the founder of the company is Jack Taylor (About Rent-A CAR, 2014). The company is dedicated to their customers for providing the excellent services. Its dedication towards their employees and customers can be observed from the fact that 99% of the job vacancies is filled internally by the employees itself. Current Situation Analysis The current situation of the company can be understood by three analysis, i.e. internal analysis, external analysis and market analysis. Internal Analysis The mission of Enterprise Rent-a-car is to provide the commercial and automotive truck on rent. The company provides the leasing and sales services in cars according to the need of the customers and expectation for the quality service and values (Enterprise rent a car mission, 2014). The company works with various resources and contracts with the car owners, who want to provide their car on rent. The company offers various offers and services in terms of car rent and truck on rents. The company has a strong workforce to work. The internal environment of the company supports the growth of the company. Employees of the company are well satisfied to work enough. Overall, the company is strong enough to establish new market in Brisbane, Australia. External Analysis The company uses latest technology to reach their customers. Company supports the use of updated, improved technology present in the market. Economically, the company is strong to establish its new market. The main issue faced by the company will be the political or legal issues, to understand the legal issues in Australia, the company needs to perform various researches in the Australian market as the company is new in the Australian market and is not habitual to the laws and regulation of Australian government. If we talk on the cultural influences, then the Australian people are very sensitive about the culture. Thus, while marketing, these factors should be analysed and handled properly. Natural environment is very much favourable for the business and the small problems will not affect the business. Enterprise Rent- A - Car is recognised for its quality service throughout the market (Customer Service, 2014). Market Analysis The marketing analysis includes the market of Brisbane city of Australia as the company wants to start its business in this city. For analysing the market let us consider the below graph. Rent vs. Own property data statistics of Brisbane City (Property Data, 2014) According the above graph, 18% of the people have their own property. 24.8% of the people are thinking to purchase their own property. Other people use the resources on rent as described. Thus, the market has a great scope for car rent business (Kotler, 2010). There are various car rental companies which are available in the Brisbane city which provides its best services in the Brisbane city of Australia. Among those, the best car rental providing companies are Thrifty car rental fortitude Valley, Avis, Vista hire and Vroom (Thrifty, 2014). The main competition of the company will be with Vroom and Vista hire as the people of Brisbane likes the services of these company a lot but the company has various advantages. In this, the main competition is that the company provides a wide range of vehicles at a wide range of rental prices. Customers of Brisbane city wants the luxury services in form of rental car at reasonable prices (ibisworld, 2010). SWOT Analysis SWOT analysis of the Enterprise Rent-A-Car is as follows: Strengths Weaknesses 1.The Enterprise Rent-A-Car has a strong brand image. 2.The company provides the leading car rental services in seven countries worldwide. 3.Company has vehicles available in large fleet. 4Company provides operations and services in large scale. 5.The company has strong financial condition. Company can expend a large amount to setup the new business. 6.Company is providing its leading customer services and the customers are very much satisfied with the services of Enterprise Rent-A-Car (Ganzer, 2012). 1.Company should have the concentration of assets. 2 Company needs to maintain its vehicles from time to time for providing better services. 3 Company doesnt provide the facility of one way rental. 4.The operations of the company are very intensive including capital operation also. Opportunities Threats 1. The company has started various new services which can emerge as new outstanding opportunities in the market. 2.The car rental market is growing globally and people are using this type of services enthusiastically. 3.eople are using internet at a large scale. People also use the online booking or purchasing services. 4.People also use the smartphone applications on large scale for booking or other purposes. 5.At airport or railway stations, people need the cabs in large scale. Sometimes people have their own vehicles but then also they need to book the cab while travelling in other cities (Brajkrati, 2011). 1.Brisbane is a very competitive market for car rental services. Thus, the company needs to face a large scale of competition. 2. In Brisbane, the cost of drivers are very high. Even the charge of maintaining the vehicles is also high. 3.The interest rates of the various services like bank loan etc. are increasing day by day. 4.Price of fuel is also increasing with time. Thus, the SWOT analysis of the company is performed which works as a raw material for developing the marketing plan. Market Segmentation For marketing segmentation, let us first analyse and view the population and do the income analysis of the people of Brisbane city. Income Analysis of Brisbane City, Australia (2014) The above graph is showing the income statements of the people in Brisbane city. According to the above graph, the average monthly loan repayment of people of Brisbane city is $2400. People are paying an average rent of $530 weekly, the weekly individual income of the people in Brisbane city is $859, weekly average income of a family is $2386 and weekly household income is $1828. Thus, the people of Brisbane city will be able to afford the car rental services of Enterprise Rent - A Car. The market can be segmented in many ways like consideration of private services or organisational services (slideshare, 2010). Thus, the market can be segmented into two parts, private booking and organisational booking. It is said to be a private booking if someone rents the car for their personal use. Organizational booking is said if an organisation books car, on rent. In private booking also market can be segmented into two parts, individual or family booking. Individual means if a person has booked a car on rent only for himself and family booking means if the car is booked on rent for the full family (Eboschor, 2010). In organisational booking also market can be segmented into many parts like group booking or single booking. Group booking can be done only when the organization organizes a trip and then books the vehicles for it. The other organizational purpose may be for goods transportation. For goods transportation, the organization may hire trucks. In single organisation booking, organisation may book a car on rent if a single person comes for meeting or any other official purpose (monestime, 2010). Target Market For the analysis of target market, let us first see the population of Brisbane city in Australia. This can be analysed from the below graph. Population percentage of different age group (Property data, 2014) The above figure is showing the population ration of Brisbane city in Australia. Brisbane is the third largest city in Australia having population of nearly 2.2 million people and has the largest growth rate in Australia (Study Brisbane, 2014). The above figure is divided into three age groups under 15, between 15-65 and 65 plus. There are 4.6% people under the age of 15 years in Brisbane, nearly 90.4% people are between 15-65 age groups and nearly 5% people are more than 65 years. In private market segmentation, the company will target the 15 65 age group people. Because it is obvious to understand that under 15 age group people will not be able to book a car. Also, there will be very less people who will be able to hire the car on rent. Thus, our private targeted market is very big in size but in this market also the company will mostly target the middle class people as the poor people will not have the capability to book a car on rent and the rich class people have their own mode of transportation (business week, 2006). In the organizational market segment, the company will mainly target the schools, colleges, old age homes, orphanages, event organizers etc. as these generally needs the vehicles for various events like picnics, tours etc (Powers, 2004). Old age homes, orphanages and event organizers will be targeted mainly as they organise such events on a large scale. Positioning The company provides a wide range of options to their customers. Company has options available from low class cars to luxury cars, low prices to highest prices. Thus, the company provides its services from low price range to highest price range. The services provided by the company are very fast. After confirmation of the booking of car, the car will reach at the destination on time. This hikes the position of the company in the market. The other factor that contributes are that the company never compromises with the quality of service which means if a customer books a prime car then the company will not provide the car of low level but if a customer books a car of low level, then it may provide the higher level car on unavailability of low level cars. Thus, the customers always remain satisfied with the services of the company. (Wong, 2011). The negative factor is that, the company does not provide the facility of one way rental. This factor affects the position of the company in the market. If we see in the market there are various other car rental companies in the market which provides car on rent for one way transportation. Thus, overall, the position of Enterprise Rent ACar is very good in the market. It will compete with the other popular car rental companies in the market. Objectives The objective of this marketing plan is to gain the overall market of the Brisbane City. Most of the people should prefer to use Enterprise Rent ACar for booking of car or other vehicles on rent by providing the better services to the customers. The primary goal of this marketing plan is to generating the awareness between the people about the organisation and the offers and services provided by the organisation. This will help in increasing the popularity of the organisation in Brisbane city. The organization will also start the one way rental service by gaining the proper resources and fund (Harvey, 2013). Thus, the main goal of the marketing strategy is to identify the needs of the customers and to provide the best facilities and services to the customers so that the Enterprise RentACar can gain its popularity in the first year. Marketing Strategies Product The facilities and services that the company will provide is that it will facilitate the users for booking car or other vehicles on rent for various purposes. It will provide a wide range of services according to price and facilities which will facilitate the users for booking the car from home at an affordable price. The company will provide various levels of cars like low level, luxury cars, sports car etc. according to the requirement of customer. Similarly, other vehicles will also be levelled (Bruce, 2013). The company will provide the Jaguar XJ for luxury car services on rent. Price The charge will be according to the booking of the customers. The rent will vary according to the time, distance between source and the destination. The rent of the luxury cars will be higher than the low level cars. Similarly, the charge of the trucks will vary according to the load weighing capacity of the truck (Industry week, 2014). Let us take an example of the charge of the luxury car Jaguar XJ which will be $1 per 5 kilometres and the weighting charges will be $2 per hour. Promotion The promotion of services will be done by various mediums. The main mode of the promotion will be internet. Online marketing will mostly be preferred. Second source of promotion media will be the television channels and the newspapers. Other sources of promotion will be the banners and templates and providing advertisements on other media (Business Statistics, 2010). In online medium, social media marketing will be preferred as this is very easy, effective and least costly method of marketing and other factor is that the social media covers a large number of people in the market. Place Place, as described above, will be Brisbane city in Australia. In Brisbane city also the pose area will be targeted as the company needs to cover large number of people. People People present in the services will be the employees and the customers who want to use these services. In the employees, the people present in providing the service will be the operational managers, booking managers and employees, drivers etc. while the customers will be as described above will be the mainly from the age group 15-65 and the families. The various organizations will also acts as customer for the Enterprise Rent-A Car. Process The process of the service will start from the booking, online or by call booking will be done by the customers after the booking process the online payment will be done by the customers by various ways like credit card, debit card or net banking. Finally a form of liability will be filled by customers. Physically Attributes The Physical attributes that will be present in the process will be an office, a server for processing the requests and storing the data, Computer systems etc. For improving the service and quality and service for the customers the accessories should also be according to that. Action Plan The action plan of marketing is expressed in the following table Process Timing Objective Online Marketing Google Advertisement Google Ad words Email Marketing Target redirected Web Users Web Advertisement Social media marketing 12 months 12 months 4 months 3 months 6 months 12 months The objective of the online marketing is to gain more number of customers through online social media. Google Advertisement will help to gain customers when something related to car rental will be searched online, Google ad words will also be used in ranking the company higher in the search engines. Redirected web user will transfer the users on our website and web advertisement will help to attract the customers (Programs live, 2011). Radio Advertisements Frequent 60 seconds advertisements Frequent 30 second Slow 60 seconds Advertisements Slow 60 seconds advertisement Slow 30 second advertisement For first 1 month For next 1 month For next one month For next one month Most of the people generally listen radio in free time. This can be evolved as the great starting source. Billboards 12.66 * 3.35m 6.00 * 3.00m 3.00 * 3.00m 12 months 12 months 12 months Billboards create a different type of positive image among the people. It can be seen from even from the distance. Magazines Double page spread Full Page Half Page Third Page Quarter Page 70mm * 58mm Once in 4 months Once in two months Once in one month Once in 15 days Once in 10 days Magazines are a great source of advertisement and people generally read the magazines for knowledge purpose. Newspaper Courier Mail Full Page Half Page Quarter Page QWeekEnd Full Page Half Page Quarter Page U on Sunday Once in 6 months Once in 3 months Once in 3 months Once Once in 6 months Once in 4 months Newspapers are used in almost every house or family to know about the daily news. Thus, it can also be a great source of advertisement Direct Mails Direct mail letters Direct main postcards 12 months 12 months Direct mail advertisement assures that the people who received the letter will surely see the advertisements. Marketing Budget The overall marketing budget of the company is $500,000. The distribution of the cost can be done as follows: Website: $10,000 Online Marketing: $ 90,000 Billboard Budget: $150,000 Magazines: $100,000 Newspaper: $100,000 Direct Mails: $50,000 (Paramasivan, 2010) Controls and Contingencies The success of each process will be monitored according to the response gained by the customers on each activity (SOM, 2009). Response on online activity can be measured directly very easily but for other marketing resources, the company should make some strategy. The feedback form helps a lot, wherein, the company can ask the customers on how they came to know about the services of Enterprise RentACar. Conclusion The above report is basically the result of various studies and research. The above market plan is prepared by studying the various marketing activities and researching the marketing resources available in the market. This marketing strategy, if executed successfully, may result in the success of Enterprise Rent-ACar. The main objective of marketing plan is to gain the popularity in one year and establish a strong network within the city. The marketing plan will include the online marketing, billboards, magazines, newspapers and the direct mails. References Mission Rent-A-Car (2014). Our Mission. About Enterprise Rent-A-Car (2014). About Us. Customer Service (2014). Culture of Customer Service. 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