Marketing Plan: Enterprise Rent A Car
Sep 24,21Marketing Plan: Enterprise Rent A Car
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:
Introduction
This report is a marketing plan that is developed for “Enterprise Rent – A – Car” that is ready to launch its rental car services in Brisbane, Australia. Through this plan, the company is aimed to achieve enough popularity in Brisbane City and market share. This report includes the internal and external market analysis along with the new marketing mix strategy to reach target customers and engage them with the services of the company.
Company Background
Enterprise Rent-A-Car is providing its car rental services in seven countries. Its services are available for both business and private purposes. This company is dedicated to offering satisfactory services to its customers through the help of its quality services.
Current Situation Analysis
This analysis can be done with the help of the following analyses that are presented below:
Internal Environment Analysis
In the company, the internal environment supports the company’s growth (Porter, 2017). As per the available information related to the company, SWOT analysis is an effective method for conducting internal analysis of the company.
SWOT Analysis
| Strengths
Strong Brand Image Presence in 7 country Strong financial conditions Satisfactory customer services in the existing market |
Weaknesses
Lack of One-way rental services |
| Opportunity
The global image of the company will attract the local Australians Lack of rental cars in Australia Online booking facilities to customers to book cars from any place Growth in demand from global car firm
|
Threats
Increase in the level of competition; Rising wages of drivers Increase in fuel price
|
External Environmental Analysis
PESTLE analysis
According to Porter (2017), PESTLE analysis facilitates the researcher to explore the impacts of external business factors in the business performance. This analysis is conducted with the help of PESTLE analysis that is performed below:
| Factors | Present situation | Impact on Organization |
| Political Factors | Stable government, rising economy, and support to tourism sectors | Supportive environment to the company to enter in the market and start the business operations |
| Technology Factors | GPS based tracking of the ride after booking, IT devices | The company used the latest technology to offer quick services to customers |
| Economy | Rising Economy | The rising economy of Australia will help the company to gain growth in the market. |
| Social Factors | Changes in desires of customers | The company will face the issue related to the customers in regard to the luxury services in a rental car with other factors that can affect its operations. |
| Legal Factor | Taxes on Earnings, wages policies, working hours of the drivers | The company needs to conduct market researcher otherwise the legal issues may create litigations against the company. |
| Environmental Factor | Pollution due to the use of fossil fuel | The use of electric engine base cars may help the company to address the negative impacts of this factor on business. |
Market Analysis
In the market, there are many players. Among them, major players are Avis Management Pty Limited, Hertz Investment (Holdings) Pty Limited, National Roads and Motorists’ Association Limited, and Europcar Holding Pty Ltd. The marketing analysis includes the market of Brisbane city of Australia as the company wants to start its business in this city. For analyzing the market let us consider the below graph.
Figure: Market Analysis of
(Source: Curran, 2019)
In 2017, value sales of car rental in Australia increased by 4%, following a 2% increase in 2016 (Euromonitor, 2021). Similarly, the number of automobile rental transactions grew by 2% across the country. Car rental firms, like many other travel-related businesses, have profited greatly from increased international visitor traffic. In 2017, the number of visitors visiting Australia grew by 5% to 8.7 million (Euromonitor, 2021). With Europe’s geopolitical instability persisting, Australia will continue to be viewed as a haven for a rising number of Asian visitors. Due to this reason, the demand for car rental services will increase in the country after Covid-19.
Market Segmentation
In the city of Brisbane, the company may target the tourist who comes to Australia from a different place to visit sea locations, riverfronts, and cities to feel the excitement. This segment of customers will help the company to start its operation in an easy manner. Further, the people in the city are also another target segment for the company because they earned around 104,000 AUD per year. Further the age group between 15 to 65 would be the best target group customer for the company. This age group will include the students, working people, and visitors in the city.
Positioning Strategy
The company offers low price to high price rental services to customers that facilitate the customers to use low-class cars and luxury cars. The company can position its services in the market with a tag line “Get timely Car service and Reach destination with happiness.”
Objectives
The main objective of the plan for the company is to get a new market share in Brisbane City. The primary objective of the plan is to generate customer awareness. This goal will help the company to promote its services in the city also. Further, the one-way rental service that would be offered by the company to customers will help the company to ensure the effective use of the available funds and resources. The goal of this strategy is to meet the primary needs of the people in the city and motivate them, for the selection of services in next traveling. During the first year of operation, the company will try to gain 1% of market share and 10% returns on the monthly investment in the market.
Strategies for Marketing Mix
For the business plan, the followings are marketing mix that are:
Product: the company will provide different types of cars to customers as per their demand to give the best experience to them. These cars will provide one-way and two-way services to customers.
Price: The flexible price policy will help the company to offer rental car services to customers (Hanna and Dodge, 2017). For this, traveling time, distance, and stay of the car are some factors that will allow the company to increase or decrease the rental charge for the customers.
Promotion: social media, print media, electronic media are some sources that would be used by the company to promote its services in the market. Among these advertising mediums, social media is a rising tool for the company because of its low-cost nature and reach in mass customer base (Davis, 2014).
Place: Brisbane city in Australia is the main place for the company to start its services.
People: Customers and employees are the two main people who would like to associate with the rental car services (Stevens, Loudon, and Nykiel, 2013). Different departments of the company will help the company to perform the new rental services in the city while the above-defined customers will consume the services of the company.
Process: The rental car service-related process will be started from the online booking and online payment for booked services through credit card and debit cards.
Physically Attributes: The office of the company will present the physical attributes. In-office customers can meet the staff of the company to resolve their issues (Stevens, Loudon, and Nykiel, 2013).
Action Plan
Below is the action plan of marketing:
| Medium | Objectives | |
| Social Media | Per day | Interact with target users |
| Electronic media advertisement | Per day for 30 second | Aware customers about the services of the company |
| Billboards | Monthly | Develops the competitive image of the company by attracting the attention of customers. |
| Magazine | weekly | People use the magazine to get knowledge on different aspects of the societies. |
| Newspaper
Half Page Advertisement Full Page Advertisement |
Once in two months Once in three months |
|
| Direct Mailing to Customers through
Mail Letter Mail Postcards |
8 months 8 |
Will ensure the company that receiver will see the advertisement of company |
Marketing Budget
The allocated budget for the market is 500,000 AUD. in this context, the followings are the distribution of the cost
Cost for Website: 80000 AUD
Online Marketing cost: 850000 AUD
Cost for Electronic Media and Print Media: 85000 AUD
Budget for Billboard development: 135000 AUD
Cost for promotion in Magazines: 120000 AUD
References
Curran, S. (2019). Understanding car rental in Australia and New Zealand. Retrieved from https://www.globalfleet.com/en/leasing-and-rental/asia-pacific/analysis/understanding-car-rental-australia-and-new-zealand?t%5B0%5D=Australia&t%5B1%5D=Avis&t%5B2%5D=Europcar&t%5B3%5D=Hertz&curl=1
Davis, R. (2014). Social Media Branding For Small Business: The 5–Sources Model. Business Expert Press.
Euromonitor (2021). Car Rental in Australia. Retrieved from https://www.euromonitor.com/car-rental-in-australia/report
Hanna, N. and Dodge, R. (2017). Pricing: Policies and Procedures. Macmillan International Higher Education.
Porter, M. (2017). Competitive Strategy: Techniques for Analyzing Industries and Competitors. CreateSpace Independent Publishing Platform.
Stevens, R., Loudon, D. and Nykiel, R. (2013). Marketing Your Business: A Guide to Developing a Strategic Marketing Plan. Routledge.
