marketing plan- sukhdeep singh (13116973) & tawanda clive zuze (13123060)

Marketing Plan Sukhdeep Singh (13116973) & Tawanda Clive Zuze (13123060) 1

James Cook University

Masters In Business Administration

Marketing Management (14-LB5202)

Marketing Plan

For

Enterprise Rent-a-Car

Lecturer: Professor Sangeeta Rai

Students: Sukhdeep Singh (13116973) & Tawanda Clive Zuze (13123060)

Due date: 21 January 2015


Executive Summary Enterprise Rent-A-Car is an international recognized company within the car renting industry that would like to start and establish business within the Brisbane market. The Brisbane market is a market that has already been penetrated by various local and international companies that have established sound reputations. Enterprise Rent-A-Car would like to penetrate into this market in order to become a leading car rental company within the Brisbane market it tries to venture into other markets within Australia. The company will try to achieve this by using its international reputation, low cost price and also provide fair competition to its competitors.


Table of Contents 1. Introduction 4

1.1. Aim 4 1.2. Scope 4 1.3. Company Background 4

1.3.1.1. Vision 4 1.3.1.2. Mission 4 1.3.1.3. Key Values 4

2. Current Situation Analysis: 5 2.1. Internal Analysis 5 2.2. External Analysis 5

2.2.1.1. Social 5 2.2.1.2. Political 5 2.2.1.3. Technological 6 2.2.1.4. Economic 6 2.2.1.5. Competitive Environment 6

3. SWOT Analysis 6 4. Segmentation 7

4.1. Geographical 7 4.2. Demographical 7 4.3. Psychographic 7 4.4. Behavioral 7

5. Target Market 7 6. Positioning 8 7. Objectives 8

7.1. Company Objective 8 7.2. Marketing Objective 9

8. Marketing strategies 9 8.1. Product 9 8.2. Price 9 8.3. Promotion 10 8.4. Place 11 8.5. People 11 8.6. Process 12 8.7. Physical evidence 12

9. Control and Contingencies 12 10. Action plan 13 11. Marketing budget 14 12. Conclusion 14 13. References 16 14. Appendices 17

14.1. Fig 1 17


1. Introduction 1.1 Aim This report is a marketing plan for Enterprise Rent-A-Car as it endeavors to begin business operation within the Australian market. The aim is to achieve the best possible business idea that creates, communicates and delivers value to customers and for managing customer relationships in way that benefit the organization and all stakeholders. 1.2 Scope This report is designed to demonstrate the plan that Enterprise Rent-A-Car has in conducting business operations in Australia. An analysis of the market has been researched and possible suitable strategies have been created and have been outlined within this report. 1.3 Company Background Enterprise Rent-A-Car, an internationally recognized brand was founded in 1957 and has over 6,500 locations in seven countries that include the United States, Canada, the U.K., Ireland, Germany, France and Spain, as well as franchise locations throughout the world (App 1). Enterprise Rent a car offers a wide range of services that vary from car leasing, replacement rentals, vanpooling, car sharing and hourly rental programs – and local car rental customers are picked up at no extra cost. With the aim of expending further, Enterprise Rent-A-Car has seen the opportunity to open its doors in Australia. Australia is a market that already has its big players in the car rental industry with the knowledge and expertise, Enterprise Rent-A-Car believe there is still a niche market has not been tamed and wish to enter the market though that niche and offer great competition. 1.3.1.1 Vision To enhance our leadership stature, differentiate the company from our competitors and bolster the cause of keeping the passenger vehicle economically viable and socially acceptable. 1.3.1.2 Mission To be the best transportation service provider in the world, to exceed our customers' expectations for service, quality and value, to provide our employees with a great place to work and to serve our communities as a committed corporate citizen. 1.3.1.3 Key Values Quality- Supply high-quality car rental system by aiming to exceed the requirements of our customers. Respect, Innovation,


Integrity, Teamwork, 2. Current Situation Analysis: 2.1 Internal Analysis Enterprise Rent-A-Car is a brand that is well known globally as it has a lot of operations most parts of the world. To exceed customer expectation, Enterprise Rent-A- Car puts value in its workforce. Most emphasis is put in give the employees a good environment in order to deliver the quality of service that is required. An effective training system has been implemented to control and maintain the same quality service across the world. The rental company is doing well in other markets around and this give the opportunity or potential of expanding into other markets. The financial stability of the company gives them the ability to expand into new markets as will see with the 500 000 capital investment that they plan in putting into the Brisbane market 2.2 External Analysis Australia, A country with a population of about 23 Million habitants, which are fairly spread over six major cities. On the other hand, Brisbane has a population is roughly estimated at 2.2 million. 2.2.1.1 Social Australian culture is more of an outgoing extrinsic culture that loves to explore and enjoy life. Out of the 23 million people, more than 11 million Australians are aged 15 or over take part in sport or other physical activity. Travel has become the most part of their lifestyle and this has also encouraged and influenced other people from different parts of world. This out-going culture has also brought about a good tourism system that encourages people from all over the world to come, explore and enjoy themselves. Most of the travel business is done in the 2.2.1.2 Political Australia, a free market economy, has over the years been known as a market that is good for business. A political stable country that has laws and legislations that support both local and international businesses. The legislation requires to comply with laws and regulations that are designed to ensure markets operate with appropriate levels of competitive pressure to protect consumer rights and maintain market efficiencies. Fair trading and good competition is greatly encouraged as seen by Competition and Consumer Act 2010 (CCA) aims to enhance the welfare of Australians through the promotion of competition and fair-trading and provision for consumer protection 2.2.1.3 Technological Technological advancements have been important in Brisbane as everyone and every business have been keeping up with the trend and the advancement. It is important to


monitor advances in technology and consider adopting new technologies that can increase your marketing capabilities. The internet is a technology that continuously improves and often provides to introduce new ways of doing things that often result in greater efficiency and effectiveness. The internet offers excellent opportunities to cost effectively research markets, analyse competitors and identify other ways to improve your business. Most, if not all, car rentals in Brisbane a mobile phone application (apps) that their customers can use to track, book or find information about the company. This usually makes it easy for the customer and this provides a great service for them. 2.2.1.4 Economic The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. Brisbane is one of he fastest growing regions in Australia, its economy accounts near about 48% of its state economic output and most its revenue is from tourism activities. Brisbane’s economy as rapidly expanded to be worth $135 billion in 2011-12. In terms of unemployment, Brisbane is one region that has a high rate of unemployment, which is estimated at around 20%. 2.2.1.5 Competitive Environment Major Competitors: Avis, Hertz, Budget, Thifty. Market Analysis:- The Car rental business is one thriving business within the Australian market. A total of 17.6 percent of Australian’s used a hire car in the past 12 months. Major players in the market include Avis, Budget, Hertz and Thrifty in which dominate Australia’s rental car market. Competitors are mainly situated at airports and major cities around Australia. Most of the car rentals thrive due to the fact that they purchase brand new cars every year so that when you rent with them. They also offers some of the best customer service around and vehicles at very competitive rates. Most car rental companies do business in airports and have offices in around the city. Some do try to minimize the ratio of population to where they can locate an office. This has brought success to most of the car rentals as this brings convenience to the customers 3. SWOT Analysis Strengths Weaknesses

! A unique and high quality service

that meets and exceeds customer expectation

! Superior customer service ! Excellent store location ! Well established Brand Name ! Low price strategy

! Reputation of using fairly old car

models ! Start up costs can be

overwhelming if not managed well

! The possibility of not getting the rightful personnel to suit the company profile


Opportunities Threats

! The use of its brand name to attract customers

! There is room to expand into other states

! Potential of new product development that can succeed

! High levels of competition both

local and international companies ! New competitor entering your

market ! Change in Custumer Preferences

4. Segmentation 4.1 Geographical

! Mainly within the brisbane region, ! International markets ! Interstate within australia

4.2 Demographical

! Male and Females, ! Leisure and business travels ! College students and young professional

4.3 Psychographic

! Enjoy holidays that include physical activities, mainly explores. ! Live busy lives and need to use time wisely to enjoy what they do ! Enjoy time spending with family and friends.

4.4 Behavioral

! People with an extrinsic behavior

5. Target Market Enterprise Rent-A- Car mostly specializes in loaning vehicles to customers who need a temporary vehicle. Reasons usually being accidents, theft, mechanical repair, or special occasions such as leisure and business trips and weekend getaways. Most of the business is mainly focused on three main markets: Leisure Travels Business Travels College students and


young professionals Age: 15+ Age: 25-70 Age: 18-24

The target market should be anyone who seeks a get away. Adventurous personality who enjoy travelling either alone or with family and friends.

The target market should be of business personnel who need a car, truck or bus (groups) in order to achieve their travel requirements. Also they should be business people with a possibility of repeat business.

The target market should be conscious of the environment and participate in green initiatives. Our target market should also travel about 3 – 4 times yearly, preferably only in the Brisbane Market

Job: Anyone who can afford but preferable working class

Job: Business Professionals

Job: Full-time student / young professionals

Our target markets want inexpensive ways to travels for short, medium or long term travel. These can be local, regional, or international clients.

Our target markets want inexpensive ways to travels for short business meetings, to and/ or from work. Some markets can also be large groups of business professional would to travel together as one big unit

Our target markets want inexpensive ways to travels for short vacations or spring break because they have limited purchasing power. Our target markets are also environmentally friendly and desire to reduce their carbon footprint.

6. Positioning Enterprise Rent-A-Car seeks to position its services as a first choice car rental company for people with a need of a car on a temporary bases. The justification for this positioning idea is as follows:- As the market already has major competition, Enterprise Rent-A-Car provides service that is exceptional at a low price. The company has developed its service product, promotion, pricing, and process, to communicate a superior, prestige image. This positioning is thus supported by all its marketing strategies. 7. Objectives 7.1 Company Objective

! Enterprise to become the largest car rental brand in Brisbane ! To be profitable business in a competitive market ! Provide customer satifaction ! Promote the quality service that will be at offer to key stakeholder in order to

achieve the greater satisfaction. ! Finding key partners that will help the company achieve its main objective.


! Achieve a return on investment

7.2 Marketing Objective

! Increasing market share- atleast gaining 20% of the the end of the year ! Sales/turnover growth- ! enhancing the strength of the brand ! Creation of customer loyalty ! Become profitable through managing costs effectively.

8. Marketing strategies Marketing strategy should be developed effectively and planned in consultation with team and considering the other factors like competitors. To develop a good marketing strategy for enterprise rent a car the following points should be put under consideration: Market research:- Effectively gather information about the market, such as its competitors, growth, social trends and demographics Profiling potential clients:- Identify target customer, Identify their needs Profiling competitors:- Identifying their pricing, Identifying their market tactics, Identifying supply chains, Identifying competitive advantage, Identifying and comparison of internal process of own and strength and weakness Create procedures to favor advertising objectives:- Listing target markets and devise a set of methodologies to attract in and hold them. A case objective could be to expand youngsters' attention to your items. Your comparing methodologies could be to expand your online social networking vicinity by posting customary upgrades about your item on Twitter and Facebook; publicizing in neighborhood magazines focused to youngsters; and offering rebates for understudies. Testing ideas:- Test a few thoughts and methodologies on your clients and your staff, and audit what lives up to expectations, pick various strategies keeping in mind the end goal to address your clients' requirements, achieve the clients inside your target showcase and enhance your business results. 8.1 Product Enterprise rent a car currently offers cheap rental cars across the world. It is popular for its locations and affordable rental cars. 8.2 Price Identifying how much customers are ready to pay the amount of imprint up you have to cater for overheads, overall revenues and installment systems, and different expenses. To draw in clients and hold your upper hand, you might likewise wish to consider the likelihood of rebates and occasional estimating. In Brisbane minimum


rent for an economy car is 54$/day, so enterprise rent a car should set the price 54$ or near 54$/day because it is famous for its cheap rental car 8.3 Promotion Promotional activities will include: Advertisement: Advertising the product on the main location, like in city and on the billboards, which are easily noticeable, because different and attractive advertisements can create place in the mind of new customer. Points that should be consider while advertising:

! Clarify the benefits of service, for example cheap rent & locations. ! Creating awareness for the product time to time ! Building interest from your target market, and also another gathering of people

of prospective clients

Public relations: Public relation can be done with the following:

! Media: Media systems concentrate on flowing messages through media channels to oversee how your business is depicted by the media. Media apparatuses may incorporate discharging media explanations and actuality sheets, offering on location media visits to encourage journalists to report positive messages about your business, and utilizing online networking to get the consideration of columnists and track columnists who report in your business sector. By creating great media contact records and building associations with key columnists to pitch media discharges and story thoughts to, you can utilize nearby, territorial or state media to: promote business

! Advertorials: Advertorials are advertisements as news stories or reviews in daily papers. Advertorials permit you to partner your publicizing with the validity of the daily paper. Numerous organizations utilize publicizing or promoting experts to help them create TV advertorials - which are usually utilized as a type of publicizing and item arrangement.

! Social media: Social networking releases you sidestep the media and straight to your clients. Utilizing long range interpersonal communication destinations, for example, Facebook and Twitter permits you to take after and be trailed by columnists, drive web activity, oversee issues by reacting rapidly to reactions or adverse observations, and expand presentation for your business image. Newsletters: Print or messaged pamphlets are a decent approach to advance your business, convey with clients and keep them educated of new items and services.regular bulletins can reinforce your individual associations with clients and reflect your business image and identity. An elegantly composed bulletin offers data of worth to your clients.


! Brochures and catalogues: From a business perspective, occasions are an

opportunity to counter client questions and assemble client certainty. They can likewise help you investigate your business and rivals, and assemble your mailing rundown. Verify you go to the occasion readied with advertising materials to disperse and an approach to gather data and client points of interest.

Promotional activities

! Marketing through coupons, competitions and contests.

Direct marketing

! Email marketing ! Direct mail ! Tele marketing

8.4 Place To give predominant client administration, spotting its extensions as close as could reasonably be expected to its clients. The accommodation of this administration gives Enterprise an upper hand over its opponents. Be that as it may, because of client needs, Enterprise opened its first on-airplane terminal area in 1995. The interest for this administration was great to the point that by 2005 Enterprise had in excess of 200 on-air terminal extensions. This implied that Enterprise kept in front of its rivals and expanded its piece of the overall industry. (http://businesscasestudies.co.uk) Enterprise uses two types of locations

! Firstly, they use home/city branches. These branches are placed in zones near to long term business accomplices, and additionally to a substantial business for individual clients.

! Secondly, branches nearby airport a location which provides a service for people travelling in or out of city. (http://businesscasestudies.co.uk)

In Brisbane city many business are running and enterprise should open its branches nearby the business locations in the city to get attention and get more and more customer and also nearby the locations of airport or railway station. 8.5 People People is an important factor in service delivery process, enterprise can enhance customer service by good and helping nature of the staff and fulfilling the


expectations of the customer, organizing service programs time to time, measuring the client service time to time by calling them or taking feedback from the customer on phone or by text message or by an email. Making set of principles for good customer service and screening actual service with the sets of principles, and making changes if it doesn’t reach the level of customer satisfaction or expectations Handle the customer enquiries in best possible manner. Hiring best staff for customer service will help in handling the customer complaints and enquiries. 8.6 Process As its slogan says “pick enterprise, we’ll pick you up”, Enterprise rent a car uses many ways to deliver the product e.g. simply by going to the enterprise office, by calling, on internet, or introducing mobile app for the customers. Giving an option to the customer to check the availability and booking of the car on websites and applications, after the booking of car, enterprise itself deliver the car to the customer. 8.7 Physical evidence As enterprise rent a car is famous for its large number of location, so in Brisbane company should use the locations where reach of the customer is easy. Locations like nearby airport, one office in the city, and at least 4 other locations around the city 9. Control and Contingencies Control defines the actual implementation of plan. Implementing of plans with the help of the staff, sharing all the goals, informing the responsibilities to each employee, providing necessary training to the staff, if new plans are made, so distribute the plans throughout the staff. Checking weather all plans are implementing correctly or not. Contingencies are plan B, what if our plan didn’t succeeded?? What if any unpredicted happening occur?? There should always be plan B, if plan A fails, plan B can be used instead. Enterprise rent a car cover many risks under its business like broke down of car in between, or customer is unhappy by the late delivery of car.

! Firstly, company need to look over the main goal, and side by side address the business operations and analysing risk by identifying it,

! Secondly, preparing the risk impacts or probability charts, note down the consequences which may occur in future, it can be natural disaster or any technical fault in car, or operational problem,

! Thirdly, communicating the both plan to everyone in the staff, and preparing staff to implement the other plan in failure of main with the help of conducting the practical or creating the real situations

! Fourthly, before delivering any car, check it thoroughly. Check all technical parts and systems of the car.


Company should hire risk manager for managing the risk in future, all the unforeseen happenings, and other unpredictable things can be controlled. Risk managers are well trained in managing all kinds of unforeseen happenings

10. Action plan

Action Step What needs to be done?

Responsible Person Who should take action to complete this step?

Deadline When should this step be completed?

Necessary Resources What do you need in order to complete this step?

Potential Challenges Are there any potential challenges that may impede completion? How will you overcome them?

Finding premises Management Within a week

Team, financial funding,

Good locations can be expensive, finding economical locations

Hiring and training staff

Human resource management

Within a 2 weeks

Book venue for recruitment program, and book program for training, financial assistance

May not find the good staff, run recruitment programs in more and more places

Advertisement Marketing team

Should be started on first week

Financial assistance, booking billboards, printing of pamphlets,

Some of advertisement may get expensive, hiring expensive locations for limited number of days


Finding key partners

Marketing team

Within a 3 months

Team, financial May be key partners have already been taken by other companies

Purchasing of cars Technical team,

Within a six months

Capital, parking space

May not find appropriate cars within a given period of time.

Will book cars as early as possible

Software- website, mobile applications,

IT team Before three months of commencement of business

Hire software engineer, capital

11. Marketing budget Car Purchase $210 000 Office & premises expenditure $100 000 Administration expenses $50 000 Mass Advertising $70 000 Media expenditure $25 000 Uniforms $15 000 Contingency fund $30 000 Total $ 500 000 12. Conclusion To conclude this has report has formed the base of the marketing plan for Enterprise Rent-A-Car by critically addressing the following:

! Clearly define the services that the company will offer, as well as their intentions


! Determine a plan (marketing) of action for positioning the service in the marketplace.

! Conduct and develop a market study in order to establish the type of customer

to be targeted.

! Study the external environment (the market and competition) to determine the various options available for the target customers.

! Decide and agree upon a marketing budget and make sure that your plan fits

into it.

! Establish the various marketing methods to adopt and implement to best promote the company idea.


13. References Australian Government, February 2012 People culture and lifestyle-about Australia, Australian Government department of foreign affairs & trade (http://www.dfat.gov.au/facts/people_culture.html). BTE Publication Summary- Australian Car Rental Industry Study (https://www.bitre.gov.au/publications/1988/files/op_086.pdf) Brisbane Airport, Brisbane airport Australia-car rentals (http://www.bne.com.au/parking-transport/car-rentals) Economy-Brisbane marketing, (http://www.brisbanemarketing.com.au/Brisbane-Facts/Economy.aspx). https://www.business.qld.gov.au/industry/tourism/support-for-tourism-operators/support-for-tourism-businesses/licences-permits-legislation Enterprise rent a car, About enterprise-customer service is our way of life, (http://aboutus.enterprise.com) Luther, W. M. (2011). The Marketing Plan- How to prepare and Implement it (4th Edition). New York: AMACOM McDonald, M. & Wilson, H. (2011). Marketing Plans- How to prepare them, how to use them (7th Edition). New Jersey: John Wiley & Sons. http://www.tourism.australia.com/statistics/arrivals.aspx Reynolds, P. & Lancaste, G. (2002). Marketing- The one semester introduction (1st Edition). Oxford: Taylor and Francis. (www.findmedia.com.au/media_directory/outdoor/7) (http://www.carsguide.com.au/car-reviews/toyota-prius-v-review-12200)


14. Appendices 14.1 Fig: 1

marketing plan- sukhdeep singh (13116973) & tawanda clive zuze (13123060)

Documents

marketing plan sukhdeep

car lecturer

car leasing

lb5202 marketing plan

marketing strategies

marketing objective

leading car rental company

marketing budget