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For instance, Enterprise has driven considerable efforts to offering replacement vehicles resulting from mechanical failures, accident or theft. According to Kettle (2002), consumers continue consuming a partly fulfilling product or service for the lack of access to a higher satisfying one. Consumers are always on the look-out for more consumer-specific products and services. Designing products and services in response to specific consumer needs and desires is the gateway to gaining an instant and growing foothold in a new market.
Market research must inform product development, service delivery and managerial decisions. In regard to the Competitors element, Enterprise needs to establish the competitive strategies used by its opponents to penetrate and gain positioning into the market. In addition, the ability of a new firm to take dominance in any market rests on its ability to establish and maximize on the weaknesses of its opponents. Hence, it is advisable that Enterprise conducts an extensive research on the endowments, strategies and weaknesses of existing firms in the market. 2. Market Analysis In context, enterprise is required to conduct a detailed marketing audit to review marketing effectiveness. As such, the company should focus the trends Of the market, its market position, the environmental opportunities, and possible threats. In addition, the company should identify organization’s ability to cope up with demands of Australian market, which is considered different. The Car Rental Market in Australia suffered immensely from the 008-09 global financial crisis (KGB), but has continued to recover, though at a relatively slow speed.
The market has assumed an annual growth rate of 1 over the last five years (2009-14) reaching a revenue of $1. 4 billion in 2014. The growth rate has, however, been very vibrant in recent years with 13% and 13. 7% in 2013 and 2014 respectively. The drastic growth has significantly increased competition resulting from more vigorous efforts by existing forms to maintain and increase their positions, and from the entry of new players. The spread of market players has seemed to depict a similar pattern to the striation of the population.
Ideally, producers need to get as close as possible to their target market to ease market research, flexibility, and ease the distribution of products and services. In the Car Rental market, industry participants have a specific reason for getting close to target markets; easing the return and tracking of rental vehicles. Research reveals that over 75% of industry establishments are located in New South Wales, Queensland, and Victoria-Australia’s most populous states. Similarly, Enterprise decision to establish locations in Brisbane should be seconded by demographic figures. Soot Analysis Arguably, Enterprise Rent-A-Car global entity has more strengths than weaknesses, evidenced by the strong product development. Chiefly, the brand enjoys a strong product development, large market share, and a strong brand identity. These factors are seconded by an excellent customer service, distinct pick-up service, and a strong international market development (Enterprise, 2009). The mother company in UK also provides specific restrictions on certain cars. As part of the opportunities, Enterprise also promotes energy conservation by renting hybrid energy saving cars.
A serious wreath is the Hertz Car Rental Services since it has a major presence globally, most especially in the Airport. Given the external SOOT analysis, it is advisable to examine Australia SOOT situation. For once, Enterprise’s strength is based on its presence in the Australian market. For weaknesses, the company still lacks a sound organizational framework to manage the business. For opportunities, Enterprise can improvise its hybrid cars in Australia. For threats, Enterprise Australia is being faced with internal challenges as Hertz Car Rental has its presence in Australia Table 1. SOOT Analysis Strengths Global presence Well established brand Operating in a high-income country Weaknesses Local market not well analyzed Operating only Brisbane metropolitan Opportunities International sub-contracting Availability of hybrid cars Work opportunities for locals The rats Well developed, well trusted local rivals Foreign rivals with better terms of operation 4. Segmentation This refers to a group of people or organization sharing almost similar characteristics similar product needs (Kettle 2002).
Decisively, market segment is the extremes that Enterprise will be required to undertake its operations. The goal of the market segmentation is to aid Enterprise marketers determine the most specific market. Traditionally, has been targeting airline travelers, even though urban dwellers still hire Enterprise services. While entering the Brisbane market, Enterprise strategic management are requested to engage market density to determine the number of potential customers within the city parameters. The following are the list of potential cities surrounding Brisbane metropolitan.
The list includes the City of Brisbane, Logan City, Redline City, Morton Bay Region and the Physic City. 5. Target Market Given the complexity of the Australian market, it is advisable to adopt the appropriate variables that govern the target market selection, which includes the identification of the appropriate targeting strategy. The segmentation of profiles, evaluation of relevant segments, and selection of target markets must also be considered. It is advisable to defragmenter the market in terms of age, ethnicity, education, income, race, occupation, gender, family life cycle, religion, and social classes.
With market differentiation, it will be possible to determine which is best market-to-market different products are (Kettle, 2002). Once the targeting has been accomplished, it will be advisable to the select a marketing mix strategy one that concentrates on each specific subgroup. Using the concentrated target market approach, Enterprise Rent-A- Car strategists will understand the aspect of the market. 6. Positioning Traditionally, Enterprise business model tend to impact on different strategic position and marketing positioning. Stayed et al. (2014, p. 4) believe that marketing positioning is essentially mutative in the sense that a single product may have multiple value propositions that result in varied marketing positioning strategies. In order to approach the market in a much decisive way, Rent-A-Car strategists have to develop value propositions such as innovation, performance, adoption of unique selling points, design, pricing, convenience and customization. For it to achieve this, the company should propose value propositions, which are easily recognized by customers. Therefore, the strategists should use qualitative approaches in order to position themselves lucratively.
As part of advice, matrix models seem responsive since it positions the products comprehensively. During positioning, it is advisable that Rent-A-Car identifies the direct competitors, determine how the brand can position itself, and understand how competitors should position their brand (Sharply, 2009). It is also essential to design the brand positioning statement as well as test the efficacy of the brand Rent-A-Car and positioning statement. Besides, it is vital to compare the positioning of the competitors to identify the uniqueness and understand how each competitor should position their brand. . Objectives Ideally, technical marketing objectives examine the market share by launching a number of new products to the central distribution channel. Given that marketing is shifting towards retention Of profitable customers and the re-selection of unprofitable customers, it is important that Rent-A-Car place itself in light with the proper Return on Investment ratio (McDonald et 2002). The report further advises the movement from abroad to a more specific marketing objective that starts from point statement to the nature of Rent-A-Car business strategy.
The broad company objectives must be translated into key results areas, which are the areas in which success is vital to the firm. For that reason, market penetration and growth rate of sales that amount to key results areas. It is also essential to establish sub-objectives necessary to broaden objectives related to product sales, volume goals as well as the geographic expansion from the main Brisbane city to other cities located near the business entity (Emery, 2012). Thus, it is advisable to integrate comprehensive advertising strategies as will be analyzed in the incoming section. . Marketing Strategies Strategists should be advised that the marketing stratagems should be established at the end of the marketing plan. Lee et al. (2014, p. 192) argued that these strategies are derived from the goals, objectives, analysis and racketing audit developed before creating strategies. In any case, marketing strategies should satisfy the original goals and objectives of the business. Thus, the incoming suggestion can be adopted to ensure that Enterprise improves its overall marketing situation (Keller, 2007).
Rent-A-Car should engage in multiple workshops and business seminars, especially those related to the wider transport of the Brisbane community. Equally important, the enterprise should join the local business organization and networking groups especially those requiring fewer fees. This will be a broader strategy to mention the business to other individuals (Keller, 2007). Additionally, the Enterprise should heavily engage in the business events as a broader way to communicate to the society (Emery, 2012). Moreover, it will be advisable to create a heavy online presence.
This is possible with the development of an official website, where bookings can be made. For informative purposes, it is reliable to create multiple blobs where visitors will interact with the company products (Cravens and Pierce, 2008). Besides, it is also advisable to use social media comprehensively. Social media companies include Faceable Pages, Twitter Accounts, Flicker Accounts, and Mainstream among others. While combined, the above social media strategies improve the overall competitiveness of the project.
Figure 2: Designing a marketing strategy However, as much as the above marketing strategies seem lucrative, it is advisable to encourage the integration of the ups of marketing, commonly referred to as the marketing mix. The marketing mix was initially made up of four elements including price, product, place, and promotion, but was largely criticized for focusing on the producer and not the consumer (Schultz 2001 Increased criticism led to the realization of the ups. All as stem from the microeconomic element price function as complements to each other.
No single element of the mix can solely achieve the objectives of the organization without considering the role of the others (Doyle, 2004). The marketing mix provides a means for the organization to achieve its mutually agreed objectives (Elk, 2000). 8. 1 Product There is a need to determine the quality of the product before fully packaging the product especially the packages, quality, and range (Doyle, 2004). Rent-A- Car should have an operational office of the product or brand managers. These offices assume complete responsibility for determining marketing objectives and marketing strategies for each specific product.
Most importantly, the product must be designed in response to consumer needs and desires. Market research informs the producer on the gaps in the current product portfolio and thus acts as the most reliable source of product development through creativity and innovation (Roy and Psychotherapy, 2010). The level of satisfaction consumers derive from the consumption of the product determines the degree Of consumer loyalty. As such, Enterprise needs to design and implement constant evaluation models aimed at guessing how consumers rate their products and services. 8. Price Price includes Price level, credit terms, price changes and discounts. The Car Rental market is monopolistic in nature: having many sellers and buyers leading to high degrees of competition. In such a market, the consumer is the price giver. The price consumer is willing to pay is determined by the value the customer attaches to the product or service (Druids, 2007). In setting competitive prices, the company must ensure that prices seem quite low to consumers upon comparing them with the quality of service (Druids, 2007). The secret is ensuring that performance outpace consumers expectations.
Rent-A-Car should consider this strategy positively since it improves the overall competitiveness of the products when it comes to price, as well as revenues. The average price for each period must be established to determine the direction of the pricing trend. 8. 3 Promotion Predominantly, promotional strategies seek to enhance the overall communication channels (Doyle, 2004). Marketing communication is the dialog between the business and the unit that presents different products to the customers at the pre-selling selling and post selling stages.
Rent-A-Car can adopt personal selling, publicity, advertising, direct marketing as well as interactive marketing and sales promotion. The major objective of promotion is to convince the potential buyer that your product is much better than that offered by the opponent. Promotion strategies thus need to be tailored with respect to the desires and needs of consumers in the target market (McDonald et al. 2002). The target market of the industry is young people (professionals and students) aged 18-34, both male and female.
Among the most prevalent needs of this category of consumers is to have access to a rental car that is cost conscious; they have limited purchasing power. Research also reveals that these people have the desire to travel at least 3 to 4 times annually. Most importantly, the target market determines what promotion strategies to be used. Enterprise should engage online, radio and magazine advertisement to effectively reach the target market. Young people are increasingly using the Internet as their primary source of information.
Thus, the company should leverage social media platforms to reach their target market. 8. 4 Place The product promotion zone is the city of Brisbane and its surrounding environs. Reasonably, it will be advisable that marketing strategist adopt schemes, which are responsive to the Australian market. Customers expect to get the product in the most convenient place as possible, in the right time, in the right quantity and quality (Doyle, 2004). Enterprise, therefore, has the role to ensure that the distribution channel does not compromise the quality of the product and must be delivered in time.
Channel and logistics management is among the pillars of concentration under this category. Place has also evolved to refer to how marketers displays the product to potential buyers (McDonald et al. 2002). An example Of this is window shopping and online presentations. The customer must not strain to locate or evaluate the product. With the realization and growth of online business, the company must be in a position to shield their customers from the effects of increased cyber terrorism and crime.
The safety of the place is also of absolute value to the customer and must be guaranteed. 8. 5 People The staff that has direct contact with the consumer influence their level of satisfaction (Kettle, 2002). In rating the quality of the product, consumers cannot detach the staff from the product. The way staff members interact with consumers can either promote or tarnish brand image. In the present highly diverse market, customers are seeking for organizations that show the value to their unique values and belief systems through their frontline staff.
Specifically, consumers feel quite satisfied when served by employees who show good understanding of their way of life ad express respect to his her religion and socio-cultural background. To appropriately address this need, Enterprise needs to ensure that its staff stem from different social-cultural, religious, economic, and political backgrounds. This will improve the firm’s capacity to deal with consumers from different backgrounds. However, Australia has increasingly become multicultural following increased immigration and globalization.
Accordingly, it is impossible to have every culture represented in the company’s employee list. In this respect, Enterprise needs to design and implement diversity training programs for its employees. This will not only help improve consumer service, but also act as a huge competitive advantage in terms of developing consumer specific products (Conrad, 2006). Sharply (2009) posits that an employees diversity provide he organization with a widened pool of experience, perspectives, attitudes, skills, and knowledge all of which play an important role in effectively addressing ever-changing consumer needs.
Diversity has long been credited as the most reliable source of innovation and creativity within an organization. 8. 6 Process The process Of delivering the service or products to the customer can have huge impacts on his or her satisfaction. Staff helpfulness, access to high-class information, and reduced wait time all contribute to improved consumer satisfaction (McDonald et al. , 2002). Organizations are increasingly engaging ewe technologies to help reduce wait time.