Marketing Management Assignment

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  • Topic: Car rental, Car rental companies, Marketing
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  • Published : March 26, 2013
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MKT 306
Marketing Strategy

First name: Dilara
Surname: Bulut
Student no.: 119147630
Adress: Hüllerstr. 21
44866 Bochum
Germany
Return date: 1/10/2012
Center: International Business School Lippstadt, Germany |
Module leader: Sudipta Das
Table of contents

1.Executive Summary1
2.Introduction2
3.The Current Situation3
3.1SWOT-Analysis3
3.2PESTLE-Analysis6
3.3Differential Advantage- USP (Unique Selling Proposition)11
4.Recommendations11
4.1Segmentation, Targeting & Positioning11
4.2Marketing Goals and Objectives14
4.3 The Marketing Mix...16
4.3.1 Product16
4.3.2 Price16
4.3.3 Place16
4.3.4 Promotion17
4.4Implementation and Control18
5.Conclusion20
6.Appendix21
7.References25

1. Executive Summary

This report tends to get an insight into the global marketing strategy of Hertz in the U.S. car rental industry. Though Hertz is the world’s largest car rental company and puts much emphasis on customer satisfaction, some customers are not satisfied. This is a lurking hazard as the competition in the U.S. is enormously regarding this segment. The idea of their marketing strategy is to differ themselves from the competitors by a high level of customer service, their innovation spirit, technological development and by offering environmentally friendly electric cars. This marketing strategy effects an enhancement of the brand image which will have a positive impact of the company and its stakeholders.

2. Introduction

Hertz a U.S. company is the world’s largest car rental company with 8500 locations in 150 countries. Because of the fact that there is a high amount of competitors within the Car Rental Service industry like Avis Budget or Enterprise Rent-A-Car companies have to distinguish themselves through customer service and prices to win new customers and to retain existing customers. Due to the high intensity in this industry companies have to offer same prices, features, benefits and therefore lose potential profits. Another problem Hertz has to face is the rising fuel costs. A main part of Hertz Car Rental revenues is effected by airport locations. If the airport Industry raises the price of their ticket, the number of customers willing to spend money in travelling will decrease. This would hurt the profitability. But continuing the marketing strategy by focusing on improving customer satisfaction, employee satisfaction and asset management an economic growth is achievable. (Hertz Annual Report, 2011)

3. The Current Situation
4.1 SWOT-Analysis
Strengths
One of Hertz Car Rental’s strength is the global operational structure. Because of the reason that Hertz has the control over two Car Rental Service companies ‘Dollar’ and ‘Thrifty’ – Hertz is the world’s largest car rental company. This global operational structure sets Hertz apart from its competitors, allows them to create new customer relationships and to increase market share. Moreover the company stands for a high level of customer relationship and their aim is to meet the needs of their customers. “As part of our innovation revolution, we are putting the power of Hertz in the hand of our customers 24/7”. (Hertz Annual Report, 2011) The unique services which are provided to customers like the ‘Rent it here/Leave it there’ (to rent a car for one way travel), ‘Connect by Hertz’ (to rent a car for hours), ‘Rent2Buy’ (to rent a car you wish to purchase in the future) programs also help Hertz to differ from the competitors. Furthermore the innovation spirit and new technologies set Hertz apart from the competitors. The company introduced free mobile device widgets which allow users to make reservations, to find Hertz locations and receive promotions over the smart phone. The steady growth is another strength. After a steady decline from...
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