Problems Facing Enterprise Rent-A-Car

Problems Facing Enterprise Rent-A-CarERAC overview and requirementCompany backgroundEnterprise Rent-a-car or Enterprise Car Club is a car renting company that establish throughout 19 cities of UK. The companys primary customers are people that cant afford a car but quest to activate or watercourse dont need one or families that sometimes require a second car (Enterprise Rent-a-car, 2016). The company has a fleet of more than than 960 vehicles in UK only which parking at designated talk across the cities. The main benefit which customers receive is that they dont have to worry intimately the cost of ownership of a car. All they have to pay for is a subscription tippytoe when joining the club and small fee per ride.RequirementThe company is wishing to expand their operation to a new city of Vietnam that being said, at that place are some requirements which must be satisfied. First is virtually customers, the company require all drivers to have a validated driving license of 1 year or more. Individual customers that travel less than 4000 km a year is best benefited from the service. Because the renting procedures are done through smartphones app, so people with familiarity with smart devices are preferred. Second is about citys prospects, ERAC is a company that let people rent and drive cars to travel around so the city of their inhabiting must be a large city with infrastructure supporting car transportation because Vietnamese have non get used to car transportation, they are familiar with motorbike more than cars. Also, there must be spaces for parking bays of the fleet of vehicles and they must be accessed with ease. urban center pick and marketing planCity pickIn Vietnam, according to the General Statistics Office, there are only 2 cities that have more than 7 million people which are Ha Noi (7.2 million) and Ho Chi Minh City (8.14 million) and are classified as special grade urban area with ontogeny economics. Only these two cities can satisfied the large cities demand of ERAC, the rests are not enough. But only one city pick up is allowed, so more details are needed.The two cities are both qualified as special grade cities designated by the government but the economics and another(prenominal) factors are different. This part of the essay go a mode attempt to differentiate the two cities and will deliver the choice of city according to elements that are most sufficient for car renting industry which ERAC is operating in.To begin with, the growth speed in 2016 using GRDP of Ho Chi Minh city is 476.988 billion VND and Ha Noi is 140.005 billion VND according the GSO. That is, Ho Chi Minh Citys economics is growing much faster than the capital in 2016 which leads to a higher living standard of the population in Ho Chi Minh City.Next is about urban infrastructure which support inner city transportation, in Ho Chi Minh City, according to an official report, the officials has focus the investment into infrastructure developm ent particularly, 3.849,1 billion VND of ODA has been allocated for building, upgrading citys roads, bridges and transportation system. Ha Noi, however, does not share the same view as Ho Chi Minh City. The officials of Ha Noi deployed the national investment mainly for citys parks, entertainment centers and public accommodations. Again, Ho Chi Minh City is being developed reform in term of infrastructure.Another subject field relating to car consumption rate of each city, this means that the number of cars being registered and put into use in terms of day. Amazingly, Ho Chi Minh City in 2016, average daily newly registered 4 wheels vehicle is 250 per day according to Ho Chi Minh Citys Traffic Safety Committee. Ha Noi, similarly, has 230 four wheels vehicles being registered each day which show that the consumption rate of both of the cities is very high.About the number of tourists in and out of the city, both cities witnessed a good year in tourism industry. In 2016, Ho Chi Min h City welcomed more than 5.2 million foreign travelers to the city. Un alike Ha Noi, there was only 2.04 million foreign travelers visited the city in 2016. The reason why this paper favors foreign travelers is because international tourists have a higher chance of renting a car instead of a bike because they are already familiar to cars.Last but not least, competitors that can pose a threat to ERAC in both of the city are not many. In both cities, some big and nation-wide companies like Phi Loan Transportation, Kims Self-driving car for hire, Thanh Buoi transportation, Uber or Grab can be major competitors but their credit line model is not like what ERAC is using and they cannot be ERACs competitive rivalry. But the threats from substitution like motor bike, bus, taxi can be serious and there is a new type of public transportation in Ha Noi, the BRT bus, which is a rapid moving bus that operates in a priority lane. This makes Ha Noi an unsafe place for expansion of ERAC business .So, with all the advantages that Ho Chi Minh City can provide, Enterprise Rent-a-car should choose this city to be the next finish for expansion.Marketing planAdvertising methodsDigital tacticsPPC Pay Per Click advertisement 3.000Search engines such as Google or Yahoo Search exercise a vital role in modern internet surfing activity. Whatever we need to find on the Internet can almost be found by using search engine, that including finding a car renting company. Because the expansion is in Ho Chi Minh City only so the local residents search must be prioritized.Social media and social campaigns 10.000As suggested by ERAC, social media such as Facebook, Twitter is a good delegacy to deliver the companys messages to young, modern customers. A funny, eye-catching, meaningful piece of advertisement can go viral on the internet through social media because people will keep sharing it to their friends. The only thing the company needs to ensure is that the piece of advertisement must be interesting.PR promotions 5.000To an existing customer, nothing better than a special offer, a discount or an exclusive service. That will fortify their belief in the firm that the company also care about the current customers as much as finding new customers. Even they will plead the companys services to their friends or relatives just because of the special offer for current users.Youtube videos 5.000Videos on Youtube can have a very large cover area and just like social media, people tend to share what they like with the other. Especially with a video that hit the right target customers, they will remember the message delivered in that video and the company will have a better chance to persuade potential customers to become hearty users. The company also needs to consider about a short ads at the slit of other video on Youtube.Total compute needed 23.000Physical tacticsPosters and billboards 10.000Posters are usually the avatar, the profile picture of the enterprise. They deliver a draft message of the companys core values and products/services. A good poster will act like the representative of the company because it contains much important information about the company that potential customers need to know. Moreover, when people keep seeing that poster over and over again for some time, it will be easier for the company to introduce about itself when the customers come to use the services.Bay signs 1.000Obviously, people need to know where they can get their ride and where the bay is. This is essential since it act like a guideline for customers and show that the company is presented throughout the city. Sometime these sign can share the same function with the poster.Vehicle livery 2.000Vehicle livery is an transparent and important means of advertisement because when customers driving the branded vehicles on the street, that car will work as a moving logo of the company. Of course, in the bay there must be some cars that arent branded for customers choices but it will cost more when they want a car like that.Total budget needed 13.000Grand total 36.000Big ideaAccording to a columnist of Marketing Land Peter Minnium, an effective big idea in advertising needs 3 elementsPiercing insights Owning a car is a pleasant feeling of civic life and is one of the biggest purchases for most people. However, this is not an lite decision for some people since the cost of keeping a car isnt low. But the need of a car in modern civilization is positive particularly for civic pride.Brand connection Enterprise Rent-a-car club is the exact answer to please your demand of a car. With a small subscription fee and a small fee per ride, all you have to do is just take out your phone and click the button in our app to have a ride parking in bays across the city. All costs are on us but the ride is yours.Succinct expression ERAC. The car in your very own pocket.With the remaining 14.000, we can communicate this big idea through means of adv ertisement on television. Creating of a short movie, using real people who are experiencing the services, this will be a solid proof of the quality that ERAC can bring about.ConclusionAlthough this kind of business model of ERAC is instead new to Vietnam, it will be a new experience for the people and maybe the company can use that to their advantage. There is a long way to make the business a success but with the big idea, people will understand and profit will come.ReferencesMinnium, P. 2015. Marketing Land. 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