Rental Car Retention Program -

Rental Car Retention Program - The rental car industry is quite competitive and complex and, since more and more companies are placing employees on fixed budgets, there is greater competition for the dollar. To effectively design a loyalty program that will meet the needs of a majority, certain information must be collected:

What is the typical business travel like? Demographics, etc.

What are the most important things for a business traveler regarding their rental car?

Which company do they currently prefer and why?

Of a list of incentives, what numerical rank do each of these have by way of importance (dollar discount, coupons for mileage or partner restaurants, free hotel upgrades, free size upgrades, vacation packages for personal use based on volume, better business rates, easier check-in/checkout, travel assistance, etc.)

Are those needs being met now? If so, how -- if not, why? (How to identify, 2010).

Then, research could occur using 4-5 focus groups in major travel cities. Business travelers have very little time, so using online conferencing technologies, prescreening the invitees, and partner with other companies who have similar interests might incentivize the participation. Once the qualitative portion of the data is collected, we will have a basic understanding of what the client needs. Then, to make the results far more meaningful, we will need to collect a larger quantitative sample from different regions, demographic groups, and since we are international, countries. This will be done using several survey methods, each with a small coupon attached to make it worth the client's time. For example:

Place a survey in every car rented for x period of time, attach a coupon or spiff to survey if completed, or even a few dollars off the rental.

For every client that we already have an email, send out an email survey, again, with a quick spiff.

Then, analyze the data and form a more appropriate retention program focusing on basic needs from respondents (Evans and Stroll, 2006; Kiley, 2005).

Part 2 -- Clock Manufacture - Market segmentation is a way to differentiate a group so that the seller of goods or services does not concentrate on the entire universe, but on a group of high potential customers that are more likely to purchase the product. In the case of a clock and watch manufacturer, we would need to know the quality and price point of products to be completely accurate. In this scenario, though, we will assume a higher end approach. Research shows us that over ae of people prefer durability, status, and product quality in watches and clocks. So, the segmentation for this audience would be based on some clear demographic notions (Yankelovich, 1964):

Age -- Men and women 30+

Income Level -- Likely middle high to high income levels. Lower income levels might be content with inexpensive, throw away products, and are less interested in paying more for high quality.

Educational Level -- Probably college or college plus professional degree; assumes higher success ratio and fancier dresser.

Profession -- Professional (doctor, lawyer, executive type)

Lifestyle Indicators -- High end lifestyle; likely drives new model or foreign car; dines out often, dresses in nicer attire, prefers high-quality merchandise that also has "social" value, image conscious, higher-end cologne or perfume; selective and careful; price less of a modifier than style (Evans and Stoll).

Part 3 -- Positioning of Maserati- Maserati has just introduced a new model that will directly compete with Porsche, Ferrari, Jaguar, and the BMW Z8. This puts it in the consumer range of $70-100,000; a smaller segment for auto manufacturers. First, we would analyze the market segment that would likely be Male, Caucasian, over 45, married, Executive/Managerial, with family income in the excess of $200-250,000. Because Ferrari does not have the same resources for advertising as, say Porsche/Audi, we would need to be selective in our strategy:

Product differentiation Cars communicate value differences by image. There are more BMW's and Porches being driven than Maserati. Position as a unique and superb driving machine, and extension of personality. Never call it a car.

Brand leadership -- Emphasize hand crafted and unmatched quality. Brand has been known for decades as unmatchable.

Head on positioning -- Emphasis on not really an apples-to-apples comparison; emphasize specs and luxury differences. FOCUS on innovation. Use statistics of the number of BMW and Porche's sold, then compare with that special person -- make user believe they are purchasing an investment worthy of a King.

Lifestyle Positioning -- Use purchase to boost image and exert success

Cost -- Not really as much of an issue at this range; but simply indicate that only special people can handle this vehicle; all routine maintenance will be covered in full for 5-years. Treat client like VIP.

Positioning venues -- Purchase list of high-end executives and send an invitation for a regional preview luncheon and test drive; consider high-end spokesperson and periodicals. Emphasize fact that this car is not on television because only a few people can appreciate it. Perhaps anticipate demand by having a few options that require customization (color of leather, embossing of initials, etc.) Partner with high-end sound system to customize sound for clients music tastes (Searls, 2006).