Business Administration: Car Rental

Running Head: BUSINESS ADMINISTRATION 1
Business Administration: Car Rental
Business

BUSINESS ADMINISTRATION 2
Table of Contents
Section 1: Introduction................................................................................................................................3
Section 2: The Importance of Market Segmentation and Positioning and the Role of Secondary Research
in Identifying Target Markets......................................................................................................................3
Section 3: Secondary Research Findings......................................................................................................4
General Market Trends............................................................................................................................4
PEST Analysis...........................................................................................................................................5
Political................................................................................................................................................5
Economic.............................................................................................................................................5
Social...................................................................................................................................................6
Technological.......................................................................................................................................6
Demographic profile and trends in Hertfordshire...................................................................................6
Local Competition....................................................................................................................................6
Trends within marketing such as the growth of digital communications................................................7
Section 4: Interpretation and Analysis of the Findings 500.........................................................................7
Opportunities..........................................................................................................................................7
Threats.....................................................................................................................................................8
Perceptual Map.......................................................................................................................................8
Section 5: Marketing Recommendations 500..............................................................................................9
Target Market Segment...........................................................................................................................9
Market positioning................................................................................................................................10
Product strategy....................................................................................................................................10
Price strategy.........................................................................................................................................10
Place Strategy........................................................................................................................................10
Integrated Marketing Communications.................................................................................................10
Section 6: Conclusion................................................................................................................................11
References.................................................................................................................................................12

BUSINESS ADMINISTRATION 3
Section 1: Introduction
When an organization plans to introduce a new business and operations in the market, it needs to
consider various aspects of the market. Considering these different factors, an entrepreneur can
launch his/her new business in the marketplace. The major factors are such as competition,
strategies, changing market trends, changing preferences and tastes of customers etc. This report
is focused on preparing a report for an entrepreneur who is planning to introduce his business in
car rental industry in UK. The entrepreneur is launching this business within Hertfordshire and
he has £250,000 to establish this business in this county. This report defines the significance of
positioning and market segmentation. Secondary research plays an important role recognizing
the target markets. It includes some of the strategic frameworks such as SWOT analysis and
PEST analysis to identify the market trends and target markets. At the end, it includes some
marketing recommendations which will help the entrepreneur to establish this car rental business
successfully.
Section 2: The Importance of Market Segmentation and Positioning and
the Role of Secondary Research in Identifying Target Markets
In today’s competitive business world, marketing and promotion are two important aspects.
Organization includes various processes which are recognized as marketing process. There are
various organizations which emphasize on their customers within their resources and
competencies. They use different methods and techniques to understand their customers. To
approach the potential customers for their products and services, firms use three marketing
aspects i.e. market segmentation, target market and positioning. According to Peteraf, Gamble
and Thompson (2014) these are very important aspects which assist an organization to get most
appropriate customers for its products and services. The major purpose of market segmentation is
to divide a larger targeted population into more defined targeted groups (Peteraf, Gamble and
Thompson, 2014).
Under this process, the entrepreneurs use different strategies and factors like lifestyle,
demographic and usage to recognize the particular market segments. When a company
introduces a new business in the market, it is very important to identify the target market
segment because it helps it to develop the impactful marketing communication and advertising

BUSINESS ADMINISTRATION 4
strategies. It enables an organization to approach the right audiences for right products and
services. By identifying the target markets, the entrepreneur will be able to identify its customers
and to develop a strategic plan. This strategic plan helps the organization to attract targeted
customers. Moreover, positioning is also one of the most significant factors which marketers use
to determine how to effectively communicate the attributes and features of their products to the
targeted markets. Identifying a positioning creates an image of firm’s products in customers’
mind, defining the most significant advantages which differentiate it from similar products of
competing brands (Upton, Teal and Felan, 2010). It is important because it allows the
organization to differentiate itself from its competitors.
Secondary research plays an important role in identifying the target markets and market
opportunities. The major sources of secondary research are company’s reports, newspapers,
internet, competitive intelligence, government reports, political agencies, financial and economic
departments etc. By using internet and competitive report, a business can find the information
about competitors’ strategies and current market trends. To conduct secondary research for this
car rental business, the major secondary resources are such as internet, company’s report,
political reports, competitors’ website, customer’s response on social media etc. For this
research, these resources will be used because they will assist the market consultant to find out
the market opportunities and competitive pressure in the England car rental industry (Sekaran
and Bougie, 2016). Internet and social media are the most useful sources as a larger population in
the country is active on internet and social media sites. So, it is the best way to analyze the
opportunities and market trends in car rental industry.
Section 3: Secondary Research Findings
The above secondary research found out that there are various trends and external factors which
may have a huge impact on car rental business in Hertfordshire (Sekaran and Bougie, 2016).
Before introducing this new business in the market, it is very important to consider these factors
and aspects. The major findings of secondary research are stated below:
General Market Trends
According to the findings of secondary market research, the enhancing incorporation of
advanced technologies in car rental services as one of the most important factor which will cause