Luxury Car Rentals for Long Durations - New Service by Car Rental Company

Car Rental Company has introduced a new service of renting luxury cars for long durations. The service includes hatchback, sedans, SUVs and passenger buses with the option of providing drivers. The cars are installed with GPS tracking. The target market includes high-income group, adults above 25 and families on vacations. The service is positioned as luxurious, customer-friendly, effective, expensive, royal, value-adding and of superior quality. The competitive advantage is the ability to rent out luxury cars including Ferrari, Rolls Royce, Mini Cooper, Range Rover, Audi, Mercedes and BMW. The pricing strategy adopted is premium with dynamic pricing. The promotional mix includes social media marketing, television ads, billboards, digital marketing and tie-ups with local agents.

Car rental company
Luxury car rentals for long durations

Description of the new service
 The new service is renting of luxury cars.
 Few of these cars are purchased by the business and rented out to
customers.
 Other owners of cars can also register their cars with the business.
These cars can further be rented out to customers.
 Drivers can also be provided upon request.
 Cars are installed with GPS tracking.
 Hatch back, Sedans, SUVs and Passenger buses are available.

Target Market
 Target market of a business involves the set of customers whose
needs the business aims to fulfill (Weinstein, 2013).
 The target market of the service can be selected from various
demographic and psychographic segments.
 Psychographic: Primary target market involves tourists who are new
to the city and have a high purchasing power.
 Demographic: High income group and adults above the age of 25 are
targeted.
 Families on vacations are also targeted by the business.
 These customers are targeted as they are most likely to avail this
niche service

Positioning strategy and competitive
advantage
 Positioning of a particular product or service is the image of the
product in the minds of its consumers (Armstrong, et. al., 2015).
 The aim is to build a positioning that reflects the service as luxurious,
customer friendly, effective, expensive, royal, value adding and of
superior quality.
 The competitive advantage of the brand is the ability to rent out
luxury cars including Ferrari, Rolls Royce, Mini Cooper, Range Rover,
Audi, Mercedes and BMW.
 The service offered is superior as compared to competitors because
the product is unique and price is premium. The promotional ads
would be creatively curated and the physical evidence includes
luxurious cars which are very different from other car renting firms.

Distribution strategy
 Distribution strategy of a particular business reflects upon all the channels that a
product or service goes through before reaching the consumers (Lovelock, 2011).
 Customers can avail the service by registering on the company’s mobile
application.
 The owners of luxury cars are approached to register their cars.Customer can then
select the car of their choice and pay advance.
 Customer’s details would be received and the car would reach the customer’s
doorstep at requested date and time. Upon completion of service, remaining
amount would be charged from customers and the car would be returned to their
owners after cleaning.
 Distribution strategy of creating an online market place is appropriate owing to the
increasing advent of technology and effectiveness of this service design.
 This enables business to create a bridge between car owners and car renters.

Pricing strategy
 Deciding upon an effective pricing strategy largely impacts business
profits as well as service positioning (Schindler & Schindler, 2011)
 Premium pricing strategy would be adopted by the service. This
refers to the process of pricing a certain product or service very high
in order to recover costs and encourage favorable perceptions among
buyers.
 Dynamic pricing strategy would also be adopted.
 Dynamic pricing of a product or service indicates that the price would
vary upon external factors (Abrate, Fraquelli & Viglia, 2012).
 The service would be priced premium.
 30% of the amount received would be given to the owner of the car
 50% of the amount would be charged from the customer in advance.

Promotion strategy
 Social media marketing: Promotions done using social media
platforms (Tuten & Solomon, 2017).
 Television advertisements to reach out to a wide customer segment
and deliver a message within a short span of time (Zigmond et. al.,
2013).
 Billboards and Hoardings across the country to target daily passerby.
 Digital marketing through search engine marketing can be done to
optimize search process of the brand (Chaffey & Ellis-Chadwick, 2016)
 Tie-ups with local travel agents
Promotional mix elements objective
Social media marketing Increased brand reach and
transparency of customer
feedbacks
Television ads Brand positioning
Billboards and Hoardings Brand awareness
Digital marketing Optimized brand search
Tie up with local agents Increased customer base

References
 Abrate, G., Fraquelli, G., & Viglia, G. (2012). Dynamic pricing strategies: Evidence from
European hotels. International Journal of Hospitality Management, 31(1), 160-168.
 Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson
Education. United States.
 Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge. United
Kingdom.
 Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
 Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
 Heller B.C., & Parasnis, G. (2011). From social media to social customer relationship
management. Strategy & leadership, 39(5), 30-37.
 Kotler, P. (2015). Framework for marketing management. Pearson Education India.
 Lovelock, C. (2011). Services marketing: People, technology, strategy. Pearson Education
India.

References
 Pathak, A., & Makwana, K. (2015). Business Promotion strategies for small
enterprises. SAMVAD, 8. SIBM, Pune.
 Schindler, R. M., & Schindler, R. (2011). Pricing strategies: a marketing approach.
Sage. United States.
 Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.
 Weinstein, A. (2013). Handbook of market segmentation: Strategic targeting for
business and technology firms. Routledge. United Kingdom.
 West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating
competitive advantage. Oxford University Press, USA.
 Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
United Kingdom.
 Zigmond, D. J., Bayer, J., Hecht, G., & McQuade, B. (2013). U.S. Patent No.
8,516,515. Washington, DC: U.S. Patent and Trademark Office.