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Transcript of easyCar.com
BA920-Global Marketing Management
Case Background & Facts
Solutions and Alternatives
Marketing Mix - Recommendations
Marketing Mix- 4 P's
John J Lawrence - Journal of the International Academy for Case Studies - easycar.com - Vol. 11 - Issue 3 - 2005 - pp. 1-13
BA920-Global Marketing Management
was founded in 2000 on a £10 million investment by Steliou, the Greek entrepreneur who also founded easyJet.
Offer lowest price rentals and utilize 100% of the fleet to generate maximum revenue.
Initially, easyCar only rented Mercedes A-class cars. Then expanded its fleet to Toyota, Ford, Renault, and Vauxhall Corsa.
Avis, Europcar, Hertz, Sixt, and small companies
Business travelers (35-55% of market), tourists (45-65% of market)
17 cities in 5 European countries, near bus and train stations.
Lowest prices in the rental car industry
High initial investment
No agent between the customer and the company:
All is booked through the company website or via phone.
Demand based pricing approach to attain maximum utilization
Small fleet and small number of facilities compared to other rental car companies
One car model per location
The process of picking up the car takes 30 minutes and requires many documentation formalities
Clean car policy: €16 fee
Late fee: €120 for 24-h
Phone-booking: €0.95 per min
After 100km per day: €0.12 per km
Low prices can compete with rivals and attract customers.
Rental for one hour and booking for one hour can be used as Taxi etc.
easyMoney credit card can be used for easyCar and easyJet services.
Problems- Legal Challenges:
(Office of Fair Trading) could interfere with its 2004
easyCar has to grant customers 7 days from the time they made a booking and allow cancellations.
As a transportation company, we are exempt of the law above.
In order to make profits, easyCar needs to make sure booked cars will be used.
easyCar policy that is drawing legal criticism:
If a car is overdue, pictures of the customer who rented the car will be posted on the website.
Cost of overdue cars can be up to €5 million.
The first person who easyCar posted on its website returned the 29-day overdue car two days later the picture was posted.
Customers have to come 30 minutes before booking time.
Should have proper documents with them.
Should clean the car.
Should return the car within the prearranged hour.
The vehicle returned should have reserve fuel equal to the initial level.
Currently: Facility locations is a problem on gaining market share (volume of customers on renting a car).
They should have a better maintenance program. That way customers should not have to clean their cars.
Focus more on customer service.
They should also improve they technology by adding gps. That way they can track their cars and stop posting pictures of the customers.
Low price (starting € 5 per day)
Price varies by location and dates of rental and when the booking is made.
Company used low cost media to advertise:
Posters and press in metro systems, bus and train stations.
Free publicity: advertisement on the doors and rear window of the rental cars.
Hired Jennifer Mowat (previously eBay's U.K. Manager) as the new commercial director.
Doubled the marketing budget and began advertising on TV.
Most facilities near bus or train stations, some are near airports
Facilities near airports: Open 24 h
Other facility hours: 7.00 am to 11.00pm
Facility requirements: Minimum staff (1 to 2 people), maximum number of cars (150 cars).
One type-per location rental cars:
Mercedes-Benz A class
Can add hybrid cars to its fleet to help customers save money on gas.
Can offer multiple car models in the same location.
Can implement tracking systems in cars instead of posting customer pictures on website.
Customers can win easyJet and easyCar points if easyMoney card is used.
easyCar.com is a one of the leading car rental companies in Europe. They are different due to the low prices offered, strict policies, and the one car type per location strategy.
On 2002, easyCar's goal was to be worth £250 million when Stelios stepped down as the CEO and was replaced by Richard Laughton.
easyCar idea provides a choice for consumers who pay out of their own pockets and who will not be ripped off for traveling.
No compromises in the hardware
Innovation to reduce costs
Currently easyCar is the first rental company that offers sharing economy with peer-to-peer car rental platform EasyCar Club.
Thank you for your time. Any questions?