Problems Facing Enterprise Rent-A-Car

Problems Facing Enterprise Rent-A-CarERAC over vision and requirementCompany basisEnterprise Rent-a- car or Enterprise Car Club is a car renting follow that establish throughout 19 cities of UK. The attach tos main(a) customers ar slew that great dealt afford a car save indispensableness to traveling or current dont need one or families that sometimes require a second car (Enterprise self-drive, 2016). The company has a fleet of to a greater extent than 960 vehicles in UK completely which parking at designated utter cross elbow rooms the cities. The main benefit which customers receive is that they dont contribute to worry more or less(prenominal) the cost of ownership of a car. All they surrender to pay for is a subscription fee when joining the club and small fee per charge.RequirementThe company is wishing to expand their operation to a stark naked city of Vietnam that creation said, there be some requirements which moldiness be satisfied. First is slightly c ustomers, the company require all drivers to have a validated effort license of 1 twelvemonth or more. Individual customers that travel less than 4000 km a year is best benefited from the service. Beca wont the renting procedures argon make through smartphones app, so masses with well-known(prenominal)ity with smart devices are preferred. Second is well-nigh citys prospects, ERAC is a company that let people rent and drive cars to travel around so the city of their inhabiting must(prenominal) be a full-grown city with infrastructure supporting car transportation because Vietnamese have non get used to car transportation, they are familiar with wheel more than cars. Also, there must be spaces for parking bays of the fleet of vehicles and they must be accessed with ease.metropolis dispel and marketing planCity pickIn Vietnam, according to the General Statistics Office, there are only 2 cities that have more than 7 gazillion people which are Ha Noi (7.2 million) and Ho qi Min h City (8.14 million) and are classified as supernumerary grade urban area with developing economics. Only these two cities skunk satisfied the large cities demand of ERAC, the rests are not enough. But only one city pick up is allowed, so more expand are needed.The two cities are both qualified as modified grade cities designated by the government but the economics and other f proceedors are different. This part of the essay volition attempt to differentiate the two cities and get out deliver the choice of city according to elements that are most desirable for car renting industry which ERAC is operating in.To begin with, the growth cannonball along in 2016 using GRDP of Ho Chi Minh city is 476.988 zillion VND and Ha Noi is 140.005 billion VND according the GSO. That is, Ho Chi Minh Citys economics is growing ofttimes faster than the capital in 2016 which leads to a higher living bill of the population in Ho Chi Minh City.Next is slightly urban infrastructure which supp ort inner city transportation, in Ho Chi Minh City, according to an official report, the officials has focused the investment into infrastructure development 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 generally for citys parks, entertainment centers and public accommodations. Again, Ho Chi Minh City is being true break off in term of infrastructure.Another matter relating to car aspiration 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, amount daily freshlyly 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 all day which show that the consumption rate of both o f the cities is in truth high. approximately the number of tourists in and out of the city, both cities witnessed a good year in tourism industry. In 2016, Ho Chi Minh City welcomed more than 5.2 million impertinent travelers to the city. Un manage 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 nemesis 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 force car for hire, Thanh Buoi transportation, Uber or arrogate can be major competitors but their business 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 ne w 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 following(a) destination for expansion. merchandise planAdvertising methodsDigital t dressicsPPC stipend Per Click publicizing 3.000Search engines such(prenominal) as Google or rube Search play a vital role in new-fashioned internet surfing activity. Whatever we need to find on the lucre can almost be found by using inquisition 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 way to deliver the companys centres to young, neo customers. A funny, eye-catching, mean ingful physical composition of advertisement can go viral on the internet through social media because people will uphold 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 supererogatory offer, a discount or an exclusive service. That will fortify their belief in the firm that the company also cover about the current customers as much as finding new customers. Even they will introduce the companys services to their friends or relatives just because of the special offer for current users.Youtube moving-picture shows 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 television that take away the right target customers, they will remember the message delivered in that video and the company will have a better chance to run potential customers to become real users. The company also needs to hold about a short ads at the start of other video on Youtube.Total budget needed 23.000Physical tacticsPosters and billboards 10.000Posters are usually the avatar, the profile picture of the enterprise. They deliver a brief message of the companys core values and products/services. A good broadside 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. erstwhile(prenominal) these sign can share the same function with the poster. Vehicle sick 2.000Vehicle livery is an obvious 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 unavoidableness a car like that.Total budget needed 13.000 towering total 36.000Big ideaAccording to a columnist of Marketing Land Peter Minnium, an effective big idea in ad needs 3 elementsPiercing insights Owning a car is a gratifying feeling of civic life and is one of the biggest purchases for most people. However, this is not an weak decision for some people since the cost of keeping a car isnt low. But the need of a car in modern culture is undeniable 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 jus t take out your phone and click the thrust 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 stay 14.000, we can communicate this big idea through means of advertisement 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 quite new to Vietnam, it will be a new experience for the people and perchance 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. Online. 7 January 2017. unattached from http//marketingland.com/whats-big-idea-3-fundamentals-successful-digital-creative-153747Vccorpvn. 2016. Dantricomvn. Online. 5 January 2017. Available from htt p//dantri.com.vn/o-to-xe-may/tieu-thu-xe-o-to-tai-viet-nam-dat-muc-ky-luc-20160527143626186.htmThanhnien news. 2017. Thanhnienvn. Online. 5 January 2017. Available from http//thanhnien.vn/doi-song/kho-nhu-ket-xe-o-tphcm-748106.htmlXuan, V. 2016. Infonetvn. Online. 6 January 2017. Available from http//infonet.vn/moi-ngay-ha-noi-co-them-gan-1000-o-to-xe-may-moi-ra-duong-post188099.infoHa noi gso. 2016. Thongkehanoi. Online. 4 January 2017. Available from http//thongkehanoi.gov.vn/uploads/files/source/Nm 2016/Thang 6 nam 2016.pdfTitc. 2016. Tng cc Du lch Vit Nam. Online. 7 January 2017. Available from http//vietnamtourism.gov.vn/index.php/items/22261Vov. 2016. VOV I TING NI VIT NAM. Online. 6 January 2017. Available from http//vov.vn/du-lich/hon-11-trieu-luot-du-khach-den-ha-noi-trong-6-thang-dau-nam-528442.vovHochiminhcity gso. 2016. ThongKeHochiminhcity. Online. 7 January 2017. Available from http//www.hochiminhcity.gov.vn/thongtinthanhpho/Lists/ThongTinKinhTeXaHoi/Attachments/429/B CTH_T6-FINAL-2016.pdf