Lb5201 Marketing Plan

Subject Name: Marketing Management

Subject Code: LB5202

Assessment Task 3: Marketing Plan

Group student 1: Na YIN
Group student ID 1: 13131934
Group student 2: Jinghui ZHANG
Group student 2: 13129639

Entering a New Market: Case Study Rent-A-Car

Entering a New Market: Case Study Rent-A-Car
Executive Summary
Entering a new market requires proper assessment of factors that influence that particular market. This postulation holds in the fact that every market has different defining factors in term of consumer behavior, consumer desires and needs, government regulations and microeconomic factors such as price. As such, a research-based understanding of a market defining factors is the prerequisite for an incoming company to orient proper and desirable marketing strategies. Proper market assessment encourages collective marketing strategy . For that reason, it is possible to engage a well-rounded marketing strategy one that balances costs and revenue. The incoming report will be advising Enterprise Rent-A-Car Company on the best strategy for entering the Australian market. The report will attempt to prove that
entering given market requires proper planning to avoid excessive costs.

Table of Contents
Executive Summary 3
1. Introduction 6
1.1 Aim 6
1.2 Scope 6
1.3 Company Background 6
2. Current Situation Analysis 7
2.1 Internal Analysis: 7
2.2 External Analysis 7
2.3 Market Analysis 8
3. Swot Analysis 9
4. Segmentation 10
5. Target market 11
6. Positioning 11
7. Objectives 12
8. Marketing strategies 13
8.1 Product 15
8.2 Price 15
8. 3 Promotion 16
8.4 Place 16 8.5 People 17
8.6 Process 18
8.7 Physical Evidence 18
8.8 Action Plan 19
9. Marketing Budget 19
10. Controls and Contingencies 21
11. Conclusion 22
12.0 References 23
13.0 Appendices 25
Appendix 1: Mind Map 25

1. Introduction
1.1 Aim
The chief aim of this marketing plan is to help integrate an appropriate marketing strategy. Marketing plays a pivotal role in determining the success or failure of a firm entering a new market. Accordingly, marketing strategies must be based on a comprehensive understanding of market features and have specific, measurable, attainable, reliable and timely objectives.
1.2 Scope
Successfully establishing Enterprise Rent-A-Car as a successful car rental company
1.3 Company Background
Enterprise Rent-A-Car is UK’s leading rental company. Jack Taylor founded the company, and with time, it has managed to become a leading service provider offering excellent services to its customers. The company is dedicated to a ninety-nine percentage of service delivery by providing top quality programs. The company has been offering periodical rental car services to private and for business use (Dixon et al. 2014). Enterprise has over 370 locations throughout United Kingdom alone. However, the company has been operating other branches in United States, Ireland, Canada, France, Germany and Spain making it a multinational company (Lovelock & Wirtz, 2007). As noted, the company does not have subsidiaries in Australia. For that reason, the incoming report will be outlining a proper marketing plan for the company’s new Australian business to be set in Brisbane. Similar to most companies, Enterprise sole methodology of achieving sustainable growth is adopting an internal growth strategy, commonly referred to as organic growth. Converse to inorganic growth strategies, the company can achieve growth through market development, product development and diversification.
2. Current Situation Analysis
2.1 Internal Analysis
While formulating a marketing plan, it is advisable to examine the company’s overall objectives and strategy, after which situational analysis is conducted. This includes forces that influence the activities, production, finance and human resources (Emery, 2012). Internal analysis is understood appropriately when the company’s operations and factors affecting its operations are identified.
2.2 External Analysis Given the competitive situation of doing business in Australia, it is advisable to respect the external analysis in which the business operates. The external analysis encompasses technological, political, social, legal and economic changes. Essentially, Enterprise will be required to the make sound strategic decisions by gathering information concerning the distribution market. The company is advised to consider the 3Cs: Company, the Customers, and its Competitors. In terms of the Company, Enterprise needs to evaluate its strengths that will help enter and gain presence in a new market (Shakhray, 2009). However, the company’s strength in one region may not necessarily function as such in new markets. Entering a new market, therefore, requires the company to have great degrees of flexibility. In respect to Customers, the ability to score highly in satisfying consumer needs has been credited as the soundest and reliable strategy to cultivate consumer loyalty and gain market dominance. It is of invaluable importance, therefore, that Enterprise embraces a consumer-focused approach in entering the new market. The company must be willing and able to solve the gaps in the current product portfolio. For instance, Enterprise has driven considerable efforts to offering replacement vehicles resulting from mechanical failures, accident or theft. According to Kotler (2002), consumers continue consuming a partly fulfilling product or service for the lack of access to a higher satisfying one. Consumers are always on the look-out for more consumer-specific products and services. Designing products and services in response to specific consumer needs and desires is the gateway to gaining an instant and growing foothold in a new market. Market research must inform product development, service delivery and managerial decisions. In regard to the Competitor’s element, Enterprise needs to establish the competitive strategies used by its opponents to penetrate and gain positioning into the market. In addition, the ability of a new firm to take dominance in any market rests on its ability to establish and maximize on the weaknesses of its opponents. Hence, it is advisable that Enterprise conducts an extensive research on the endowments, strategies and weaknesses of existing firms in the market.
2.3 Market Analysis
In context, enterprise is required to conduct a detailed marketing audit to review marketing effectiveness. As such, the company should focus the trends of the market, its market position, the environmental opportunities, and possible threats. In addition, the company should identify organization’s ability to cope up with demands of Australian market, which is considered different.
The Car Rental Market in Australia suffered immensely from the 2008-09 global financial crisis (GBR), but has continued to recover, though at a relatively slow speed. The market has assumed an annual growth rate of 1.1% over the last five years (2009-14) reaching a revenue of $1.4 billion in 2014. The growth rate has, however, been very vibrant in recent years with 13% and 13.7% in 2013 and 2014 respectively. The drastic growth has significantly increased competition resulting from more vigorous efforts by existing forms to maintain and increase their positions, and from the entry of new players.
The spread of market players has seemed to depict a similar pattern to the distribution of the population. Ideally, producers need to get as close as possible to their target market to ease market research, flexibility, and ease the distribution of products and services. In the Car Rental market, industry participants have a specific reason for getting close to target markets; easing the return and tracking of rental vehicles. Research reveals that over 75% of industry establishments are located in New South Wales, Queensland, and Victoria–Australia’s most populous states. Similarly, Enterprise decision to establish locations in Brisbane should be seconded by demographic figures.
3. Swot Analysis
Arguably, Enterprise Rent-A-Car global entity has more strengths than weaknesses, evidenced by the strong product development. Chiefly, the brand enjoys a strong product development, large market share, and a strong brand identity. These factors are seconded by an excellent customer service, distinct pick-up service, and a strong international market development (Enterprise, 2009). The mother company in UK also provides specific restrictions on certain cars. As part of the opportunities, Enterprise also promotes energy conservation by renting hybrid energy saving cars. A serious threat is the Hertz Car Rental Services since it has a major presence globally, most especially in the Airport. Given the external SWOT analysis, it is advisable to examine Australia SWOT situation. For once, Enterprise’s strength is based on its presence in the Australian market. For weaknesses, the company still lacks a sound organizational framework to manage the business. For opportunities, Enterprise can improvise its hybrid cars in Australia. For threats, Enterprise Australia is being faced with internal challenges as Hertz Car Rental has its presence in Australia
Table 1.0 SWOT Analysis
Strengths
Global presence
Well established brand
Operating in a high-income country
Weaknesses
Local market not well analyzed
Operating only Brisbane metropolitan
Opportunities
International sub-contracting
Availability of hybrid cars
Work opportunities for locals
Threats
Well developed, well trusted local rivals
Foreign rivals with better terms of operation

4. Segmentation This refers to a group of people or organization sharing almost similar characteristics similar product needs (Kotler 2002). Decisively, market segment is the extremes that Enterprise will be required to undertake its operations. The goal of the market segmentation is to aid Enterprise marketers determine the most specific market. Traditionally, Rent-A-Car has been targeting airline travelers, even though urban dwellers still hire Enterprise services. While entering the Brisbane market, Enterprise strategic management are requested to engage market density to determine the number of potential customers within the city parameters. The following are the list of potential cities surrounding Brisbane metropolitan. The list includes the City of Brisbane, Logan City, Redland City, Moreton Bay Region and the Ipswich City.
5. Target Market Given the complexity of the Australian market, it is advisable to adopt the appropriate variables that govern the target market selection, which includes the identification of the appropriate targeting strategy. The segmentation of profiles, evaluation of relevant segments, and selection of target markets must also be considered. It is advisable to defragment the market in terms of age, ethnicity, education, income, race, occupation, gender, family life cycle, religion, and social classes. With market defragmentation, it will be possible to determine which is best market-to-market different products are (Kotler, 2002). Once the targeting has been accomplished, it will be advisable to the select a marketing mix strategy one that concentrates on each specific subgroup. Using the concentrated target market approach, Enterprise Rent-A-Car strategists will understand the aspect of the market.
6. Positioning
Traditionally, Enterprise business model tend to impact on different strategic position and marketing positioning. Sayedi et al. (2014, p. 14) believe that marketing positioning is essentially mutative in the sense that a single product may have multiple value propositions that result in varied marketing positioning strategies. In order to approach the market in a much decisive way, Rent-A-Car strategists have to develop value propositions such as innovation, performance, adoption of unique selling points, design, pricing, convenience and customization. For it to achieve this, the company should propose value propositions, which are easily recognized by customers. Therefore, the strategists should use qualitative approaches in order to position themselves lucratively.
As part of advice, matrix models seem responsive since it positions the products comprehensively. During positioning, it is advisable that Rent-A-Car identifies the direct competitors, determine how the brand can position itself, and understand how competitors should position their brand (Shakhray, 2009). It is also essential to design the brand positioning statement as well as test the efficacy of the brand Rent-A-Car and positioning statement. Besides, it is vital to compare the positioning of the competitors to identify the uniqueness and understand how each competitor should position their brand.
7. Objectives
Ideally, technical marketing objectives examine the market share by launching a number of new products to the central distribution channel. Given that marketing is shifting towards retention of profitable customers and the re-selection of unprofitable customers, it is important that Rent-A-Car place itself in light with the proper Return on Investment ratio (McDonald et al., 2002). The report further advises the movement from abroad to a more specific marketing objective that starts from point statement to the nature of Rent-A-Car business strategy.
The broad company objectives must be translated into key results areas, which are the areas in which success is vital to the firm. For that reason, market penetration and growth rate of sales that amount to key results areas. It is also essential to establish sub-objectives necessary to broaden objectives related to product sales, volume goals as well as the geographic expansion from the main Brisbane city to other cities located near the business entity (Emery, 2012). Thus, it is advisable to integrate comprehensive advertising strategies as will be analyzed in the incoming section.
8. Marketing Strategies
Strategists should be advised that the marketing stratagems should be established at the end of the marketing plan. Lee et al. (2014, p. 192) argued that these strategies are derived from the goals, objectives, analysis and marketing audit developed before creating strategies. In any case, marketing strategies should satisfy the original goals and objectives of the business. Thus, the incoming suggestion can be adopted to ensure that Enterprise improves its overall marketing situation (Keller, 2007).
Rent-A-Car should engage in multiple workshops and business seminars, especially those related to the wider transport of the Brisbane community. Equally important, the enterprise should join the local business organization and networking groups especially those requiring fewer fees. This will be a broader strategy to mention the business to other individuals (Keller, 2007). Additionally, the Enterprise should heavily engage in the business events as a broader way to communicate to the society (Emery, 2012).
Moreover, it will be advisable to create a heavy online presence. This is possible with the development of an official website, where bookings can be made. For informative purposes, it is reliable to create multiple blogs where visitors will interact with the company products (Cravens and Piercy, 2008). Besides, it is also advisable to use social media comprehensively. Social media companies include Facebook Pages, Twitter Accounts, Flicker Accounts, and Instagram among others. While combined, the above social media strategies improve the overall competitiveness of the project.

Figure 2: Designing a marketing strategy

However, as much as the above marketing strategies seem lucrative, it is advisable to encourage the integration of the 7Ps of marketing, commonly referred to as the marketing mix. The marketing mix was initially made up of four elements including price, product, place, and promotion, but was largely criticized for focusing on the producer and not the consumer (Schultz 2001). Increased criticism led to the realization of the 7Ps. All Ps stem from the microeconomic element price function as complements to each other. No single element of the mix can solely achieve the objectives of the organization without considering the role of the others (Doyle, 2004). The marketing mix provides a means for the organization to achieve its mutually agreed objectives (Elkur, 2000).
8.1 Product
There is a need to determine the quality of the product before fully packaging the product especially the packages, quality, and range (Doyle, 2004). Rent-A-Car should have an operational office of the product or brand managers. These offices assume complete responsibility for determining marketing objectives and marketing strategies for each specific product. Most importantly, the product must be designed in response to consumer needs and desires. Market research informs the producer on the gaps in the current product portfolio and thus acts as the most reliable source of product development through creativity and innovation (Roy and Chattopadhyay, 2010). The level of satisfaction consumers derive from the consumption of the product determines the degree of consumer loyalty. As such, Enterprise needs to design and implement constant evaluation models aimed at assessing how consumers rate their products and services.
8.2 Price
Price includes Price level, credit terms, price changes and discounts. The Car Rental market is monopolistic in nature: having many sellers and buyers leading to high degrees of competition. In such a market, the consumer is the price giver. The price consumer is willing to pay is determined by the value the customer attaches to the product or service (Driussi, 2007). In setting competitive prices, the company must ensure that prices seem quite low to consumers upon comparing them with the quality of service (Driussi, 2007). The secret is ensuring that performance outpace consumer’s expectations. Rent-A-Car should consider this strategy positively since it improves the overall competitiveness of the products when it comes to price, as well as revenues. The average price for each period must be established to determine the direction of the pricing trend.
8. 3 Promotion
Predominantly, promotional strategies seek to enhance the overall communication channels (Doyle, 2004). Marketing communication is the dialog between the business and the unit that presents different products to the customers at the pre-selling, selling and post selling stages. Rent-A-Car can adopt personal selling, publicity, advertising, direct marketing as well as interactive marketing and sales promotion. The major objective of promotion is to convince the potential buyer that your product is much better than that offered by the opponent.
Promotion strategies thus need to be tailored with respect to the desires and needs of consumers in the target market (McDonal et al. 2002). The target market of the industry is young people (professionals and students) aged 18-34, both male and female. Among the most prevalent needs of this category of consumers is to have access to a rental car that is cost conscious; they have limited purchasing power. Research also reveals that these people have the desire to travel at least 3 to 4 times annually. Most importantly, the target market determines what promotion strategies to be used. Enterprise should engage online, radio and magazine advertisement to effectively reach the target market. Young people are increasingly using the Internet as their primary source of information. Thus, the company should leverage social media platforms to reach their target market.
8.4 Place
The product promotion zone is the city of Brisbane and its surrounding environs. Reasonably, it will be advisable that marketing strategist adopt schemes, which are responsive to the Australian market. Customers expect to get the product in the most convenient place as possible, in the right time, in the right quantity and quality (Doyle, 2004). Enterprise, therefore, has the role to ensure that the distribution channel does not compromise the quality of the product and must be delivered in time. Channel and logistics management is among the pillars of concentration under this category.
Place has also evolved to refer to how marketers displays the product to potential buyers (McDonald et al., 2002). An example of this is window shopping and online presentations. The customer must not strain to locate or evaluate the product. With the realization and growth of online business, the company must be in a position to shield their customers from the effects of increased cyber terrorism and crime. The safety of the place is also of absolute value to the customer and must be guaranteed.
8.5 People
The staff that has direct contact with the consumer influence their level of satisfaction (Kotler, 2002). In rating the quality of the product, consumers cannot detach the staff from the product. The way staff members interact with consumers can either promote or tarnish brand image. In the present highly diverse market, customers are seeking for organizations that show the value to their unique values and belief systems through their frontline staff. Specifically, consumers feel quite satisfied when served by employees who show good understanding of their way of life ad express respect to his her religion and socio-cultural background. To appropriately address this need, Enterprise needs to ensure that its staff stem from different social-cultural, religious, economic, and political backgrounds. This will improve the firm’s capacity to deal with consumers from different backgrounds.
However, Australia has increasingly become multicultural following increased immigration and globalization.
Accordingly, it is impossible to have every culture represented in the company’s employee list. In this respect, Enterprise needs to design and implement diversity training programs for its employees. This will not only help improve consumer service, but also act as a huge competitive advantage in terms of developing consumer specific products (Konrad, 2006). Shakhray (2009) posits that an employees diversity provide the organization with a widened pool of experience, perspectives, attitudes, skills, and knowledge all of which play an important role in effectively addressing ever-changing consumer needs. Diversity has long been credited as the most reliable source of innovation and creativity within an
organization.
8.6 Process
The process of delivering the service or products to the customer can have huge impacts on his or her satisfaction. Staff helpfulness, access to high-class information, and reduced wait time all contribute to improved consumer satisfaction (McDonal et al., 2002). Organizations are increasingly engaging new technologies to help reduce wait time. For instance, the McDonald has implemented the online ordering and payment system; the customer places and pays for an order online and only appear at the outlet to pick his or her order. This has significantly helped the company reduce wait time. Over the years, Enterprise has been in the frontline of embracing technology to ensure reduced costs, improved efficiency, and improved customer satisfaction. For instance, in 2012, the company launched OnRamp Concierge; a technological advancement helping the company keeps offering services to consumers even after they drive away (Enterprise 2012). The company should design a technology enabling consumers access the company’s products and even make payments.
8.7 Physical Evidence
Firms dealing with service delivery always face high levels of consumer uncertainty about the quality of service because services are intangible. Converse to goods, customers cannot predict the satisfaction he or she can derive from a service before consumption (Cravens & Piercy, 2008). Entering the new market, Enterprise will definitely have to face this challenge. The company can use testimonials and case studies to assure customers that they keep their word. Physical evidence also refers to the environment in which the organizations provide its services. The Australian Car Rental market is increasingly becoming lucrative. Enterprise must thus ensure that its promotional strategies express lucrative lifestyles; as that is what consumer are looking for.
8.8 Action Plan
After the complete marketing plan has been developed, it is advisable to engage a lucrative action plan. An action plan contains the detailed execution of one or more strategy that should include three different factors. It is as well advisable to note each necessary step or task, as well establishing a reliable step at each stage of the marketing evaluation.
9. Marketing Budget
Table 2.0 Budgetary Estimates for the marketing strategy
Progressive Budgetary Estimates (Wages)
Event Coordinators (3)
4000
3200
4500
4500
Marketers (13)
1600
2800
2000
2400
Administrative support staff (5)
3000
3200
1000
2000
Graphic designers (5)
5000
2000
4000
3200
Marketing consultancy (5)
4000
2300
2800
4000
Columnist writers (3)
3000
2800
3500
3000
Social Media Marketers
2500
2800
2500
2500
Services (Non-Personnel)
Duplication and Printing

Marketing materials
3000

Publishing costs
2500

Other documents
800

Rental

Service Rooms
2800
3000
3200
4000
Roadshow services
3200
4200
3200
4000
The Internet and other wages
2800
400
400
400

Utilities Telecommunications

Workshop costs
400
500
400
500
Website and Social Media support
500
200
200
200
Electricity and other inputs
120
120
120
120

Supplies

Customer supplies
2500
2000
2500
1800
Meetings other additional costs
2500
2000
2500
1500
Office Suppliers
3000

4000

Indirect Costs

TOTAL
47220
31520
36820
34,120 10. Controls and Contingencies
There are significant factors that influence the nature of marketing. Since a highly competitive environment arguably leads to a high control of the decision-making process, it is relevant to have a market control plan. Market control is a wider strategy to reach out to the public positively. Therefore, given the situation with Enterprise, it is certain that its later stages of internationalization adapts to the lower level of control due to their limited inside about the target markets.
Chart 1: Waterfall of controls and contingencies

11. Conclusion
As witnessed from the above research, developing a market plan requires proper assessment of the key factors that influence that market. The above report has proposed a reliable marketing strategy, which can be incorporated by Rent-A-Car. Additionally, to prove the relevance of the strategy, the report has developed a budget. Convincingly, the budget responds directly to the market need, which is goals and objective of the marketing strategy. Thus, in summary, entering given market requires proper planning to avoid excessive costs.
12.0 References
Cravens, D.W. & Piercy, N.F. (2008). Strategic marketing. 9th edition. New York: McGraw-Hill
Dixon, M., Karniouchina, E., Rhee, B., Verma, R., & Victorino, L. (2014). The role of coordinated marketing-operations strategy in services: implications for managerial decisions and execution. Journal of Service Management, 275-294.
Doyle, S. (2004). Which part of my marketing spends really works? –Marketing mix modelling may have an answer. Journal of Database Marketing & Customer Strategy Management, 11(4), 379-385
Driussi, A. (2007). Pricing: the lost component of the marketing mix? Professional Marketing, 6-7
Elkur, R. (2000). Customer Satisfaction and the Services Marketing Mix. Journal of Professional Services Marketing, 21(1), 105-115.
Emery, B. (2012). Sustainable Marketing. Harlow: Pearson.
Enterprise Rent-A-Car Company Profile. (2009, December 4). Retrieved from http://web.ebscohost.com/bsi/companyinfo?vid=2&hid=15&sid=8192d287-9e1d-4217-af9d-d779a392818c%40sessionmgr4
Enterprise Rent-A-Car Company: Company profile and SWOT analysis. (2012, Nov 20). M2 Presswire Retrieved from http://search.proquest.com/docview/1171307366?accountid=38235
Keller, K.L. (2007). Strategic brand management. (3rd ed.). Upper Saddle River, New Jersey: Pearson Education.
Konrad, A. M. (2006). Handbook of workplace diversity. London [u.a.: Sage Publ
Kotler, P. (2002). Marketing Places. Thousand Oaks, Calif: Sage Publications.
Lee, H., Chen, T., & Guy, B. (2014). How the country-of-origin image and brand name redeployment strategies affect acquirers’ brand equity after a merger and acquisition. Journal of Global Marketing, 191-206.
Lovelock, C.H. & Wirtz, J. (2007). Services marketing: people, technology, strategy. 6th edition. Upper Saddle River, New Jersey: Pearson Education.
McDonal, F., Burton, F., Walton, P., Dowling, P., & Decieri, H. (2002). International Business. London: Thomson.
Roy, A., & Chattopadhyay, S. P. (2010). Stealth marketing as a strategy. Business Horizons, 53(1), 69—79.
Sayedi, S., Soltani, H., & Keshavarz, M. (2014). The Relationship between Marketing Strategy and Marketing Channels of Communication. International Journal of Academic Research in Business and Social Sciences.
Schultz, D. E. (2001). Marketers: bid farewell to strategy-based on old 4Ps. Marketing News, 35(2), 7.
Shakhray, I. (2009). Managing diversity in the workplace: Seminar paper. Nordersteadt, Germany: Grin Verlag.

13.0 Appendices
Appendix 1: Mind Map