Service Marketing by Meru Cabs
Services Marketing
1) Find information about the industry as a whole (no of players; billings; contribution to GDP; market size; Key trends; market leader/s; key stakeholders (customers, bankers, end-users etc). Industry: Car rental Company: Meru Cabs
* In last one decade one can see how the car rental industry has shifted its base from unorganised sector to organised one. * Car rentals increase 14% in current value terms in 2011 to Rs313 million, with transactions touching 81,000. Car rentals predicted to see 14% constant value C AGR over forecast period to reach Rs614 million in 2016. * The fleet size, in general, did not show much growth due to increasing costs, including fuel prices and intense competition. The growth in the fleet size was driven by expansion of the branded car fleet, which enjoys alliances with hotels and airports, unlike the unorganised category. * With increasing Internet penetration, online car rental sales increased by 33% in 2011, compared with the increase of 14% in overall car rental sales. * Online booking is common among international tourists, with domestic tourists also increasingly switching to online. Since domestic tourists are more familiar with booking offline by phone or in person at a rental office, overall car rental purchases continued to be dominated by offline sales at the end of the review period. * Hertz’s Indian franchisee, Carzonrent India, remained the leading provider of car rental services, with an 18% value share in 2011. * Car rentals have still a long way to go in the context of branding and promotions. The majority of car rentals are still unorganised and therefore advertisements are not of much benefit. A very few branded players have tie-ups with major hotel chains, and these players remain associated with each other for longer terms. However, branded car rentals are growing at a faster rate and are likely to become competitive in the near future. * Unorganised
1) Find information about the industry as a whole (no of players; billings; contribution to GDP; market size; Key trends; market leader/s; key stakeholders (customers, bankers, end-users etc). Industry: Car rental Company: Meru Cabs
* In last one decade one can see how the car rental industry has shifted its base from unorganised sector to organised one. * Car rentals increase 14% in current value terms in 2011 to Rs313 million, with transactions touching 81,000. Car rentals predicted to see 14% constant value C AGR over forecast period to reach Rs614 million in 2016. * The fleet size, in general, did not show much growth due to increasing costs, including fuel prices and intense competition. The growth in the fleet size was driven by expansion of the branded car fleet, which enjoys alliances with hotels and airports, unlike the unorganised category. * With increasing Internet penetration, online car rental sales increased by 33% in 2011, compared with the increase of 14% in overall car rental sales. * Online booking is common among international tourists, with domestic tourists also increasingly switching to online. Since domestic tourists are more familiar with booking offline by phone or in person at a rental office, overall car rental purchases continued to be dominated by offline sales at the end of the review period. * Hertz’s Indian franchisee, Carzonrent India, remained the leading provider of car rental services, with an 18% value share in 2011. * Car rentals have still a long way to go in the context of branding and promotions. The majority of car rentals are still unorganised and therefore advertisements are not of much benefit. A very few branded players have tie-ups with major hotel chains, and these players remain associated with each other for longer terms. However, branded car rentals are growing at a faster rate and are likely to become competitive in the near future. * Unorganised
Bibliography: * Meru Cabs launched in Mumbai with 45 cabs in 2007; expanded to three other cities in 2008 (Delhi, Hyderabad & Bengaluru) * Scaled to a fleet of 5,000+ cabs in three years, across Mumbai (1800), Delhi (1200), Hyderabad (800) and Bengaluru (1200)