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GYPSY

EASYCAR.COM

EASYCAR

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*The case focuses on the history of easycar.com and car rental industry.

*It also highlights the rapid expansion, apparent success and the future strategy of easycar.

*It also focuses on the 5 P’s of marketing mix out of 7 P’s of service marketing (product, place, price, promotion, process)

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7 P’s

Process

Price

Promotion

Place

Product

Public Evidence

People

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Leisure segmentConstitutes 45-65% very price conscious

Business segment Constitutes 35-55%Less price sensitive

CUSTOMER SEGMENTS

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* Easy car outlets

Its outlets are not located in posh area of European cities

Its outlets are near bus train station and some are near airport but on the off side of airport.

Airport located outlet are opened 24 hrs while others working hrs are 7am to 11 pm.

The outlets are min equipped .

At a particular location there are only 1 or2 people working at a time.

* Process

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Customer have to come before booking time

Customer is required to bring some documents

Around ½ hr is consumed in process of telling about companies policies etc.

The vehicle rented have reserve fuel…on returning fuel must be equal to this.

The return of the vehicle is within prearranged 1 hr of time period.

Customer is expected to clean the car & then easycar employee will check it.

*Price

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The Company followed Demand based Pricing and strategy it followed was Synchro-Pricing.

Although it advertised the rent as low as € 5/day.

This amount was applicable to weekdays only othewise the rates are slightly higher.

As the rental date come near the price raises.( to achieve 100% fleet utilization)

The total money which the customer paid is sometimes higher than the rental charges. Eg:- those who go beyond 100km are charged €.12/km. late return fee is € 120 per day.

* Promotion

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Company used low cost occurring media to advertise.

It used posters and press.

Free publicity.

In 2002- $2.30 million.

* Strength

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Company is Financially strong.

The business model which was once used and proved to be successful in airline industry is being used in rental industry.

The Company’s founder is highly competent.

No agent between the customer and the company.

Demand based pricing approach to attain maximum utilization.

High use of latest technological equipments.

* Weakness

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It offer only one kind of car at a location.

The process of picking up the car takes 30 minutes due to low manpower.

Lots of documentation formalities.

Very low advertising strategy.

* Opportunity

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In the industry, there is ripe for consolidation.

Rental for one hour and booking for one hour can be used as Taxi etc.

* Threat

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Legal Challenges.

Competitors.

*Thanks