Marketing and product strategies for growth

Introduction to Enterprise Rent-A-Car Founded in 1957 in USA with 7 cars Now with 7,000 offices in 5 countries and 68,000 employees Annual revenues over $14bn Still privately owned by family A big company but with small business feel Branches decentralised so local managers can respond to local needs Company focuses on the customer

Setting marketing objectives Marketing objectives include: Increasing market share Growing sales/turnover Enhancing the strength of the brand Creating loyal customers Managing costs effectively Increasing profitability

Growth Organic growth Inorganic growth Benefits of growth Expansion of products or markets May take time but lower risk Inorganic growth Acquiring/merging with another business Quicker but higher risk option Benefits of growth Reduces costs through economies of scale Improved buying power The ability to recruit more specialists to improve decision making

Marketing strategies for growth Market development – selling existing products/ services into new markets Diversification - new products into new markets at the same time - the highest risk strategy Ansoff’s Matrix helps to analyse marketing strategy options Market penetration - selling more of existing products into existing markets Product development - developing new products or services for existing markets

Values inform strategies Strategies reflect values: Entrepreneurial spirit Focus on customers Respond to global issues, e.g. energy efficiency Services designed to meet specific market requirements

Market development Enterprise growth through: Expansion within home country (USA) Further expansion into new markets Canada, UK, Germany, Ireland Opening on-airport branches Gives easier access to Enterprise services for business and leisure travellers

Product development New or extensions to product include: Pick-up service – collects customers and takes to the car Flex-E-Rent – long term vehicle rental for businesses Business Rental programme – bespoke service and special pricing for businesses We-Car – membership car-sharing scheme offering hybrid or fuel-efficient vehicles at hourly rate

Diversification Highest risk strategy May require new skills/equipment and investment Provides opportunity to move into new areas of business and spread risk Enables response to economic uncertainty Enterprise diversification includes: Sales of used cars – relevant to core expertise Keefe Coffee Company – outside expertise but to offset falling car sales Luggage/travel goods – links to concept of travel Packaged goods – early failure as outside core experience