Olympic Rent-a-car

Olympic Rent-a-Car:

1. List the decision alternatives for Andy Kim and Laura Walkins of Olympic Rent-A-Car.

1. Revise the customer loyalty program to replicate Enterprise's model

- Offer highest return on dollars spend instead days rented

- No blackouts, Offer free rental day to customers on any car.be specific

1. Propose a tiered reward-based program
2. Eliminate the loyalty program, no gimmick and low-price guarantee

- Offer price matching to guarantee lowest industry prices

1.  Which decision do you recommend?

Recommendation: Revise the customer loyalty program to replicate Enterprise's model

- Offer highest return on dollars spend instead days rented

- No blackouts, Offer free rental day to customers on 7 days car rental.

1. Provide detailed implementation steps for the decision you recommended.

Olympic should follow. Following strategy/ steps to make de

        Period -1

• Step-1 Revise the Olympic Medalist Reward Program and rename as “Olympic Preferred Program”.

     Reason:

-This program is most profitable and main reason of Olympics’ growth and it has medium level of Risk of losing customers, So better strategy would be revise and improve current program.

- No Blackout policy will help Olympic to attract more customers, if this program has no constraints, the customers will be more loyal and feel rewarded.

-Service and Pricing are very competitive

- Olympic should Offer highest return on dollars spend instead total days customer rent the car.

             Risk-Medium level of risk of losing customers.

             Solution-Improve Advertisement Strategy

             Reward-Provide more value-added services, eg-Bottle of Water

• Step-2 Inform customers about changes via mail/Email.

Period 2

• Step-3 Finalize new advertising

Analyze New advertising plan.

Marketing manager should

- Target social media(Facebook/Instagram) as online booking revenue increased from $90 billion to $119 billion in 2012.

-Demographic-Focus to improve pickup and drop off car service as it offers     highest number of customer, Focus on location and Analysis comparison of rental program. (Olympic-11%, Exibit-3)

-Target small and individual travelers as it offers 41% of Profit (Slide-4)

Period 3

• Step-4 -Distribution manager need to send new advertising material to current/potential customers, They should invest in B2B,media,newspaper and other channels

-Increase customer base by being partner with local/small/mobile rental companies.

- Production manager need to keep focus on minimum amount of car production and make sure they don’t over/under produce to avoid extra expenses and meet demand.

Period 4

• Step-5 Evaluation customer response.

-Identify customers need by evaluation demand per region.

-Offer differentiate service in compare to other companies.

• Step-6 Decide Price, Analyze and maintain Net Income, Stock price and COGS (COGS should low).

     Finance manager should apply strategy-

-To be profitable, matching fleet size to demand is key element, adjust the price as demand fluctuated.

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