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GYPSY

EASYCAR
EASYCAR.COM

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 Ps of marketing mix out of 7 Ps of service marketing (product, place, price, promotion, process)

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Price Proces s Promotio n

7 Ps
Place

People

Product

Public Evidence

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CUSTOMER SEGMENTS

Business segment
Constitutes 35-55% Less price sensitive

Leisure segment

Constitutes 45-65% very price conscious

66

* 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 .

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

* Process
Customer have to come before booking time Customer is required to bring some documents Around hr is consumed in process of telling about companies policies etc.

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

The return of the vehicle is within prearranged 1 hr of time period. 88

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

*Price
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. 99

* Promotion
Company used low cost occurring media to advertise.

It used posters and press. Free publicity. In 2002- $2.30 million.

1010

* Strength
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 Companys 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.

1111

* Weakness
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.

1212

* Opportunity
In the industry, there is ripe for consolidation. Rental for one hour and booking for one hour can be used as Taxi etc.

1313

* Threat
Legal Challenges.

Competitors.

1414

*Thanks