MKT10009

Marketing and the Consumer Experience

Semester 3, 2023

Assignment 2
Individual Report on Brand

Date of submission: 29/10/2023

Name: Nguyen Thu Huyen

Student Number: 104167721

Course: BA-BUS10
Tutor: Tran Thi Bich Hanh

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TABLE OF CONTENTS

PART 1. BRAND SUMMARISING.................................................................. 3

1. Introduction..................................................................................................3
2. SIXT Globally............................................................................................. 3
3. SIXT in Australia.........................................................................................4
4. SIXT Marketing Mix................................................................................... 6
a. Product.................................................................................................... 6
b. Place........................................................................................................6
c. Promotion................................................................................................6
d. Price........................................................................................................ 6
PART 2. ANALYSIS PRODUCT IN THREE LEVELS................................. 7
1. Core/Essence Product.................................................................................. 7
2. Actual Product............................................................................................. 7
3. Augmented Product..................................................................................... 7
PART 3. MICRO AND MACRO ENVIRONMENT.......................................8
1. Macro Environment..................................................................................... 8
2. Micro Environment......................................................................................8
PART 4. PERSONA OF THE IDEAL TARGET CONSUMER SEGMENT
IN AUSTRALIA..................................................................................................9
PART 5. NEED RECOGNITION....................................................................10
References.......................................................................................................... 11

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PART 1. BRAND SUMMARISING

1. Introduction
Passenger car rental and hiring services have transformed the way people meet their transportation needs.
Individuals and corporations may enjoy the ease and flexibility of accessing a car without the
commitment of ownership by renting a choice of automobiles for short-term or long-term periods. Car
rental services provide solutions to fit various interests and budgets, whether for pleasure travel, business
visits, or temporary mobility needs. Therefore, the industry our team has chosen is the passenger car
rental and hiring, and each member will report the performance of different car rental retail brands in
Australia. I was pretty impressed with the SIXT while investigating automobile rental firms, so I decided
to make it the major character of this report. I will discuss the brand's history and performance before
delving into the aspects that drive and stimulate clients during the rental process.

2. SIXT Globally
Martin Sixt launched SIXT in 1912 based in Munich under the name "Martin Sixt Autofahrten" with three
automobiles, laying the groundwork for the company's success story (SIXT, n.d). Hans Sixt, his nephew,
later started the automobile rental firm "Auto SIXT" in 1927. In 1967, SIXT was the first German
corporation to offer a full-service automobile rental program. Erich Sixt, the third generation, has
gradually expanded the firm and established a presence in all major cities around Germany. Sixt AG was
turned into the European firm legal form, today's Sixt SE, in 2013, when he took the firm public. Then the
company began to expand internationally, first to Switzerland. SIXT was the market leader in Germany in
the early 1990s. Until now, Sixt SE has been a well-known global automobile rental and transportation

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service provider. Sixt has a large international presence, with operations in more than 110 countries
spanning Europe, North America, South America, Asia, Australia, and Africa.

The firm provides a wide choice of vehicles for rent, including economy cars, premium models, SUVs,
and vans, with a focus on client happiness and convenience. Sixt's focus to digital innovation has resulted
in user-friendly web platforms and mobile applications that make booking and managing rentals simple
for consumers. Sixt is a favorite alternative for travelers seeking dependable and adaptable mobility
solutions globally, thanks to its large network and reputation for outstanding service.

In 2022, consolidated profits before taxes (EBT) climbed significantly as well, hitting an all-time high of
EUR 550.2 million, an increase of 24.4% year on year and 78.5% compared to the pre-Covid year 2019
(SIXT, 2023). The group ended the year with a net profit after taxes of EUR 385.7 million, a 23.2% rise
(SIXT, 2023). In addition, consolidated revenue increased by a third (+34.3%) over the previous year to
EUR 3.07 billion, surpassing the pre-Covid year 2019 by 22.6% (SIXT, 2023); much higher than the
competitors such as Hertz, or Europcar (Craft, 2022). As a result, SIXT is the world's fastest-growing
automobile rental brand in 2022, with a 118% year-on-year gain in brand value to €1.16 billion (Brand
Finance, 2022).

3. SIXT in Australia
In Australia, SIXT sealed one of the largest franchise agreements in the company's history. In early
December 2021, SIXT began partership with the National Roads & Motorists' Association (NRMA),

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Australia's largest national automobile club and one of the country's leading car rental companies (SIXT,
2021). NRMA previously operated as a Thrifty franchise. Sixt has been operating in the Australian
market with smaller partnerships since 2005, but has recently discontinued each of those ties in exchange
for an exclusive arrangement with NRMA (Auto Rental News, 2021). As a result, SIXT Australia is a
part of the NRMA Group. During the collaboration, the worldwide mobility firm gains a 13 percent
market share on the continent and grows its international network by roughly 160 branches with a rental
fleet of 16,000 cars (SIXT, 2021). SIXT's fleet emphasizes electric cars and runs from over 160 sites
around Australia.

In the Australian market, in 2023, NRMA's market share is only 3% and revenue is only $84.2 million,
lower than competitors such as Hertz or Avis.

In 2024, NRMA's market share is predicted to rise to 10.1%, with revenue rising to $153.7 million.

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4. SIXT Marketing Mix

a. Product
Sixt provides a diverse variety of mobility-related goods and services. Its main product is automobile rental, and it
offers a broad fleet of vehicles to consumers, including economy cars, premium models, SUVs, and vans. Sixt has
expanded its offers beyond vehicle rental to include car sharing, ride-hailing, and subscription-based services,
catering to a variety of consumer demands and preferences.

b. Place
Sixt is present in over 110 countries, including Australia. To enhance consumer convenience, the
corporation strategically locates its services in major cities, airports, and prominent tourist locations.
Sixt's internet and mobile platforms also function as virtual "places" where clients can book and manage
their rentals.

c. Promotion
Sixt implements a variety of promotional methods to raise awareness and attract clients. To reach a large
audience, the firm uses digital marketing channels such as its website, campaigns in each nation, social
media platforms such as Facebook, YouTube, etc., and online advertising. Sixt also works with airlines,
hotels, and travel agents to provide special prices and promotions. The firm also prioritizes customer
service and word-of-mouth marketing, with the goal of providing extraordinary experiences that lead to
good referrals.

d. Price
Sixt uses a pricing system that considers criteria such as vehicle type, rental period, location, and demand.
Sixt's automobile rental prices per day range from around $110 to around $530 high-end models.
Furthermore, Sixt's automobile rental package includes insurance (with a deductible) ranging from around
$30 for the basic protection to around $106 for the all inclusive. The company's goal is to retain the
quality and value of its services while offering reasonable prices. Pricing may vary depending on seasons,
location, and special deals or discounts.

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PART 2. ANALYSIS PRODUCT IN THREE LEVELS

1. Core/Essence Product
At the core level, Sixt offers the service of mobility and transportation. The core product addresses the
fundamental need of customers to rent a vehicle to meet their transportation requirements. Sixt provides
consumers with access to a diverse fleet of cars, allowing them to move from one area to another in
comfort and convenience.

2. Actual Product
At the actual product level, Sixt offers various tangible features and attributes that enhance the rental
experience. This includes variables such as the broad fleet of rental automobiles available from economy
cars (as Fiat, BYD…) to sports and luxury cars (as Maserati, BMW, Mercedes, Jaguar...), which appeal to
a variety of tastes and demands. The real product also includes the car's quality and condition, customer
service, and the simplicity of reserving and getting the chosen vehicle. Furthermore, any additional
features or services provided by Sixt, such as GPS navigation systems, child seats, or supplementary
insurance choices, are included in the real product.

3. Augmented Product
The augmented product level refers to the additional value-added services and benefits that Sixt provides
to differentiate itself from competitors. This contains elements other than the core and real product. Sixt,
for example, may provide 24-hour roadside support, flexible rental terms, reward programs, or
connections with airlines or hotels to provide a flawless travel experience. These enhanced services are
intended to increase client pleasure while also providing increased convenience and peace of mind.

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PART 3. MICRO AND MACRO ENVIRONMENT

1. Macro Environment
One macro-environmental factor that can be affected for SIXT in Australia is political factor. Government
transportation and tourist restrictions, taxation policies, and political stability can all have an influence on
Sixt's activities in the country. Sixt must follow vehicle safety standards, pollution laws, and licensing
requirements in order to operate legally. This is critical to prevent penalties and operational delays.
Taxation policies and incentives can have an impact on pricing and profitability, while political stability
promotes business planning and execution. Furthermore, government measures for infrastructure
development, such as road networks, might impact demand for automobile rental services. Sixt can
change its strategy and operations to fulfill regulatory requirements, mitigate risks, and capitalize on
development prospects to strengthen its position in the Australian market by carefully navigating the
political landscape.

2. Micro Environment
Two micro-environmental factors that significantly impact Sixt in Australia are customers and
competitors. Understanding client behavior and preferences is critical for Sixt to properly adapt its offers.
Customers' decisions are influenced by factors such as societal influences, such as environmental
concerns, and psychological characteristics such as convenience and trust. Additionally, analyzing the
competitive landscape helps Sixt identify opportunities for differentiation and innovation. Pricing, fleet
diversity, and customer service provided by rivals all play an important influence in customers' decisions.
Furthermore, Sixt can capitalize on chances to increase its market position, create excellent customer
experiences, and drive growth in Australia by concentrating on customer wants and expectations while
staying ahead of competition through innovation and using strategic relationships.

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PART 4. PERSONA OF THE IDEAL TARGET CONSUMER
SEGMENT IN AUSTRALIA

Henry

Residence: Sydney, Australia

Age: 28 years old
Education: Graduated from University of Technology Sydney
Occupation: Founder of a technology company
Life cycle stage: Has been founded company for 5 years
Hobby: Update information about cars, watch news
Life target: He wants to buy three or four different automobiles so that he may reserve the entire first
floor for parking. He wants to go on long-distance road trips via various nations throughout the world.
He always strives to fulfill his ambition.
Motivations for using car rental and hiring service: Find a rental car that fulfills your trip demands,
has good mobility, a strong engine, a gorgeous exterior and interior, and a price that is appropriate for the
kind of rental car and his money.
Frustrations: The range of rental automobiles shocked him. However, due to his hectic schedule, he has
not had time to properly examine the car models being hired and decide the car model he desires to rent,
as well as the terms and incentives that come with it.
Criteria for choice amongst competing brands: Sixt's rental car lines are widely advertised.
Customers may select from a wide range of vehicle categories based on their tastes and budget.
Furthermore, there are several ancillary services, including a 24/7 incident support service, which can
assist clients at any time and from any location if a problem arises while using the rental car service.

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PART 5. NEED RECOGNITION
SIXT has a strong global presence in passenger vehicle rental and hiring, which helps SIXT leverage
brand value and attract consumers in the Australian market. Moreover, Sixt is well-known for its
customer-focused approach, affordable pricing, and emphasis on providing high-quality service.
Furthermore, SIXT provides a wide range of automobile types, particularly sports and luxury vehicles,
which are in great demand among clients. Additionally, Sixt Australia also provides a variety of optional
additions, such as GPS navigation systems, kid seats, and additional driver alternatives, to enhance the
rental experience. The company offers rental services at major airports, metropolitan areas, and
well-known tourist attractions around the country, making it easy for clients. SIXT is a brand that is
proven to be the world's leading automobile rental and leasing brand, and it is rapidly growing its brand
position in Australia.

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 References
Auto Rental News. (2021, December 2). Sixt Expands in Australia with Franchise Partnership.

Www.autorentalnews.com. https://www.autorentalnews.com/10157151/sixt-expands-to-australia

Brand Finance. (2022, June 8). SIXT: Fastest-Growing Car Rental Services Brand Since 2017 | Brand

Finance. BrandFinance. https://brandfinance.com/insights/brand-spotlight-sixt-2022

Craft. (2022). Sixt Competitors and Similar Companies. Craft. https://craft.co/sixt/competitors

SIXT. (2021, December 2). SIXT expands to Australia and adds 160 branches to its international

network, including a rental fleet of 16,000 vehicles. SIXT SE.

https://about.sixt.com/en/sixt-expands-to-australia-and-adds-160-branches-to-its-international-network-in

cluding-a-rental-fleet-of-16000-vehicles/#more

SIXT. (2023). SIXT posts record revenue for 2022. SIXT Rent a Car Magazine.

https://www.sixt.com/magazine/news/sixt-record-revenue-2022/

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