MOS Case analysis

“EasyCar"

Presented by Group 10:

1. Shruti Mohta (Roll No. 89)

2. Gaurav Mittal (Roll No. 29)
3. Sarabjit Singh (Roll No. 83)
4. Nitin Bhardwaj (Roll No. 53)
1 5. Divya Subramanian (Roll No. 27)
 Introduction

 EasyCar - member of the easyGroup family of companies.

 Founded by the flamboyant Greek entrepreneur Stelios.
 easyGroup included easyjet, easymoney and other companies.

 Its Competitors: Avis, Europcar and Hertz and other regional

companies.

 Its market: Constituted two broad segments –a business

segment and a tourist/leisure segment.
 The tourist segment is more price conscious
 The business segment is more keen on service ,quality, convenience
, flexibility and less price conscious.

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 Stelios with his EasyCar

EasyCar.com
website

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 What is EasyCar’s positioning/competitive
differentiation strategy?
EasyCar’s Strategy
1. EasyCar could be hired at half of the price of its
competitor and followed Price Differentiation model
2. EasyCar rented only a single vehicle type at each
location it operated(Mercedes –A). In this was it saved
its money by not keeping variety. Although in later
year i.e. Jan 2003 easyCar car rented six type of car.
3. EasyCar did not work with agents-more than 95%
of its booking were made through the company’s
website/phone reservation system. By this approach it
not only saved its money but also stopped confusion
between easyCar and the customer.
4. EasyCar was able to achieve a fleet utilization rate
in excess of 90 percent.
5. EasyCar Target market was Tourist/leisure segment
who where price sensitive.
6. EasyCar tried to expand in inter regional countries.
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Competitor’s Strategy
1. Competitor's rental hiring price was much more
than EasyCar.
2. Competitors rented a wide variety of vehicle type
which increased their cost of not only keeping them
but also maintenance charges. Apart from that larger
garage area is also required.
3. The competitors booking were made more by
intermediates and their own website accounted for less
than 10% of their total booking. It increased cost as
well dependency over intermediates to bring in
business.
4. It was much higher than rental car companies.
5. Competitor target market was both Business as well
as tourist segment.
6. The international players had a strong position
across most major European market. There were few
companies which where national or regional players
who performed good I home market and moderate in
neighboring market.
 What is the value proposition offered to customers ?

 Low price – A Rental car at 9 Euros

much less than its competitors .
 Ease of Availability – Located near
bus, train stations & some airports.
 Coverage - Facility in total of 5
countries and 17 cities
 Advance booking– Attractive Low rates
for advance booking
 Ease of Cancelation – Full refund
within a 7 day cooling –off period in case
of cancellation.
 Metropolitan Mantra - In congested
European cities, Preference to rent a
easyCar at low rates than buying a new
car.
 Guide Maps -Maps of the intermediate
area around the rental site that showed
the location and hours of nearby gas
station provided along with car.
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 Analysis of EasyCar’s Positioning strategies using the expanded marketing mix (7 Ps)

 Target Audience - Tourist market constituting 45%-65% of total car rental market
targeted.
 Target Cities – Operated in places where easyjet was doing good business. Thus
enjoying the benefit of the brand name of EasyGroup.
 Competitive strategy –provided stiff competition to its competitors while aiming to be
a substitute for local taxi, buses, train and even car ownership.
 Availability- Located near bus, train station & some airport with 24 hrs facility.
 Low maintenance Costs – Reducing cost of maintenance by having only one type of
car i.e. Mercedes A class
 Supply Chain – 95% Online Booking thereby having no intermediaries which saved
cost as well as helped in effective communication.
 Low Infrastructure Cost – Less operating expenditure by cheap rental spaces, vans
equipped with requisite computer & telephone equipment.
 Promotional Strategies –Through press release and posters in Metro, bus & trains.
Display of phone number & website address on its door and rear window of its entire
fleet of vehicles.
 Support to Sibling company – payment only through easy group credit card. (its own
subsidiary company).
 Hidden Costs to Customer -Indirect payments like filling up gas, keeping the car
clean, insurance etc which had to be borne by the customer.
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 Challenges EasyCar will face in achieving its rapid
expansion and Recommendations

Problems

 Lack of clear communication with customers

 Less attention to Business Segment of customers
 Customer Dissatisfaction

Recommendations

 Transparent Communication – Many EasyCar customer felt that they were cheated
upon the rates. There were lots of hidden charges which was not mentioned clearly in
the website. So there should be a bit more transparency .
 More attention to business sector – EasyCar should also focus on Business Sector
which can generate more wealth to the company.
 Customer Satisfaction - Apart from being a low cost Rental car it need to focus on
customer satisfaction like booking, cancelation, payment done apart from easy money
credit card are charged five euro extra. Customer sometimes needed to wait in
queue for 30 min. Sometimes when the changes were made in the booking .if the
changes resulted in overall lower price for the rental, no refund was provided for the
difference.

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 Thank you