CASE MEMO OLYMPIC RENT A CAR

1361 WordsNov 23, 20146 Pages
From : Elena Vignerte To : Russel Lacey MBA – MARKETING Nov. 11 – 2014 CASE MEMO Olympic Rent-A-Car US : Customer Loyalty Battles CASE SUMMARY : Olympic-rent-a-car is one of the US car renting company leader. The company was founded in 1976 by John Uelses, with a franchising model. The initial strategy of the company was to price lower than the main competitors. With a promotion, advertizing and franchizing strategy, the company reached to catch 7% of the market shares in 2012. By starting operating in the major airports, the company reached to extend by acquiring new smaller firms : in 2012 the company counted more than 460 rental locations across the USA and possessed a huge car fleet even if is still below the industry average.…show more content…
OPTIONS AND ALTERNATIVES: To face to the customer loyalty and retention problem, the Olympic company has tried to implement different options. First of all, the company can change it customer loyalty program offer by eliminating blackout days, and offering more discount bonuses and free-rides. Another aspect the company needs to take into consideration is about the company’s positioning. The company needs to take into consideration how customers perceive brand and related services to be sure they won’t go toward competitors offer even if they offer higher prices that Olympic does. Many different alternatives exist to face the customer retention problem. One good alternative would be to use and develop a strong customer relation management strategy. With the information collected from the customer loyalty system, the company needs to develop a customer relation service. To improve the perceived value of the brand, the company should create a very developed customer service with a dedicated customer service number and an easy way to order cars. In the airports and main retail places, the company should develop a specific office/desk dedicated to the premium customers and those who have loyalty cards. So that, the consumers don’t lose time and can enjoy of a best quality service. Another alternative to

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