Essay on Customer relationships managment and technology

930 WordsOct 22, 20134 Pages
CASE: 1 Olympic Rent-a-car U.S.: Customer loyalty battles Company Name: Olympic Car Rental Co. Characters: Laura Walkins(VP-Marketing) , Andy Kim(Manager CRP),Seth Bergman(Senior Financial Analyst),Eva Chan(Southwest regional Manager Sales), Marvin Fleming(OM), Sriny Vajarain,Jorge Martinez & Amy Mckeever( Franichisee operators). Theme of Case: One of the competitor company named “Enterpise Car Rental Co.”-the biggest player in the market has announced an attractive custom loyalty program. This is considered to be a paradigm shift from the traditional rewarding pattern in Car Rental market. Enterprise Car Rental Co. is already reaping the benefits from the program. Olympic Car Rental Company’s top management wants to discuss about this…show more content…
Car rental industry was broadly divided into two:-1. Airport rentals (Where most business & leisure travelers pick up their cars) 2. Local rentals (Business originate from local offices, including car dealership & repair shops.).Business revenue accounted for 80% of revenue on-airport rentals,while leisure was only 20%. With rapid growth of technology & internet savvy society, the emergence of third party consolidators like Expedia, Travelocity and Orbitz play a major role in providing the customers with convenience of booking & price comparisons between different Car-Rental providers. Variable pricing or revenue management, was used extensively in the rental car business to optimize profits. Car rental providers crucial expense item was its fleet of vehicles (operating cost). Performance of Olympic & Other players in Car Rental Industry:- Company’s Model is mostly Franchisee based, with initial marketing strategy being lower price then Hertz(a Competitor) along with capitalizing on the promotional & advertising front. Olympic Co. was able to gain large airport spaces in early 2000s.Co. had also purchase new fuel efficient cars on the demands of their existing customer base.Olympic’s typical car was rented about 232 days per year, which was slightly higher than the industry average of 208 days per year. Olympic Medalist Rewards program (OMRP) had been modified several times in twenty years following Reward programs introduced by its near competitors. They
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