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MOS Case analysis

´EasyCar"

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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)

5. Divya Subramanian (Roll No. 27)

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Introduction

y EasyCar - member of the easyGroup family of companies.

Founded by the flamboyant Greek entrepreneur Stelios.

easyGroup included easyjet, easymoney and other companies.

y Its Competitors: Avis, Europcar and Hertz and other regionalcompanies.

y Its market: Constituted two broad segments ±a businesssegment 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/competitivedifferentiation strategy?

EasyCar·s Strategy Competitor·s Strategy1. EasyCar could be hired at half of the price of its

competitor and followed Price Differentiation model

1. Competitor's rental hiring price was much more

than EasyCar.

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.

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. 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.

3. The competitors booking were made more byintermediates 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. EasyCar was able to achieve a fleet utilization rate

in excess of 90 percent.

4. It was much higher than rental car companies.

5. EasyCar Target market was Tourist/leisure segment

who where price sensitive.

5. Competitor target market was both Business as well

as tourist segment.

6. EasyCar tried to expand in inter regional countries. 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.

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What is the value proposition offered to customers ?

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Low price ± A Rental car at 9Eurosmuch less than its competitors .

y Ease of Availability ± Located nearbus, train stations & some airports.

y Coverage - Facility in total of 5countries and 17 cities

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Advance booking± Attractive Lowrates for advance booking

y Ease of Cancelation ± Full refundwithin a 7 day cooling ±off period incase of cancellation.

y Metropolitan Mantra - In congestedEuropean cities, Preference to rent aeasyCar at low rates than buying a newcar.

y Guide Maps -Maps of the intermediatearea around the rental site that showedthe location and hours of nearby gasstation provided along with car.

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Analysis of EasyCar¶s Positioning strategies using theexpanded marketing mix (7 Ps)

y Target Audience - Tourist market constituting 45%-65% of total car rental markettargeted.

y Target Cities ± Operated in places where easyjet was doing good business. Thusenjoying the benefit of the brand name of EasyGroup.

y Competitive strategy ±provided stiff competition to its competitors while aiming to bea substitute for local taxi, buses, train and even car ownership.

y Availability- Located near bus, train station & some airport with 24 hrs facility.

y Low maintenance Costs ± Reducing cost of maintenance by having only one type of car i.e. Mercedes A class

y Supply Chain ± 95% Online Booking thereby having no intermediaries which saved costas well as helped in effective communication.

y Low Infrastructure Cost ± Less operating expenditure by cheap rental spaces, vansequipped with requisite computer & telephone equipment.

y Promotional

Strategies ±

T

hrough press release and posters in Metro, bus & trains.Display of phone number & website address on its door and rear window of its entirefleet of vehicles.

y Support to Sibling company ± payment only through easy group credit card. (its ownsubsidiary company).

y Hidden Costs to Customer -Indirect payments like filling up gas, keeping the carclean, insurance etc which had to be borne by the customer.

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Problems

Lack of clear communication with customers

Less attention to Business Segment of customers

Customer Dissatisfaction

R ecommendations

Transparent Communication ± Many EasyCar customer felt that they werecheated upon the rates. There were lots of hidden charges which was not mentionedclearly in the website. So there should be a bit more transparency .

More attention to business sector ± EasyCar should also focus on BusinessSector which can generate more wealth to the company.

Customer Satisfaction - Apart from being a low cost Rental car it need to focus oncustomer satisfaction like booking, cancelation, payment done apart from easymoney 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 thechanges resulted in overall lower price for the rental, no refund was provided for thedifference.

Challenges EasyCar will face in achieving its rapidexpansion and R ecommendations

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Thank you

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