Famuss Car Rental - Essay Example

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Famus’s car rental Table of Contents Table of Contents 2 Introduction 4 Brief outline of the business 4 The aims and objective of ‘Famus’s car rental’ 4 The location of operations of Famus’s car rental 5 Definition of trends 5 Definition of Market Research and the academic theory 6 Importance of Market Research 6 Relevancy of market research to the business 7 Appropriate methods for the proposed market research and business plan 7 Mention the types of market research 7 Explain them in details and criticize them as well, then compare them and choose the best method for Famus’s car rental 7 Definition of Market segmentation 8 Importance of market segmentation 8 Methods for proposed market segmentation 8 Discuss the type of segmentation necessary for your business and how it may prove effective 9 Unique selling point 9 Conclusion 10 Recommendation 10 References 11 Introduction Brief outline of the business This essay mainly describes the idea to start-up a new business of an individual entrepreneur with the name; ‘Famus’s car rental’. However, as the segment of car rentals is extremely competitive, so prior entering the market of United Kingdom, it’s necessary to undergo vivid market research. By doing a vigorous market research, the current trends, customer car rental habits and the intensity of rivalry among the existing rivals might be easily analysed. Along with this, market segmentation is also done to determine the target customers among others. Other than this, this essay also presents the unique selling proposition that might easily fascinate the customers towards itself among many other existing rival players in the market. And finally, the essay might also include a conclusion and a recommendation as well, that may enhance the operations and functions of the business in long run. The aims and objective of ‘Famus’s car rental’ The prime objective of Famus’s car rental is to offer value-added services to its customers at a competitive price so as to fulfil their level of satisfaction. This might act optimistically thereby helping, Famus’s car rental to enhance its position and loyalty within the hearts of the customers among others. Along with this, they also desire to present a very relaxing journey in all seasons so as to make it a memorable one for all its customers. This might prove effective for the organization of Famus’s car rental to improve its range of customer bases and its profitability as well. As a result, its demand and image in the market of UK might also get enhanced to a significant extent among many other rival players. The location of operations of Famus’s car rental Famus’s car rental might start up its new business in order to fulfil the demands and needs of the customers of United Kingdom as it is quite less competitive as compared to other markets in the entire globe. Definition of trends The term is defined as the style or fashion or tendency of the customers of a specific region. However, the trends or preferences of the customers do not remain constant, but it keeps on changing at a rapid pace. Therefore, to cope up with the trends and preferences of the target customers, maximum extend of the entrepreneurs or brands desire to introduce varied types of inventive features within their products or services as presented by the theory of personality (McDonald & Hawkins, n.d). Similarly, the entrepreneurs operating in the segment of rented cars always try to offer the facility of vocational tours at a quite competitive cost. This is done to fulfil the desires or interests of the customers of United Kingdom to spend short holiday trips in varied places such as London, Britain, Wales, Netherlands and many others. It is done to attain refreshment from their monotonous working schedules and this enhanced the craze of rented cars in these regions. Thus, such trends of the market of UK might act as a boon for the organizations like Famus’s car rental to enhance its brand image and reputation in the market among others. It might also improve the profit margin and revenues of the organization in the market of UK among others. Apart from this, rented cars and vehicles are also used by numerous professionals (with age-group 25-45 years) so as to reach their destination within the specific time-frame. This is also another noteworthy factor that helped the segment of rented cars and vehicles to improve its popularity and position in the market of UK among others (Wiid & Diggines, 2010, pp. 478-578). Thus, it might be stated that, a business might position itself only if, the trends and style of its target customers are known. Definition of Market Research and the academic theory The term ‘Market Research’ is described as the procedure or an organized effort to gather varied types of information and facts regarding the trends and preferences of the target customers and the target market (Porter, 1986, pp. 371-379). It is regarded as one of the most essential requirement of any business organization, as it helps to predict the future opportunities or the threats. And on that basis the organizational entrepreneur plans or schedules all the future activities or actions so that it might be easily mitigated. Therefore, it might be described as the prime factor or a weapon to evaluate the competitiveness of a specific market prior entering it as described by the attribution theory. According to the theory of attribution, market research is a strategic technique to analyse the taste or preference of the customers towards a specific product. After knowing the opinions of the target customers, the entrepreneurs desire to implement the preferred features within the products so as to enhance the demand and opportunities in future among other rival players. Thus, such a tactic helps to enhance the sustainability of the products or services in the market among others. Importance of Market Research Market research is described as a technique to gather and evaluate varied types of information so as to detect its opportunities and threats. Along with this, market research also helps to analyze the effectiveness of an organization or its product lines in future among other rival players. Relevancy of market research to the business Market research is extremely essential for any business organization as it helps to analyse the profitability and prosperity of the products in the markets among others. It also specifies the buying behaviour of the customers, demographic features and market trend of the existing brands and many more. Therefore, on the basis of these researches, the marketer or entrepreneur implements or introduces the underlining features of the products or services, so that it might gratify the demands of the customers (Xu, 2005, pp. 256-278). Appropriate methods for the proposed market research and business plan In order to analyse the effectiveness of a rented car organization in the market of UK, both primary and secondary research methods need to be used. This is because; primary research data might present the opportunities and threats of the existing rival players of the market and the secondary research might present the qualitative data and facts. On the basis of these facts, the newly start up entrepreneur like Famus’s car rental might evaluate its future profit margins and competitiveness and after analyzing the researched facts and information the entrepreneur might plan its strategies and policies in such a way so that, it might enhance its image and reputation in the market among other rival players. Mention the types of market research Market research is mainly of two types, primary and secondary. Explain them in details and criticize them as well, then compare them and choose the best method for Famus’s car rental Marker research is of two types, primary and secondary research and both are essential for any organization. Although, primary research presents valuable quantitative data still it’s extremely time-consuming and costly. So, maximum extent of the marketer or entrepreneur does not prefer it. On the other hand, secondary research presents qualitative data, that are already present in both online or offline sources. As these information’s are quite less costly, so they are highly preferred by the marketers or entrepreneurs of this age-group (Tidd & Bessant, 2005, pp. 367-378). In order to know the preference and market trends of the individual of the market of UK, the entrepreneur of Famus’s car rental need to utilise both primary and secondary research methods. Only then, the market trends of the customers of UK might get entirely cleared (Porter, 2008, pp. 562-589). Definition of Market segmentation The term market segmentation is described as the procedure to analyse the sub-groups of the customers or segments, from the large homogeneous market. This segment of customers comprises of a common need, desire, characteristic features and preferences as well (Kolb, 2008, pp. 451-478). Importance of market segmentation The market segmentation is a process that helps a business to target its products in front of the accurate customers in an effective way. It is a process of identifying the needs and wants of the specific group of customer and then utilising those insights within products and services so as to meet their needs and desires (Gupta, 2004, pp. 456-469). This might help an organization to enhance its image and reliability in the market among other rival players. Methods for proposed market segmentation There are mainly four types of segmentation methods like geographic, demographic, behavioural and psychographic. Geographic segmentation is a type of segmentation process that is entirely based on location or region of the customer such as urban, rural etc. Demographic segmentation is performed mainly on the basis of age-groups, occupations, socio-economic status of the customers and many others (ESOMAR, 2008, pp. 45-51). Behavioural segmentation is entirely based on the effectiveness or benefits offered by the products or services to its customers. And psychographic segmentation is performed on the basis of the personality, lifestyle and living standard of its target customers (Christensen, 2003, pp. 347-361). Discuss the type of segmentation necessary for your business and how it may prove effective In order to position the organization of Famus’s car rental, behavioural segmentation might be best procedure to target its customers. This is because, by following this method of segmentation, an entrepreneur might present the benefits of using this product or service. By doing so, the organization might generate a substantial position for itself within the minds of the customers. Along with this, the profit margin and revenue of the organization might also be enhanced to a significant extent among others. And its market share might get enhanced thereby amplifying its demand in the market among other existing rivals (Bradley, 2007, pp. 239-256). Unique selling point The unique selling proposition of the organization of Famus’s car rental is to offer specific amount of discounts for the newly wedded couples. This prime reason behind such strategy is to position the organization of ‘Famus’s car rental’ in a differentiated way among other existing rival players. Along with this, the organization of Famus’s car rental also desires to offer specific discounts in festive seasons as well so as to enhance its range of customers and profit margin. Apart from this, it might also improve its sustainability and market image among other rival players of UK (Beall, 2010, pp. 142-156). Conclusion Conclusively, it might be depicted that market research, market segmentation are the most essential tools, used to analyse the trends of a new market. Prior entering a new market, such techniques need to be used in order to enhance the opportunities and mitigate the threats. Recommendation In order to enhance the level of sustainability and position in the market among other rival players, market research is extremely essential. So, each and every organization needs to offer high concentration over these methods as compared to others. Only then, the level of risks might be reduced and the strengths may be enhanced significantly in long run. Along with this, the market share and profit margin of the organization might be enhanced among other contenders. References Beall, A, E. (2010). Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. (2007). Marketing Research: Tools & Techniques. New York: McGraw-Hill. Christensen, C. (2003). The Innovator’s Solution, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press. ESOMAR. (2008). Market Research Handbook. London: Sage. Gupta, S, L. (2004). Marketing Research. New York: McGraw-Hill. Kolb, B. (2008). Marketing Research: A Practical Approach. London: Sage. McDonald, S & Hawkins, D. (No. Date). Enterprise And Entrepreneurial Requirements. New York: McGraw-Hill. Porter, M., E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Springer. Porter, M, E. (1986). Competition in Global Industries. New York: Springer Tidd, J. & Bessant , J. (2005). “Managing Innovation: Integrating Technological, Market and Organizational Change” . Germany: JohnWiley & Sons. Xu, J. (2005). Market Research Handbook: Measurement, Approach and Practice. New York: Springer. Wiid, J. & Diggines, C. (2010). Marketing Research. London: McFarland. Read More