Dollar Rent-a-Car
Executive Summary
This advertising media plan is designed to re-position Dollar Rent-a-Car to attract college students, young professionals and Senior Travelers. Currently, their focus is on local businesses. This plan includes a situation analysis that covers the current environment of the industry as well as the specifics of the company. This plan also includes budget allocation, media objectives and media strategies. Dollar Rent-a-Car objective is to weight and recommend three different markets, keep the same budget and improve profit margins, the overall goals for this advertising plan are: •
Gain market awareness amongst college students, young professionals and Senior travelers through print ads.
•
Create an interactive experience for college students.
•
Gain market awareness amongst young professionals through radio advertisements.
•
Increase market awareness for senior Travelers through outdoor advertisements in Major West Coast airport locations.
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Situation Analysis Dollar Thrifty Automotive Group (DTAG) is a Fortune 1000 company and has over 1,475 locations worldwide including more than 835 locations in the United States. Market Share The nation’s four biggest car- rental chains generate 83 percent of U.S. car-rental sales, according to a September report from IBIS World, the Santa Monica, California-based industry researcher. Enterprise has a 40 percent share, followed by Hertz with 20 percent and Avis with 17 percent. Dollar Thrifty accounted for 5.7 percent of the industry’s sales, IBIS World researcher. The company expects rental revenue to increase by approximately 2 percent as compared to the third quarter of 2010. It is also important to emphasize that Dollar Thrifty is well positioned for these uncertain times, as rental car customers become even more value-focused. Recent Trends One reason that car-rental experiences have been inconsistent is the industry itself, which has been consolidating: Avis and Budget joined forces in 2002, and Enterprise snapped up National and Alamo in 2007, leaving fewer big players in the U.S. market. At the same time, drivers are facing rising taxes and fees, such as the local and state surcharges applied to airport rentals—which can increase the cost of an average rental by as much as 25 percent. And anyone who’s returned a car with less than a full tank (and without a prepaid plan) knows the result: exorbitant fuel charges. On the other hand, advancements in technology have helped to increase the trend of online bookings, online check-ins and conveniences for the client and supplier. The image of the industry has also incorporated ‘Green Evolution’ along with the rest of the automobile industry.
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Target Markets
Car rental companies mostly specialize in loaning vehicles to customers who need a temporary vehicle. Reasons include accidents, theft, mechanical repair, and special occasions such as leisure and business trips. Most companies’ initial focus is to provide rental cars to neighborhood consumers. In the mid 1990s, they began to expand to airport locations
SWOT Strengths • Profitable revenue growth • Vehicle market and efficient, low-cost operating structure The company is reporting the highest quarterly profit in its history, for the third quarter that ended Sept. 30 2011 Weaknesses • Locations • Fleet. (Cars in service) Consumers and corporate customers have continued to express interest in hybrid cars…some companies (DTAG included) might not afford to purchase any new vehicles in this bad economy, letting most hybrid vehicles to Enterprise and Hertz.
Opportunities • Bid from Hertz for Dollar Thrifty • Brand Choice; 51 percent of customers say they do not have a preferred brand. • Deals Online • Hybrids One of the most positive changes is coming from the rental-car companies themselves: they’re offering more hybrid vehicles, which not only minimize your carbon footprint but also save you money on fuel. A gas/electric vehicle saves as much as a day’s worth of rental fees on a weeklong trip. Threats: • Independent Companies • Rent by hour services Increased competition from independent companies like rent-by-the-hour Zipcar, and a larger number of deal-finding tools online Research: Closing the Customer/Associate Perception Gap
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Media Objectives •
Gain market awareness amongst college students, young professionals and Senior travelers through print ads.
•
Create an interactive experience for college students.
•
Gain market awareness amongst young professionals through radio advertisements.
•
Increase market awareness for senior Travelers through outdoor advertisements in Major West Coast airport locations.
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Media Strategies
Dollar Rent-a-Car has 835 locations in the United States and earned revenue of $1,540* (2010 U.S. Revenue est. In millions) . The basic breakdown of the budget will be:
路 Objective 1: $1.864,839.76 路 Objective 2: $500, 000 路 Objective 3: $748,800
MEDIA STRATEGIES
路 Objective 4: $786,000 TOTAL $3,899,639.76
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Media Plan The media plan proposed for Dollar Rent-a-Car will consist of print advertisements, radio advertisements, Internet advertisements, and outdoor advertisements during the second and third quarter (April-September) The specifics are stated below:
Print Ads It will involve ads in Men’s Health, Sports Illustrated, and LA Times. The heaviest advertising will occur during summer. (June – August)
Interactive Internet ads in kayak.com, evrental.com, sidestep.com. will occur for six months (Apr-Sept) Internet app available on app store and Android Market.
Broadcast Radio advertisements only. Advertisements will run on radio stations LBLR 87.5 FM, KAMP 97.1 FM, and KIIS102.7 FM. for a 60 second commercial. Between (April-September)
Out-of-home Advertisements will run on airports and taxis
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Objective 1: Print ads It will involve ads in Men’s Health, Sports Illustrated, and LA Times. The heaviest advertising will occur during summer. (June – August) The Men’s Health advertisement will last for five weeks and cost $241,975 for 4C page Listings $155,960 per issue. Total $725,935 The Sports Illustrated advertisement will last ten weeks and will cost $155,960 for a 4C page. Listings $155,960 per week. Estimated reach per month is 70% with 2x Frequency Every other week, two weeks a month (6 weeks total) Total $935,760 The LA Times advertisement Total cost for 1/2 page (or 63 column inches) in full-color in the Sunday Times is calculated at $179.14 x 63 = $11,285.82 Listings $11,285.82 per week. Estimated reach per month is 70% with 3x Frequency Last three weeks of the month, three weeks a month (18 weeks total) Total $203,144.76 TOTAL $1.864,839.76 Objective 2: interactive Will be Internet advertisements, Advertisements will run on evrental.com, kayak.com, and sidestep.com. The ads will appear online with the use of the “ad sense referral button” and the “vertical banner format. Dollar app, available for Apple Store and Android Market. QR codes will be included in Print ads and out-of-home to create an interactive experience with smart phone users. TOTAL $250, 000 for 6 months APP $ 250,000 Objective 3: Broadcast Media Radio advertisements only. Advertisements will run on radio stations LBLR 87.5 FM, KAMP 97.1 FM, and KIIS102.7 FM. for a 60 second commercial. 6 flights, 18 weeks. (April-September) Estimated reach per month is 50% with 4x Frequency (The CPP is $78) LBLR 87.5 FM TOTAL $280,800 (The CPP is $70) KAMP 97.1 FM T OTAL $252,000 (The CPP is $60) KIIS102.7 FM TOTAL $216,000 TOTAL $748,800 Objective 4: Out-of-home Will be outdoor advertisement strictly. Advertisements will run on airports, taxis, and buses. Airports LAX OAK SFO SMF May-Aug Airport Diorama (Backlit) 62" w by 43" h : $4000/unit/month. 4000 x 4 months x 4 airports= TOTAL $64,000 Airport Banner: $5000 /unit/month 5000 x 4 months x 4 airports=TOTAL $80,000 Taxis two-sided Led tops for $160,5000 for four weeks for 150 units. 160,500 x 16 weeks = Total $642,000 TOTAL=786,000 8
Media Plan
Alan Trejo Comms 332 Advertising and Media Planning