The Choice Car Rental (CCR) targets to Northern Thailand and plans to get leading role of Northern Thailand car renting service. According to the recent market information the CCR collected, there are eight car rental service providers in Northern Thailand. Most of them, target to the private sectors and individuals.
The CCR provides the service to its clients and applies customer concept strategy with standard quality and service when it serves its customers. As the CCR’s service providing depends on customers’ needs, its inventory system is ‘Just In Time” (JIT) system.
At the moment, the CCR is running its service with 156 cars, but it will rent the customers with any brand car. The company’s product line extends with ‘Executive car, Business car and Truck’. Even it doesn’t have the car the customer wants, they will purchase and rent to the customers in accordance with the demand. It uses JIT system with assistance of Thai-farmer bank’s loan.
The company has targeted to both government and private sectors. Since these organizations prefer to choose rental cars for long term instead of purchasing cars in one's organization.
The CCR offers a variety of (vehicles) features you need for safety and comfort, and also providing first class insurance coverage limited to 10,000,000 bath in order to satisfy customers. In addition, the company supplies after many sale services with standard service center and preventive maintenance by qualified mechanics. These services cover the following features;
- Mobile cars for roadside assistance
- 24-hour call center
- Free replacement car
- Car insurance, compulsory motor insurance and tax renewal are under company response (First class insurance from the leading insurance company)
-Annual vehicle registration renewal service to every rental car
The CCR offers it service on customer concept strategy and tries to fulfill customer needs with the customers’ requirements.
The CCR will make the following benefits for the customers.
Only Monthly rental fee will save customers’ purchasing expense
Unlimited distance of usage
All kinds of rental cars will be monthly checked up or every 5,000 Km
Repair expenses and spare parts changing are under company response
Maintenance service at Choice service center run by the CCR
First class car insurance coverage limited to 10,000,000 bath
Vehicle annual tax is under company response
Car changing in every 3 years for convenience
Car replacement is rent free with the same range or better in case of breakdown or accident
Rental fee cars be 100% deducted as company's expenses
Value Added Tax from the rental fee can be used as purchase tax
Today, the CCR positions as the international car rental service standard and the company has become the preferred choice of both government and private sectors.
Competitive
Although the CCR penetrates to Northern Thailand, it has three main segments, Officialdom, Public Enterprise and Company.
The CCR carries out “Direct sale’ method to deal with the customers. The company has two sale men to distribute its product. They will send the products to the customers with FOB destination system. Indeed, the company applies contribution strategy in distribution. After getting orders from the customers, the company works for the finance to buy the cars that meet with the customers’ needs. The CCR has three sources for the finance.
The company has other SBU, CHOICE old cars selling and it is one source of finance for the CCR.
Other two sources are loan from Thai Farmer bank and its service revenues.
At the present, the CCR has to compete with the powerful competitors having more experience and financial background support. The main competitors are;
Krongthia car rental
Budget car rental
Master car rental
SIAM Lachathani car rental
Thai prestic car rental
The results of environmental scanning
Strengths
Respectable positioning
Ability to work with legitimacy
Effective and swift service team
Weaknesses
Limited capacity of two new financial staff
Limited investment
Inefficient managing market information
Opportunities
Good attitudes on car renting service by the target groups
Good strategic alliances
Having several brand cars in Thailand
Threats
Political and economic uncertainty
Strong competitionsBrand extension of car manufacturers
The above findings is for my marketing exercises. Please do not assume that it is 'distribution'.
With respect
Nyo Min
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