RV Rental and Consignment - Case Study Example

RV rental and consignment Marketing Plan Mission On the Road Again RV Rental & Consignment is an RV rental company that primarily deals with the classic Class C models. Our mission is to provide our customers with unique services that will give us an advantage over all our competitors by offering customers with affordable and classic RVs through which they can enjoy the outdoors. Vision Our vision is to provide all our customers with a unique experience that will allow them to enjoy nature and the outdoors. Our focus is on providing high quality services and affordable Class C RV models for all of our clients. Our company will do this by providing the customers with smaller and less luxurious RVs that are unique, comfortable, and versatile enough to withstand the obvious challenges that can be encountered while out on a trip. What sets our product apart from the rest of the RV rental companies is our small sized RV models that require less parking space, hence, providing our customers with easy access to most parks and camping sites. On the Road Again RV Rental & Consignment offers smaller and less luxurious RV models that are safe, steady and contain all the necessary amenities to make our customers achieve a once a in lifetime experience. Our marketing challenge is to attract repeat business for local and out of state weekend trips as well as those seeking to cross the state of Texas on longer multi-weeks trips (Chernev, 2007). We are set to achieve this by taking advantage of a multi-prolonged approach that involves the use of search engines, email marketing, and social media strategies to gain an increased market share. Goals and Objectives On the Road Again RV Rental & Consignments is a small company whose primary objective is to provide its customers with the best service there is in RV rentals through the provision of stable, classic and affordable RVs. The capital that the company will obtain will be used in promoting its small business focus to cover its operational costs and ensure that it appeals to its target market (Amato& Amato, 2012). For this company to achieve its full potential, its five member investors will make an initial investment of $60,000 each that will go towards the purchase of six Class C RV models. The investors will also make an additional $100,000 investment to capitalize on the company’s operations and fund its startup expenses. Daily rentals will be $157 during the week and $200 per day over weekends with expected 75% weekly rentals and 25% weekend rentals that will yield year 1revenue at $232,801 as combined with consignment sales. The consignment branch expects 10% sales commission to be $12,000 at year 1 and to double by year 4 as targeted advertising strategies are improved. Additionally, the funding for the company’s initial project will be used for its initial marketing projects aimed at appeasing the retirees and families with children that love camping and outdoor life. To do this, the company needs to set aside enough funds for marketing and promotional activities (Amato& Amato, 2012). Marketing strategies to achieve goals: Financial goals 1. Company’s five founders to each make an investment of $60,000 each towards the purchase of the RVs and a further $100,000 to capitalize on company’s operations and fund its startup expenses. 2. Generate over 75% in revenue by the end of the first year through vigorous marketing and promotional activities. 3. Increase the company’s sales by up to 82% by the second year. To increase the consignment sales by 10% within the first year, we will attract local RV owners to list their sales with our company instead of trading in a new one. Nonfinancial goals 1. Introduce unique services to the RV rental marketplace. For instance, our Class C RVs have comfortable and spacious interiors with multiple sleeping areas that can accommodate up to nine people at a time. 2. Take over the Houston market and expand into further territories through the provision of better customer services such as twenty-hour airport pickups and drop offs. 3. Develop a strong relationship with its customers through the provision of discounts for our recurrent customers. On the Road Again RV Rental & Consignment seeks to provide its customers with a Class C model of RV vehicles that will ensure all our clients attain the outmost sense of adventure during their trips. Currently, most of the RV rental companies within Houston provide their customers with high-end luxury RVs that are expensive and yet do not provide the customers as they have more restrictions on campgrounds and parks, which limits the locations that renters can visit (Houston Convention & Visitors Bureau, 2014). Our company aims to ensure that all our clients get the ultimate outdoor experience through the provision of affordable, classic, and sturdy RV vehicles that contain all the tools and necessities to make their trips adventurous, enjoyable and once-a-lifetime experience. This will be done through vigorous marketing and advertising in which these qualities of our products and services will be used as the highlights for attracting clients. The Marketing Mix Products On the Road Again RV Rental & Consignment Company targets the retirees and families with young children that enjoy outdoor activities. The company seeks to provide affordable and yet classy RV vehicles that have all the right facilities, tools and necessities that will make the adventurous outdoor life enjoyable and memorable for a long time to come. To achieve this, the company will use its six low frills Class C RV vehicles for rentals to its customers. These are the classic RV vehicles that have been use by American outdoor travelers for years, and which are in excellent condition to deal with unpredictable outdoors environment (Houston Convention & Visitors Bureau, 2014). Our Class C RVs are designed to deliver unmatched style, space and function that are ideal for all our clients. Our RVs are designed in manner that concentrates and capitalizes on sleeping, living and storage space to ensure that they fit with our customers’ lifestyle. Our clients will not be expected to pay any security deposit will for the RV rentals. On the Road Again RV Rental & Consignment Company, offer unique products at affordable rate that is not offered by the underlying competitors within the present market. The classy RV vehicles offer by the company mainly designed to offer unmatched style, and space to the clients. Prospects RV owners offer electronics such as computer access, TV/DVD players, general operating cost and warranties at a relatively lower cost of the RV. Moreover, the interior space of products and corresponding workmanship of RV is unique from the prevailing market competitors within the market. In addition to the RV rentals, the company will also engage in the sale of the newer used models to its customers. The company is also set to provide its out-of-town clients with a twenty-four hour pick up and drop off at the airport. Price The company’s objective is to provide its customers with an affordable RV rental and sales services that will ensure that they get the maximum returns for their money (Luther, 2011). To do this, the company is set to provide competitive prices for its tour and travel products including a twenty percent off for its recurrent customers and travel packages for families with two or more children. There exist numerous big RV sale and rental establishment within the whole United States, which mainly operate as chains. These multiple chains are located within numerous States. Several of the RV places within the Houston area depicts convenience of their location to corresponding major highways and airports thus offering lower cost because of prevailing lower overhead related within the location off the beaten track. Promotion As part of its promotional strategy, the company will offer its clients will a no mileage limit that is aimed at encouraging the customers to travel for longer distances over an extended period. Additionally, the company will provide its customers with maps whose primary purpose is to act as a guide to both out of town and Houston residents seeking to travel over the State of Texas. Trade shows offer excellent way for a business to promote a product and the same is the case for the sale and rental of RVs. Trade shows offer the newest models and a variety of financing and factory incentives exist, which stress the affordability of the products. Moreover, several organizations and trade groups in the industry always support RV users, dealers and rental services thus serving as a great forum for the promotion of a specific product or service. Internet always offer massive role on people plan their RV trips that range from rental, purchasing, and reviews of campgrounds. The advertising level is set to surpass that of our three primary competitors. These include Sun Cruisin RV, American Dream Vacations and Cruise America all of which have established operations in Houston. Since the consumers are not conversant with our brand, the company will have to advertise more aggressively to achieve its ultimate brand awareness. Although our current market share is at three percent, we are set to increase our advertising budget in the coming year. This will be achieved through carrying out an advertising voice that is considerably higher than that of our competitors. Publicity To make our products known to our target market, On the Road Again RV Rental & Consignment will use radio and television advertisements. The best radio station to use for this is the KBXX-FM that has a large audience in Texas. The KBXX-FM will have the market segment within the Missouri City in Texas, which target Houston’s vivacious, enthusiastic, young consumers. Target market characteristics entail audience concentration with the underlying 12-34, 18-34, 18-49 and corresponding 25-34 age cells that normally produce marvelous composition of the main full-grown demographic groups. Moreover, in comparison to the underlying population, KBXX-FM’s audience possesses indices amidst 125 and corresponding within this fundamental demography. The population of the Missouri city is extremely diverse and non-Hispanic whites are the minority, with 42.5% African American, 16.3% Asian, 16.2% Hispanic, and corresponding 25.1% non-Hispanic white. The station reaches numerous of the age cell 25-34 than the teens. KBXX-FM possess a large audience with an estimated ad rate is $264.00 for a thirty second spot, and ABC 13 KTRK Houston at $90 per sixty second commercial (Gaebler Ventures, 2013). We acknowledge that our primary target spends most of free time either listening to the radio or watching television, hence, this type of advertisement will be able to reach our target (Dibb & Simkin, 2008). Additionally, the advertisements should be inclusive of travel packages aimed at appealing to our customers to ensure high sales within our first year in the travel industry. The company will also set up its On the Road Again RV rental & Consignment website is godaddy.com, which it will advertise all its services to the all those seeking RV rental services from the internet. The website will be design and website hosting will be built from our own services. This will be a colorful website with numerous images of our rental RVs and the prices being charged for each individual vehicle. Additionally, these images will include captions stipulating all the features of the RV including its interior spacing, facilities available and the amount of fuel required per mile. The company is also set to create pages on various social media sites that will be used for free advertisements of our products. Such social sites include Facebook, Twitter and Instagram that will provide us with the platform to not only make our products known but to also receive feedback from our clients and other potential customers. This will allow us to gain more insights on what more we can do to improve our services and gain more customers. The marketing costs of creating the page will be $200. Additionally, the company will place free advertisement in AARP, on Recreational Vehicle Dealers Association website and any other RV trade organizational websites offering free advertisements. Further advertisements will be done through flyers and brochures and Texas Highway Magazine. The company is also set to attend any trade conferences that will be held in Houston in the near future to introduce potential customers to our services. All these are meant to provide On the Road Again with an avenue through which it will reach a larger number of our potential customers and increase our sales. Location Our company chose Houston as the best place to introduce ours RV rental services to the travel industry due to the vibrant life and a variety of places for outdoor activities in the city. Houston is America’s fourth largest city, which gives our company the absolute opportunity to grow into one of the best RV rental companies in the region. The head office will be located at Houston to ensure that all our local and out-of-town clients have easy access to our offices. The reason for location of RV rental services in Houston is due to the high population of the resident. Housing and population characteristics within Missouri City has granted the city with an exemption from the regulatory of 51% low to moderate income threshold for the location to be CDBG Target location. 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