Service Marketing by Meru Cabs

Topics: Customer service, Customer, Marketing Pages: 15 (5248 words) Published: March 23, 2013
Services Marketing

1) Find information about the industry as a whole (no of players; billings; contribution to GDP; market size; Key trends; market leader/s; key stakeholders (customers, bankers, end-users etc). Industry: Car rental

Company: Meru Cabs

* In last one decade one can see how the car rental industry has shifted its base from unorganised sector to organised one. * Car rentals increase 14% in current value terms in 2011 to Rs313 million, with transactions touching 81,000. Car rentals predicted to see 14% constant value C AGR over forecast period to reach Rs614 million in 2016. * The fleet size, in general, did not show much growth due to increasing costs, including fuel prices and intense competition. The growth in the fleet size was driven by expansion of the branded car fleet, which enjoys alliances with hotels and airports, unlike the unorganised category. * With increasing Internet penetration, online car rental sales increased by 33% in 2011, compared with the increase of 14% in overall car rental sales. * Online booking is common among international tourists, with domestic tourists also increasingly switching to online. Since domestic tourists are more familiar with booking offline by phone or in person at a rental office, overall car rental purchases continued to be dominated by offline sales at the end of the review period. * Hertz’s Indian franchisee, Carzonrent India, remained the leading provider of car rental services, with an 18% value share in 2011. * Car rentals have still a long way to go in the context of branding and promotions. The majority of car rentals are still unorganised and therefore advertisements are not of much benefit. A very few branded players have tie-ups with major hotel chains, and these players remain associated with each other for longer terms. However, branded car rentals are growing at a faster rate and are likely to become competitive in the near future. * Unorganised car rentals are moving towards consolidation, with smaller players tying up to reduce operational costs and sustain business. Organised car rentals are gradually becoming competitive and are expected to move towards the same trend. * The online car rental segment is expected to see a constant value CAGR of 25% over the forecast period, mainly driven by an increasing Internet-savvy consumer base.

2) Choose one company and work out conceptual and contextual learning for the company across each session as below: A1. Identify and explain company’s inbound marketing activities. Is the role of traditional marketing activities minimised?  &

A11.  Identify use of new media by the company to promote and communicate service/ pdt offerings to their respective TG. Do you think the company can attain better marketing ROI by calibrating investment judiciously across online and offline ad and marketing spend? A recent inbound marketing activity taken up by Meru Cabs was the composition of a ‘Whateo’. The clip can be seen at - The clip talks about Meru Cab and ease with which it provides quality services. Through the clip they also talk about a customer being able to book a cab within ’60 seconds’ online (Meru – on-the-Net). Meru Cabs are predominantly booked through phones by consumers. Whenever a consumer dials 44224422 to book a cab, he is informed of the option of being able to book ‘Online’. Meru Cabs have been credited for a lot of innovative OOH campaigns. In Delhi, it rolled out the ‘Don’t drink and drive’ promotion to encourage people to call for a Meru instead of drinking and driving. For this promotion, Meru Cabs identified four TGIF (TGI Friday’s) pubs and 160 restaurants, where it has placed tent cards and utilised their LCD screens to spread the message. The tent cards carried the message – ‘If you find this hard to read, it’s time to book a Meru cab.’ In another interesting innovation, colour coding was used...

Bibliography: * Meru Cabs launched in Mumbai with 45 cabs in 2007; expanded to three other cities in 2008 (Delhi, Hyderabad & Bengaluru)
* Scaled to a fleet of 5,000+ cabs in three years, across Mumbai (1800), Delhi (1200), Hyderabad (800) and Bengaluru (1200)
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