Easycar

A Case Study Analysis on
EASYCAR.COM
Priya Saraswat, Anupama Nahar, Tulsi Karki

MBA IV Semester
Case overview
 The case focuses on the history of easycar.com and car

rental industry.
 It also highlights the rapid expansion, apparent success

and the future strategy of easycar.
 It also focuses on the 5 P’s of marketing mix out of 7 P’s of

service marketing (product, place, price, promotion,
process)
2
Price
Promoti
Proce on
ss
7 Peopl
Place
P’s e
Produc
t
Public
Evidence
3
Brief introduction
 Easy Car is into Car rental services. It is a member of easy

group of companies founded by Greek entrepreneur Steilos
Haji-Ioannou.
 Steilos first founded low cost air carrier easyjet.com with

investment of $43.47 million and after the success of this he
expanded his business to easycar.com
 In the 3rd year of its operation the co. crossed its BEP and
generated $16.1 million.
 Business model was same as that of the airline industry and
the total investment was of $ 16.1 million.
44
The rental car industry
The industry is semi integrated and there is the ripe for

consolidation.
Many national, regional and international company.
 International companies which are dominant in some

European cities are Avis, Europe car, Hertz and SIXT.
55
Contnd….
CUSTOMER
SEGMENTS
Business Leisure segment

segment Constitutes 45-65%
Constitutes 35-  very price
55% conscious
Less price
sensitive
6
The Growth story of Easycar
Easy car came into existence eon 20th April 2000.
The co. opened first location at London then in Glasgow and

Barcelona.
Co. choose these location because these were very popular

Easyjet destination.
 vehicle it rented was Mercedes a class at rate of $24.15 per

day plus one day car preparation fee of $12.8.
It quickly expanded to the 48 location in 5 countries of Europe

by Jan 2003.
7
Contnd….
The major market was UK.
By 2003 it has 7000 fleet of vehicles at 28 location it

provides Mercedes A class, ford focus at 4 location,
Renault Clious at 3 locations, Toyota Yarises at 3 location
Mercedes smart at 2 location, Vauxhall Corsas at 7
location.
8
Easycar outlets
Its outlets are not located in posh area of European cities

Its outlets are near bus train station and some are near airport
but on the off side of airport.
Airport located outlet are opened 24 hrs while others working hrs
are 7am to 11 pm.
The outlets are min equipped .
At a particular location there are only 1 or2 people working at a
time.
9
MB E Class
Example Vehicles: Example Vehicles:

MB E Class Saloon Volvo V70 Estate
MB C Class Saloon
10
Process
Customer Customer is Around ½ hr is

have to come required to consumed in
before bring some process of telling
booking time documents about companies
policies etc.
Customer is The return of The vehicle

expected to the vehicle is rented have
clean the car & within reserve fuel…
then easycar prearranged on returning
employee will 1 hr of time fuel must be
check it. period. equal to this.
11
Price
The Company followed Demand based Pricing and strategy it
followed was Synchro-Pricing.
Although it advertised the rent as low as € 5/day.
This amount was applicable to weekdays only othewise the

rates are slightly higher.
As the rental date come near the price raises.( to achieve
100% fleet utilization)
The total money which the customer paid is sometimes higher

than the rental charges. Eg:-
those who go beyond 100km are charged €.12/km.
late return fee is € 120 per day.
12
Promotion
Company used low cost occurring media to

advertise.
It used posters and press.
Free publicity.
In 2002- $2.30 million.
13
Strength
Company is Financially strong.
The business model which was once used and proved to be

successful in airline industry is being used in rental industry.
The Company’s founder is highly competent.
No agent between the customer and the company.
Demand based pricing approach to attain maximum utilization.
High use of latest technological equipments.
14
Contd…
Opened first at those places where it is already known.
The first car it rented was Mercedes A class, then it

went to less costly car segments.
Transparency of various prices to the customer.
In first three year of its operation it has achieved its

Break Even Point.
15
Weakness
It offer only one kind of car at a location.
The process of picking up the car takes 30 minutes due

to low manpower.
Lots of documentation formalities.
Very low advertising strategy.
16
Opportunity
In the industry, there is ripe for

consolidation.
Rental for one hour and booking for

one hour can be used as Taxi etc.
17
Threat
Legal Challenges.
Competitors.
18
Conclusion
In our point of view, the service and the
process provided by the Easycar is efficient,
since every step from renting the car to
returning the car is very clear and easy to
handle.
 Booking directly from the Web site is more

convenient for the customers.
 There is no requirement for the customers to

pay in full at the time of booking and it’s not
refundable; every charge for renting a car is
clearly listed on the Web site in order not to
confuse the customers.
continued
• Moreover, easyCar’s pricing and promotion
strategies are effective. The reasons are
that it did differentiate itself from its
competitors with its low price, as low as €5
per day plus a per-rental preparation fee of
€4 and generally its price was less than
half that its major competitors. It’s very
important factor for leading the market.Its
taking advantage of free publicity to advertise its
brand was also innovative and operational
20

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A Case Study Analysis on

Priya Saraswat, Anupama Nahar, Tulsi Karki

 The case focuses on the history of easycar.com and car

 It also highlights the rapid expansion, apparent success

 It also focuses on the 5 P’s of marketing mix out of 7 P’s of

 Easy Car is into Car rental services. It is a member of easy

 Steilos first founded low cost air carrier easyjet.com with

The industry is semi integrated and there is the ripe for

Many national, regional and international company.

 International companies which are dominant in some

Business Leisure segment

Easy car came into existence eon 20th April 2000.

The co. opened first location at London then in Glasgow and

Co. choose these location because these were very popular

 vehicle it rented was Mercedes a class at rate of $24.15 per

It quickly expanded to the 48 location in 5 countries of Europe

The major market was UK.

By 2003 it has 7000 fleet of vehicles at 28 location it

Its outlets are not located in posh area of European cities

Example Vehicles: Example Vehicles:

Customer Customer is Around ½ hr is

Customer is The return of The vehicle

Although it advertised the rent as low as € 5/day.

This amount was applicable to weekdays only othewise the

The total money which the customer paid is sometimes higher

Company used low cost occurring media to

It used posters and press.

In 2002- $2.30 million.

The business model which was once used and proved to be

The Company’s founder is highly competent.

No agent between the customer and the company.

Demand based pricing approach to attain maximum utilization.

High use of latest technological equipments.

Opened first at those places where it is already known.

The first car it rented was Mercedes A class, then it

Transparency of various prices to the customer.

In first three year of its operation it has achieved its

The process of picking up the car takes 30 minutes due

Lots of documentation formalities.

Very low advertising strategy.

In the industry, there is ripe for

Rental for one hour and booking for

 Booking directly from the Web site is more

 There is no requirement for the customers to

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