As the Florida Chief Sales Strategist for Universal I have been charged with the responsibility of making sure that Universal's sales are as profitable as possible. While there are many potential strategies to grow Universal, my strategy is to maximize sales. Universal already has the majority market share as a car rental agency in the state of Florida, so market share will not be a main focal point in strategy. One of the areas of concern that I noticed upon entering this new position was the current under utilization of Universal's fleet for weekend rentals in the Tampa and Miami regions. Also, Universal's pricing was lower, by a few dollars, than our main competitor.
In order to eliminate fleet surplus, I decided to lower the weekend rates in Tampa and Miami to encourage surplus utilization. To offset the weekend price reduction, I increased pricing for the weekly rates in Tampa and Miami. This was acceptable due to the fact that weekday demand was greater than what Universal has been able to supply.
This tactic proved to be effective as the utilization of fleet capacity increased to 75% from 62% in Miami and 99% from 77% in Tampa.
I decided to drop the weekend rates again for December in both the Tampa and Miami regions to maximize fleet usage. Demand showed to be increasing for the weekdays in Tampa and Miami and generally in Orlando.
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