Enterprise

11/14/2010

Business Plan

Mitchell Wold
Sales Improvement Plan for the Enterprise Rent-A-Car
Business

Prepared for English 320: Business and Professional Writing

By Mitchell Wold

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Table of Contents
Title Page…………………………………………………………………………………………ii

The Business…………………………………………………………………………………….4

Objectives……………………………………………………………………………………….4-5

Methods…………………………………………………………………………………………5-6

Timeline………………………………………………………………………………………….7-8

The Goal…………………………………………………………………………………………..8

Rubric……………………………………………………………………………………………….9

References………………………………………………………………………………………10

Table of Figures
Figure 1a…………………………………………………………………………………………..7

Figure 1b…………………………………………………………………………………………..7

Figure 1c……………………………………………………………………………………………7

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The Business:
Mission: To increase the sales of the Enterprise rental car agency in the specific location of
Fargo, ND.

Enterprise Rent-A-Car is the single largest rental car company in North America, with over
65,000 employees. Originally started as a leasing company, we provide car sale, fleet
management, commercial truck rentals, and van pool programs. Customers can rent vehicles by
walk-up, reservation (online or by phone), or through their employers.

Although we are the largest in the nation, Enterprise has struggled with sales in the Fargo-
Moorhead area, particularly at Hector International airport, which is our largest location of the
metro. Competitors at this location include Avis, Budget, Hertz, and National/Alamo. The
company has had a consistent revenue below that of Avis, Hertz, and National/Alamo in past
years and with this year also. Total revenue for past months in this year has been around only
11% to 14% of the total revenue generated by all of the rental car companies at Hector
International Airport.

Although Enterprise is the largest rental car company in North America, the statistics clearly
show that the Hector International Airport location is failing to keep up with the competition
and requires attention. I have proposed an improvement plan for Enterprise that will increase
sales revenue if successful.

Objectives:
Increase Sales Revenue:

Currently, sales have been lower than that of our competitors and Enterprise is failing to
expand at the airport location. The company has shown its capability of expanding in Fargo, and
even all around the nation, yet nothing has been done to make an effort to raise profits and
beat out the competition.

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Better Customer Satisfaction:

In the new era of business and marketing, companies are more concerned with the long term
bonds with their customers. Instead of one time sales, Enterprise should be focusing on the
future sale with the same customer, which can be achieved through rewards programs and
quality employment.

Change in Vehicle Inventory:

Types of vehicles offered will most certainly affect the way a consumer will make their choice,
which makes the models of chosen automobiles very important. Vehicle reviews should be
taken into consideration and customer demand for a certain vehicle should be identified before
purchasing cars, trucks, and vans.

Methods:
Increase Sales Revenue:

 Lower Rates: The current rates at Enterprise are similar to the competition, yet are
higher than Hertz by around $3.00 per day, depending on the type of car. Most
customers will rent out a vehicle for more than 1 day, which means a small difference in
the price per day can cause a greater difference in the overall amount after the
purchase. $3.00 may not seem like very much, yet customers will most always be
attracted by the lowest price they can get. This method is more focused on “walk-up
sales” and online reservations. Customers can compare rates online and when searching
for a vehicle. Customers that at the airport often rent a car when they arrive and ask the
sales agents the company rates for each company.
 Advertise: Other companies in the rental car business have put their name out on the
market successfully, as well as Enterprise with the exception of this region.
Advertisement for Enterprise is poor in Fargo, ND. Therefore, increasing newspaper,
magazine, television, and billboard advertisements will need to be improved.
Advertisements in travel magazines will be considered above the rest to attract the right
consumer.

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Better Customer Satisfaction:

 More rewards programs: Currently, the company offers a “Enterprise Plus” free
membership program, which allows for discounts with a rate as low as $9.99 per day
under the best circumstance. A rewards choice that would accommodate this would be
a multilevel level discount promotion. A bronze, silver, and gold level rewards program
allowing a cheaper price the more a customer rents a vehicle that is not based on a
monthly time would keep traveling customers coming back. They would not feel
pressured and would allow for long term promotions. A bronze level customer would
receive a 10% discount, a silver level customer would receive a 20% discount, and a gold
level customer would receive a 30% discount on their rental plus a free night at a
Marriot hotel for every 7 stays purchased.
 Vehicle Inspection: To ensure that consumers are receiving the best quality of service,
car inspections should be done on a weekly basis. Management can then evaluate their
employees and take necessary action to make sure that the cars are getting cleaned as
good as possible and that service laborers are putting forth their best effort. This can be
done by using a checklist of all the parts of the vehicle that should be clean with a rating
on how well the job was done. Other components of the checklist would include the fuel
level (should be full of gas every time the car is cleaned) and a damage report if
necessary.

Change in Vehicle Inventory:

 Popular Models: Customers like to be familiar with what they are getting, and therefore
models that are popular should be used in our vehicle inventory. Popular demand
should always be considered when dealing with long-lasting (durable) goods. For full
size cars, Enterprise should consider purchasing two specific models. These are the 2011
Hyundai Sonata (figure 1a) and the 2011 Chevrolet Impala (Figure1b). These are
relatively popular models and both cars have received positive reviews. An additional
positive aspect of buying from these two automotive companies is the fact that they
have XM satellite radio, which many consumers would find as a bonus to their purchase.
Once a car is purchased, a one-year free trial of XM satellite radio is included. Enterprise
should make sure to refrain from purchasing the 2011 Toyota Camry due to its recent
recall for its accelerator pedal. This car has had criticism for its safety, thus consumers
may feel uncomfortable driving this model of car if they are aware of the heat that it has
taken from the media.
 Luxury Automobiles: Enterprise does not have any luxury cars in stock. Customers that
travel long distances often like to rent out vehicles that are comfortable. Also, this

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 would attract higher wealth customers. Only one or two luxury cars will be necessary. A
specific vehicle make that would suit this need would be a 2011 Cadillac DTS (Figure 1c),
which is a luxury sedan with higher performance than other automobiles in its class.
Since modern day businesses are focused more on long-term bonds with their
customers, regular travelling customers that are of higher rank would be interested in
this class and would be more satisfied overall if a car that is more elegant is available.

Figure 1a Figure 1b

Figure 1c

Timeline
The following chart shows the time at which necessary actions should take place. Take into
consideration that the change in vehicle inventory may begin with some cars within the first 5
months because of the ongoing need to sell certain vehicles. After month 5 is when automobile
analysis should take place and more popular cars should be purchased. This is a more gradual
change as we will switch over and replace our current inventory with a more evaluated one.
Note that month 1 is the beginning of January if this plan is accepted. Since the level of business
during the winter is significantly smaller, more vehicles are sold rather than purchased to
maintain an adequate inventory for the number of customers. This is another reason why a

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higher number of cars will be purchased in June. July will be the busiest month, thus revenues
peak at this point.

Month Month Month Month Month Month Month Month Month

The Goal:
Enterprise currently makes up about 13% of the total revenue of all its competitors at Hector
International Airport. The goal is to increase this percent by 1% every month for the first 4
months and then increase it by 3% every month for the next 5 months. This would set the
company ahead of its largest enemy, Hertz Rent-A-Car. They currently make up about 28% of
the total revenue.

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Rubric
Score Total Points Comments
Plan is well organized 20
and easy to read.
The purpose of the 10
business plan is
explained thoroughly
The objectives are 25
addressed and
explained
Methods relate to 25
how the objectives
will be met and are
relevant
The visuals included 10
in the plan are
presentable and
useful to the reader
Sources are 10
successfully and
properly cited
100

The following page includes all sources used in this proposal. They are cited in MLA format.

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References

“ C a r R e n t a l R e v e n u e H e c t o r I n t e r n a ti o n a l A i r p o r t 2 0 0 9 . ” H a n s e n L e a s e a n d
Rental –
Hertz. 19 Oct 2010.
"Chevrolet Impala or Similar." Choose Car. Web. 30 Nov 2010.

"Choose My Rate." Budget. N.p., n.d. Web. 21 Oct 2010.

" M a k e a R e s e r v a ti o n . " H e r t z C a r R e n t a l . N . p . , n . d . W e b . 2 1 O c t 2 0 1 0 .

"Select a Car." Avis Rent A Car. N.p., n.d. Web. 21 Oct 2010.

"Select your vehicle." Enterprise. N.p., n.d. Web. 21 Oct 2010.

W i l k i e , S c o tt . I n t e r v e w b y M i t c h e l l W o l d . 1 1 / 3 0 / 2 0 1 0 . P r i n t . 3 0 N o v 2 0 1 0 .

"2011 Cadillac DTS Rear Main." egmCarTech. Web. 30 Nov 2010.

"2011 Hyundai Sonata." Auto Insight. Web. 30 Nov 2010.

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