Question

This chapter introduces several tools for marketing planning. The BCG matrix (p. 30) typically reflects market share and mar- ket growth on the two axes. However, you can also use a BCGVery little profit is derived from refueling. This is viewed as matrix to reflect other measures. Insurance and miscellaneous income has very little related expense a customer service. Easy Rider Car Rental is a single-location operation in Smalltown, USA. A new marketing manager has been hired to analyze business and propose areas for further marketing focus and growth potential. The manager identified the following six potential tlow to high) and revenuesg Based on the information the manager has collected, place each of the five business units on a BCG matrix with growth the two axes. business units: . Explain your placement choices. . What to do think the marketing manager should do with Gross revenues per year Leisure car rentals Corporate car rentals Refueling/Fuel packages Insurance add-ons Misc. accessories (baby seats, S2M this analysis? 900,000 S540.000 $100,000 $300,000 45% 279% 5% 15% High STARS QUESTION MARKS 896 Growth potential $160,000 GPS, etc.) CASH COWS DOGS Here are some facts the manager has to consider . A new Intel plant has been built and will open within the Low High Revenues Low next six months

Answer 1

1) Since Leisure car rentals and corporate car rentals has good revenues and great growth rate and potential for growth in the future, they are classified as STARS

Insurance add-ons had robust revenues but had lower growth potential. While refuelling segment has neither good revenues nor any exceptional growth potential.

Misc accessories was growing good but had lower revenues.

2) As a marketing manager, we may try and divest the segment of refuelling and invest the fund made available to the STAR segment.