Due to Covid-19, the demand for mobility services declined drastically. On top of that, there was a surge in road hailing alternatives, which led to price erosion. Popular Rent A Car saw that it was unsustainable to keep engaging in a price war with competitors and decided to engage us to rethink the strategic direction for their organisation.
Business Strategy Development
In order to develop new business strategies for Popular Rent A Car, we conducted extensive research and analysed the business models of other similar providers in Singapore, Asia and the US. From there, we proposed that they compete with others on value instead of price. With that in mind, we introduced a series of post-pandemic coping strategies aimed at building brand equity. This includes the implementation of a Complete Clean Pledge (CCP) Programme, which comprises enhanced training protocol for vehicle cleaning, new cleaning product requirements, safety seals on driver-side doors etc.
Other than broadcasting and reassuring customers of Popular Rent A Car’s competence to build up credibility, we also looked into brand loyalty. To improve customer retention, we suggested a new customer loyalty programme with differentiated tiers to earn points. For example, the basic membership is free to attract new customers, while premium customers enjoy more exclusive benefits. Apart from that, we also recommended Popular Rent A Car to invest in a mobile app to complement the customer loyalty programme.