Mehta Car Rentals aims to target the growing Indian travel industry by offering luxury car rentals. It plans to partner with 230 independent car vendors to obtain 200 sedans and 30 luxury cars. Mehta Car Rentals will establish offices and parking facilities in Delhi, Noida, Gurgaon, Jaipur, and Amritsar. The target customer segments are young urban professionals, foreign tourists, NRIs, and corporations. The strategy is to offer competitive prices and flexibility through online bookings while partnering with hotels, travel agencies, and hospitals.

1. Mehta Car Rentals
“Drive The Luxury”

2. Mehta Car Rentals
Overview
Overview
• Indian Travel Industry is booming over the last decade, the Indian economy has grown consistently at
an average rate of 6-7% per annum1.
• Convenience of travel arrangement using internet: Riding on the digital economy rise, travel portals
offering travel packages, hotel stays, etc., have eased the booking process for travel. This has ensured
that there are competitive tourist friendly offerings available in the market.
The strategy would be to target:
 Young Urban population - prefer
Our Approach
independence over comfort
 Foreign Tourists - Safety, the biggest
concern
 NRI – Prefer travelling in high-end cars
 Corporates – Short on time and on
dynamic schedule
1: Source KPMG

3. Operational Specifications
• Tie Up with multiple independent car vendors for 200
sedans and 30 luxury cars
Collaboration Considerations
• Collaboration with Hotels, Resorts, Travel Agencies &
Hospitals
• Two Parkings with 35 cars capacity at Noida & Gurgaon
• One Head Office in Delhi
• Regional offices at Jaipur and Amritsar
Infrastructure Considerations
• Outsource the call centre for telebooking
• Purchase 50 sedan cars with average cost of Rs 7 lacs
Manpower Considerations Hire 30 drivers to get isolated cars back to Delhi

4. Car Rental Industry
Five Force Analysis
Low Threat of New
• High Capital Requirement
• High Economies of Scale
Entrants
Required (Medium Margin- • Several players in the
High
High Volume) market
• No major legal constraints • Limited cost differentiation
• Slightly risk zone Low switching cost
• Large Network required
Bargaining Power Competitive Bargaining Power
of Suppliers Rivalry of Buyers
Resulting rivalry scenario
• Dependence on external • High competition in the over all travel industry
players for cars • First mover advantage
• Chances of suppliers • Focus on distribution channel optimization
Medium
capturing the end-
customers
• The external partners in
the most cases are
relatively small firms, with • High Product to Product substitution
limited individual • Several potential substitutes for product itself
bargaining power • Multiple factors such as convenience and
Threats to availability comes to play in travel domain
Substitute High

5. Objective – Customer Profiling
Customer Profiling – To define the customer segment for Mehta Car Rentals
Analyse the most Define target Analyse the new
viable age-group potential - upcoming market
population for tourists coming
1 LOCAL 2 to Delhi 3 of
POPULATION MEDICAL
FOREIGNERS &
TOURISTS
NRI
• Total Population (Delhi)– 6222K
• Total Annual Foreign Tourist in
• Age Group 25-40 (Approx. 25%) –
Delhi – 2 Million* • Total Medical Tourists visited Delhi
1555K
• Segment of tourist which prefer to = 0.1 Million 1
• In this age group 10% hire cars
hire cars (10%) = 2 lacs • Segment which will prefer to hire
**= 10%
• Segment which would prefer to cars without drivers (10%)=10,000
• Out of this 5% will prefer to rent
hire luxury cars without drivers • Total number of trips per month
cars without out drivers **
(25%)= 50,000 ~900
• TARGET POPLUATION = 75,000
• Total number of cars =12,500
Hence 6000 Trips per month • Total trips per month ~ 1000
** Assumed for calculations * : Sans Medical Tourists 1: Census Data 2011

6. Pricing Strategy
Car Segment
Total number of cars Type of Cars
Sedans Luxury Cars/SUVs
(Indigo, Logan, Manza & Desire) (Targeting Foreign tourists)
Number of cars required for Delhi
sector = 6000/30 = 200 cars Pricing for Luxury Car
Pricing for Sedans
The fixed component of the
Average full day price charged by local vendors
Number of cars required for pricing will depend on the
= 2500*
Medical Tourist= 900/30~30 type of car requested.
Number of cars planned to hire from local
The customer will be
vendors = 180
No. of Luxury Cars required for charged 10% extra from the
Number of cars planned to be purchased = 50
NRI + Foreigner = 1000/3~ 30 market standard price in
Price to be paid to local vendors =2500-
return of the independence
500=2000 (Cost of driver + diesel deducted)
and we will pay 10% less to
Cost to customers for hiring sedans = 2500
the vendor deducting
drivers fee and diesel cost.
Net Revenue: (500*180+2500*50+3000*30)*30 =9150000 /Month

7. Target Cities
Jaipur
• Tourist Attraction : Pink City. Other tourist points in close vicinity
1 • Shopping Destination
• Upcoming IT Hub
• Range of luxury hotels and resorts
Agra
2
• Taj Mahal alone gets minimum of 15,000 tourists daily
• 848K – Foreign Tourists who stay overnight, 209 – Domestic, 1130K – One day visitors
• Agra is a biggest centre of the footwear industry.
• The hub of Leather industry
• Emerging destination for IT based industry
3 Amritsar
• Golden Temple & Waga Border
• Local government working towards encouraging tourism through food festivals et al
• Strong NRI community
• Strong export based industry & upcoming luxury hotels

8. Strategy to attract investors
Cost Analysis
Initial Cost
3500000 Key Highlights
Car Purchase Cost (50*700000) 0
Web Site Cost 200000
• Break Even Cost
GPS one time cost (50*10000) 500000 achieved in 9
Other Cost 1000000 months
3670000
Total Cost 0 • High profit bearing
business
OperatingCost- Per Month
Car Maintaince Contract Cost (50*5000/12) 20833.33
• Impressive future
Car Serviceing Cost (50*10000) 500000 expansion plan
Parking Cost 200000
Call Centre Outsourcing Cost 300000
Office Setup Cost (in delhi) 300000
Office Setup Cost (in other three locatons) 300000
Driver Expence (30 drivers, 6000 per month salary) 180000
GPS Cost (2000*250) 500000
Marketing cost ( of all three media) 1000000
Total Cost 3300833
Total profit before tax (Revenue- Total Cost) 5849167
Profit after tax 4094417
Break Even 8.963426 Months

9. Marketing Strategies – STP Analysis
Positioning & Targeting
• The plan is to target two segments namely – Luxury segments & Young travel enthusiasts
• Some key points of its promotional campaigns are:
Tier Type-I Type-II Type-III
NRI & Foreign National
Younger, College – going
Target Segment Tourists & Medical Corporate Executives
& travel enthusiasts
Tourists
 As a safe alternative to  Flexibility to plan  Opportunity to plan
travel own trips sojourns between
 Convenience &  Better social status business trips
flexibility of location
Positioning –for luxury segment  Ability to get better
 Opportunity to enjoy
driving
 No overhead issues value of money-
 Convenience to leave  Sense of adventure corporate discounts
car  Convenience
The flexibility & convenience for tailor made trips & ability to leave cars anyplace will be highlighted
throughout campaigns.

10. Marketing Strategies Communication Media
Promotions at IGI Airport Delhi
• The booking stall will offer personalized services to the travelers by interacting
directly with them and understanding their individual needs.
• IGI Airport has 23 million passengers footfall annually1
• Position strategically to attract foreign tourists at the airport by offering them free
guidance to plan their trip in Delhi.
Internet Marketing
Reach avid travelers through the medium on social media
o Facebook Page for the company & dedicated twitter handles
o Spread awareness about the page and start trends on twitter by organizing competitions and posting
on famous travel pages such as lonely planet .
• Start a YouTube channel
• To showcase travel experiences the customers had.
• Update various holiday destinations in and around Delhi
• Invest on personalized advertisement through Google and Yahoo.
• Target bloggers & travel consultants such as MyGola to create awareness about the concept
1: Source IGI Website

11. Marketing Strategies Communication Media
Collaboration
• Tie-Ups with leading luxury hotels & resorts in Delhi, Jaipur & Amritsar.
• Association with travel agencies such as MakeMyTrip, Expedia and local
agents to offer deals on the car rent.
• Affiliate with leading hospitals such as Apollo and Fortis to offer specialised
services to the medical tourists.
Conclusion
It’s quite clear that by implementing this idea, we are not only
reaching the breakeven within one year but also future expansion
plan will make us more profitable.

12. Thank You