Trailer Hire
Vehicle hire is a much lucrative business venture that comes with stiff competition from established companies. The decision to venture into trailer hiring services could bring significant profits to the Avis Brand but comes with various challenges. Therefore, Avis Brand has to have a concrete business plan before deciding to undertake the new venture fully. The competition that comes with the trailer hire services gives a reason enough for Avis Brand to be cautious and require a feasible business plan that highlights all the activities and the returns expected from venturing into the various businesses. Venturing into the trailer hire business comes as a strategy to increase the business sales by adding to the already existing car hire services and the desire to expand the business to higher levels. Avis Brand has to ensure that the positioning of the new business has a well-identified target market and that the products offered are in line with the needs of the target population.
The positioning of a trailer hire business should be aimed at beating the stiff competition in the market and easy accessibility to the target population (Burks & Monaco, 2019). The services to be offered include the transport of heavy goods from across the states, and thus the trailers should be in a flexible position from where all the states can be easily accessed. With the fact that most clients always move to the capital to find trailer services, the strategic position would by Washington DC. However, other areas would still be strategic if the board of the Avis Brand finds reasonable points of operation.
The target population for the Trailer hire services would be wide. First, the clients who need transportation for heavy goods across states are the primary target for the trailer business. Second, clients with construction works are another target population for the trailer-hire business. The company will aim at relieving the target population from the burden of having to purchase trailers for temporary works, whereas the vehicles can be hired for lower prices. Also, the target population will have to be won from the already existing companies by giving better services since service providers already flood the market.
Provision of the objective will require the availability of both heavy and tractor trailers. The heavy trailers will be mainly used for transportation across states. Owing to the needs of the clients, the heavy trailers must be able to offer services without failure to the promising number of clients. The tractor-trailers on the other side will be used in the construction works on hire. The company will, however, agree on the hiring procedures and the clients since clients have different needs. For example, construction clients will need special services due to the time required for completion of the works. The company will do well by giving flexible offers to clients depending on the needs of the different clients.
The charges for the different trailer services will depend on the needs of the clients. For example, clients who require short term services cannot be charged similarly to long term clients (McMullen, 2018). The charging system for the trailer system in the US is always based on hours or days where clients require longer periods for the services. However, mutual agreements can be allowed to pave the way for local arrangements between the company and the clients. The clients who require construction services can be charged according to work done since using hours could be expensive and may turn away clients. Therefore, the pricing system for Avis Company should remain flexible to accommodate as many customers as possible. The success of the company will be based on the ability to maintain customers to like the services provided.
The collection of the trailers and the return of the hired trailers should be done on one point to save customers from confusion. The board should do the agreement concerning the place of collection, and the decision should be made to ensure that the interests of customers should be considered. The booking of the trailers should, therefore, be made at the collection point and enough time should be allowed to ensure that the company has sufficient time to plan for the delivery of services. Also, the hiring of the trailers should ensure freedom to the clients such that the client can be allowed to either hire their drivers or hire drivers from the company.
The desire of customers is crucial to every company, and therefore, the brand of the Avis Company is crucial to the success of the company. The introduction of the trailer hire business is a strategy to expand the business by improving the number of sales. The target population of the trailer hire business is, therefore, the clients who need transportation and construction needs. The positioning of the new business is, therefore, strategic in ensuring that the needs of the customers are well considered and that the charges are made according to the needs of the customers.
References
Burks, S. V., & Monaco, K. (2019). Is the US Labor Market for Truck Drivers Broken. Monthly Lab. Rev., 142, 1.
McMullen, Β. S. (2018). The evolution of the US motor carrier industry. In Trucking in the Age of Information (pp. 1-19). Routledge.