Table of Contents

Introduction ....................................................................................Error! Bookmark not defined.

Research Objectives ........................................................................................................................ 3

Population and Sample ................................................................................................................... 4

Methodology ..................................................................................Error! Bookmark not defined.

Questionaires....7

Findings........................................................................................................................................... 8

Analysis of Results ....................................................................................................................... 18

Market Analysis ............................................................................................................................ 18

Market Definition and Size ................................................................................................... 20

Target Market........................................................................................................................ 20

Industry Analysis and Potential for Growth ......................................................................... 22

SWOT Analysis .................................................................................................................... 23

Sales Analysis ........................................................................................................................... 26

Customer Analysis .................................................................................................................... 28

Promotion and advertising 29

Pricing Strategy............................................................................................................................. 31

Competition............................................................................................................................... 32

Conclusions and Reccomendations............................................................................................... 33

Appendices .....................................................................................Error! Bookmark not defined.

1
Introduction:

Over the years there has been a rise in many industries and niche markets. One such niche is car

rental this may be linked closely with the tourism sector in Jamaica. According to (Collinder,

July 6 2012) the car rental companies are being squeezed by high bank interest rates, government

policies as well as operators who are outside of the system, president Diana Stewart told

the Financial Gleaner. It has forced the sector to shed 800 jobs or about a third of the workforce

since 2008. Most recently, since the start of 2012, one member has shuttered operations, erasing

44 jobs. The entire industry is now down to approximately 1,500 workers, according to Stewart.

If you recall the during the 2012 period the region and other countries were in the recession part

of the economic cycle, that said the next stage is growth. Looking at the current state of the

market First Class Rental Services decided that it would be a good time to establish this new

business and improved product.For Kotler, new products mean original, improved, modified

products and new brand which are developed by the firm through its own research and

development efforts and includes products which consumers see as new. Jamaica has embarked

on revitalizing their tourism and other industries in keeping with Vision 2030. Therefore First

Class Rental Services wants capitalize on these improvements in order to cater to changes in

consumer demands, have competitive advantage and an enhanced cooperate image. In

incorporating these features First Class Rental Services at the end of the research, hopes to

ascertain whether or not business is practical and practicable

2
Research Objectives:

To offer a service to the clients that has high quality, a quick pick-up service and a
comfortable atmosphere.

To provide friendly and reliable customer service in order to establish a loyal customer
base.

To make the customer aware that hiring a car is the next best option to buy a car.

To conduct a target market research to see if the public will be in a good response to the
service.

Developing a unique service that is of recognition to persons while creating brand

loyalty.

Promoting our services via social media, radio and television announcements.

To create an app that our customers can use not only to rate their designated drivers but
also to see who their driver is before they are being picked up.

To create and maintain a profession image.

3
Population and Sample

Target population

In-order to ascertain the necessary information needed for this feasibility study, a questionnaire

was created and issued, to obtain information regarding the creation and operation of First Class

Rental Services. First Class Rental Services will be situated in two different locations

Montego Bay St. James near to the International Airport and major hotels and

resorts.

Kingston, Jamaica near to the Norman Manley International Airport.

These locations were chosen because of the transportation links and easy access. Our cars will be

available with chauffer carrying cellphones so communication with them is easy as the demand

for service arises. Our office will be open 24 hours to facilitate the customers needs.

4
Sample Size

Our sample consists of both male and female. This market will be segmented on the basis of both

male and female demographics and psychographic characteristics. The demographic factors we

will use to administer our market research include age and gender, while the psychographic

characteristics will include preferences and interests. Members of the research team distributed

60 questionnaires, 30 in area of Kingston and 30 in Montego Bay St. James. The sample size was

chosen randomly to ensure that each person from different areas could get the general idea of the

quality products and service that our business will offer and thus express their preferences.

5
 METHODOLOGY

In an effort to obtain information that will enable us to help determine the viability of the

business idea, primary and secondary sources were used. Questionnaire was the main research

instrument used to obtain vital information for the completion of the feasibility study.

A total of sixty questionnaires were administered using two different methods. The first thirty

questionnaires were administered electronically via an online survey to persons in the parish of

St. James. This method was done due to the difficulties communicating with persons from the

parish. The other thirty questionnaires were administered randomly to the target population,

which refers to Kingston Jamaica. This was done over a period of 7 days.

The data collection was not limited to primary data, but also secondary data. The internet was

very useful in allowing us the opportunity to learn more about our competitors and population

size. Also, for us to gain more knowledge on the product and services that First Class Rental

Services will offer.

6
 QUESTIONNAIRE:

In designing the questionnaire that was presented to the target population, our team used a

mixture of open and closed ended questions. We gave the population a chance to express in their

own words some of the responses through our open ended questions. Much attention was placed

on the design and it was tested prior to being distributed by the team members of First Class

Rental Services both online and in Kingston.

Thoughtfulness was placed on each question to ensure the full participation of each respondent.

It was assured that the questions flowed in a consecutive manner to ensure quick completion and

not to bore the respondents. We ensured not to include any irrelevant questions. As a result of

this the questionnaires were successfully distributed and returned quickly as to ensure accurate

results.

7
 FINDINGS

This section will graphically illustrate the findings derived from the issuing of 60 questionnaires

between the period of September 29, 2014 and October 6, 2014. The questionnaires were

furnished with both open-ended and closed-ended questions (see appendices). They sought to

gather the preferences of respondents in regards to the location and service/product-offerings of,

First Class Rental Services as well as demographic information for respondents and the prices

that they are willing to pay for each service-offering; this aided in interpretation of the overall

feasibility of First Class Rental Services.

62% of our overall participants were male. In addition; approximately 7% were between the ages
of 18-21, 18% were between 22-25 years, 30% were between 26-30 years old while the other
forty five percent were between the ages of 26-30 years old.

Respondents were asked on average which range their income falls under. 22% said $20,000-
$40,000, 33% said between $40,000-$60,000 40% said $80,000-$160,000 and the remaining five
percent said $160 and over.

30% of the respondent said that they have participate in the rental of Moto vehicle on a constant
basis, 68% said they use rental cars sometimes and the remaining 2% said they have never use a
rental car before.

Based on the information received on the questionnaires it is possible to say that the respondent
are willing to pay form the services that First Class Rental Services will have to offer. And also
majority of the population are willing to pay for services with credit than with cash.

8
Fig.1 Pie chart show participants gender

Participants gender

female
38%

male
62%

Base on the above diagram (62%) participants were males and 38% were females.

9
Fig.2 bar graph show participants age range.

Participants age
30

25

20
number of participant

15

10

0
22-25 26-30 30+
Age

Base on the above diagram approximately 7% were between the ages of 18-21, 18% were
between 22-25 years, 30% were between 26-30 years old while the other forty five percent were
between the ages of 26-30 years old

10
Fig.3 bar graph show participants average salary.

chart showing participants average salary

over $160,000
salary JMD

$80,000-$160,000

$40,000-$80,000

$20,000-$40,000

0
5
10
15
20
25
number of participant

Respondents were asked on average which range their income falls under. 22% said $20,000-
$40,000, 33% said between $40,000-$60,000 40% said $80,000-$160,000 and the remaining five
percent said $160 and over.

11
Fig.4 pie chart show participants social rank

Participants social ranks

Upper Class Upper middle Class middle Class Working class

0%

7%
15%

78%

Based on the above date, 78% of the respondents were middle class 15% were working class 7%
were upper middle class and 0% said they belong to the upper class rank.

12
Fig.5 bar graph showing participants rental usage.

Participants Use of rentals

50
40
Axis Title

30
20
10
0
Series1
Constantly
Sometimes
Never
Axis Title

30% of the respondent said that they have participate in the rental of Moto vehicle on a constant
basis, 68% said they use rental cars sometimes and the remaining 2% said they have never use a
rental car before.

13
Fig.6 pie chart showing participants rental usage.

chart showing feedback about being

chauffeur driven
yes no

2%

98%

Based on the above graph it can be seen that 98% of the respondent would like to be chauffer
driven to their destination. And the other 2% do not like the idea of being chauffeur driven.

14
Fig.7 pie chart showing how often participant done car renting

Frequency of car renting

25
20
participants

15
10
5
0
2 or more once per year monthly never
times per
year
frequency

The respondents were asked how often they done car renting, 38% said they do it two or more
times for the year 18% said once per year, 3% said monthly and the remaining 41% said that
they have never done it.

15
Fig.8 line showing participants preferred vehicle.

chart showing prefered vehicle

25

20
number of respondent

15

10

0
Economy compact Intermediate premium luxury

From the line graph 65% of the respondent said that they would prefer economy car 12% would
prefer compact cars 9% said intermediate 6% said they would like premium cars and the others
said that they would prefer luxury.

16
Fig.9 donut showing participants preferred payment.

chart showing prefered payment

cash
9%

credit
91%

From the donut a above it can be seen that a larger percentage of the population prefer to pay
with credit than cash, it can be seen that 91% prefer credit payment and the other 9% prefer
to pay by cash

17
 Analysis of Results

Product Characteristics

Car rentals from first class rental services can meet your corporate needs in a number of different
ways.

Whether you need a single car for one employee or an entire fleet for a convention group let first

class rentals show you the best car rental experience where ever and whenever you need it. There

are many, many ways in which first class rental cars can make your daily business easier and

more efficient and economical. Consider the following different

The following factors of competition give First class car rentals a competitive edge over the

other car rental companies.

Quality:

Quality of cars- First class car rentals strives to consistently offer dependable vehicles. Each car

is thoroughly cleaned before every trip so that customers get a perfect car.

Quality services-

First class car rentals accords highest priority to fast and friendly customer service, safety and

comfort. It strives to offer prompt, personal attention to every client. Our chauffeurs are trained

18
to attend the clients and always believe in giving service with a smile. Punctuality and

promptness are the key qualities of our chauffers. Our chauffeurs are uniformed, well behaved,

equipped with mobile phone ,well versed with the topography of the city and understand and

speak English. The company is open for24 hours throughout the year.

Price:

First class car rentals offers its customers car rental packages at a competitive price without

compromising on quality or sacrificing company profits.

Convenience:

All American Express, Visa, and MasterCard , card are accepted. First class car rentals makes

car renting easy and hassle free for its costomers.

19
Market analysis

Market Definition and Size

First class rentals services is a potential business venture which will be geared towards car

renting and chauffer services. First class rentals services outlined/defined its target market

consisting of our spot-on and potential customers within area in Kingston, Jamaica and Montego

Bay, St. James, Jamaica. The main target market will be located close to the international airport

in Kingston

20
Target Market

First class rental service plans to target corporate world customers, who expect to travel with

good customer service and convenience. We are segmenting the market on the basis

of purchasing approaches, benefits sought and usage rate. Many companies have general

purchasing policies that prefer hiring or leasing the cars for their top-level and second level

21
employees rather than purchasing a car. Also they are benefited in many ways in terms

of cost factor and quality service, which includes time factor and comfort factor.

Industry Analysis and Potential for Growth

There is an increasing demand of easy facility in traveling especially in rural areas in Jamaica.

22
Different firms are coming up in the market to rent a car. Therefore it is important for First class

rental services to differentiate its services from others to attract a larger number of potential

customers. Bringing new ideas in this particular business is very much important; a customers

are keen towards new types of affordable services.

The vehicle rental market can be divided in terms of

Client type

Location

Rental schemes- (car hire,Car lease, Self drive)

23
SWOT Analysis

Strengths

1.Quality service in terms of time, cost and comfort

2.Proximity of location near to airports, and other corporate houses.

3.Organized manner of communication with drivers.

4.Niche market, initially only to corporates and hence less competition

Weaknesses

1.The prices are fixed according to the market conditions (that is demand and supply)

2.Being a new entrant, it is more difficult to capture the market share

Opportunities

1.Online registration and booking

2. Can cater to corporate in other metropolitan cities

3. Providing new facilities like self drive

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4.Can cater to travel agencies, banks, hotels etc. apart from corporates.

Threats

1.The car rental companies may wholly be concentrated into car rental services e.g.- Avis car

rental.

2.Rise in lease charges in the market due to inflation.

25
Sales Analysis

Like any other business, First class rentals services may experience a fluctuation in prices during

the different seasons. Sales are likely to increase in Christmas as most events are held during this

season and most people go for quality with the latest trends. On the other hand, sales are likely to

decrease in August as preparations are being made for the new school year expenses. Based on

the quality and unique services and product being offered, we expect to see an increase in the

number of customers we have each year.

26
Potential Yearly Sales ( first year / minimum)

Service/ Product and Potential Price/Workout Estimated Sales Per Month

Customers
$ $

Car rental

Economy (27
$5000.00 * 27 301,000.00
Compact (23)
$6000* 23
Luxury (4)
$7000* 4

Pick up services AVg

Occasion (30 person)

27
Drop off ( 60 persons) $1700* 30 75,000.00

$400* 60

Potential Yearly Sales

[$301,000+ $75,00.00 *12

= $4,512,800.00

Customer Analysis

First class rentals servicess focal purpose is to identify and satisfy our customers stated and

unstated needs and wants, through delivering quality products, superior service and exceptional

customer satisfaction. As previously mentioned in our Market Analysis, our customers vary in

age, social status, interests, etc. The selection and variation of our products/services are aimed at

satisfying the needs of each category of customer.

Demographics
Age our targeted customers are between the ages 18-40 and over

Income Group we aim at customers whose earnings range from $40,000Minimum or

more on a per month basis

28
 Gender we target both male and females.

Marital Status we cater to all customers whether they are single, married or divorced.

Psychographics
Life-style we aim to please customers who do have a car or a form o f transpotation, To make
the customer aware that hiring a car is the next best option to buy a car.

Interests customers who dont have a problem spending for their comfort.

Activities customers who love to travel.

Buying habits we cater for customers who rent car daily, weekly, fortnightly, monthly
or yearly.

Behavioral/Usage -
Occasions we provide products for all occasions, one day rental, wedding, delivery. etc

Benefits we will have special packages for customers who uses the service more than
once

Loyalty Status we will provide discount/membership cards to frequent costomers.

Readiness Stage we rent to various customers, novice, intermediate or veteran.

Geographic
World region/Country we plan to grasp customers in Jamaica as well as abroad.

29
 Climate/Season we provide service for all seasons: summer, winter, spring or fall
Neighborhood we provide products and services to suite all: working-class, middle-
class, upper-class and lower-class communities.

Promotion and Advertising

Initially we are not spending much on advertising but we have employed smart sales

executives who will visit the corporate houses individually and try to convince them to avail of

our services. Our sales executives will help us in creating awareness among new customers and

getting feedback from the existing customers. Later on, when profits start rising we can advertise

our business the following ways:

Advertising in mass media, some of the methods used are:

30
 o Newspapers- We will be using the nations newspaper (Gleaner and The
Observer) to publicize the developmental stage of this company.

o Business Directories - The Yellow Pages and Red Book will be used.
o Television broadcast- The product will be marketed over different TV shows
such as Smile Jamaica in order for the public to know about it and to get adequate
exposure.
Sales Promotion

Discounts Discounts will be given based on the amount that you spend on the service
and when we are in a certain season (Seasonal Discounts).
Public Relations

Press launches
Interacting with others the team will interact with customers and prospective customers
in order to get them to know more about our services.
Digital Marketing

Company Websites the company will have a website which will display details about
the company and its services.
Social Networks- the social networks such as Facebook, Twitter, Google+ and other
networks will be used to promote the name of the business and its advantages.

Pricing Strategy
This company plans to be very competitive in its pricing

strategy as it relates to other similar rental agencies. We will carefully establish prices so that

they do not seem too high, while at the same time allowing

us to obtain our business goals. We also have categorized the cars in terms of class

Car category
Economy Tata indica
31
Intermediate Ford Ikron
Full size Lancer
Luxury Mercedes Benz

Competition

Competitive marketing strategies are strongest either when they position a firm's strengths
against competitors' weaknesses or choose positions that pose no threat to competitors. As such,
they require that the strategist be as knowledgeable about competitors' strengths and weaknesses
as about customers' needs or the firm's own capabilities.
32
Main Competitors

Island car rental: rent car and plan trips for its customers but do not offer chauffer

services

Budget rent a car Jamaica: have all the Jamaica present but is tied up due to location.

Avis car rentals: Car rental companies providing car hire and also allied services such as

hotel reservation and tour planning.

First class rentals has an advantage over other the other car dealers due to its location, which is at

the center of its market. and also due to the prices of the service. First class rentals also has round

the clock facilities to meet the requirements of the customer. First class rentals eoffers 4

categories of cars viz Mercedes, Lancers, FordIkon and Tata Indica to its prospective customers

33
 Conclusions and Reccomendations

First class rental service can become a profitable reality. It has potential for growth and a s long

as it is advertised and promoted well, it will be consistent in increasing its market share. The

finding of this research have enabled the researchers to come to the realization that the business

idea is feasible.

The following are some of the recommendations for the business:

1. First class rental service will improve on our advertisement to increase our name

recognition.

2. It is recommended by respondent that we provide 24hours open office and customer

services customers and discounts to our regular customers.

3. The business will try to have more location as the years go by, this will increase profit

and improve management system.

34
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