Developing a portfolio strategy for business growth
Interbrand’s work took a fundamental view of our business and strategic imperatives. Original customer insight and financial data was combined with analytics and creativity to allow us to make clear and brave decisions about our future.
CMO, Hertz International
With a portfolio of brands, comprised principally of Hertz, Dollar, Thrifty and Firefly, Hertz International (the non-US Hertz business with over 10,000 locations in 150 countries) asked Interbrand to help develop its portfolio strategy for growth.
Our brief was broad and complex: to shore up Hertz’s premium positioning, capture growth at the mid and low-priced ends of the market, defend against dis-intermediation by online aggregators and support margin enhancement through more direct bookings.
Our comprehensive solution involved: consumer segmentation and needs analysis; brand portfolio strategy, aligning brands to prioritized customer segments; customer experience strategy, including development of experience principles and activation ideas across the customer journey. All of which was underpinned by analytics and financial modelling that quantified the impact of experience improvement initiatives on revenues and profits, enabling our client to successfully make the business case for investment.
The work has been a resounding success. It is not only highly intelligent, but actionable and inspiring to groups beyond marketing. It has given us the confidence to move forwards.
CMO, Hertz International
Our segmentation work was instrumental in bringing a more customer-centric mindset to the Hertz group, identifying the core needs of their most valuable customer segments and identifying opportunities to enhance the experience (like free WIFI) to drive loyalty and bring business back from price aggregators. Our portfolio strategy resulted in a more focused target audience for each brand, helping differentiate the customer experience by brand according to target consumer needs and helping Hertz re-establish its premium focus on its highest value segments.
Based on our business case analysis, Hertz launched a range of initiatives which led to a 29% uplift in direct sales on qualifying rentals and a 20% uplift in bookings post campaign from its disengaged loyalty club base in the first 6 months vs the same period in the prior year.
Now everything that Hertz does for the customer is activated through our foundational segmentation analysis and experience principles – with the end mission being to reinvent the global car rental industry to become first choice, worldwide.