Case Study: Identifying Unique Target Segments for a Multi-Brand Car Rental Company

Challenge:

A client in the car rental sector wanted to develop a new strategic approach for its two core brands using a market segmentation strategy. Given the disruption occurring in the car rental industry and a need to distinguish its individual brands, the company sought to identify unique segments of consumers that represent a high value opportunity for each of its brands.

Solution:

To meet the client’s objectives, Rockbridge conducted an online survey of U.S. car renters and applied its MaxSeg™ solution to identify unique segments of consumers, measure their size in the market, and understand their brand affinity.  Typically, segmentation schemes predict behavior, tell you how consumers think, or determine how to reach them, but MaxSeg™ is able to achieve all three goals.

The primary analysis focused on profiling the market through an attitudinal segmentation scheme, which yielded six distinct segments. Each of the segments have unique mindsets and needs from the car rental experience, lifestyles and attitudes about travel, affinity with our client’s car rental brands, demographics, and travel behaviors. The segments were designed to link to indicators of value (e.g., category usage and spending) as well.  Using several key indicators of value, Rockbridge developed a segment priority index to identify high value segments and “swim lanes” for each brand, providing a unique target audience for each of the client’s core brands.  Information gathered in the survey, as well as linkages to external data sources, provided guidance on targeting each segment.

Note: Data and segment names are disguised.

Effective storytelling and socialization is critical to gaining the acceptance of a corporate-wide segmentation strategy.  Rockbridge presented the results of the segmentation study to multiple audiences, including senior leadership, marketing and communications teams, and brand leaders to gain buy-in and spur usage of the segmentation in their strategies.  One tool we used to help tell the story of each segment is persona development.  Personas bring life to the segments helping internal teams understand the essence of each segment as they consider how to attract these customers to their brand.

Result:

This study provided the client with specific high-value target segments for each of their core brands. The client is currently developing marketing strategies, including advertising and targeted digital communications, for the top priority segments by brand.