This is a business plan of the company called Mr. Rentals that started in 199, founded by Glen and Kerrianne Hickman and is based in Perth Western Australia in a suburb called Balcatta. The business is about renting appliances and electronics and house goods such as VCRs and TVs from their stores for a particular period of time. (Mr. Rental, n.d.).
The pricing techniques that the company should use must depend on the demand for the electronic appliances in the area they are operating. Furthermore, they should also consider the brand and the model of the appliance they are renting and depending on that they should set the price at which it should be rented.
Moreover, they must also consider the price of that particular appliance at which it is being sold in the market. This is because if they will charge a higher price to the customers, firstly their market would decline. Secondly, if the appliances would be available to the customers on high rates, they would prefer saving some money and buying the appliance themselves.
The prices of the company are charging for its rentals vary from the range of the products that they offer and also on the number of days or months for which the customer wants to hire the appliance. Under the kitchen items, Mr. Rentals offers freezers, fridges and microwaves. The freezers available are large and medium chest freezers and upright freezers that cost $11, $9 and $ 13 per week. The company offers medium, larger, extra large and bar fridges that cost $13, $15, $19 and $8 per week while the microwave is available at $ 6 per week.
Under the lounge items comes audio, DVD and VCRs, game consoles, set top boxes, TVs and TV stands. The prices of these items vary from home theater system for $14 and stereos for $10 while DVD players for $3, DVD recorder for $11, DVD and VCRs combo for $6 and VCRs for $2 per week.
Under game consoles the play station 2 is for $7, PS3 for $23 and Xbox 360 for $16. 106cm LCD TVs for $30, 106cm Plasma TV for $35, 51cm flat screen TV for $5, 66cm LCD TV for $20, 68cm flat screen TV for $20 and 81cm LCD TV for $23, TV units for $5 and set top boxes for $6. Under laundry items are dyers and washers. Dryers are available at $8 and washing machines from $10 to $16.Under the office items come computers, data projectors, printers and desks. The computers are available at the prices ranging from $23 to $33, data projectors are for $150 and printers for $6 and desks for $5.
To promote its business, Mr. Rentals should use an advertising and promotional strategy and it would be best if the company advertisers in magazines that are related to females or whose target market are the household women. Furthermore, they can also advertise in the magazines that are famous amongst the bachelors. This could bring attention of the prospective customers and they would get to know more about the offerings of the company.
Besides that, Mr. Rentals can also develop promotional literature such as flyers, catalogues, leaflets, free samples, ad newspaper, etc. Other than this, Mr. Rentals can use search engine tools to drive traffic to their website, EZ-Mail list, EZ-Affiliate tools, EZ-Hit counter tools, etc. The best time to do these promotional activities is when the demand of the items is the most. For instance, there is a higher demand for the laundry items in the summers
The demand of the game consoles, lounge items such as TVs, VCRs and audio systems is most during the vacations. The demand for the kitchen items such as fridge and freezers is also higher in the summers therefore they should be promoted in the summers more than in winters or in any other season.
Doing the SWOT analysis would give a clear view of the strength, weakness, opportunities, and threats of the company. Mr. Rentals promises free delivery within 24 hours that saves time of the customers and the company also has the offers online facility to place orders after which the company delivers, installs as well as demonstrates the appliance without any charges. Mr. Rentals also offers free services for the customers if they might have any complain or they might want any repairs or replacement of the appliance to be done.
Moreover, the company offers flexible agreement terms that can serve the customers well along with easy payments with several options such as direct debit, centre pay or credit card facilities. Mr. Rentals has the latest appliances available and they give the facility of up gradation to its customer with great package deals. These are all the strengths of the company and the company can benefit from it by maintaining this and also by adding some more facilities for the company.
Weaknesses for the company can be types of deals it provides. If the company does not offer a wide range of deals or they do not have the brands available that suit the customers the most, their market would decline.
Therefore, sue to the competition existing in the market, they must ensure that they keep all the latest appliances in their stores. Opportunities for the company would be the deals that it offers. It must offer more and more interesting deals to attract the customers. However, a threat for Mr. Rentals would be the decreasing prices in the home appliances. If the electronic appliances manufactured by the companies are of lower prices, the demand for renting appliances would greatly reduce as people would prefer to buy the electronics instead.
The results of the market research produced from the primary and secondary resources show that Mr. Rentals is quite popular amongst the customers. The primary data used is the company’s data that was available in the company and its website. Moreover, market research done through the surveys and questionnaires used tells about the likeliness of the customers for the electronic appliances and the deals offered by the company.
The list of the products that the company is willing to sell is mentioned above in the paper. They basically deal with four categories of electronic appliance i.e. the kitchen, lounge, office and laundry items. The target needs of the company are realistic, achievable and sufficient to make a profit.
To attract the target market, Mr. Rentals have a very good option of making allowance for seasonal factors such as in summers or during the holidays when there is a higher demand of laundry items in the summers and lounge items during the vacations. During such seasonal periods, the business can work to full operation.
Mr. Rental. (n.d.). Wanna read a bit about Mr. Rental’s History? October 27, 2008. Retrieved from: http://www.mrrental.com.au/home/index.php?id=32