Case Study – Olympic Rent-A-Car
Olympic Rent-A-Car was founded in 1976 by former Olympic pole vaulting champion John Uelses.
Through his leadership the company grew steadily over the years to attain a 7% overall market share in
2012 by promoting lower prices than Hertz and stressing quality service using the slogan “go with the
winners” in their advertising. Olympic offers their Medalist Rewards Program in response to competitors
programs that are designed to reward loyalty to its customers. Olympic has always held the position of a
follower to their competitors on their loyalty program with only an 11% participation rate which is about
one fourth of Hertz. This ...view middle of the document...
Now that Enterprise is offering free rental days with no blackout dates and shifting away from rewarding
days to dollars spent. Olympic must now determine whether to counter with changes to their current
Medalist Loyalty program or potentially eliminate it in favor of lowering overall pricing to attract new
and/or retain current customers. Olympic has been growing in revenues faster than the industry
standard yet if they decide to make changes their overall Medalist program it may negatively impact
their very small net profit. The concern will be if they offer deeper rewards and eliminate blackout dates
this could have a huge impact on availability and potentially disappoint customers. Since Olympic offers
the lowest prices in the industry matching Enterprises offering could have a devastating effect to their
One alternative could be to eliminate the Medalist program altogether and offer further discounts in the
hopes of attracting additional price conscious renters and still maintaining their current customers.
Since the Medalist Rewards Program...