Tag Archives: environmental scan

Hertz Bets Big on EVs and Tesla

Has the time for electric vehicles (EV) finally arrived? After all, EV automobiles are not a new concept and have been sold for many years by a number of auto manufacturers. But they have not yet taken off into a mass consumer market.

But now, EV sales are certainly growing with a large purchase of 100,000 Tesla cars by Hertz for a reported price of $4.2 billion. Showing support for the purchase is Uber, which committed to renting up to half of that order for its drivers. Consumers often state that a positive rental experience made them consider purchasing the model as well. The market for Hertz is not only current Tesla owners who want to rent Tesla when they travel, but also consumers who have wanted to test drive an EV Tesla for an extended period of time.

Current global market estimates are that EV market growth will go from roughly $246 billion in 2020 to $1.3 trillion by 2028. The growth is fueled in part by  the requirement to lower carbon emissions, as well as increasing fuel prices. However, a limiting factor is the low number of charging stations; mileage between charges continues to be a factor impacting sales.

A bonus for Tesla (aside from a sticker-price buy) is the advertising that Hertz will do for the rentals. Hertz is planning an advertising campaign with quarterback Tom Brady to promote EV rentals. The company will also install thousands of EV chargers at it locations globally.

Tesla famously does not purchase advertising, instead relying on its store-fronts, word-of-mouth, and the strong social media presence of Elon Musk  who has 54 million followers on Twitter.

Hertz also gains from the deal. It filed for bankruptcy in May 2020, but emerged from bankruptcy a few months ago, just as travel started to grow again in the U.S. After shedding old inventory during bankruptcy, the company is now poised to be one of the newest and most relevant car rental agencies.

Ready to rent?

Group Activities and Discussion Questions:

  1. View the Hertz news release: https://newsroom.hertz.com/2021-10-25-Hertz-Invests-in-Largest-Electric-Vehicle-Rental-Fleet-and-Partners-with-Seven-Time-Super-Bowl-Champion-Tom-Brady-to-Headline-New-Campaign
  2. A news video is available: https://youtu.be/gr6nLPUqzW0
  3. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  4. For Hertz car rentals, break students into teams and have each team build a SWOT analysis grid.
    1. Strengths: What is the company good at?
    1. Weaknesses: What needs work?
    1. Opportunities: What is going on in marketplace?
    1. Threats: What should company be wary of?
  5. You might repeat the SWOT exercise using Tesla. What are the company’s strengths, weaknesses, opportunities and threats.
  6. Based on the analysis, what are the issues and risks that might occur for Hertz with its purchase of Tesla cars?
  7. Same question for Tesla: What are the issues and risks?

Source: Assoc. Press; CNBC; Fortune Business Insights; New York Times; Tech Crunch; Wall Street Journal; other news sources

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Coming Soon to a CVS Store Near You – Therapy Sessions

Feeling stressed or down lately? Sorry to say this, but you are not alone. There is no doubt that the past year has had a strong impact on our mental health as people deal with new issues stemming from the pandemic. Many people find benefits from therapy during those times, but it might not always be easy to find a therapist and schedule times to visit.

To help people deal with these issues, CVS is now offering counseling services in or near select stores in Florida, New Jersey, Pennsylvania, and Texas. At these locations, CVS now staffs a licensed clinical social worker trained in cognitive behavior therapy. To address privacy issues, CVS says customers would have no way to know that someone is getting counseling (as opposed to other clinic services) in private rooms. An initial assessment with the therapist costs $129, while a 30-minute counseling session costs $69. Treatment would not be a substitute for long-term care, and would instead be used for issues that could be worked on in five or six sessions.

While at first glance CVS’s move might seem a stretch, it is also another way for retail pharmacies to offer additional health care services to customers, and in a place that they regularly shop at. CVS is being joined in these new therapy service offerings by rivals Walgreens and Walmart.

Social workers think that offering counselling in places consumers already visit will be a good draw, particularly for people in lower-income areas, or who lack health insurance.

Some days, we all need a little extra help.

Group Activities and Discussion Questions:

  1. Discuss the environmental factors that have led to new therapy service offerings.
  2. How have these factors led to new services?
  3. Show video of athletes discussing mental health: https://www.wsj.com/video/how-athlete-candor-on-mental-health-is-changing-the-game/8F51F296-46AD-423D-9B9F-C24E4DF6D7AD.html
  4. Ask students their opinions on the topic of mental health services as part of a whole care strategy.
  5. Show CVS website for mental health services: https://www.cvs.com/content/health-hub/mental-health-counseling
  6. Brief video of the services: https://youtu.be/3ZJcy8W3d0A
  7. Divide students into teams. Have each team develop a SWOT analysis for CVS that includes recent environmental trends.

Source:  Wall Street Journal; NPR; other news sources

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The Changing Face of America

Demographic information is very important to marketers. Demographics are descriptors; data that can be somewhat easily described such as age, gender, education, occupation, ethnicity, household size, and more. With this information, marketers can best target campaigns to the correct target market.

The recent census results highlight the changing American demographics from 2010 to 2020. Population has significantly changed in many ways since the 2010 Census results.

  • U.S. metro areas grew 9%, resulting in 86% of the population in metro areas compared to 85% in 2020.
  • The largest cities in the country are New York, Los Angeles, Chicago, Houston, and Phoenix.
  • The fastest growing U.S. metro area was The Villages, Fla., which grew 39% to about 130,000 people.
  • People who reported being more than one race spiked.
  • Multiracial population is now 33.8 million people, a 276% increase since 2010 (Note that the census tool has been revised since 2010 to give a more accurate racial report.)
  • White population declined by 8.6%.
  • African-American population grew 5.6%
  • Asian population grew by 35%.
  • Hispanic population grew by 23%.
  • The overall U.S. population growth has slowed to 7.4%, the slowest rate in a century.
  • More than 77.9% of the population were age 18 and over.
  • Housing units increased 6.7% to more than 140 million units.

No one expects the country to stay the same. What surprised you about the results?

Group Activities and Discussion Questions:

  1. Discuss the importance of demographics as part of environmental scanning and marketing plans.
  2. Show the recent Census results: https://www.census.gov/newsroom/press-releases/2021/population-changes-nations-diversity.html
  3. The 2020 Census map viewer can be found at: https://www.census.gov/library/visualizations/2021/geo/demographicmapviewer.html
  4. Divide students into teams. Have each team review the results. What surprised them? How can the data be used?
  5. Class discussion: What are some of the broad implications of the changing U.S. demographics?

Source:  U.S. Census Bureau; New York Time; other news sources

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