Sponsor (Oct-Dec 1964)

regional meetings in Los Angeles, Denver. Atlanta, Chicago, Houston, Montreal and other major markets. The message is the same at all meetings: First, Econo-Car is solidifying its hold on fourth place in the car-rental sweepstakes and then ifs zeroing in on the third position. That's a big order for such a new company. But Econo-Car. judging by past performance, is equal to it. The firm was founded only in 1961, when Larry Dixon and his associates staked out a nationwide network of dealer franchises. The crux of their plan was to build up a sironi> dealer setup. The core of their sales appeal was to base it all on a low-price marketing platform. Today, they attribute their fast rise into the Big Four in just three years to the success of those two concepts. That they really hit on something seems indicated by the response of competition: Hertz and others now have entered the low-price arena (Hertz by establishing a separate division for mass-market business). Another key factor in the swift rise of the company was its policy New St. Louis dealer Marvin Saks opens an Econo-Car door for first customer, Doris Brooks. In Canada, where basic price is $1 higher than in United States, Frank McGuire (r), Canadian operational manager, congratulates Frank Wahl, newly signed dealer for London, Ont., Canada. (still maintained) of dealer support via local advertising (primarily newspapers) and. in earlier days, a smattering of national advertising as well. Once national distribution had been well established, Econo-Car determined to develop a national corporate image. This was to focus on the concept of low price, but high quality. It was then that the burgeoning new company really reached for advertising as a crucial management weapon. Yet, advertising is being used as a pointer to locate — and answer — real needs, not as a tire pump to inflate the market's true dimensions. "The car-rental and leasing industry hasn't begun to scratch the surface of its potential," Dixon told Sponsor. "I would estimate that no more than 4 percent of the potential car-rental market in the U.S. and Canada has been tapped." With a 96-percent market potential to explore, Econo-Car clearly is looking beyond the airline-traveling executive, heretofore the best customer in the car-rental business. Dixon's management insights go something like this: In the first place, the airport locations are dominated for all practical purposes by Hertz, Avis and National. In fact, those companies reportedly realize 70 percent of their total volume at airports. Moreover, Dixon feels, the real growth potential lies beyond airports and business executives who use airport facilities (including car rentals) on company charges. The barely-touched big money will come from a market that's been virtually unexplored — until now, that is. This market is made up of salesmen, students, housewives, commuters and dozens of other consumer categories. These are people who want to be mobile, who'd like to rent cars and who undoubtedly will, once they realize that opportunity is realistically within their grasp. Or so goes the Dixon thinking. Although generally identified as the first to recognize the potential of the mass market, Econo-Car certainly is no longer alone in this field. Many others besides Hertz have sought discount rental business on a market-by-market basis. The challenge posed by the swarm of new arrivals is discounted, however, by Dixon who holds that the mar ket potential is "enormous fo strong, aggressive and promotion minded companies," especially thosi who know how to combine servio with low price. Despite the proliferation of local competitors. Dixon is unreserved! optimistic about 1965. His mos: recent projection indicates tha Econo-Car's nationwide fleet will in crease between 40-50 percent next! year, with a proportionate jump ini the ad budget. Obviously pleased,j Dixon says the company's advertis-i ing appropriation will be the largest ever in its brief history. While Na tional, in third place, spends an estimated $1.4 million this year, Econo-Car expects to top that next year by placing advertising worth $1.5 million. And, as noted, radio's role will be "major." The race is on. And it'll be excit ing to watch. For if Econo-Car joins Hertz and Avis as third member of The Big Three, it'll be the only economy-priced member of the ultra-exclusive triad. ♦ u 36 SPONSOR tij k