In the United States, for example, more than 30% of the market is already leasing
With units that revolve around vehicle rental – still the main business -, Localiza also invests in the subscription car model, with the launch of Localiza Meoo, in which the customer pays a monthly fee.
“People don’t have that commitment (with financing) and it makes accessibility easier, because today a car is very expensive”, highlights Antonio Augusto, the company’s marketing director.
To accompany the customers’ consumption journey and offer the company’s services through communication, which has declared revenues of R$ 10.9 billion in 2021, Localiza has a marketing team made up of 120 professionals and an in- house, in addition to working with external agencies, such as Artplan.
Another bet is the recent launch of the website Trust mewhich offers travel tips and services with special discounts.
Methodology
When I joined Localiza, about three years ago, we started a process of consolidating the company’s business units, such as car rental, used car sales, subscription car, fleet management and used car sales. And what we saw is that for each unit, we ended up building a small silo and marketing worked in a very little synergistic way. As the company was going through, at that time, a very significant transition from being a company focused on products to a brand focused on the customer, offering a platform of solutions for them, the attempt we started in that period, and it was successful, was also to bring the customer’s vision into marketing and then, yes, make a distribution within the disciplines of the area.
Communication
Our model is based on participating in conversations that are relevant to our audience, always in a customized way and with a very active listening to what is of interest at the moment. We use the channels, according to their specificities, to talk in a close and engaging way. On TikTok, for example, we talk about all our territories – cars, travel, lifestyle – in a fluid and unpretentious way. At the same time, on Instagram, we have a more elaborate footprint, with influencers and productions that could even be in the movies. We also bring the content in a unified way and always present on www.vaipormim.com, which has become a complete collection of all our productions and those of our partners. In this way, we are able to talk to audiences in the format and time that is most convenient and interesting. Even with the recent launch of the in-house Maloca 73 (with creative direction by publicist Dan Zecchinelli), we continue with partner agencies such as Artplan for branding demands and FutureBrand for other projects.
The Best Where’s Next
The signature is ‘The Best Wave is the Next’, which completed one year. And we have several very seasonal campaigns. We recently launched the Vai por Mim website, which is a great content hub where people can be inspired for the next path and can also use Localiza’s entire network of partners, with special discounts. And production is continuous, every week new partners and new content come in, tips to keep the flame of inspiration lit. The goal is to be increasingly present at all stages of the consumer journey. With the strong digitalization of society in recent years, the focus is to provide the customer with inspiration for future trips to the planning and feasibility of the route. Vai Por Mim offers travel tips and also the possibility to buy packages and discount air tickets.
business models
Our latest release was the subscription car, Localiza Meoo, which is super interesting. Google’s Industry Report shows that the auto industry in the traditional buy-and-sell format is undergoing transformation and under great pressure, down 14% year-on-year. But when you take the car subscription rate, the growth, according to Google, is 19.5% over the same period. This transformation, which means that the consumer wants to enjoy the good, but does not need to have the good, made Localiza launch this product, because at the end of the day the brand knows how to take good care of the car. The company has a network of more than 10,000 workshops and 600 stores. So, the customer who wants to have a car, but doesn’t want to tie up the capital, the subscription car is a fantastic solution.
Operation
The customer can choose the model, how much they want to run per month and how long they want to keep the car, like a year or two. From there, the company configures the proposal, the customer receives the brand new vehicle and pays a monthly fee, which already includes all maintenance, taxes, insurance, 24-hour service and discounts on services. It’s a great mobility package.
30% in the USA
In the United States, more than 30% of the market is already leased. Brazil has everything it takes to reach this number, especially when comparing other subscription services, such as Netflix streaming, music, very well adopted by Brazilians. And there is another interesting detail that is the credit. This product does not have a financing, it is a monthly fee. The person does not have that commitment and facilitates accessibility, because today a car is very expensive.
Rent
It is a business that has gone through very different moments over time. At the beginning of the pandemic, of course, everything involving mobility stopped. Soon after, a new cycle began, when people started to move more safely and then the demand for cars rose a lot, leading the automotive industry to have a lot of restriction on parts. With that, the car rental business underwent a rediscovery, many people started traveling by car across the country as well.
We have a trend indicator that shows the vacations of people from São Paulo, for example, especially the middle class. And the coast and surroundings of São Paulo have gained immense relevance, and basically people travel by car. Another phenomenon is that many people from São Paulo no longer have a car to run an app and rent it on the weekend. But there is still a lot of opportunity, because in more developed markets, leasing has a much greater penetration than ours. I believe that the next ten years will be one of more consolidation.
Bet
Localiza’s commitment is multifaceted. The company strongly believes that the subscription will continue to grow, it is a model that gives access and flexibility, however, it competes with the zero-kilometer car. And the pre-owned car model continues to be incredibly beneficial. At the same time, Localiza invests heavily in vehicle rental because we have a very positive view that, with the end of the pandemic, we will resume growth and this market will take off. We also believe in the mobility segment with applications. The brand has Zarp Localiza, a platform just for app drivers, which should continue to grow a lot.
investment in marketing
The brand has a multichannel investment, with media funds from offline, TV, out of home, airports, to digital, from social platforms that serve for inspiration to acquisition and conversion, which goes through Google a lot. At Google, we have a development that puts us in the penultimate stage of sophistication and a very high level of maturity. It’s a 360 investment and trying to go where the customer is.
