New Direction At Hertz Leasing

Dramatic expansions of managerial responsibilities, the field sales force and advertising budget are key factors in an innovative, nationwide marketing program now being mounted by Hertz Rent A Car Leasing.

Keynote of the new marketing effort by Hertz is the development of increased business in the area of vehicle finance leasing.

"As of now," said Dennis R. Israel, new vice president and general manager of Hertz' Car Leasing Division, "we have strengthened our management base, more than doubled our sales organization, and are substantially raising our advertising budget. And we are doing this while simultaneously concentrating on further improving the Division's internal efficiency, in our effort to cultivate customers interested in the possibilities of finance leasing.

"At the same time, we are encouraging business transacted in the area of full-maintenance leasing," Israel said.

Israel, who formerly held the position of vice president-sales for the Hertz Rent A Car Division and served before that with the NBC Radio Division and Westinghouse Broadcasting Company's national sales force, noted that finance leasing is "the order of the day" in the industry.

Currently, the Division maintains Western, Central, eastern. Metropolitan New York and New England regional offices. To handle increasing business derived from finance leasing activities, the New England office was opened earlier this year, and a new district sales office in Dallas is due to open shortly.

Both sales offices and sales personnel will be added as part of the expansion program as the need arises, according to Israel. Meanwhile, responsibilities of the five regional managers have been expanded in line with the new marketing effort.

Aiding Hertz' sales program is John H. North, recently named vice president, general sales manager of the Car Leasing Division. North had been regional manager of Hertz' Eastern Region before assuming his new position.

The company is now handling lease business on fleets of less than five vehicles. Car fleet decision-makers throughout the country affected by this new policy are being contracted by Hertz sales personnel.

The Division's advertising program - formerly limited to trade papers - will be expanded to the business press to educate potential lessees throughout the nation primarily on the advantages of finance leasing. It recently named the Van Brunt agency to handle its new program, and appointed Lawrence D. Mazur advertising and marketing director for the Division.

"In line with internal divisional strengthening," said Israel, "we are re-examining our rate structure with great care so as to become even more competitive in both open and closed-end leasing arrangements." In this regard we have appointed Jose Menendez as director of finance and planning.

He noted that the Division was increasing its service outlets nationally, and was computerizing a substantial volume of service and maintenance information. These include the tracking of vehicles, maintenance requirements, licensing and titling.

Normally, the Division disposes of its used cars through auctions and wholesalers. Although it will continue to do so, it will also utilize the retail route. New locations on both east and west coasts to handle retail sales are planned for the near future.

To provide the lessee with cars and service as quickly as possible, Hertz furnishes vehicles through its effective liaison with more than 1,000 new car outlets around the nation.

The Division's New York headquarters at 660 Madison Avenue supervises transactions between these dealerships and car leasing customers by maintaining a cross-check system for accurate procurement and distribution of automobiles.

Israel concluded, "The new direction in vehicle leasing is the cultivation of the finance lease customer in particular. We are turning our marketing and sales efforts in this direction while continuing to provide full, up-to-date service for our many full-maintenance lease customers."