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This is the first of a two-case series (598-039-1 and 598-040-1). This case opens in late 1995, Jan Smith, newly appointed Group Strategic Director, was confronted with several challenges: the Club, which had pioneered automotive breakdown and recovery services in the UK nearly 100 years ago, had been steadily losing market share and profitability; advanced vehicle technologies significantly reduced the need for breakdown services; traffic congestion and pollution threatened legislative attempts to control and/or ban cars in urban areas; and, on a more strategic and long term level, the RAC, in Smith''s view, lacked a clear brand positioning, a distinct customer proposition, and thus a cohesive strategic direction. By the end of case A, the issues to be resolved are therefore mainfold: to determine why the RAC was losing market share; to identify and weigh, give the competitive, strategic and environmental situation, the strategic options available for the service company, and finally to devise and implement a strategic marketing plan to support the needed repositioning. A video ''RAC: Repositioning a Service Brand'' (598-039-3) is available to accompany the case series.