Task 1 Evolution of Marketing
The purpose of this task is to provide a brief overview about the marketing analysis of the company Addison Lee. The organization is a UK based company which deal in providing minicab services in the Greater London market. Further the organization implements the marketing mix strategies to achieve growth and overcome competition present in the external market. Currently the company has 4000 vehicles and the annual revenue is £900m (Addison Lee, 2017). More details about the task are discussed below:
Production, Product, Selling and Marketing Orientation
The company Addison Lee uses the production, product, selling and marketing orientation theories successfully to gain competence in the target market. The organization utilizes such concepts to obtain long-term growth objective of the company. The production concept tells about the preference of the customers towards the products present in the market. The products in the organization that are highly available and are cheap are always preferred by the customers in the market so the managers in the organization aim to increase the process of distribution to enhance efficiency (Sheth, and Sisodia 2015). Further the product concept tells about quality offered by the company in the target market which helps the organization to outshine. The selling concept helps the company to increase their potential customers in the market by harassing the resources and market feature available to them. Resulting to which, a reciprocal relationship is created in the market with respect to target customers. Lastly, the marketing orientation concept of Addison Lee Company refers to the capabilities present in the market which can help the company to run smoothly. With the help of marketing concept the organization initially target the adequate customers in the market and then provide specification in the products so that the customers are insisted to purchase it (Siu 2015).
The process of marketing orientation refers to the process which provides a business model to the company which helps them to increase the sales. With the use of orientation strategy in an organization, the managers can easily analyze the climate present in the external market and whether it is fit for the product or not. Addison Lee being one of the biggest organizations present in UK has efficient resource for market orientation process. Market orientation is the approach which is adopted by the company to success in the target market (Rossiter Hofer, Smith, and Murphy 2014). Further it shall be noted that the profit margins of the company clearly tells about the orientation approach used by the organizations. More than 4000 vehicles are used to progress the growth of the company, also 20,000 job notifications were issued by the organization (Jung, et. al., 2017). Also the fact shall be noted that the company has managed to gain ISO 9002 worldwide by effectively using its strengths and implying it towards the growth of the company (Appendices 1.1).
Task 2 Marketing Environments
Environmental Strategy
Talking about marketing environment it shall be noted that this factor plays an important role in in targeting the long term growth objective of the company. The organization uses the PESTLE, Porter analysis to examine the external factors affecting the growth of Addison Lee. This analysis tells about the political, social, economic, technology, etc. factors present in the industry which affects the growth of Lee. So, it is important for the organization to evaluate such strategies prior to initiation of marketing strategy as it help the company to implement the activities on the basis of features present in the target market (Dunning 2014). With the help of adequate information the organization uses their available resources and capabilities in the right direction to achieve competence. The Pestle analysis tells about the external environmental analysis and porter tells about the industry analysis in which the company is currently acting. Attainment of knowledge from such field will help the company to initiate the transactions in a better way to create an effect (Eelen, Dewitte, and Warlop 2013).
Not only the internal factors but the macro environmental factor plays a huge role in affecting the growth of the company. Mainly the economic and socio-cultural factor affects the working of the organization. both positive and negative impact are created with such features of the market, furthermore talking about the economic factor, it shall be noted that as there are stability issues present in the external environment due to which it become difficult for the company to sustain their growth and make repeated sales in the market. Apart from that the socio-cultural issue is that there is an increase in the preference of renewable energy due to which the organization utilizes natural resources to create the product resulting to increase in level of satisfaction of customers. Further distribution of income equally also acts an opportunity for the company to grow (Morgan, et. al., 2015).
The fact shall be not that competitors are present in all industries and this threat is always centered with the companies that they might lose their essence in the race of competition. Further the micro environmental factors of Addison Lee include distribution channel, suppliers, competitors, customers etc. Being in the industry of minicab the company needs to face competition cut throat competition, Uber and Hailo are the biggest competitors of the company. The potential threat to the company is the loss of their market value as with this effect the customer might switch to use competitor’s product (Appendices 1.2). Another potential threat is dealership regulation process which reduces the amount of profits earned by the company as it gets distributed (Peppard, Galliers, and Thorogood 2014).
- Well-known brand in UK market
- Equipped and qualified machineries and unlimited fleet of vehicles gives more advantage to company.
- Low operational cost and low market cost as well.
- Maintaining the pace and sustainability (Zeriti, et. al., 2014).
- High degree of competition is adversely affecting the growth of the company.
- The relationship of the employees specifically drivers with the management of the company is not solid and good. As the drivers are satisfied working with company due to which quality is compromised along with loyalty and integrity.
Task 3 Marketing Strategies
Market Segmentation and its importance
Marketing segmentation refers to the process of segregating the customers preset in the market on the basis of specification of the products. The market is segmented and the target customers are identifying who will purchase the product in the market. In simple terms market segmentation refers to the process of dividing the customers into sub-groups and analyzing the potential customers who are will to purchase the product in the market. With the help of this process an organization gets the chance to target the right customer in the market and initiate sales. Also reciprocal relationship is created with the help of this process (Conradie, Roberts-Lombard, and Klopper 2014).
Segmentation approach adopted by company
It is important for every organization to initiate market segmentation so as to develop the marketing strategies accordingly. So the segmentation approach used by the company Addison Lee is discussed below:
Focus strategy: As the company now wants to target the age of 16-25 so they shall initiate the focus strategy. This strategy will help the organization to concentrate on a specific age group to target in the market. Thus the organization will further initiate strategies accordingly so that the interest of target customers is connected in the product. Resulting to which, they will initiate sales in the market. Further the focus strategy work in such a way that it defines the target customers according to segmentation bases and then implement marketing strategies in the organization so that those target customers gets attracted towards the products of the company (Busse, et. al., 2017).
Concentration strategy: It is regarded as biggest approach to the process of segmentation as it helps the organization to focus on their internal capabilities rather than external features to excel in the market. The management of Addison Lee shall focus on their products and services and initiate value addition in them so that subsequently the more and more customers are targeted in the market. This will help the organization to target age group of 16-25 by increasing their satisfaction level through product specifications (Appendices 1.3).
Thus in this way the two above mentioned strategies will help the company to target the age group of 16-25 customers present in the market (Matzler, Veider, and Kathan 2015).
Marketing Mix is a strategy which helps the organization to understand about its product, place, price, promotion feature which they can use to increase the demand in the market. It helps he organization to expand overtime without the help its internal capabilities. Further talking about Addison Lee, it shall be noted that the company is one of the biggest transportation network available in UK. So the 7P’s strategy will help the organization improvise the marketing skills and initiate sales in the market. Further detail about marketing mix is discussed below:
- Product: The Company offers minicab services to the people present in UK. The product offered by the company is unique and efficient and very few competitors of the company are present in the market. But ace the market from the competitors the organization has implemented the product strategy. This strategy helps the organization create value addition in the product and then offer it to the public.
- Place: The area served by the company is Greater London. Although the organization is currently not placed to other parts of the world because its initial target is to achieve competence in the center of location and hen move forward to other place. This will help the company to create a valuable brand image in the market (Gretzel, and Fesenmaier 2016).
- Price: The Company offers cheap and affordable prices in the market. As Uber is highly prominent in the country. Thus, the organization offers less prices of their services due to which the customers gets attracted to their products instead of Uber.
- Promotion: Promotion of Addison Lee Company’s products and services is done by the way of online websites and applications. The company has developed an application which helps the customers to book the can services to their personal devices.
- Physicalevidence: efficient vehicles help the company to smoothly run their business in the market.
- Process: Organized process and structure helps the organization to grow rapidly with time.
- People: The Company is aiming to maximize the level of satisfaction of employees so that they can bring output for the company (Stokes, et. al., 2014).
Task 4 Marketing Mix
Although the organization is working well in the industry but still is there is some scope of improve with the help of which the company can succeed in the target market. Thus it is recommended to the company that is aim to improve interpersonal relationship with employees and drivers of the company. The company also initiates product differentiation strategy so that the customer can easily differentiate their product from other competitors present in the market.
Apart from that the organization shall also initiate adequate promotion mix strategy to promote the product in the international market as well. They shall aim to expand their business in other part of United Kingdom so that effectiveness is created in the market. This will also help the company to increase their profit margin as well (Addison Lee 2017).
Conclusion
Thus in the limelight of above mentioned events, the facts that shall be noted is that the organization Addison Lee has successfully implemented the marketing strategies in their business. The company serves minicab services in parts of United Kingdom and now they shall aim to expand their business by making it international. Product differentiation strategy will help the company to create brand image whereas prices of the product and services are affordable. Further the organization shall analyze the various marketing strategies and implement them accordingly in their business process so as to achieve growth. Further the strategies suggested in report would justify the growth of the company in the market.
References
Addison Lee, 2017. Business class cars. At your service. Viewed on December 14, 2017 from https://www.addisonlee.com/services/about/
Addison Lee, 2017. Travel in a calmer space. Viewed on December 14, 2017 from https://www.addisonlee.com/services/standard-cars/
Busse, M., Busse, M., Swinkels, J., Swinkels, J., Merkley, G. and Merkley, G., 2017. Enterprise rent-a-car. Kellogg School of Management Cases, pp.1-15.
Conradie, E.S., Roberts-Lombard, M. and Klopper, H.B., 2014. The influence of eleven Ps: An internal marketing and brand awareness perspective in a service environment. Southern African Business Review, 18(1), pp.100-121.
Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.
Eelen, J., Dewitte, S. and Warlop, L., 2013. Situated embodied cognition: Monitoring orientation cues affects product evaluation and choice.
Gretzel, U. and Fesenmaier, D.R., 2016. Customer relations 2.0–implications for destination marketing.
Jung, K., Oh, S., Choi, C. and Lee, T., 2017. An Exploratory Study to Examine Incorporation of Sustainable Development Trend in Market Orientation Strategy.
Matzler, K., Veider, V. and Kathan, W., 2015. Adapting to the sharing economy. MIT Sloan Management Review, 56(2), p.71.
Morgan, T., Anokhin, S., Kretinin, A. and Frishammar, J., 2015. New Product Development Performance: The Interplay of Entrepreneurial Orientation and Market Orientation. In Ideas in Marketing: Finding the New and Polishing the Old (pp. 264-267). Springer, Cham.
Peppard, J., Galliers, R.D. and Thorogood, A., 2014. Information systems strategy as practice: Micro strategy and strategizing for IS. J. Strategic Inf. Sys., 23(1), pp.1-10.
Rossiter Hofer, A., J. Smith, R. and R. Murphy, P., 2014. Spillover effects of a firm’s relationship marketing orientation in the logistics triad. The International Journal of Logistics Management, 25(2), pp.270-288.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge.
Siu, N.Y.M., 2015. Marketing Orientation: Its Perception Within the Further Education in the UK. In Proceedings of the 1997 World Marketing Congress (pp. 602-605). Springer, Cham.
Stokes, K., Clarence, E., Anderson, L. and Rinne, A., 2014. Making sense of the UK collaborative economy (pp. 1-47). Nesta.
Zeriti, A., Robson, M.J., Spyropoulou, S. and Leonidou, C.N., 2014. Sustainable export marketing strategy fit and performance. Journal of International Marketing, 22(4), pp.44-66.
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