Marketing Mix Variables In Line Extensions – An Analysis Of Ingogo Company

Situation Analysis Recap

Discuss About The Marketing Mix Variables In Line Extensions.

Business marketing procedure requires a unique strategic implementation that could gather a number of customers and create a sustainable brand image. Current business world is supported by the advanced technologies due to which the business marketers are adopting innovative ways to promote their product to the target customers (Siguaw & Simpson, 2015). Digital communication is one of those most innovative promotional strategies that help in attracting a larger number of customers and creating the brand value while launching any product to the market (Huang & Sarigöllü, 2014). The study would be discussing the marketing and digital communication process of Ingogo Company, which is a unique cab operation business based in Sydney. The study would be analyzing the marketing strategy implementation that can help the business to achieve the target customer base. Identifying the situational prospects and appropriate marketing as well as financial objectives, the study would provide the clear ideas about the appropriate marketing management procedures undertaken by Ingogo Company.

Ingogo is a unique app used by the daily commuters, who prefer to travel in taxis in Australia. This innovative app is designed to provide relief to the daily commuters and develop economic benefits. The situation analysis unfolds the fact that the consumers are more likely travelling to the taxis in Australian City. This app would provide them the necessary facilities to hire a cab for their daily transportation (Grubb, 2014). It is noticeable that the economic scenario in Australia is rapidly changing due to which the Australians need to stay away from their home for their official purposes (Hanssens et al., 2014). Therefore, most of them try to hire a commute for their daily transportation. The political scenario indicates that the taxi operation business requires maintaining the vehicle pollution related laws as well as the transport laws. Hence, it is necessary to deal with such regulatory factors to create the sustainable position. On the other hand, maintaining the ecological forces also quite necessary in Australia. Retaining the natural resources is one of the most important ecological attributes that the company needs to maintain in Australia. This innovative app fulfills the demand of the social lifestyle, behaviour, and preferences of the consumers. In discussing the technological force, it has been observed that Ingogo management still needs to develop some of the wireless communication techniques by using the Smartphone devices and several online facilities to structure a clear expansion strategy.

Discussion

Detailed situation analysis also provides idea that Ingigo might face the direct competition with Uber, which develops a proper assessment to understand the underlying strength and weaknesses. Ingigo also needs to present the clear assessments based on this competitor analysis. It is important for the company to understand the basic demands of the stakeholders prior to develop any business strategy. In fact, the company might face challenges if it fails to make any counter strategies to participate in a competitive scenario. A detailed project planning and real opportunistic plans for providing commercial benefits to the stakeholders would be helpful to develop the marketing activities. The fixed fare, safety measurement, easily accessible booking facility, and trained professional drivers are the major strengths of Ingigo (Ingogo.com.au, 2018). On the contrary, the highly competitive ambience and the limited market penetration are considered to be the greater weaknesses of the company. The company might even face the considerable threats due to the minimum profitability and too much dependency on technology. However, the quick and easy payment process as well as the loyalty of the consumers can be much opportunistic to establish the business in Australian market. The stable political scenario in Australia is quite favorable for the business to ensure the sustainable growth. The higher level of economic opportunity in Australia is quite beneficial for the business. In fact, the healthier social attribute is quite effective for providing the new offers in future. The company is using the innovative app to book the cab that opens new business opportunity to make the business more cost-effective. However, the company needs to develop more fruitful strategies to maintain the environmental sustainability.

In keeping pace with the continuous growth in the economic zone, the Australians are identifying opportunities to make the professional and personal growth. They often need to stay away from their home and use taxis and cabs for their daily transportation (Aras et al., 2017). In fact, they even prefer the idea of the innovative technologies that can make these demands easier to get. Ingigo identifies such requirements of the daily commuters. Therefore, the company has launched a business app through which the customers can book the cabs at any moment. In spite of such technological innovations ad unique business ideas, the company needs to understand the external market demands as well as the competition. This marketing plan is thus developed with a clear focus of the objectives and necessary segmentation to make this business quite opportunistic and profitable.

Marketing and Financial Objectives

The major focus of the business is to make the daily transportation available to the customers with the preferable, easier, and innovative solutions. In Australia, people are quite occupied with their busy lives and identifying the quicker way to travel without the hazards (Sinapuelas, Wang & Bohlmann, 2015). This innovative app provides the customers opportunity to book cab at any point of time. Moreover, the customers are even more likely using their mobile device and digital mediums to make quick contacts. This innovative app is quite beneficial in making the cab booking purposes more frequent and easier. The demands of market to access the innovative digital technologies are quite favorable for the businesses (Zheng et al., 2015). However, the direct market competition with Uber is quite challenging for the business. The business thus needs to develop more suitable and easy-to-access technologies would attract more number of customers.

The business is mainly targeting the business officials who take taxi for their daily commutes. In addition to this, the target market eve includes young college or university goers as well as the old age customers as well. The tech-savvy people would be much interested in accessing this app whenever they need any transportation. In order to live the faster live, they usually take the support of the digital means. Hence, the business can target these specific customers segments for this cab booking app.

Uber app has the dominant market in this industry. It assesses the internal strength and weakness and identifies the external threats and opportunities to structure the business functions. Ingigo also requires concentrating on the target market segments and the market competition to develop the position of the business. Both the urban and rural areas would be targeted from where people can get the easy access to the internet to book the app. The middle class and upper middle class customers would be targeted for availing such cabs as per their convenience.

Ingigo Company is looking forward to create the strong position in online cab booking market in Australia. Considering the market competition the company will look forward to achieve these three marketing objectives.

• To establish the digital communication for the promotional aspects after service
• To acquire a strong market base within the next 6 months of launching the service
• To develop the greater brand image my offering suitable discounts in the first right of the cab

Table 1: SMART Objectives

Identifying the market opportunities, the business requires developing the appropriate financial objectives in a much specific way. It has been observed that the identified market segment is quite favorable for the business to grow. Based on such opportunity, the following financial objectives can be determined.

• To achieve 10% of the total benefits in the first year of this service
• To offer 50% discounts in every first right of the user
• To estimate 50% of the profit return on investment in the first year of the service

These specific financial objectives depend on the appropriate budget allocation on the promotional strategy of the business. It would create awareness among the users and ensure the high profits in future.

Marketing mix strategy is developed to influence consumer purchase behaviour to avail any particular product or service that is new to market. Marketing mix helps in placing the right product in a proper place within a stipulated time by scheduling the correct price (Schivinski & Dabrowski, 2015). Ingigo Company also requires developing the concerns regarding the price, promotion, product, and the place while introducing this cab booking service to the Australian customers (Ingogo.com.au, 2018). Based on such observation the appropriate marketing strategy will be developed by the company.

• Product

Selecting the right product or service is the first element of Marketing Mix. According to Ganapathy (2017), it is necessary to understand the right product or service that can attract a larger number of consumers. Similarly, Ingigo is introducing the online cab booking app for the business professionals in Australia, who prefer taxi for their daily commutes. The service would be easily accessible through their mobile devices. The online app receives the request for free taxi booking services for the customers through innovative technique is quite appreciable since they try to get easier and quicker access to their daily commutes (Kumar & Kumar, 2016). The GPS enabled cab booking system offer free flat reasonable rates for each ride. Guaranteed commutes will be provided to the customers. The passengers would receive the facility to earn extra points if the driver fails to reach to the location within the scheduled time after the booking is done. This service develops the various initiatives, business opportunities, identifies the probable limitations, and ensures the scope of growth for the future prospects.

• Place

Business marketers need to identify the right place where the target customers would be more interested in availing the product or services (Nath et al., 2017). In order to offer this instant taxi booking service, the company needs to target the urban, rural, and office areas where the location tracking would be easier. The customers can book the taxi by surfing the app and suggest the suitable location to the drivers to pick up and drop.

• Price

Structuring the appropriate pricing strategy is another most important element of marketing mix. It is essential for the business to identify the competitive pricing strategy that would attract the users and make profits as well. Ingigo has set the fixed price rates for the taxi rides, which is quite beneficial for the business. However, in order to spread more brand awareness and develop the promotions, the company can offer free discounts to the first ride of the users. It would be effective enough to attract the riders towards the service.

• Promotions

Promotional process is a key to develop brand awareness in a competitive market. It is important to identify the appropriate promotional technique that can help in attracting customers towards availing the service of products. Similarly, Ingigo can adopt the social media promotional strategy to make people aware of this instant taxi booking app. the promotions through digital communication, such as TV radio as well as the online medium would be much helpful in such context. Using social media for the promotional tool would help the company to acquire more customer base in a cost effective way. Apart from this, the company can even use pay per click advertising, public relations, and ‘word of mouth’ for attracting more customers towards availing this service (Westwood, 2016). However, it is necessary to develop the attractive contents the influence the positive state of mind of the target customers. A well-informed website would be helpful to make the customers easier to book the cab and customize their searches.

After observing the market opportunities, it is essential to identify the appropriate marketing strategy that can ensure more benefits for the company. Ingigo can develop several specific marketing strategies, which would be quite beneficial for the users as well. The users can get more points if the drivers fail to reach to the location at the right time. These points would be added as the discount prices while availing the taxi facilities.  Another strategy can be implemented to develop more customer base. The company can provide the referral bonus to the customers who will invite others to install the app and book the cab. The destination of the user should be customized as per their convenience (Motala, 2016). The user can lodge a complaint or share their feedback through online sources. It would generate the sense of Reliability which is beneficial for the company for the long run.

Ingigo requires concentrating on the appropriate elements for promoting the services. The budget allocated for the promotional process is structured below:

Table 2: Budget for Promotion Mix

(Source: Created by the Author)

Conclusion

The study develops a clear and concise marketing plan for Ingigo online cab booking services.  This innovative ideas implemented by the company by considering the requirements of the instant cab booking in a faster way and using the mobile devices. The company is targeting business professionals, young college and university goers, and old people, who are more likely using taxis for their daily commutes. The identified situation for the business market ensure that the targeted customers like to get quick access to the taxi facilities since they are quite busy in their professional or education and lives. The company faces direct competition with Uber, which has established their dominant position in the Australian market. However, developing a complete assessment helped the business in identifying the appropriate market segment and positioning to develop strengthened position in this competitive Australian market. This marketing plan develops a structured marketing mix, which helps in preparing the appropriate marketing strategies for the business. Implementation of these marketing strategies would help the business together more customers towards availing this service. Offering more discounts and innovative use of the technological act would help the company together more responses from the customers. Finally, the appropriate budget allocation is providing the insight about the capital resources that are needed to be invested for the promotional purposes.

References

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Ganapathy, V. (2017). Urban mobility in the era of sharing economy: An empirical study of Smartphone app based Ride sourcing services. Journal of Global Economy, 13(4), 268-289.

Grubb, B. (2014). Taxi app Ingogo pulls online receipts after customer shows how thousands can be accessed. Available from https://www.smh.com.au/technology/taxi-app-ingogo-pulls  online-receipts-after-customer-shows-how-thousands-can-be-accessed-20140506-zr5fj.html Accessed on 14 May 2018.

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Ingogo.com.au, (2018). Why Ingogo Fixed Fares are Your Best Option for Taxi Travel. Available from https://www.ingogo.com.au/blog/ingogo-fixed-fares-best-option-taxi-travel/ Accessed on 14 May 2018.

Kumar, P. K., & Kumar, N. R. (2016). A Study on Factors Influencing the Consumers in Selection of Cab Services. International Journal of Social Science and Humanities Research, 4(3), 558-560.

Motala, M. (2016). The” Taxi Cab Problem” Revisited: Law and Ubernomics in the Sharing Economy. Banking & Finance Law Review, 31(3), 467.

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Schivinski, B., & Dabrowski, D. (2015). The impact of brand communication on brand equity through Facebook. Journal of Research in Interactive Marketing, 9(1), 31-53.

Siguaw, J. A., & Simpson, P. M. (2015). A marketing plan for marketing instruction: A satirical look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133). Springer, Cham.

Sinapuelas, I. C. S., Wang, H. M. D., & Bohlmann, J. D. (2015). The interplay of innovation, brand, and marketing mix variables in line extensions. Journal of the Academy of Marketing Science, 43(5), 558-573.

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