Task Description
Ingogo is a taxi based application which operates in Sydney (Ingogo.com, 2018). The company is one of the growing application developers in the given country and is outperforming its competitors like Uber. The given application is a mobile application which was found in 2011. As the customer and the driver are put in direct contact with one another, the service quality improves greatly (Armstrong et al., 2015). The primary purpose of the given report is to ensure that the marketing plan of the given company is set after analyzing the various parameters of the external environment. A marketing strategy will be presented along with other supporting documents like a budget.
The PESTLE Analysis of the market opportunities available to Ingogo have been summarized as follows:
The various factors available in the external environment have been given as follows:
Political
- The license rules of the driver
- The taxation policy which has been adopted by the government
Economical
- The prices and the purchasing power of the different members of the economy
- The payment options that are popular in the given environment
Socio Cultural
- The application is very easy to use
- Provides better experience than its competitors
Technological
- Can be accessed with the help of mobile as well as the Computer
- Linked to Google maps for easy navigation
Legal
- Wages policy of the different employees
- The application is banned in a few countries due to restrictions
Environmental
Fuel usage is a cause of concern
Increased traffic can cause issues.
The SWOT Analysis with respect the given business has been provided as follows:
Strengths
- There is a presence of various payment options and a set pricing option
- Tracking facilities available along with easy platform available on Android as well as IOS.
Weakness
- The given application is not applicable with the Windows phones
- The driver earnings are quite low (Poo & Lopez, 2018).
Opportunities
- Additional services like Uber Eats offered by Uber can be adopted by Ingogo
- The company can expand in markets, outside of Australia.
Threats
- Competitor presence is quite high like 13Cabs, Uber and Go Catch
- The Ingogo charges prices higher than competitors
The problem statement is to identify better opportunities for the firm with respect expansion of the operations in various parts of Australia. The aim also lies in creating awareness among the different customers with regard to the offering. Hence, the market shall be analyzed so that the Problem statement is identified easily and a solution is sought after.
The problem statement aims to analyze the performance of the company in various aspects and the opportunities that lie in the external realm of the market can be dealt with easily. Hence, the problem being referred to here is the case of a situation whereby the company wants to spread its operations outside of the country it is operating in.
Market segments make it easier for an organization to identify the markets which it is required to serve (Durkin, 2015). Once a company is able to clearly understand what type are the crowd and their respective needs, it can perform well. Once the target market is clearly identified it becomes easier for the firm to plan for state goes that might possess the capability to attract the audience so selected.
From the SWOT analysis conducted the given segments have been identified:
In order to state simply, the company can easily target all the age groups ranging from the age 15 to 70 (Gunning, 1996). However for convenience the potential target market has been divided into three sections
PESTLE Analysis of Market Opportunities
Demographic:
Age: 15-25
Income level: AUD 10000 per annum
Psychographic: The given set of customers must be having a luxurious lifestyle and must be comfortable in making use of a an expensive taxi based application (Trainor et al., 2014)
Geographic: Located in the urban or the sub urban areas for convenience (Khodakarami & Chan, 2014).
Behavioral the brand loyalty is high as they believe in quality services.
Demographic:
Age: 25-50
Income level: AUD 25000 per annum
Psychographic: The given segment earns well and hence can take this expensive transportation system. They must have a well to do lifestyle
Geographic: Urban or sub urban areas for convenience
Behavioral- High brand loyalty and convenience
Age group: 51-70
Income level: AUD 20000 PER annum
Psychographic: The given segment is old to make use of public transportation and thus, they can use the given application based taxi booking company to add convenience to their travels
Demographics: Urban areas or sub urban locations
Behavioral: Loyalty is high
Therefore from the given analysis, it can be stated that the given firm targets people living in mostly the Urban and Sub urban areas that have a good earning capacity and like to travel hassle free and prioritize convenience (Ahmadi & Wheatley, 2016). The company has offers which might be suitable for the given segments which would go a long way in helping the firm to attract larger consumer share and possess a larger market share (Dockalikova, 2014).
The given company wants to position itself in the different segments as follows:
Target Market One
Positing statement: Ingogo aspires to provide hassle free services to its customers. Come avail Ingogo`s special deals for students and young professionals and get to experience the valued service.
Explanation: The given positioning statement was aimed towards attracting the younger audience and inducing them to indulge in the services of the company (Keller & Kotler, 2016). Through the given statement, the company aims to relate to the younger audience who has been attending college or working. The statement aims to tell them that the company has various offers for their age group and with it they will be able to experience a unique offering (Yuksel, 2012).
Target Market Two
Position statement: Ingogo provides timely services to the customers. Easy to book and low on pocket, the service is guaranteed to be good.
Explanation
Using the given positioning statement the company aims to attract the second segment. According t the analysis, the second segment mostly makes use of the given services to reach on time to their workplace or other places of commitment Hence, by offering on time services, the company aims to attract the given segment, Furthermore with its normal pricing facility it will be able to attract a larger crowd (Hollensen, 2015).
SWOT Analysis
Target Market Three
Statement: Ingogo is a safe application with friendly drivers who understand the needs of the consumer and help in reaching to the destination on time and hassle free services
Explanation: As the people belonging to the older age group, safety becomes a great concern. It is for this reason that the company aims to target the safety aspect and offer the older segment with a guarantee that Ingogo cabs are safe and easy to use (Cramer & Krueger, 2016). The drivers have been well trained and it is due to this that the older people would not face any problems with respect to the travel. Furthermore, the application directly connects the driver to the user which removes any hassle. The application has an easy to use interface which is beneficial for those who are not that technologically comfortable (Gronroos, 2016).
- To increase the awareness of the services being offered
Ingogo aims to make the different target market of the customers more aware about the goods being offered. Hence, it is for this reason that the company aims to spread knowledge about the given product.
- To increase turnover
The objective of Ingogo also aims to increase the turnover of the business (Petrie, 2015). The company aims to ensure that through this campaign they are successfully able to attract a larger crowd which will in turn assist the organization in achieving its turnover targets
- To increase the number of rides which will be taken
It aims to increase the number of rides which will be taken. This means that the organization wants to increase the usage of its product (Sheth & Sisodia, 2015).
- To increase the profit of the company
An increase in the revenue and turnover of the firm means that the firm will be able to achieve its financial targets successfully.
- To earn revenue of AUD 500000 in the first year and increase this revenue by 20% in the years which are following.
The company aims to expand its operations and in relation to this it wants to earn revenue of AUD 500000 in the first year which will then be followed by an increase in the revenue every year.
- To achieve a ROI of 5% for the firm
The firm has set a target for itself to achieve target of 5% bonus in its first year of its operations.
The given objectives and targets are generally set this way because the company wants to ensure that it has a well defined track at
The marketing strategy is as follows;
- Informing customers of the products being sold
The primary strategy of the given company is to make the product and services of the firm more popular in the eyes of the customers. By doing so the company is strategically aiming towards achieving a higher growth rate and ensuring that it earns higher revenues
- Inform the customers of the additional services and offers
Identification of Market Segments
Ingogo feels that the customers are not that aware of the premium services which are being offered by the firm, hence through the given marketing Plan, the firm wants to spread ideas and knowledge about the products
- Using techniques like digital media advertising and modern technology to create awareness
Furthermore, the company plans to use the modern techniques like digital media advertising techniques and virtual reality to promote its products so that the customers are able to witness high end services.
Marketing Mix of Ingogo
Product
The company offers people an option to ride using taxis booked by using website applications and mobile applications as well. The Ingogo Taxi service has made transportation very convenient in Australia and has provided the different segments by making transportation more comfortable and accessible. Car pooling and WiFi enabled cabs are also available. The company offers different kinds of cars to the customer like Go, Moto , Hire and others.
Place
At present Ingogo is operating in certain states in Australia. The tax facility is presently available in urban and sub urban areas. The company is planning to go international.
Pricing
Ingogo has various competitors in the industry and as it provides comfortable service to the consumers on an hourly and trip basis which makes the best use. People around Australia were looking for various cab services which were an alternate to the local taxis and provide various from local transportation (Goetsch & Davis, 2014). The pricing strategy was followed by Ingogo in order to ensure that its pricing strategy is at par with the other competitors present in the given industry. Furthermore, the company also makes use of penetration pricing . The pricing technique plays a crucial role as it helps in determination of the various policies with respect to the grabbing of the target market. Different services by Ingogo follow different pricing strategies. The larger cars have a higher price structure than the ones who are smaller in size.
Promotion
The promotional technique as used by the firm includes techniques like social media marketing and creation of loyal customers by offering them premium ride services. The customers are offered free rides, benefit referrals and discounted rides. The quality attracts the customers and they are lured to take in more rides.
The implementation and control of the marketing plan refers to actions and measurements which are generally used to measure the effectiveness of the marketing plans that have been formed for the benefit of the given enterprise (Jacquet, 2018).
Target Market Positioning Statements
The implementation plan of the company`s marketing plan plays a key role in determining the success of the organization and measures is effectiveness as well.
|
Component |
cost |
time |
KPI |
objective |
|
Market Identification |
AUD 30000 |
4 Months |
demographic analysis, status, attrition |
To attract the right market towards the usage of the services |
|
Promotional Strategy |
AUD 82580 |
4 Months |
new customer acquisition, sales by region, |
To gain the maximum response and crowd |
|
determination of the customer feedback |
AUD2500 |
Continuous |
customer satisfaction and retention |
To ensure the customers are served well. |
|
customer service |
AUD 2000 |
Continuous |
complaint tickets raised |
To ensure minimum complaints are received. |
The given table shows the four different processes in which the given marketing plan shall measure its effectiveness. The given plan divides the program into four stages like Market identification, strategy; feedback and service have been chosen (Baker & Saren, 2016). The costs associated, time frame involved, Objectives of the four stages and the Key Performing standards have been provided.
The promotional techniques to be adopted will include a range of activities like:
- Print Media advertising
- Online advertising
- Social Media Advertising (Qian & Ukkusuri, 2017).
- Content advertising
- Public Relations
- Local Marketing
- National Marketing
- Market Research
- Sales campaign
Each of these campaigns will aim to improve the operations of the organization thereby help in achievement of the objectives (Foxall, 2014). The budget has been provided
|
CAMPAIGN TYPE |
QTY |
PROJECTED COST PER UNIT |
PROJECTED SUBTOTAL |
|
|
National Marketing |
SUBTOTAL |
AUD 2,500.00 |
||
|
Banner Ads |
5 |
AUD 500.00 |
AUD 2,500.00 |
|
|
AUD – |
||||
|
AUD – |
||||
|
Local Marketing |
SUBTOTAL |
AUD 6,000.00 |
||
|
Newspaper |
5 |
AUD 600.00 |
AUD 3,000.00 |
|
|
In-Store Marketing |
5 |
AUD 400.00 |
AUD 2,000.00 |
|
|
POP |
2 |
AUD 500.00 |
AUD 1,000.00 |
|
|
AUD – |
||||
|
Public Relations |
SUBTOTAL |
AUD 1,000.00 |
||
|
Public Events |
AUD – |
|||
|
Sponsorships |
AUD – |
|||
|
Press Releases |
10 |
AUD 100.00 |
AUD 1,000.00 |
|
|
Webinars |
AUD – |
|||
|
Conferences |
AUD – |
|||
|
Client Events |
AUD – |
|||
|
AUD – |
||||
|
Content Marketing |
SUBTOTAL |
AUD18,000.00 |
||
|
Sponsored Content |
AUD – |
|||
|
Landing Page |
15 |
AUD 1,200.00 |
AUD 18,000.00 |
|
|
White Papers / ebooks |
AUD – |
|||
|
AUD – |
||||
|
Social Media |
SUBTOTAL |
AUD 8,000.00 |
||
|
|
20 |
AUD 100.00 |
AUD 2,000.00 |
|
|
|
20 |
AUD 100.00 |
AUD 2,000.00 |
|
|
|
20 |
AUD 100.00 |
AUD 2,000.00 |
|
|
|
10 |
AUD 100.00 |
AUD 1,000.00 |
|
|
Google+ |
5 |
AUD 100.00 |
AUD 500.00 |
|
|
|
5 |
AUD 100.00 |
AUD 500.00 |
|
|
Online |
SUBTOTAL |
AUD 5,000.00 |
||
|
Blog |
5 |
AUD 800.00 |
AUD 4,000.00 |
|
|
Website |
AUD – |
|||
|
Mobile App |
AUD – |
|||
|
Mobile Alerts |
10 |
AUD 100.00 |
AUD 1,000.00 |
|
|
Email Newsletter |
AUD – |
|||
|
AUD – |
||||
|
Advertising |
SUBTOTAL |
AUD12,550.00 |
||
|
Online |
4 |
AUD 2,500.00 |
AUD 10,000.00 |
|
|
|
3 |
AUD 850.00 |
AUD 2,550.00 |
|
|
Outdoor |
AUD – |
|||
|
Radio |
AUD – |
|||
|
Television |
AUD – |
|||
|
AUD – |
||||
|
AUD – |
||||
|
Web |
SUBTOTAL |
AUD 7,400.00 |
||
|
Development |
1 |
AUD 6,400.00 |
AUD 6,400.00 |
|
|
Pay-Per-Click Marketing |
1 |
AUD 1,000.00 |
AUD 1,000.00 |
|
|
SEO |
AUD – |
|||
|
AUD – |
||||
|
AUD – |
||||
|
Market Research |
SUBTOTAL |
AUD 6,800.00 |
||
|
Surveys |
6 |
AUD 800.00 |
AUD 4,800.00 |
|
|
Impact Studies |
2 |
AUD 1,000.00 |
AUD 2,000.00 |
|
|
AUD – |
||||
|
Sales Campaigns |
SUBTOTAL |
AUD11,900.00 |
||
|
Campaign A |
1 |
AUD 5,900.00 |
AUD 5,900.00 |
|
|
Campaign B |
1 |
AUD 6,000.00 |
AUD 6,000.00 |
|
|
Campaign C |
AUD – |
|||
|
Campaign D |
AUD – |
|||
|
Campaign E |
AUD – |
|||
|
AUD – |
||||
|
Other |
SUBTOTAL |
AUD 3,330.00 |
||
|
Premiums |
3 |
AUD 780.00 |
AUD 2,340.00 |
|
|
Corporate Branding |
AUD – |
|||
|
Business Cards |
18 |
AUD 55.00 |
AUD 990.00 |
|
|
Signage |
AUD – |
|||
|
AUD – |
||||
|
Total |
AUD 82,480.00 |
Conclusion
Therefore, from the given analysis it can be stated that the given marketing plan aims to ensure that the company objectives of making its products more popular and ensuing wider sales are achieved. The report has briefly introduced the background followed by the situational analysis. The target market for the different campaigns of the firm was identified and their positioning statement was stated. The objectives along with the implementation of the strategy were identified followed by the promotional mix
References
Ahmadi, M., & Wheatley, K. (2016). A SWOT Analysis of Big Data. Journal of Education for Business, 91(5), 1-6.
Armstrong, G., Kotler, P., Harker, M. & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Baker, M.J. & Saren, M. eds., (2016). Marketing theory: a student text. Sage.
Cramer, J., & Krueger, A. B. (2016). Disruptive Change in the Taxi Business: The Case of Uber. American Economic Review, 106(5), 177-182.
Dockalikova, I. (2014). MCDM Methods in Practice: Determining the Significance of PESTEL Analysis Criteria. Proceedings of The European Conference On Management, Leadership & Governance, 418-427.
Durkin, P. (2015). Taxi war hits the streets as GOCATCH grabs for hailing revenue. Brw, 2.
Foxall, G. ( 2014). Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Goetsch, D.L. & Davis, S.B. ( 2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Gronroos, C. ( 2016). Service Management & Marketing: Managing the Service Profit Logic. John Wiley & Sons.
Gunning, R. (1996). National Competition Policy and the Australian Taxi Industry. Australian Journal of Public Administration, 55(2), 94.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education Limited.
Ingogo.com (2018). Ingogo.com. [online] Available at: https://www.ingogo.com.au/ [Accessed 11 May.. 2018].
Jacquet, A. (2018). A Power Struggle in the Taxi Industry: A Challenge for Uber and Lyft Regarding their Service Clauses. PM World Journal, 7(2), 1-16.
Keller, K.L. & Kotler, P. (2016). Marketing management. Pearson.
Khodakarami, F. & Chan, Y.E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Petrie, H. (2015). Book your taxi with fixed fare online or using the INGOGO app. Retrieved March 27, 2018, from https://www.ingogo.com.au/.
Poo, F. M., & Lopez, S. S. (2018). The Taxi Industry: Working Conditions and Health of Drivers, A Literature Review. Transport Reviews, 38(3), 394-411.
Qian, X., & Ukkusuri, S. V. (2017). Taxi Market Equilibrium with Third-party Hailing Service. Transportation Research: Part B, 10043-63.
Sheth, J.N. & Sisodia, R.S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Trainor, K.J., &zulis, J.M., Rapp, A. & Agnihotri, R., (2014). Social media technology usage & customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), pp.1201-1208.
Yuksel, I. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal of Business and Management, 7(24), 52
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