marketing plan assignment analyzing Ubers STP marketing strategy
Task: how to determine the success factors of the STP marketing strategy used by Uber using marketing plan assignment research techniques?
On this marketing plan assignmentit is observed that Uber is a global provider of transportation networks, based in San Francisco, California. Uber provides peer-to-peer carpooling, ride-service hailing, online food delivery, and a bicycle-sharing system, among other services. The purpose of the assignment is to analyzethe market mix and marketing strategies of Uber. Uber is a provider of ride-hailing services. Uber provides ride-hailing services and food delivery worldwide. Uber is the ease of conveyance in any place. Drivers use their own personal vehicles to transport passengers and are compensated based on a combination of time and distance traveled. In this competitive world, all organizationsmust produce an innovative product that they can serveanyway and customers prefer the product and the company will be inan achievable position. Thismarketing plan assignment report signifies the marketing plan of uber, an analysis of the STP strategy, an analysis of the marketing mix, an analysis of the relationship of the marketing strategy, and recommendations for the improvement of the marketing position of uber. The uber company uses various techniques for the innovation of their product. The company invent three products, these products are fast taxi service, smartphones, and new applications so that the company can provide their customer best service. If the customer likes the company and buys more and the company will be in a profitable stage. The purpose of this marketing plan assignment report is to collect data from both primary and secondary sources. Uber provides userswith fast delivery worldwide.
Overview of uber
Uber is a ride-hailing provider company established in the year of 2009 in California. Uber is a transportation type of company. the headquarter of the company is in San Francisco, California. Garret Camp and Travis Kalanick were the other founders of the company. The marketing plan assignment research shows the operation of uber started in the UK in the year of 2012 (Möhlmann and Henfridsson 2019). The number of the company is 08014782. Uber is a provider of ride-hailing andfood delivery companies. It is a transportation type of company. in some cities, Uber also offers a service called UberPool, which allows passengers to share rides and split the fare with other riders who are going in the same direction. Uber has been criticized for its surge pricing, which charges higher fares during periods of high demand.
The company offers transportation services, supermarket and other delivery service providers, as well as kitchens for food preparation. Transportation, Delivery, and Shipping are the three main operating divisions of the company (Collier, Dubal and Carter 2018). The term transportation sector describes goods that interconnect customers with transportationdrivers who offer rides in a range of vehicles, including cars, electric bikes, public transportation, and taxis. In the delivery sector, customers may find and order food from nearby restaurants, pick it up through the delivery process, and in some areas, they can also get groceries, alcoholic drinks, convenience store items, and other items.The marketing plan assignmentfindings also show the brand used innovative technology, well-known brand recognition, and extensive experience disrupting sectors, the freight sector connects customers and transporters on the Uber platform, gives transporters open, fair prices, and enables transporters to plan a shipment.
Every company must invent a unique product to survive in the market, and uber also inventeda unique app to enhance its services to the customer, and the customer will buy more from the company and the company may get regular customer and makes more profits. A company invented the product in transportation, fast delivery services, and technology services (Yunet al. 2020). Uber grants very easy facility services to the customer, the customer just has to download the uber app from google and book the uber cab just in a few seconds. Thus, marketing plan assignment illustrates how technology is very important for the company to enhance its business because customers have to book the uber cab from their smartphones. Uber first hitCalifornia.
Analysis of Uber STP Strategy:
marketing plan assignment- segmentation strategy:
The technique of segmenting a market involves breaking it up into groups with similar qualities. Uber used a combination of demographic and regional segmentation factors, which assisted the company in appropriately pricing its services.
The marketing plan assignmentalso shows Geographic and demographic segmentation are essential for Uber to understand which areas to target for customers willing to choose a "on-demand taxi service" above other transportation options (Gonçalves 2021). Uber is only available in urban regions where it has replaced taxis; it is not available in rural areas.
Uber's targeting strategy:
Uber uses a differentiating targeting strategy to determine the wallet share that each client contributes and how to upsell to customers to improve wallet size. The company can use the phrase "Cost based differentiation" to describe the kind of differentiation Uber employs (Wakhu and Bett 2019). When comparing Uber taxis to publicly accessible modes of transportation, there is a significant price benefit for the end user due to the very nature of the Uber business model.
Uber's differentiating strategy:
Another major element of the brand's competitive advantage identified on this marketing plan assignmentis distinctiveness based on technology.The fundamental facilitator of its services and a key component of its business model is technology.The Uber app is what connects passengers with cab drivers and gives them the option to pay for the ride and rate how convenient it was.Prior to the launch of Uber, it was more difficult to order a taxi and cost more money, and the wait time was longer (Frey, Trenz and Veit 2019).Now, a ride might be accessible within minutes of the booking, and the nearest cab available responds. Here, customer satisfaction plays a significant differentiating role for the company.Because of the increased level of convenience. It raises the quality of the service and gives the company a competitive edge as a result (Skok and Baker 2018).This is how the company has developed a competitive advantage by combining cost leadership with differentiation.
Uber's positioning strategy:
Uber has a user benefit-based and pricing positioning strategy to draw clients from various social classes (Baron 2018).Positioning based on the economy has a significant impact on customers' mindsets because daily travel is so expensive for them.
marketing plan assignment - Marketing mix
Marketing mix refers to the 4Ps in the company and the 4PS are product, price, place, and promotion (Rahman, Yuliati and Simanjuntak 2019). Uber uses the 4Ps to examine the segmentation and position of the company. the description of the 4Ps are as follows:
The main product of uber identified on this marketing plan assignment is the smartphone application, the application provides users with different applications to book a cab from Uber. Uber is very easy and fast delivery, customer just needs to download the applications from the google play store and book the cab. uber GO and uber x provide the facility to the customer single ride to the customer, this facility of the uber provides customer single riding without sharing a cab with anyone (Manavhela and Henama 2018). Uber taxi is one of the products of the company, uber taxi provides the customer to book a cab for the whole day so that the customer can travel anywhere on that day. uber eats, uber rush, and uber freight are other products of uber that are available in different countries. Uber also grants safety to the customer through the GPS, by using the GPS people can track the cab’s location. uber must provide the user best quality product so that users like them and buy more.
Uber sets the price by evaluating the customer, whether the customer is affordable or not to purchase the product. The price should be reasonable so that people can buy more. Uber sets different price strategiesfor the customer so that the customer can buy the desired product (Kwok, Tang and Yu 2020). Users can download the app from the google play store at any time and the registration of the app is free for everyone, there are no charges for downloading the application but the network is compulsory to download the app from the google play store. Uber uses a dynamic pricing algorithm that the fare of the cab may change rapidly from time to time (Dost et al. 2019)the marketing plan assignment findings show the company also uses the penetrative pricing strategy that the company provides customer with new products at the lowest cost to pay attention to the customer. In this strategy, the company provides first-time customers with a free ride. The company also provides new users with different discount coupons.
Uber first started in California in the year of 2009 and then it was launched in Paris in 2011. Users can buy the product means the user can book the cab from their smartphones in the application downloaded by the google play store and the IOS user can download the application apple store. Uber is also available in malls and airports also (Thabit and Raewf 2018). Uber gets rapid growth in different countries. Uber must know the environment of the product that the company will provide in accordance with environmental desires. Uber connects online to their customer so that the customer can book their cab online and pay online. The marketing plan assignment also affirms the main place of the company is an online platform.
Promotion totally depends on the customer, the customer will introduce the services to other users and uber will get more users, this is called promotion of the company. The promotion of the company is very important to enhance its profitability and market position. Through promotion, the company is able to achieve the targeted goals (Lahtinen, Dietrich and Rundle-Thiele 2020). Uber uses the mouth marketing strategy which means the customer has an interest in the company’s product and it is reflected in their daily lives. At that time many users join the uber app for the rapid services. This is called promotion of the uber. The company is using different platforms for the promotion of the uber product. Advertising is a major part of the promotion of any company.
marketing plan assignment- relationship marketing strategy
The following seven steps can be used to characterize the company's marketing strategy:
1. EarlyAdoption: At first, the company relied on word-of-mouth advertising for promotion. It was aimed at the country's tech-savvy residents who frequently traveled or went to the office since they could easily adopt new technology (Min, So and Jeong 2021).The marketing plan assignment research shows Uber started giving them discounts, exclusive deals, and free rides as a way of rewarding them.These people developed into devoted clients and started to have an impact on others.This tactic helped them break into the international market.
2. Reference: Early adopters of Uber began to disseminate favourable word of the business. Uber then presented them with the referral bonuses (Thaichonet al. 2019). The new user would receive one free ride and the early adopter would receive some credit points if they could register new users. These credit points could be used to pay for Uber cab fares.
3. Rating: Both drivers and passengers can receive ratings using the Uber app. They were all more polite to one another as a result. A driver might receive more incentives the higher his rating becomes. A passenger would receive higher offers, though, if they had received positive feedback from the drivers. The entire industry became courteous and polite as a result of this ranking system.
4. PhysiologicalMarketing:The Company also markets itself psychologically as per marketing plan assignment investigations. They have a variety of social media support groups. Every time the business launches a new product or service, they begin to celebrate it with songs, poems, or other creative works. It increases the company's appeal to the younger demographic. It keeps the business one-step ahead of its rivals.
5. AdvantagesofPartnership: Uber offers its devoted customers a variety of advantages. To do this, they collaborate with others (Casais, Fernandes and Sarmento 2020). They collaborated with numerous five-star hotels where devoted Uber users may pay with their credit points. Customers of Uber have the option to use Spotify to listen to their favorite music while driving.
6. Loyalty Advantages: The customers that rode 100 times for them, Uber provides a unique benefit plan. The best drivers would serve them. In addition, customers would receive a special discount.
7. Multiple Channel Service: Customers can make bookings with the company via the app. They also do so by using the internet. In addition, Facebook Messenger has tied with them. From there, clients can call a cab. The option to pay for fares via a mobile device is also available to customers. The new generation finds it simple to use Uber thanks to these advantages. All those features are absent from the standard cab service.
marketing plan assignment - Challenges
? The biggest issue with Uber is that it does not prioritize making money. Instead, it is focusing on displacing its rivals. As a result, there are several discounts and other deals. That raises the cost of operations while reducing the profit margin (Zhao and Su 2019). This aggressive marketing approach identified on this marketing plan assignment may help them gain their market share, but it also may cause investors to pull out. Uber must emphasize returns on investment if it wants to keep its investors interested in the business.
? Uber lacks a targeted expansion strategy. The company is now concentrating on self-driving cab technologies as well as the aviation and water transportation sectors. It costs them a lot. Additionally, they give loyal and other consumers a variety of discounts. As a result, they do not pursue a particular growth path. Their marketing approach is completely disjointed.
? Customers have the opportunity to use the app to report drivers who act inappropriately. However, it was frequently noted that the company acted rather slowly. The corporation occasionally did nothing. It makes the business less trustworthy.
? The company's next obstacle could be its operating costs. The Supreme Court stated in its ruling that the drivers ought to be regarded as firm workers (Daum 2021). They are not permitted to be viewed as independent contractors. It can compel the business to give the drivers a financial incentive. That can lower the business's earnings. On the other hand, the marketing plan assignmentobserves all earnings would be considered Uber's income if the company treated the drivers like independent contractors. It might make the company's tax burden heavier.
? The old drivers might cause the drivers a lot of trouble in areas where the traditional taxi service was formerly available. For them as well, it may occasionally be dangerous. Therefore, the corporation may have a problem persuading the drivers.
marketing plan assignment Recommendation
Increase focus on advertising and promotion:
In order to attract more customers, Uber should increase its focus on advertising and promotion. This could include investing in more traditional forms of advertising, such as television and radio commercials, as well as online advertising (King 2019). Additionally, Uber should consider sponsoring events and collaborating with other businesses to promote its services.
Create a more robust loyalty program:
Uber should consider creating a more robust loyalty program in order to encourage customers to continue using its services. This could include offering rewards for customers who use Uber frequently, such as discounts on rides or free credit. Additionally, Uber should make it easy for customers to sign up for and use the loyalty program.
Improve customer service:
In order to retain customers, Uber should improve its customer service. This could include ensuring that drivers are courteous and professional, responding quickly to customer inquiries, and offering flexible cancellation and refund policies.
? Uber can improve their marketing mix by increasing its advertising and promotions.
? Uber can also improve their marketing mix by offering more discounts and coupons to customers (Amico and Bekker 2019).
? Uber can improve their marketing mix by increasing its social media presence.
? Uber can improve their marketing mix by offering more personalized services to customers.
The marketing plan assignment report concludes the market strategy and market plan of the uber company. Uber company was first established in the year of 2009 in California. Uber company provides the user with ride-hailing and food delivery services. Uber uses many products such as uber taxi, uber go, and uber x. the company provides the user with a very affordable product so that the producer may purchase the product and introduces it to other users. The company invented many products that may attract people. uber solves many problems related to transportation. Uber provides transportation anywhere and anytime. People can easily book their cab through online platforms. Uber uses market strategies like penetration and dynamic pricing strategy that attracts customer more. The marketing plan assignment report analysis the uber STP strategy,Uber uses the market mix to examine the market segmentation and position of the company through the 4Ps. These 4Ps are product, pricing, place, and promotion. The report also concludes the analysis of the relationship market strategy of uber. The company sets the market strategy for the long-term goals of the company so that the company will be able to accomplish its targeted goals.But the company also faces some challenges during the market strategies such as not concentrating to remove their competitors, offering many discounts because of the competition, rudeness of drivers, and the operation cost are the major issue of uber. There are recommendations granted for the market strategy of uber on this marketing plan assignment to improve and solve the problems of uber and uber easily accomplishes its goals.
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