Marketing Plan for Ingogo
Title page, table of contents, executive summary and introduction: – Includes a title page, table of contents and executive summary that are professionally written and organized. The executive summary contains the key points of the whole report in 3-5 paragraphs written in single page. Introduction section should provide background information of the product or service chosen in assessment 1. You can summarize the key information from assessment 1 in the introduction section. Specifically, you will be assessed on the following aspects:
- Executive summary
- Situation analysis recap
Discussion of the segmentation, targeting and positioning approach : A discussion on the potential customer segments for your product or service and which one(s) you wish to target with good justifications. Also, discuss the desired positioning for the product or service. Develop a clear positioning statement. Specifically, you will be assessed on the following aspects:
- Problem statement
- Discussion of potential market segment
- Discussion of target market and positioning
Set 3 marketing and 3 financial objectives : Provide realistic marketing and financial objectives. Specifically, you will be assessed on the following aspects:
- Marketing objectives and goals
- Financial objectives and goals
Formulation of a detailed marketing mix strategy: Should cover specifics of the product, price, promotion and place aspects. Specifically, you will be assessed on the following aspects:
- Marketing mix – how are they to be applied?
- Marketing strategy proposed implementation
Budget allocation for promotion mix : Should provide the media and budget allocation for each of the promotional mix elements and mapped against the objectives of the promotional mix elements. Put special emphasis on digital communications strategies.
Conclusion and reference: Includes a summary of the key points of the presentation. Provide a list of at least 15 (fifteen) citations and references of some published academic and research papers, textbooks and authentic Web sources. Referencing should follow the APA style.
Evidence of research: The quality and integration of research in the writeup to support key points. This should include theoretical and empirical research findings from a combination of academic journals and textbooks. Any website which is used to find statistical information is also considered as part of evidence of research but not part of academic journal or textbooks. Useful websites include Australian Bureau of Statistics, Austrade, CIA Factbook, Doing Business and any state or commonwealth authority websites.
Mechanics : Use of headings, sub headings, cohesion of paragraphs were of high quality. Grammar, spelling and punctuation are of exceptional standard.
The key idea of developing this report is to prepare a marketing plan for Ingogo Cab Company which is operating in Australia. The company is famous for providing cab services to the customers through the request by mobile app. The report provides the problems statement and prepares the marketing plan based on that. The report will provide the analysis of segmentation, targeting and positioning strategies of Ingogo. Along with this, the report will present marketing and financial objectives of the company. The report will also provide a detail of marketing mix for the company. Strategy implementation and budget allocation of promotion mix will also be given in this report. The report will provide a short conclusion providing some discussions done in the report.
In order to achieve success and growth in the business, it is important for every company to analyze the potential market and set the marketing goals and objectives effectively. Marketing plan is important to analyze the current market situation, opportunities and threats for the company and plan of actions (McDonald & Wilson, 2016). This report is a marketing plan for a cab service company named Ingogo operating in Australia. The company is providing cab facility to the customers based on mobile app network. Ingogo started its business operations in 2011 and now it is considered as famous cab service among the services. The company is operating its business by the mobile application by which customer can submit a trip request to the drives at the fixed rates. The company is providing high quality riding experience with various additional services to the customers (Grubb, 2014).
Situation analysis recap
Based on the SWOY analysis of Ingogo Company, it is observed and evaluated that the key strength of the company is its brand image. Ingogo is the well known brand in all over Australia. The company has large number of customer base due to its cost effective and efficient services. Ingogo has many vehicles to serve the customers at every destination. Along with this, the charges for the customers in Ingogo taxi is very low as compared to other traditional taxi so company has leading position among the customers (Adcock, 2010). In terms of weaknesses of Ingogo, the business model of the company is very easy and that can be copied by the competitors easily. Further, drivers are not loyal for the company due to lack of communication and this can create a big problem for the company. The business model of the company is unpredictable also. Along with this, due to lack of bonding, customers are also not loyal for the services of Ingogo taxi. Next, in terms of opportunities, the company has chance to attract large number of customers as other taxi companies are imposing high charges on the customers and making them dissatisfied. Along with this, Ingogo can expand its business in those areas where cab services are not available. This would be beneficial for the company to make profit as there are no proper services of cabs and taxies. Further, company has opportunity to reduce the cost by using electric vehicles. In case of threats for Ingogo, there are some new rules and regulations in Australia that can affect the business operations of Ingogo. There is the risk of fraud and scandals in the company due to increase of new drivers in the market. Further, introduction of various new technologies like self-driven cars can reduce the needs of the drivers.
In the transportation market of Australia, people are facing problems in going one place to another as available taxi companies are imposing high charges on the customers and making them dissatisfied. Along with this, metros are very crowded and local transportation companies are very inflexible with their pricing methods. So, the customers are seeking for an effective solution for travelling on daily basis. They need cost effective and affordable transportation vehicle by which they can travel on daily basis. Ingogo cab service is providing effective way for this problem by providing taxi mobile app by which customers can hire the taxi on the basis of distance.
Potential market segments
The consumer market for the Ingogo cab services is divided based on various segmentations. Those segmentations include demographic segmentation, geographic segmentation, behavior segmentation and psychographic segmentation.
Geographic segmentation : This type of segmentation can be done based on the geographical market in which the complete market will be divided on the basis of ease of access and availability of the products and services by the customers. Ingogo is providing its cab services by the mobile app and desktop website. Along with this, the company has its effective reach in the Australian market. The potential consumers of Ingogo cab will be those who want the taxi services in any area of Australia (Armstrong, Adam, Denize & Kotler, 2014).
Demographic segmentation: This second segmentation is based on the demographic segmentation in which the company will divide the market based on some factors i.e. age group of the customers. The potential customers of Ingogo are young generation under the age of 15 to 30. These customers are internet savvy and spend more time on the online platforms so they would be able to use the mobile app provided by Ingogo.
Psychographic segmentation: Third segmentation by the company will be done on the basis of psychographic factors of the consumers i.e. lifestyle and attitude of the consumers. There are various factors that affecting the consumers to avail the can or taxi services i.e. high quality riding experience, low fare charges, and minimum waiting time for the cab. These key factors impact on the profit of the cab services.
Behavioral segmentation: Last segmentation by the company will be done based on behavioral segmentation in which entire market will be divided on the basis of attitude and behavior of the consumers. It includes those people who want to travel safely with affordable prices. So, these are the potential consumers for Ingogo cab services (Wilson & Gilligan, 2012).
Target market positioning
Based on the segmentation of market, it is important to evaluate the most profitable segment for the company. It is also important for the company to target those segments that can enhance the profit of the business in future. For the effective targeting process, Ingogo will adopt some effective approaches and tactics that would be helpful in targeting the consumers in an effective way. For this manner, company will use differentiated markets strategy by which the services of the company will be differentiating with other cab agencies. Based on the strategies, target market of Ingogo cab services will be young generation under the age of 15 to 30. Along with this, people who want to go from one place to another without using public transport would be targeted by Ingogo. So, the target market of the company will include men, women along with youngsters and adults. People who want high quality riding experience, and low fare charges of cab services will be targeted by the company (Hundekar, 2010).
In order to achieve effective position of the services in the market, Ingogo needs to adopt some innovative strategies and tactics on the basis of attitude, behavior, lifestyle, accessibility and buying power of the consumers. In order to enhance the brand image of the company, an effective positioning statement is recommended. The proposed positioning statement for Ingogo is “For the consumers of all ages, specially men and mown with age of 18 to 25, Ingog is the most efficient, convenient and quickest way to travel from one place to another due to skilled and background checked drivers, user friendly mobile app and minimum wait of time.”
The marketing objective of Ingogo cab services are as follows:
- Key marketing objective of Ingogo is to operate and provide the cab services to the customers in Australia. Along with this, the objective of the company is to expand the can services in all over the Australian market.
- Further, second objective of the company is to customize and differentiate the range of services to the customers and enhance the brand image of the company in the local market and also develop a strong customer base in the company as compared to its competitors (Guiltinan, 2010).
- Third and most important marketing objective of the company is to target around one million driver partners in the upcoming years. Along with this, it also aims to make the use of innovative technology to dominate the Australian online cab market.
There are some financial goals of Ingogo cab service and that are as follows:
Profit maximization: One of the most important financial goals of Ingogo is to enhance and maximize the profit in the Australian market. By providing high quality riding experience to the customers, company will be able to have high level of revenue that can enhance the profit of the company.
Value enhancement: Although it is important for the company to enhance the profit and sales in order to operate the business in future but it is also important for the company to improve its value in the market. The value of the business can be improved with the help of stakeholder’s support, and effective relationships with the customers and drivers. With the effective shareholder’s value, the value of the company will be increased. Along with this, recognition of the cab services in the international market will automatically improve the value of the company (Levy, 2012).
Reduction of cost: Hiring of the cab drivers and creating mobile app and desktop website will incur high cots in business. The cost can be reduced by providing the lower cost services to the customers so that more customers will be targeted by the company. Along with this, effective financial planning for the cost and prices of the services would be helpful in enhancing the profit of the company.
Product: Ingogo will provide various options to the customers to ride on the various booked taxis by using mobile app and website. Along with this, the company will make the transportation services easily accessible and comfortable. Along with this, the company is providing fixed fares on rides in which all the tools and chares are included. The company will provide such services in which customers can book the taxi for up to 48 hours in advance. Basically, the objective of Ingogo is to be market leader in the cab services in Australia. The company will provide a mobile app which is the product in its marketing mix (Harding, Kandlikar & Gulati, 2016). Apart from this, company will provide various additional services to its customers. The services will be less expensive for the customers. Customers can book a cab or taxi for current or future. Users can also track their rides and estimate the arrival time of the cab (Ingogo, 2018).
Price: Ingogo will provide effective services in terms of air-conditioned and comfortable cars on the trip and hourly basis which make it the best mode of transportation. People in Australia are seeking for the alternative and Ingogo has provided them with one. For the customers, metros are very crowded and local transportation companies are very inflexible with their pricing methods. In such case, Ingogo should use penetration pricing method. By Ingogo, people are now able to access the services of Ingogo and travelling in peace. With the penetration pricing strategy, company would be to attract more number of customers for the cab services (Schindler, 2012). Company will provide the most comfortable rides to the customers on the cheapest rates as compared to other companies. Customers would be targeted with this pricing strategy and they are able to use the available options in cab services. Basically, Ingogo will impose affordable prices based on location because of diverse gap prices and number of available drivers in area. The mobile application will give exact pricing details before ride and confirm the trip (Sinfield, Calder, McConnell & Colson, 2011).
Place: Ingogo has transformed the way people to travel from one place to another i.e. travel to workplace and back home. It is comfortable, affordable and safer as compared to other mode of transport. Ingogo will operate in all over Australia and provide cab services to the customers. Further, Ingogo will operate with the internet based network. Any person can be the customer of Ingogo services by simply downloading Ingogo mobile app. Along with this, Ingogo will enhance the number of drivers to decrease waiting time for the passengers and surge rates in order to meet the needs of the consumers. This would be helpful for Ingogo to target a sustainable amount of customers with the increased efficiency (Vujic, Vasiljevic-Blagojevic, & Peric, 2014).
Promotion: Ingogo will basically promote its business by its website and mobile app. Along with this, the company will create lots of buzz by the differentiated services which will generate lots of publicity and word of mouth marketing. With the small budget, Ingogo will be engaged in the promotional and advertising process. For the promotional activities, Ingogo will focus on some areas. Major customers of Ingogo cab services are both men and women. These people spend lots of time on internet and online platforms (Kotler, Burton, Deans, Brown & Armstrong, 2015). So, Ingogo will use majority of social media platforms i.e. YouTube and Twitter, Google, Facebook and InstaGram. Along with this, the company will create mailing list and send the advertisements to the potential target customers. Further, free rides, referral benefits, discounted rides will also be provided to the customers so that they can be targeted effectively. Customers always seek for the quality riding experience and by this, Ingogo would be able generate more profit (Singh, 2012).
Marketing strategy Implementation
There are various methods by which Ingogo cab services will be able to implement the marketing strategies for the success of the business. Those implementation tactics are as follows:
Campaign on social media: In order to make the customers aware about the services, social media is the best medium. Company will start ad campaigns on social media which allow the company to reach all of the specified demographics on a specific day. The company will also direct people to its website with link ads (Chakravarthy & Coughlan, 2011).
Mobile app awareness: Through Facebook, company will make the customer aware about the mobile app. Building app awareness will include three process i.e. app discoverability, app engagement and app measurement and Facebook will provide solution for these three processes.
Targeting the right customers :Ingogo will focus on targeting specific audience. The company will segment its customers on the basis of gender and age and they access the application by mobile and their desktop. Along with this, company will also target people on the basis of location so that it can reach to the potential consumers in cities.
Media Advertising and promotions
- Print advertisements
Social media marketing
- Twitter and YouTube ads
- FaceBook campaigns
Based on the above analysis, it is analyzed that Ingogo is the well known brand in all over Australia. People are facing problems in going one place to another and in such condition, Ingogo cab service is providing effective way for this problem by providing taxi mobile app by which customers can hire the taxi on the basis of distance. Along with this, the charges for the customers in Ingogo taxi is very low as compared to other traditional taxi so company has leading position among the customers. Ingogo can expand its business in those areas where cab services are not available. Company can implement its marketing strategies by making the customer aware about the mobile app and social media campaigns.
Adcock, D. (2010). Marketing: Principles and practice. (4th). CA: Sage Publication
Armstrong, G., Adam, S., Denize, S. and Kotler, P., (2014). Principles of marketing. Pearson Australia.
Chakravarthy, B. and Coughlan, S. (2011). Emerging market strategy: innovating both products and delivery systems. Strategy & Leadership. 40(1). pp.27-32.
Grubb, B. (2014). Taxi app Ingogo pulls online receipts after customer shows how thousands can be accessed. Retrieved from https://www.smh.com.au/technology/taxi-app-ingogo-pulls-online-receipts-after-customer-shows-how-thousands-can-be-accessed-20140506-zr5fj.html
Guiltinan, J. (2010). Marketing Management: Strategies and programs. (5th). London: Chapman and Hall.
Harding, S., Kandlikar, M. and Gulati, S. (2016). Taxi apps, regulation, and the market for taxi journeys. Transportation Research Part A: Policy and Practice.88. pp.15-25.
Hundekar, S. (2010). Principles of marketing. Mumbai: Himalaya Pub. House.
Hundekar, S. (2010). Principles of marketing. Mumbai: Himalaya Pub. House.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., (2015). Marketing. Pearson Higher Education AU.
Levy, S. (2012). Marketing management and marketing research. Journal of Marketing Management. 28(1-2). Pp.8-13.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
Schindler, R. (2012). Pricing strategies. Calif.: Sage Publications, Inc.
Sinfield, J. V., Calder, E., McConnell, B. & Colson, S. (2011). Corporate Strategy: How to identity new business models. MITSloan Management Review.
Singh, M. (2012). Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business and Management, 3(6), 40-45.
Vujic, N., Vasiljevic-Blagojevic, M. and Peric, N. (2014). Analysis of the characteristics of taxi services as a prerequisite for their improvement. Marketing.45(3). pp.231-239.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.