10 Step Marketing Plan for Uber

1. 1
10 STEP
Marketing Plan for
Kenneth O. Sychingping
November 2014

2. This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
Disclaimer

3. 1. Uber’s guests are the VIP’s
2. Convenience, Security and Comfort
3. Taxis and Car Services are the rivals
4. Uber is the “rich” choice
5. Big pie but a small slice
Uber-rated or Uber-
convenient?

4. 6. Fine cars at your fingers
7. Money’s no option
8. Physical and Virtual Word of Mouth
9. Anywhere and Everywhere
10.Uber differentiates
Uber-rated or Uber-
convenient?

5. 1. Who are the VIP's?
41-50 years old, social classes A and B
Businessmen and Executives
Foreign guests not comfortable going
around a developing country
Late night, rush hour, Friday payday

6. 2. VIP wants, VIP gets
Basic need is dependent on the purpose
of transport (Social if to a party,
physiological if to a restaurant, etc.)
But biggest need is Security
Wants fast, comfortable, convenient,
safe, friendly drivers
Demands on-time pickup, smooth ride,
nice vehicle, nice interior

7. Maslow's Hierarchy
7
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th
ed, Philip Kotler

8. 3. We are the best, but who
are the rest?
Direct: Easy Taxi, Grab Taxi, Hertz,
Click, Airport Taxi, Taxi Flagging
Indirect: Walking, Commute, Own Car
Variables: privacy, safety, smoothness
of trip, friendliness of driver, price,
convenience of pickup, speed, exterior
look of vehicle, interior ambiance of
vehicle

9. Ordering Ease vs Car Type
Ordering Ease/Car Type Private Car Taxis
Apps Uber Easy Taxi, Grab Taxi
Traditional Methods Hertz, Click, Integrate MGE, Ryo Aki

10. Value-added vs Brand
VALUE-
ADDED
Uber Grab
Taxi
Easy
Taxi
Hertz Click Integr
ate
MGM Ryo
Aki
Order through
App
X X X
Nice Exterior X X X X
Nice Interior X X X X
High Security X X X X
Relatively
Cheap
X X X X

11. 4. Uber is the “rich” choice
Stories of rude and criminal taxi drivers are now
common, even with Grab Taxi and Easy Taxi
Even if money is not a concern, there was a
lack of an ultra-safe AND ultra-convenient
choice before Uber
Uber is where every passenger is a VIP

12. 5. The transportation market
in the Metro is significant
P44
B
Transport Service
Expense in NCR
*All Data based from the 2012 FIES Survey
P1
7B
Transport Service Expense
in NCR of the 9th
and 10th
Decile
Computed from 39% as it is the percentage of
transportation service expenses of the 9th
and
10th
decile compared to the whole Philippines

13. Creatively estimating Market
Share
Considered using download number
to compare Easy Taxi, Grab Taxi
and Uber app downloads for
market share
However, all 3 are global brands so
cannot segregate Philippine
downloads from the rest of the
world
X
So will use Facebook likes as
estimate of market share:
all 3 brands has its own
Philippine-specific page.
Popularity = Estimate of
Market Share

14. Uber’s market share is small
BRAND FB Likes
UBER 29
Grabtaxi 190,000
Easy Taxi 760,000
Ryo Aki taxi 180
Hertz car service 480
Intuitively, traditional flagging of taxi (no apps) would have
the largest market share- est. 90%

15. 6. Uber's product is a mix
The App
The Car
The Interior
The Service

16. Competitions are less
luxurious

17. Uber is the premium
product of the industry
Card Payment
Order
Anywhere
Nicer Cars
Personal Chauffeur
Comfortable Interior

18. 7. Uber customers pay a
premium
NORMAL
TAXI
GRAB
TAXI
EASY
TAXI
AIRPORT
TAXI
UBER CLICK
Flag Down P40.00 P110.00 P110.00 P70.00 P90.00
Per Minute P1.75 P1.75 P1.75 P2.00 P2.10
Per
Kilometer
P11.67 P11.67 P11.67 P13.33 P12.92
Per Hour P340-
P450
Ayala-NAIA
(est.)
P170.00 P210.00 P210.00 P220.00 P240.00 P900
(FIXED)

19. 8. Uber mostly rely on
physical and virtual WoM

20. Uber is not very aggressive
in promotions
Online comments defending Uber
Referral Credits
Physical Word of Mouth
Video/Online Reviews

21. Easy Taxi is a more
aggressive promoter
Mall Booths
Brochures
Partnerships Discount promos
EventsParties Raffles
Online Presence

22. 9. VIP's can order
anywhere
UBER has no physical Place/Location
Online means anywhere within MM

23. 10. Uber differentiates from
the competition
Higher Cost
but
Added premium not found in others