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10 Step Marketing Plan - UBER

10 Step Marketing Plan for Uber

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10 Step Marketing Plan - UBER

  1. 1. 1 10 STEP Marketing Plan for Kenneth O. Sychingping November 2014
  2. 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. 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. 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. 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. 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. 7. Maslow's Hierarchy 7 Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
  8. 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. 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. 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. 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. 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. 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. 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. 15. 6. Uber's product is a mix The App The Car The Interior The Service
  16. 16. Competitions are less luxurious
  17. 17. Uber is the premium product of the industry Card Payment Order Anywhere Nicer Cars Personal Chauffeur Comfortable Interior
  18. 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. 19. 8. Uber mostly rely on physical and virtual WoM
  20. 20. Uber is not very aggressive in promotions Online comments defending Uber Referral Credits Physical Word of Mouth Video/Online Reviews
  21. 21. Easy Taxi is a more aggressive promoter Mall Booths Brochures Partnerships Discount promos EventsParties Raffles Online Presence
  22. 22. 9. VIP's can order anywhere UBER has no physical Place/Location Online means anywhere within MM
  23. 23. 10. Uber differentiates from the competition Higher Cost but Added premium not found in others