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7/27/2019 Marketing Analysis Paper
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Table of contents
Situational Analyis 3
Market need
The product
Marketing environment 5
Microenvironment
Macroenvironment
SWOT analysis
Research implementation 13
Marketing Strategy 14
Segmentation
Targeting
Positioning
Differentiating
Marketing Mix 20
7 ps
Branding strategy 25
Growth Strategy 28
Summary 30
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SITUATIONAL ANALYSIS
The Market need
Many people find themselves waiting for a cab for more than an hour or the cab does
not arrive at all. This indicates that there is a huge gap in the transportation market
with regards to communication with passengers, this taxi smartphone application
found that gap and will fill it ensuring better value for both the passengers and cab
companies.
Here are some relevant market statistics:
Minibus taxis are responsible for 65% of the 2.5 Billion annual passenger trips
in urban areas.
Only about 26% of households in South Africa have access to a motor car.
According to the National Household Travel Survey (2003) at 108 cars per
1000 of the population, car ownership in South Africa remains in its infancy
(South Africa, 2012).
Mobile devices sales rose in 2011, with smartphones showing strongest
growth, Nokia remains the number one handset manufacturer, but android is
now the top smartphone operating system (Tarrant, 2011).
As of 30 June 2011, there were 3.7 million active smartphones on Vodacoms
South African network (Tarrant, 2011).
The Product
Click a Cab is a mobile smartphone application that matches passengers and
registered taxi drivers. This application will tell customers how close the nearest
drivers are to their location, passengers can then request a pickup. This application
will be available on all smartphones including Nokia smartphones in South Africa.
Click a Cab pinpoints the passengers current location and the way this app works
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is that it simply asks our database to provide a list of the registered taxi companies
for your current location. The taxi is then ordered by distance, size of cab required
and user ratings. When the driver is nearing arrival, the app will notify you that the
driver is close to your location. This app also allows the passenger to check where
the driver is and how close the driver is to the location. Once the service has been
completed customers will be asked to rate the driver and using that preference
measure, the app will know which driver to send for the next time the passenger
uses the application.
Click a Cab will create its revenue by charging a percentage commission on each
taxi fare that is processed via its booking application. This app is free for all
smartphone users; therefore making it cheaper to book cabs since airtime is not
required just internet access on your smartphone. It is quick, easy to use and cheap.
NO CALL, NO CHARGE, SIMPLE JUST CLICK A CAB. This application has many
benefits for both passengers and the taxi companies. Taxi companies will receive
greater revenue due to this app as it will increase their clientele base. Passengers
also benefit greatly from the use of this application; they will never have to wait for a
taxi again. This app finds the fastest taxi and offers passengers the best rated cabs
available. It is also safer using this application than booking a cab by yourself as this
app has each companies/drivers profile (where not part of a cab company),
including details about their license, name and number.
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Marketing Environment
In order for Click-a-Cab to be successful it needs to analyse all of the major
environmental factors that shape its opportunities, threats, weaknesses and
strengths. The following is an analysis of the both the micro and macro
environmental forces that will have a potential effect on the marketing strategy of
Click-a-Cab.
Micro-environment
The following are all the forces close to click-a-cab that affect its ability to serve its
customers (Tait, 2010) and build profitable relationships with targeted customers.
The firm
Click-a-Cabs aim is to provide a network in which both cab companies and
passengers benefit. Click-a-Cab has decided on the following mission statement,
aims and objectives and core values that it wants to uphold and achieve with regards
to targeted customers.
Mission statement
It is our mission to improve the efficiency of the Cab industry by providing a channel
through which customers and Cab companies can be connected in order to provide
and receive efficient, reliable and high quality Cab services and thus ensure the
delivery of high Customer value.
Aims and objectives
Click-a-Cab aims to:
Grow a profitable and successful business in South Africa
Provide a well known user friendly app that meets customer and Cab drivers
needs
Ensure our app has the competitive advantage by attaining a sizeable market
share of Cab drivers
Become one of the top 100 most used apps in South Africa
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Core Values
The core values of Click-a-cab are:
Enlistment of Quality cabs
Reliable Service
Excellent communication
Customer Satisfaction and
Innovative technology and Strategies
Core Capabilities
These are:
Efficient and user friendly technology
Software that provides the closest cab that fits the customers preference in
the given location
Software that has an integrated GPS that can reflect the customers location
and intended destination
Marketing Intermediaries
The intermediaries who will help Click a Cab to promote and distribute its services
include software virtual stores for smart phones such as the App store for apple
iPhones, App world for BlackBerrys, and Ovi store for Nokia smart phones. Also
travel websites which offer the app for download to interested patrons will also serve
as a marketing intermediary.
Customers
Click a Cab deals with the following types of customers:
Consumer markets: These are the people who will use Click a Cab to find
transportation for themselves. They will also use it to find information on the
types of cabs in the system and how they differ from each other since there
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will be information loaded on the app about the different cab companies
registered with the app.
Business markets: These are the cab companies that will use the app in order
to attract customers. The application is in a sense an input in the delivery of
their service. They make themselves available to the customers all the time
without the usual hassle to the customer of calling even when they dont have
airtime or are in crowded and noisy places.
Competitors
Firms which are very similar to Click a Cab in that they provide the same core benefit
and share the same market as Click a Cab are Taxirank and sacab. With Taxi rank
having enlisted companies like Rikkis, Unicab and SPORT (Taxirank, 2012) which
are generally more expensive and SACAB also offering relatively expensive rates at
R11/km during the day and R11.50/km after hours (sacab, 2011), Click a Cab has a
competitive advantage. Click-a-cab aims to enlist more affordable cabs such as
CabCo and Elite Taxis, on the database, along with the expensive cab companies
that cater to high end clientele. This will enable the firm to have access to a larger
share of the market. Both sacab and Taxi rank are aimed at higher income earners
while click-a-cab is aimed at lower, middle and upper income earners.
Figure 1
Publics
This refers to any group that has an actual or potential interest in or impact on an
organisations ability to achieve its objectives (Tait, 2010). The following are the
groups which are relevant to Click-a-Cab:
http://images.google.co.za/imgres?q=taxi+rank+logo&start=88&hl=en&rlz=1T4ADRA_enZA418ZA419&biw=1311&bih=517&tbm=isch&tbnid=2YLySyp6XtpeaM:&imgrefurl=https://www.2oceansviberadio.com/win-with-taxi-rank-and-2oceansvibe-radios-lunch-show/&docid=Puz5kp92v2DmaM&imgurl=https://www.2oceansviberadio.com/wp-content/themes/ov-radio/functions/timthumb.php?src=https://www.2oceansviberadio.com/wp-content/uploads/2012/01/taxi1.jpg&w=428&h=&zc=1&f=&w=428&h=275&ei=cymeT9HaNIKyhAf80e3ZDg&zoom=1&iact=rc&dur=1&sig=107979941072743321104&page=7&tbnh=149&tbnw=199&ndsp=15&ved=1t:429,r:6,s:88,i:18&tx=80&ty=92http://images.google.co.za/imgres?q=taxi+rank+logo&start=88&hl=en&rlz=1T4ADRA_enZA418ZA419&biw=1311&bih=517&tbm=isch&tbnid=2YLySyp6XtpeaM:&imgrefurl=https://www.2oceansviberadio.com/win-with-taxi-rank-and-2oceansvibe-radios-lunch-show/&docid=Puz5kp92v2DmaM&imgurl=https://www.2oceansviberadio.com/wp-content/themes/ov-radio/functions/timthumb.php?src=https://www.2oceansviberadio.com/wp-content/uploads/2012/01/taxi1.jpg&w=428&h=&zc=1&f=&w=428&h=275&ei=cymeT9HaNIKyhAf80e3ZDg&zoom=1&iact=rc&dur=1&sig=107979941072743321104&page=7&tbnh=149&tbnw=199&ndsp=15&ved=1t:429,r:6,s:88,i:18&tx=80&ty=927/27/2019 Marketing Analysis Paper
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Media Publics: These refer to newspapers, magazines (Tait, 2010) and
social networks like Facebook, twitter, blogs, and so on. They will spread
news, features and editorial opinions on the app. This will influence the
general publics perception of the app, hopefully creating positive hype about
the app and thus encouraging more people to use it.
General Publics: Answers concerning peoples attitude towards our service
provided are very important in assessing our current position (Tait, 2010).
This is because this will determine their decision to use or not use our app.
Click a Cab will have optional surveys on different aspects of the service
provided in order to get a general overview of the prevailing attitude and take
steps to alter it where necessary.
Internal Publics: Happier employees will work harder to create more exciting
and innovative features to add to the app. The necessary actions will be taken
to keep workers motivated and encourage them to feel good about the brand
in order to facilitate continuous production of state of the art technological
services and periodical improvements.
Macro-environment
The following are the larger societal forces that affect Click a Cabs micro-
environment (Tait, 2010) and as such its ability to deliver superior customer value
successfully.
Demographics
The middle and upper class of South Africa have both grown remarkably since 1994
(look for facts and ref). With this increase, an increase in car ownership is expected
resulting in increased congestion. Increased difficulty of finding parking spaces in
business districts is therefore expected. Hence, it follows that in the long run the
demand for meter taxis is expected to increase in urban areas especially amongst
the members of the corporate world that would need to commute mainly within the
areas that are to be most affected by the increased congestion; urban business
districts.
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Figure 2 above depicts the growth in middle income bracket by comparing 1994,
2000 and 2010 distribution of the population distribution according to the living
standards measure (LSM) which was developed by the South African Advertising
Research Foundation. This growth is evidenced by the drastic increase in LSM 6 and
7 over the stipulated period.
Another factor to consider is the increase in tourism in South Africa (fact and ref).
Tourists use cabs to travel to and from their destinations and because of that the
demand for cabs can be expected to rise along with tourism. Click-a-Cab is the
perfect link between taxi cabs and the increasing tourists and users of cabs.
Forecasting in 2016 of demand increase due to population changes
Cape Town Johannesburg Durban
Potential taxi user
demand base
351 041.9 832 376.6 383 618.4
Potential tourism
demand base
50 000 109 000 10 000
Ratio of taxi per
1000 user
population
1.3 1.3 1.3
Number of taxis 521 1 224 512
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In the above table it is assumed that the population will have grown by 10% in the
target market of taxi users between 2006 and 2016. The upper class is assumed to
have grown by 10% also.
The table shows that merely increasing the target market of taxi users is not enough.
The culture of using cabs in South Africa needs to be changed in order to make an
impact in the industry. Click-a-Cab is there to make sure that people are aware of all
the advantages of using cabs and therefore make the choice to take cabs habitually.
There are also other demographic factors that Click-a-Cab needs to consider. These
include targeting people who dont know how to drive but dont like using public
transport such as buses and taxis. Also, potential customers who do not want to
drive a car because of high costs that buying fuel imposes and mostly university
students who like going out but do not have cars or are underage. The people in any
of the aforementioned categories who perceive public transport as unsafe, unreliable
and inconvenient are the ones that are relevant to the profitability of Click a Cab.
Economic Forces
South Africans are more cautious about spending money since the recession hit in
2008-2009. This means that people are more willing to use alternative transport than
they are to buy their own cars. This is a result of the general uncertainty surrounding
personal finances. Fuel costs have risen over the last few years, further discouraging
people from buying their own cars. Another economic force which has a positive
effect on the Success of Click a Cab is the fact that South Africa has a growing
middle class who are capable of affording smart phones.
Technological Forces
The nature of this service is highly dependent on technological advancements in
order to be successful and to bring superior value to our customers. Currently The
more innovative the developments are, the more dramatic the effect will be on the
environment of the firm.
Technological developments are likely to alter the demand for the use of both the
Click-a-Cab and the use of cabs. The more innovative the improvements are, the
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more people will use the app and in turn increasing market share in the taxi app
industry.
To be more effective in its purpose, GPS technology will be integrated into the app.
The taxi app will remain up to date in this regard and will have to continuously
upgrade its technology in order to keep to date with the latest technology.
SWOT Analysis
Strengths
Click a Cab will be safe, efficient,
free and easy to download.
Click a Cab app will be available on
all Smartphones.
The Click a Cab app will offer high-
quality maps and directions for cab
drivers.
Click a cab will provide cab
companies with an extensive
database of customers and in turn
provide customers with a broad
range of cabs and prices to choose
from which will then add to their
customer value.
Weaknesses
Click a Cab is a new company
entering the Smartphone applications
market and will therefore initially face
lack of brand awareness and low
market share.
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Opportunities
Lower technology costs due to the
new digital age and advancements intechnology.
Large range of potential customers
as large portion of South Africans
(3.9 million) already use public
transportation, high fuel costs have
discouraged many in recent years
from purchasing cars of their own
and stricter drinking and driving rules
are to be implemented in Cape Town
High popularity of social media sites
provides an opportunity for Click a
Cab to gain awareness of the brand
and gain a firm presence on the
internet and in the global software
marketplace
The growth of Smartphone usage in
South Africa(more than 6.5 million
Smartphones)
Exponential Growth in Mobile
marketing will encourage companies
to use Click a Cab to advertise their
various products and services
Threats
Competition- Click a cab faces
competition from more than a millionapps in the Smartphone market
along with competition from Taxi
apps such as Taxi Rank and
independent cabs in Cape Town that
park outside venues and are easily
accessible for potential consumers
Increased Competition- new direct
competitors are likely to enter the
growing market
Cab drivers might not meet Click a
Cab standards
Click a Cab app could be
downloaded but then never used as
happens with many other apps
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Research Implementation
A brief survey in the form of a questionnaire was taken in the market to ascertain
customers attitudes towards the following:
Satisfaction with Cab services at present
Current use of existing taxi databases
Possible introduction of Click a Cab into the market
The extent of Cab use at the moment
The questionnaire is included in the Appendix at the end of this marketing plan.
RESEARCH FINDINGS
When deciding if our taxi application would be a service that is in demand in the
market we performed a questionnaire which different customers had to fill out. We
asked 30 people the survey, ranging from students, cab drivers and working adults.
The questions were simply and they just required yes/no answers to make it easier
for those completing it. Based on our survey and other research finding we gathered
that most people did not know about any smartphone taxi applications available
currently in the market, we also realised that majority of people and especially
students here at the University of Cape Town used cabs on a regular basis. People
said they would appreciate the development of this application as it would make lifeeasier for both the customers and cab companies.
Based on the research done, we have concluded that there is a demand for the
application but lots of marketing and advertisement will have to be done to ensure
the application is used to create better value for both passengers and the cab
companies.
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MARKETING STRATEGY
There are approximately 3.9 million people who use public transport in South Africa.
This opens a rather large market for the cab industry. This is because when peoplego out, are in a hurry or would rather travel more comfortably, they use cabs instead
of normal taxis or buses. Hence, in deciding the manner in which to build long term
customer relationships within the market and therefore, capture a sizeable market
share, it is necessary to acknowledge that not every consumer in the market place is
the same. Customers vary in aspects like specific needs, buying practices, and the
kind of marketing strategy that appeals to them (ref). Hence it is necessary to carry
out the following tasks based on research and analysis of the overall market.
SEGMENTATION
This involves dividing a market into smaller groups with distinct needs,
characteristics or behaviours, who might require separate products or marketing
mixes (ref). There are several ways in which Click a Cab could segment the market
for its core benefit.
Geographic segmentation is one such method; it divides the market into differentgeographical units for example, countries, provinces, cities, municipal areas, and so
on. With respect to Click a Cab which is aimed at the city of Cape Town, customers
in different parts of the city have varying needs in terms of the distance and
frequency of their travels. Hence, the market can be divided into:
a. Customers within a 10-15 minute radius of the Central Business District
(CBD): This group of customers are seeking transport urgently to relatively
close distances. This would require Click a Cab to have access to a large
database of cabs that are readily available in that locale.
b. Customers in the Northern Suburbs: This group which is in the residential
areas, do not frequently make use of cabs as they are wealthy and have
their own cars. However, the airport is situated in that geographical area.
Hence, the influx of tourists represents a distinct group of consumer who
are willing to pay significantly higher cab fares for safe, reliable and often
comfortable transport service. Click a Cab needs to have access to more
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upmarket cabs that pride themselves on safety and superior customer
service.
c. Customers in the Southern Suburbs: This area is predominantly occupied
by university students who require the services of Cabs at all hours of the
day and at the cheapest prices possible. Click a cab must have access to
24 hour cab services that charge affordable rates to efficiently serve this
group of customers.
Demographic segmentation which divides the market into groups based on
variables such as age, gender, lifecycle, income, generation, etc is another
way in which the market for Click a Cabs product/services can be divided.
This method of segmentation is relevant to Click a Cab in two respects.
Firstly, the income bracket which one falls under will affect the kind of cab
which they use. So the Click a Cab database must have cabs that cater to
people across the three main income classes
i. Lower income class have less disposable income for transportation
and would prefer cabs with low fixed prices or who charge R9/km or
less.
ii. Middle income class have significantly more income to allocate to
transport and would pay between R10/km and R12/km
iii. Upper income class has even greater income to allocate towards
travel and transportation and would pay more than the above two
groups if guaranteed superior service delivery.
Also under demographics the market for Click a Cab can be segmented
according to Age and Life cycle stage. Relevant to the market for Click a Cab
are the following life cycles:
iv. Students; these are young people who are at a stage in their lives
that is all about being active and having experiences. This group
has a very limited budget as well, because of their lack of a steady
stream of income. They require access to cabs that are always
available and can be called impromptu and still charge low rates.
v. Start-up workers; these are young adults who have just joined thework force, they need to get to their place of employment daily, yet
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they do not have cars since, they havent accumulated enough
income to make a capital purchase yet. They want a very reliable,
semi-fixed arrangement, Click a Cab must cater to the preference of
fixing an arrangement over a foreseeable future period.
vi. Established workers/business owners; these are middle aged to
more mature individuals who often travel on business, and need
transport to meet with their associates. They are affluent and
demand the luxuries and comforts that their hard work has enabled
them to afford. They would pay a premium for excellent service.
Click a Cab should have cabs that specialise in this market on their
database. Also they might wish to have full use of the cab over the
entire duration of their stay, this should also be an option offered by
Click a Cab.
d. Behavioural segmentation also applies to Click a Cab, in terms of the
benefits that were sought by the customer. Some seek quality, others
economy, speed or convenience. Click a Cab should have a way to filter
the cab options that appear for each consumer based on their prescribed
preferences. There should also be an option to switch of preferences in
the case where a customer wants a Cab that is outside of their usual
scope of preference.
In light of the different segmentation methods available, the following segments
apply to the market for Click a Cab taxi application on smart phones:
I WANT A CHEAP CAB QUICKLY
This segment comprises mainly of people with low income levels, as well as
individuals who are always on the go but do not have their own cars and individuals
closer to the CBD, who simply want to move from one spot in town to the next hot
spot. They are young, fun seeking individuals who make impulsive decisions about
travel at any hour of the day and have a limited budget. Also, on occasion they travel
long distances, to areas that have significant experiences to offer. Click a Cab needs
to approach them differently. The main points of contact would be social networks,
word of mouth testimonials, posters at hot spots that this crowd typically patronise.
There will also be a preference category on the actual application that allows them to
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get the cheapest cabs as quick as possible. This segment also includes people who
are new in the work force and do not yet have cars. They need a steady
arrangement that they can use daily to get to work.
I REQUESTED IN ADVANCE FOR AN EXCELLENT CAB
This segment comprises of the more responsible high middle to upper income class
individual. They are employed and travel for business/ work and not pleasure. Trips
are usually planned in advance with set itinerary. Most of their destinations are close
to the CBD; hotels and offices. It is part of their lifestyle to always go for the best and
this will be evident in the type of cabs they prefer. Need to be targeted through
recommendations from their social reference groups, also target employers who are
responsible for planning the travel arrangements of their employees on business
trips, Advertisement in strategic publications like journals, newsletters, and
magazines that are read by people of this calibre. Preferences on the application
allow them to get the highest quality cabs and choose if they wish to hire the cab and
for how long they wish to do so.
I NEED A CAB I CAN TRUST
Tourists fall under this segment. Their trips are planned with an itinerary in mind.
They need reliable and quality service and would pay a premium to travel in comfort.
They have no knowledge of the area and need a cab service that does. They should
be targeted through travel websites and agencies, also through information
brochures found in hotels, airports, and local hot spots. Again preference settings on
the actual application influence the options that appear before the consumer, stating
that you are a tourist gives access to most trusted cabs that have an element of
tourism to them. It also gives the opportunity to determine how long you wish to have
the cabs services.
TARGETING
This involves the evaluation of the available segments in order to decide which
segments to target based on how well the firm would be able to serve these
segments. In order to do this, a firm must evaluate the size and growth of the
segments, segment structural attractiveness and the objectives and resources at itsdisposal.
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Click a Cabs targeting strategy is differentiated, the product will target several
segments and tailor different marketing mixes suited to each segment. Furthermore,
the cab services within the database will be varied strategically to fulfil the needs of
each segment.
All of the aforementioned segments will be targeted by Click a Cab because upon
evaluation, they are of manageable size and will grow steadily in the foreseeable
future as Cape Town continues to develop into a tourism business and education
destination. Furthermore, in terms of structural attractiveness, the competition in
these segments is minimal, where it exists and the same could be said for substitute
applications. Finally, Click a Cab is more than able to access the required cabs and
add them to their database and the targeting of these firms is in keeping with the
firms objectives to cater for as many diverse transport needs as possible.
POSITIONING AND DIFFERENTIATION
It is important for Click a Cab to determine how it will create differentiated value for
its customers and what it wants to be defined as by customers on important
attributes. The main attributes which Click a Cab will be defined by, are:
1. Service that is tailored to suit you. Using preferences stated by the customer,
cabs that best fulfil the inferred needs of the customer will be prioritised in
listings.
2. Service that is efficient because the use of the latest in GPS technology
enables us to locate the customer and the closest cab and then connect the
two in a matter of seconds.
Ultimately Click a Cab is centred on the philosophy that the customer knows best.
When people think of Click a Cab they should think, the choice is yours. Choose
where you want to go, how you want to go and for what price you want to go, all in a
few simple clicks.
Points of Parity between our product and online taxi databases in South Africa are:
1. Creating a connection between customers and Taxi service providers using
cell phones
2. Make use of GPS Satellite to ascertain customers location
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Points of Difference between our product and online taxi databases for in South
Africa are:
1. Database that is much more comprehensive i.e. not limited to a few expensive
taxi services
2. The other service providers serving the customers in our market are not
actually in the form of an application tailor made for smart phones, they are
mobile websites which can be accessed on the browser of a smart phone.
3. Use of preferences and advanced search tools to deliver the best possible
service to the individual customers.
4. Use of GPS navigators to locate drivers and ascertain their distance from the
customers.
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MARKETING MIX
Click a Cabs marketing mix will comprise of marketing tools such as product, price
place and promotion that will be used by the firm to induce a favourable responsefrom the target market and will influence the demand for the Click a Cab application
(textbook reference).
Product
The Click a Cab app is an intangible product that consumers and registered cab
drivers can install or download on their Smartphones from various app stores
associated with their Smartphones. This application will be used to connect the twoparties, cab passengers and cab drivers, together in order to do arrange time, pick
up point and destination for a cab trip anywhere within Cape Town. Once
downloaded, the Click a Cab app will be accessible 24/7 throughout the year to any
potential passengers and corresponding cab drivers in Cape Town.
The Core product Click a Cab offers to the market is convenient and clear
correspondence between cabs and passengers.
The Actual product is the quick and easy-to-use application downloaded from the
app store that will appear as an icon with the distinct red and black Click a Cab logo
on the users phone and that will allow the user to find a cab that meets the
consumers needs.
The Augmented product for the Click a Cab app will consist of the customer care
support hotline that will be offered to potential and actual customers to assist with
any problems that arise or to help with the installation process.
How Click a Cab will work:
Customers needing a cab will merely have to click on the Click a Cab app icon on
their phone which will then detect their current location and allow the customer to
enter their destination point as well as the time they want the cab to arrive. Within
minutes, a list of cabs registered with Click a Cab that meet the customers
specifications and needs will appear on the screen with the corresponding rates. The
customer can then select the Cab of their choice and wait for their cab. The cab
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driver chosen will then be notified and the passengers location will appear on their
GPS navigation system with directions to the pickup point as well as the destination
point. Once the cab has arrived, the app will notify the customer.
Benefits:
Click a cab is available at the click of a button and can be used anywhere in Cape
Town anytime. Click a cab ensures clarity between the passenger and the cab driver
regarding exact destination, time and price. Click a Cab will only use registered and
trusted cab drivers to ensure the reliable and safe trips for all passengers. Click a
cab allows customers to view a range of different cabs offering different prices
Price
As the average price of a mobile app is falling rapidly on all vendor app
stores, except Android(Sharper Innovations, 2012) and because Smartphone
application customers prefer free apps, the Click a Cab app will be free to download
for customers and cab drivers (Nielson, 2012).
Figure 3 showing the small percentage of paid apps that are used in the various
categories:
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(Nielson, 2012)
Click a Cab will acquire revenue by charging companies to advertise on the Click a
Cab app and by charging a 10% commission on the cab companies or drivers for
each trip they make.
Promotion
To advertise Click a Cab, the company will need to use advertising, public relations,
personal selling and sales promotion.
Click a Cab will use social networks such as Facebook and Twitter as the chief
platforms for their advertising as these social medias will be the optimal advertising
method to reach millions of potential consumers. Along with Social medias, Click a
Cab will also make use of public relations and large promotions at big events suchas parties or concerts where they will showcase the application and be highly likely
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to find and attract their target market. The individual cab drivers registered with the
company and app sores promoting Click a Cab will serve as a channel to personally
sell the app as they will inform potential customers of the Click a Cab app and its
benefits.
Place
Click a Cab is not a typical physical product or service and therefore cannot be
placed in a store or physically sold. In order for the company to ensure that the app
is easily accessible everywhere in the Cape Town region, Click a Cab will partner will
all the Smartphones used in South Africa (iPhone, Black Berry, Android, and Nokia)
and all the app stores. Furthermore, customers will be able to download the Click a
Cab app off the internet. By using these different systems to ensure maximum
accessibility, the Click a Cab app will be working to achieve higher probability of
purchase and usage.
People
The people that form part of the Click a Cab service will generally interface indirectly
with the consumers by working behind the scenes in order to aid the implementation
of the app and to operate the application system. In addition, Click a Cab will also
have staff on the customer care hotline and website to deal with queries that
customers might have or problems that arise. The second group of people, the ones
who deal with the consumers play an important role in the company. They will serve
to shape the relationship between the consumer and the company. Click a Cab
realises the importance the employees play in the company and hence, Click a Cab
will require that all its employees that could interface with customers are fully
knowledgeable about all aspects of the app and receive intensive training in regards
to dealing with customers and unexpected problems
Physical evidence
Click a Cab is a virtual product and therefore customers do not go to a physical store
to acquire the application. That being said, the customers do however log onto the
Click a Cab website or open the application in order to use the service. The market
will judge the application by these two elements before they decide whether to use
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the app or not. For this reason the Click a Cab website as well as the application
itself will be appealing, simple, neat and operate efficiently and according to
customer standards. The Click a Cab team will also work to constantly update and
the website and the app in order to keep up with the times as well as to provide
customer value
Process
As we working with both the passengers and the cab drivers, Click a Cab will need to
ensure that the application is quick and hassle free for both parties using the
application. Our internal system needs to operate efficiently as each step in the
process of our app is dependent on the steps before. It is imperative that we work to
constantly upgrade our systems to ensure that the system continues to work
effortlessly.
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BRANDING STRATEGY
The Brand of a product beyond its name and symbols represents the
consumers perceptionsand feelings about a product and its performance (George,2010), which marketing is responsible for creating in the mind of consumers. It is one
of Click a Cabs main objectives to develop a high Brand equity. Click a Cab intends
to create and maintain a positive differential effect (George, 2010) associated with
consumers knowledge of the brand name and its impact on their decision to utilise
the app. This would provide us with many competitive advantages in terms of:
The fact that consumers will be fully aware of the distinction between our
brand and already existing taxi databases will facilitate brand loyalty
Increased bargaining power with distributors like the iPhone app store and
BlackBerry app world, since customers expect them to have the app available
Leverage against fierce price competition as customers, in this case the Cab
companies and drivers who pay to be listed on our database are willing to pay
a premium to enjoy the service of our brand over other brands even when
they lower their rates.
In essence a sound brand is the solid foundation necessary for creating long term
customer relationships that facilitate the exchange of value in a manner that is
profitable to Click a Cab. In order to build such a brand the following decisions
must be made:
Brand positioning
Cick a Cab will position itself in the mind of customers on all three levels.
Firstly product attributes, this is concerned with getting customers to be attracted to
our services based on its actual features. The attractive features include the
following:
Get your cab by simply typing your current location and desired destination
and then clicking Get a Cab, in the simple search method which implies you
need the cab as soon as possible.
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To take it up a notch, use Advanced Search which allows you to enable GPS
tracking of your cab, choosing the number of people, pick up time and your
price range as well as the other fields in simple search.
Make use of our preference settings to enable Click a Cab make the optionsof cabs available to you as personal as possible.
Rate our application and the service you received from the Cab which you
chose
Save certain taxi companies and locations as your favourites, to auto search
for them in the future.
Secondly benefits to the customerare another way to successfully create a
favourable position for our brand in the minds of customers. They include the
following:
It is very quick
It is easy to use
It requires no airtime to operate
It reduces the chances of dissatisfaction by taking preferences into account
Saves the customer the search activity involved in finding quality cabs at a
good price
Thirdly Click a Cab will definitely appeal to customers beliefs and values by sharing
our service philosophy with them and making it visible in our promotions and our
service delivery. Our philosophy is to make the experience of Public transport
private. Click a Cab wants to deliver a cab to you that meets or exceeds your
expectation. Excellent service is what we pride ourselves on. We also emphasise the
hassle free nature that Click a Cab will introduce into the use of Cabs. Customersmust get the sense that all they have to do is click and we take care of the rest.
Brand name Selection
The name Click a Cab was chosen because it represents adequately the two main
aspects of our core benefit. It represents how easy it is to get the services of a cab
with just a click on our app. It is a very easy to remember and catchy name that will
work well with advertisements and promotions.
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The brand name will be protected as a trademark of the firm to prevent any other
organisation from using it in the future.
Brand Sponsorship
Click a Cab is a manufacturers brand, it will be created by an expert team of
smartphone app designers and then offered to distributors like BlackBerry app world
and iPhone app store, also it will be available for download on a website owned by
the creators of the app and accessible to smarphones mobile browsers. This is best
suited to the product as it allows access to a large clientele base because using the
aforementioned distributors puts our unknown app on a know and trusted database
for smartphone apps.
Brand development
In future it is possible for the brand to expand its horizons in terms of:
Line extensions which would be new forms of Click a Cab for example a
premium version that involves more features and credit card payment.
New brands could be formed like Click a Hotel, where customers are able to
make accommodation bookings using their smartphones.
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GROWTH STRATEGY
Products and companies need to grow in order to compete effectively in the market.
Click a Cab is not the only taxi application available in South Africa therefore it will
have to plan strategically how it will grow and be a market leader in its defined
market. The ansoff growth matrix is a tool that can be used to help Click a Cab
decide which marketing growth strategy to apply. It is a portfolio- planning tool for
identifying business growth opportunities through market penetration, market
development, product development or diversification (Kotler and Armstrong, 2010).
Firstly, the Click a Cab company might consider where the service can
achieve deeper market penetration, which is by increasing the use of this
application to the current customers and taxi companies without changing any
software or the product itself. Click a Cab might increase the advertising/
marketing of this application using social networks like Facebook or twitter.
Improvements in the ease of use of the app or the app design might also
encourage customers to use this app more often. Discount specials to
frequent and loyal customers could also be offered to ensure all loyal
customers feel like they are receiving superior customer satisfaction and
value.
Secondly, Click a Cab will also consider possibilities for market
development, which is identifying and developing new markets for its current
product (Kolter and Armstrong, 2010). For example, management could
consider new demographic markets. This app could cater to a wider market
including people of different income groups. Customers could state their
budget for transportation and based on the information provided, suitablecheaper taxi companies could be sent to those with lower budgets. Click a
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Cab can enter a new demographic market by introducing the option to
process payment using a credit card on this application. By doing so, the
Click a Cab service can attract a market segment of customers that might
not necessarily use the app or cabs initially due to the cash only payment.
This could also attract more tourists to use this application. Thirdly, the business can also consider product development; this is offering a
modified or new product to the current markets (Kolter and Armstrong, 2010).
For example the business can also introduce a new system whereby
customers can pay for the taxi ride using the app and their credit card.
Improvement and changes in the app design could also encourage growth
and a new product named Click a Movie could be introduced, whereby
customers could book a cab and movie using the same application.
Modifications can also be done to improve the current application; this could
be done by constantly applying the markets technological advances to the
application. This Click a Movie app could also fall under diversification as it
is starting a new product/ service to a new market.
It is important that managers focus on promising growth opportunities, not
waste time, resources or energy trying to uphold fading products and services
that are unprofitable. Click a Cab will ensure it is constantly evaluating its
strategies to ensure they gain competitive advantage in their defined market.
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SUMMARY
In conclusion, Click a Cab is a taxi app for smartphones which is eligible to enter
the market and change the way customers think about the use of Cabs to reach
their destination. The analysis of both the micro and macro environment showsthat the market does have a significant demand for this app due to the gap
created by existing brands not catering to certain segments of the market. Click a
Cab is definitely market oriented. It is committed to serving the needs of its
customers and delivering a product that surpasses what is already offered in the
market. With the right amount of dedication and commitment it will succeed.
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