Marketing Plan Term Paper OLA CABS

Submitted to -: Prof. R.P SharmaSubmitted by-: Manan Chaudhary - 73 Prateek Singh Tak - 80Rupam Jhanwar - 90Siddhanth Dubey - 92Siddhartha Kulkarni 93OLAIntroductionParent Company: ANI Technologies Pvt. LtdCategory: Service provider for taxi hiring (Aggregator)Sector: Transport & LogisticsTagline/ Slogan: Chalo Niklo, Its the smartest way to travelUSP: Standardized customer experience & Price transparencyOlaCabs, popularly known asOla, is a mobile app for personal transportation in India. Ola started as an online cab aggregator in Mumbai, now based out ofBangaloreand is among the fastest growing businesses in India. It was founded on 3 December 2010 by Bhavish Aggarwal (currently CEO) and Ankit Bhati. As of 2015, taxi app Ola has become the third-most valuable venture-backed company in India after snagging funding of $400 million, or Rs. 2,500 crore, from a consortium of investors. It is valued at $2.4 billion (Rs 15,600 crore).It raised $330kin its initial round of funding on April 21, 2011. The company receivedSeries A fundingof $5 million from Tiger Global Management; Series B funding of USD 20 million fromMatrix Partnersand Tiger Global; Series C funding of $41.5 million from Steadview Capital,Sequoia Capitaland its existing investors. In Series D round of funding on Oct 25, 2014, it raised $210 million from SoftBankInternet and Media Inc. and its existing investors. OLA boughtTaxiForSureor TFS on 1 March 2015, for about $200 million. From the 25th of June 2015, Ola users have gained access to TFS cabs via the Ola mobile application.

5 Cs of Marketing for OlaCabsCOMPETITIONCOMPANYCUSTOMER

COLLABORATORSCONTEXT

CompanyMission: a marketplace for all types of cabs and car rentals.Vision: We are a young and energetic company based in Mumbai. Nothing excites us more than using technology to bring the sameefficiency and customer experience to the car rental industrythat you expect from flights!Goals: short-term goals include improving the rental cabs system in India.OlaCabs, popularly known as Ola, is a mobile app for personal transportation in India. Ola started as an online cab aggregator in Mumbai, now based out of Bangalore and is among the fastest growing businesses in India.It was founded on 3 December 2010 by Bhavish Aggarwal (currently CEO) and Ankit Bhati. In November 2014, Ola expanded to incorporate autos on-trial basis in Bengaluru. Post the trial phase, Ola Auto expanded to other cities like Delhi, Pune and Chennai starting December 2014.Ola provides different types of cab service ranging from economic to luxury travel. The cabs are reserved through a mobile app. OLA provides three different tiers of car service to suit different budgets: luxury sedan models, mid-range, and its Ola Mini range which it claims is priced on the same level as the humble auto rickshaw.OLA lets passengers pay in a variety of ways, including cash. It claims to clock an average of more than 150,000 bookings per day and commands 60 percent of the market share in India.OLA aims to bring convenience, price transparency and standardization to consumers booking car rentals and cab services. Initially they used to offer instant confirmation for car rental bookings, either online or over the phone but now they have adopted an app-only strategy wherein the users will be able to book the taxi only through the mobile app.OLA provided a lot of promo codes on their website to give huge discounts in various segments. They also started the trends of providing fixed rate drops to the airport when they launch in a city. OLA provides cabs at INR 13 per kilometer whenever Auto Unions call a strike.By 2014, the company has expanded to a network of more than 18000 cars across more than 65 cities. In November 2014, Ola expanded to incorporate autos on-trial basis in Bengaluru. Post the trial phase, Ola Auto expanded to other cities likeDelhi,PuneandChennaistarting December 2014. In April 2015, over 40000 cabs are registered & successfully running across 22 cities of India.CompetitorsMeru CabsMeru Cabs (V-link Travel Solutions) is one of the largest taxi operators in India and is third largest taxi operators in the world in Assets Ownership space. The company was earlier following Asset-ownership Model and now started focusing on Aggregation model aggressively. The company has launched different brand MeruFlexi (Aggregator model), MeruGenie (Economy) and MeruEve (Women Only). The company is growing at annual growth of 30%, reported a turnover of INR4.2 billion (US$70 million) for 2014 and we expect to touch INR10 billion (US$160 million) by 2016. Uber Uber officially launched in India in October 2013. Currently, the company is operating in 21 cities. The concept is gaining lots of popularity around the world. It is posing real challenge to traditional taxi market. The company is signing up around 20,000 drivers every month around the world. It is not only serving the existing market but expanding it. Uber does not own cars, uses state-of-the-art technology to connect drivers with passengers within minutes through a mobile app for a fee. Uber is ahead in marketing as they did campaigns during elections (providing Uber at a discounted rate for voting), UberStud (to encourage referral) and free credits while introducing a new customer. Recently they launched Uber Chopper, by which you can ride a chopper and have a view of your citys skylineTaxi For Sure (TFS)Taxi For Sure was founded in 2011 by Aprameya Radhakrishna and Raghunandhan G to tap Indian Taxi Market. However, it was acquired by M/s ANI Technologies Pvt. Ltd. (OlaCabs) for $200 million in March 2015 (Cash and stock deal). The company is one of leading Cab Aggregators in India and majorly works with the operators to provide cab service. TaxiForSure will continue to remain independent entity and will complement to the strength of parent company. As an aggregator of car/cab rentals, its offerings include local point-to-point pick-up and drop, airport transfer, local packages (for four or eight hours) and outstation packages. Besides regular rentals, it provides economy cars to the commuters.ContextOla has been affected by recent controversies such as the alleged rape of a 27-year-old woman executive in a cab booked through Uber on 5th Dec 2014. This led to a ban on aggregators which impacted investor sentiment and customer experience negatively. Owner players like Meru benefited from the ban. Drivers of these app based taxi companies became jobless, on paper. Ban led to high uncertainty in investors who had poured millions into these start-ups. The customer convenience took a hit in the high volume festive season, leading to customer dissatisfactionOla responded to the safety issue of women by undertaking innovative initiatives like women-only cabs and panic buttons to highlight their focus on customer safety. It launched a pink cabs service, driven by women drivers and which will only allow female passengers to board them. The premium service will help Ola compete in a niche segment of the taxi market, dominated by regional players like SheTaxi etc. Complying with Government regulations, Ola also launched an emergency contact.Ola has also been taken to court in Mumbai for not being a licensed operator. There could also be other hindrances in India. Like their counterparts in other emerging markets, cities in India are hobbled by poor roads and crippling traffic, but Ola is relying on its technology and the data it collects to overcome these problems. CollaboratorsThe 'driver' is a critical part of the game. As taxi aggregators compete for the same customer pie, the aggregators are making good customer service the key differentiator. If the drivers are happy, it leads to better customer service. Ola is planning to rapidly increase its supply chain that means more staff for nationwide expansions, and more drivers. Beyond simply signing drivers up with lucrative offers, the OLA CEO Bhavish Aggarwal says that the company is empowering drivers to become entrepreneurs themselves.The company works with leading financial institutions that provide loans to help prospective drivers buy their cars outright, and it also offers training to ensure drivers are equipped to deliver a quality and safe experience for passengers. Ola trains drivers on health and hygiene, customer service, good driving practices and vehicle maintenance, among other things. It provides free education for up to a year for children of drivers who have been rated the best in a three-month period.When it comes to Ola Auto, Ola claims to have seen rapid adoption for their platform amongst auto drivers with about 40,000 autos having signed up. The app helps drivers receive booking requests from customers around them and also helps them with turn-by-turn navigation to reach them. CustomersThe target audience of OLA is every Tier 1 & 2 city resident, employee and visitor over 16, female and male who is interested in professional, valued and safe transport services and wants to enjoy their ride with OlaCabs. Every person in Tier 1 & 2 cities is a potential customer and should be satisfied by the taxi service of Ola. The prior need of a customer is to get from point A to point B. Every customer expects good service for a fair charge. It claims to clock an average of more than 150,000 bookings per day and commands 60 percent of the market share in India.Ola has been trying to woo customers by offering huge discounts and better service. Still, brand loyalty presents itself as a big challenge. High customer acquisition costs along with high customer migration are burning fast through the finances of Ola. Customers, especially in small cities prefer cheap autos to cabs. To counter such a phenomenon Ola has started partnering with autos for its Ola Auto service. Ola also places special focus on the safety of female passengers. Ola has started giving its drivers with specific training on how to safely drive unaccompanied women passengers. It has introduced novel features such as women-only cabs and panic buttons.

SWOT ANALYSIS

STP AnalysisSTP stands for Segmentation, Targeting, and Positioning. STP analysis will be carried out to determine how OLA can become a more influential player in the market.Segmentation Segmentation is the process of understanding why people by certain products and services, which of those can best satisfy the customer, and what the company can do to make its products and services simply irresistible.Segmentation for OLA involves segregating the market on factors such as 1. Demographic

IncomeCabs will be accessed mostly by people from the middle class and upper middle class strata of society, who seek affordable point to point transport.

Family SizeOla provides 3 service options for its customers. The OLA Mini, OLA Sedan, OLA Auto (in select cities), & its luxury segment (in select cities) enable customers to choose a ride of their choice depending upon the number of passengers.

Geographical LocationOla is currently operating in at least 50 cities, all tier1 or tier 2. These cities have been targeted keeping in mind the high frequency at which the masses commute from one place to another in urban and semi urban areas.

Social StatusOla targets population that is placed higher up the social ladder. It confers a certain feel good factor on people for choosing to travel by car instead of taking local transport such as rickshaw or buses. OccupationOLA are used by students and working professionals alike and anyone else who had a need for rapid commuting from one place to another.

2. Psychographic

Price SensitivityOla is probably the cheapest option for those who want to hire a cab. At Rs. 9/km, Ola has the lowest fare rate among all its competitors. Cheap prices also help to draw the student crowd which forms a substantial part of its revenue. It has provided 4 choices (Mini, Sedan, Auto, and Luxury) for its users to pick from depending upon their need and affordability.Ola also provides its registered users with coupons and discounts (promo codes) in order to propagate usage of its app.

ServicesOla app lets users book a cab for immediate use or for another time in the future. Ola thus provides customers with spontaneous service. OLA is also preferred by those who own no transport of their own because it provides comfort and sound conveyance.Features such as Ola Money allow people the convenience of cashless travel which is otherwise not possible in local transport. There is also provision to pay by cash if the customer prefers that. 3. Behavioural

Internet Usage one of the most important factors in determining usage of cab services is the ability to procure one. Ola cab booking is available through its app only. It has discontinued the use of its website and does not book cabs via phone calls. Smartphone users thus form the largest chunk of Ola customers.

Targeting OLA targets people from the middle class, upper middle class and rich strata of society who want to have access to affordable and good quality conveyance facilities. It also seeks to provide a transport option for masses not possessing four wheelers. Ola aims to provide an alternative for people who are hesitant in using public transport due to various reasons.5 criteria are critical to decide whether or not the company has selected a viable target market. These are -: Sizethere is huge demand for quality transport facilities in a developing country like India. The Indian cab market has seen a lot of traction, withover INR 600 crores being raisedby the leading players in the sector. While this has been a very competitive market, the organized sector forms a small percentage of the overall market. It is estimated that the radio taxi market in India is $6-9 billion dollars growing at 17-20%. It is also estimated that the number of taxis in the organized sector will reach 30,000 by 2017.

Expected Growth as of 2014, Ola had a fleet of roughly 9000 rented cars. It is said to be adding about 1000 vehicles (both taxis and autos) to its fleet every month. Ola currently has 60% of the market share in the cabs sector. It is expected to grow further.

Competitive PositionOla has relatively lower fares. It started off at Rs. 10/km. Currently it operates at rates between Rs. 9/km to Rs. 13/km. Ola has devised a strategy wherein it provides special service at Rs.13/km in absence of local public transport due to union strikes etc. Ola is a market leader in every city that it operates. It has a fleet of luxury vehicles, sedans, and hatchbacks for intra-city transport. None of its competitors provide such variation. It also provides taxis for intercity travel.

PositioningAn important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. It answers the question How do you want to be perceived? OLA positions itself as a company that will Use technology to bring higher efficiency and customer experience.Ola has 2 taglines that help to convey its positioning. Chalo Niklo Its the smartest way to travelThrough its Chalo Niklo campaign, OLA wanted customers to perceive its cabs as their own cars. The customers could call a cab anytime, anywhere as if they had a personal chauffer. Earlier customers used to find it very difficult to book a cab but through this campaign OLA positioned itself as a service that is always available, is cheap and affordable.Later on, it came up with Its the smartest way to travel campaign where it focused on its additional services. Ola positioned itself to an Experience provider where it provides various services like music, phone battery charging, snacks, water bottle to make the journey more comfortable and an enjoyable. Moreover, it simplified the process of boking a cab by moving to app only platform. Thus, it repositioned itself to an Experience provider rather than just a transport or cab company.

Marketing Mix Product/ServiceOlaCabs, also known as Ola, is a mobile app. It was Indias first cab aggregator. It is Indias largest cab and Auto aggregator, with a fleet of above 18,000 cars across 85 cities.

OLA SEDAN OLA MINI OLA AUTO The service is a GPS enabled mobile app based personal transportation Service. It is a 24*7 service The service is divided into 3 types Ola Sedan: It is a service that provides the customers a transportation in a Sedan with more space to accommodate more people (3-4) Ola Mini: It is a service that provides the customers transportation in a Mini car with less space usually preferred for solo travel. Ola Prime: It is a service that provides customers a Business class experience with high end cars such as Skoda Rapid, Honda Civic etc. Ola Auto: It is a service that provides the customers transportation in an auto rickshaw and is preferred for short distances and for people who want affordable transport. Kaali Peeli Taxi: This service is only for people from Mumbai and brings the famous kaali peeli taxis under Olas ambit.

PriceOla Cabs has a dynamic pricing system. Services targeting different consumer needs are priced accordingly. The Ola Mini Cabs which targets consumers who merely want to get from place A to B are priced at a lower rate than Ola Sedan Cabs which offer more comfort in terms of legroom and boot space. This is also the case because Ola Mini Cabs give a better fuel mileage than their Sedan counterparts. A premium service of OlaCabs is Ola Prime Cabs which is on an average priced around twice of that of Ola Sedan Cabs; they include the luxury segment of the cars. The price of Ola Cabs also differs across the country. This is due to various factors such as tax laws of the state, demand from consumer, competition and ease of functionality in the respective city. The service tax is calculated on the total price indicated on the meter and is added after completion of journey.General Pricing Strategy1. Standardized rateThe standardized rate of Ola Cabs is the minimum price that a customer has to pay per journey. This varies from the type of cab you book to the city you book the cab in. The standardized rate is applied for the first x number of kilometers of travel. Ola has not kept the number of kilometers a constant throughout the country due to variation in distance in the city to various levels of congestion of the cities.For example: In Mumbai the standardized rate of Ola Mini Cabs is Rs100 for the first 4km whereas in Mysore it is Rs 49 for the first 2km. It is priced so keeping in mind that Mumbai is a Tier 1 city which is heavily congested. Keeping a standardized rate for 4km encourages the consumer to choose Ola for longer distances thereby increasing the chances of a higher wait time charge.2. Rate per kmThe rate per km of Ola Cabs is the rate at which the journey is calculated per km after the standardized rate for the first x number of kilometers. This rate not only factors in the above elements which affect the local price of standardized rate but it additionally includes the average journey length. This means that the rate is strategically implemented according to OlaCabs needs in that specific geographical market.For example: In Delhi, the Ola Sedan is priced at Rs11 per km as opposed to Goas Rs15 per km as OlaCabs correctly perceives Goa as a tourist destination where demand of means of transport is high. 3. Ride time ChargesIn additional to standardized rate and rate per km, Ola also charges an additional ride time charge which includes both travel time as well as wait time. The charge ranges from Rs1 to Rs2 per min depending on city. This price additionally factors in the average duration of travel of a customer. Also the first few minutes of the ride (ranging from 5-10 minutes) are free.For example: Ride time charges for Mathura is Rs1 per minute whereas ride time of Haridwar is Rs2 a minute as the distances travelled in Haridwar are generally shorter than Mathura but take a longer period of time due to infrastructure.4. Peak time chargesPeak time charges are generally applied across all segments of Ola. Under peak time charge a multiplier is calculated depending on the demand of vehicles. This multiplier ranges from 1.2x to 4x. This charge is purely demand based and is calculated by their systems using an algorithm. The customer is notified of the multiplier before he books the Cab.For example: At peak hours such as 6pm to 8pm when there is a dearth of Ola vehicles but an excess of customers a factor of 2x may be applied to the Ola rates. This ensures that Ola is taking advantage of the higher demand and also making up for the duration of day which has less demand.Method of paymentTo offer the consumer a greater sense of comfort during payment, Ola includes multiple avenues through which they can pay. The consumer can choose to pay through cash, OlaMoney, Coupon Codes or even part paymentCashThe customer can choose to pay through cash. This transaction is done on completion of the ride and is made directly to the cab driverOlaMoneyOlaMoney is another product by Ola which till recently was used exclusively to pay for OlaCabs (it can now be used as an e-wallet for other e-commerce websites as well). To pay through the in-app wallet, the customer has to inform the taxi driver that the payment will be made with Ola Money. On completion of the ride, the driver shall enter the fare displayed on the meter, followed by the four-digit OTP that the customer will receive through an SMS. Ola money is then automatically deducted from the customers account. Drivers can withdraw their payments anytime from the prepaid ATM card that is linked to their Ola account. Cash-less rides are of great benefit to the customer as there is no hassle for change.Coupon codesAnother popular way of payment is using coupons. These coupons are obtained through various Ola promotion activities such as the referral system. Part PaymentConsumers have the option of paying for Ola rides through part payment as well. Where the ride can partly be paid using a coupon or OlaMoney and the rest can be paid in cash. This ensures that the customer does not face the uncertainty of his money in the e-wallet going to waste and is also convenient if he is low on cash.

PlaceDistributionOlaCabs are currently available only in India. Olas distribution throughout the country is wide and varied. OlaCabs are available in over 87 cities across India. In these 87 cities, you can book an Ola Cab as long as you have a working internet connection. The most popular cars which are generally booked through Ola are Toyota Innova Taxi Cab, Tata Indica Taxi Cab, Tata Indigo Taxi Cab, Chevrolet Tavera Taxi Cab and Mercedes Benz Taxi Cab. The luxury cars such as Mercedes and BMWs are few and limited to a few cities. This is because OlaPrime is currently functional only in 6 Tier 1 cities as of now.App-Only Till recently Ola could be booked through the mobile app, the website as well as through phone calls but as of August 2015, OlaCabs has gone app only. The Ola app is available on Android, IOS and Windows operating systems which cover over 99% of global smartphone users. This is because users preferred the seamless app experience to any other mode of booking. This strategic move allows Ola to deliver a consistent one-touch booking experience as well as improved ride experience across all aspects like navigation, payments, safety and feedback. It also avoids all the problems and confusion created due to various channels of booking. This had led to a number of bad user experiences with Ola.They have also recently implemented 2G enhancements in the app will also allow users in smaller towns and low network areas to access Ola without compromising on speed and ease of access. These enhancements allow swift loading of the app on 2G networks. This is an important move as it provides a strong foundation to their app only strategy.The phone booking number is now the support line for feedback and complaints.

PromotionOla cabs have been promoting there brand with the campaign called Roti, Kapda, Makaan and Transport campaign. They are on an aggressive promotion spree through:Offers: 1st Ride free Campaign- through this it gave free first ride to people who downloaded the app. It was promoted through banners, hoardings and text messages.(1)

Weekly offers and Coupon codes(2)

Through Referral Codes people who already are Ola users can refer Ola to new customers and avail exciting offersAdvertising Multi-Channel Campaign called #Chalo Niklo which aimed to position Ola as the goto transport platform of choice for immediate and transport travel(3)

Through Cup Shup Campaign Ola aimed to launch its new platform for booking Kaali-Peeli Taxi in Mumbai. A total of 10 lacs Ola branded cups were distributed at several premium tea locations, offices and colleges across various locations of Mumbai. Also Ola branded trays and t-shirts were provided to a few premium tea vendors who were in a business of delivering tea in nearby offices. Delivery boys were given t-shirts and carried a tray to increase awareness(4)

Other Methods Through affiliate marketing by tying up with other companies for e.g. Freecharge(5)

Through its mobile wallet Ola Money it tied up with Oyo Rooms, Lenskart, Saavn, Zopper, BusIndia and Zoomin Celebrity endorsements: Ola used celebrities like Soha Ali Khan and Yami Gautam as brand ambassadors for their brand.

Public relationsOla uses social networking sites such as Facebook and Twitter to engage its customers. It uses these sites to communicate the events they are sponsoring, wishing their customers on various occasions and also any activity they are planning. For e.g. they provided 40 people free cab ride for registering for their initiative Under the Stars. They also popularized their #Chalo Niklo campaign through Twitter and Facebook. PeopleThe People in Ola include the employees and the Management. The Management includes the founders Bhavish Agarwal and Ankit Bhati both being IIT Bombay alumni. Ola introduced and pioneered the concept of driver entrepreneurship. They help the driver buying his own car. Hence the driver in case of Ola is an entrepreneur. The behavior of the driver is of utmost importance as it helps in customer retention and also in word of mouth publicity. Since the driver in case of Ola is the owner, generally he is polite, professional and friendly. ProcessConsumer sideThe consumer books the OlaCab through Ola app. Until recently Ola bookings were also possible through their website or a phone line but Ola has decided to go app-only. To do this, the consumer must have an Ola account. When he logs in through the Ola account, his location is shown on the map and he is allowed to choose the kind of ride he wants. He can choose between OlaMini and OlaSedan. OlaPrime which is targeted at the premium segment is available only in a few larger cities such as Delhi. According to the customers needs he can choose Ride Now or Ride Later. The Ride Now options show how far the cab is in minutes. The Ride Later option is used for advanced bookings.The customer can also get a ride estimate if he enters his destination. The customer then applies any coupons that he has and proceeds to confirm his booking. The driver of the cab is intimated and is given the name and number of the customer. Once he arrives at the point of pick-up, the customer receives a text message regarding the same. Post ride the customer has to rate the ride and the driver out of five stars and provide suggestions to improve Olas service.Cab Owner sideThe Ola Cab owner has to register himself as well as his driver with Ola. The driver must have a valid license for commercial vehicles and the car must be registered as a commercial vehicle. They both undergo 3 days of separate training of what Ola represents. The owners training is more inclusive of the pricing model and profit sharing basis of Ola whereas the drivers training is about basic etiquette. The driver is then given a clean shirt and trouser according to his size. He is also provided with a tablet like device which is used as a meter as well as to find customers. An Ambipur fragrance is also given to be kept in the car.Ola charges the cab owners for the first service - about 12 of the billing that come through the app. The second service is free and then the profit sharing is more in the Cab owners favor as the more cab seeking customers Ola has, the more the number of cab owners would be willing to register with them and currently Ola is not looking for profits but for higher market share.Ola cabs are tracked in real time. When the customer books a cab. The driver is notified through his device. He will only be notified if he is logged in. The driver has the right to reject the customer but if he does so he has to pay a penalty of Rs200. Therefore according to protocol whenever he is on break, no matter how short a break it is, or is not available to take customers, he is supposed to log out.Ola maintains the Owners account by recording the fares collected by him. If the customer pays the driver in cash then the account would show a negative balance as the Owner owes Ola money whereas if the customer pays through coupons or OlaMoney then the balance would be in positive as now it is Ola who owes the cab owner money.

Physical EvidenceThe service can be verified on the spot in the case of Ola. If the driver turns up late the customer gets to know immediately and can complain to the customer care representative. He can also rate the driver with the help of the mandatory rating feedback mechanism. The ambience inside the car which includes air conditioning, cleanliness, music etc. can also be verified on the spot.

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