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Environment of international Marketing Oz Assignments
The paper provides a brief information about marketing plan that is used by Ola Cabs before implementing the business in London’s market. Ola Cabs is an online cab services provider corporation based in India. It is continuation part of assignment 1 which discuss the marketing strategies, SWOT analysis and STP strategies. The marketing objectives are decided to enter into the new market. Situation analysis is conducted by Ola Cabs and key target audience is also evaluated and identified by the company while initiating the business law in market. The marketing strategies that adopted by Ola Cabs also have been elucidated in the task.
Ola Cabs is an Indian origin online transportation network Corporation which is developed and built by ANI technologies Pvt. Ltd. The company was formed in 3rd December 2010 in India. Its headquartered is situated in Banglore, Karnataka, India. The firm has announced to expand and explore its business activities by introducing or launching operations and activities in as well. It is one of the biggest rideshare Corporations across the world. The firm has decided to expand its business in market. The company is energetic and young company based in Mumbai. It is using innovative and advanced strategies to stay in the international market. The main mission of Ola Cabs is to provide a dynamic marketplace for all types of cab and car on rental basis. Ola plans to monitor on and explore in the London’s market and is customizing its activities and operations to suit the needs and requirements of its local market. The marketing plan for Ola Cabs while entering into the market has been discussed below.
The objectives for Ola cabs have been detailed below.
- To provide reliable, hassle free and technology efficient and effective car rental services to the customers in London.
- To improve and enhance the rental cab system in the country.
- To uplift and enhance the profitability and revenue.
- To satisfy the needs and expectation of the customers by proving excellent cabs services.
Situation analysis is effective and essential to expand and explore the business in London’s market. Without conducting situation analysis, the company cannot attain success and targets in foreign market. It is necessity to identify and analyze the challenges, threats and risk of the foreign market. Therefore, SWOT analysis is conducted by Ola Cabs in London’s market that is following:
It has been analyzed that there are various competitors in taxi industry that can affect the growth and business of Ola can in market. The main competitors of Ola cabs include carpooling services, Uber cabs, Meru cabs and Easycabs. Along with this, various competitors in such as green taxi, and Blue & white taxi further may impact on the success and targets of Ola Cabs in the marketplace (Worldweb, 2018).
Segmentation, targeting and positioning strategy for Ola cab
After the various studies, it is noted that segmentation, targeting and positioning is vital and crucial strategy that is adopted by the firm while initiating the business activities and operations in market. The segmentation is done by the company to identify and analyze the right and appropriate target audience in the global marketing. Segmentation is successfully done after considering four areas such as demographic, geographic, physiographic and behavioral. Mainly, the company focuses on the geographic and demographic areas to beat the competitors in new and innovative market (Ooi, Foo and Tan, 2018). The people who mobile from one location to other place for any purpose are included in the segmentation of Ola cab. By using segmentation strategy, the firm would able to cater innovative and unique cab services to the customers in market. Aside this, segmentation helps in maximizing and uplifting revenue and outputs in a large extent (Harding, Kandlikar and Gulati, 2016).
After segmenting the market, Ola cabs decides the potential and effective target audience to serve services to them. The customers who are in need of cabs instantly are counted in the target audience of Ola Cabs. The most of the target market of the company is the age group of 20-45 years, are young, college student and office goers (Venkatesh and Easaw, 2015).
After deciding potential and dynamic target audience, the company caters its services to the customers across the world, one of the significant strategies that can be initiated is positioning. This is vital because it helps in serving potential customers in a hassle free manner. Ola cab uses innovative and dynamic technologies to position its services in the international market. Apart from this, the company uses advanced technologies to bring the higher efficiency, effectiveness and customer experience. without positioning strategy, the company could fail to offer its services to the consumers internationally (Lindroos, La Hera and Häggström, 2017).
The marketing mix is innovative and unique strategy that is implemented by Ola Cabs while expanding the business in market. Ola Cabs is a mobile app utilized as a service provider for personal transportation (Kumar and Kumar, 2016). It is effective and dynamic concept of travelling that used by the customers internationally (Yulia, 2016). The marketing mix strategy covers 4Ps such as product, price, promotion and place. Marketing mix for Ola cabs is elucidated below (Muralidhar, 2016).
Product: It has been stated that Ola Cabs provide ample of services to the customers across the world. It is noted that the firm has expanded its activities and operations in year November 2014 to include autos but this venture was strictly on trial basis. It offers rides in several cities but currently has initiated offering outstation rides to nearby cities also. If the company wants to expand its market into the then it needs to focus on the product strategy in the competitive market (Sahasranamam, 2018). By using this strategy, the company would able to improve and enhance its services in the international market. Without product strategy, the firm can never expect to explore business in some other countries (Marketing91, 2018).
Place: Ola cabs is a Corporation handling and controlling via an online network. Cabs could be easily reserved through its own website and via Ola mobile app that could be download from the Google play store and The app store. It is noted that the firm has initiated its operations and activities from metro city Mumbai in Maharashtra but also moved its based to Bangalore in Karnataka. The firm further has expanded and extended its network to include approx 200,000 cars that are running in one hundred two tier and metro cities like Chennai, New Delhi, Bengaluru, Pune and Mumbai. It is one of the leading and effective strategies that can be used by Ola Cabs while initiating the business in market. By using this strategy, the company could able to identify and analyze the dynamic and attractive locations. (Marketing91, 2018).
Price: The company was valued at 5 billion dollars with its predicted revenue at the end of the year was 62million dollars in 2014-2015 (Marketing91, 2018). The company supported payment via Paytm but after sometimes it added two more options cashless via paytm and cash. It is analyzed from the various analysis that customers are convenience more than prices in today’s modern world. The company further renders ries with comfortable setting with air conditioned and furnished cabs (Kalla and Purohit, 2017). The company needs to offer price flexibility with its wide range of vehicles that entails mid range, economic range and high range. It is analyzed that the company should use penetration policy to cater services in the market. By using this strategy, the organization could able to stand over the competitors internationally. It should set reasonable or appropriate prices for the services so as to attain competitive benefits over rival companies in market. Aside this, it should use a promotional policy and render incentives to maximize its customer base in the new market. By using pricing strategy, Ola Cabs can boost long term profitability and outcomes easily and effectively in the international market.
Promotion: If the company has decided to enter into the market then promotional strategies shall be used by the company in a large extent. Ola Cabs is a growing and fastest Corporation in India related to rental car because it has first mover benefit over the competitors globally. It should adopt an extensive and unique marketing policy to create a dynamic and high brand awareness among the key target audience (Andersén, 2011). The company should further take help of various media channels such as social media, Twitter, Facebook. Instagram and Blogs. Apart from this, Ola Cabs should offer incentives and discounts such as free rides, rupees 50 off and 50% discounted rides to attract maximum number of consumers. Along with this, it needs to provide promo codes facilities to the customers to maximize its customer’s base in the new market (Marketing91, 2018).
Main marketing strategies or theories
Market penetration: It is vital and important strategy that can be used by the company while entering into the new market. The market penetration could be done by stimulating the entire market with innovative services and therefore market penetration. It is successful marketing strategy that would be used Ola Cabs while initiating the business in (Ganguly, Das and Farr, 2017).
Market development: Ola Cabs is extending the practically of its market development theory by stimulating the service innovation. It is more integrated strategy that can be implemented by Ola Cabs. The company should focus on the market development and growth strategy to be a leader in the taxi industry in new market (Nath, Nachiappan and Ramanathan, 2010).
Diversification strategy: The Company can use diversification strategy to distinguish its services from the competitors. Ola Cabs is currently serving globally with 100 countries and is on the way to add up more countries in the queue (Francis, 2018). It is one of the most significant strategies that shall be carrying by the company while expanding business in market effectively. All these marketing strategies would help Ola Cabs to make a dynamic brand image in the minds of the customers globally (Kashyap and Bhatia, 2018).
Monitoring and control
The supervising and control is done by Ola Cabs with using innovative and dynamic strategies and policies in the international market. The company further focuses on the four perspectives such as customer, financial, internal and learning perspective (Rothaermel, 2015).
The major and significant part of the budget is being initiated by the firm in marketing strategies and programs. Approx 1 million budget is set to implement marketing plan for exploring the business functions.
Conclusion and recommendations
It concludes from the above mentioned limelight event that Ola Cabs is one of growing and leading company in India. An effective and significant marketing plan has been made to expand and initiate the business activities and operations. By making marketing plan, the company could easily able to explore the business in the new market. The above analysis shows that how the firm uses marketing strategies such as penetration strategy, market development strategy and diversification strategy in market. The advertising platform or route rendered by Facebook permitted Ola to maximize its customer base manifold. The marketing strategies further support Ola Cabs to tap customers and increase profit margin. SWOT analysis that done by the company also has been explained in the task. Segmentation strategy and targeting strategy are initiated to find out right and potential key target audience. Marketing mix plays a crucial role for attaining desired objectives and goals in market. At the end, budge is made and monitoring is done to implement successful and effective marketing plan. It is recommended that Ola Cabs should firstly identify and analyze the needs and requirements of the key target audience. The firm should appoint an effective and dynamic team to handle and resolve the complaints and queries of the customers on mobile. Promotional and advertisement strategies shall be considered while expanding business strategy. A market survey further must be done by the firm to identify and evaluate the risks and threats of the market.
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