marketing analysis paper

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=92


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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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List of References

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Kotler, P & Armstrong, G et al. 2010. Principles of Marketing: Global and

South African perspectives. Cape Town: Pearson Education South Africa.

Tarrant, H.2011. With millions of smartphones in South Africa, where are all

the apps. [Online]. Available:http://memeburn.com. [2012, April 25].

Unknown author, 2012. Road Transport. [Online]. Available:

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ConsumerScope, 2011. The 4 Lifestyle Levels. [Online]. Available:

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Nielson, 2012. Consumers OK with Ads if the Apps are Free. [Online].

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ads-if-the-apps-are-free/. Accessed on 26 April 2012

Sharper Innovations, 2012. Mobile Stats. [Online]. Available:

http://www.sharper-innovations.co.ke/index.php/mobile-stats. Accessed on 25

April 2012

George, R. 2010. Product, branding and services strategy. In Principles of

Marketing. Edited by C. de Nobrega. Pinelands, Cape Town: Pearson

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Vigar-Ellis, D. 2010. Customer-driven marketing strategies: Creating value for

target customers. In Principles of Marketing. Edited by C. de Nobrega.

Pinelands, Cape Town: Pearson Education South Africa (Pty) Ltd. 196-231.

Tait, M. 2010. The marketing environment. In Principles of Marketing. Edited

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