Uber's Marketing Communication Strategies

The assignment examines the diverse marketing communication strategies employed by Uber to achieve its business objectives. It delves into push, pull, and profile communication techniques, highlighting their implementation and effectiveness in attracting and retaining customers. The analysis emphasizes the role of these strategies in building customer relationships, driving demand, and fostering brand loyalty.

Marketing
Communications

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1. Context analysis of Uber of United Kingdom.........................................................................1
2. Evaluation of strategic components for Uber..........................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing communication is an approach used by various enterprises to convey their
messages to various branches. These messages include informations about company's product
which can be shared to customers also. This would help consumers to know services of
organisations so that they can avail for their enjoyment. In addition to this, marketing
communication is taken as essential tool by managers to build brand awareness in consumers.
This process aid employers to to analyse how many customers are used their products on regular
basis and what perceptions they are made after using services. In order to see importance of
marketing techniques, this mention report focuses on a transportation company named by Uber.
It offers mega-ride sharing to local citizens of country in which this firm operates business. In
order to provide services to customers in a wide manner, its managers adopt various
communication strategies. This assignment also explain business and buyer context along with
marketing strategy (Albarracin, Johnson and Zanna, 2014).
TASK 1
1. Context analysis of Uber of United Kingdom
For providing information about company's products and services to customers in short
interval of time, organisations like Uber use effective marketing communication. This process
includes various activities related to build communication with customers in an effective way. In
addition to this, it helps in influencing behaviour of customers in a positive way.
Uber profile and background
It is one of a leading transportation company of UK which was established in the year
2009 by Travis Kalanick and Veterans Garrett. The first branch of this organisation is
headquartered in San Francisco, USA. This enterprise offers various types of services like
taxicab, ride-sharing, food delivery as well as vehicle services to people. It has established
business in 633 cities of the world. In addition to this, Uber has provided online applications to
people to access its services and on cheap rates. The main purpose behind offering services at
low cost is to expand transport business in more regions. According to statistical point of view,
this firm has expanded its business operations first time on 14th March in more than 33 new
regions. Along with this, currently it has more than 400 working employees who give their
contribution in providing services in better manner. Expansion of business at international level
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aid Uber to generate huge amount of revenue as well as gain high return on investment. As
estimated in the year 2017, it has earned around US $7.5 billion.
Nature of business environment
Business environment that was provided by Uber is not so good as per the reviews and
feedbacks taken form customers or published in newspapers articles by some renowned
personality. Employees who were working in this organisation were not skilled or adequate with
customer relation as they were bringing incomplete and unreliable solutions to clients. This
transformed as one of the biggest drawback, relations amongst employees were also not
appropriate and back stabbing of co-workers can be seen at workplace. Therefore, overall
environment and nature of business was destroying the image of company in front of customers
because of which their sales and profitability was also decreasing.
CONTEXT ANALYSIS
Context analysis is used as most beneficial method for a company in analysis the
environment of business in which it operates. Evaluation of environment includes determination
of macro factors which impacts directly on operational activities. While context analysis are used
to evaluate both micro and macro factors which affects business in a large manner. Analysis of
such attribute help management in formulating effective strategies and policies used to
accomplish desired objectives in an appropriate way. These measures are required to make an
action plan properly which provide information based on the impact of macro-environmental
factors. In addition to this, it is taken as primary stage of planning in which new areas are
identified to grab opportunities in more effective manner (Kaplan, 2012).
INTERNAL AND BUSINESS CONTEXT
Business context is also used to examine environment of business organisation. But is
consider internal and external environmental features in order to make sure that policies and
practices are lead better result. For Uber Company, its first choice comes in existence when a
customer wants to ride sharing or avail service. It provides various types of services according to
preference and lifestyle of customers. Its services are mostly used by consumers who are price
conscious. Therefore, for welfare of people and gaining their retention with services, this firm
has offered various discounts on regular basis to customers. Along with this, using marketing
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communications, its management convey various messages to provide informations to its regular
customers about offers and discounts. In UK marketplace, Uber services has provided tough
competition to various online transport companies who are dealing in same business. As it
provides services on much low cost as compared to other service provider. So, it has emerged the
business in marketplace of UK in a better manner. Currently, due to emerging of various
companies, its management has focused on developing Uber Taxi service in the rural places also.
This would help in increasing number of customers of distant places (Luxton, Reid and
Mavondo, 2015).
Business is considered as one of the important process which every company should
determine so that they can identify the needs and requirements so that it can be delivered to
stakeholders in a better manner. Thus, it is utilised by most of the organisation in order to get
appropriate results. Uber is one of the renowned organisation that provides services in context
with ride sharing. Although the company is operating its business in an effective manner but
there are some of the elements that must be determine so that they can identify the need of
developing marketing communication.
Internal Context:
Perception of risk issues (Settle & Alreck): Such theory is related with the risk that
may faced by Uber while providing cab services to maximum number of people. Such risk may
related with:
Technical issues: Uber app malfunctions or something happens with user Driver partner
account they have nob recourse. Uber also provides email support system but it doesn't give an
immediate response which decreases the satisfaction level of customers.
Safety: Picking up strangers and drop them at destination which is generally small in
space could be risky for drivers. For this, Uber gives a option to customers to pre-select their
destination area.
Unable to predict uncertainty: Sudden road blocks, accidents that block the usual routes
amy brings difficulty among Uber driver. For this, Uber need to hire experienced drivers who
knows routes. It is further analysed through conducting SWOT analysis which help
understanding the nature of the company in a better manner. This will help them in evaluating
internal component of the organisation so that environment of the firm can be easily identified.
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Therefore, some of the factors that are mentioned below to understand the situation in an
effective manner:
Strengths:
 Uber is one of leading organisation that is trying to give excellent services to its
customers as a result it is gaining loyalty of consumers. Firm is using on-demand-service
model so that they can provide better facilities in order to satisfy the needs and wants of
clients. Thus, they are providing services through online and offline process.
 Organisation is giving facilities under very low fixed investment as a result it is assisting
them in keep on the commitment of customers towards their services and facilities. As a
result it is helping them in generating more and more revenues for the organisation. Employees of this company are very committed towards their work and they are very
much concern about the safety and security of the customers (Maarek, 2011).
Weaknesses:
 lack of improper communication can be seen between the superiors and drivers because
of which their performance gets affected.
 Cost of maintenance is very high as compared to the salary that are given to drivers.
 As the organisation is a business based firm and tries to get maximum profits by
implementing limited amount of money in their goods. Relationship between customers and company is not appropriate as a result it sometimes
not gain much profit and chances of controversies may arises.
Opportunities:
 With the increase in growth of market area most of the opportunities also arises. Uber is
provided job facilities to many of the individual which is helping the organisation in
increasing maximum number of profits.
 By upgrading their system they can limit the time of waiting for consumers.
 Other than this, organisation can collaborate with other firms in order to increase their
sales and productivity. Along with this company can expand their services in some other areas also like taking
patients to hospitals and many more.
Threats:
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 Lacking behind form other firms is the biggest threat that are faced by most of the
organisation. Rash and self driving is the main concern for the organisation.
Buyer's Context:
This is considered as most significant element for company and with help of this, they
will examine requirements and demands of people. In this manner, they will easily accomplish it
timely. In context of Uber, they are offering numerous services to clients as this enables them to
improve their position in market and revenues as well. It is essential for company to cater
qualitative items to individuals. Manager of an enterprise need to conduct research; hence, they
will be able to know about perception, behaviour, attitude, learning style etc. of person. Some
strategies will be formulated by an enterprise so they will capture attention of numerous people
towards them (Marsden, 2010).
Company develop a mobile app with proper security, which contain current location and
in addition, they are using latest method for promotion as well as advertisement. They are
operating their business at international level; hence, it is required for them analyse needs and
requirements of people because each one is having their own culture which is following by them.
Segmentation of customers: It is must for an enterprise to classify their market as per
age, gender, location etc. of individual. In this, consumer need to be analysed on the basis of
different specification, such as accessible, measurable and distinguishable.
Discover their demand: Each client want high quality services and in addition cosy rides.
Thus, it is required for Uber to provide administration accordingly as this enables them to gain
attention of numerous people towards them as well.
Development of customer profiles: Profile of Uber and related information and data is
much associated with target clients and in addition their description. There are many elements
which will include into this, background, objection, responsibilities etc. This has been analysed
that, in UK more than 10% adults are using Uber on constant basis. In this manner, firm is
improving their revenues and sales effectively.
Bridging the gap: It is required for an enterprise to reduce gap amongst firm and their
clients as this helps them to maintain brand image at marketplace. As a result, they will easily
achieve coveted targets and goals within certain time span.
Nature of buyer according to situations
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Uber comes amongst the top most leading company in terms of start-ups, they have
started this business in order to provide services to customers so that they can travel from one
place top another in an easy and effective manner. In context with buyers, and to strengthen the
process company must think with the perspective of buyers and they can ask frequent questions
to themselves like: Who will be the buyers? Uber is targeting customers who belongs to
millennials age group (in which people of age group between 22 to 37 are considered).
Therefore, for this company can make customer segmentation. Why customers will buy our
services, what will be buyer's mindset? As people of millennials are working in large number In
United Kingdom and for them Uber has started their services. This has helped them in travelling
from one place to another for different purposes. According to the mindset company is charging
less thus, it will increase their sales and profitability and assist them in maintaining a better
relation with customers. How customers can avail their services? All these services can be
availed by simply download an application and register themselves for free and moreover if they
want to become prime customers than consumers have to pay a small amount so as to become a
prime customers and enjoy services and facilities.
STAKEHOLDER CONTEXT
Stakeholders are the one who gives maximum support in achieving growth and success of
an organisation in competitive market environment. Stakeholders includes customers, suppliers,
shareholders, government, community etc. Therefore, it is important for Uber to analyse the
shareholder mix with the help of Mendelow's Matrix. It is essentially important for an
organisation to perform business activities on the basis of stakeholders as they play a valuable
role in functioning of business operations (Shah, 2011).
Stakeholder mapping: It is considered as visual representation of stakeholders analysis
and manage people on the basis of their skills and knowledge. As they provide enough support to
an organisation therefore it is the responsibility to identify their needs and requirements and
should focus on fulfilling them in better manner. For an example, a supplier of providing cab
facilities facilitate Uber to provide cab services to the maximum number of people. Hiring cabs
in exchange of giving some amount of payment help them in giving cab services to maximum
number of people. It undertakes necessary process in context in order to consider the main
stakeholders of the Uber company which are given as below:
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Illustration 1: Stakeholder context
Box A: Minimum Efforts- In this, the power and interest of stakeholders are minimum as
they are much satisfied with the performance of an organisation. For example, giving maximum
payment to owners of hiring vehicles maximises their satisfaction level. (Thackeray, Neiger and
Keller, 2012).
Box B: Keep Informed: Under this, it is the responsibility of management of an
organisation to communicate with stakeholders and inform them about the plans and policies
formulated by them so that they show much interest in the business operation of an organisation.
For example, changes in pricing policies affects the income of vehicle renders which forces them
to show more interest in every plans and policies made by Uber.
Box C: Keep satisfied: Under this, it is important for management to maximise the
satisfaction level of stakeholders so that they show less interest and interferences. For example,
Giving fixed amount of salary to suppliers irrespective of inflation or deflation situation
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increases their satisfaction level due to which showing less interest in the plans and policies
made by Uber.
Box D: Participation: Under this, stakeholders has given full rights and power to interfere
in business activities and perform according to their plan and discussed policies. For example, to
get higher income car renders are willing to engage in decision making process of Uber in order
to ensure about their income.
Uber business organisation are depend on the support of stakeholders thus the
management should required to maintain healthy relation with them and give maximum efforts
in maximising their interest and satisfaction level (Upadhyaya, 2012).
ENVIRONMENT CONTEXT
Business environment is complex in nature which changes frequently due to which lots of
problems has been arises which create problems and issues in front of an organisation. The
management should required to analyse them carefully through conducting PESTLE analysis and
accordingly implement corrective measures to reduce negative impact. According to the
environmental protection agency, the average passenger vehicle emits 4.7 metric tons of CO2 per
year. In the three years, Uber should have contributed 94000 metric tons of CO2 into the
atmosphere of New York City alone which equals to nearly 101 million pounds of coal burned.
A city welcomes Uber onto its roads where the people spend less time stuck in traffic or looking
for a parking space. According to the CEO of Uber, the city will be healthy and clean if the
fewer cars on the road contains less carbon pollution which can be possible through using Low
emission hybrid Uber vehicles. Giving option of pooling cars also an effective step to protect
environment. The vision statement of Uber states that when the people forego car ownership then
the city's overall vehicle miles travelled also decreases due to which the less gasoline is
consumed and fewer emissions are generated. from pollution. In September 2017, Uber
partnered with Carnegic Mellon University with a ope of advancing driverless car technology
Some academics have claimed a world full of self-driving cards connected to an Uber-like
service could reduce fossil fuel use by lessening the time people spend in traffic or looking for
parking. It is further discussed through PESTLE analysis of Uber company are which briefly
stated as below:
Political factor: Every country have their own rules and regulations which need to be
comply by the company who are operated their business operation in such country. As Uber has
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given services to different countries due to which it becomes difficult for management to
understand each country's rules and regulations and taxation policies. This will may creates
problems for them while doing business in diffident countries (Wallnöfer and Hacklin, 2013).
Economic factor: Such factor my also affected business of Uber. Sharing an economy
has created huge employment opportunities to individual. Uber has generated more job vacancies
as cab drivers to maximum number of people which makes positive impact on the economy of
country as well.
Social factor: Uber provides 24/7 hours cab services to the people due to which the
people are more reliable on their services. They charged minimum fare from the customers as
compared to other taxis due to which maximum number of people prefer to use their services
instead of their rivals.
Technological factor: Using advanced and updated technology may bring easiness in
executing business activities. Therefore, it is essentially required for every business to use such
technology in order to improve efficiency and effectiveness of firm. Uber has developed app
through which their customers can book their rides and gives feedbacks on their journey as well.
It helps them to know the areas on which they need to worked on (Williams and Chinn, 2010).
Legal factor: Uber has indulged in many controversies related to providing safety to their
customers due to which their brand image are also affected. Therefore, to survive business in
different countries, the company should required to comply with legal laws and legislation such
as copyrights, safety laws, labour legislation etc. so as to operate their business activities without
facing any difficulties.
Environmental factor: It is related with the factors which affects the sustainability of an
organisation. As Uber engaged in provide cab services to the people which causes air pollution.
This will damage the environment which create negative impact on the people as well. To protect
environment, the company has given an option to customers to share their rides with others so
that less cab services are used in providing services. They have also launched Pilot project which
is also known as Uber green in which riders are request for green ride by tapping the button.
2. Evaluation of strategic components for Uber
Marketing communication is the effective strategy which includes application of
approaches by the organisation to provide their messages regarding existing product and services
to their existing and potential customers. The main aim behind the use of this approach is to
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influence the behaviour buying behaviour of customers. It provides the opportunity regarding the
attraction of the large number of customers, build good brand image, higher number of profits,
ascertaining higher position in market, large market share etc.
The management of Uber uses this strategy for attraction of the large number of
customers is to use their ride sharing services and bring awareness among the individuals of
society about their different kind of innovative offerings (Wilson and et. al. 2012). In this regard
the different strategies which they decided to adopt are defined below:
 Push communication: One of the effective method one message or information is
transmitted by any one person. It helps in transferring of the information from the point
of receiver to sender. In such type of communication there is no physical interaction
between both the parties. It is assumed by the sender of the information that the message
is understand by the receiver automatically. The modes which are used under this method
regarding disseminating of information includes letters, e-mails, reports, faxes, memos
etc. The major disadvantage which is associated with the use of this method is that there
is no certainty about the delivering of message. The main aim behind the using of this
approach of communication is that is to provide the information about their existing
products and services to their end customers. The benefits which are attained by Uber
trough application of this method is attraction of large number of customers to improve
their market share and earning of large number of profits. E-mail is one of the method
which gives some kind of assurance regarding delivery of the information to sender. The
major examples of this strategy are defined below:
- Promotion with the helps of packaging design
- In store displays
 Pull communication: This approach of marketing and adverting is totally different from
push strategy. Here, individuals are not forced to read the information. The main
emphasis is provided on the development of communication channels which contributes
in attraction of large number of customers (What is marketing communication, 2013).
Behind the application of this strategy is to provide the maximum outputs to their
customers. For effective implementation of this kind of strategy, organisation is required
large amount of funds. The customers are automatically attract towards their brand. The
different modes which are used for communication of information includes websites,
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wikis, magazines etc. The reach of such kind of modes is more wide and helps to spread
awareness among larger section of society. As per this strategy customer demand is
created with the helps of different offerings like free samples, coupons, discounts etc.
One of the effective strategy to use when the demand of their product and services is
high. The main examples of this strategy includes:
- Promotion with the helps of mass media
- Providence of discount and reduction campaigns
- Customer's relationship management
 Profile communication: One of the different strategy which totally different from push
and pull. As per this strategy, more focus is provided on stakeholders and keep them
update with the information which happen in organisation on regular basis. It helps the
organisation like Uber is to build effective bond with them attains their full support in
different business activities (Rice and Atkin, 2012). The different modes which are used
in this regard includes e-mails, newsletters and progress reports. The main examples of
this strategy includes:
- conferences and meetings
- Sales kick of videos
- Events and functions
all the strategies helps the management of Uber is to effectively accomplish their targets
within stipulated period of time. It helps to understand the different preferences of their
customers and make changes in their existing services. As per market research, 65% of
customers are satisfied with their services.
CONCLUSION
It has been concluded from the above report that marketing communication is one the
strategy and approach which is used by Uber for improvement of their earnings. It helps the
organisation is to spread the awareness among the customers about their different offerings. It
also helps in building of effective communication channel with customers for retention of them
for longer period of time. Through providence of the services as per their requirements helps in
attainment of their trust and loyalty towards their services.
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REFERENCES
Books and Journals
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Online
What is marketing communication (MarCom)?. 2013. [Online]. Available through
:<https://www.marsdd.com/mars-library/what-is-marketing-communication-marcom/>.
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