MARKETING PLAN OF UBER DISCUSSION 2022

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Running head: MARKETING PLAN OF UBER
MARKETING PLAN OF UBER
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Introduction
The main purpose of this paper will be to prepare a marketing plan of Uber, who is going
to introduce their two-wheeler services in the region of Australia. A brief overview of the
organization will be given about this globally reputed organization which is based in the United
States. Situation analysis on the current business operations that the management of Uber are
performing in Australia, which will involve SWOT and PESTLE analysis. This will help to
know the exact factors that are followed and need to be followed according to the strengths that
is possessed by this business house. Segmentation, targeting and positioning analysis will also be
done, which will help to target the customers or market segment who will be benefitted by
utilising this new two-wheeler service in the market place of Australia. The marketing objectives
that the management of Uber need to follow for this service will also be discussed in this paper
through SMART objective technique. Recommended marketing strategies will help to target new
set of customers by availing this fresh service in the form of marketing mix, which will help to
increase the market share for this company as well as the revenue earning for this ride-sharing
company. Financial plan will also be provided here, and at last, a brief conclusion will
summarise the main points of discussion in this paper and will end this paper.
Overview of the Organization
As discussed, the organization selected to prepare a marketing plan is Uber. This
company is a ride-sharing organization based in America. It was founded in the year of 2009,
and serves 900 cities across the world through wide array of services. They offer a wide range of
services including ride service hailing, sharing of rides, food delivery and scooter or bike rides.
The headquarters if this company is based in the city of San Francisco in California. Estimated

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recently, they serve more than 110 million users around the world. The company runs through a
mobile application where the passengers can order a ride. According to a dynamic pricing model,
Uber quotes the fare to the passenger while booking a ride. But the price of rides may vary based
on the demand and supply when the ride is requested. Passengers are also offered different
options regarding payment at the end of a ride. They can make the payment in either cash or
card or even through Google Pay, PayPal etc. As the ride gets over, the passenger is also given
the option of rating the driver as well as providing gratuity to him (uber.com/au 2020).
Situational Analysis
SWOT Analysis
Strengths
The main strength that is possessed by this ride-sharing company from America is the
technology used by them. It can be stated that the largest ride-sharing technology is used by this
company. The management has successfully positioned the organization of Uber in all the
regions where they serve the people including Australia through this technology. Currently, more
than 4.5 million people uses the services of this ride-sharing service providing company in 37
cities across the region of Australia (Roy Morgan 2020). The strong brand recognition of this
organization also helped to position them in all the market places where they serve across the
world. They has already overtaken other globally reputed brands like Honda, General Motors
and Ford from the viewpoint of brand value framework. Usage of modern and innovative
features through their ride-sharing application has also successfully strengthen the power of this
business entity, which can also be treated as another major strength possessed by Uber.
Interaction between the driver and the customer along with following the rating system has

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helped to possess a minimum level of performance for the drivers as well as the ride-sharing
service that is provided to the people of Australia (Möhlmann and Zalmanson 2017).
Weaknesses
One of the major weakness that has weakened or hampered the service provided by Uber
is its multiple scandals. Cases like targeted attacks on both the drivers and the customers along
with sexual harassment has defamed the services and the reputation of this organization. Facing
losses in spite of increase in the revenue earning can also be termed as another weakness that has
been faced by Uber since starting their business operations in Australia in the year 2012 (Roy
Morgan 2020). Heavy dependency on the overall workforce is also another major weakness of
this organization, along with the behaviors of the drivers and getting the internet services
efficiently and effectively to avail the ride-sharing services of Uber properly in the market of
Australia (Haider 2015).
Opportunities
The major opportunity that will be enjoyed by Uber is to provide faster transport facility
in the form of this two-wheeler service. The accountability as well as the performance of the
services that are management of Uber are already providing to the citizens of Australia will help
to launch this two-wheeler service. Faster rides can be availed by the people to go from one place
to the other, and they can track their drivers and send messages about the details of the location
through the application. The performances of the top drivers can also get tracked by the
management of Uber, which will help to identify the top performers. Digitalization is another
major opportunity that is enjoyed by Uber in the market of Australia, as the number of people
using smartphones are increasing on daily basis. They will be able to use the features of this
soon-to-be-launched two-wheeler service in the region of Australia. This will help to increase the

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existing customer base that is availed by Uber in Australia, and gain the competitive advantage
against its competitors (Zrenner 2015).
Threats
The main threat that is faced by the management of Uber is the retention of the customers
along with the drivers and employees. It can be stated in this context that advancement in the
area of technology has increased the competition in the area of technology and there are
organizations like Scooti (scooti.com.au 2020), oBike, Melbourne Bike Share, CityCycle, Ofo
and Mobike also provides ride-sharing facilities, through there are limited in one, two to three
cities in the region of Australia (Brandon 2020). This will be a major threat that may hamper the
success of this going-to-be-launched bike service in the region of Australia. Reduction in the
margin of profit may also hamper the flow of quality operations in the market place of Australia
by this organization.
PESTLE Analysis
Political Factors
Political stability in Australia is good, which helps to perform a healthy and swift flow of
the business operations that are performed by Uber in this market place. It can be assumed that
the same will be maintained while launching the two wheeler service in 17 cities across the
region of Australia.
Economic Factors
Uber has possessed a fair rate in the overall Gross Domestic Product growth of this
nation, along with providing employment opportunities to many people in the region of
Australia. The same will be followed when this two wheeler service will be launched, as it will

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help to provide more employment opportunities to the people, which will automatically enhance
the GDP growth of this country (Yulia 2016).
Social Factors
Uber has fastened the speed of movement in the societies where they perform, and it will
be made faster after launching the two wheeler service. But the health and safety measurements
need to be strictly followed by the management to avoid any kind of causalities in this region.
Technological Factors
The total business of Uber is depended on the technology. Thus, it can be stated that the
rapid improvement in the technical field need to be capitalized through this new service, and it
need to be measured how fast it is gaining popularity than the services provided by the existing
service providers present in the market place of Australia.
Legal Factors
Road safety measurements need to be followed in order to avoid any kind of legal
actions, which may hamper both the flow of operations and brand image of the organization.
Discrimination laws are also required to be followed. Everyone who will be engaged in this new
service need to be treated properly, so that a fair business can be operated by Uber in Australia
(Ter Chian Felix Tan et al 2017).
Environmental Factors
The climate and weather conditions of Australia helps in a successful run of their four
wheeler service in Australia, and the same can be assumed in the time of offering the two
wheeler service. But, the safety measurements need to be followed by both the drivers and the
riders so that an eco-friendly service can be provided to the people of Australia.

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STP Analysis
Segmentation
Demographic
Mainly the people between the age group of 18 to 40 years will be targeted, as it has been
seen that most of the Uber users belong from this category. As aged people might possess trouble
to ride the two wheelers, so the young aged people will be the main or primary segment to offer
this service. Millennial will also be another major segment that need to be targeted by the
management of Uber (Moon 2015).
Geographic
Mainly the urban areas will be selected in the region of Australia to provide this two-
wheeler facility. It has been already stated that there are 37 cities in this market place where the
existing four-wheeler service is provided. So, for initial stage, cities from this list will be selected
to provide the service, and it will be increased according to the acceptance and success of the
service.
Psychographic
People who possess a busy lifestyle can be a good segment to avail this two wheeler
service of Uber. Corporate people along with the students who study in universities or high-
schools can be a healthy segmented group to avail this freshly soon-to-be-launched service in the
market of Australia. Interested people who love to ride the two wheelers will also be another
targeted segment for this ride-sharing service provider company from America.
Behavioral
People who already possess a positive thought or are satisfied with the services provided
by Uber can be a good targeted segment under this variable. People who are benefitted by

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availing the existing services provided by this organization and have positive thinking towards
the brand loyalty of Uber will be the targeted segment here (Laptev et al 2017).
Targeting
Differentiating targeting strategy need to be used by the management of Uber through
offering this new service to the people of Australia. This can be noted in this context that the
strategy that is followed by Uber in providing the existing service of four-wheeler will also be
followed here, along with following the SMART objectives and recommended strategies that
will be discussed later in this paper. The targeting will be done after proper evaluation of the
potentiality of growth and commercial attractiveness of the identified segments that has been
discussed earlier in this paper.
Positioning
Pricing positioning strategy will be used by Uber in order to launch their two wheeler
service in selected cities across the region of Australia. This will help to attract the people from
different segments of the society where Uber will operate their services. Positioning the two
wheeler service according to the spending capacity of the society will help to penetrate into this
division of their services and hold a firm position by gaining the competitive against the rival
business houses who already offer this service through the strengths possessed by Uber (Hall,
Horton and Knoepfle 2017).
Marketing Objectives
The marketing objectives of this organization will be discussed through SMART
objectives, which are given as follows:

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Specific – The objective should be specific to one or two segment that has been discussed in this
paper earlier. This will help the management to focus on them specifically and provide them the
best quality service for which the organization is globally reputed for.
Measurable – The success will be measured every after 3 months, so that the strategies can be
altered according to the market conditions and acceptance of this service by the targeted segment
in the region of Australia. This will help to improve the accountability of the team who will
provide the soon-to-be-launched service in the market place of Australia. The service will be
provided from the existing application that is used by the people of Australia.
Achievable – The customer base need to be increased by at least 15% of the existing customer
base of Uber in Australia within the first 3 months. This will help to gain the competitive
advantage more than what is enjoyed by this business entity in the region of Australia. More
revenue can be earned through this new service.
Realistic – Realistic approach need to be followed by the management while providing this
service to the people of Australia. Separate budget of $100 AUD has been allotted by the
management of Uber from the United States, so that superior services can be provided by
launching this two wheeler service to the people of Australia. The service will be available for 16
hours a day, that is from 6 A.M. to 10 P.M.
Time-Bound – The service will be started within 1st May, 2020 in 17 out of 37 cities where the
existing four wheeler service is offered by Uber. After reviewing the success from these 17
cities, the services will be increased in other 20 cities, so that the targeted segment from all these
market places can avail this fresh and innovative service by this ride-sharing organization
(Cannon and Summers 2014).

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Recommended Marketing Strategies
This will be discussed through the marketing mix, which will involve a 7P analysis of the
Australian market, which is as follows:
Product
As discussed, the service will be the two wheeler service, which will be provided by Uber
in selected 17 cities across the region of Australia.
Price
Usage of dynamic pricing strategy in the market of Australia has helped them to gain the
competitive advantage over its rival institutions. A flexible or variable pricing model need to be
followed by the management of Uber, so that alterations in charging the prices can be followed
in the cities where the two wheeler service is going to be launched. As the management already
follows Higher the Demand, Higher the Price policy, this will help to increase the earning of
money when there will be more demand of two wheelers in this market place of the selected 17
cities. The Surge Pricing will help to capitalize on the dynamic relationship between demand and
supply along with the willingness to pay the extra amount to avail the facility of this two wheeler
service (Wu 2019).
Place
17 out of 37 existing cities will be identified by Uber to provide this two wheeler service.
Promotion
Social media pager of Uber will be used to promote this two wheeler service of Uber.

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Physical Evidence
The mobile application through which the existing four wheeler service is used will be
used as the physical evidence. This application can only be used in the mobile phones, which
will be the physical evidence, along with the two wheeler through which this service will be
provided.
People
People who live in these cities will be encouraged to use this service of Uber. They will
be able to use the rating system that is used in their four wheeler service, along with the option to
change the pick-up location even after booking a ride. This will help to save the time for both the
driver and the passenger. The management can also track the service provided by the driver
through the application, where the passengers can rate the driver along with providing a
comment about their ride. This will help to provide a clear and efficient two wheeler service to
the citizens of Australia (Haines 2016).
Process
The process that need to be followed by the management of Uber in 17 cities of Australia
is to provide cutting edge technology. Innovative usage of the technology will help to attract new
customers towards this new service along with retaining the old customers with them. This will
automatically increase the customer base, which will increase both the revenue sharing and
market share for this globally reputed business house in the market place of Australia
(Hajkowicz et al 2016).

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Budget
A separate budget of $100 million AUD has been approved by Uber to promote and
initiate this new and innovative service in the region of Australia.
Conclusion
From the above discussion, it can be concluded that Uber possess an excellent
opportunity to provide this two wheeler service in the selected 17 cities of Australia. The
recommended strategies need to be followed along with the SMART objective that has been
discussed in this paper. The strengths that is possessed will help to capitalize the opportunities
present in the Australian market and gain a sustainable competitive advantage in this region.

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