Market Segmentation and PESTLE Analysis for Addison Lee

This assignment examines the application of market segmentation and PESTLE analysis to the business operations of Addison Lee, a prominent transportation company. It emphasizes the importance of identifying distinct customer groups through market segmentation to effectively tailor services and enhance customer satisfaction. The assignment also highlights the use of PESTLE analysis, a tool for evaluating political, economic, social, technological, legal, and environmental factors influencing the business environment. By understanding these external forces, Addison Lee can formulate effective strategies to navigate challenges and capitalize on opportunities.

MARKETING AND
COMMUNICATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Production, Product, Selling and Marketing orientation followed by Addison Lee..............1
B) Marketing orientation of Addison Lee...................................................................................2
TASK 2............................................................................................................................................3
A) Marketing environmental analysis of the Addison Lee.........................................................3
B) Macro environmental factors of Addison Lee.......................................................................4
C) Micro environmental factors of Addison Lee.......................................................................4
D) Internal environmental factors of Addison Lee....................................................................4
TASK 3............................................................................................................................................5
a. Concept of segmentation.........................................................................................................5
b. segmentation approaches........................................................................................................5
TASK 4............................................................................................................................................6
a. Addison lee's marketing mix...................................................................................................6
b. Changes to product, price and promotion of Addison lee.......................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Addison Lee is an company which is engaged in delivering mini cab services to the
client. This particular private limited company is founded by John Griffin and delivering its
services to the users of greater London (Downey, 2014). The marketing concepts is the exchange
of offering with clients in return of some benefits to the company. Marketing develops a
compunction with the users of services of an business with their workforce to develop a relations
of exchange of offerings. In this particular report various types of marketing orientation concept
are discussed along with analysing the internal, macro and micro environment of organisation
which contribute in profitability of firm. This particular assignment also discusses about the
various marketing strategies which contribute in increasing the sales of firm in many folds.
TASK 1
A) Production, Product, Selling and Marketing orientation followed by Addison Lee.
The companies are following up different type of orientation in marketing their products
and services in the commercial environment the companies are focusing on increasing sales of
the firm through entailing on different process to promote the organisation product sales (Benner,
Hooper-Kyriakidis and Stannard, 2011). There are following orientation of marketing activities
which are followed up by organisation which are discussed below.
Basis of
differences
Production Product Selling Marketing
Definition This emphasis on
following up
mass production
in the
marketplace.
This emphasis on
enhanced quality
and features of
the product or
services.
The company is
developing a
marketing plan to
sell the products
to the taregt6
markets.
This follows up
an customer
centric
approaches in
carrying out
business
activities.
Starts with Production
operations
Development
department
Factory or
business firm
Market
Purpose entailed To increase the Increase in the Increase the sales Enhance
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Basis of
differences
Production Product Selling Marketing
production
volume
features delivered
through product
volume satisfaction level
of customer
Orientation Expanding
production line
Differentiating
production line
Existing product Customers needs
Means Increasing
production rate
Research and
development of
new features and
attributes in
product
Selling and
promoting
Integrated
marketing
End with Profit through
accomplishing
higher demand in
marketplace
Accomplishing
differentiated
demand of
customers to
make profit.
Profit
development
through enhanced
sales volume
Developing profit
through
satisfaction of
customers.
B) Marketing orientation of Addison Lee.
The sited company is following up both product and marketing orientation in the working
environment in order to contribute higher probability of the firm through delivering enhanced
features in the services of mini cab which leads to higher satisfaction level of the customers
accomplishing needs of marketing orientation concepts of organisation (Addison Lee At your
service. 2017).
Like for an example the company is adding new features in their services that the cab will
be available in within 10 minutes after booking in any part of the London. Also providing cab
facility enables with 4G Wi-Fi services to the customers which provides extra benefits to the
users and provided with a experienced driver providing a good leisure time of travelling and
good experience with organisations services all these product oriented activities will ultimately
contribute in accomplishing all the needs of customer and enhancing the satisfaction level of the
Addison lee in many folds.
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TASK 2
A) Marketing environmental analysis of the Addison Lee.
The marketing environment of any of the business organisation is made up different
attributes that influences the functioning strategies of the company at large. The marketing
surrounding of business can be categorised in different types i.e. internal aspects are controllable
in nature by the business activities while the external micro and macro factors are not under
complete control of the business firm (Anderson, McCormack and Lee, 2012). These should be
managed appropriately in the functioning of firm in order to reduce the interrupting affects of
these macro and micro aspects to company profitability. These marketing environmental analysis
is necessary for the company in order to access about the various growth opportunities available
in the market and also access the various risk and threats which can interfere with the success of
the firm. The Addison Lee should be responsibly active in accessing the internal as well external
environment which may affects the effectiveness of the strategies developed and extracted profit
from these tactics. The PESTLE analysis is carried out in order to access the external marketing
environment. Like for instance the various attributes like Political, Economical, Sociological,
technological and environmental issues all affects the organisational strategies at large.
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Illustration 1: Product and marketing orientation of Addison Lee, 2017
Sources 1: Addison Lee At your service. 2017

B) Macro environmental factors of Addison Lee.
The various macro environment factors like economical and socio cultural aspects of
macro environment largely affects the profitability of the firm. Economical attributes of the
country largely affects the marketing strategies of the comply at large (Addison, Portugal and
Vilares, 2017). Addison providing strategies and the discount rates all are affected by the
employment rate, inflation rate, exchange rate etc. to large extent. While the sociocultural beliefs
like travelling with own car and developing trust with cab drivers all largely affects the
individual choices in booking for a cab while travelling.
C) Micro environmental factors of Addison Lee.
The micro environment factors are somewhat controlled by the internal function of the
Addison lee company while somehow the firm has to take precautions in action plan while
dealing with change in micro environmental aspects of the business. The company is having
threat from the power of rivalries (Addison, Portugal and Vilares 2015). Like for instance the
Uber and Ubicab. The company is facing a direct competition from the Uber and Ubicab which
largely affects the marketing plan of Addison lee and also affects the profitability of the firm at
large.
D) Internal environmental factors of Addison Lee.
The internal environmental aspects can be accessed through carrying out SWOT analysis
of the firm which are controllable by the various functioning strategies of organisation in order
ton contribute ion higher profitability (Benner, Hooper-Kyriakidis and Stannard, 2011). The
Strength of the Addison lee is that the firm is providing cab equipped with facilities like Snooze
button provided to the client mobile app by which on clicking on that option the user can book
minicab for later arrival. While the weakness of the Addison Lee is that the organisation is facing
high range of competition because of lower prices for cab are provided by the other companies
like Uber.
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TASK 3
a. Concept of segmentation
Market segmentation: It is the marketing concept which divides market and customers
on the basis of similar taste, demand and preference (Hastings and Domegan, 2013). One market
segment includes the individual which have same thoughts and line of interests and have same
reaction if the market fluctuates. So, the company can segmented the market on the basis of
gender, age, income, occupation, marital status etc.
Various approaches of market segmentation: There are various approaches to divide
the market. These approaches are described below:
 Psycho-graphic segmentation: This type of segmentation is based on the lifestyle of
persons. The lifestyle of person includes about their interest, attitude, values.
 Behaviouralistic segmentation: The customers are divide into smaller groups on the
basis of their loyalty towards particular brand. This helps the company to understand
about their preference over another brands.
 Geographic segmentation: This is use by company to divide the market on the basis
different areas which have similar features. This helps the company to make strategies for
such areas.
 Demographic segmentation: This is the simple and widest type to divide the market.
Market is divide on the basis of age, income, occupation etc.
Importance of market segmentation on Addison lee
There are many benefits of market segmentation on Addison lee:
 Customer needs: This helps the company to understand the needs of customers and
make the strategies according to that.
 Profit potential: It helps in create more new customers and ideas for their products and
services.
 Retain customer: This helps the company to make good relation with their customer.
b. segmentation approaches
Addison lee uses two approaches to divide the market. These approaches helps the
company to make the strategies according to that and attract more customers (Shah, 2011). The
approaches which are used by management of company are demographic segmentation and
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psycho-graphic segmentation. These approaches helps the company to divide the market on the
basis of 16-25 years old peoples.
 Demographic segmentation: It includes the segmentation of market on the basis of
income, age, occupation etc. Addison lee is London based hire company which provides
the services related to minicab, courier, motorcycle taxi etc. The management of
company divides the market on the basis of age of customers which belong to 16-25
because this age group covers large number of customers (Grunig, 2013). This helps the
company to make plans as per their preferences and meet their demands. This helps to
expand their business and make popular between such age group of peoples.
 Psycho-graphic segmentation: This includes the segmentation of market on the basis of
lifestyle of consumer. Lifestyle of consumer includes about their attitude, interests and
values. As per chosen age group between 16-25, this segmentation helps the company to
understand their lifestyle, interests and values which helps the company to increase their
profit. This age group of people like to go for outing with friends and make shopping
online. This helps the company to understand their needs and provide the services
according to them.
TASK 4
a. Addison lee's marketing mix
The management of Addison lee is uses the 7P's of marketing. This helps the company to
make effective strategies and implement them in more proper manner. 7P's of marketing mix
which are use by Addison lee are described below:
 Product: This is the important for Addison lee to provide the products and services
according to customer preferences. The services which are provide by company are
minicab, courier, coach, motorcycle taxi etc.
 Price: It is the important factor which helps the company to attract the large number of
customers (Bacile, Ye and Swilley, 2014). Plan of the company is to attract the people of
16-25 age group, in which most of the persons are student. So, the pricing should be
according to their capability of spending.
 Place: This is the important factor about the place where the company provided their
services. For this purpose company uses two segmentation approaches to divide the
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market and attract the persons between the age group of 16-25. This helps the company to
expand their business.
 Promotion: This includes about making of strategies to advertise the services and offers
provided by company (Ballantyne and et. al., 2011). The methods which are used by
company for advertisement are social media, print media, electronic media.
 People: This include such group of customers on which company focuses more. They
clearly make policies to attract the customers between the age group of 16-25.
 Processes: This includes about the processes which are used by company to operate their
activities. This helps in easy operation of business activities.
 Physical evidence: It includes about quality and better facilities provide them in between
the delivering their services.
b. Changes to product, price and promotion of Addison lee
To achieve the objective of expansion of the activities of company and increase the
profitability, Addison lee has to make changes in their product, pricing and promotion.
In its product and services company can add more features as this will help enterprise in
attract more number of customers which will increase profitability of enterprise.
In case of price of its product company can go for unique price strawberry or odd price
strategy as this will help enterprise in expand its business activities in other areas.
For promotion of its products and services Addison lee can use various tools of
communication available in order to attract more number of customers.
In context with place, all efforts must be done by Addison lee to offer its services in
different areas so company can serve more number of customers as this will enhance profits of
enterprise.
CONCLUSION
From the above information, it can be compact that concept of market segmentation can
be use by firm Addison lee in order to make small identifiable groups from whole population to
better satisfy the needs of its customers. Tool called PESTLE can be use by managers of
Addison lee in order to identify the main factors exist in business environment and how they
affect business operations of enterprise. With help of this managers can formulate better and
effective policies for business.
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REFERENCES
Books and Journal
Addison, J. T., Portugal, P and Vilares, H., 2015. Unions and collective bargaining in the wake of
the great recession.
Addison, J. T., Portugal, P and Vilares, H., 2017. Unions and collective bargaining in the wake of
the Great Recession: evidence from Portugal. British Journal of Industrial Relations.
55(3). pp.551-576.
Anderson, E. , McCormack, M and Lee, H., 2012. Male team sport hazing initiations in a culture
of decreasing homohysteria. Journal of Adolescent Research. 27(4). pp.427-448.
Bacile, T.J., Ye, C. and Swilley, E., 2014. From firm-controlled to consumer-contributed:
Consumer co-production of personal media marketing communication. Journal of
Interactive Marketing. 28(2). pp.117-133.
Ballantyne, D and et. al., 2011. Value propositions as communication practice: Taking a wider
view. Industrial Marketing Management. 40(2). pp.202-210.
Benner, P. E., Hooper-Kyriakidis, P. L and Stannard, D., 2011. Clinical wisdom and
interventions in acute and critical care: A thinking-in-action approach. Springer
Publishing Company.
Downey, G. L., 2014. The machine in me: An anthropologist sits among computer engineers.
Routledge.
Grunig, J.E. ed., 2013. Excellence in public relations and communication management.
Routledge.
Hastings, G. and Domegan, C., 2013. Social marketing: From tunes to symphonies. Routledge.
Shah, M., 2011. Talent Retention through Employer Branding. Journal of Marketing &
Communication. 6(3).
Online
Addison Lee At your service. 2017. [Online]. Available through:
<http://www.stanleyspost.com/portfolio/at-your-service/>.
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