Addison Lee Marketing Strategy Analysis

This assignment analyzes the marketing strategies employed by Addison Lee, a private hire transportation company. It examines factors influencing their market environment, the importance of market segmentation, and the application of the marketing mix (product, price, place, promotion) to attract more customers. The report emphasizes the need for effective marketing strategies considering social media platforms and mobile-friendly approaches to reach their target audience of teenagers.

Marketing and
communications

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
(a) Description of production, product, selling and marketing orientations...............................3
(b) Identify the orientation adopted by Addison Lee with examples.........................................4
Task 2...............................................................................................................................................5
(a) Describe marketing environment analysis and its importance in Addison Lee.....................5
(b) Economic and sociocultural factor and its impact on Addison Lee .....................................5
(c) Identify two key competitors of Addison Lee and discuss its threat to business..................6
(d) Identify two strengths and weaknesses of Addison Lee........................................................6
Task 3 .............................................................................................................................................7
(a) Describe market segmentation and its importance in planning and marketing strategies ....7
(b) Describe two segmentation approaches for segmenting market for 16- 25 years old...........7
Task 4 ..............................................................................................................................................8
(a) Using 7 ps identify current marketing mix of Addison Lee..................................................8
(b) Suggest changes in marketing mix of Addison Lee..............................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is an activity of business which includes promotion and selling of products
and services that includes market research and advertising. Marketing communication is an
activity of conveying messages for promoting the products and services by speaking, writing and
through various other mediums. This report is all about Addison Lee which is a private taxi
hiring services company in the UK. Being a newly appointed marketing manager, some major
tasks are to be conducted through this study. This will include topics like evolution of marketing,
its environment, strategies and marketing mix for this company.
TASK 1
(a) Description of production, product, selling and marketing orientations
Addison lee is a hiring service company found in the year 1975. This company also has
their app which handles 50% of its customer traffic. Description of its products, production,
selling and marketing orientation are as follows-
Products and services- Company is involved in hiring services and has been in
operations from 40 years. Products of Addison Lee includes cabs, taxy, bikes, coaches and
private jets. Services of this business concern are car services, couriers, airport transfers, events
and personal accounts (Khan, and Khan, 2012).
Production- Production department of this company is working efficiently in meeting the
customer’s wants and demands. They are focussing on consumer’s desires, concerns, opinions
and various other forces behind strategic business decisions.
Selling- This company is emphasising on maintaining healthy relationship with its
customers through act of selling. They are using various promotional techniques to achieve the
highest possible sales.
Marketing orientation- This is an important business model for Addison Lee as it
focuses on delivering products and services that are designed as per the desires, needs and
requirements of consumers. This orientation includes components like customers, competition
and inter-functional coordination (Kaplan, 2012). The most important focus is customers and so,
this concept follows delivering superior value to users through innovation and services as per
customer’s needs that directly relate with revenue generation.

(b) Identifying the orientation adopted by Addison Lee with examples
Marketing orientation of this company is focussed on delivering services to satisfy
customer’s demands (Rice, and Atkin, 2012). They are emphasizing on meeting users’ needs
and requirements by providing them quick and quality services. This concern is conducting
regular market survey to identify the latest trends of market so as to adopt these changes in their
services. Two examples of use of this approach in Addison Lee are as follows-
Consumer focussed campaign- This company is focussing more on passengers. They
have high awareness of desires and needs of customers. Their services are passenger centric.
This company takes regular feedback from its clients so that services can be made more effective
and users will be more satisfied. Main aim of this firm is to bring brand loyalty.
Less humble marketing- Recently, this company took steps to make marketing less
'humble' and more consumer facing. Addison Lee owns the 'whole value chain' that means
everything driving from training to innovation should be based on customer- focused principles.
TASK 2
(a) Describing marketing environment analysis and its importance in Addison Lee
Marketing environment analysis is an important activity in Addison Lee. It includes
understanding the external and internal forces that may affect business. These factors are
important to be considered in business and while making marketing strategies to minimize the
potential threats. Importance of this environment analysis before setting marketing strategies are
as follows-
 Merchandising environment analysis helps this company in identifying the tastes and
preference of consumers and current trends in marketing. This facilitates in making
marketing strategies as per the demands of users and marketplace.
 It is important for Addison Lee in planning budget for advertisements and other related
activities (Albarracin, Johnson and Zanna 2014). This also includes information
regarding economic scenario which also influences the marketing decisions.
 This analysis assists in knowing competitors available in market which helps this
company in making marketing strategies to deal with competition and attain competitive
advantages.

 Changes in political and legal environment are uncertain. This can restrict various
marketing activities (Williams and Chinn, 2010). So, selling environment analysis also
helps in knowing such factors prior to marketing strategies which is important for this
company to adopt these changes in decisions.
(b) Economic and sociocultural factors and their impact on Addison Lee
These factors are the major issues in marketing environment. Economic factors are
related with performance of economy and include inflation rate, population, GDP rate, etc. that
directly affects the business whereas sociocultural issues are related with society and it involves
determinants like cultural trends, demographics, etc (Wilson,and et.al. 2012). Both these
elements affects the marketing decisions of Addison Lee.
When there is negative economic condition such as inflation, recession etc.customers
outlook towards services is driving as they gets more attracted towards companies who are
providing taxi services at low fares. Economic conditions affect the purchasing power of
consumers due to which many a times, they move towards service providers at cheap fare. This
affects the business and it is a major threat for this concern.
Social trends are changing as people became more conscious about safety that's why this
company hires women drivers for female customers so that they can feel safe during ride. This
social factor has facilitated growth of this concern and proved to be an opportunity for this firm.
(c) Identifying two key competitors of Addison Lee and discuss its threat to business
Competitor analysis is very important for this company to identify and evaluate their
strategies to determine own strengths and weaknesses. It is a critical part of company's marketing
plan. This helps in knowing what strategies are adopted by rival firms so that better decisions can
be taken to overcome such threats. Uber and Hailo are two key competitors of this company.
Uber provides taxi services through an app. They have more than 3,000 private taxis
offering cheaper rides as compared to other companies involved in same business. Recently, it
announced 10% cheaper fares which grabbed more attention of customers and they moved
towards cheap services. Therefore, it is a threat for Addison Lee as this affected its sale.
Hailo is another big competition for this concern due to its effective marketing strategies.
Advertisements and promotional tools of this firm are way better than Addison Lee. Because of

the same, consumer traffic of this concern is less. It is again a danger for this concern and this
required to adopt effective marketing tools to overcome this risk.
(d) Identify two strengths and weaknesses of Addison Lee
Identification of internal environmental factors of this company is very essential in
knowing strengths and weaknesses that can affect its business.
Strengths- One of the main strong point of this company is being a well recognized
brand due to its quality services and verified cars and drivers. This is most common name
amongst consumers while they think of hiring a taxi or any other vehicle. It facilitates increased
sales for this company (López, and Sicilia, 2013).
It has launched app based services in 2009 which allowed cashless payment system to
users. This includes features like getting cars easily at doorsteps and location can also be tracked.
Due to this, its consumer traffic increased and this turned out to be major strength by improving
business.
Weaknesses – Along with these strengths, it has few weak points too. Charges of hiring
taxis and other services are very high which is allowing other competitors to take advantages of
it. There is very less bonding between company and customers due to app based services. This
rises misunderstandings many times. These factors affects adversely to business of Addison Lee.
Task 3
(a) Describe market segmentation and its importance in planning and marketing strategies
Market segmentation is process of dividing potential customers into various groups and
segments having same level of needs. It is done on the basis of factors like, demographic,
geographic, age, gender, and psychographic elements (Thackeray, Neiger and Keller, 2012.).
This segmentation is very significant in planning and making marketing strategies of Addison
Lee. Division of market helps in identifying closely the needs of particular group of customers. It
helps in focussing more on most complex segments so that planning and marketing strategies can
be made more suitable and effective. This is important to fulfil needs of every segment of
consumers in appropriate manner. It also leads to more sales for this company.
(b) Describe two segmentation approaches for segmenting market for 16- 25 years old
To target 16- 25 years old customers following segmentation approaches can be adopted
by Addison Lee-

Demographic segmentation- It includes dividing segments on the basis of age, gender,
family, income, education etc. This segmentation will help in targetting people of different age
groups separately. It can make marketing strategies more effective and focussed. Therefore, this
division is useful for marketing department of Addison Lee to segment market for 16- 25 years
old users. It assists in knowing closely what services they want and ways to satisfy their needs. It
includes following approaches-
Consumer response approach- This concept is very important for segmentation of market.
This includes choosing marketing strategies including key factors for decision making. This
company can adopt social media advertising to target 16-25 years as this age group is actively
involved in these platforms. This will assist in grabbing more attention of consumers of this
group and they will hire taxis from this company which ultimately leads to profit maximisation.
Customer characteristic approach- This concept includes studying basic features of
consumers on the basis of age, gender, family, income etc. It is very important for Addison Lee
in knowing perceptions and demands of consumers of age group of 16-25. This will be
significant in marketing decisions. Services of this concern can be modified by keeping
characteristics of this age criteria. Due to this, these consumers will get more satisfaction from
services offered by this entity.
Task 4
(a) Using 7 ps identify current marketing mix of Addison Lee
Marketing mix is planned combination of various elements of marketing plan. It is
commonly termed as 7 Ps that includes product, price, place, promotion, people, process and
physical evidences. These elements are adjustable until the adequate combination is found to
fulfil needs and wants of consumers. Current marketing mix of Addison Lee is as follows-
Product- The products of this company includes various services. These are car services,
courier services, coaches, executive car services, airport transfers and event transfers.
Price -It refers to the monetary value that clients pays in order to gain services. Pricing
strategy of this company is different for various services. These are fixed on the basis of number
of services taken, distance of ride, time taken in ride, peak time and non peak time, and daily or
new clients.

Promotion- This company follows latest and different promotional techniques to attract
more customers and enhance sales. Major advertising methods are ads on print media, TV, and
digital platforms (Shah, 2011). They also uses discounts and offers in fare rate to grab more
consumer traffic.
Place- This business concern provides booking services online through their app. This
allows drivers to reach the locations of clients in few minutes.
People- This marketing mix includes human resource of company. This entity has around
1650 employees working in it. Before hiring drivers full background check is conducted to
provide safe and healthy ride to customers.
Process- This company's service involves short process. Customers just need to book
their vehicles through mobiles.
Physical evidence- Addison Lee provides invoices to customer after completion of
services. This is main evidence in this concern.
(b) Suggest changes in marketing mix of Addison Lee
To target customers of age group 16-25 years some changes are to be made by this
company in its products, price and promotion elements of marketing mix (Venkateswaran and et.
al., 2011). In case of product, they can introduce mini cabs and taxi bikes for teenagers. Sharing
cabs services cab be launched by this company so that they can have ride with their friends. In
case of price, services at reasonable fares can be provided to clients of this age group.
Teenagers basically travels on daily basis so, monthly charges policy can also be adopted. For
promotion, this company can use social media platforms because teenagers are more active on
such mediums. They are more friendly with mobiles and they can easily get the messages
regarding offers and new services of company.
CONCLUSION
From the above report it can be concluded that to expand the market it is required to
make effective marketing strategies that will include all factors related with marketing
orientation and factors of marketing environment. Market segmentation is also necessary for
making effective planning and policies. Considering marketing mix is also necessary for
targetting more customers. Addison Lee can follow these activities to attract more clients
towards its services.

REFERENCES
Books and Journals
Khan, A. and Khan, R., 2012. Embracing new media in Fiji: the way forward for social network
marketing and communication strategies. Strategic Direction. 28(4). pp.3-5.
Kaplan, A.M., 2012. If you love something, let it go mobile: Mobile marketing and mobile social
media 4x4. Business horizons. 55(2). pp.129-139.
Rice, R.E. and Atkin, C.K. Eds., 2012. Public communication campaigns. Sage.
Albarracin, D., Johnson, B.T. and Zanna, M.P. Eds., 2014. The handbook of attitudes.
Psychology Press.
Williams, J. and Chinn, S.J., 2010. Meeting relationship-marketing goals through social media:
A conceptual model for sport marketers. International Journal of Sport Communication.
3(4). pp.422-437.
Wilson, A., and et.al. 2012. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
López, M. and Sicilia, M., 2013. How WOM marketing contributes to new product adoption:
Testing competitive communication strategies. European Journal of Marketing. 47(7).
pp.1089-1114.
Thackeray, R., Neiger, B.L. and Keller, H., 2012. Integrating social media and social marketing:
a four-step process. Health promotion practice. 13(2). pp.165-168.
Shah, M., 2011. Talent Retention through Employer Branding. Journal of Marketing &
Communication.6(3).
Venkateswaran, P.S. And et. al., 2011. A Study on Brand Personality Dimensions and Brand
Loyalty towards Raymond Brand. Journal of Marketing & Communication. 7(2).
Online
Evolution of the Marketing Orientation. 2017. [Online]. Available through
:</courses.lumenlearning.com/boundless-marketing/chapter/evolution-of-the-
marketing-orientation/l>. [Accessed on 16th November 2017]