UrbanClap: Business Model and Impact

This assignment delves into the operations and success of UrbanClap, a prominent Indian platform for booking local service providers. Students are tasked with analyzing UrbanClap's business model, examining its revenue streams, marketing strategies, and expansion tactics. The analysis should also consider the challenges faced by UrbanClap within the competitive hyperlocal services market and assess its overall impact on the Indian economy.

Running Head: Marketing Management and Digital Communication
Marketing Management and Digital Communication
Marketing promotion plan for Urban Clap-Home Delivery Service

Marketing Management and Digital Communication 1
Executive summary
This assignment has discussed the marketing promotional plan of UrbanClap which is
performing well in the Hyperlocal service industry in India. Quality services are being provided
by UrbanClap so as to meet the local service needs of the customers. This assignment has
covered SWOT analysis of the UrbanClap along with Pestle and Five forces analysis. Analysis
of the impact of the market and environmental factors on the performance of UrbanClap has
been discussed in this assignment.
Market trend and industry trend have been discussed in this assignment for the analysis of
the performance of UrbanClap. UrbanClap is has focused on the identification of the opportunity
available in the business market. Target market of UrbanClap has been discussed in this
assignment. Customer analysis has been done for the purpose of identification of the targeted
market, needs of the customers and capability of the business in meeting the needs of the
customers.
Marketing promotional plan has been discussed which have covered various aspects
related to the marketing plan of the UrbanClap. Analysis has been done of the hyperlocal service
industry of India. Marketing strategies have been adopted by UrbanClap so as to cover the
market.

Marketing Management and Digital Communication 2
Table of Contents
Introduction......................................................................................................................................3
Research methods............................................................................................................................5
Situation analysis.............................................................................................................................6
SWOT Analysis...........................................................................................................................6
Customer analysis........................................................................................................................8
Identification of target market..................................................................................................8
Identification of needs of the customers...................................................................................8
Matching the product or service with the expectations of the customers................................9
Current value analysis....................................................................................................................10
Five forces analysis....................................................................................................................10
Pestle analysis............................................................................................................................12
Marketing promotion plan.............................................................................................................14
Introduction................................................................................................................................14
Target market.............................................................................................................................14
Industry trend.............................................................................................................................14
Marketing objectives..................................................................................................................15
Marketing strategies...................................................................................................................15
Marketing mix............................................................................................................................16
Customers of Urbanclap.............................................................................................................17
Marketing budget.......................................................................................................................18
Conclusion.................................................................................................................................19
Conclusion.....................................................................................................................................20
References......................................................................................................................................21

Marketing Management and Digital Communication 3
Introduction
This assignment has been initiated on the topic “Marketing management and digital
communication” in which marketing promotion plan of UrbanClap will be discussed. UrbanClap
is considered as one of the fastest growing startups in India which was founded in the year 2014.
At present, there are over 300 people employed in UrbanClap and 65000 professionals listed
with UrbanClap. UrbanClap is a mobile marketplace for the services offered at local levels.
UrbanClap provides services for fulfilling the needs of customers by hiring trusted professionals
for them. Services are being offered to the customers at their doorsteps by the passionate and
young staff working for enhancing the quality of life of people. UrbanClap is providing
plumbing services, event planning service, auto service, logistics service, health and fitness,
business services, home repairs, teaching guitar, decorating home, home care and service and
getting candid photos for the weddings. UrbanClap has created a platform for the establishment
of a connection between the customers and professionals (UrbanClap, 2018).
The motive behind providing these services under one roof is to enhance the satisfaction
level of the customers. Wide ranges of choices are offered to the customers in the low budget by
the trusted professionals. Guaranteed services are offered to the customers by developing a
healthy relationship with them. There is a direct interaction between the customer and
professional. Services are being offered at the doorstep of the customers or the venue selected by
the customer by the verified vendors (Adage India Bureau, 2016).
A chain has been followed by providing services to the customers effectively. This chain
includes four steps which ensure that quality services are offered to the customers. The first step
of the chain is a selection of the desired service which customer wants to avail. Next step is

Marketing Management and Digital Communication 4
browsing and booking the service selected by the customers need to their venue. Next step
provides a base to the customers for making comparison and analysis by the required service and
available service. Next step includes chatting, communicating and hiring of the professional to
whom customer wants to hire for the work. For the purpose of targeting the customers,
UrbanClap has used internet-based platforms in an effective manner. Search ads, social media
platforms, videos, websites and an application is being used by UrbanClap for reaching its
customers (Team Inc42, 2015).
This assignment will discuss the different aspects related to the marketing promotional
plan of UnbanClap so as to develop the knowledge and identifying different aspects of the
marketing plan of UrbanClap.
(UrbanClap, 2018)

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Research methods
Qualitative method of data collection will be used for the collection of the quality data by
secondary sources. For the preparation of the marketing promotional plan, focus will be on
assembling the data with the use of internet sources. Research will be done using secondary
sources so as to gather relevant data regarding the Hyperlocal service industry of India.
Secondary sources are the second hand data which are collected by others for their work and
used by the researcher (Turkenburg & McAuley, 2013).

Marketing Management and Digital Communication 6
Situation analysis
UrbanClap is performing well in this competitive environment so as to enhance the customer
base. UrbanClap is operating its operations over 16 cities in India and Suburbs. UrbanClap has
entered into a collaboration with Snapdeal for helping the consumers so as to book or buy the
services with the help of popular mobile applications.
SWOT Analysis
Strengths Weaknesses
 Funds are available with UrbanClap
which has helped in the execution of
the operations smoothly. Investors are
available which are investing in
UrbanClap.
 UrbanClap has developed a reputation
in the market. This reputation has
helped UrbanClap in enhancing
customer base of the company.
 Delivering service is another strength
of UrbanClap. UrbanClap is focusing
on delivering the service within the
short span of time for maintaining the
 Lack of proper management is one of
the most important concerns which has
acted as a weakness for UrbanClap.
There is a need to implement proper
management so as to enhance the
performance of the organization and
effectiveness of the operations.
 Risk process of UrbanClap is less
effective. Risk process determines the
chances of success and identification of
the risk factors (Law, 2018).

Marketing Management and Digital Communication 7
quality of the service and satisfaction
level of the customers (Guha, 2016).
Opportunities Threat
 UrbanClap can focus on enhancing the
quality of the products as to gain the
attention of the customers. This
opportunity can be used for the
expansion of the customer base and
area of operation.
 Reducing the time of delivery will also
help in enhancing the performance of
the organization. Time involved in the
delivery of the service is the main
concern for customers. The decrease in
the delivery time will encourage the
customers to consume the services
offered by UrbanClap.
 Developing new products another
opportunity for UrbanClap. New
products can be developed by
UrbanClap which will help in attracting
 New competitors are entering the
market with the existing one. This rise
in the level of competition has the
potential to create an impact on the
growth potential of UrbanClap. Its
main competitors are Timesaverz,
Housejou, LocalOye and Zimmber.
 The decrease in the market demand can
also create an impact on the
performance of UrbanClap. With the
rise in the competition in the business
environment, there has been fall in the
market demand of the customers (Sen
& Adury, 2017).

Marketing Management and Digital Communication 8
customers and satisfying their needs
(Sardar, 2016).
Customer analysis
Identification of target market
Marketing technique used by UrbanClap is Word of Mouth for the promotion of the products or
services offered. Target market has been divided into different segments so as to identify the
target market in a better manner. Different segments in which the target market is divided into
are on the basis of working people, students and household people. The focus of UrbanClap is on
the local market so as to enhance the customer base by attracting the local potential customers.
Local customers of the different cities are being targeted by UrbanClap (Hoontrakul, 2018).
Identification of needs of the customers
For the identification of the needs of the customers, UrbanClap has identified the issue related to
the local services available to the customers. People were facing the issue in hiring the
professionals for local services who are trustworthy. The main motive behind redefining the
UrbanClap was to analyse the manner in which local services and servicemen can be hired by the
people. UrbanClap identified an opportunity in this analysis which formed a base for the
formation of UrbanClap. From the personal experiences, Founders of UrbanClap identified that
people are facing issues in hiring trustworthy and reliable local service providers (Bhargava, et.
al., 2015).

Marketing Management and Digital Communication 9
Matching the product or service with the expectations of the customers
For matching the requirement or needs of the people, UrbanClap has launched the different
services under one roof. UrbanClap is growing at a very fast speed and has caught the attention
of the investors. At the end of the year 2015, UrbanClap was considered as one of the most
funded start-ups of the hyperlocal segment.There are various competitors present in the business
environment and for enhancing the customer base, there is a need to match up with the need or
expectations of the customers (Rawat & Kanoria, 2015).

Marketing Management and Digital Communication 10
Current value analysis
Five forces analysis
Rivalry: competition in the business environment is high which need to be monitored at regular
intervals for the analysis of the impact of competition on the performance of the organization.
There are various existing competitors operating in the business environment which are creating
an adverse impact on the customer base of UrbanClap.Main existing competitors of UrbanClap
are Zimmber, Housejoy, LocalOye and Timesaverz. For enhancing the performance of
UrbanClap, there is a need to deal with the competition in an effective manner (Gupt, 2016).
New competitors: with the change in the business environment, there has been a rise in the
number of companies entering into the market. These new competitors act as a threat to the
organization. UrbanClap is operating in a competitive environment in which new entrants are
entering the market. UrbanClap needs to identify the market in which it is operating so as to
analyze the market trend. Strategies need to be adopted for gaining a competitive advantage over
the existing competitors and new entrants (Community Writer, 2017).
Counterfeit products: different substitutes are available in the market which are offering same
services to the customers for meeting their expectations. Different local service providers are
offering services to the customers so as to meet the needs of the customers. UrbanClap is
offering quality services to the customers. Professionals are hired by UrbanClap for providing
services to the customers (KPMG, 2016).
Buyers being power: buyers hold the power to control the price and quality of the services
offered to them. Buyers are the target of the company and focus is on meeting the expectations of

Marketing Management and Digital Communication 11
the customers. UrbanClap is focusing on meeting the needs of the buyers by hiring trusted
professionals.
Suppliers being power: Suppliers for UrbanClap are the professionals who are registered or
listed under UrbanClap. These professionals are providing high-quality services at the doorstep
of the customers. These suppliers are listed under UrbanClap who are holding the power to
control the market. Suppliers hold power to control the operations of the industry (KPMG,
2016).

Marketing Management and Digital Communication 12
Pestle analysis
Factors Impact
Political factor Political factors can be explained as the impact
of the political parties on the performance of
the business. There is less or no impact of the
political factor on the performance of
UrbanClap (Chandiok, 2015).
Economic factor Funds are available to UrbanClap in adequate
quantity. This availability of funds has helped
UrbanClap in offering quality services for
meeting the expectations of the customers.
Social factor Competition is rising which can affect the
performance of UrbanClap. Taste and
preference of the customers play a vital role as
for the marketing of the services of UrbanClap,
internet platforms are being used. People prefer
offline professionals for the local services
required by them at the home, office or other
venues (Mint, 2017).

Marketing Management and Digital Communication 13
Technological factor Technological advancements are taking place
in the business environment. UrbanClap is
using Internet-based platforms for offering
services and for the promotion and marketing
of the services.
Environmental factor Environmental factors have the potential to
create an impact on the performance of the
operations or delivery of the services to the
customers. UrbanClap has to identify the local
professionals for offering services to the
nearby places effectively (Chandiok, 2015).
Legal factor Laws and rules and regulations have been
formulated by the government of India. These
laws, rules and regulations need to be followed
by UrbanClap for operating properly without
facing any legal consequences.

Marketing Management and Digital Communication 14
Marketing promotion plan
Introduction
UrbanClap is providing local services to the customers and potential customers by hiring the
local professionals to the venue of the user. This marketing promotion plan has been prepared for
UrbanClap so as to identify the different aspects related to the marketing function of UrbanClap.
This marketing promotional plan will cover the analysis of the target market, trend prevailing in
the industry, marketing strategies adopted by UrbanClap, marketing mix and budget for the
marketing of the services offered by UrbanClap.
Target market
UrbanClap is a mobile marketplace for the purpose of offering local services to the customers.
Trusted and qualified professionals are being hired by UrbanClap for meeting the expectations of
the customers. For the purpose of providing services, UrbanClap has targeted market by dividing
the segment into different parts. These different segments have been divided on the basis of the
different types of users. These different segments include students, working people and
households. These different segments have been targeted by offering different types of
professional services as per the need of the customers. Different services include event planners,
health and fitness, business service, auto service, home decors, logistics service, home care and
services and home repairs (Anand & Kumar, 2013).

Marketing Management and Digital Communication 15
Industry trend
UrbanClap is operating in the hyperlocal service industry in India. There is tough competition in
the industry in which UrbanClap is operating. The hyperlocal service industry is a growing
industry in which changes or innovations are taking place on regular basis. For the purpose of
providing quality services, there is a need to provide innovative services. Top competitors of
UrbanClap are Timesaverz, Bro4u.com, Snapdeal, Housejoy and Zimmber. These companies are
offering similar services to the customers which have affected the performance of UrbanClap.
Change in the tax rates for the services provided by UrbanClap has created an impact on the
profitability of the companies operating in the hyperlocal service industry in India. UrbanClap is
a privately owned company which is operating from its headquarter located in Gurgaon, India.
The demand for the services offered through online mode is increasing. This increase in the
demand has increased the potential for the hyperlocal industry in the market of India (Narayan,
et. al., 2017).
Marketing objectives
The objective of the marketing plan of the UrbanClap is to expand the area of operation by
attracting the customers and providing quality services to the customers. Marketing objectives of
UrbanClap include growth in the industry for holding a large share of the hyperlocal service
industry. Another objective is to enhance the traffic towards the website of UrbanClap and this
can be done with the help of attracting the potential customers. Strategies will be decided which
will help in attracting the potential customers (Mathew, 2018).

Marketing Management and Digital Communication 16
Marketing strategies
Marketing strategies of UrbanClap are focused on enhancing the positioning of UrbanClap
among the customers as well as competitors. UrbanClap is considered as one of the best on-
demand service providers in India operating in the hyperlocal service industry. For the purpose
of communicating with the customers in an effective manner, UrbanClap has adopted TVC for as
a promotional strategy for the company. A major issue in the hyperlocal service industry is due
to the quality and trust of the product or service. For overcoming these issues, UrbanClap has
focused on TVC as a promotional tool for generating trust among the customers. Another
strategy adopted by UrbanClap is Blog digital marketing strategy. Blogs are being used by
UrbanClap for making people aware of the services offered by the company. Websites and blogs
are effectively meeting the objectives set by the organization (Bhasin, 2018).
Another strategy adopted by UrbanClap for communication with the customers is a
digital marketing strategy. Social media platforms are being used by UrbanClap for the purpose
of communicating with the customers and potential customers. Facebook, Twitter and Instagram
are being used by UrbanClap so as to enhance the communication process between the
organization and customers. UrbanClap has entered into a collaboration with Snapdeal so as to
offer the services with the help of another platform. Collaboration has enhanced the effectiveness
of the operations of urbanClap and contributed towards the enhancement of the customer base of
UrbanClap.Collaboration has helped in establishing real-time communication between
UrbanClap and customers, sharing the information and enhances the relationship between both
(Eide & Paige, 2011).

Marketing Management and Digital Communication 17
Marketing mix
Product: Numerous services are being offered by UrbanClap to the customers so as connect the
customers with the trusted service professionals. Quality services are being offered by
UrbanClap to the customers. Local services are being provided by the trusted professionals who
are listed with UrbanClap. Different services are provided by the professionals listed under
UrbanClap to the customers (Mint, 2016).
Price: third and forth models are being used by UrbanClap for the purpose of pricing the
services offered by it. Third model applied to the direct booking of the service by the customer.
Forth model applied in the cases where client has to be introduced to the professional while
providing the service. Primary Goals of UrbanClap is to establish a good position in the market
and developing trust among the customers rather than earning profits. Payment is made by the
professional to UrbanClap for getting registered and client also pays a certain amount for
availing the services.
Place: UrbanClap is providing quality services in the different parts of the country so as to meet
the expectations and needs of the local customers. Reliable services are being offered by
UrbanClap to the customers. UrbanClap is one of the largest service marketplaces in India.
Anyone can available the services offered by UrbanClap by using the application on mobile
(Mint, 2017).
Promotion: for the promotion of the services offered by UrbanClap, social media platforms are
being used. Analysis of the demand and supply is done for the purpose of providing adequate
services. Offline and online strategies are being used by UrbanClap for the promotion of the
services (Mint, 2017).

Marketing Management and Digital Communication 18
Customers of Urbanclap
One of the most important task for every organisation is to identify the targeted market to whom
products or services are being offered. UrbanClap is operating in the hyperlocal service industry
of India and focusing on meeting the need of the local people for the local services. UrbanClap
has identified this opportunity and used it for the purpose of accomplishment of the target. There
are different segments of the society which have been targeted by UrbanClap for offering the
local services. These different segments have been divided on the basis of the type of need of the
individual. These segments are offered services on the basis of their needs. This approach of
UrbanClap has helped in meeting the expectations of the different segments of the society. The
focus of UrbanClap is on enhancing the customer base by fulfilling their needs so as to attain the
objectives set (Mint, 2017).
Marketing budget
The budget has been prepared for the implementation of the marketing promotional plan. This
budget has been prepared with a motive to guide the efforts in the right direction and covering
the different marketing activities within the budget. The budget for the implementation of
marketing promotional plan of UrbanClap is attached below:
Particulars Amount ($)
Advertising 6,000
Salary 8,000

Marketing Management and Digital Communication 19
Research 4,000
Expert Fees 12,000
Training expenses 5,000
Equipment 4,000
Total 39,000
Conclusion
Thus, from the above conclusion, it has been stated that it is essential for every organization to
develop a marketing plan on the basis of which marketing activities are carried out of the
business. In this marketing promotional plan of UrbanClap, the discussion has been made
regarding the industry in which UrbanClap is operating, analysis of the targeted customers and
competition prevailing in the market and marketing mix which can be used by UrbanClap for the
promotion of the services offered.

Marketing Management and Digital Communication 20
Conclusion
Thus, from the above discussion, it can be summarized that UrbanClap is offering online services
to its customers with the help of highly qualified professionals. The vision of UrbanClap is to use
the technology and providing start access to the structure of the service market to the customers
in India. This assignment has enhanced the knowledge of the different aspects of the marketing
promotional plan of UrbanClap which is a growing service provider company in India. Strategies
adopted by the UrbanClap have been discussed along with the marketing mix of UrbanClap.
Analysis of the industry trend has been done in this assignment for identifying the performance
of UrbanClap.

Marketing Management and Digital Communication 21
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