Case Studies in Marketing Management

This paper explores the marketing management of Grab company within Singapore and Southeast Asia market. It covers product-market structure, environmental influence, target segment, sales forecasting method, CRM strategy, corporate social responsibility, opportunities and threats. The proposed new product is commodity delivery services.

Running head: CASE STUDIES IN MARKETING MANAGEMENT 1
Case Studies in Marketing Management
Student Name
Institution
Table of Contents
Introduction.................................................................................................................................................3

CASE STUDIES IN MARKETING MANAGEMENT 2
Question 1...................................................................................................................................................3
A. product-market structure....................................................................................................................3
B. Environmental influence and the competitive force...........................................................................4
Question 2...................................................................................................................................................5
A. Target segment Geographic, demographic and psychotropic.............................................................5
The demographic market target segment...........................................................................................5
Geographic target segment.................................................................................................................5
B. Sales Forecasting Method...................................................................................................................6
Question 3...................................................................................................................................................7
A. CRM strategy dependent for Grab......................................................................................................7
B. Corporate Social Responsibility...........................................................................................................7
C. Opportunities and threats most likely to face Grab.............................................................................8
Question 4...................................................................................................................................................9
A. Proposal for new product....................................................................................................................9
B. Grab’s pricing strategy.......................................................................................................................11
C. Grab promotional strategy in South-East Asia...................................................................................11
Conclusion.................................................................................................................................................12
Reference..................................................................................................................................................14

CASE STUDIES IN MARKETING MANAGEMENT 3
Introduction
Marketing management is an important element of marketing that largely contributes to
the success of a company or the marketing department. Marketing management entails market
structure, the market environment, target market segment, sales forecasting methods and
corporate social responsibility. In light various market components, there is need to add another
product to the company's products to leverage the brand. Grab is a transport company that uses
Smartphone app to deliver taxi and bike service to passengers or customers. Marketing
management also takes into consideration various marketing forces that determine the sale
volume and supply. One of the methods that are used to forecasting sales volume is composites
of sale force opinion method and takes into account the volume of sales that have been done by
agents or drivers of the past years. The method is chosen due its accuracy and reliability since the
method is not affected by market conditions. The following paper explores the marketing
management of Grab company within Singapore and Southeast Asia market.
Question 1
A. product-market structure
The market where the grab taxi is positioning in the oligopolistic market with several
players and the best strategy is emerge positioning strategy. Grab taxi is positioned in the
emerging market and the market structure is there are many different competitors that are likely
to compete with the company and being an emerging company this acts as the best opportunity
for the product or service to gain the customer share hence its position in the market (GrabTaxi,
2015). The emerge market structure is a new market structure since the company and its products

CASE STUDIES IN MARKETING MANAGEMENT 4
was launched in few years ago. The market includes new players that are also competing to take
their position within the market.
B. Environmental influence and the competitive force
The business environment under which the company operates can be analyzed based on
various countries and competitive forces within the Southern Asian region. The company was
originally launched in Malaysia from where it spread to many countries within the Southeast
Asian nations. Some of these countries the company has extended its operation include Malaysia
Thailand, Singapore, Vietnam, Indonesia, Philippines, Myanmar, and Cambodia. Some countries
have incorporated the technology into their transport system and a good example is Malaysian
Public Land Transport Commission (SPAD). The Philippines temporarily stop the operation of
Grab Bike for lack of guidelines (Tan, 2016).
Secondly one of the competitive forces that has influence in the taxi industry at the time
of launch of the Grab Taxi is the government. The taxi business is majorly controlled by the
government of countries found in the region. For instance, in Singapore, the main player in the
business is the government that offers regulatory and licensing services for those companies that
wish to enter the market (South China Morning Post, 2014).
Thirdly, another competitive force that has a direct influence on the taxi business is a
group of business influence people. The taxi business within the Southern Asian region is
controlled by politicians, military personalities, and thugs. According to Aaker and McLoughlin
(2010), the taxi business under which Grab Taxi operate is largely dominated by many
politicians such as minister that play a critical role in the operation of the business in the country.

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These players have influence in both financial and regulation of the market (Dewald & Bowen,
2010).
Question 2
A. Target segment Geographic, demographic and psychotropic
The target segment can be grouped based on geographical factors, demographic factors
and behavioral segments that influence taxi businesses within the ASEAN.
The demographic market target segment
Grab Taxi should consider demographic factors within Southeast Asia and demographic
target present market segment in terms of population characteristics that has influence in the
marketing and delivery of taxi services. Singapore is one of the dense population countries with
5.6 million permanent residents which increase the market for Grab services and there is more
taxi service required to reach the demand. For instance, one characteristic of the demographic
targeted is psychographics that mainly look into the lifestyle of many people living in Singapore.
Most of the people living permanently in the country are homeowners and this is 90% indicating
that a better taxi service convenient as Grab Taxi is required (Jansen, Moore & Carmen, 2013).
Geographic target segment
Secondly, geographical segmentation is another target segment that Grab need to focus
on as the region under the company’s coverage is vast. The geographical areas that are
represented by Singapore include mainly of an island and several islets and this is a larger
geographical area. In addition, the company needs to focus on the larger geographical area
beyond the Singapore borders. The area that Grab needs to cover the taxi network is

CASE STUDIES IN MARKETING MANAGEMENT 6
approximately 721.5 km2 (278.6 sq mi) and this is majorly islets. The company needs to focus on
areas such as Bedok that has more 280,000 people making the city one of the largest in the
country (Sherlock, 2014).
B. Sales Forecasting Method
The best sale forecasting method that can be used in Grab is composites of sale force
opinion method. The method is chosen due to its accuracy and the ability of the method to
produce reliable data. The composites of sale force opinion method are based on that opinion
from salespeople on the ground. The opinion is obtained from those involved in marketing which
in the case of the Grab are drivers and the general sales agents of the company. The bottom line
of the business is based the past volume of the sales made by sale persons and are used to
analyze projected sale volume. The marketing department of the Grab data can be used to
forecasts the volume of the sales that are projected (Armstrong, 2012).
To calculate the sale forecast and the expected sale in the near 3 years, Grab can use the
data of downloads and number of drivers or riders and users to forecast revenue for the coming
three years. Currently, the company app has experienced 90 million downloads with over 5
million people using the app. The number of drivers or agents using the app is estimated to be
over 5 million (Purnell & Carew, 2015). The number of cities that are within the Grab usage
network are 195 and there is within the Southeast Asia market. Over the last 5 years, the number
of downloads has moved from 50 million to 90 million, the revenue has increased from $2.5
billion to $6 billion. Many market research indicates that in 2025 the total revenue will be $13
billion following the doubling trend that has been observed over the past five years. This,
therefore, leaves no doubt that the number of downloads will be 124 million within the next three

CASE STUDIES IN MARKETING MANAGEMENT 7
years. This also projects an estimated increase of $3.5 billion within the next three years. The
overall revenue of the company within those three years, therefore, will be $9.5 billion
(Cunningham, 2018).
Question 3
A. CRM strategy dependent for Grab
Drivers are required to register as users before starting services with Grab and these data
are used for the various purpose to create value for the company in the course of CRM. Some of
the data that are captured include telephone, email, and social media. Firstly, Grab has applied
customer relationship management that uses register data to evaluate the service offered to
customers (Lee, 2014). Secondly, the company has data from driver register is a most important
aspect of CRM that gives the company information on the location and personal information.
Thirdly, data such as telephone forms the core of contact during the service delivery and also
enable connection between company, driver and the customer. In the course of using the
application drivers registering enable the company to connect the client to the driver. In addition,
the data captured by the company assist the company to evaluate the service quality that is
offered to customers. The company also uses the data captured upon registration for improving
service that is offered to commuters during customer relationship management (Radhika, 2017).
B. Corporate Social Responsibility
Corporate social responsibility involves taking responsibility for the environment and
social wellbeing. The mission is grounded on improving safety and accessibility alongside
improving lives of riders and drivers. The corporate social responsibility as part of the
company’s activity can be divided into two environments and wellbeing.

CASE STUDIES IN MARKETING MANAGEMENT 8
The wellbeing of drivers and customers is a core responsibility of Grab and this is evident
in a number of ways. Firstly, the company has medical insurance for passengers and drivers to
secure the safety of customers while enjoying the ride or taxi services. Secondly, the company
has various initiatives that aim to better the lives of both customers and drivers. This includes
safety measures that have been developed to cater for the social responsibility of the company
towards the society and environment. The wellbeing corporate social responsibility has also be
demonstrated through the response of the company to various key players that include its
competitors. According to Chong (2017), the company is strict towards behaviors such as sexual
assault or abuse that has been reported by customers.
The corporate social responsibility for the company towards the environment touches a
number of initiatives that aim to better the work environment. The corporate social
responsibility towards the environment entails various activities that the company has undertakes
for the past years (Wieland & Handfield, 2013). The environmental CSR focuses ensuring that
cars and bike used by the company do not pollute the environment and exhibit stewardship
towards the environment. Maintenance of safety during the ride has environmental impact since
the company’s responsibility aims to better lives and environment. One of these activities
includes reducing the hostility created by rival companies in the course of operation
(Bhattacharya, Sen & Korschun, 2011). For instance, Grab has shown professionalism when
dealing with the conflict between its drivers and local drivers as many Grab riders and drivers
have been reportedly assaulted in Malaysia and Philippines.

CASE STUDIES IN MARKETING MANAGEMENT 9
C. Opportunities and threats most likely to face Grab
Grab is one of the pioneer companies in Smartphone taxi services is most likely to face
both opportunities and threat alike.
There are many opportunities that Grab has in the near feature and this is within the
Singapore market or internationally. Firstly, Grab through its research department has identified
the gap in demand for the service within Singapore that needs to be filled. This is important as it
offers the opportunity for the company to fill and gain a substantive position in the Singapore
market. Secondly, Grab's market position with Southeast Asia is making the company to gain
reputation hence larger market share. Moreover, the company is currently the largest in the
region and this is particularly contributing to increasing demand for its products within this
market. Thirdly, Grab through its local approach has caused the company to outcompete other
larger companies such as Uber. The approach is making the company to penetrate local market
hence becoming competitive and this is attributed to the competence research department of the
company (Cheong, 2014).
There are some threats that are most likely to effects the operation in the near future
within the taxi. Firstly, stiff competition is an important threat to the operation of the company
as many companies such as Uber are also taking their market share within Southeast Asia market
(Low, 2015). In addition, local operators and local taxi or bike companies are bringing high
competition in the market. This has resulted in conflict and assaults of many Grab operators.
Secondly, the poor relationship between Grab operators and passengers has been an issue since
the inception of the company. Assault of passengers has been an issue that has also resulted in

CASE STUDIES IN MARKETING MANAGEMENT 10
conflict and court cases as many customers have reported by assaulted or harassed leading
dismissal of such drivers (Channel News Asia, 2015).
Question 4
A. Proposal for new product
The need to take on the larger market requires another product that can be included in
the products that Grab already have. The proposed product is commodity delivery services as
this remains one of the services with demand in the market. Commodity delivery service
involves customer making order and the products are delivered to that customer at any location.
This product will fill the gap between customers, Grab and the retailing services and the three
will benefit from the products. One of the areas that make local riders to compete effectively
with Grab riders is the ability of these local riders to pick commodities and deliver them to the
customer at a specific location. The new product will take into consideration commodity delivery
prices within the market based on the location of the customer (Jobber & Ellis-Chadwick, 2012).
Screening of commodity delivery service as new products is based on the three
beneficiaries of the service. Screening the benefit of this product to the customer, the company
and the retailer is important as it will bring on board the value chain for the new product.
Focusing on the delivery of service to the customer is the primary goal of the company and this
can also be achieved through the delivery of commodities to these customers. The company
needs to do research on a new product in order to leverage the brand. The company can also use
its many technology platforms to identify potential uses of the new product (Michael & Ilkka,
2013).

CASE STUDIES IN MARKETING MANAGEMENT 11
Evaluating the product and the market test will require doing trials prior to incorporating
the product. Evaluation of the products requires making a simulation model for the product based
on the market conditions. The products will make a three-factorial connection that includes the
Grab company, point of collection of the commodity and the driver or rider. When testing this
product, the simulation will involve these three major players in the product chain. The proposed
product chain will start with the customer booking of the delivery service through the Grab app
and the company will contact the relevant driver who upon accepting service will collect
commodity from store or retail and deliver product to the customer (Yon, 2015).
B. Grab’s pricing strategy
The company has a pricing strategy that it uses to run its operation with the Singapore
market. One of the pricing strategies is dynamic pricing strategy that is used by the company to
run its activities. The dynamic pricing strategy has been used in the transport sector as it is
proved to be flexible depending on the demand and supply of services with the market (White,
2014). Dynamic pricing strategy or model takes into account two main factors and these include
time and market forces. Firstly, as the demand rises the company set price depending on the
demand and the number of the supplier of service who is the drivers or riders (Spann, Fischer &
Tellis, 2015). The demand and supply forces set the dynamic nature of the price under this
strategy. Secondly, another factor that determines the pricing of taxi or ride services is time as
some hours within the week or time of the day determines the price of products. In addition, time
factor that is a determinant of dynamic pricing can also be classified into peak season and off-
peak seasons or hours that cause the variation in price (Lee, 2014).

CASE STUDIES IN MARKETING MANAGEMENT 12
C. Grab promotional strategy in South-East Asia
Grab has many promotional strategies that the company uses to penetrate into the market
within Southeast Asia. The two common Grab promotional strategies in South-East Asia include
driving cashless payment and technological products promotion.
Technological innovation that makes use of hyperlocal areas is the important approach
taken by the company. The company uses the advanced technology to locate areas with high
demand for marketing and delivery of services. The company has been using its analytical
technology to analyses the data on market demand and other customer-related data. This data
gives the local demand level that then makes the company's promotional areas of focus. This has
helped the company take a center in the southeast Asia market. The promotion strategy work in
hand with innovation strategy that applies various technologies to market the product within this
Southeast Asia market (Chaffney & Ellis-Chadwick, 2012). For instance, GrabHitch is a
platform that allows car commuters to identify areas of high car demand.
Driving cashless payment methods is another promotion that Grab uses to reach
customers. With the innovation approach used by the company, the company is advocating for a
cashless payment method for the safety and security of customers. The company is on the verge
of promoting the cashless as this reduces the incident of customers assaulted by riders or drivers
due to payment issues. Driving this payment method has also helped the company to reach local
operators in a bid to increase customers in the local areas. Furthermore, the company uses this
strategy to solve the currency issues that is experienced outside Singapore as the method uses
common currencies for cashless payment. Cashless payment come as a result of another
promotion strategy that used by the company that takes into account better service drive. This

CASE STUDIES IN MARKETING MANAGEMENT 13
other strategy focus on better service to the customer and cashless payment is one way of
improving service delivery to customers. For instance, the company launches GrabPay Credits
that assist in top-up via ATM networks (Radhika, 2017).
Conclusion
In conclusion, marketing management forms one of the success elements of a company
since it determines the sale efficiencies and sale volume. Grab company has been one of the
companies using innovation to create a cost-effective taxi service in Singapore and Southeast
Asia. The company has various marketing strategies and this has enabled the company to
penetrate the local market as much as an international market of Southeast Asia. The most
appropriate sale forecasting method used within the company is composites of sale force opinion
method as it provides accurate data required for forecasting revenue. The company needs to
introduce commodity deliver service to customers as a new product to leverage its brand.

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