Marketing in an international environment

This paper discusses the marketing strategies used by Ola Cabs to enter the London's market. It covers SWOT analysis, product strategy, price strategy, distribution and promotional strategy to beat competitors in the competitive market. The paper also discusses future challenges, risks and measurement systems. The marketing objectives, situational analysis, segmentation, targeting and positioning strategy, marketing mix, and main marketing strategies or theories are also covered.

Running head: Marketing in an international environment
Marketing in an international
environment
2018

Marketing in an international environment
Executive summary
Marketing strategies are significant and unique to explore and survive business at international
level. Ola cabs Company has been taken in the task which is trying for entering into the
London’s market. The paper discusses that how Ola Cabs uses innovative strategies such as
SWOT analysis, product strategy, price strategy and distribution and promotional strategy to beat
the competitors in the competitive market. The future challenges, risks and measurement system
also have been discussed in the paper. More detail of the task has been discussed below.
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Marketing in an international environment
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Summary of Assignment 1..........................................................................................................................4
Marketing objectives...................................................................................................................................5
Situational analysis......................................................................................................................................5
Competitors.................................................................................................................................................6
Segmentation, targeting and positioning strategy for Ola cab......................................................................7
Marketing mix.............................................................................................................................................7
Product strategy..........................................................................................................................................8
Place strategy..............................................................................................................................................8
Price strategy...............................................................................................................................................8
Promotion and distribution strategy...........................................................................................................9
Main marketing strategies or theories..........................................................................................................9
Problem identification and solutions.........................................................................................................10
Future management control and measurement systems.............................................................................10
Budget.......................................................................................................................................................11
Conclusion and recommendations.............................................................................................................11
References.................................................................................................................................................11
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Marketing in an international environment
Introduction
The paper provides a brief information about marketing plan that is used by Ola Cabs before
implementing the business in London’s market. Ola Cabs is an online cab services provider
corporation based in India. It is continuation part of assignment 1 which discuss the marketing
strategies, SWOT analysis and STP strategies. The marketing objectives are decided to enter into
the new market. Situation analysis is conducted by Ola Cabs and key target audience is also
evaluated and identified by the company while initiating the business in London’s market. The
marketing strategies that adopted by Ola Cabs also have been elucidated in the task.
Ola Cabs is an Indian origin online transportation network Corporation which is developed and
built by ANI technologies Pvt. Ltd. The company was formed in 3rd December 2010 in India. Its
headquartered is situated in Banglore, Karnataka, India. The firm has announced to expand and
explore its business activities by introducing or launching operations and activities in New
Zealand as well. It is one of the biggest rideshare Corporations across the world. The firm has
decided to expand its business in London’s market. The company is energetic and young
company based in Mumbai. It is using innovative and advanced strategies to stay in the
international market. The main mission of Ola Cabs is to provide a dynamic marketplace for all
types of cab and car on rental basis. Ola plans to monitor on and explore in the London’s market
and is customizing its activities and operations to suit the needs and requirements of its local
market. The marketing plan for Ola Cabs while entering into the London’s market has been
discussed below.
Summary of Assignment 1
The brief information about the business activities, operations and success of Ola Cabs had been
explained in the assignment 1 briefly. The paper further discussed about the potentiality of
London’s market for Ola Cabs. The history of Ola Cabs and their expertise in managing and
operating in the Indian market also had been explained in the task. The paper also outlined that
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Marketing in an international environment
how Ola Cabs conducts situational analysis to compete with rivalries in London’s market. The
market growth and opportunities in London’s market also further briefly had been discussed in
assignment 1. Pestle analysis was done in assignment 1 to evaluate and identify the risks,
challenges and opportunities in London’s market.
Marketing objectives
The objectives for Ola cabs have been detailed below.
 To provide reliable, hassle free and technology efficient and effective car rental services
to the customers in London.
 To improve and enhance the rental cab system in the country.
 To uplift and enhance the profitability and revenue.
 To satisfy the needs and expectation of the customers by proving excellent cabs services.
Situational analysis
Situation analysis is effective and essential to expand and explore the business in London’s
market. Without conducting situation analysis, the company cannot attain success and targets in
foreign market. It is necessity to identify and analyze the challenges, threats and risk of the
foreign market. Therefore, SWOT analysis is conducted by Ola Cabs in London’s market that is
following:
Strengths Weaknesses
 It is noted that Ola cab is a first mover
advantage as taxi aggregator in Indian
thus it can gain ample of benefits in the
London’s market.
 It provides top services to the
customers across the world.
 High customer awareness due to
aggressive TV, print media marketing
and online.
 Drivers are considered the face of the
company and therefore their
misbehavior and actions may affect the
financial position and brand image of
the firm.
 Monetization is quite complex in the
firm.
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Marketing in an international environment
 Excellent customer base is one of the
biggest strengths for Ola cabs.
 Online application and constant
expansion.
 Various rounds of VC investments have
the brand and image of the company
financially strong and effective
(Mbaskool, 2018).
Opportunities Threats
 Unorganized and unformulated market
is wider and large.
 Rising internet penetration and smart
phone users.
 Increasing disposable income and
revenue.
 Acquisition of smaller leaders or
players in the market.
 Moving of consumers towards
convenience generates huge demand
and expectation (Mbsskool, 2018).
 There is high and stiff competition
 The presence of various national and
international players could affect the
profitability of the firm.
 Future is quite difficult and unclear due
to lack of rules and regulations.
 There is less customer loyalty.
Competitors
It has been analyzed that there are various competitors in taxi industry that can affect the growth
and business of Ola can in London’s market. The main competitors of Ola cabs include
carpooling services, Uber cabs, Meru cabs and Easycabs. Along with this, various competitors in
London such as London green taxi, and Blue & white taxi further may impact on the success and
targets of Ola Cabs in the marketplace (Worldweb, 2018).
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Marketing in an international environment
Segmentation, targeting and positioning strategy for Ola cab
After the various studies, it is noted that segmentation, targeting and positioning is vital and
crucial strategy that is adopted by the firm while initiating the business activities and operations
in London’s market. The segmentation is done by the company to identify and analyze the right
and appropriate target audience in the global market. Segmentation is successfully done after
considering four areas such as demographic, geographic, physiographic and behavioral. Mainly,
the company focuses on the geographic and demographic areas to beat the competitors in new
and innovative market (Ooi, Foo and Tan, 2018). The people who mobile from one location to
other place for any purpose are included in the segmentation of Ola cab. By using segmentation
strategy, the firm would able to cater innovative and unique cab services to the customers in
London’s market. Aside this, segmentation helps in maximizing and uplifting revenue and
outputs in a large extent (Harding, Kandlikar and Gulati, 2016).
After segmenting the market, Ola cabs decides the potential and effective target audience to
serve services to them. The customers who are in need of cabs instantly are counted in the target
audience of Ola Cabs. The most of the target market of the company is the age group of 20-45
years, are young, college student and office goers (Venkatesh and Easaw, 2015).
After deciding potential and dynamic target audience, the company caters its services to the
customers across the world, one of the significant strategies that can be initiated is positioning.
This is vital because it helps in serving potential customers in a hassle free manner. Ola cab uses
innovative and dynamic technologies to position its services in the international market. Apart
from this, the company uses advanced technologies to bring the higher efficiency, effectiveness
and customer experience. without positioning strategy, the company could fail to offer its
services to the consumers internationally (Lindroos, La Hera and Häggström, 2017).
Marketing mix
The marketing mix is innovative and unique strategy that is implemented by Ola Cabs while
expanding the business in London’s market. Ola Cabs is a mobile app utilized as a service
provider for personal transportation (Kumar and Kumar, 2016). It is effective and dynamic
concept of travelling that used by the customers internationally. The marketing mix strategy
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Marketing in an international environment
covers 4Ps such as product, price, promotion and place. Marketing mix for Ola cabs is elucidated
below (Muralidhar, 2016).
Product strategy
It has been stated that Ola Cabs provide ample of services to the customers across the world. It
is noted that the firm has expanded its activities and operations in year November 2014 to
include autos but this venture was strictly on trial basis. It offers rides in several cities but
currently has initiated offering outstation rides to nearby cities also. If the company wants to
expand its market into the London then it needs to focus on the product strategy in the
competitive market (Sahasranamam, 2018). By using this strategy, the company would able to
improve and enhance its services in the international market. Without product strategy, the firm
can never expect to explore business in some other countries (Marketing91, 2018).
Place strategy
Ola cabs is a Corporation handling and controlling via an online network. Cabs could be easily
reserved through its own website and via Ola mobile app that could be download from the
Google play store and The app store. It is noted that the firm has initiated its operations and
activities from metro city Mumbai in Maharashtra but also moved its based to Bangalore in
Karnataka. The firm further has expanded and extended its network to include approx 200,000
cars that are running in one hundred two tier and metro cities like Chennai, New Delhi,
Bengaluru, Pune and Mumbai. It is one of the leading and effective strategies that can be used by
Ola Cabs while initiating the business in London’s market. By using this strategy, the company
could able to identify and analyze the dynamic and attractive locations in London (Marketing91,
2018).
Price strategy
The company was valued at 5 billion dollars with its predicted revenue at the end of the year was
62million dollars in 2014-2015 (Marketing91, 2018). The company supported payment via
Paytm but after sometimes it added two more options cashless via paytm and cash. It is analyzed
from the various analysis that customers are convenience more than prices in today’s modern
world. The company further renders ries with comfortable setting with air conditioned and
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Marketing in an international environment
furnished cabs (Kalla and Purohit, 2017). The company needs to offer price flexibility with its
wide range of vehicles that entails mid range, economic range and high range. It is analyzed that
the company should use penetration policy to cater services in the London’s market. By using
this strategy, the organization could able to stand over the competitors internationally. It should
set reasonable or appropriate prices for the services so as to attain competitive benefits over rival
companies in London’s market. Aside this, it should use a promotional policy and render
incentives to maximize its customer base in the new market. By using pricing strategy, Ola Cabs
can boost long term profitability and outcomes easily and effectively in the international market.
Promotion and distribution strategy
If the company has decided to enter into the London’s market then promotional and distribution
strategies shall be used by the company in a large extent. Ola Cabs is a growing and fastest
Corporation in India related to rental car because it has first mover benefit over the competitors
globally. It should adopt an extensive and unique marketing policy to create a dynamic and high
brand awareness among the key target audience (Andersén, 2011). The company should further
take help of various media channels such as social media, Twitter, Facebook. Instagram and
Blogs. Apart from this, Ola Cabs should offer incentives and discounts such as free rides, rupees
50 off and 50% discounted rides to attract maximum number of consumers in London’s market.
Along with this, it needs to provide promo codes facilities to the customers to maximize its
customer’s base in the new market (Marketing91, 2018). Moreover, innovative and unique
distribution channels like internet and direct selling should be used to promote the services of
Ola Cabs in London’s market.
Main marketing strategies or theories
Market penetration: It is vital and important strategy that can be used by the company while
entering into the new market. The market penetration could be done by stimulating the entire
market with innovative services and therefore market penetration. It is successful marketing
strategy that would be used Ola Cabs while initiating the business in London (Ganguly, Das and
Farr, 2017).
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Marketing in an international environment
Market development: Ola Cabs is extending the practically of its market development theory
by stimulating the service innovation. It is more integrated strategy that can be implemented by
Ola Cabs. The company should focus on the market development and growth strategy to be a
leader in the taxi industry in new market (Nath, Nachiappan and Ramanathan, 2010).
Diversification strategy: The Company can use diversification strategy to distinguish its
services from the competitors. Ola Cabs is currently serving globally with 100 countries and is
on the way to add up more countries in the queue (Francis, 2018). It is one of the most
significant strategies that shall be carrying by the company while expanding business in
London’s market effectively. All these marketing strategies would help Ola Cabs to make a
dynamic brand image in the minds of the customers globally (Kashyap and Bhatia, 2018).
Problem identification and solutions
If Ola Cabs initiates business activities in London then various problems and issues would be
entertained and handled. The drivers can argue that their steady income would fall down in the
new market. The changing incentives structure would also affect the performance and
effectiveness of the employees in new market. The rules, regulations and policies of new country
also will put direct impact on the business and growth of Ola Cabs in London’s market. Digital
exploitation is one of the biggest issues that can be dealt by the firm in near future. There is stiff
and high competition in taxi’s market in London. London has a second network of Taxis like
minicab and private hire vehicles that cannot pick up from the street and have to be called in
advance to a place or location to meet a passenger. Political factors and buying behavior of the
consumers may also affect the profitability and outcomes of the firm. To prevent and reduce
these issues, the company needs to make unique and dynamic policies and plans in London’s
market. Talented and potential people shall be appointed by the company to drive Ola Cabs in
such market. Attractive incentives and benefits must be given to the drivers for satisfying their
needs and expectations. Dynamic team further must be hired to listen and resolve the queries and
issues of the customers (Metro, 2015).
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Marketing in an international environment
Future management control and measurement systems
The supervising and control is done by Ola Cabs with using innovative and dynamic strategies
and policies in the international market. The company further focuses on the four perspectives
such as customer, financial, internal and learning perspective (Rothaermel, 2015). Pestle analysis
and porter five forces analysis shall be used to prevent future risks and challenges. Aside this,
performance management system must be implemented for evaluating and identifying the
effectiveness and efficiency of the drivers.
Budget
The major and significant part of the budget is being initiated by the firm in marketing strategies
and programs. Approx 1 million budget is set to implement marketing plan for exploring the
business functions in London.
Conclusion and recommendations
It concludes from the above mentioned limelight event that Ola Cabs is one of growing and
leading company in India. An effective and significant marketing plan has been made to expand
and initiate the business activities and operations in London. By making marketing plan, the
company could easily able to explore the business in the new market. The above analysis shows
that how the firm uses marketing strategies such as penetration strategy, market development
strategy and diversification strategy in London’s market. The advertising platform or route
rendered by Facebook permitted Ola to maximize its customer base manifold. The marketing
strategies further support Ola Cabs to tap customers and increase profit margin. SWOT analysis
that done by the company also has been explained in the task. Segmentation strategy and
targeting strategy are initiated to find out right and potential key target audience. Marketing mix
plays a crucial role for attaining desired objectives and goals in London’s market. At the end,
budge is made and monitoring is done to implement successful and effective marketing plan. It is
recommended that Ola Cabs should firstly identify and analyze the needs and requirements of the
key target audience in London. The firm should appoint an effective and dynamic team to handle
and resolve the complaints and queries of the customers on mobile. Promotional and
advertisement strategies shall be considered while expanding business in London. A market
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Marketing in an international environment
survey further must be done by the firm to identify and evaluate the risks and threats of the
market.
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Marketing in an international environment
References
Andersén, J., 2011. Strategic resources and firm performance. Management Decision, 49(1),
pp.87-98.
Francis, G., 2018. An analysis on strategic opportunities and critical challenges of venture capital
in India. GPH-Journal of Biological Science, 1(1), pp.21-31.
Ganguly, A., Das, N. and Farr, J.V., 2017. The Role of Marketing Strategies in Successful
Disruptive Technologies. International Journal of Innovation and Technology
Management, 14(03), p.1750016.
Harding, S., Kandlikar, M. and Gulati, S., 2016. Taxi apps, regulation, and the market for taxi
journeys. Transportation Research Part A: Policy and Practice, 88, pp.15-25.
Kalla, N. and Purohit, H., 2017. Designing Service Offering in the E-Marketing Era: A Case
Study of OLA Cabs. International Journal on Customer Relations, 5(1), p.1.
Kashyap, R. and Bhatia, A., 2018. Taxi Drivers and Taxidars: A Case Study of Uber and Ola in
Delhi. Journal of Developing Societies, 34(2), pp.169-194.
Kumar, P.K. and Kumar, N.R., 2016. A Study on Factors Influencing the Consumers in Selection
of Cab Services. International Journal Of Social Science And Humanities Research, 4(3),
pp.557-561.
Lindroos, O., La Hera, P. and Häggström, C., 2017. Drivers of advances in mechanized timber
harvesting–a selective review of technological innovation. Croatian Journal of Forest
Engineering: Journal for Theory and Application of Forestry Engineering, 38(2), pp.243-258.
Marketing91.2018. Marketing mix of Ola Cabs-Ola Cabs marketing mix[Online]. Available from
https://www.marketing91.com/marketing-mix-ola-cabs/ [Accessed as on 3rd October 2018].
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