Service Marketing: A Case Study on Uber in Australia

This assignment analyzes the market target, industry analysis, marketing strategy, and budget of Uber in Australia. It includes PESTEL analysis, IMC plan, and budget.

Running head: SERVICE MARKETING
SERVICE MARKETING
Name of the student:
Name of the university:
Author Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Market targets of Uber...........................................................................................................2
Industry Analysis...................................................................................................................3
Marketing Strategy of Uber...................................................................................................4
IMC Plan and Budget of Uber...............................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
The assignment actually deals with the Uber service which is provided in Australia
along with the critical analysis of the key parameters in this case which are the market target,
industry analysis, marketing strategy and budget. The chosen company in this case is
basically a American multinational transportation network company which actually includes
the peer to peer ridesharing, ride service hailing, food delivery and many more.
Discussion
Market targets of Uber
The market target of Uber in general actually depends on some of the key parameters,
which are the Geographic, demographic, behavioral and Psychographic segmentation.
Recently as per the statistics which is available in the business it is actually found that the
Uber has been in Australia over the six years and currently targeted nearly 4.3 million
Australians aged 14 plus. The company has been successful in target market of around 20%
of the overall population in Australia (Rather, 2019). The board of director are now trying to
set the standards high which is actually to accomplish more than the actual standard in the
market. Based on the statistics it is found that with the average of three months the revenue of
the company just went up to 2 million due to the effectiveness in the current strategy in the
market.

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The above chart actually depicts the age wise population in Australia availed the
service of Uber starting from the year 2016 to 2018. It is quite clear that the demand of the
taxi in Australia is constantly increasing and the travel by taxi over the last three months has
significantly dropped to 2% and in the last two years to 21.5% upto the year 2018. The
travelling by Uber significantly increased in the five mainland states over the last two years
while on the other hand the usage of taxi has significantly reduced (Baker & Saren, 2016).
Industry Analysis
In case of the industry, analysis the PESTEL analysis of Uber has been significantly
performed in the business which is provided bellow:
 Political factor – recently Uber actually faced many controversies regarding some of
the significant facts which is Netherland ruled against Uber for their drivers not
having the taxi license.
 Economic factors – Economically Uber has grown significantly since its
commencements and also bringing new career opportunities for the young generations
in Australia and the potential taxi drivers all around the world.

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 Social factors – The experience of the consumers on the other hand has been so far in
availing the rides of the Uber. In such a way, the popularity of Uber all around the
world including Australia have significantly increased (Chitty, D'Alessandro & Gray,
2019).
 Technological factors – The improvisation of the Uber application is rather a
significant improvement for the business which is cost effective and time saving.
 Environmental Factors – Due to Uber there has been some of the significant impact in
the business as it increase the traffic congestion and the fuel usage.
 Legal factors – Legal factors is actually a part of the analysis which actually includes
the usage laws, copyrights laws, labor and employee safety laws.
Marketing Strategy of Uber
The marketing strategy of Uber is actually based on the integral growth of the
company where the company actually focused on the sponsoring events, first time riders a
free trial and many more attractive offers (Lovelock & Patterson, 2015). The Uber referral
program actually involves the friends free rides along with the credits earned by them. The
company also concentrates on the reviews and the feedback which are actually provided by
the customers after having ride. The company is looking for the constant growth in the
overall business process by rectifying the potential glitches in the review or the feedback
system.
IMC Plan and Budget of Uber
The IMC plan actually consists of the two major segment in this case which is target
market segment along with the IMC objective of the company. The company is actually
targeting of about 57 percent of the of all the rideshare passenger. In case of the objectives it
is actually needed by the company to build the brand awareness in Australia and the overall
world and further highlighting the unique selling proposition of Uber.

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Budget
Based on the budget it can be said that the starting from the year 2014 to 2017 the
overall financial income of the company can be noticed from the above chart. The company
is actually going through the significant loss in the business up to the year 2016 and finally
achieved profit in the year 2017.
Conclusion
From the above discussion it can be concluded that as per the analysis it can be said
that the performance of Uber in Australia is significantly increasing along with the growth of
population in Australia. This will help the country to generate employment opportunities at
the same time as there is a huge demand in taxi’s in Australia.

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References
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Chitty, W., D'Alessandro, S., & Gray, D. (2019). Services marketing. Oxford University
Press Australia and New Zealand.
Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
Rather, R. A. (2019). Consequences of consumer engagement in service marketing: An
empirical exploration. Journal of Global Marketing, 32(2), 116-135.
Wilson, A., Zeithaml, V., Bitner, M. J., & Gremler, D. (2016). Services marketing:
Integrating customer focus across the firm.
Wirtz, J., & Lovelock, C. (2016). Services marketing. World Scientific Publishing Company.