Strategic Marketing for Vroom: Online Taxi Service

This document discusses the strategic marketing plan for Vroom, an online cab and taxi service. It covers market trends, key competitors, issues and opportunities, customer attitudes, market segmentation, and marketing strategies.

Strategic Marketing

Table of Contents
INTRODUCTON.............................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................4
Key Market trends........................................................................................................................4
Key Competitors..........................................................................................................................5
Issues and Opportunities..............................................................................................................5
Customer's attitude.......................................................................................................................7
PART 3............................................................................................................................................7
PART 4............................................................................................................................................9
PART 5..........................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Books and Journals....................................................................................................................14

INTRODUCTON
Strategic marketing and its planning is method or process crucially important for range of
businesses in modern business environment. The planning of marketing strategically helps
business in differentiating them with other players and thus securing competitive edge
strategically in market.
The report in this manner have focused over developing a strategic marketing plan for a
new and innovative start-up business. The product included in report is online cab and taxi based
service and start-up name is Vroom. Choosing a totally new business was considerably
important as it is helpful in understanding strategic planning process form core and basic. The
report have included description of service and company at first. Followed by existing market
trends and sentiments for the nature of business. Thirdly the report have included market
segmentation analysis for Vroom and then a marketing plan itself, with the help of Marketing
mix tool. Integration and coordination between different departments is also studied required to
make marketing a success.
PART 1
The service of a Taxi is vital in a city. It is important for the people who already resides
in the city as well as those who visits city temporarily. Service of taxi comes in mind of the
people whenever they think of moving at one place or another. However, public transport and
personal vehicles are supportive of the same need, but there are certain issues seen in those
services. Considering public transport first, issues pertaining to this service is that they are not
helpful in frequent travel (Chernev, 2018). As people have to wait for buses or metros over
stations. Also there is need to reach at stations on time before arrival for reaching on platforms
and bus stops. Also the problem of congestion and rush sometimes irritate people. Therefore,
public is not a service aligning with busy schedules of people. Visitors in city are not aware of
public transports and thus prefers taxi services the most. Taking account of personal vehicles,
there is a problem of lack of awareness among the people about all the routes in the city. And,
when people have to travel over long distances, they do not generally prefer to drive themselves
and hires a taxi for that services.
This dilemma of people is very widely visible, arose due to their personal busy lifestyles
and similar other problems. Hence, an online product, offering affordable and quick taxi and

travel services was very much need of the time. Vroom is one such product. Vroom is a modern
time developed mobile and online application that is dedicated of offering affordable, safe,
comfortable and quick taxi or cab services for people. Vroom provides services in both manners,
where people have to travel within the city as well as inter-city travel.
The mechanism that Vroom follows for providing this service is simple and
comprehensive for its users. Users have to download a mobile applications or go over website of
Vroom. Vroom will automatically track location of user. Also users are eligible for providing
location manually. This is supportive for drivers. Users have multiple options to order taxi of
their choice. Vroom in its product portfolio currently includes vehicles like Motorcycles and
cars. Also, for long distance travels, SUV cars are provided. This gives users multiple option to
book taxi of their choice, comfort and affordability. Likewise, if any person is willing to deploy
its vehicle in Vroom, it can be done by them in same way, through creating a Vendor account
providing personal details and details of Vehicle as well.
PART 2
Key Market trends
Market trends for Online Cab services company seems very favourable at this time. This
is much evident from the fact of rising needs of mobility and awakening modernisation and
urbanisation social sentiments. Modernisation in this term includes growing use of Internet based
services and smartphones. Study of market trends for any sort of business is necessary as they
allows one to analyse favourable and unfavourable current positioning of service in market
(Dogu and Albayrak, 2018). Using that analysis, a businessmen can make necessary decisions in
order to ensure growth and prosperity for business. Key market trends for Vroom includes:
Infrastructure developments- Infrastructure development projects, been undertaken by
respective governments to improve mobility is helpful for vehicles of Vroom. It is supportive in
ensuring quick and timely travel.
Car sharing- Many people are preferring this sort of travel. There are two major reason for
choosing this service. One it provides affordability. Second are concerns of environment.
Through this arrangement multiple people can travel in same vehicle.
Navigation and data based services- Navigation and data based services are new economic
products. They are very valuable to many internet based large companies like Google, Apple and

Microsoft. They are engaged in making development in their services which could be ultimately
prove useful for Vroom.
Key Competitors
Level of competition is very intense for Vroom in this market and for this there are
multiple reasons. One reason is that the market itself, of online cab services is a growing one.
The technological advancements taking place in society are attractive fro both, users as well as
potential entrepreneurs. Growing market is best in providing huge opportunities for growth
rather than an established market. Secondly, there are already many big players in market
already, providing almost same type of services. Thus, it is required for Vroom to be highly
competitive and innovative in its services offers. Key competitors for Vroom are:
Lyft- Lyft is an online cab service mobile application similar to Vroom. The company is based
in California and operates in more that 300 regions of United states. The scale of operation of
Lyft is significant evident that, it provides nearly 18.5 million rides per month.
Curb- Curb becomes significant competitor, mainly because of backing it has. The Curb cab
service was relaunched by VeriFone Systems, a company who already own major portion of
Green and Yellow taxis operating in market (Sahaf, 2019).
Ola- Ola is the most prominent player in the market. An Indian origin company, have net worth
of tens of million dollars. And hundreds of thousands vehicles are operative under its name.
Also, by the time it have collaborated with many influential players supporting services of
Navigation and payment applications.
Issues and Opportunities
Although the market have huge potential in providing numerous growth opportunities for
Vroom and other allied services providers, along with fulfilling urgent needs of modern
developments. But the market is not pardoned from issues at the same time. Report have
discussed both of them.
Issues
Restraints from Traditional taxi services- Vroom and other online service providers have
damaged markets of traditional taxi services. As it is striking their livelihoods, thus it attracts
sympathized ethical eyeballs of society and governments. Traditional taxi services have provided
jobs and revenues to poor section of society and now they are left for finding any other job or
adopt to these applications (David, David and David, 2017).

Transport policies- Transport policies in many countries are varied in nature. Also, somewhere
they are seen vary unregulated and hence it makes online companies vulnerable of attracting
frequent penal or legal consequences.
Opportunities
Increasing user base- The services of quick and easy rides provided by these applications is
being widely used and users are making it a part of their first choices. Also it is supported by
increasing smartphone and internet penetration in market.
Micro-mobility- Micro-mobility is a vehicle service which can accommodate travel for one or
two people at best. These vehicles are another frequently growing market, especially in terms of
environment friendly vehicles. Opportunities in them lies for short range travels and sharing
rides.

Customer's attitude
Customer's attitude in online taxi service market seems to be very positive. The
opportunities of expansion here are huge for Vroom. These can be noted as follows:
 These applications provide affordable and quick taxi at their door step only.
 Customers prefers the way choices between multiple vehicles are provided to them. And
they can choose one as per their convenience and price.
 Business class, professionals and ambitious have made service of these taxis as part of
their routine life. Where, they receive quick services saving their time and efforts.
 Even for long distance travels, traditional road transports of Railways and Buses are
being avoided. When people can afford a car of their choice along with a driver.
PART 3
Market segmentation and targeting allows a businesses and entrepreneurs to target those
bases of market specifically which have actual growth potentials for business. This is helped by
dividing consumers on basis of different criteria. A segmentation analysis for Vroom is made in
report as follows:
Geographic segmentation- This is the most common type of segmentation for markets. Here
geographical location and feasibility of company to outreach that location is considered. In case
of Online taxi business suitable geographical location are those where navigation is possible
(Eriksson, Robertson and Näppä, 2020). There should be uninterrupted internet services as well.
Along with these basic requirements affordability and interests of consumer in particular
geography have to considered. Hence Urban areas in advanced and developing countries forms
suitable segmentation for Vroom.
Demographic segmentation- Demographic segmentation relates to categorising potential users
on the basis of demographic features such as age, gender, race and education or other possible
features. Considering Online taxi services of Vroom, there is requirement and interests of those
people especially who make frequent travel or uses of taxis. Also there is a need of technical
knowledge of smartphones and internet uses (Morgan and et.al., 2019). This indicates there is
huge potential in young people who have knowledge and interests both. Young populations
frequently uses taxis for work, education or other purposes.

Psycho-graphic segmentation- Psycho-graphic segmentation are inclusive of personality, traits
and opinions of users in market segments. For Vroom and its online taxi service of it opinions
and attitude of users are required to be adaptive towards modern and technological developments
and people should not be resistive to any of these developments. Also income of people is
another concern lie in this segment. In sections of society with low income, attitude of people is
towards fulfilling basic needs more rather being encourager of technological advancements. Thus
here also Urban areas makes good potential to offer.
Price segmentation- Price segmentation is reflective of personal income of people. This is much
important because personal income is directly reflective of affordability of user itself. However,
Demographic segmentation includes households income of people but Price segmentation dives
deeper into this category and targets individual incomes over households income. For availing
service provided by Vroom, there is not requirement of much of income for users. As the
company aims at providing affordable travel of different categories like Motorcycles and Cars
and vehicles of Micro-mobility (Direction, 2018). At simple and nominal prices. Thus it can be
afforded by varied sections of society and what is required is knowledge and need of services
and internet.
Time segmentation- Time segmentation includes matching between timing of users along with
timing of services offered by company. Also it includes quantum of time that consumer have to
forego in order to avail the service. In this section of segmentations, service of Vroom falls best
suitable for users. Firstly, the service of vehicles available to users are 24/7. Taxis can be availed
by user anytime at any place. Application tracks location of users and connect it with location of
Vendors. Nearest available Vendors contact and personal details along with vehicle details
would be displayed for consumers on mobile screens. Secondly, forego of time is no other
concern as taxis are made available to users at their location only in short time. Hence, in this
segment as well, all sorts users can be included.
This way, Vroom online cab and taxi service is convenient to all type of consumers. Most
significantly it does not any issue regarding prices. Affordability is the major concern of people.
That is best handled by providing reasonable fare for users. Also, if user do not like price of
anyone type of vehicle, say car, then they are free to opt for another vehicle of their choice like
Motorcycles. Thus, pricing is inclusive and suitable of all range of users. Similar is the case in
time segmentation. By providing 24/7 taxi service through online mode just at the location of

user. Vroom saves both, time and effort of people. Geographic segmentation is not to worry
about as internet services and requirement of taxis are seen everywhere. Therefore company have
to focus over Urban areas (Narnolia and Bagchi, 2020). Results of Demographic and Psycho-
graphic segmentations revealed requirement of knowledge and internet usage by users. Hence
young populations are can use the service at best to commute between workplaces, educational
institutes and places of entertainment as well.
PART 4
Vroom is a company that provides service of online taxi bookings. Thus it is service
based company. The advantage that a service based company have in terms of marketing is they
can customize services easily as per needs of consumers. Marketing strategies are those
strategies thorough which a company can make such changes in different elements of its service,
which represents services in marketing more competitive and attractive. Therefore, in nutshell,
marketing techniques are useful in catering attention of users by generating more awareness
about services of company and attracting them as well, in order to increase sales of company
(Magalhães and Pereira, 2019).
Vroom is new company in market, which is of growing nature. Also the market provide
huge potential to many potential entrepreneurs and pose threats of competition from them as
well. Therefore Vroom is required of effective marketing strategies, which fulfils two purposes,
one of increasing sales and establish a consumer base for company and second of fighting with
existing competition. In this report a marketing strategy for Vroom is developed with the help of
Marketing mix 7Ps' model. The model is best suitable for a service based company.
Product- Product refers to what is offered by company for its users in the market. In case of a
service company, products are intangible. Thus it is clear that their production and consumption
are inseparable and both of them goes hand in hand. Also the nature of service that Vroom offers
have no season, in which production is more. This requires company to offer all the time time
over its services. This would be the time when services would be used by consumers together.
Hence, it is required to adopt current and established developments of markets, like payment
diversity etc. along with good prediction of future developments in the industry. This is helpful
in not only attracting consumers but to retain the same as well. A little deviation of delay in
adopting developments can make consumers switch to rival applications.

Pricing services- Pricing mechanism in a service based company is more complicated than a
product based company. In a product based company cost of raw materials and factor costs can
help calculating prices of products more easily including profits. Whereas this ease is not
available to management of service based company. For Vroom, price fixing can be made while
considering many factors and elements. First of all it includes the prices of fuel which keep
fluctuating in international markets. Thus company have to be very cautious in this term.
Secondly it includes the transportations policies of government and traditions that have been
followed in transport market since years. For example, in many countries prices per kilometres
have been fixed by government or gets automatically fixed by norms of market. Thus
consideration of that is also important. Thirdly, company is required to have flexible approach
while deciding profits of its own and of the vendors as well. More of caution and flexibility is
suggested for Vroom before fixing any particular approach (Muminova and Urunboev, 2019).
Promotion- Promotion techniques are those which company uses to increase awareness among
consumers about its services. In modern times, there are various dynamics involved in this
technique also. Traditionally there have been clear and simple methods of making promotions
like pamphlets, banners and print media or radio media advertisements. But now with upsurge of
digital and social media these techniques have been changed. For promotion Vroom is suggested
to use digital platforms well. As the company offers internet based services, therefore its users
are supposed to be active over these platforms. It can be well done by company from its official
pages over social media, keep posting about new services and developments and events which
are being organised and encouraged by company. By this company will support maintaining a
continuous touch with users and will not be required to invest repeatedly in advertisements.
Digital platforms are also helpful in creating awareness in regular and targeted manner. Vroom
can ask its users for subscribing to its pages.
Place- Place includes the locations targeted by company for its services. Once locations are
targeted company must go on focusing over these locations to expand its markets. Vroom is a
new company and its required to focus on its existing markets at priority. Once markets are
developed in these places company can go on looking for diversification of market base later on.
It is important to get acknowledged and popular among users. Because competition in market is
intense and there are existing influential players as well. Existing markets for company lies in
terms of Urban areas and Young populations.

People- People includes those individuals who work for the company. They are employees of
company and their satisfaction is of utmost important to ensure uninterrupted operations of
company. Foremost employees in an online taxi service company includes the vendors, engaged
in picking up and dropping customers at the destinations. They are the most important as they
maintain direct communication with customers and are direct reflection of company before them.
Their satisfaction is important because any dissatisfaction among them can lead to
miscommunication with customers. This will already hamper image of a company which is
seeking to establish footholds in market. Also their training in right manner is necessary. Second
comes employees of company who work in offices. These manages entire process of operations.
For a new company like Vroom, employees are important as much as consumers because their
services at present decide future of company.
Process- Process includes the steps which an user have to follow before availing service of
company. This have to be simple and comprehensive so that consumer can go with ease. Any
useless efforts are prone to make users reluctant in following it. In this context Vroom have
already been innovative and devised a simple mechanism of service through mobile application.
Users have to register themselves by providing details of name, contact number and email. The
application itself is capable of tracking their location and no further efforts are required.
Physical evidences- Physical evidences are those proofs and details which ensure customers that
they are not being misled by company. It is useful in building up trust with customers, Vroom
can ensure this trust by fixed terms and conditions which should be made available to customers
before they download application of Vroom. Also a continuous track of vendor and details of
vehicle are helpful in gaining faith. Consumers should be provided history of their travels along
with details of driver so they can maintain contact with driver after travel as well. Proper receipt
of payment in chat-box and on email accounts or text would be helpful too.
PART 5
Any marketing strategy devised by by company to attract its users is not successful unless
they are supported by working team in company. Management can make plans by proper and
intense analysis of every dimension involved and can describe roles and responsibilities of every
individual in department. But at last they would be performed by employees only and hence
coordination and proper communication is needed foremost. The first step of coordination lies
between marketing department itself. While framing marketing strategy marketing department

must hold regular communication with research department. Research department is one
involved in carrying out research about various technological and business developments
happening. Also, it is one tracking activities of competitors. Thus suggestions from this
department will be helpful. Also, burden of integration and coordination lies more of Human
resource department as well. Human resource department must make communication about
requirements of hiring and training of employees in other departments as well. Integration of
marketing and Human resource department becomes more necessary in two ways. One,
Marketing department will tell HR about performance of vendors and any specific training
required for them. Secondly, dynamics involved in marketing practices needs new talents and
performance management of existing ones (THIS, 2020).

CONCLUSION
Therefore, from above discussion it is evident that marketing is a very important task in
modern business environment. It is as necessary for existing and well established businesses, as
it is important for new businesses. This is prominent because dynamics in environment which
includes changing technological, political and market scenarios are one which spares no
business. Therefore an extensive and inclusive strategic marketing policy is required by every
business to which every individual and department puts their effort, in an integrated and
coordinated manner. The task is more important and complicated for new businesses. They are
mostly start-ups with no prior business experience. And, here they have to compete with
established players. Therefore, success is more challenging for them. They should try on making
crucial observations along with implying their own knowledge on field. This will help them in
learning from failures of others as well.

REFERENCES
Books and Journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Dogu, E. and Albayrak, Y. E., 2018. Criteria evaluation for pricing decisions in strategic
marketing management using an intuitionistic cognitive map approach. Soft Computing. 22(15).
pp.4989-5005.
Sahaf, M. A., 2019. Strategic marketing: making decisions for strategic advantage. PHI
Learning Pvt. Ltd..
David, M. E., David, F. R. and David, F. R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of strategic Marketing. 25(4). pp.342-352.
Eriksson, T., Robertson, J. and Näppä, A., 2020. Functional top management teams and
marketing organization: exploring strategic decision-making. Journal of Strategic Marketing.
pp.1-18.
Morgan, N. A. and et.al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science. 47(1). pp.4-29.
Direction, S., 2018. Raising the effectiveness of strategic marketing: Why firms must consider
the operating environment.
Narnolia, R. K. and Bagchi, A., 2020. Impact of Strategic Marketing upon Consumers
Depending on Their Age Groups. Annals of Tropical Medicine and Health. 23. pp.231-741.
Magalhães, M. and Pereira, M., 2019. The marketing strategy and implementation of strategic
business units: How to choose a methodology of segmentation strategic marketing?.
Muminova, S. N. and Urunboev, S., 2019. FOREIGN EXPERIENCE OF STRATEGIC
MARKETING MANAGEMENT. Теория и практика современной науки, (1). pp.31-37.
THIS, T. M. I. L., 2020. Strategic Marketing Planning. Hashtags and Headlines: Marketing for
School Leaders. p.29.