Strategic Marketing Planning of Ingogo

Running head: STRATEGIC MARKETING PLAN
STRATEGIC MARKETING PLAN
A case study of Ingogo
Name of the Student:
Name of the University:
Author Note:

STRATEGIC MARKETING PLAN 1
Executive summary:
Ingogo is the Australian taxi company that specialises in the online taxi booking and
payment. At present, this taxi company operates in the regions of Melbourne, Sydney, Perth,
Brisbane and Adelaide. The present market situation of the taxi industry in Australia has been
carried out in the report and it has been found that there is a great opportunity for the online
cab services as the demand of the cab services has been increasing in the recent time. A
detailed market analysis has been carried out and a proposed marketing strategy has been
given in the report. It is expected that considering the present market scenario if Ingogo
understands the need of the hour and carry out its marketing in a unique way, it can easily
achieve the targeted marketing and financial objectives of expanding its business.

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Contents
1. Introduction:...........................................................................................................................4
1.1 Overview of the company:...............................................................................................4
1.2 Service features:...............................................................................................................4
1.3 Current market situation:..................................................................................................4
2. Situation analysis recaps:.......................................................................................................5
2.1 Macro force analysis:.......................................................................................................5
2.2 Customer analysis:...........................................................................................................6
2.3 Competitor analysis:.........................................................................................................6
2.4 Other stakeholder analysis:..............................................................................................6
2.5 SWOT analysis:...............................................................................................................6
3. Discussion of the segmentation, targeting and positioning approach....................................7
3.1 Problem statement............................................................................................................7
3.2 Discussion of potential market segment..........................................................................7
3.3 Discussion of target market and positioning....................................................................9
4. 3 marketing and 3 financial objectives...................................................................................9
4.1 Marketing objectives and goals........................................................................................9
4.2 Financial objectives and goals.......................................................................................10
5. Formulation of a detailed marketing mix strategy...............................................................11
5.1 Marketing mix................................................................................................................11

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5.2 Marketing strategy proposed implementation................................................................12
6. Budget allocation for promotion mix...................................................................................14
7. Conclusion............................................................................................................................14
References:...............................................................................................................................15
Appendix:.................................................................................................................................17

STRATEGIC MARKETING PLAN 4
1. Introduction:
The aim of the report is to develop a strategic market plan for Ingogo for the coming
18 months. In order to develop a marketing strategy for the online cab booking Ingogo, it is
important to carry out a detailed market analysis to understand the present situation of cab
industry and the competitive analysis as well. The report shall give a brief analysis of the
customer segmentation and the regions where the cab company can actually expand its
business. On the basis of the findings, a marketing strategy to increase the market sales and
the revenue of the organisation shall be presented that would help the organisation to achieve
the desired financial and marketing objectives.
1.1 Overview of the company:
Ingogo is the Australian taxi company that specialises in the online taxi booking and
payment. At present, this taxi company operates in the regions of Melbourne, Sydney, Perth,
Brisbane and Adelaide. The taxi has become a reliable service for the people of Australia
(Ingogo.com.au, 2018).
1.2 Service features:
The taxi app ahead of the ASX listing has been found to overhaul its app in order to
improve the user experience. Ingogo is the first online taxi company that has provided the
riders with fixed fares that include the tolls and other charges (Ingogo.com.au, 2018). The
taxi company does not charge any surcharges to the customers and also allows the users to
book the cab even two days earlier.
1.3 Current market situation:
According to 2015 statistics, Ingogo has raised $12 million that has valued the
company at $100 million. It has been found that more than $4 million was raised from crowd

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funding. Ingigo also received a grant from the Australian Federal Government in order to
build the business in Australia (Ingogo.com.au, 2018).
2. Situation analysis recaps:
2.1 Macro force analysis:
Factors Analysis
Political Regulatory factors like changing tax policies and availability of permits to
new and operating businesses (Chan et al., 2016)
Economic Opportunity of employment with the expansion of the business.
Australians also prefer spending good amount of money when it comes to
safety and comfort.
Social Target group of people prefers hassle free rides and the issues in terms of
searching destination by other transportation means.
Technological Similar technological means can be easily adopted by other competitors.
Increased usage of smart phones among the users has resulted in increased
usage of the app (Wirtz & Tang, 2016).
Environmental The increased usage of fuel is a major environmental concern. Traffic
congestion and other related issues
Legal Factors like copyright laws, labour and employee safety laws are the major
legal factors under concern (Nie, 2017).

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2.2 Customer analysis:
Reports suggest that there has been an increase in the usage of the online cabs by
5.1% within a period of six months. Over one million Australians have been found to
download online cab apps on their mobile (Bashir, Yousaf & Verma, 2016). The consumers
are embracing the app service and there has been a considerable increase of the customers
using the mobile phone apps to book their cabs. The concept of ride sharing has also helped
in attracting more consumers to use the online cab service.
2.3 Competitor analysis:
Uber is the primary competitor of Ingogo. Uber has established its market in Australia
and it has been found that 7.6% of Australians have already downloaded the app and 4.3%
actually books a cab once in a week; according to 2016 statistics (Poó, Ledesma & López,
2018). Other important players of the industry are GoCatch and Cab Charge. Ola is also set to
enter the market of Australia considering the cab market opportunity in Australia.
2.4 Other stakeholder analysis:
The stakeholders of the Ingogo cab include the consumers, the business partners,
government bodies and others. It is important for the company to abide by the rules and
regulations of the transportation policies considering the macro environmental factors.
2.5 SWOT analysis:
Strengths Customer satisfaction rate is high due to its services along with the
pricing strategy compared to the traditional taxi operators.
Weaknesses Imitation of the service can be done easily. The service is largely
depended on manpower and internet and technological service.

STRATEGIC MARKETING PLAN 7
Opportunities Entering in new markets with better marketing and pricing strategy and
also by the means of innovative and unconventional services.
Threats Increased number of competitors in the market along with increased
frauds and scandals. Losing trust due to one negative incident related to
the cab service can also become a great threat to the cab service.
3. Discussion of the segmentation, targeting and positioning approach
3.1 Problem statement
The online cab services have been facing certain challenges in the recent time due to
the increase competition of the online cabs in the market. Ingogo is facing highest challenges
in terms of this factor as this company is comparatively new in the market and is yet to take
over the market (Wirtz & Tang, 2016). Other online cab service giants like Uber and
GoCatch are already established organisations and have been operating in the market since a
long time. It would be a great challenge for Ingogo to enter a new market unless proper
marketing strategies are applied. Ingogo is in the expansion stage and has been considering
the expansion of its services to other regions of Australia and thus, the aim of this report is to
come up with a potential marketing plan that would help the organisation to reach its business
objectives and goals.
3.2 Discussion of potential market segment
For the current market expansion and the marketing strategies, Ingogo shall target the
markets of Queensland, Victoria, New South Wales and the regions around these territories.
The target group of customers are the users of online cabs. These groups are mainly the office
goers as they are the ones who need the cab services on a regular basis. However, they are not

STRATEGIC MARKETING PLAN 8
the only potential group but other groups include any traveller who requires a ride to reach
out a particular location. From the statistics it has been found that that there are more than
174,600,000 passengers travelling on a regular basis with over 7,347 taxis available in New
South Wales (Refer to the appendix for more details). However, the demand for the online
cab booking services has been increasing and thus, there is a potential market need for the
cab service.
The market segmentation can be defined as below:
Factors Brief explanation
Demographic Age group between 14 and 50 years who are the active users of smart
phones can be the potential target group of people. This might include
people of both the genders with various economic status and socio-
cultural backgrounds (Liu et al., 2017). Any person in need of a taxi
ride, is the target consumer.
Geographic The regions like Queensland, Victoria, New South Wales and other
regions of Australia are the geographic target segment for the cab
service to target.
Psychographic As the cab service offers a hassle free and comfortable ride, those who
prefer to use to have an easy go for their journey are the particular
group of people.
Behavioural Considering the consumption and need behaviour, the particular target
group of people always look for a benefit-sought, customer loyalty and
benefit sought programmes for any kind of service that they want to

STRATEGIC MARKETING PLAN 9
use. (Conlon & Perkins, 2018)
3.3 Discussion of target market and positioning
The target group of people who shall be responsible for booking the cabs can be
considered to be in between the age group of 14 and 50 years as the app offers easy means of
booking a cab and can be operated by anyone. The target based on the income group need not
to be high as the cab service offers its service at a lower and competitive price. People who
prefer to enjoy a hassle free ride and want to reach out the location at the earliest without
waiting for the traditional cab services prefer to use this service (Angus & Valentijn, 2018).
Considering the need of the demand of the target group of people, the positioning
strategy for the cab should include innovative approaches. For instance, it is very important
that the app should be designed in a way that it would be very easy for the people to book the
cab. In order to create a greater domination in the market, it is equally important that the cab
service comes up with a plan of giving better discounts and offer (Poó, Ledesma & López,
2018). In fact, any kind of loyalty program would also be effective in keeping a hold of the
target group of consumers. However, it is equally important to maintain a high quality,
competitive cost and flexibility in order to maintain speed, innovation and great service.
4. 3 marketing and 3 financial objectives
4.1 Marketing objectives and goals
 To increase the sales by at least 5% within 12 months that will result in growth of
market share
 To enter new market and target new customers
 To build brand awareness and enhance the customer relationship
Specific To enter the new market and target new consumers in order to increase

STRATEGIC MARKETING PLAN 10
the market share of the company
Measurable The increased use and the change in the figure of the market share
compared to the other services available can be easily measured
Achievable With correct positioning and marketing strategies, the aim can be easily
achieved
Relevant In order to enter a new market, it is important to set a new positioning
strategy by evaluating the market opportunities and positioning the
product accordingly
Time bound This marketing plan has been designed for 18 months and it is expected
that the outcome can be achieved within this time.
4.2 Financial objectives and goals
 To generate minimum $5,000,000 revenue within the span of 18 months by entering
new market segments
 To increase the distribution or the reach of the service among the new segment group
to increase the sale
 To achieve the desired cost in return that has been spent against the promotional and
marketing objectives
Specific Increasing awareness on the benefits of using the Ingogo cab service
compared to other taxi services available by right promotion and
advertising
Measurable The increase in sales can be measured after a particular period of time

STRATEGIC MARKETING PLAN 11
and the difference in the financial gains can be calculated
Achievable By the means of right advertisement and promotional means the target
can be achieved
Relevant Increasing market reach can only be ;possible by proper promotional
activities
Time bound A time period of 18 months is needed
5. Formulation of a detailed marketing mix strategy
5.1 Marketing mix
Factors Brief analysis
Product The online booking cab service that would operate in Australian cities
Place Regions like Victoria, New South Wales, Queensland are the new
market segments while the cab already operates in the regions like
Sydney, Perth, Brisbane and others
People Any person who is in the need of a cab in order to travel or reach out to
a particular location. People of Australia are the targeted group of
people for the service (Chatfield, Reddick & Brajawidagda, 2015)
Price The cab service provides competitive pricing and also offers several
discounts and loyalty programs as a pricing means. The cab ride starts
from $2 and depends on the usage of the cab service.
Promotion The promotion would be carried on by various channels that would

STRATEGIC MARKETING PLAN 12
include both traditional and digital media.
5.2 Marketing strategy proposed implementation
In the view point of Armstrong et al., (2014), a marketing strategy should always
follow a particular theme in order to increase the impact of marketing strategy among the
target consumers. For the Ingogo cab services, it is equally important to come up with a
promotional theme that would be followed using various media. For this particular duration
of 18 months, the theme that has been proposed is, “Let’s go in Ingogo” with the idea that this
cab service will help any person to reach out their destination at the right time within a
comparatively low cost. As mentioned above, the commercials and advertisement would
focus on the various strategies or facilities including pre-booking, availability of car within
few minutes, comfortable journey, loyalty programs and other benefits that the cab service
might come up from time to time in order to increase its customer base and services.
Marketing strategy Implementation Duration/frequency KPI
Traditional media
like television
commercials
By hiring a media
agency for
developing a
commercial
The advertisements shall
be telecasted mainly
during evening hours as
the demand of the cab
remains high during the
day time.
Increased
number of
bookings of the
cabs from
various
customer
segments
Outdoor
advertisements
including hoardings
Outdoor media
agency for coming
up with innovative
Setting big hoardings at
prime locations from
where the advertisement
Increase in the
market share

STRATEGIC MARKETING PLAN 13
ideas to reach out the
right message in a
creative way
can be easily viewed by
the travellers. This would
target the people who does
regular road journey
Social media
advertising
Hiring social media
and PR personals for
carrying out the PR
activities in the
various social media
sites like Facebook,
Twitter, Instagrams
and even in search
engines like Google
Writing articles,
developing creative
contents in the form of
images or captions can
actually attract large group
of people using the social
media. Focus has to made
on the social media
advertising mainly rather
than using other media
Increased
number of likes
and shares of
the posts or
blogs made in
the social
media sites
Personalised
promotions
By giving
promotional offers
and discounts using
direct messaging and
e-mails and also by
giving promotions in
the apps
It is important to come up
with various offers and
discounts in order to create
a better bonding with the
consumers and also as a
means of the pricing
strategy
Increased
number of
repeated
bookings and
6. Budget allocation for promotion mix
The proposed budget for the 18 months promotional activities can be given below.

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Advertisement need Amount ($)
Television commercials (20 sec
duration advertisement)
75,000
Newspaper advertisement 55,000
Outdoor advertisement 70,000
Social media advertisement 60,000
Direct advertisement 10,000
Others 20,000
Total 290,000
7. Conclusion
A detailed analysis of the present market situation of the taxi industry in Australia has
been carried out and it has been found that there is a great opportunity for the online cab
services as the demand of the cab services has been increasing in the recent time. A detailed
market analysis has been carried out and a proposed marketing strategy has been given in the
report. It is expected that considering the present market scenario if Ingogo understands the
need of the hour and carry out its marketing in a unique way, it can easily achieve the
targeted marketing and financial objectives of expanding its business.

STRATEGIC MARKETING PLAN 15
References:
Ahmad, I., Balkhyour, M. A., Abokhashabah, T. M., Ismail, I. M., & Rehan, M. (2017).
Occupational Musculoskeletal Disorders among Taxi Industry Workers in Jeddah,
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Angus, L., & Valentijn, P. P. (2018). From micro to macro: assessing implementation of
integrated care in Australia. Australian journal of primary health, 24(1), 59-65.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Atia.com.au (2018) ATIA Australian Taxi Industry Association Retrieved from:
https://www.atia.com.au/taxi-statistics/ [Accessed on: 14-5-2018]
Bashir, M., Yousaf, A., & Verma, R. (2016). Disruptive business model innovation: How a
tech firm is changing the traditional taxi service industry. Indian Journal of
Marketing, 46(4), 49-59.
Chan, J. W., Chang, V. L., Lau, W. K., Law, L. K., & Lei, C. J. (2016). Taxi App Market
Analysis in Hong Kong. Journal of Economics, Business and Management, 4(3).
Chatfield, A. T., Reddick, C. G., & Brajawidagda, U. (2015). Government surveillance
disclosures, bilateral trust and Indonesia–Australia cross-border security cooperation:
Social network analysis of Twitter data. Government Information Quarterly, 32(2),
118-128.
Conlon, R., & Perkins, J. (2018). Wheels and deals: The automotive industry in twentieth-
century Australia. Routledge.