ABS102 Marketing Plan: Uber Freight App, Ducere Global Business School

This document presents a comprehensive marketing plan for Uber Freight, a new service by Uber, focusing on its launch and growth in the Australian market. The plan includes a business mission and vision, specific objectives, a thorough marketing audit using PESTEL and SWOT analyses, and an application of Porter's Five Forces to assess the competitive landscape. The Ansoff Matrix is utilized to explore growth strategies, emphasizing product development. The report details marketing strategies to increase sales, market share, and customer base, aiming for enhanced profitability. It addresses challenges such as political instability, competition, and environmental concerns, while highlighting opportunities like expansion into rural areas and creating specialized rating systems. This resource is available on Desklib, where students can find similar assignments and study tools.

DEVELOP A MARKETING
PLAN

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Business mission and vision....................................................................................................................3
Objectives................................................................................................................................................3
Marketing audit.......................................................................................................................................4
Ansoff matrix..........................................................................................................................................8
Marketing plan........................................................................................................................................9
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Marketing plan is the document which mainly outlines the series of activities which
organizations undertake to accomplish goals and objectives. The main aim of this report is to
develop a marketing plan for the new service launched by Uber which is Uber Freight App.
This is the service where Uber mainly provides trucks and truck drivers for moving the
freight and goods to the shippers and basically connects shippers and carriers. This is a way for
streamlining the business operations by helping to build effective logistics system.
This report provides a brief about mission, vision, objectives, marketing audit and
marketing plan.
MAIN BODY
Business mission and vision
Mission
Mission of Uber is to provide a safe and convenient transportation to each and every
individual and increase the access of smarter transportation.
Vision
Vision of Uber is to become the most trusted market leader by providing hassle-free and
technology-efficient rental services and transportation services to the people and working
towards the interest of stakeholders.
Objectives
 To increase the sale and popularity of new service Uber Freight app by 34% in the
upcoming 3 months.
 To increase the market share by 54% in Australia through Uber Freight by the end of
2020.
 To enlarge the customer base by 45% in the upcoming 2 months
 To increase profitability ratio by 65% by the upcoming year of 2021.

Marketing audit
PESTEL analysis
Political factors
The various political factors which will affect the new Uber Freight app is political
instability, corruption, tax rate etc. Due to high political instability in Australia, the corruption
rate has increased from 34.2% to more than 51.6%. This will affect the new product Uber Freight
in negative way (Magalhães and et.al.,2020).
Economic factors
The interest rates in Australia have generally increased in Australia from past few year to
nearly 45.8%. Thus Uber will face a great challenge in taking loans for its various activities and
operations and thus will affect it in negative way. On the other hand, high employment rates in
Australia will prove to be highly beneficial for the company and will help to increase the sales of
Uber Freight. Due to high employment, it will be easier for the company to hire skilled and
experienced employees and truck drivers for its new Uber Freight (Dib, 2018).
Social factors
Due to high disposable income, the lifestyle of people in Australia has eventually
increased. This will affect the performance and popularity of Uber Freight in a great way and
will help to increase the goodwill of Uber in market. On the other hand, perception of people
towards driving trucks is highly negative and thinks that driving truck is not a reputable job. This
will affect performance of Uber Freight in negative way and there might be less people interested
in driving Uber Freight trucks (Hansen and Juslin, 2018).
Technological factors
The growing demand of people and rise of advanced technology as well as social media
will eventually help to increase the popularity of Uber freight in the markets of Australia. As
nowadays, people are increasingly accessing the technologies and apps thus this will help to
increase the performance of Uber Freight as this will provide hassle-free services to the end

users. Besides this, the innovation bought by the Uber will ultimately increase the goodwill of
the company in the eyes of customers and market (Kreutzer, 2019).
Environmental factors
The growing concern of government and people of Australia towards reducing
environmental pollution will affect this app in negative way and might also affect the image of
Uber in Australia. As Uber Freight mainly involves the large number of trucks travelling to
different shippers, thus company would have to follow the strict environmental policies for
reducing pollution due to trucks. Along with this, the large number of Uber trucks might also
give rise to high traffic congestion which may affect the goodwill of company.
Legal factors
In the past few years, Uber has mainly faced a large number of criticisms across the
world where it was criticized for exploiting its employees and drivers and compromising with
their safety. This negative image of Uber may affect its new application Uber Freight in negative
way in Australia.
SWOT analysis
This is basically the framework which helps the organizations to identify their internal
capabilities and resources which assist them in gaining competitive advantage.
Strength
The major strength of Uber Freight is the increasing brand awareness of Uber. Uber from
past few years have gained a great popularity and have taken its brand message to the wider
audience. This has eventually helps the company to increase its brand awareness. This will help
to take the new app in Australia with greater effectiveness. Besides this, the another strength of
this product is its great pricing strategy which it has used for the application. The Uber Freight
automatically determines the prices of the trucks according to the high traffic and high demand.
Like when the demand is high or there is high traffic in the area then the app shows high prices
thus it will help company to generate great profit through this app (Rayme and et.al.,2019).

Weakness
The major weakness of Uber Freight is the dependency on Drivers. As in this application,
truck drivers are generally the one who drives the trucks and at the same time, Uber do not have
the direct contact with their drivers. Thus, this high dependency on the truck drivers within
proper communication is its weakness. Another weakness is that the high operating cost. The
cost of operating the vehicles and trucks as well as their maintenance requires a high cost. Thus,
this one of the another weakness which might affect the profit margin of company (Kotler and
et.al.,2017).
Opportunity
The major opportunity which is being available to this new application is that it can even
focus on the rural areas of. It can enter the emerging market of Australia where the truck services
are expensive as well as inconvenient and emphasize on rural area for hiring truck drivers.
Another opportunity available is creating a separate rating system for the truck services. Uber
can establish the separate review system in order to measure the performance of their truck
drivers (McDONALD, 2016).
Threat
The major and most important threat which might affect the performance of Uber Freight
is the growing competition. The major competitors of the Uber which are OLA, DIDI, Lyft have
a strong presence in the market of Australia which might affect the performance of this new
application. Another threat which might impact the overall profit ratio of company and
productivity of new application is the changing regulations in country. Company would have to
follow the legal rules of Australia in order to increase the performance of Uber Freight (Flores
and et.al.,2017).
Porter five forces
This is the major tool which is being used by organizations for analyzing the intensity of
competition as well as the various competitive forces.

Threat of new entrants
The threat of new entrant is generally low for Uber and will not affect much it new
application which is Uber Freight. For entering the taxi industry, a high amount of investment as
well as capital is required & this is mostly difficult for the small companies to arrange. Along
with this, the new entrants have to pay high economic cost which will be beneficial for Uber.
Thus this low threat might not affect the performance of Uber freight in future and will help in
increasing its performance (Mononen and et.al.,2019).
Bargaining power of the suppliers
There are basically two types of the suppliers which prevail in Uber. Drivers who mainly
works for the company as well as its official partners. The official partners of Uber Freight
which has invested a huge amount in this application are various telecom companies like Airtel.
As the numbers of suppliers are high in number in this industry thus the bargaining power of the
suppliers is generally low for Uber. For launching its new application, whenever Uber finds that
the suppliers are charging high then company has the opportunity to switch to the suppliers.
Thus, this makes the bargaining power of suppliers much low for the company (Fine, 2017).
Bargaining power of the buyers
The bargaining power of the buyers is generally low in this industry and for Uber. Uber
has high level of product differentiation and brings innovation in its various aspects. Like for
example- The Uber freight service of Uber will help to connect truck drivers and shippers and
thus is the biggest innovation bought by the company. Along with this, Uber provides a high
quality services to its customers whether it is Uber taxis or Uber eats. Thus, due to this switching
cost of customers decreases and they are willing to pay even high prices for the services
(Opresnik, 2018).
Threat of substitute products
This threat is generally moderate for the company and for Uber Freight as well. Most of
the services provided by the Uber are highly differentiated like Uber Freight but still there are
various services which are used by other organizations as well like food, taxis etc. Thus, this

makes this threat moderate for Uber Freight where various other organizations might imitate this
service and start its new services of truck at low price.
Rivalry among firms
The intensity of competition is generally high in this industry and this makes a fierce
competition for Uber Freight. Uber freight might face a great brunt due to the strong presence of
other competitors like Ola, DIDI etc.
Ansoff matrix
This is predominately the tool which is being used by the organizations for analyzing as
well as planning the strategies for growth and development.
Market penetration
This is basically the strategy in which organizations mainly focuses upon promoting the
existing products and services within already established market. In short, within this
organization mainly captures a great market share by selling and advertising the already
established product within the existing market (Zhang and Yeung, 2016).
Market development
This is the another most important growth strategy in which organizations endeavors to
gain a great share of market by selling the existing products and services in new markets. In the
nutshell, this strategy is all about promoting the product which has helped company in gaining
competitive advantage within the new market segment and attracting the new customer segment.
Uber can take its existing products like taxi services within the new market where it has not yet
marked its presence as this will help them to establish its position and enlarge its customer base
(Magalhães and et.al.,2020).
Product development
This is the strategy in which organizations develop new products as well as services and
then target the exiting market for achieving growth. This strategy mainly addresses that
organizations is focused in gaining a large market share and enlarging customer base by

introducing new products which will help to cater the needs and demands of the existing market
segment (Dib, 2018).
Diversification
Within this strategy, organizations usually come up with the new products and services
and target the new market and customer segment. In short, this is a kind of growth strategy
wherein organizations tries to capture a great share of market by introducing new product and
services within the new market segment. This mainly involves related as well as unrelated
diversification.
For gaining the competitive advantage as well as establish the position in market, Uber
will mainly make use of product development as its growth strategy. Company will introduce the
new product which is Uber Freight and will promote and advertise it in the existing market
which is Australia. Uber already have a chain of taxi services and Uber eats in most of the cities
of Australia like Sydney, Melbourne. Besides this, Uber has gained a high popularity and
goodwill in the markets of Australia. Thus, bringing the new product which is Uber Freight
within the already established market of Australia will help the company to enlarge its customer
base and gain a great market share (Hansen and Juslin, 2018).
Marketing plan
Customer segments
The new service of Uber freight will mainly target the customers according to the
psychographic variable. Uber mainly applies various methods of segmentation but it mainly
relies upon the psychographic segmentation. Uber for its new service will mainly segment the
customers on the basis of their lifestyle and interests. This service will mainly target the lower
and middle class people and along with this will focus on customers who are strugglers and
mainstreamers (Kreutzer, 2019).
Market positions
Uber mainly utilizes pricing as well as user-benefit positioning strategy in order to attract
its customers and thus entertains the people of different social classes. For its new service which
is Uber Freight, this company will make use of user-benefit positioning. In this positioning,

company mainly focuses on the features and benefits of products which will cater the needs of
end users. Thus, company will use this positioning by connecting truck drivers with the shippers
in order to make the deliver process more convenient (Rayme and et.al.,2019).
Marketing mix
Product
There are wide ranges of products which are being offered by the company including taxi
services, Uber eats etc. The new product which company is launching is Uber freight app.
Price
In order to gain a great profit and penetrate the markets of Australia with this new
service, Uber will utilize competitive pricing strategy. In this, the price of its trucks as well as
charges will be set according to the prices set by their competitors (Kotler and et.al.,2017).
Place
This new service will mainly entice the customers of Australia market and will be
promoted in major cities of Australia. Besides this, the new service will be promoted in various
car showrooms, malls, cinema halls etc.
Promotion
The new service of Uber Freight will be promoted as well as advertised with the help of
online and offline channels. Within online channels, it will be promoted through social media
and website. Within offline channels, company will make use pamphlets which will be
distributed in places like cinema halls, malls etc.
IMC plan
The company will make use of various marketing communication channels in order to
attract the customers like intermediaries, direct selling and social media. For covering the major
and bid cities of Australia and to tap a large market, Uber will hire various promotional agents
who will promote this service at major areas like car showrooms, malls etc. For the smaller cities
and some rural areas, the employees of company will make use of direct selling channel where

they will have face to face interaction with people to make them aware about the new service.
Besides this, company will also use social media like Facebook, Instagram etc. where it will post
the various features of its new service (McDONALD, 2016).
CONCLUSION
It has been summarized that a well-through marketing plan mainly provides a basic idea
to the organization about various aspects. Through this marketing plan, organizations come to
know the various factors which will impact the launch of new product. Besides this, plan also
helps them to identify the various market segments where the new product will be promoted
along with the customer segments.

REFERENCES
Books & Journals
Dib, A., 2018. The 1-Page Marketing Plan. Page Two Books.
Fine, S.H., 2017. A Generic Social Marketing Plan. In Marketing the Public Sector (pp. 289-
300). Routledge.
Flores, D and et.al.,2017. TEAM MARKETING PLAN.
Hansen, E. and Juslin, H., 2018. Putting together a Marketing Plan. Strategic Marketing in the
Global Forest Industries.
Kotler, P and et.al.,2017. Marketing for hospitality and tourism.
Kreutzer, R.T., 2019. Strategic and Operational Marketing Plan. In Toolbox for Marketing and
Management (pp. 225-229). Springer, Cham.
Magalhães, M and et.al.,2020. Canvas marketing plan: How to structure a marketing plan with
interactive value?. In Handbook of Research on Emerging Technologies for Effective
Project Management (pp. 158-168). IGI Global.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Mononen, A and et.al.,2019. Digital marketing plan for small and medium sized companies.
Opresnik, M.O., 2018, July. Effective Social Media Marketing Planning–How to Develop a
Digital Marketing Plan. In International Conference on Social Computing and Social
Media (pp. 333-341). Springer, Cham.