Addison Lee: Marketing Environment, Mix, and Competitive Analysis

This report provides a comprehensive analysis of Addison Lee's marketing strategies and environment. It begins by exploring the evolution of marketing orientations, identifying Addison Lee's marketing orientation as customer-centric. The report then delves into the marketing environment, analyzing economic and socio-cultural factors impacting the company, identifying key competitors like Uber and Hailo, and examining internal factors such as premium service quality and a satisfied customer base. Furthermore, the report discusses market segmentation approaches, including income and occupation-based segmentation. Finally, it details Addison Lee's marketing mix, covering product, place, price, promotion, physical evidence, process, and people, highlighting changes to product, process, and promotion to achieve business goals. The report concludes with a summary of the key findings and recommendations for future marketing strategies.

MARKETING AND
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1 Evolution of Marketing ...................................................................................................................3
A. Describe production, product, selling and marketing orientations.....................................................3
B. Identify and explain orientation of Addison Lee with supporting examples........................................4
TASK 2 MARKETING ENVIRONMENTS..........................................................................................................4
A. Describing marketing environment analysis and its importance ........................................................4
B. Impact of economic and socio-cultural factor on Addison Lee............................................................4
C. Identifying two key competitor and potential threat on Addison .......................................................5
D. Identifying and explaining 2 internal factors of Addison Lee’s operations .........................................5
TASK – 3 ......................................................................................................................................................6
a) Concept of market segmentation and its importance for Addison Lee...............................................6
b) Approaches of segmentation that can be used by company...............................................................6
TASK -4.........................................................................................................................................................6
Marketing mix for Addison lee care service.............................................................................................6
b) The changes to product ,process and promotion in order to achive goal of business.........................7
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
In modern era, stiff level of competition brings necessity for the firm to employ sound
marketing initiatives to promote their goods and services. It comprises all the activities and
efforts that firms made to boost their product sales and thereby achieve larger market share in the
industry. With the advancement of technology, establishment marketing channel has been moved
from traditional advertisement to social media and website marketing to develop faster
communication with the consumers. Addison Lee is a London-based private hiring company
which focuses on customers need and provides service through minicabs, coaches, taxy bikes
and private jets. The thrust of the assignment is to determine its orientation strategy and analyze
both the internal and external environment for formulating effective marketing strategies.
TASK 1 Evolution of Marketing
A. Describe production, product, selling and marketing orientations
Production orientation: Companies following this concept examine their internal
capabilities and make strategies to ensure its optimum and effective use. Their key aim is to
maximize their production efficiency to manufacture qualitative and affordable goods that will
be definitely adopted by the clients.
Product orientation: This concept believe that in today’s time, customer will only
purchase that item which offer them a good value in terms of quality, innovativeness and
performance as well (Smith and Smith, 2016). Thus, here, organizations main attention is to
bring continuous improvement in their products performance.
Selling orientation: Under this, establishment follows aggressive selling programs so as
to sell their produced items without addressing market requirement; therefore, it is a risky
approach. For instance, insurance companies try to encourage more and more clients to create
insurance policies rather than building long-term relationship.
Marketing orientation: In modern era, this concept is highly preferred in the corporate
sector where the main aim of the marketer is to address what customer actually need and product
it to meet user’s expectations (Keegan and Rowley, 2017). Thus, by this way, this strategy also
can be regarded as customer-centric approach wherein consumer requirement and demand comes
at top priority.

B. Identify and explain orientation of Addison Lee with supporting examples
Consider all the above orientation or concepts, it seems now clear that Addison Lee is
following marketing orientation, in which, it first takes into account what consumer expect and
render services accordingly for the corporate benefit. The selection can be justified by different
ways, for instance, originally, business started as B2B however, in 2009, company launched an
app and begun B2C offering covering around 50% of the business. Moreover, in order to boost
customer experience and satisfaction, Addison Lee made heavy investment in Uber’s London i.e.
sharing ETA, driver tipping and off-peak weekend fares. This strategy clearly indicates that firm
opts for sharing economy (Francioli and et.al., 2017).
Besides this, addressing increasing market demand, recently, in September 2017, business
announced a new plan to increase fleet driver number from 3,600 to 4,450. In addition to this,
personalization strategy demonstrates that business unit adopted consumer-centric approach
where personalized services are offered to the user via e-mails or text messages.
TASK 2 MARKETING ENVIRONMENTS
A. Describing marketing environment analysis and its importance
Marketing environmental analysis refers to the process to identifying and addressing
changes in factors like political, social, technological, economical, and environmental and legal
regulations (PESTLE) and examines their impact on their own functioning. In an ultra
competitive and complex era, Addison Lee really need to examine changing market environment
which helps them to identify domestic, national or multi-national forces which may affect their
business operations (Smith, 2017). Although all these factors are outside entity’s control, still,
none of the firm can make plans and strategies by avoiding it. It is important for Addison because
such analysis facilitate firm to make sound marketing strategies in order to take benefit of
prevailing marketing opportunities and take actions to minimize possible threats or market risk
(Grünig and Kühn, 2015). Thus, environmental scanning both micro and macro will assist
Addison Lee’s managers in making sound plans and fuelling business growth.
B. Impact of economic and socio-cultural factor on Addison Lee
Economic factor: In taxi industry, sharing economy provides an opportunity to the
Addison Lee, under which, collaborative consumption can benefited AL with most effective and
efficient use of resources. Besides this, by the use of electric engine concept in the taxis, it can

serve their clients economically. However, on the other hand, high rate of inflation @ 3% is a
potential threat for AL (Mortimer, 2016).
Socio-cultural: Considering faster change in the customer preferences, conversion of
cabs to electric powers facilitate AL as an opportunity to decrease their running cost and creates
a favorable image among public. Moreover, loss of Uber’s operating license in London resultant
exceeding market demand provided opportunity to AL to boost their client base (Kim and Reid,
2014).
C. Identifying two key competitor and potential threat on Addison
Uber is a leading company in UK taxi industry which provides tough level of competition
to Addison Lee (AL). Evidencing it, its CEO, Lian Griffin stated that AL’s fleet size of 4800 cars
had dominated the telephonic booking trade. Firm also introduced booking app but it still
accounted only 60% of overall business (Edward, 2015). However, before just two year, Uber
brought AL in trouble due to failure of black cabs trade to persuade transportation. However, as
per recent news, Uber lost its license to operate in London, which serves as an expansion
opportunity for AL.
Thus, now Hailo Network Ltd that satisfies passengers needs through its mobile app is
one of the key competitor of AL. Moreover, Kabbee Exchange Ltd. is another big rivalry who
provide 24 hours services to the passengers with having more than 10,000 cabs in London at
cheaper rates. In addition to this, Justaxi Ltd, Comcab, Radio Taxis and others are the indirect
competitors (Berthon, Pitt and Watson, 2015).
D. Identifying and explaining 2 internal factors of Addison Lee’s operations
Premium quality services: AL provides premium quality services to their consumers for
expansion of their operations. It had also launched new brand identity & campaign to grow its
car service market share. Its new logo and renewed focus on the excellence aims at providing
unique experience to the consumers (Mortimer, 2016). It serves as a core business strength which
key aim is to satisfy client requirement which will enable AL to grab consumer traffic and larger
share (Fernández-Cavia and Cantoni, 2017).
Satisfied consumer base: Its customer-centric approach helps to provide personalized
services to the clients to meet out their need and requirement in an appropriate manner.
Moreover, it also get consumer feedback to know their satisfaction level and accordingly
decisions are being made to maximize it (Yan-hong, 2015). Thus, a satisfied client base also is a

great strength for the business.
TASK – 3
a) Concept of market segmentation and its importance for Addison Lee
The concept of market segmentation will help the company to divide the huge
homogeneous market into small -small segments. The large-unit of market will be divided in to
smaller units (Kumar, 2015. ). Based on this unit the strategies and planned will be made by
company to promote its products. On the basis of gender, age group, income, marital-status and
occupations segmentation is done by companies. In planning marketing strategy for Addison Lee
segmentation will help to divide large unit of market into small units. Base on types of
segmentation the marketing plan to expand its business will be made by company.
b) Approaches of segmentation that can be used by company
The marketing strategy of company can be made by segmenting its market on the basis of
income and occupation. As per their income marketers will divide customer into smaller
segments. According to their earning of month individuals are classified into segments. There are
basically three categories (Rallapalli and Montgomery, 2015) .They are high income, low
income and middle income group. The different facilities will be given to high income group
people (Yan-hong, 2015). In comparison, with lower income people the facilities of lower group
will be less .The mid-income group will be targeted by the company and approaches will be
made for them. As per the needs of office going people will be different in comparisons with
school going people. It will target school and college going people (Steffens and Isaak, 2014.).
These services and strategies will make in order to fulfill there requirements. The company will
segment its market into 2 groups that is income and occupation. In income further segmentation
will be done and mid-group will target .In occupation the further segmentation will be conduced
in which school or college going youngsters will be targets (Graca, Barry and Doney, 2015).
TASK -4
Marketing mix for Addison lee care service
Product – In order to connect with drivers and riders Addssion le provides car services.
The products and its services have greatly enhanced with time. There are variety of product that

it deals with (Koumpouros,Toulias and Koumpouros, 2015). The services that are provided by
this company can save the money. The needs of customers can be fulfilled by variety of rides that
are given by this company. Because of quality this product mix is important. The cabs that ear
booked are available nearby so early appointments need not to be made. The reservation need not
to be made whether it is early morning or late night. All types of rides are available from low
process to luxury. The taxi bikes, coaches , minicabs and private jets are offred by this company
(Zhang,2015).
Place – Across 674 countries the services is provided to pole. Upon networking the company is
reliable. In key locations locally it has offices. In UK,it has its headquarters.
Price - Based on affordability and availability the concept pf taxi services is based on. The cost
are saved due to option of economy (Bacil and Swilley, 2014). The infrastructure costs are saved
by company and the benefits are given to customer. For the competitors such as uber its
competitive strategy of pricing have become a major issue. The prices are calculated before a
ride is starting or after a ride is finished (Shen and Li, 2016).
Promotion – With the help of website and app the company promotes its business. A lot of
buzzes is being created by this brand due to its differentiated services .On discussion sites also
the brand is being talked about. On social media such as Facebook, twitter also promotion of this
brand is done. The promotion is done on addison lee Facebook accounts and the customer is also
made aware about new deals and discounts through this site (Kumar, 2015).
Physical evidence – In Berlin to new York it has its offices. With the help of its app and website
most business is carried out online.
Process – The important details need to be added in the app in order to hire a taxis and the
nearby taxi will come to pick up. Through the app an upfront fare is given. As the taxi arrive the
person can sit in it and will reach to its destination (Bae, 2015).
People- In its satellite customer support more than 1300 people are workings in it. Around the
globe it has created jobs for a million of people.
b) The changes to product ,process and promotion in order to achive goal of business
Product - The company should provide option for both low cost option for passengers
who seats up for 4 people and it will also provide options for low cost option for people, which
can seat up to 6 people. The two different option should be provided by this car service. The
premium facilities should also be made available in which customers can select from fleet of

stylish vehicles (Ateke and Kalu, 2016).
Price – The price will be affordable for target group .At reasonable price these services will be
given to them.
Promotion – By using site of company and social media platform the promotion will bed one.
The online platform will be used as youngsters use more technology(Beck, 2014).
CONCLUSION
Thus summing up the above report it can be concluded that key aim of production is to
maximize their production efficiency and aggressive selling is done in order to sell out its
products in market. The competition is faced by Uber .The concept of segmentation will help
company to divide market into small- small segment. On the income and occupation segment the
company will make strategies. By using social media sites such as Facebook company will
conduct promotions.

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