Addison Lee: Business Strategy, Marketing Analysis Report

This report provides a comprehensive analysis of Addison Lee's business strategy, focusing on its marketing orientations, environment, strategies, and marketing mix. The report begins with an introduction to Addison Lee, its founding, and its mission to provide quality car services. It then delves into the different marketing orientations, including production, product, selling, and marketing orientations, and how Addison Lee approaches each. The analysis of the marketing environment includes political, economic, social, technological, legal, and environmental factors. The report also identifies key competitors like Uber and ubiCabs and analyzes Addison Lee's strengths and weaknesses. The marketing strategies section covers market segmentation, including demographic, behavioral, psychographic, and geographic segmentation. Finally, the report examines the marketing mix, including product, place, price, promotion, people, process, and physical evidence. The conclusion summarizes the key findings and provides insights into Addison Lee's overall business and marketing approach.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1.Marketing orientations.......................................................................................................1
TASK 2 Marketing Environment....................................................................................................2
Key competitors of Addison Lee:...............................................................................................3
Strengths and weaknesses of Addison Lee that affect its operation:..........................................3
Task 3 Marketing Strategies............................................................................................................4
Task 4 Marketing mix......................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Addison Lee company was founded by John Griffin in 1975 and operates a private coach
company with a fleet of 100coaches and provides approx20,000 employment opportunities
everyday. Addison Lee becomes the most trustable car provide services company in London.
They have motive to provide quality services to their customers by providing luxury vehicles in
order to improve their quality of journey (Lee, 2012). Marketing plays an important role in
proving information about their services in more attractive manner so that large number of
customers will able to know about their company and move towards their services. Therefore it
is required for the company to identify the customers and their motive that whether they want car
services for personal use or for corporate use and should communicate according to their needs
and demands so that they able to fulfil the requirements of their customers which indirectly
increases level of satisfaction to their customers (Gurman, 2010). Communication to their
customers should be done in the form of emails or any other forms.
TASK 1.Marketing orientations
A) Production, Product, Selling, and Marketing orientations
Addison Lee company works as a car service provider to the people across UK and
worldwide in form of taxis and mini cabs for last forty years. They provide car services to their
customers along with their drivers so as to maximise the level of satisfaction.
Production: They have many luxury vehicles in order to attract and attain large number
of customers. Therefore they coordinate with the the vehicle companies to provide them luxury
vehicles in order to fulfil the need and demands of their customers (Pardeck, 2014). They also
need to hire people for the purpose of driving their vehicles in order to facilitate their customers
to travel without facing any problems.
Product: The company's main objective is to provide quality services to their customers
by offering luxury vehicles to them for travelling purpose. The company also enable their
customers to hire their services for events and couriers purpose as well. They provide high
standard quality products and services in order to achieve their objectives of maximising the
satisfaction level of their customers.
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Selling: The company sell their services all over the world in the the form of proving car
or minicab facility along with their drivers. In order to sell their services they mainly focuses on
the premium leisure users that can afford their high quality services.
Marketing: The company need to advertise their services on company's website, social
media and PR and provide the innovative services that they provide to their customers.
Production: Addison Lee produces services with the help of coordinating with other vehicles
companies with the motive of using their car for rent purpose to the customers (Lee, 2012). The
company also appoint people for driving purpose in order to provide their services. Addison lee
use updated and technology technology in it production process which help in attract more
number of customers.
Product: Addison lee offers rented car services, courier service, event transport services along
with their drivers so that their customers faces no difficulties in reaching to one place to another
(Gurman, 2010).
Selling: Addison Lee firstly identify the capability of customers and thereafter sell their services
such as rented car facility, courier services etc. to them (Pardeck, 2014). They sell their services
across different countries in order to expand their company's name worldwide. To capture a lager
market share it is very essential for Addison lee to use an effective technique of selling as this
ensure satisfaction of customers.
Marketing: Addison Lee is the largest marketing investment in London and conduct six figure
campaign named “Cool, Calm and Collected” which brings comfortness and simplicity while
travelling with Addison Lee (Benner, Hooper-Kyriakidis and Stannard, 2011). A company also
marketing their services through printing magazines and digital marketing such as social media,
online and mobile-advertising. In its marketing, it is very important that all communication and
tools of advertisement should be effectively use by firm as this help firm in serve more number
of customers.
B) Addison Lee's Approach:
Addison Lee should need to adopt product and marketing orientation in order to develop
and growth of their business across worldwide.
The company focuses on providing quality services to their customers in order to maximise their
quality of journey (Benner, Hooper-Kyriakidis and Stannard, 2011). They offers 4G Wi-Fi
connectivity and experienced drivers in their leisure vehicles such as Mercedes Benz etc. so as to
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increase the satisfaction level of their customers. The prices of their services are relatively more
high therefore they concentrate richer section of people who can afford to use their services. All
marketing programs are developed only for the selected level of people. Therefore they use
different marketing techniques to convey the information about their services. They promote
their business through its website and app. They provide high standard quality of services which
helps in generating a lot of publicity and word of mouth marketing.
TASK 2 Marketing Environment
Marketing environment analysis: It is a process to identify all the external and internal elements
which affects the performance of an organisation. Therefore it is an essential for a company to
understand external local, national and international forces that may affect and influence the
performance of company (Downey, 2014).
Political factors: It was difficult to pin point insurance lie in- if there is an accident
whether the driver is in fault or the company itself. Therefore certain rules and regulation should
be implemented that to be follow by the company.
Economic factors: Addison Lee operates in sharing economy where they are based on
sharing physical or intellectual resources. So The company hires drivers to respond to their
customers and drive them to a location.
Social factors: Addison Lee should need to create platform with the help of which their
customers enables to hire their services without facing any difficulties So that the customers
prefer to use their services rather than their competitor's services.
Technological factors:As the company provides standard quality of services therefore
the company need to provide the platform through which the customers make appointments. For
example Addison Lee app offers their customers to hire the company's services.
Legal factors: The company must follow technical usage laws, copyright laws,
labour,and employee safety laws in order to avoid complex situations in the form of criticism,
bans, and attempted bans in locations worldwide (Addison, Portugal and Vilares, 2015).
Environmental factors: The analysis of the services that provide by the company and
compare their quality services with the services offered by their competitors.
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Key competitors of Addison Lee:
The Addison Lee has many competitors such as Uber, ubiCabs and many more who provide
similar services to the people in UK as compared to Addison Lee. They provide tough
competition with each other in terms of prices, quality and quantity of services prices. Out of the
competitors we have discussed two competitors of Addison Lee which are as follows:
Uber: Uber also provides vehicles services to their customers across worldwide. They
concentrate on maintaining their prices as well as quality of services which every customers able
to afford. They offers different vehicles to different customers according to their requirements.
UbiCabs: Ubicabs also give tough competition to Addison Lee in UK in terms of
charging prices and quality of services they provide which attracts large number of customers
(Kwon, Lee and Kim, 2011).
Strengths and weaknesses of Addison Lee that affect its operation:
Strengths: Addison Lee has well-recognized brand who provides high standard of
services and verified drivers. Its operation cost is quite low as it relies on customer-to-driver
interaction therefore dispatcher should not be needed. The company faces less competition in its
market and as cashless payment is used, Addison Lee can track and choose highly rated drivers
which provided friendly environment to their customers.
Weaknesses: They have limited number of customers due to charging high fare of their
services. The cost of operating vehicles are very high and it is difficult for them to recover fixed
cost after make payment to their drivers (Anderson,McCormack and Lee, 2012). They cannot
effectively compete with their competitors as their competitors also provides same services.
Addison Lee records all the information that where their customers wants to go and from where
they pick their customers therefore it causes privacy concerns.
Task 3 Marketing Strategies
Market Segmentation: It refers to the identification of portions of the market that are different
from one another. Segmentation help the company to satisfy the needs and demands of their
potential customers. There are various approaches to segmentations which are as follows:
Market segmentation: It refers to a process of division of market of targeted customers into
groups or segments on the basis of their different characteristics, needs and locations.
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 Demographic segmentation: The company should need to know which areas to target
customers who are willing to use an “on order transportation service” over public
transport services.
 Demographic segmentation:It refers to divide the market on the basis of customer's age,
race, religion, gender, family size etc. The company first divide the targeted customers
more accurately and identify their needs and demands in order to fulfil them (Downey,
2014).
 Behavioural segmentation: It means dividing a population on the basis of their buying
behaviour towards purchasing the company's services (Addison, Portugal, and Vilares,
2015). The company targeted those customers who are aware and have knowledge about
the company's services.
 Behavioural segmentation:The company should need to divide the population according
to the motive of using their services. The corporate users need to use their services for
business purpose whereas some customers uses for personal purpose.
 Psycho graphic segmentation: The company should divide the population according to
their purchasing power (Addison, Portugal and Vilares, 2017). The number of people
who can afford their expensive services should be taken as priority. Psycho-graphic segmentation: It refers to division of market on the basis of the
customer's personality traits, attitudes and interest (Kwon, Lee and Kim, 2011). It means
the company targeted those customers who shows their willingness to purchase their
product or services.
 Geographic segmentation: This type of segmentation divides people on the basis of
geography. They should focus on urban areas to attract customers rather than rural areas.
The demand of cab services are high in urban areas than rural areas.
 Geographic segmentation: It means division of market on the basis of geographic areas
such as by city, country, state or region , international region. The division of market also
made on th basis of rural and urban areas (Škerlavaj, Song and Lee, 2010). The company
targeted those geographical areas where they can attain stable and strong position in
market.
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Addison Lee should need to adopt geographic and demographic segmentation because the
company needs to know which areas to target for customers who are ready to use an “on
transportation services”. The users can be available in urban areas where large number of
population has high purchasing power who can afford their quality services.
Task 4 Marketing mix
Marketing Mix: It refers to set of actions and tools that the company use to promote its product
or services in the market in order to their achieve their desired targets.
There are 7 P' s which are as follows: Product: The Addison Lee provides leisure quality of vehicles to their customers in order
to improve the quality of their customer's journey which attracts and maximises the level
of satisfaction to their customers. They offered expensive vehicles such as ford, Mercedes
Benz etc. to their customers for travelling purpose (Lee, Park and Koo, 2015). Place: Addison Lee provides their services to their customers worldwide however the
company relies heavily on information technology to automate and managing the large
no. of drivers and jobs through GPS tracking and text messaging therefore it did not need
too many offices. Price: Addison Lee provide premium and leisure quality of services to their customers in
form of providing expensive vehicle to travel along with the drivers so the fare for the
services they provide are more expensive and therefore the company contact with the
customers who can afford their prices of the services they offered. Promotion: Addison Lee usually promotes its business through its websites and app.
However they promote their business on social medial too in order to attain and attract
large no. of customers (Škerlavaj, Song and Lee, 2010). Physical evidence: Addison Lee has main office in London but most of its business is
carried out online through its app and website. Apart form this the only physical evidence
are the premium taxis and its hospitable taxi drivers. Process: The process which the customers book their vehicles as well make payment
online and also provide information about their journey through the app so that the
company can easily find out the destination of the customers.
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 People: Addison Lee has more than 20,000 people working for it including the satellite
customer support and leasing agents. The company provide many employment
opportunities for taxi drivers around the world.
(B) Recommend changes that to be made by Addison Lee in Marketing Mix:
Product: The company should need to provide services which everyone can afford. They
need to upgrade their services according to the customer's requirement.
Price: The company should need to change the price of their services in order to attract
large no. of customers. They should need to charge fare for their services which maximum
people can afford to hire their services.
Promotion: The company should need to find out new platform where they can promote
their services everywhere without consuming less time. The should need to advertise on TV and
social sites which helps them in improving their company's image as well as attract new
customers. As audience between the age of 16-25 are more active on social sites such as
Facebook, Instagram and on TV therefore they could implement such promotional strategies on
such platforms which helps in influencing the behaviour of customers and motivate them to use
their services for personal as well as corporate use.
CONCLUSION
With help of this report it can be concluded that it is essential requirement for Addison
Lee to implement marketing policies related to the providing information about the services they
provide. They need to analyse the marketing environment and implements action in order to
compete with their competitors. There are different factors which affects the operation of
business therefore it is important to evaluate the affecting factors and should required to
formulate strategies in order to attract the customers through providing their valuable services
where their customers want. They should need to find out the demand and supply of their
services so as to fulfil its requirements which also helps in achieving their goals and objectives.
Proper evaluation of market environment is must for Addison Lee in order to make impact on
their services.
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REFERENCES
Books and Journal
Lee, G. , 2012. Test-driven iOS development. Addison-Wesley.
Gurman, A. S. ed., 2010. Clinical casebook of couple therapy. Guilford Press.
Pardeck, J. A., 2014. Using books in clinical social work practice: A guide to bibliotherapy.
Routledge.
Benner, P. E., Hooper-Kyriakidis, P. L and Stannard, D., 2011. Clinical wisdom and
interventions in acute and critical care: A thinking-in-action approach. Springer
Publishing Company.
Downey, G. L., 2014. The machine in me: An anthropologist sits among computer engineers.
Routledge.
Addison, J. T., Portugal, P. and Vilares, H., 2015. Unions and collective bargaining in the wake
of the great recession.
Kwon, H. , Lee, K. and Kim, H. J., 2011. Coumarin–malonitrile conjugate as a fluorescence turn-
on probe for biothiols and its cellular expression. Chemical Communications. 47(6).
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Anderson, E. , McCormack, M. and Lee, H., 2012. Male team sport hazing initiations in a culture
of decreasing homohysteria. Journal of Adolescent Research. 27(4). pp.427-448.
Addison, J. T., Portugal, P. and Vilares, H., 2017. Unions and collective bargaining in the wake
of the Great Recession: evidence from Portugal. British Journal of Industrial Relations.
55(3). pp.551-576.
Lee, E. S., Park, T. Y. and Koo, B., 2015. Identifying organizational identification as a basis for
attitudes and behaviors: A meta-analytic review. Psychological Bulletin. 141(5). p.1049.
Škerlavaj, M., Song, J. H. and Lee, Y., 2010. Organizational learning culture, innovative culture
and innovations in South Korean firms. Expert systems with applications. 37(9).
pp.6390-6403.
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