Addison Lee's Marketing Mix and Segmentation: A Detailed Analysis

This report provides a comprehensive analysis of Addison Lee's business activities and operations, focusing on its marketing strategies. It explores the evolution of marketing orientations, including production, product, selling, and marketing concepts, and examines Addison Lee's market orientation. The report delves into the marketing environment, utilizing PESTLE and Porter's Five Forces analyses to assess external factors and competitive landscapes. It further examines the company's microenvironment, identifying key competitors like Uber and Hailo, and conducts a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats. Market segmentation is discussed, outlining mass marketing and concentration strategies. Finally, the report assesses Addison Lee's marketing mix, encompassing product, place, price, promotion, physical evidence, process, and people, offering recommendations for improvement. The report emphasizes the importance of these strategies for Addison Lee's success in the global market.

Running head: Marketing & management
Marketing & management

Marketing & management
Table of Contents
Introduction.................................................................................................................................................3
Task 1Evolution of marketing.....................................................................................................................3
A. Describe the Production, product, selling and marketing orientations................................................3
B.Market orientation and two approaches of Addison Lee......................................................................3
Task 2: Marketing environments.................................................................................................................4
A. Marketing environment analysis.........................................................................................................4
B. Economic and socio-cultural factors...................................................................................................4
C. Microenvironment and competitors of the Addison Lee company......................................................5
D. Strengths and weaknesses of the Addison Lee....................................................................................5
Task 3: Marketing strategies........................................................................................................................6
Market segmentation...............................................................................................................................6
B. Two segmentation approaches............................................................................................................6
Task 4: Marketing mix................................................................................................................................7
A. Marketing mix of Addison Lee...........................................................................................................7
B.Recommendation to improve the marketing mix of Addison Lee........................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
Appendices................................................................................................................................................12
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Introduction
The report talks about the business activities and operations of the Addison Lee. It
explains that how the company is overcoming on the competitors in the world. It describes that
how the firm is using marketing mix strategies to gain the competitors benefits within the
organization. It describes the SWOT analysis; pestle analysis and porter five forces model to
attain and analyze the mission, values, and strategies of the competitors. Further, it explains the
market segmentation to reach the target market around the world.
Task 1Evolution of marketing
A. Describe the Production, product, selling and marketing orientations
Addison lee uses production, product concept, selling and marketing orientation concept.
The company uses these concepts to gain long-term mission and vision of the firm. The product
concept is one of the biggest and oldest orientations concepts. The main aim of the production
concept is to improve and enhance the distribution and production efficiency. Further, the
company is focusing on the product concept to differentiate its product from the competitors’
products around the world. It uses the selling concept to increase and maximize the revenue and
sales of the Addison Lee. In this way, the company is able to make a reciprocal relationship with
customers across the world. It also helps to reduce the risks and challenges of the market.
Marketing orientation concept is also used by the company to analyze and evaluate the global
market. Through marketing concept, the company can analyze and evaluate the needs,
requirements, and expectations of the customers in the world. The main aim of the marketing
concept is to find the right product for the target customers in the universal market. The company
uses all these concepts to provide satisfaction and moral to the customers. It increases and
enhances the customers’ values and worth around the world (Nasution, Mavondo, Matanda and
Ndubisi, 2011).
B.Market orientation and two approaches of Addison Lee
The company uses the market orientation to achieve its long-term objectives and goals of
the firm. By using this orientation, the company can evaluate and analyze the climate and
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conditions of the market. It also measures the external factors and challenges which can affect
the business activities and operations of Addison Lee in the United Kingdom. It is one of the
biggest global players in the UK. The company can evaluate and analyze the plans and strategies
of the competitors by adopting market orientation approach. For example, the company manages
and operates more than 4,000 vehicles with a high revenue and profit by using this approach. By
adopting this approach, the company is able to carry out approx 20,000 jobs every day. Further,
the firm has obtained ISO 9002 around the world. Along with this, it uses effective information
technology and streamline process to manage and control the large number of drivers and jobs
(Iglesias, Sauquet and Montaña, 2011).
Task 2: Marketing environments
A. Marketing environment analysis
Marketing environmental analysis plays a vital role in Addison Lee to set the long-term
goals and objectives of the firm within the organization. The company uses pestle analysis,
porter five forces analysis to analyze and evaluate the external environment of the country. The
company uses pestle analysis and porter five forces model to overcome on the competitors and to
identify the plans, strategies, and policies of the competitors around the world. Porter five forces
model helps to evaluate the strengths and weaknesses of the competitors around the world.
Along with this, it uses corporate level strategies and growth strategies to determine the long-
term success and success of the organization. There are various factors exist in the environment
which can affect the business operations and an activity of the firm so marketing environment
analysis is done by the Addison lee company. In this way, the company can become a global
player in the world (Gheysari, Rasli, Roghanian and Norhalim, 2012).
B. Economic and socio-cultural factors
The macro environmental factors cannot be controlled and managed by the firm. These
factors affect the growth and success of the Addison Lee. Macro environment factors consist the
economic and socio-cultural factors which affect the strategies and policies of the company.
Economic factors include economic stability issues, decreasing energy costs and expenses and
battery costs. Along with this, socio-cultural factors include increasing preferences for renewable
energy and improving wealth distribution in developing the market. These factors affect the
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business activities adversely thus, the firm should control these factors to gain long-term growth
and success in near future. The economic and socio-cultural factors create greatest opportunities
to the firm. But the economic stability issues create a threat for the Addison lee around the
world. As a result, the company is not able to expand and flourish its business activities and
operation in the global world. These factors must be managed and controlled by the analyzing
and evaluating the PESTLE analysis.
C. Microenvironment and competitors of the Addison Lee company
Microenvironment refers to the internal environment of the company which can be
controlled and managed by the Addison Lee. The microenvironment factors include suppliers,
customers, competitors, distribution channels and the general public. Uber and Hailo are two
biggest competitors of the company which affects the business success and growth of the
company negatively. Brand switching cost is another threat of the company. Therefore, SWOT
analysis is done by Addison Lee company to evaluate and analyze the strengths, weaknesses,
opportunities, and threats of the firm. In this way, the company is able to beat the competitors
around the world. In addition, dealership regulation and low-profit margins are another major
threat of the firm (Rujirawanich, Addison, and Smallman, 2011).
D. Strengths and weaknesses of the Addison Lee
The internal environmental factors create strengths or weakness of Addison Lee business
operations and activities within the organization. The strengths and weaknesses of the company
have been discussed below (Buhalis and Michopoulou, 2011).
Strengths
 It is a popular and well-recognized brand in the United Kingdom.
 It provides a high standard of vehicles and services to the target audience.
 The company has an unlimited fleet of vehicles and operation cost is quite low in
Addison Lee.
 The prices of the vehicles are lower compared to the traditional taxi operators.
 The company is not able to control and overcome on the competitors across the world. It
affects the sustainability and growth of the firm.
Weaknesses
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 The relationship between Addison Lee and drivers is ethically questionable and they
maintain a real and reciprocal relationship and connection. Therefore, loyalty and
integrity are quite low between drivers and Addison Lee.
 Unpredictable and impulsive business model and privacy is the major concern in the
organization (Tavana and Yousefpoor, 2012).
Task 3: Marketing strategies
Market segmentation
Market segmentation is an important concept to attain success and growth in the global
market. Further, it plays a vital role to make effective and unique strategies and planning in the
organization. It is also essential to increase the number of customers around the world. Market
segmentation is the segmentation of the customer markets into the homogenous groups of the
consumers across the world. Through market segmentation, the market divides the target
audience in a different segment to evaluate and analyze the needs, wants and expectations of the
consumers around the world. Market segmentation helps to maintain sustainability in the
environment. It also helps to build and develop reciprocal relationship with customers around the
world (Styger, 2012)
B. Two segmentation approaches
Market segmentation is important to satisfy and fulfill the needs, requirements, and
expectations of the consumers around the world. There are two approaches of segmentation
which have been discussed below.
Mass marketing: Mass marketing includes the entire market of the country. Through mass
marketing, the company is able to differentiate its products from the competitors’ products across
the world. It fixes the reasonable prices of vehicles to attract more consumers in the world. It
reduces the distribution cost with increasing consumer needs and wants. It helps to achieve the
long-term sustainability of the organization (Buhalis and Michopoulou, 2011).
Concentration strategy: It is one of the biggest approaches of the market segmentation in the
market. Under this strategy, the company focuses on the products and services to increase the
number of customers around the world. It reduces the risk and obstacles of the global market to
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increase the sale and revenue of the firm. It is the effective approach of the market segmentation
to analyze and measure the plans, strategies and policies of the rivalry around the world.
These approaches could be used and adopted by the Addison Lee company when the
company is segmenting the market for 16-25 years old. Market segmentation is the important
tool to reach the target audience in the universal market. Along with this, there are four types of
marketing segmentation which include geographic segmentation, product-related segmentation,
psychographic segmentation and demographic segmentation. Addison Lee uses this
segmentation to introduce innovate and attractive vehicles in the global market. It also helps to
increase the market share and net worth of the stakeholders in the organization (Asamoah-
Appiah and Aggrey-Fynn, 2017).
Task 4: Marketing mix
A. Marketing mix of Addison Lee
The company uses effective marketing mix strategies to enhance and increase the demand
of the vehicles around the world. The firm is expanding and flourishing its business activities and
operations by using of effective marketing mix strategies globally. It is one of the biggest
transportation network companies around the world. The company provides services at
appropriate prices which are lower than traditional taxi services. The marketing mix covers 7 Ps
which have been discussed below (Lee, 2016).
Product: The Company uses effective product strategy to attract the target audience around the
world. It is very attractive due to its effective and unique quality. The customers do not need to
take a prior appointment of taxis and the cars always available nearby. The customers can pay
the amount through the app. Therefore, all rides are available at the low prices to meet the needs
and desires of the customers around the world (Shirokoff et al, 2011).
Place: Currently, the company is providing a variety of services to the customers in London and
worldwide as well. It’s headquartered is located in London, United Kingdom. It is providing
effective and unique services consistently. Thus, the firm evaluates and analyzes the attractive
place to gain long-term benefits in the world.
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Price: Taxi services are based on the affordability and availability. The company evaluates and
measures the prices of competitor’s products to increase the profit and sale of the organization
(Agrawa et al, 2015).
Promotion: The Company promotes its business activities and operations through its app and
website across the world. The various types of app and websites help to promote and enhance the
brand and position of Addison Lee.
Physical evidence: The Addison Lee company uses effective and unique physical evidence
strategy ensure the existence of the vehicles around the world (Dolnicar and Leisch, 2013).
Process: The effective plans and process are used by the Addison Lee to increase and enhance
the efficiency and effectiveness of the workers by using of effective process and procedures.
People: The Company works for providing satisfaction and morale to the customers in the
world. The firm provides millions of jobs to the taxi drivers within the organization (Raj,
Sasikumar and Sriram, 2013).
B.Recommendation to improve the marketing mix of Addison Lee
There are various recommendations have been given in order to change the product,
price, promotion elements of the marketing mix in order to achieve its desired results and
objectives of the firm. Addison lee must use the product differentiation strategy to differentiate
its products from the competitors’ products and services around the world. Apart from this, the
company should use pricing strategy to attract more people and to increase the sale of the
vehicles globally. In this way, the firm can meet its desired outputs and objectives in the car
service business by targeting 16-25 years old (Brei, d'Avila, Camargo, and Engels, 2011).
In addition, the firm must use effective and unique promotional and advertisement
strategies to enhance and promote the sales and efficiency of the organization. Further, various
corporate level strategies and business level strategies must be used by the firm to expand and
flourish the business activities and success of the firm. Apart from this, the organization must
focus on the plans, policies, and strategies of the competitors to predict the future loss of the firm
and to reduce the future challenges and risks of the firm. In this way, the company can achieve
favorable results and outcomes around the world (Brad and Brad, 2015).
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Conclusion
On the above discussion, it has been concluded that Addison Lee is one of the biggest
leaders in the United Kingdom. It uses various types marketing strategies and plans in order to
meet the mission and vision of the firm in near future. Further, marketing mix plays an integral
role in order to determine the course of actions within the organization. SWOT analysis and
pestle analysis are done by the company to beat the competitors in the world.
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References
Agrawal, R., Bhan, K., Balaggan, K., Lee, R.W., Pavesio, C.E. and Addison, P.K., 2015.
Unilateral acute maculopathy associated with adult onset hand, foot and mouth disease: case
report and review of literature. Journal of ophthalmic inflammation and infection, 5(1), p.2.
Asamoah-Appiah, W. and Aggrey-Fynn, I., 2017. The Impact of Occupational Stress on
Employee’s Performance: A Study at Twifo Oil Palm Plantation Limited. African Journal of
Applied Research (AJAR), 3(1), pp.14-25.
Brad, S. and Brad, E., 2015. Enhancing SWOT analysis with TRIZ-based tools to integrate
systematic innovation in early task design. Procedia Engineering, 131, pp.616-625.
Brei, V.A., d'Avila, L., Camargo, L.F. and Engels, J., 2011. The influence of adaptation and
standardization of the marketing mix on performance: A meta-analysis. BAR-Brazilian
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Buhalis, D. and Michopoulou, E., 2011. Information-enabled tourism destination marketing:
addressing the accessibility market. Current Issues in Tourism, 14(2), pp.145-168.
Dolnicar, S. and Leisch, F., 2013. Using graphical statistics to better understand market
segmentation solutions. International journal of market research, 56(2), pp.97-120.
Gheysari, H., Rasli, A., Roghanian, P. and Norhalim, N., 2012. A review on the market
orientation evolution. Procedia-Social and Behavioral Sciences, 40, pp.542-549.
Iglesias, O., Sauquet, A. and Montaña, J., 2011. The role of corporate culture in relationship
marketing. european Journal of marketing, 45(4), pp.631-650.
Lee, K.H., 2016. The conceptualization of country attractiveness: a review of
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Nasution, H.N., Mavondo, F.T., Matanda, M.J. and Ndubisi, N.O., 2011. Entrepreneurship: Its
relationship with market orientation and learning orientation and as antecedents to innovation
and customer value. Industrial marketing management, 40(3), pp.336-345.
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Raj, M.P.M., Sasikumar, J. and Sriram, S., 2013. A Study On Customers Brand Preference in
Suvs and Muvs: Effect of Marketing Mix Variables. Researchers World, 4(1), p.48.
Rujirawanich, P., Addison, R. and Smallman, C., 2011. The effects of cultural factors on
innovation in a Thai SME. Management Research Review, 34(12), pp.1264-1279.
Salerno, S., Nunziante, A. and Santoro, G., 2014. Competences and knowledge: Key-factors in
the smart city of the future. Knowledge Management & E-Learning, 6(4), p.356.
Shirokoff, E., Reichardt, C.L., Shaw, L., Millea, M., Ade, P.A.R., Aird, K.A., Benson, B.A.,
Bleem, L.E., Carlstrom, J.E., Chang, C.L. and Cho, H.M., 2011. Improved constraints on cosmic
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Styger, L., 2012. An exploration of applying rules based system modelling into a quality
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Appendices
1. Addison Lee
2. Addison Lee appoint agenda 21 digital
3. Addison Lee
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13