Marketing Management 2023: Grab Taxi's Marketing Plan Analysis

This report presents a comprehensive marketing plan for Grab Taxi, focusing on the Singaporean market. It begins with an executive summary outlining the report's objectives, which include analyzing internal and external factors impacting Grab's operations, identifying market competition, and developing an effective marketing strategy. The report delves into Grab's company profile, detailing its services and market position, followed by an analysis of the external environment, including political, economic, social, and technological factors. It also assesses the industrial competitiveness, evaluating threats of new entry, substitutes, bargaining power of buyers and suppliers, and competitive rivalry. The internal environment is examined, highlighting Grab's strengths, weaknesses, opportunities, and threats. Key marketing objectives are defined, targeting brand awareness, market share growth, and expansion into new markets. The report then outlines the target market segmentation, considering demographic, psychographic, and geographic factors, and proposes a marketing mix strategy including product, place, promotion, and pricing. Finally, the report includes a financial forecast, discusses strategies to overcome sales barriers, details implementation activities, and outlines the process of evaluating the marketing plan's effectiveness.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the internal and external factors faced by Grab taxi in
their business operation. In order to do so, various internal and external factors are being
identified in this report. One of the major factors being identified is the increase in the
competition in the market. In accordance to the identified issues and challenges, an ideal and
effective marketing plan is being discussed in this report. The discussed marketing plan is being
designed considering all the relevant factors and aspects. This report also discussed some key
performance indicators, which will help to evaluate the marketing plan in the future.

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Table of Contents
Introduction......................................................................................................................................3
Company profile..........................................................................................................................4
Determination of the external environment of Grab........................................................................5
Determination of the industrial competitiveness.............................................................................6
Determination of the internal environment......................................................................................8
Marketing objectives.......................................................................................................................9
Determination of the target market................................................................................................10
Demographic segmentation.......................................................................................................10
Psychographic segmentation.....................................................................................................11
Geographical segmentation.......................................................................................................11
Marketing mix strategy..................................................................................................................12
Product.......................................................................................................................................12
Place...........................................................................................................................................13
Promotion..................................................................................................................................13
Price...........................................................................................................................................14
Financial forecast...........................................................................................................................14
The market:................................................................................................................................15
Overcoming barriers to sale:......................................................................................................15
Implementation activities...........................................................................................................16

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Process of evaluation.................................................................................................................17
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................18

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Introduction
The current business scenario demands effective and innovative marketing strategies by
the contemporary business organizations. This is due to the reason that the current business
scenario for every business sector is highly competitive in nature and good number of
competitors is present (Hallback and Gabrielsson 2013). Apart from this threat for increase in
competition, there is other various factors in terms of the business environment are being faced
by the contemporary business organizations. Therefore, it is important for the contemporary
business organizations to have an effective marketing plan in order to push their newly
introduced products in the market and to increase their sales volume.
One of the major business sectors that are witnessing the huge onslaught of rivalry among
the competing organizations is the ride hailing platforms or the app based taxi services (Frenken
and Schor 2017). In recent time, more companies are introducing their online cab services in the
market, which further enhancing the risk for the existing and established organizations in this
industry. In the global market, huge number of new services is being launched. It is important for
the particular brand to have effective marketing strategy to push their service over others.
This report will discuss about an effective marketing plan for Grab taxi in the
Singaporean market. This marketing plan will also discuss about the external and internal
business factors faced by Grab taxi in their business operation and the factors that will determine
their sales revenue. Target market for the particular service will also be discussed in this report
along with the ideal marketing mix strategy. Implementation plan, expected revenue and
evaluation process of the marketing plan will also be discussed in this report.

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Company profile
Grab taxi is one of the leading ride hailing services in Singapore. Currently, they are
having their market presence in more than 5 countries and mainly in the South East Asian
market. Their major services are taxi services, car rentals and shuttles services (www.grab.com
2018). However, with the emergence of the companies such as Uber in the global market and the
rise of the Indian vendors such as Ola in the Asian market, Grab taxi is facing stiff competition
in the market from both ends. Thus, they are in the need of an effective marketing plan, which
will ensure their performance in the intensely competitive market.
Figure: 1
Market scenario in Singapore
Source: (Bloomberg Quint 2018)
From the above data, it is seen that Grab is way ahead in terms of the competition and in
all their operating countries; they are having the status of market leadership. However, it is also

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to be noted that an ideal marketing plan is important for Grab due to the reason that having
effective marketing strategies will help them to maintain the market leadership status.
Determination of the external environment of Grab
Political  It is important for Grab to comply with the regulations in their host
markets.
 Different countries are having different legislations with cab operators.
Thus, it is difficult for them to adhere to these differences.
 In some countries, stringent legislations are being initiated against the
online cab services due to the emergence of some ethical issues
(Barglind 2015).
Economical  Economy in the South East Asian regions is favorable and showing
increasing trend. It helps Grab taxi to have their market opportunities
enhanced (Burton and Wurfel 2016).
 Premium services by Grab taxi are more attracting opportunities due to
enhanced economy.
 With the entry of other global and domestic cab aggregators, it is
important for Grab to offer most favorable services in the market.
Social  Social acceptability is positive towards the taxi hailing services. This is
due to the reason of quality service by Grab.
 With enhanced purchasing power, customers are more willing to have
premium services.
 Cultural environment of the South Asian regions are also liberal to

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accept the concept of ride sharing.
Technological  Technology is the major element in the ride hailing platforms.
 Grab is having dedicated website and mobile application for cab
services.
 However, with the entry of new competitors, latest technology is being
initiated and it is difficult for Grab to stay updated.
Determination of the industrial competitiveness
Threat of new entry  Threat of new entry is low due to the reason that huge investment
is required to start the ride hailing services (Fresard and Valta
2016).
 Already the market is saturated with the presence of good number
of players. Thus, new entrants will be less attracted.
 It will be difficult for the new entrants to match the economies of
scale of the established players by having small number of fleet.
 Regulations in different countries are complex and it will be
difficult for the new entrants to adhere to all of these.
Threat of substitutes  Threat of substitute products is high for Grab taxi.
 This is due to the reason that, already good number of cab
aggregators are plying in Singapore and neighboring countries.
 Thus, the market will be competitive and profitability will be
limited.

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 It is important for Grab taxi to have effective marketing strategies
to push their service over their substitutes.
Bargaining power of
the buyers
 Bargaining power of the buyers is also high due to availability of
more options.
 Buyers are having number of app based cab services and the
switching cost for them is also low (Haucap et al. 2013).
 Thus, the preference and requirement of the market is important
to determine.
 Grab taxi should have to identify the market requirement and
expectation in order to survive in the market.
Bargaining power of
the suppliers
 Bargaining power of the suppliers is low.
 This is due to the reason that ride hailing services are having less
need of suppliers (Sheu and Gao 2014).
 However, the drivers or the partners of Grab are having more
bargaining power to influence the business operation.
Competitive rivalry  Competition in the ride sharing market is high.
 Number of similar services is competing in the same market.
 Discounts seasonal offers and promo codes are being provided by
the competitors order to have more customer traffic.
 It is always important for Grab to have effective marketing
strategies to cut off the competition.

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Determination of the internal environment
The above sections have discussed about the external faced by Grab in their business
operation in Singapore and other South East Asian countries. There are various challenges and
issues being identified. This challenge can be effectively mitigated only with the help of the
strategic capability of the internal factors of Grab.
Strengths  Grab is the market leader in the South East Asian market. Thus,
they are having more brand value compared to other players.
 Grab is having years of experience in the cab hailing market.
Thus they will be able to operate in the market more effectively
(Ackaradejruangsri 2015).
 Being a Singapore based organization; Grab is having more
customer preferences in the Singapore and other South Asian
markets.
Weaknesses  Emergence of issues such as sexual abuse has tarnished the
image of Grab in the market.
 Negative word of mouth is increasing.
 They do not have the access to the capital as the global brands
such as Uber (Adissaranggoon 2015).
 Market exposure only limited to South East Asian market.
Opportunities  Cab hailing market is increasing in the South Asian markets such
as in Indian subcontinent. Entering in these markets will have
huge market opportunities for Grab.
 Increase in the average economy is increasing the potentiality of

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the Cab hailing market (He and Shen 2015).
 Customers more prefer the premium services of the cab hailing
platforms over the traditional taxi services.
Threats  Entry of the new global and domestic players in the market will
further intensify the market.
 Emergence of more unethical and negative issues will reduce the
customer preferences for Grab.
 Entry of other innovative mode of public transportation will take
the market away from the rise hailing services.
Marketing objectives
The internal and external factors of Grab in their business operation are being identified
and determined. Thus, it is now important to determine the marketing objectives, which will act
the target from the marketing plan about to be initiated (Lee, Kozlenkova and Palmatier 2015).
 It will be targeted to build the awareness about the brand outside their existing market.
 It is also targeted to increase the market of Grab by 5 percent in their existing market.
 It is targeted to have at least 10 percent of market share in the targeted new market.
 New services will be launched according to the different market requirements in different
countries.
 It is targeted that new customer segment will be attracted with the new marketing plan
along with the existing customers.

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 More communication and media channels will be used in communicating and promoting
the services. New media channels will be involved along with the existing
communication mediums.
Determination of the target market
Determination of the target market is important to order to identify the requirements and
the market trend of the target market and offering the services accordingly. In the case of Grab,
target market will be determined in terms of demographic, psychographic and geographic
characteristics. This will help in having the understanding of different set of target customers for
Grab.
Demographic segmentation
In terms of the demographic segmentation, the target market of Grab will be both
genders. This is due to the reason that both male and female prefer to use the app based cab
services (Sandy, Gosling and Durant 2013). In terms of age, customers above 18 up to 65 will be
targeted. This is due to the reason that customers below 18 are not eligible to use the mobile apps
and customers above 65 may not be comfortable with the new age technologies. However, the
major concentration will be on the middle age population who prefers more seamless and
comfortable mode of transportation. In terms of income level, middle and upper middle class are
being targeted. Both the premium and economical services will be offered to cater to upper and
middle class respectively.

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Low service quality
Low price
Moobi Taxi
High Service quality
High price
Uber
Grab
Psychographic segmentation
In terms of the psychographic segmentation, customers who are preferring premium
transportation mode are the target customer for Grab. Target customers of Grab will be more
active and professionals who are in the need comfortable and swift mode of transportation.
Geographical segmentation
In terms of the geographical segmentation, the existing target market of Grab is the
Singapore and some other South East Asian countries such as Indonesia (Cross, Belich and
Rudelius 2015). The new target market will include countries from the Indian sub continent.
Customers from the Indian sub continent are having the need of having comfortable mode of
transportation. Market position of Grab

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According to the above positioning map of Grab, it is seen that Grab is operating in
slightly higher price level compared to Uber and other players. However, it is also being seen
that the service quality of Grab is higher compared to Uber and others. The key competitor for
Grad is Uber.
Marketing mix strategy
Product
The product class for Grab is cab service including different set of vehicles in terms of
the narrow product class. On the other hand, in terms of the wider product class, it includes other
mode of public transportations such as bus, railways and airline. In terms of the product life
cycle stage, cab service of Grab is currently standing at maturity stage (Mintz and Currim 2013).
Growth of the cab services is already completed in their existing markets. Thus, the further
growth for their services is having less probability. However, entering in the new market will
help Grab to expand the growth stage.
The key qualities of the cab service of Grab are the premium quality vehicles along with
having personalized services especially for the children and elders. However, they should have
effective customer service in order to mitigate the issues with the customers effectively at its
primary stage. In terms of the five levels of the service offerings, the core product for Grab is the
cab services to reach the customers to and from different locations comfortably. The generic
offerings of Grab are the quality of the vehicles used for the transportation. Grab use high quality
vehicles that are well maintained with having trained drivers and personalized services.
In terms of expected level, customer expects that the cab service of Brad will be readily
and widely available and will transport them to and from properly and comfortably. Augmented

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level of Grab is their trademark light green color of their vehicles. In addition, the offers and the
promo codes provided by them acts as added value for the customers. Potential level of Grab is
including electric vehicles in their fleet. This will make their business potential more sustainable.
Place
It is recommended that the service offerings of Grab should be offered in new countries
along in their existing countries. This is also recommended that Grab will have their service
exposure in the entire Asian market starting from the Indian subcontinent. Entering in the other
Asian countries will help Grab to have less business risk as entering in some other western
countries. It is also being recommended that Grab should also have offline facilities for cab
booking. This will help the customers who are not comfortable with the online technologies.
Thus, the market size will get enhanced.
Promotion
Currently, Grab is having strategy of promoting their services through different mediums
such as TVC, social media marketing and outdoor marketing. However, the advertisement and
promotional plan of them should be made more organized and planed. It is recommended that
more outdoor advertisements should be initiated in the public places such as railway stations and
airports. This is due to the reason that rail stations and airports are having the majority of need
for cabs. Social media marketing should also be initiated in order to determine the customer
reviews regarding their new launches. It is also recommended the promo code concept should be
extensively used in order to retain the existing customer base.

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Price
The demand for Grab is price sensitive due to the presence of similar other services in the
market. However, from the above positioning map, it is seen that the price level of Grab is
relatively higher compared to other competitors. Thus, it is recommended that Grab should
launch an economical service offering in order to cater to lower price segment and to attract
more customers.
Financial forecast
Sales Forecast
Number of rides 100000 150000 202500
Average price per ride in
Singapore $
$
30.00
$
35.00
$
40.00
Total Sales $
3,000,000.00
$
5,250,000.00
$
8,100,000.00
A financial forecast for sales can be defined as the total amount of sales a company aims
to make in a single year or in a given number of years (Titman, Keown & Martin, 2017). This is
determined by various factors which are known as the assumptions. A forecast is based on these
assumptions.

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The assumptions for the given product are given as follows
The market:
The market will increase by 50 percent in the first year and by 35% in the third year,
which means the number of customers will be increasing in the years.
Overcoming barriers to sale:
As the ride price would increase in the second and third year due to
increase in the fuel prices, the sales will be adjusted accordingly. As the
number of rides per year will be increasing, the revenue is increasing every
year by 50% and 30% respectively.
Hence, the following can be stated from the sales forecast:
1. During the first year the average price paid by the customer for each ride will be 30$. In
the same year the company aims to make 100000 rides based on the customer response
received and the average market size (Samonas, 2015).This would result in the sales
being $3000000 in the first year.
2. In the second year, the market will expand and it is expected that the number of rides will
increase by 50%; hence the company will be serving 150000 customers in the second
year (Brooks, 2014). .However, it plans to increase its price in the second year to 35$,
which would then help the company to make a sales of 5250000$.
3. During the third year, the price per ride will be bought 40$ and the market is expected to
increase by 35% approximately as compared to the second year. This will yield a sales of
8100000$ for the company.

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Implementation activities
Task Description Person responsible Completion
date
Market research This task will determine the
requirement and expectation of
the target market.
Person with having
experience in data
analytics.
03/05/2018
Development of
new offerings
This will involve designing and
developing the new services
according to the market data.
Person with having
technical and market
knowledge along with
the ability of
forecasting.
03/07/2018
Marketing and
promotion
Promoting the new service in the
market in order to reach out to
maximum number of customers.
Using of different and effective
media channels.
Person with having
experience in using
different media
channels.
03/12/2018
Budgeting Allocation of the fund according
to the marketing activities.
Determine the return on
investment.
Person with having
finance and
accounting experience.
31/12/2018

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Process of evaluation
Different key performance indicators will be used in order to evaluate the effectiveness of
the discussed marketing plan. Some of the key performance indicators are:
 Marketing and sales will be used as key performance indicator in order to determine the
rate of new customer acquisitions before and after the initiation of the marketing plan.
Rate of customer attrition and generation of revenue (Podgorski 2015).
 Another performance indicator is the professional service, which will include
determination of the profitability from the service.
Conclusion
Thus, it can be concluded that there are various external and internal factors being faced
by Grab in their business operation. One of the major challenges for them is the increase in the
competition. In view to the identified challenges, an ideal and effective marketing plan is being
discussed in this report. This marketing plan included different elements such as determination of
the target market and the marketing mix strategies. Effective implementation of this marketing
plan will help Grab to have greater market share and brand exposure in the global market.

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