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

1MARKETING MANAGEMENT
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.

2MARKETING MANAGEMENT
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

3MARKETING MANAGEMENT
Process of evaluation.................................................................................................................17
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................18

4MARKETING MANAGEMENT
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.

5MARKETING MANAGEMENT
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

6MARKETING MANAGEMENT
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

7MARKETING MANAGEMENT
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.

8MARKETING MANAGEMENT
 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.

9MARKETING MANAGEMENT
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

10MARKETING MANAGEMENT
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.

11MARKETING MANAGEMENT
 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.