Grab Taxi's Marketing Planning Strategy: A Comprehensive Analysis

This report offers a comprehensive marketing plan for Grab Taxi Holdings Inc., evaluating its business operations, mission, and vision. It includes a detailed strategic analysis using Porter's Five Forces and PESTEL analysis, highlighting market competition and environment. The report assesses Grab Taxi's strengths (technology integration, brand recognition) and weaknesses (training needs), along with opportunities and threats. It defines the target market, customer value creation mix, and proposes a marketing mix, including product, pricing, and distribution strategies, along with IMC tactics. The report culminates in recommendations for improvement and control measures, providing a robust framework for Grab Taxi's marketing efforts.

Running head: MARKETING PLANNING STRATEGY
Marketing Planning Strategy
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper evaluates the business operations of transport organization named as Grab Taxi.
The paper delivers an appropriate analysis regarding the mission and vision of the company.
Along with that, the paper shares an important understanding of the business environment of
the mentioned market with precise application of the PESTEL Analysis where it is found that
the market has a stable political environment and a good economic base. In addition to this,
the paper delivers a brief analysis regarding the capability of the company where it is found
that the strengths of the company is efficient incorporation of the technology in the services
and weakness is inappropriate training and developmental needs. Along with this, the paper
delivers a market segmentation analysis and on the basis of that, the paper provides a
marketing strategy for the company. Apart from this, the paper provides justification
regarding the business level strategy of the company where it is evident that the organization
follows the diversification strategy and with a precise analysis of the business operations of
the company, the paper includes an important set of strategies for the improvement of the
business operations of the company.

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Table of Contents
Introduction:...............................................................................................................................4
Mission Statement and Marketing Objectives:..........................................................................4
Strategic Analysis:.....................................................................................................................5
Porter Five Forces:.................................................................................................................5
Competitive Rivalry: High.................................................................................................5
Bargaining power of the Buyers: High..............................................................................6
Bargaining power of the Suppliers: Low...........................................................................6
Threat of Substitutions: High............................................................................................7
Threat of new entry: Moderate...........................................................................................7
SWOT Analysis:........................................................................................................................7
Strengths:................................................................................................................................7
Weakness:..............................................................................................................................8
Opportunities:.........................................................................................................................8
Threats:...................................................................................................................................8
Target Market:............................................................................................................................9
Customer Value Creation Mix:................................................................................................10
Porter’s Generic Strategies:..................................................................................................10
Marketing Mix:....................................................................................................................13
Product Management Strategies:......................................................................................13
Pricing Strategies:............................................................................................................13
Distribution:.....................................................................................................................14

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IMC:.................................................................................................................................14
Marketing Tactics:...................................................................................................................14
Evaluation and Control:...........................................................................................................17
References:...............................................................................................................................20
Appendix:.................................................................................................................................22

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Introduction:
The significance of the marketing activities is increasing in the modern world of
business in a substantial manner and that is pretty evident with the enhanced focus of the
senior management of the companies in effective implementation of their marketing strategy.
The high intensity of the business competition in majority of the industries is seen to decrease
the market monopoly and under such situation, it becomes important for the companies to
make sure that they are able to retain their customers in an efficient manner (Lee 2016).
The ability of the companies in retaining their customers in an efficient manner and in
forming the much required customer loyalty is seen to be crucial for their success in
increasing the sales of their products and in improving the generation of their profit. Under
such situation, majority of the multinational companies are observed to focus on increasing
their efficiency in the effective management of the marketing strategies and in implementing
the required marketing and promotional activities. The paper is focused in developing a
marketing plan for a private transportation company named as Grab Taxi Holdings Inc. The
paper provides a brief idea regarding the mission and marketing objectives of the mentioned
company along with the business operations of the company. In addition to this, the paper
provides a strategic analysis on the business operations of the company along with an internal
capability analysis. Other than this, the paper discusses regarding the target market of the
company and the customer value creation mix. With a precise understanding of the marketing
objectives of the company, the paper shares important information regarding the marketing
tactics and actions of the company along with the control measures.
Mission Statement and Marketing Objectives:
With a precise look back at the mission statement of the company, it is evident that
the company is dedicated in improving their ability in such a manner that they be able to offer

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the opportunity to each and every individuals of South East Asia in travelling safely and
comfortably to their workplaces, colleges and to their other destinations (Grab.com 2019).
Considering the mission statement of the company, the senior management of the
company are aware of the fact that the achievement of their mission will not be an easy job
and under such situation, the company seeks active participation of all their existing and
probable customers. Having said that, the objective of the company is not only to provide
better transportations services to their customers for the much required generation of
increased profit rather the company is seen to be determined in generating considerable
number of employment in the region.
Considering the marketing objectives of the company, it is evident that Grab Taxi has
the expertise of promoting their business activities through their mobile application. The
senior management of the company is more inclined towards the management of the quality
in their services. Hence the company has certain restrictions in applying the low pricing and
that is pretty evident with their application of value based pricing. The company has the
expertise of conducting their marketing activities across 168 number of cities where it
operates (Grab.com 2019). Along with this, the company is seen to offer a wide range of
services which includes the Grab Taxi, Grab Car, Grab Remorque, Grab Bike, Grab Hitch,
Grab Express, Grab Fresh, Grab Pay and Grab Food (Grab.com 2019).
Strategic Analysis:
Porter Five Forces:
Competitive Rivalry: High
With a precise focus on the Malaysian online cab industry, the growth of the
mentioned market is pretty prominent. The revenue of the industry is observed to be 558
million US dollars in the year 2019 and the industry is expected to have an annual growth

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rate of 15.7% from 2019 to 2023 (Statista.com 2019). The mentioned growth rate is expected
to increase the market volume of the nation to 1001 million US dollars by the year 2023
(Statista.com 2019). In the year 2019, the user penetration of the mentioned industry is seen
to be 12.7% and that is expected to increase to 17.7% by the year 2023 (Statista.com 2019).
The current average revenue per user is estimated to be 135.38 US dollars and the rapidly
increasing growth rate of the mentioned industry is expected to increase the value of the
average revenue per user in recent years (Statista.com 2019). Under such situation, the
company is expected to face intense competition from the part of Uber, Easy Taxi, EzCab
and ComfortDelGro (Comfortdelgro.com. 2019).
Bargaining power of the Buyers: High
With a precise consideration towards the ability of the above mentioned companies in
providing quality service to their customers and the capability of applying competitive
pricing, it is understandable that the company faces a high level of bargaining power of their
buyers. The strong connectivity and the efficient management of the business operations from
these many service providers enabled the customers with considerable number of options to
choose from.
Bargaining power of the Suppliers: Low
Considering the business operations of the mentioned company, it is evident that the
organization experiences the services excellence of a large number of efficient and skilled
drivers and at the same time, the company is able to set up a pool of suppliers for the
management of the required infrastructure which includes the taxis and the parts and
equipment for the maintenance. Hence the impact of the suppliers is significantly low on the
business operations of the mentioned company.

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Threat of Substitutions: High
As mentioned earlier, majority of the competitor organizations of Grab Taxi have the
excellence of implementing low pricing and at the same time, they have the capability of
maintaining the quality of their business operations for providing a safe ride to the customers
to their destinations. Hence the business operations of the company is associated with higher
degree of substitutions.
Threat of new entry: Moderate
The growth of market is one of the crucial motivator for the new organizations in
entering the market. Having said that, the significant requirement of monetary investment for
the development of the required infrastructure and the intense level of competition offered by
the market leaders are major concerns for the new companies in entering the market
(Mahendra et al. 2014). While the increasing number of users is influencing the new
companies in entering the market, the strict implementation of the environmental legislations
from the part of the government raised the concern of the business houses in entering the
market. Hence, the company is seen to face a moderate level of threat from the part of the
new entries.
SWOT Analysis:
Strengths:
The efficient incorporation of the technology in the services of the company is one of
the major strengths of the company.
Along with that, the corporate culture of the company is also a crucial factor
responsible for the improvement of the sustainability of the business operations of the
company.

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Other than this, the strong brand recognition of the company is an important success
factor in attracting such large number of customers in the South East Asian region (Grab.com
2019).
However, the most important strength of the company is the diversified service
offerings of the company. The company simultaneously operates in three different industries
which includes the transportation, financial services and the commercial delivery industry
which makes the service offerings of the company unique in nature.
Weakness:
Considering the weakness of the company, it is evident that the company faces the
need of improving their training and developmental facility for the improvement of the skills
and competencies of their drivers. In many cases, the attitudes and bad behaviours of the
drivers spoil the opportunity of customer retention (Mei and DULA 2016).
Other than this, the company lacks the much required efficiency in their customer
relationship management system and this leads the company towards the incompetent
management of the customer grievances.
Opportunities:
The technological advancement provides considerable amount of scope to the
company in improving the excellence of their business and in improving the facilities that
they offer o their customers.
For sustainable business operations, the company requires to improve their brand
image and under such situation, the company has the opportunity to contribute in the socially
responsible practices with the help of CSR activities.

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Threats:
The threats for the company are the constant switch of the brands form part of general
customers.
At the same time, the intense price war initiated in the industry, has the potential to
affect the financial stability of the company (Mei and DULA 2016).
Target Market:
Parameters Selection
Age 18 to 45 years
Income 30000 MYR annual salary (Minimum)
Gender Both male and female
Others Frequently uses the social media platforms
and are inclined towards the consumption of
the online advertisements.
With a precise understanding of the services of the company, it is evident that the
company is in need to target the customers of the youth generation. Considering the
distribution of the labour and employees in the Malaysian market on the basis of the age, it is
understandable that the business industry is largely populated by the youth employees. Under
such situation, the company has the scope to provide the much required remedy to those
employees in finding the right option for their travel. Hence, it is understandable that the
company has the capability to conduct a significant business through targeting the customers
belonging the age group of 18 years to 45 years.
Apart from this, the company is expected to cover both male and female customers
through their services. With a precise look back at the dynamics of the labour and

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employment market, it is evident that the participation of both male and female employees in
Malaysia, is pretty significant and the preferences of the customers of both the genders
towards travelling to their destinations through the cabs, is notably high (Mohammad 2014).
Hence, the company requires to target both male and female working professionals as that
will ensure that the company maintains a strong sales of their services.
Considering the pricing strategy of the company, the company is required to target the
customers with the annual salary of 30000 MYR. The objective of targeting the customers of
the mentioned income group is to influence the repetitive purchase intention of the customers.
At the same time, it will be easy for the company to target the customer group having active
presence in the social media platforms as a major section of the company’s business
operations is dependent on technology and social media.
Customer Value Creation Mix:
Porter’s Generic Strategies:
The business operations of the Grab Taxi reflects strong focus of the senior
management of the company towards the diversification of their services and that is evident
with the operations of the company in three different industries such as transportation,
commercial delivery and financial services. Along with this, the ability of the company in
introducing the services such as the Grab Taxi, Grab Car, Grab Remorque, Grab Bike, Grab
Hitch, Grab Express, Grab Fresh, Grab Pay and Grab Food, is significant in stating the urge
of the senior managers of the company regarding the diversification of the products and
services of the company (Grab.com 2019). Having said that, the company is able to
understand the preferences of the customers towards the social media and the online
platforms and that influenced the decision makers of the company to incorporate the
technological advancement in their services. The senior managers of the company are able to

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understand the availability of the mobile phones amongst the citizens of the nation and that
influenced them to develop the mobile application for their business purpose. Hence, the
interest of the senior managers of the company towards aligning their business operations in
accordance to the specifications of the customers is pretty prominent.
With a precise focus on the business activities of the company, it is visible that the
senior management of the company is largely focused in designing their services in
accordance to the specifications of the customers. The Malaysian transport users are observed
to have considerable amount of preferences towards variety of transportation services which
includes taxi, bike and cabs. With a precise understanding of the fact, the senior management
of the company were observed to put strong emphasis on the design of their services and the
success of the company is pretty visible with Grab Taxi, Grab Car, Grab Remorque and Grab
Bike (Grab.com 2019). On the other hand, the company had the expertise of conducting
sustainable business in other industries such as commercial delivery and financial services as
well. Having said that, the urge of the senior managers of the company in entering the above
mentioned industries is also based on their estimation of the customer demands.
Considering the business dynamics of the nation, it is understandable that the growth
of the above mentioned industries will continue in recent years. At the same time, the
demands of the financial service management amongst the customers of the nation is
expected to increase with the improvement of the economic condition in the nation. Hence, it
is understandable that the citizens of the nation are more inclined towards the consumption of
the modern techniques of the finance management. Hence the recognized demands amongst
the citizens of the nation regarding the efficient management of their wealth and financial
resources influenced the senior management of the company in the design of the service such
as Grab Pay (Grab.com 2019). On the other hand, the demands of the commercial delivery