MCOM4040 Autumn 2017: Marketing and Communication at Addison Lee

This report provides a detailed analysis of Addison Lee's marketing and communication strategies, focusing on the evolution of marketing approaches from production orientation to marketing orientation, and how Addison Lee aligns with the latter. It examines the marketing environment, highlighting economic and competitive factors, and explores market segmentation strategies, including geographic and demographic segmentation. The report also dissects Addison Lee's marketing mix (product, price, place, promotion, people, physical evidence, and process), emphasizing the incorporation of digital marketing and the importance of social media engagement. The analysis considers the impact of technology, customer personalization, and competitive dynamics on Addison Lee's market position and future opportunities. Desklib offers this report and many other resources to aid students in their studies.

Running head: MARKETING AND COMMUNICATION
Marketing and Communication – Part 1
Student name
University name
Author note

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MARKETING AND COMMUNICATION
Table of Contents
Introduction........................................................................................................................2
Analysis..............................................................................................................................2
Evolution of Marketing....................................................................................................2
Marketing Environments................................................................................................4
Marketing Strategies......................................................................................................5
Marketing Mix.................................................................................................................6
Conclusion.........................................................................................................................8
References.........................................................................................................................9

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Introduction
In this report, the private hire services organization from United Kingdom,
Addison Lee would be considered for tending to the advancement of their marketing,
their marketing environment, marketing methodologies and marketing mix. Addison Lee
has been present in the UK market for over 40 years and their primary business
operations are centered on giving a scope of services that incorporates same day,
mobile, global and client centered delivery with the assistance of private jets, taxybikes,
coaches and minicabs. At first it was a business to business organization, after which
they extended their product/service line to customer. A part of their business
experiences the organization's mobile app and a quarter of their traffic is directed via
their website. They uncovered a fresh look and feel as a feature of their rebranding
procedure in 2016 (Addison Lee 2017). They are to a great extent devoted towards their
personalization technique. With Uber having lost their working permit in London,
Addison now have a chance of extending their customer base and procuring a vast
share of this market through technological incorporation.
Analysis
Evolution of Marketing
The four main elements that would be considered in the evolution of marketing
are production orientation, product orientation, marketing orientation and selling
orientation.
Production orientation standard communicates that any product can be sold
expeditiously if the product quality is high. This theory relies upon the economies of
scale, which propose getting cost advantage without exchanging off with the idea of the
product. Along these lines, the affiliations were focusing on accomplishing cost
reasonability by getting most diminutive yield (Babin and Zikmund 2015). Regardless,
this business model became outdated as the marketplace wounded up discernibly
worldwide and swarmed.

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Product orientation deals with the idea of its product and resembles the
production orientation. This infers the sole centralization of this business model is on the
idea of the product. Along these lines, this business model will focus on the research
and development frames in the firm (Baker and Sinkula 2015). In this way, the
affiliations should proceed always roll out improvements of the idea of the product so
the affiliation can propel, pushing forward with the conviction that any flawless product
would have the ability to viably offer itself in the market.
Selling orientation is nullifying the product and production orientation and is
revolved around the utilization of the promotion and selling of a product. This business
model focuses on the sales orientation of the affiliation. Along these lines, this model
will focus on the powerful establishment of association between the affiliation and the
customers (Goad and Jaramillo 2014). The business model will try to perceive the
necessities of the purchasers and fulfill profit maximization with tools of advertising and
marketing.
Marketing orientation is the alteration of selling orientation design of activity,
which prescribe that the affiliation will attempt to recognize the necessities, needs and
the requirements of the clients and layout the products in perspective of that factor
(Najafi-Tavani, Sharifi and Najafi-Tavani 2016). Associations that take after this
orientation delineate their activities as service practices that improve the situation of
satisfaction of the customers. This business model is the most developed and is the
eventual outcome of the evolution of the business state of the affiliations. This shows
clients had transformed into the primary purpose for the business.
Addison Lee is following the marketing orientation technique for reacting to what
their customers are asking. This can be identified with events, for instance, changing
the orientation of the business towards the clients. By re-trying their look for their £5m
marketing campaign, the affiliation has directly gone into battle with its opponents. Their
marketing procedure focuses on their settled brand values and their business
customers. Addison Lee puts an extraordinary focus in their marketing actions,
guaranteeing they are giving acceptability, quality and appropriate customer service to
their customers and using their correspondence channels. The affiliation has combined

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the usage of information technology in to their business model. Recollecting the
customer essentials and comfort, the app was made with features like "quick book" for
streamlining the outing of the customer and change of mobile browsing was managed
so the customers get the option of getting to it from wherever.
Marketing Environments
Marketing environment analysis is a kind of strategic tool. It is a strategy for
perceiving all the particular internal and external factors that can have any effect on the
performance of the organization. It additionally helps arrangement of strategies with the
organization's environment (Dawson 2014). Preparing of marketing environment
analysis for Addison Lee is basic before the preparation of their marketing strategy as
there is a need of understanding the external local, national or international powers that
influence the business. These factors are outside the prompt control line, however the
business can be balanced and accordingly can the marketing strategies, for abusing the
open entryways as they get showed while managing conceivable threats (Andaleeb
2016).
Separating the macro environment of Addison Lee, it can be seen that inside the
economic factor, it operates in sharing economy - sharing of physical or academic
resources. For this situation, Addison Lee contracts drivers for responding to customers
and driving them to locations. It is more affordable than taxis and less requesting in
arranging. It isn't accessible in all nations and gives tough competition to others. The
organization is creating at an exasperating rate, appearing at a rising economic ability of
the market (Addison Lee 2017). Customers of Addison Lee like using its easy to access
application platform, which is easy for use on smartphones. It only demands the
pressing of several buttons and the trashy price for baiting numerous people to their
site. With notoriety the prices additionally extended in huge urban groups, which is a
peril for them. The economic factor gives an open entryway for Addison to expand their
operations into new nations.
Uber was the best competitor of Addison Lee in the market anyway they were
stripped of their permit as a result of their need in corporate social responsibility actions.
In this way, they can't be considered as the present genuine competitors for Addison

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Lee. The genuine competitors for the organization are Hailo and Kabbee who are giving
firm competition in the market. Kabbee has seized bigger piece of the dull cabs in the
United Kingdom market and Hailo has been giving services at rip off prices. Along these
lines, these competitors have the advantages and limit of taking unendingly consumers
from the organization (Bashir, Yousaf and Verma 2016).
Addison Lee is a remarkable brand and they have hoisted prerequisites of
service, confirmed cars and drivers. They have a limited fleet of vehicles beginning at
now, yet the general taxi service laws don't apply for them. As they have no full-time
drivers, they have no responsibilities towards them and accordingly their operational
costs are low, depending totally on customer-to-driver interaction. With by zero
competition beginning at now in UK, they appreciate high valuation. On the other hand,
their thinking is easily substitutable, with no stopping competition from demonstrating a
comparative kind of product or services. The vehicles operating costs are high, so the
drivers don't find the opportunity to procure much (Wright et al. 2014).
Marketing Strategies
Market segmentation is gathering people or organizations with no less than one
features in common which causes them into having near product needs. For
organizations to fruitfully connect with the right customer, they require isolating their
markets into similar and identifiable segments with the help of market segmentation
(Armstrong et al. 2015). For organizations to carry on, their marketing method can't
depend only on targeting the entire mass market. Market segmentation would empower
the organization to unequivocally accomplish the customer with revise wants and
needs, which in this manner would be helpful for using the corporate capital in a more
proficient manner and take better key decisions (Armstrong et al. 2014).
Addison Lee needs both geographic and demographic segmentation as those
two are principal for knowing the regions for targeting customers who are set up for
using an "on order transportation service" as opposed to public transport services.
These cars would not be found in remote regions but instead generally in urban regions
where they can supplant taxis. Addison Lee can embrace help from two approaches.

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Using the lifestyle segmentation approach, Addison Lee can guarantee the driver
and traveler information are kept confidential, with secure payment info for both, along
with travel insurance for their customers at the season of profiting the services. The app
ought to be made absolutely smartphone user-friendly, with versatile working hours and
step by step commission payment for the drivers (Newton and Meyer 2013). Addison
can in like manner take help from an omni channel approach. The product would get
tapped into lives of customers in an extremely ground-breaking way compared to the
old method for hailing or dialing for a cab (Verhoef, Kannan and Inman 2015).
Marketing Mix
MARKETING MIX
Product Addison Lee stared as a business-to-
business company. On the other, they
started their own app service in order to
maintain their sustainability in the market.
They offer personalized service to the
customers depending on their needs and
wants. This has been possible due to
incorporation of big data in to the
business model of the organization. They
cater to different target segments
depending upon their disposable income
with various services. Their products
include taxybikes, private jets, coaches
and minicabs (Addison Lee 2017).

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MARKETING AND COMMUNICATION
Price Addison Lee caters to different market
segments depending upon their
disposable income. Thus, there is
variation in prices depending upon the
needs and wants of the consumers.
However, demand of the services offered
will have an effect on the pricing that
means prices will vary with demand.
Place The main base of operation for the
organization is in London. However, they
have expanded their business to different
parts of United Kingdom. The main target
consumers for Addison lee are the urban
population which means that they
operate mainly in urban areas in United
Kingdom.
Promotion The tradition form of media has been the
main marketing medium for the
organization. However, the organization
has incorporated digital marketing
strategies in their business model which
includes the use of social media
marketing and online medium to increase
their market penetration.
People There is parity between the number of
male and female employees working in
the organization. Addison Lee consists of
4500 cars which operate in London and
other parts of United Kingdom (Addison

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Lee 2017).
Physical evidence Addison Lee has its headquarters in
London (Addison Lee 2017). Even
though, they were a business to business
organization and acquired customers
through calls, the majority of their
customers are gathered from their
website and app service.
Process A customer can directly call the company
to book and hire a private taxi. However,
similarly they can use the company
website or the mobile app to book a
private hire. The organization will send
the cab which is available and nearest to
the location of the customer.
Table 1. Marketing Mix
Source: As created by author
The target market segment is more active on the social media, so digital
marketing is the best possible way of gaining attention of the consumers. Thus, they will
have to effectively make use of the social media websites and microblogging sites to
interact with the customers to understand their needs and demands in a better way.
Moreover, Addison will have to use cost differentiation as a pricing strategy which will
enable them to offer different prices to different target segments. This particular target
segment has low disposable income and so they will have to provide them with lucrative
discounts for increasing their repeat purchase of the services offered (Weinstein and
Cahill 2014).

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Conclusion
In this report, the private hire services organization from UK, Addison Lee was
considered for tending to the evolution of their marketing, their marketing environment,
marketing strategies and marketing mix. It was discovered that Addison Lee is adopting
the marketing orientation strategy for responding to what their customers are
requesting. Breaking down the macro environment of Addison Lee, it can be seen that
inside the economic factor, it operates in sharing economy - sharing of physical or
scholarly assets. Addison Lee is an outstanding brand and they have exclusive
expectations of service, checked cars and drivers.

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References
Addison Lee. 2017. Addison Lee: more than a London taxi | Book Now. [online]
Available at: https://www.addisonlee.com/ [Accessed 6 Nov. 2017].
Andaleeb, S.S., 2016. Services Marketing. In Strategic Marketing Management in Asia:
Case Studies and Lessons across Industries (pp. 351-382). Emerald Group Publishing
Limited.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing.
Pearson Australia.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015.Marketing: an introduction.
Pearson Education.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage
Learning.
Baker, W.E. and Sinkula, J.M., 2015. Market Orientation and Organizational
Performance: A New Product Paradox?. InCreating and Delivering Value in
Marketing (pp. 254-254). Springer, Cham.
Bashir, M., Yousaf, A. and Verma, R., 2016. Disruptive business model innovation: How
a tech firm is changing the traditional taxi service industry. Indian Journal of
Marketing,46(4), pp.49-59.
Dawson, J.A., 2014. The Marketing Environment (RLE Marketing) (Vol. 1). Routledge.
Goad, E.A. and Jaramillo, F., 2014. The good, the bad and the effective: a meta-analytic
examination of selling orientation and customer orientation on sales
performance. Journal of Personal Selling & Sales Management, 34(4), pp.285-301.
Najafi-Tavani, S., Sharifi, H. and Najafi-Tavani, Z., 2016. Market orientation, marketing
capability, and new product performance: The moderating role of absorptive
capacity.Journal of Business Research, 69(11), pp.5059-5064.

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Newton, P. and Meyer, D., 2013. Exploring the attitudes-action gap in household
resource consumption: does “Environmental Lifestyle” segmentation align with
consumer behaviour?. Sustainability, 5(3), pp.1211-1233.
Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to
omni-channel retailing: introduction to the special issue on multi-channel
retailing. Journal of retailing, 91(2), pp.174-181.
Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Routledge.
Wright, S., Emele, C.D., Fukumoto, M., Velaga, N.R. and Nelson, J.D., 2014. The
design, management and operation of flexible transport systems: Comparison of
experience between UK, Japan and India. Research in Transportation Economics,48,
pp.330-338.