Taxify's Marketing: Roles, Responsibilities, Mix & Plan for UK Entry

This report delves into the essential aspects of marketing, focusing on the roles and responsibilities within the marketing function, particularly in the context of Taxify's strategic entry into the UK market. It examines how marketing activities relate to the broader organizational goals, emphasizing the i...Read More

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Key roles and responsibilities of marketing function............................................................1
P2. The way roles and responsibilities of marketing relate to wider organizational context......4
LO 2.................................................................................................................................................8
P3. Comparing ways in which Taxify and Uber apply marketing mix to marketing process to
achieve business objectives.........................................................................................................8
LO 3...............................................................................................................................................10
P4. Producing and evaluating a basic marketing plan for Taxify..............................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is an activity or process of creating, promoting, delivering products and
services that have value for customers, society and business. It is the social process by which
individuals and companies attain their needs through creating and exchanging value with others.
This report is based on the international transportation company “Taxify” headquartered in
Tallinn, Estonia which is awaiting license to get launched in the UK market. This firm has
operations in 28 countries across Europe, Africa and Australia and is expecting a successful
entry into the London transport market by applying for a private hire license with Transport for
London (Tfl). The purpose of this study is to understand and attain board detailing of role of
marketing, elements of marketing mix and its interrelatedness with other functional departments
of Taxify. It also discusses about roles and responsibilities of marketing and its contribution to
organizational objectives.
LO 1
P1. Key roles and responsibilities of marketing function
Marketing is a crucial tool and a strategic discipline, which supports most of the activities
of business and an essential element of corporate strategy or plan. It is the process or activity,
which targets customers and informs rest of the departments in Taxify to deliver those goods and
services to them (Baker, 2014). It helps Taxify in identifying the source and potential products
and services for UK’s people and aids in promotional activities. Taxify focuses on practical
application and management of marketing operations. Marketing involves several activities like
preparation, planning and project managing of advertising resources to maximise promotion of
Taxify.
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Illustration: Functional areas of business
(Source: Functional Areas of a Business, 2015)
Roles and responsibilities of Marketing
 Conducting market research: To attain a clear understanding of demand, needs and
expectations of UK’s people from Taxify. It enables the firm to identify market
opportunities thereby helping in creating a marketing niche for Taxify’s products and
services (Bennett, 2010) Developing marketing strategy: They are responsible for developing strategic plans for
Taxify, which clearly states promotion of its products and services to the targeted UK
market. Identifying new business opportunities: Marketing analyses marketplace trends to
identify potential new markets for Taxify, which includes study of customer patterns,
estimate future performance of its products, etc.
Current and future trends in marketing
Marketing of 21st century is in a transitional era where advanced and latest technologies
have brought a drastic change in marketer’s work, responsibilities and strategies (Brooks and
Simkin, 2012). Needs and demands of market or people keep on changing consistently which has
made businesses to keep pace with current trends of marketing to get adapted and retain business
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with the future trends. Analysing the current drifts, some predictions are made by researchers
that will rule marketing process in future which are as follows:
 Boom in technologies as virtual and augmented reality is gaining popularity, which will
assist businesses to implement it in their campaigns to deliver real and user-friendly
experience.
 There will be increased complexity in consumer purchasing decisions and personalization
in product design will be dominant.
 AI integration is already used by several marketers and firms will explore ways to
integrate it into customer experience by introducing chatbots (Kolb, 2013).
 4 P’s might get replaced with the new approach to customer value proposition that
represents Engagement, Experience, Exclusivity and Emotion
Illustration: Current and future trends in marketing
(Source: Current and Near Future Social Marketing Trends, 2017)
Key roles and responsibilities and the way it may change in future
Marketing department performs several responsibilities like advertising, publications etc.
to develop revenue, increase market shares and contribute to Taxify’s growth and profitability
(DuBrin, 2011). As the customer expectations are changing future of marketing will be about
delivering useful and assistive experiences with technologies that are being advancing daily.
Taxify’s marketing must focus and execute certain roles and responsibilities that might have a
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change in future in the following way. They must optimize Taxify’s mobile fundamentals and
methods to ensure success in future as the customer’s want smooth mobile experience.
Expectations of advertising is rising as customers believe in receiving marketing messages,
which are personalised to their needs. Taxify must execute promotional campaigns with right
tools and insights to meet their customers hopes.
P2. The way roles and responsibilities of marketing relate to wider organizational context
Marketing function is the part of Taxify that helps in identifying successful products as
well as in promotional activities. These functions involve marketing research, product plan,
development process, advertising, sales, finance, customer service etc. It also involves various
responsibilities that are crucial for Taxify’s growth and profitability. These consists of strategy
management, sales support system, product developments, distribution systems, HR department
etc. Marketing functions has a close connection with other organizational functions that
contributes to wider objectives (Durmaz, 2011). Marketing is a part of Taxify and it is
interrelated with other departments and functional units of the organization. If Taxify needs to
plan and implement a marketing strategy, then it must require backing of finance, human
resource, sales and production department. If Taxify wants to offer any discount on product and
services, then they must communicate with the finance and production unit. Marketing function
separates entities in Taxify’s business but every department and functions are linked together to
increase profitability of firm by increasing sales.
The way marketing function will support business objectives
Taxify’s main business objective is to enter London’s transport market by gaining a
competitive edge over its competitor Uber by promising better pay to drivers and providing
cheaper rates or fees. Marketing function of Taxify will help them to increase market share and
revenue growth through increased sales and customer satisfaction. It also helps in understanding
the goals of business by assisting in market research and testing ideas generated. Marketing
formulates strategies to gain competitive advantages and sales target which will help Taxify in
gaining uninterrupted growth and profits. This function helps Taxify to render innovative
products and services to UK’s people which is unique that might gain more customer attraction
and sales.
Roles and responsibilities of marketing in the marketing environment context
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 Market research: Main role of Taxify’s marketing process is to investigate the UK
market, which includes knowledge of products, consumers, competitors, price, demand
etc. so that they can develop best good and services and deliver it to the market (Koontz,
2010).
 Market segmentation: Taxify must segment markets accurately according to the
identification of potential customers into groups or segments based on several
characteristics in large diverse market of London.
 Monitoring marketing environment: Marketing process of Taxify must identify the new
developments in target market i.e., UK and these developments provides constructive
response for improvements of its products and services. Market traits, social economic
forces, internal or external changes of market, political and legal factors etc. are some of
the developments that are involved.
 Brand equity: Marketing provides Taxify a reputation and builds a brand value among
consumers of UK and will directly assists firm to increase sales volume.
Significance of interrelationship between marketing and other functional units of
organization
Interface between marketing and business functions of Taxify consists of two major
avenues; first is developing a business plan, which is essential to coordinate marketing process
with other functions and departments of the organization. It is synchronised with other functional
units of Taxify financial, operations, procurement, R&D and the short as well long-term
corporate strategies and objectives (Hauer, 2011). Second, it is necessary for Taxify to
incorporate marketing inputs in other departments of the company. Marketing is closely
interrelated with other functional areas of the business which is necessary to eliminate potential
conflicts and confusions that might hinder corporate or market plan.
Marketing and Operations / Production: Marketing works closely with this department to
ensure adequate R&D is planned to meet customer requirements, product are manufactured to
the quality and design specifications set by client and volume of order delivery is met within
schedule time for delivery.
Marketing and Finance department: For ensuring the allocation of adequate budget to meet
expenses of research, promotion and distribution marketing needs to work closely with this
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functional unit of Taxify. It provides appropriate funds to marketing department for planning and
implementation of marketing plan.
Marketing and Human resource management: Marketing need to work closely with HRM to
ensure apt skills and abilities of employees are in place so that research and development of
innovative idea can be delivered (Jones and Rowley, 2011). It also helps to motivate staff for
meeting targets of production and create ambitious or competent sales team.
Key elements of marketing function and the way they interrelate with other functional
units of organization
Marketing orientation is an essential element in structuring and management of Taxify as
it integrates with organization, connects with external economic environment and interdependent
with other functional and operational units of company. The main elements of marketing and
their interrelatedness with other functional units of Taxify are as follows:
 Research: Market research is the prime activity to be done by Taxify to launch their
business in London. It will help the firm to understand channel required, positioning
needs, target areas ad segments. Research will also assist marketing in gaining
information about logistics, finance, resources and other business prospects. For
conducting these investigations, Taxify needs funds, which are adequately allocated by
the finance department (Moll, 2016Perreault, 2010). Economic resources for
implementation, planning, R&D strategies are also provided by this department, which
makes marketing function connect with this functional unit.
 Strategy: The processed data and information gathered after successful research helps
Taxify to create strategic ideas and innovative action plans that will provide guidance to
the firm to compete and succeed in new market. Marketing needs accurate interpretations
from the production department regarding good and services so that an accurate
marketing plan can be developed and implemented. Marketing function must have facts
known about the inventory materials and resources or production capacity to avoid losses
of implementing a market plan.
 Planning: Marketing function involves financial planning, forecasting of sales,
communication and several other factors, which considers timeline to plan strategies for
converting Taxify’s goals into success. Marketing function works with the planning
department and other decision makers of Taxify to make plans and strategy
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implementation. It will help marketing to apply action plans in production, procurement,
logistics and other functional areas of Taxify.
 Tactics: These are the short-term plans used by Taxify to target and attract customers,
which may include limited period offers that will increase publicity and sales
(Scarborough, 2016). Marketing must coordinate with HR department to inform all
employees regarding the marketing plan, align policies to increase sales. Production
department also conveys information regarding the products and services to build
accurate marketing plan of Taxify.
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LO 2
P3. Comparing ways in which Taxify and Uber apply marketing mix to marketing process to
achieve business objectives
Elements of marketing mix
It mainly has four elements; Product, Price, Place and promotion (4P’s). With the
changing business scenarios and nature of businesses, it can be extended into aspects such as
Process, People and Physical evidence (7P’S). These are used to continuously evaluate and
revaluate the business activities (Terpstra, Foley and Sarathy, 2012). It is necessary for business
as it guides firm to develop a strategy for promoting products and services to consumers.
Illustration: 7 P’s of Marketing
(Source: Are you using all of the 7 P’s in your financial services marketing? 2017)
Marketing mix serves as a base to Taxify’s business success as it cannot start its
operation in UK’s transport industry without profit that can only be generated with appropriate
promotional and advertising strategies. It is the technique or tools, which is a blend of several
factors that are controlled by Taxify to influence consumers to purchase their products. The 7P’s
are compared in accordance with two taxi-app companies; Taxify and Uber. Taxify is an
international transportation network company which is trying to launch their operations in UK
Uber technologies Inc. is a peer to peer ridesharing, taxicab, food delivery and transportation
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network company which has its operations in London which is a competitor for Taxify (Wiid and
Diggines, 2010).
The way 7P’s (Product, Price, Place, Promotion, People, Process and Physical Evidence) of
marketing will be applied to achieve business objectives
Marketing mix applied by Taxify and Uber are as follows:
Product: It is the basic essential for success of marketing that must be built innovatively
and uniquely by Taxify to satisfy needs of consumers to gain a competitive advantage. Uber is
delivering several products and services to its customers and has a strong market in London.
Price: Taxify aims to set price of its products and services at a cheaper rate to attract
customers towards their brand. Uber provide an adjusted price and has a huge impact on its sales
and demand of services and products.
Place: Taxify aims at setting up distribution in UK after understanding the market, which
is accessible to potential buyers. They can opt for franchise distribution channel to position and
distribute their services and products. Uber has an intensive supply of its good and service to
UK’ people.
Promotion: Taxify must use advertising, public relations and sales promotion elements to
boost brand recognition and sales. Uber is already accepted and has a goodwill in the UK market
as they are benefitted with the word of mouth publicity in the present scenario.
People: Employees are an important factor in marketing of Taxify as hiring and training
right people can help firm to grow business. Uber has staff who genuinely believes in the
products and services, which it creates, and they perform best to deliver quality services to
consumers (Zimmerman and Blythe, 2013).
Process: Taxify must make sure to have a well-tailored process to minimize costs which
might affect the execution of its services. Uber has good processes, which ensures standard of
service delivery, which saves time and money.
Physical evidence: Taxify must have a good physical environment to provide goods and
services with impressive buildings, well trained and groomed staff, which have a direct impact
on customer’s interaction. Uber has some issues regarding physical environments but it has
created a brand image with effective management techniques.
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LO 3
P4. Producing and evaluating a basic marketing plan for Taxify
Executive summary
Taxify aims at developing marketing strategies to launch their transport business in UK
market to improvise branding, present information to enhance attraction of customers towards
them. Firm is planning to enter in the UK market with its services for which the marketing plan
is given here.
Company Overview
Taxify is an international transportation network company founded in the year 2013.
Company is expanding into dockless electric scooters under the brand name, Bolt. It operates
through app that enables people to hail rides from their smartphones (Baker, 2014). The firm has
operations in 28 countries and received award for best mobile app in Estonia. It is the first
transportation app across world that allows customers to pay for their trips via mobile carrier
billing.
Steps involved in the strategic
plan
Activities of marketing Description of the action
plans
Marketing Audit that involves
Internal and External
assessments
Research, investigation, case
study of marketing and UK’s
market.
Market Planning and transport
industry market research
Collecting, interpreting,
sampling and presenting data
about the UK’s transport
business environment.
Gathering information and
facts regarding market,
consumers, competitors and
internal marketing results.
Identifying marketing
opportunities
Market Planning and transport
industry market research
Recognizing opportunities,
threats, strengths and
weaknesses of Taxify to
develop competency in the
transport business of UK
Setting objectives of Market planning, identifying Defining goals and ideas of
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marketing customer patterns, demands,
expectations, taste and
preferences etc.
Taxify i.e., to enter the
transport market of UK by
providing good pay to drivers
and cheap services to
customers thereby gaining
popularity and sales. Also
describing marketing and
financial objectives, which
includes; sales, market share
and profit (Bennett, 2010).
Defining marketing objectives
and strategies
Market planning and
forecasting
Presenting marketing
approach for achieving
objectives and strategies of
Taxify.
Marketing program actions Market developing to analyse
product, portfolio and brand
management, launching of
new product or service,
innovative product
development, setting price and
distribution channels
management and marketing
communications
Performance of complete
marketing activity
responsibility for attaining
Taxify’s goals.
Setting budgets for marketing
plan
Allocating budgets, planning,
forecasting, analysing cash
flows, defining investments,
predicting expenses of all
activities.
Allocating financial resources
to marketing department to
meet the requirements without
causing loss or over expense
to Taxify.
Controlling marketing
activities
Controlling, monitoring,
evaluating activities and
taking corrective actions.
Defining marketing control
activities through analysing,
assessing and observing so
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that preventive and remedial
action required can be taken
(Brooks and Simkin, 2012).
Developing a marketing strategy with clear objectives and strategy
Objectives
Taxify sets some goals and targets in terms of market scope and outcomes to achieve
business and organizational objectives along with growth and profitability. It defines its aims in
the basis of opportunities and strengths with reflection of risks and weaknesses by using SMART
objectives:
 Taxify’s goal is to enter in London’s transport market by attaining a license and render
cheap and reasonable services and gain customer attraction and satisfaction.
 Taxify wants to become the leading provider of transport services in UK thereby gaining
a competitive advantage over its rival, Uber by providing drivers with better pay and
cheaper fees by 20%.
 Taxify will be entering into the competitive London market which has shaken by several
companies. It is waiting for license to start their operations and planning to launch by end
of 2018.
Strategy
Taxify has a purposeful and effective strategy to achieve objectives within a specified
time limit, which are as follows:
Segmentation: Taxify identifies the particular groups or segments of customers by their
characteristics and needs through a market research and report as well as addresses it
successfully to gain competitive advantage (Bačík, Štefko and Gburová, 2014). Taxify focuses
on demographic and behavioural segmentation of UK’s market while preparing their marketing
plan.
Targeting: Taxify aims at selling to market segments, which render maximum profits to
the business by offering needs and requirements of target customers. Taxify targets the London’s
market by identifying the locations or areas of potential customers and behaviours and attitudes
of UK’s consumers.
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Positioning: Efforts in relation to approach the targeted customers for marketing of
Taxify’s product and services are done by product attribute strategy (DuBrin, 2011). This is a
strategy used by Taxify to make their products and services functional, useful and pleasing to
customers.
Tactics and Actions
Taxify plans certain tactics and actions to target customers by promoting their products
and services which increases customer’s base. Positioning Taxify’s products on the e-commerce
websites, advertising and promotional activities etc. are some of them. Each strategy is prepared
with many actions so that if one fails the other can be implemented which are all based on
attitude of customers. To tackle the competition Taxify introduces a better advertising policy,
which eliminates wrong means to increase goodwill of the firm in UK. They use 7P’s of
marketing mix in their marketing planning process and market segmentation procedure to
achieve organizational objectives.
Budget
An estimate of the cost and funds required to meet the expenditure must be included in
the marketing plan. This is to make accuracy and thereby avoid financial loss. The projected cost
of Taxify’s expansion in UK would be around £19 million and a £5 million must be kept in the
contingent account for emergency (Hauer, 2011).
Activities involved Cost (in Pounds)
Market research
Market planning
Advertising and promotional campaigns and
events
Human resources
Training
Technological advancements and installations
Implementation of strategy
£2.5 M
£3 M
£4 M
£2 M
£2 M
£3.5 M
£2 M
Control
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After implementing the strategic plan, a regular monitoring, evaluating and inspection
must be followed by Taxify to avoid any faults or errors that would bring a risk for the
organization (Williams, 2014). Managers must provide regular reports at specific time intervals
so that amendments required can be done without hindering the operations of Taxify.
Marketing plan
Current marketing situation analysis of the UK’s transport market structure and
functioning of Taxify is made to overcome the shortcomings. For this purpose, internal, external
and SWOT analysis of Taxify is conducted which are as follows:
Internal and external analysis
SWOT Analysis
Strengths Weaknesses Leading ride hailing platform with10
million customers Technological support
Services at cheaper rates than competitors
(Mohr, Sengupta and Slater, 2010)
 Lack of market knowledge and brand
image
 Low or less experienced employees
Opportunities Threats
 Adoption of online services and
technology for delivering services to
people of UK
 Going global or nationwide expansion
 New and innovative products and
services that are unique
 Threat of competitors like Uber who
have attained a market position in UK’s
market
 Lack of talented employees
 Political and social factors that might
hinder Taxify’s growth
CONCLUSION
The above report discussed about the aspect and principles that are used by Taxify
Transport Company for better management technique to avoid risks and enter in the UK’s
market. Marketing Mix applied by Taxify can render them attain a position in UK’s transport
market. It has been assessed that basic marketing plan is required by Taxify for expansion of its
business nationwide and growth of firm is also described in this study. If Taxify implements and
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follows the above discussed marketing plan, then there are chances for its growth and success in
UK’s transport market.
15

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