Marketing Strategies for Taxify: UK Market Entry and Growth

Desklib provides past papers and solved assignments. This report analyzes Taxify's marketing strategies.

Marketing Essentials
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Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
LO2..................................................................................................................................................9
LO3................................................................................................................................................12
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Introduction
Marketing helps to targets what the purchaser wants so that they could plan help the organization
to develop. The below segment describes about the different marketing factors and their uses
and how they help taxify to increase their profitability. Comparison between different marketing
plans of Uber and taxify. The important strategies marketing department should focus and help
guide taxify for better development in the future.
Taxify is an international transport reticule company founded in 2013. Taxify provides taxi
services in 28 countries and 50 cities in Europe (Taxify.eu, 2019). It has its headquarters in
Tallinn, Estonia. The company also provides electric scooter rides under the name of Bolt.
Markus Villig founded it in 2013 when he was of the age of 19. His only dream was to unite all
the taxis of Texas. There are 500,000 drivers approximately which are connected with Taxify. It
is the world’s first app based taxi service. They provide most of their services to their customers
by the mobile app in which the customers have to select the type of vehicle and provide the
travelling location after which they user hop into the vehicle and reach their location and pay
accordingly to the time and amount of distance travelled.
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LO1
P1 Explain how roles and responsibilities of marketing relate to the wider organizational
context
Current and Future trends of marketing
The market in this era is totally shifting to the digitization. Taxify runs totally on the App. It is a
great thing for the market of now. People today want everything on their hands that makes
Taxify good service provider. Many people have complained about the drivers, which lead to a
loss of the company. Taxify should improve its driver rating system. More emphasis should be
given on the drivers rating. They should also focus on new trends like carpool as new
generations could be attracted. Also, provide wheel chair services and maybe emergency services
for any health related issue for the customers
Many people in the UK get drivers who do not speak the native language so the drivers must be
matched with their native language people only so that both of them are comfortable conversing.
These will increase the gains and customer base of Taxify.
For future Taxify should focus on more technologically advance cars as the time is changing and
people will rely on self-driving cars after a time it should also try to add eco-friendly cars to its
fleet as the future generations are going to be more concerned about the environment. They can
also provide a range of entertainment services like movies, live games and others who travel long
distances. (Bennett, and James, 2017).
Key roles and responsibilities of marketing
 Research
Gathering knowledge about new consumers’ demands and choice helps to process the Taxify’s
services accordingly to the market needs. The marketing department systematically gathers
information about people, communities and other companies and analyzes such information for
better understanding about what every class of people wants and the changes to make
accordingly for better acquisition of the market. Market research includes testing that helps to
process the product according to the consumers (Burns et al., 2014). Providing customer
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satisfaction and measuring the impact helps retain loyal customers for Taxify and a trust for their
services.
 Promotion
After researching about the market needs. Marketing department helps to promote Taxify’s
services by raising awareness of the merchandise and try to popularize it through various
methods like advertising, social media marketing, exclusive reviews, uses of print media. The
major role of promotion is to create companies apart from their commentators many businesses
will not try promoting knowing there is no competition in the business so promotion also helps
you companies to stay ahead of their rivals (Andrews, and Shimp, 2017). It also creates
awareness about new products and grabs the attention of more and more consumers. Advertising
industry runs on business promotion the whole industry is dependent upon the marketing
department as their will not be the need of advertising if companies decide not to promote their
product.
 Budget
The marketing department helps you to measure on how much Taxify need to invest in acquiring
new customers and resume the relation of the existing one. It helps to create the organization
more strategize like to plan the budget for the personal finances, promotion budgets and how to
use Taxify’s resources so that it can prevent the company from suffering any kind of losses.
Even due to strategic planning companies can track their investment and analysis the
investment’s impact on the company’s revenue. Budget is an important factor for the marketing
department because it helps to decide how much the company should spend on the marketing
department (McDonald and Wilson, 2016).
 Monitoring consumer feedback
Any major part for the company to increase their revenue is by gathering more and more
customers. As the sales increases, Taxify’s profit increases so to maintain a growing number of
consumers companies have to know more about what they want. Marketing department helps to
gather the important data’s and information about its buyers, which helps to shape the product
according to the requirement that would keep the consumers satisfied and lead to increase in
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sales. As, consumers satisfaction also helps to build trust for the company and establish loyal
customers. Parenting consumer feedback for any positive or negative review are both equally
important as negative one helps to shape the product in a new manner where as the positive one
provide appreciation for the hard work that Taxify has done to satisfy its customers.
 Sales team requirement
It is very important to the marketing department to have a reliable sales team because it helps to
gather more and more individuals, inform them about the products, and try to influence
consumers to buy the company’s product. Sales team also provides information about what the
consumers are looking for in the products which product influenced the market the most. It acts
as a mediator between the company and the customers as they create a relation with the buyers to
help the company retain more and more customers. In this new generation where consumers can
review or websites and provide feedbacks through comments in social media a sales team can
help create a good interpersonal relation will the buyers and be the interference of companies
relationship with the customers (Ahearne, et al.,2010).
Effectiveness of marketing function with business objectives
If the research is done well, the company will be able to understand the drawbacks, which the
people face. Promotion helps people being aware that Taxify has overcome its drawbacks and
people will fall towards it. Based on the consumer feedback, it can be figured out that how much
budget would be needed to overcome the shortcomings and how many sales people will be
required to promote the brand. The company should make customer feedback as the pivot, then
hire persons, and decide a budget by which Taxify can grow both in its customer base and in
profitability.
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P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context.
 Finance
Finance helps to manage the strategic plans in the particular organization. They work closely
with the marketing department and the leaders across an organization to decide, which initiatives
make financial sense and which does not. They determine how much money would a department
receive and whether their investment will grow or shrink and at what rate. The interrelationship
between the marketing department of Taxify is that the its services help to provide profits to the
company, which lead to increases in finances of the company and the finance department can
provide more funding for the marketing department the both department are co related with each
other. Finance department deals with accounting also and provide the useful data to the
marketing department that helps them to plan for development accordingly (Malshe and
Agarwal, 2015).
 Information Technology
The new technology that people use can greatly influence the marketing department of Taxify, as
they need to stay aware of the new advances that their consumers are operating so they can
communicate and understand them better. The IT department’s interrelation with the marketing
department has greatly transformed the marketing department as it created more ways to gather
information and reach with consumers. Social media has been a great platform for advertising
and promoting products. The internet has become the central hub for gathering information.
Even to stay ahead of the competition the marketing department has to adopt itself towards new
developments hence they need an IT department whereas due to this need marketing department
has created more jobs for the IT department (Maklan, et al., 2015).
 Human Resources
The HR department is kind a distance relative to the marketing department but their work is quite
similar as they both deal with research information and planning accordingly to raise the profit
and productivity. The HR department provide the marketing department with human capital and
analyse weather its value are making any effect to the development of Taxify. They provide the
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information about any future threats they also protect the department from any kind of internal or
external disturbance and keep the workflow uniform. Whereas marketing department helps the
HR by providing resources for researching and evaluation. Moreover, help them analyze the
development of the company (Olson, et al., 2018).
 Production
Marketing department helps to increase the sales of Taxify’s services and profit, which might
also lead to an increase in production according to the demands. Marketing and the production
unit work hand in hand as marketing department gather information about the product and keeps
reshaping accordingly to the requirements, which affects the production department, as they have
to work hard accordingly to the guidance provided about their product. The main factor for the
impact of marketing department is that the production unit cannot produce more if the marketing
cannot sell the product and marketing department cannot sell more if the production department
cannot produce (Stevenson and Barnes, 2015).
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LO2
P3 Compare the ways in which different organisations apply the marketing planning
process to achieve business objectives.
Marketing mix of Taxify in comparison with Uber
Elements Taxify Uber
Product Taxify provides transportation
service through their mobile
application. User can request a
taxi or a private driver through
their mobile. They also
provide electric scooters know
as Bolt. Their products are
meant to save you the hassle
to find a taxi and provide such
services in much effective
affordable and reliable way.
Uber also uses a mobile
application to provide travel
services for their users
(Uber.com, 2019). It was
started as a simple app to
connect driver and travels. It
also offers ride sharing
services, food delivery and
bicycle sharing rides.
Price Taxify charges their customer
through calculating the
amount of distance and time
they travelled. Minimum fare
for taxify ride is around 2£.
Their concept is to provide the
most affordable efficient,
reliable and safe rides for their
customers. They also have an
option for private car or taxi.
Uber charges accordingly to
travel time taken to reach the
distance. Consumers can also
pay a flat free before the ride
to their designated location.
For their food, delivery they
charge based on the restaurant
distance and meal cost. Uber
also premium charges for
luxury cars
Place Taxify conducts their business
in 50 major cities included in
Africa, Australia, West Asia,
Uber Operates in 83 countries
and 400 cities around the
globe. Most of their cities are
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Europe and North America.
All of their services are
provided through the mobile
application and by internet.
in the North America and
Asia. It has few offices in
major location but it mostly
relies on networking.
Promotion Taxify promotes their app
mainly through social media
marketing and other digital
marketing trends. It provides
coupons and promo code to
increase its branding.
Uber mostly promotes though
their apps and websites. There
has been a significant increase
in popularity of Uber. They
also place their commercial in
billboards’ and Television. It
also uses Facebook and other
social media apps to update
user about their new offers.
People Taxify has around 500
employees and they employee
thousands of local drivers.
They also check their drivers
for any criminal records. They
are trying to provide more pay
for the drivers by keeping up
with affordable rates
Uber has more than 12,000
people working in which
around half of them are female
and other minority group
peoples. It has created
millions of jobs for the taxi
drivers worldwide.
Process User in their mobile
application has choose
between a private car or taxi
then provide them picking and
dropping locations then hop
into the vehicle. They can pay
through card or cash.
Customers use their apps to
hire a taxi and provide them
with the location to drop. Uber
calculates the fare and request
the payment upfront. Users
they simply have to get into
the car and get out on their
desired location.
Physical evidence Taxify uses it app icon as the
brand image. This is how their
Uber uses it the letters in the
name as the logo. It uses this
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user recognises them. They
operate all their business
through their mobile
application. Their
headquarters are located in
Tallinn, Estonia. They also
attract their customers through
green and white coloured taxis
with taxify app icon.
logo in their mobile app food
delivery bags and a sticker of
this logo is pasted on their cars
It headquarter is situated in
Manhattan, New York.
Table 1: Marketing mix in of Taxify and Uber
(Source: created by the learner)
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LO3
P4 Produce and evaluate a basic marketing plan of an organization.
Executive summary
This segment sympathize the goals of taxify analyzing the major factors and understanding the
improvement to be made by the marketing department. Studying all about the STP process and
marketing emphasis of taxify
Vision
Taxify focuses on creating travelling easier, reliable, quicker and affordable. Relying on
technology-implemented service taxify want to make their business model more beneficial for
the customers and the drivers (Taxify.eu, 2019).
Objective
 To understand customers operating patterns
 To occupy the biggest market share
 To provide better system for the drivers and consumer to operate easily
 To make rides more reliable to for customers
Situation analytics
 External
Analyzing the company’s performance in UK region through PESTLE analysis
Political The BREXIT policy is the major factor a
company will have, as the county will
change the trading policies and the import-
export law in the UK (Hix, 2018). It could be
a huge benefactor for the Taxify’s
development in the future. Taxify’s has to
pay more in purchasing automobile in the
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