Uber: Brand Loyalty and Sales Growth Marketing Strategy

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AI Summary
This report analyzes Uber's current marketing strategies, focusing on their effectiveness in increasing brand loyalty and sales profitability among Generation Y (millennials). The research explores Uber's approach to sponsoring events, utilizing hyper-local processes, and offering free trials and special promotions to attract millennials. It examines the role of loyalty programs, technological innovations like mobile payments and driver ratings, and the importance of authenticity and convenience. The report identifies the need for Uber to enhance customer experience across all channels, recognize customer needs, and maintain a strong brand aligned with millennial values such as excitement and adventure. It highlights the importance of social media marketing, personalized interactions, and customized offerings to drive purchasing decisions. The report also addresses the challenges Uber faces, including the need to adapt to changing customer behaviors, diversify its business, and maintain a relevant business model. The research objectives are to understand how the current strategy through social media maintains brand loyalty, identify how the current strategy enhances sales growth, examine how sales growth affects purchase intention, and investigate how improvement opportunities maintain loyalty. The report includes a project schedule and references to support the analysis.
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Running Head: Generation 0
Marketing and audience research
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Generation 1
Research Title
The research Title of this study is to evaluate the current strategy of increasing brand
loyalty and sales profitability among Generation Y within Uber (Rappaport, Xing,
MacCartney, Molisch, Mellios & Zhang, 2017).
Research Background
Uber is adopting the current strategy as sponsoring events, embracing a hyper-local
process, and providing them free trial that transforms the lives of millennial. Every time they
launch new special offers i.e. exciting coupons and free trips to attract generation Y and
creates a positive buzz around them. They have also executed several loyalty programs to
encourage commitment and gratitude in order to generate brand loyalty towards millennial.
They have set out to reinvent the whole experience to make it enjoyable and seamless across
the journey. They have pay the way towards technological innovation as installing mobile
payments drivers’ ratings, seamless payments, and concentrates on authenticity, convenience,
and trust. They extend its pressure to different channels and striving to satisfy the needs of
the millennial on its own platform (Heinemann & Shume, 2015).
Uber needs to enhance their customer experience, which can be done with the help of
every channel. It is stated that with lower brand loyalty among Generation Y, customer
experience has become more important. They need to recognize their current as well as
targeted customers’ needs. Uber needs to maintain and exceed Generation Y Expectations at
every point of time. They need to recognize improvement opportunities to reduce effort and
grab the attention of every person to maintain loyalty. Uber needs to maintain a strong brand,
which should be aligned to different needs of Generation Y. They need to connect the brand
with the Generation Y value associated with excitement, wellness, status, travel, and
adventure. It makes them feel connected, assist to make purchases, and become loyal
customers (Smith & McCormick, 2019).
Uber needs to adapt their marketing as well as business strategies to successfully
address the changing behaviour of customers. They have to generate outstanding content,
which should be more actionable, appealing, and informational. They need to be constantly
active which social media platform did customers use such as Instagram, Snapchat, and
Facebook. They should enhance their mobile as well as a digital presence to increase
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Generation 2
awareness and sales among millennial, which can be done with the help of social media
channels, applications, and a responsive website. Uber should focus on the friendly user
interface with a quick navigation bar, which is an easy-to-use search engine to enhance
convenience. They should diversify the business beyond the domestic market in order to
enhance sales profitability and growth (De Villiers, 2017).
They should engage with them post-purchase with the help of personalized
loyalty incentive programs and mobile tracking facility. It is stated that millennial expect to
concentrate more on personalized interaction and customized offering in order to make their
experience more appropriate. As personalization has a positive influence on purchasing
decisions of Generation Y. They should adopt a one-to-one marketing strategy towards
customer interaction, which allows delivering higher value to the Generation Y people. It is
quite evident that such a strategy concentrates on offering customized driven content (Tham,
2015).
Uber can utilize diverse marketing tactics to execute personalized marketing such as
adopting cross-selling methods, utilizes triggered emails to offer accurate, timely, &
personalized information, customized loyalty incentives, and offer exclusive deals depend
upon previous purchases. They should rethink upon increased product personalization and
creation of high inventory turnover, costly, and counterproductive variety. It is stated that in a
fast-paced and hyper-connected world, Uber should invent the business as well as operated
model and after that challenge the status quo. They should maintain their business model up
to date in order to remain accurate in today’s era. They need to discover opportunities as well
as the possibility of monetizing share capacity and manage service offering through a shared
economy. They need to keep up-to-date with the expectation of millennial and rapidly
focusses on maintaining their expectations. They can get advantage from developing with
these customer trends and being capable to rapidly pivot to adjust their value proposition
(Malos, Lester & Virick, 2018).
Research problem
Uber is facing the problem regarding primary transportation service among
Millenials, which resulted in a loss of profitability and sales growth. Uber should fill the gap
between the expectation of millennial and keen objective to ensure success and growth. It is
because of the lack of market information that Millennial demands to be communicated and
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Generation 3
implemented efficiently. They need to fill the gap, which is between the client and Uber as
while briefing they need to propose the strategy, which satisfies the client and their needs are
fulfilled. As every client is happy and excited after receiving an extra coupon or free ride.
This needs to be done to minimize the gap and satisfy the client (Scheiber, 2017).
Research objectives
To understand how the current strategy through social media maintains brand loyalty?
To identify how current strategy enhances through social media affects millennial
sales growth?
To examine how sales growth affects millennial purchase intention?
To investigate how improvement opportunities, maintain loyalty?
Research Questions
To develop the current strategy of enhancing brand loyalty and sales growth among
millennial
Project Schedule
No. Activity Date
1 Project proposal April, 4, 2018
2 Develop a Research Context April 4 to 14
3 Findings of Exploratory Research:
Understand the marketing problem
April 4 to 14
4 Identify the research problem April 18, 2018
5 Understanding the research background April 18 to 20
6 Discuss the research objective April 20 to 22
7 Collection of data and research techniques April 22 to 24
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Generation 4
8 Sampling Plan April 24 to May 01
9 Prepare final report and presentation May 01 to 4
10 Submit final report and presentation May, 6, 2018
(Chen, Zhao, Wang, Huang & Lee, 2017)
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Generation 5
References
Chen, C. D., Zhao, Q., Wang, J. L., Huang, C. K., & Lee, N. C. (2017). Exploring Sharing
Economy Success: Resource-Based View and the Role of Resource Complementarity
in Business Value Co-Creation. In PACIS, 12(5), 155-169
Dablanc, L., Morganti, E., Arvidsson, N., Woxenius, J., Browne, M., & Saidi, N. (2017). The
rise of on-demand ‘Instant Deliveries’ in European cities. In Supply Chain Forum: An
International Journal, 18(4), 203-217
De Villiers, B. (2017). Airbnb in Western Australia: New Issues for Policy Makers Arising
from a Disruptive Innovation. U. Notre Dame Austl. L. Rev., 19, 1-32
Heinemann, F., & Shume, M. (2015). Uber, Airbnb, Netflix... Australia’s Steps to Tax the
Sharing and Digital Economies. TPIIT, 13, 13-15
Malos, S., Lester, G. V., & Virick, M. (2018). Uber Drivers and Employment Status in the
Gig Economy: Should Corporate Social Responsibility Tip the Scales?. Employee
Responsibilities and Rights Journal, 30(4), 239-251
Rappaport, T. S., Xing, Y., MacCartney, G. R., Molisch, A. F., Mellios, E., & Zhang, J.
(2017). Overview of millimeter wave communications for fifth-generation (5G)
wireless networks—with a focus on propagation models. IEEE Transactions on
Antennas and Propagation, 65(12), 6213-6230
Scheiber, N. (2017). How Uber uses psychological tricks to push its drivers’ buttons. The
New York Times, 23(7), 455-543
Smith, N. C., & McCormick, E. (2019). Uber and the Ethics of Sharing: Exploring the
Societal Promises and Responsibilities of the Sharing Economy. In Managing
Sustainable Business, 33(8), 579-611
Tham, A. (2015). The ubiquitous tide of uber: Disruptive innovation in tourism and
hospitality. CAUTHE 2015: Rising Tides and Sea Changes: Adaptation and
Innovation in Tourism and Hospitality, 52(4), 721-729
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