Analysis of Uber’s Marketing Mix in the Australian Market

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Added on  2020/05/28

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AI Summary
The report delves into how Uber has established a significant presence in the Australian market through its well-rounded marketing mix. By leveraging digital platforms for effective search engine optimization and affiliate marketing, utilizing social media to engage with millions of followers, and creating appealing television advertisements that resonate locally, Uber has successfully positioned itself as a personal driving service. The analysis covers the three primary categories of cabs—Uber X, Uber XL, and Uber Black—and their respective market niches. Overall, the report highlights Uber's strengths in customer service, fare estimation, real-time ride tracking, and a user-friendly app interface that contribute to its acceptance worldwide.
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Running head: Marketing mix
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Marketing mix
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Contents
Introduction......................................................................................................................................1
Summary of previous assignment....................................................................................................1
Marketing Mix.................................................................................................................................1
Product.........................................................................................................................................1
Branding...................................................................................................................................2
Quality......................................................................................................................................2
Product mix..............................................................................................................................2
Augmented Services.................................................................................................................3
Pricing..........................................................................................................................................3
Promotions...................................................................................................................................4
Digital marketing.........................................................................................................................4
Marketing Mix
Uber – Market analysis in Australia
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Marketing mix
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Social media marketing................................................................................................................4
Television advertisements............................................................................................................4
Recommendation and Conclusion...................................................................................................5
References........................................................................................................................................6
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Marketing mix
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Introduction
Uber is a leading taxi company which is powered by technology and is available globally across
633 cities worldwide. Uber has been known to provide excellent services to customers of
different segments. The company has already created enormous demand in Australia and is
giving a tough competition to many local taxi brands (Boyle & Peterson, 2015) This report is an
extension of another assignment and aims to elaborate upon the marketing mix of the selected
target market for Uber in Australia.
Summary of previous assignment
Assignment A showcased various micro and macro environmental factors that affect the business
of Uber in Australia. The assignment also throws light on two important consumer segments of
the company. These two include passengers that use uber for travel and people who use uber to
get their food delivered via Uber Eats. The last section of the assignment recommended that the
target segment that uber must focus on in the coming future should be that of people who travel
by Uber taxis. The marketing mix for this target segment is given as below:
Marketing Mix
Marketing mix of any organization aims to help gauge the tools that the company has used in
order to achieve its marketing objective (Khan, 2014). The marketing mix ideally comprises of 7
Ps of any company and lays emphasis on the product, price, people, place, promotional
strategies, physical evidence and process.
Product
The product offered to the Uber customers is the service of being transported from one place to
another at a predetermined cost. The taxi can be booked online using the company’s mobile
application which is available on android as well as iStore. The application is easy to understand
and upon booking, the driver details are sent to the consumer. The passenger can also track the
car in real time while it reaches the location. The taxi offers options of paying online or with
cash.
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Branding
Uber’s branding is innovative and highly effective. Uber is attempting to position the company
as providing everyone a private driver. For the target market of consumers who wish to use the
app to travel, effective branding strategies are highly recommended. The logo of the company is
also attractive and easy to remember (Wolf, 2014). The brand’s presence is so widespread that
travelling with Uber is now better known as Ubering.
Quality
A good quality product leads to loyal consumers. Uber does a systematic and effective
background check about all the drivers that it hires. The customers can also give rating to their
drivers after the ride is over. They can share their experiences and Uber is well known for
addressing customer complaints in a speedy manner (Wallsten, 2015).
The quality of the service is even maintained well for the drivers, as they too give ratings to their
passengers. And if a customer is known to perform in an unethical manner, the passenger can be
blacklisted.
Product mix
Uber currently offers different kinds of Uber services. These different services and their target
markets are as below:
Uber product Target segment
Uber X Capacity of four people. Economy travel.
Uber XL Targeted customers are groups of people
travelling together. Capacity for 6 people.
Economy travel
Uber Black Premium travel. High income groups targeted
who only travel by luxury cars.
Uber Pool (Upcoming) Targeted for people who are willing to share
their cabs and pay a lesser price for their
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travel
Augmented Services
Augmented services include all the additional services that are added to the primary service to
increase value of the service (Khan, 2014). Besides cab service, Uber offers various augmented
services as given below:
1. Real time tracking of cab.
2. Some cabs also have Wi-Fi.
3. Predetermined pricing.
4. Uber Boat was available for one day in Sydney for Cannes film festival.
5. Uber Chopper
6. Uber Eats.
Pricing
Pricing of any product largely determines the impact and sales it would generate in the market
(Armstrong, Kotler, Harker & Brennan, 2015). Uber has priced its service effectively by
ensuring that different products cost differently.
Uber product Minimum fare Wait time per minute
Uber X AUD 10.05 AUD 0.55
Uber XL AUD 13.65 AUD 1.75
Uber Black AUD 35 AUD 1.20
Uber offers predetermined pricing. While booking the cab the passenger will be able to know
their tentative fare. This fare will not change largely unless the destination location has been
changed or the passenger has made various stops. This helps consumers determine whether they
wish to avail the cab service or not.
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Surge pricing is another feature of the brand wherein Uber charges customers higher in case of a
larger demand for cabs in the area. During a surcharge the passenger will be able to see a
multiplier while booking the cab. A multiplier of 2 indicates that the passenger would be charged
double of original fare. This surge pricing is done to match the driver supply with the increasing
driver demand. Since the number of drivers cannot be increased at the drop of a hat, this is
Uber’s attempt at artificially reducing demand (Hall, Kendrick & Nosko, 2015).
Promotions
Promotional activities are ways through which the company attempts to reach out to its existing
and potential customers. The idea behind product promotions is to enhance brand awareness and
set the appropriate brand positioning in order to target higher sales and improved brand
recognition.
Uber has been using various strategies in order to promote the brand. The integrated marketing
communications program of the brand includes the following:
Digital marketing
Digital marketing involves the marketing of products or services using digital platforms (Ryan,
2016). Uber’s digital marketing strategies have enabled the potential consumers of the brand to
search and know about Uber easily by effective search engine optimization (West, 2012).
Moreover, Uber has been using affiliate marketing to gain more customers.
Social media marketing
Any kind of promotions done over social media platforms like Facebook, Instagram, Pinterest,
Twitter etc. are a part of social media marketing. This strategy is a leading promotional tool to
reach out to consumers as the social media usage has drastically increased over the recent years
(Tuten & Solomon, 2017). Uber has effectively utilized social media in order to build a
connection with its consumers and address customer grievances through their social listening
skills. Uber has over 16 million Facebook followers and 86 million twitter followers which
evidence the large audience for the brand.
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Television advertisements
Television advertisements by Uber are attractive and possess the ability to connect with its users.
Uber has different advertisements for different countries of operations owing to the ‘Think
Global, Act local’ strategy. Television advertisements must be effectively placed and
appropriately timed in order to reach out to a wider group of customers (Biocca, 2013).
Recommendation and Conclusion
Uber brand has marked a significant presence in the Australian market since its inception. The
service offered by the brand comprises of a taxi service and is positioned as a personal driver for
the passengers. This report has thrown light on the marketing mix of the service offered by the
brand. Uber, as a service has been widely accepted in the world due to its excellent customer
service, ability to provide an estimated fare and the real time tracking of the ride. The taxi
service can be conveniently book using the user friendly mobile application of Uber. The brand
offers three important categories of cabs, Uber X, Uber XL and Uber Black. Each of them serve
a different target market and have been successful in carving their place in the market.
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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Biocca, F., 2013. Television and Political Advertising: Volume I: Psychological Processes.
Routledge.
Boyle, P. and Peterson, C., 2015. Taxi drivers rally against Uber. Green Left Weekly, (1069), p.4.
Hall, J., Kendrick, C. and Nosko, C., 2015. The effects of Uber’s surge pricing: A case
study. The University of Chicago Booth School of Business.
Khan, M.T., 2014. The concept of'marketing mix ‘and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Khan, M.T., 2014. The concept of'marketing mix ‘and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Wallsten, S., 2015. The competitive effects of the sharing economy: how is Uber changing
taxis? Technology Policy Institute, 22.
West, A.W., 2012. Search Engine Optimization. In Practical HTML5 Projects (pp. 357-376).
Apress, Berkeley, CA.
Wolf, G., 2014. Employer Branding. Krefeld: Reemers Publishing Services GmbH.
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