Uber New Zealand: Market Analysis, Target Market, and Product Strategy

This report provides a comprehensive analysis of Uber's market strategy in New Zealand. It begins with perceptual maps illustrating brand recognition and demand, followed by an examination of Uber's positioning and differentiation strategies, highlighting its competitive advantages over rivals like Zoomy and Metlink. The report then delves into the current target market of Uber New Zealand, detailing market segmentation based on geographic, demographic, psychographic, and behavioral factors. A key recommendation is made to target senior citizens as a new market segment. The report concludes with a discussion of product development, emphasizing the need for innovative and user-friendly services, especially for the recommended target market. It suggests improvements in customer service, response times, and promotional strategies to enhance Uber's competitive edge. The report draws on various sources to support its findings.

Uber
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Table of Contents
Section 1......................................................................................................................................................2
Perceptual maps.......................................................................................................................................2
Positioning and differentiation.................................................................................................................3
Section2.......................................................................................................................................................4
The current target market of Uber New Zealand.....................................................................................4
Recommended market segment...............................................................................................................5
Section 3......................................................................................................................................................6
Product development approach................................................................................................................6
References...................................................................................................................................................8
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Section 1
Perceptual maps
DeliverEasyZoomy
Ezygo
Metlink
Green cab
Blue Babble taxi
Uber
high
brand
recogni
tion
More demand
low
brand
recogni
tion
Less demand
Figure 1: Perception Map of Uber in terms of brand recognition and demand
The companies with low brand recognition cannot create much demand for their services in the
market. Metlink though has higher brand recognition is unable to create demand in the market.
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Figure 2: Perception map of Uber in terms of convenience and demand
The companies which are able to provide convenience to their customers are able to maintain n
their demand with the market. Metlink is not able to provide convenience, so their demand is
low.
Positioning and differentiation
The drivers of Uber are allowed airport pickups, thus giving them an opportunity to increase the
revenue of the organization. Zoomy does not have this facility, thus giving Uber competitive
advantage in the market. Most of the consumers know about Uber, compared to Ezygo, thus
further giving Uber more opportunity to increase their market share (Your favorite restaurants
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0 1 2 3 4 5 6 7 8 9 10
0
1
2
3
4
5
6
7
8
9
10
DeliverEasyZoomy
Ezygo
Metlink
Green cab
Blue Babble taxi
Uber
Axis Title
Axis Title
More
conveni
ence
More demand
Less
conveni
ence
Less demand

now deliver | Easy online ordering, 2018). They are able to attract young customers towards
their services and have given a consistent performance to them unlike Blue Bubble taxi services
(Why to Choose Blue Bubble? 2018). Uber has developed more additional features like Uber
Eats, which allows the passengers to bring their own food. These services are not available in
DeliverEasy ([e-mail], 2018). Public transport or Metlink is not considered to be a
great option for transport during rush hours, compared to Uber (Zoomy - A Better Way to Ride –
Passengers, 2018). The attributes used in the positioning of Uber are demand, convenience, and
customer knowledge. Uber have positioned themselves in the market ahead of their competitors
using all these attributes (Hire a Rental Car in New Zealand – See New Zealand the Ezi way!
2018). Their products and services are better in terms of safety than their competitors. Uber
provides better quality safety features than all of their competitors like Green Cab, DeliverEasy
etc. The convenience provided by them is far better by any of their competitors in the market
(Service Rates – Ezygo, 2018).
Section2
The current target market of Uber New Zealand
Market segmentation is defined as a process by which the potential market of an organization is
divided into certain groups based on their characteristics. Uber New Zealand uses all four type
of market segmentation techniques to market their products to their customers (Cahill, 2012).
Based on geographic segmentation, the current target market of New Zealand consists of
customers residing in urban areas of New Zealand. The demographic profile of this current
market shows that this customer group consists of men and women whose age lies between 18 to
40 years. Most of them are in their bachelor stages of life, some of them are newly married.
Most of the customers of this group are students and young professionals. Based on the
psychographic segmentation, the current target market group of Uber consists of people who
belong to a middle-class group and a majority of them are strugglers. Based on the behavioral
segmentation, this group of people seeks the benefit of cost-efficiency from Uber, New Zealand.
The user status of this group can be described as the first time users of the service from the
company (Shimp & Andrews, 2013). The personality of these group of people can be described
as easygoing, ambitious and determined.
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Recommended market segment
Using the concept of market development approach, Uber can target a new group of potential
customers existing in the market. It is recommended that they market their products to the senior
citizens of New Zealand. These group of a potential customer can affect the profitability of the
organization in a significant way (Katsirikou & Skiadas, 2012). The customer profile of the
target market is as follows:
Age: 50 to 80
Gender: Both Men and women
Region: Both urban and rural areas of New Zealand
Occupation: Retired
Customer loyalty: softcore
User status: regular users
Benefits Sought: convenience
Social class: middle, working, and upper class.
Based on the demographic segmentation, the age of this group of lies from 50 to 80 years old,
and this group consists of both men and women. Most of them have arrived at the second and
third stage of empty nest life cycle (Diamantopoulos, Fritz, Hildebrandt & Bauer, 2012). These
group of people is situated in the urban and rural parts of New Zealand based on geographical
segmentation. A majority of them have retired from their occupation and a few of them can be
physically handicapped. However, they are not the group of hardcore loyal customers, like their
current target market. Based on the behavioral segmentation, these group of people wants
convenience from Uber. The psychographic segmentation of the market reveals, that these group
of people can belong from any class of the society. The lifestyle of these group of people can be
described as resigned.
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Section 3
Product development approach
a. The products and services of Uber can appeal to their new and existing customers in a
better way if they focus on developing a new product. These products should be able to
provide convenience to the customers in an effective way. The products of the company
should be innovative and creative in nature. The innovativeness of the product can be
increased with the help of advanced technology and proper planning(Urde & Koch,
2014). The product should be able to solve the problems that their customers are feeling
with convenient ease. Advanced technologies should be used to increase the usefulness of
the new products to increase their sales. They should establish more offices to provide
service to their customers with convenient ease. Uber is considered as the global leader in
innovative application-based cab booking systems. They should develop their customer
care services, to further develop their brand image in the market. They should promote
their products with the help of web-based advertisement along with the technique of word
of mouth form the customers.
Uber already has developed processes to increase the efficiency of the products.
Customers have to download and install the application and turn the tracking system on
their mobile phones. These customers can check the availability of the ride and book
according to the availability. However, these processes can be further simplified for the
convenience of the senior citizens of the country. The response time of the company
should be increased so that the brand image of the organization develops. The employees
of the organization should be trained on how to communicate with the customers of Uber.
They should also provide better special offers to attract more customers towards the
organization (Urde & Koch, 2014). Improving all these systems with the organization
will able the company to sell their products in a better way to both their existing and new
customers. The new customers will be excited to use the innovative products of the
organization for the first time. The existing customers of the organization will be
benefitted from the service as it will increase the level of convenience of the
organization. Thus both of these groups will be benefitted from the innovative products
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of the organization. Improving the response time will allow them to attract more
customers towards the organization.
b. Uber can differentiate itself from their existing customers in the market by developing
more innovative products and services for their customers. The can improve the response
time of their services to increase the efficiency of the service. They can provide better
training to their employees so that they can increase the efficiency of the services of
Uber. Improvement in the response time of Uber will allow them to differentiate
themselves from the competitors available in the market (Hague, Hague & Morgan,
2013). They can look for innovative ways to improve their products, and innovative
products can give the company a competitive advantage over others in the market. They
can promote their products innovatively, to increase their sales and reputation of the
company. The promotional offers of the organization should prompt their customers to
use their services in a better way. They face stiff competition from a number of
competitors, thus they have to develop more innovative products. The innovative
products should allow the company to increase the competitive advantage in the market.
Improving the products and services of the company will allow them to increase the
number of customers of the organization. Innovative products of the organization will act
as an incentive to remain with Uber and use their services, while the new customers of
the organization will be able to get the benefit from the innovative products of the
organization. They will able to use these products and enjoy the convenience offered by
the products by Uber, New Zealand. They should develop these products so that these
customers cannot switch to other companies for better services and products (Hague,
Hague & Morgan, 2013). They should simplify the processes related to the products of
the organization, making it much simplified so that customers of all age group can avail
these services. The customer service of the organization should be better so that the
reputation of the organization increases in the market and they can gain a competitive
advantage in the market. They must market their products in the market with the help of
strong advertising campaigns and they should not rely only on the word of mouth of their
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customers. They should address the complaints of their customers and provide quick
services to increase the customer satisfaction score of the organization.
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References
Cahill, D. (2012). Lifestyle Market Segmentation. Hoboken: Routledge, Taylor, and Francis.
[e-mail], A. (2018). Green Cab - Rent a Car for Outstation | Local.
Greencab.co.in. Retrieved 19 May 2018, from https://www.greencab.co.in/
Diamantopoulos, A., Fritz, W., Hildebrandt, L., & Bauer, A. (2012). Quantitative marketing and
marketing management. Wiesbaden: Springer Gabler.
Hague, P., Hague, N., & Morgan, C. (2013). Market research in practice. London: Kogan Page.
Hire a Rental Car in New Zealand – See New Zealand the Ezi way!. (2018). Ezicarrental.co.nz.
Retrieved 19 May 2018, from https://www.ezicarrental.co.nz/
Katsirikou, A., & Skiadas, C. (2012). New trends in qualitative and quantitative methods in
libraries. Singapore: World Scientific Pub. Co.
Service Rates - Ezygo. (2018). Ezygo. Retrieved 19 May 2018, from http://ezygo.co.nz/service-
rates/
Shimp, T., & Andrews, J. (2013). Advertising, promotion, and other aspects of integrated
marketing communications. Mason, Ohio: South-Western Cengage Learning.
Urde, M., & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal Of
Product & Brand Management, 23(7), 478-490. doi: 10.1108/jpbm-11-2013-0445
Why Choose Blue Bubble?. (2018). Bluebubbletaxi.co.nz. Retrieved 19 May 2018, from
https://www.bluebubbletaxi.co.nz/why-choose-us.html
Your favorite restaurants now deliver | Easy online ordering. (2018). Delivereasy.co.nz.
Retrieved 19 May 2018, from https://www.delivereasy.co.nz/
Zoomy - A Better Way to Ride - Passengers. (2018). Zoomy.co.nz. Retrieved 19 May 2018,
from http://www.zoomy.co.nz/passengers
Metlink - Greater Wellington's Public Transport Network. (2018). Metlink.org.nz. Retrieved 19
May 2018, from https://www.metlink.org.nz/
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