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10 STEP Marketing Plan for

Kenneth O. SychingpingNovember 2014

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer

1. Uber’s guests are the VIP’s2. Convenience, Security and Comfort3. Taxis and Car Services are the rivals4. Uber is the “rich” choice5. Big pie but a small slice

Uber-rated or Uber-convenient?

6. Fine cars at your fingers7. Money’s no option8. Physical and Virtual Word of Mouth9. Anywhere and Everywhere10.Uber differentiates

Uber-rated or Uber-convenient?

1. Who are the VIP's?

41-50 years old, social classes A and BBusinessmen and ExecutivesForeign guests not comfortable going

around a developing countryLate night, rush hour, Friday payday

2. VIP wants, VIP gets

Basic need is dependent on the purpose of transport (Social if to a party, physiological if to a restaurant, etc.)

But biggest need is SecurityWants fast, comfortable, convenient,

safe, friendly driversDemands on-time pickup, smooth ride,

nice vehicle, nice interior

Maslow's Hierarchy

7Reference: Maslow’s Hierarcy of Needs Marketing Management, 11 th ed, Philip Kotler

3. We are the best, but who are the rest?Direct: Easy Taxi, Grab Taxi, Hertz,

Click, Airport Taxi, Taxi FlaggingIndirect: Walking, Commute, Own CarVariables: privacy, safety, smoothness

of trip, friendliness of driver, price, convenience of pickup, speed, exterior look of vehicle, interior ambiance of vehicle

Ordering Ease vs Car TypeOrdering Ease/Car Type Private Car Taxis

Apps Uber Easy Taxi, Grab Taxi

Traditional Methods Hertz, Click, Integrate MGE, Ryo Aki

Value-added vs BrandVALUE-ADDED

Uber Grab Taxi

Easy Taxi

Hertz Click Integrate

MGM Ryo Aki

Order through App

X X X

Nice Exterior X X X X

Nice Interior X X X X

High Security X X X X

Relatively Cheap

X X X X

4. Uber is the “rich” choice

Stories of rude and criminal taxi drivers are now common, even with Grab Taxi and Easy Taxi

Even if money is not a concern, there was a lack of an ultra-safe AND ultra-convenient choice before Uber

Uber is where every passenger is a VIP

5. The transportation market in the Metro is significant

P44B

Transport Service Expense in NCR

*All Data based from the 2012 FIES Survey

P17B

Transport Service Expense in NCR of the 9th and 10th

DecileComputed from 39% as it is the percentage of

transportation service expenses of the 9th and 10th decile compared to the whole Philippines

Creatively estimating Market Share

Considered using download number to compare Easy Taxi, Grab Taxi

and Uber app downloads for market share

However, all 3 are global brands so cannot segregate Philippine

downloads from the rest of the world

X

So will use Facebook likes as estimate of market share: all 3 brands has its own Philippine-specific page. Popularity = Estimate of

Market Share

Uber’s market share is small

BRAND FB LikesUBER 29

Grabtaxi 190,000Easy Taxi 760,000

Ryo Aki taxi 180Hertz car service 480

Intuitively, traditional flagging of taxi (no apps) would have the largest market share- est. 90%

6. Uber's product is a mix

The App

The Car

The Interior

The Service

Competitions are less luxurious

Uber is the premium product of the industry

Card Payment

Order Anywhere

Nicer Cars

Personal Chauffeur

Comfortable Interior

7. Uber customers pay a premium

NORMAL TAXI

GRAB TAXI

EASY TAXI

AIRPORT TAXI

UBER CLICK

Flag Down P40.00 P110.00 P110.00 P70.00 P90.00

Per Minute P1.75 P1.75 P1.75 P2.00 P2.10

Per Kilometer

P11.67 P11.67 P11.67 P13.33 P12.92

Per Hour P340-P450

Ayala-NAIA (est.)

P170.00 P210.00 P210.00 P220.00 P240.00 P900 (FIXED)

8. Uber mostly rely on physical and virtual WoM

Uber is not very aggressive in promotions

Online comments defending Uber

Referral CreditsPhysical Word of Mouth

Video/Online Reviews

Easy Taxi is a more aggressive promoter

Mall Booths

BrochuresPartnerships Discount promos

EventsParties Raffles

Online Presence

9. VIP's can order anywhere

UBER has no physical Place/Location

Online means anywhere within MM

10. Uber differentiates from the competition

Higher Cost

but

Added premium not found in others