Business Name
Ingogo
Business Structure
Proprietorship
Sydney, Australia
Date Established
August, 2011
“Fair go for all”
“Transparency and fairness for everyone” and “fixed fairs with no hidden costs”
|
Goal/Objective |
Description |
By when |
|
Increase advertisements and promotions by 50% |
Increasing the advertising activity, involving television, radio and newspaper coverage. Using social media promotions on Facebook and Instagram. |
December 20, 2018 |
|
Increasing the number of fleet by 25% |
Increasing the number of available fleet of taxis by 25%. Including the introduction of expensive cars (5%), SUV and 10 Seater Vehicles (10%) |
December 22, 2018 |
|
Discount coupons |
Providing discount coupons (of AUD 50) for first time customers. Providing discount coupons (of AUD 10) for referrals to new customers. Providing discount coupons for long term customers. |
December 25, 2018 |
|
Achieve 25% return on capital |
Achieving 25% return on capital |
December 31, 2018 |
|
Monthly booking plans |
Providing booking of taxis for an entire month at lowered rates for students and office goers between fixed source and destination points. |
November 1, 2018 |
|
Single day tourist plans |
Daily plans for tourists covering entire city or parts of the city for upto 1 day to 7 days. |
November 1, 2018 |
|
Introducing Carpool (shared taxi) Services and Chauffer Services |
Ideal for office goers and students. Availing carpool is also environmentally friendly due to shared usage of resource, less pollution and less traffic. Provides cost advantage to business and reduced fares. Chauffer service for high value customers who would book for an entire day. |
December 1, 2018 |
(Yaprak, 2015)
|
Goal/Objective |
Description |
By when |
|
Increase customer base by 80% |
Increasing the number of customers and service users. Tapping into new customers segments (students, office goers and tourists). |
December 2019 |
|
Increasing market share by 50% |
Increasing the current share of market by 50% or more. |
January 2020 |
|
Becoming no. 1 service provider in Australia |
Becoming the best service provider for online taxi booking services. |
December 2020 |
|
Achieve 100% return on capital investment |
Recover the invested capital fully |
January 2021 |
|
Becoming the preferred brand for students, office goers and tourists |
Providing discounted services for students, office goers and travelers and becoming their preferred brand |
January 2021 |
(McDonald, 2016; Newman, 2016)
|
Product/Service |
Description |
Price |
|
One time booking charge |
This is for the regular booking of the taxis. A onetime booking charge is applied for each booking. |
AUD 0.99/day |
|
Carpool and shuttle (shared taxi) |
This is for customers who would book for an entire month at fixed times to travel between fixed source and destination points. |
AUD 30/month |
|
One year subscription |
This is for customers who would like to book for services for an entire year, cover both one time and monthly booking of taxis. This is a premium service, and customers do not have to pay any additional charge for one year for either single transit or multiple transits to fixed or variable destinations. |
AUD 399/ year |
|
Chauffer/Premium |
Booking for an entire day for guests and tourists to see around the city. |
AUD 29.99/day |
|
Fare Slab |
Description |
Price AUD (shared, regular, premium) |
||
|
1 |
0 to 4 km |
0.3/km |
1/km |
15/hr |
|
2 |
4 to 8 km |
0.5/km |
1.5/km |
15/hr |
|
3 |
8 to 12 km |
0.5/km |
AUD 2/km |
20/hr |
|
4 |
12 km and above |
1/km |
AUD 3/km |
20/hr |
Sales Analysis:
Overall Market Sales: AUD 447 million
Igogo Sales: AUD 179.25 million
Sales of competitors: AUD 267.75 million
(Fishman et al., 2015; Tzur, 2017; Reck & Axhausen, 2018)
|
Strengths |
Weaknesses |
|
· Attractive fare rates · Good customer reviews · High demand for carpool (shared) and chauffer services · Fast marget growth rate |
· Still new concepts · Customers still used to traditional style of hiring taxi · Booking requires internet connection |
|
Opportunities |
Threats |
|
· Number of internet users increasing · Promotions, discounts and special fares can attract more customers · Booking via phone app · |
· Strong competition · Fluctuation in consumer market · Traditional taxi operations |
|
Weakness/Threat |
Activity to address weakness/threat |
Completion date |
|
Online booking still new concept |
Increasing promotional activities and advertisements. Conduct marketing campaigns. Provide discount coupons and referral coupons for customers. |
December 25, 2018 |
|
Customers still rely on traditional taxi |
Increasing promotions and advertisements and increasing customer base. |
December 25, 2019 |
|
Competition |
Increasing market share, retaining customers, attracting new customers, new services and booking schemes. |
December 31, 2019. |
|
Booking requires internet connection |
Implement phone booking facility for customers. |
January 2019 |
(Houtman & Gründemann, 2014)
Profitability Analysis:
Direct expenses: Costs of fuel, wages, maintenance.
Indirect Expenses: Administration, web development, promotions and advertisements, Information Systems.
(Fish et al., 2017)
Area: New South Wales, Queensland, Victoria and Sydney.
Market Size: 1.8 million users. Revenue USD 447 million
Market Growth: Increase in 0.2 million users by 2022 (4 years). Revenue increase to USD 519 million by 2022.
User Penetration Rate: 7.3%
Demographics:
By Age: 39.06% between 18-24 years, 46.88% between 25-34 years, 10.94% between 35-44 years, 3.13% between 45-54 years.
By Income: 36.59% from low income, 17.07% from medium income and 46.34% from high income customers.
By Gender: 79.7% of customers and male and 20.03% are female
Market Trend: Increase in the rise of shared taxi users.
(Fishman et al., 2015; Tzur, 2017; Reck & Axhausen, 2018)
College Students: Students in colleges needs to attend their classes regularly, and often are also employed in mart time or temporary jobs. With such hective life, travel can be a stress. Igogo shared taxi can take off that burden, arranging a regular and dependable transport to and from their college, home or place of employment.
Young Professionals: Professionals between 25 to 34 years are the highest users of shared taxis in Australia. These individuals are both environmentally and economically conscious. They prefer to share taxis as it is cost effective.
Low Wage customers: These individuals are employed in low wage jobs and cost effectiveness is a vital consideration for them. Providing shared services which is within their affordable range is important to attract this market segment.
High income customers: These individuals prefer to ride in luxury and comfort. Cost is not the biggest concern, instead the preference is towards quality of service. They are ready to pay the extrs amount to get a good quality of service that is timely and reliable as well as efficient.
Travelers/Tourists: They visit the city of a day or more, want to visit the tourist destinations, spend some time there before moving to the next one. Finding a new transport at every break in the journey can be stressful for them and prevents them from fully enjoying their travel. They prefer to hire one transport for the entire trip across the city.
One Time Spenders: These are individuals who like to spend a lot of money from their savings in single occasions or special days (celebrations, birthdays, weddings and social events). For that one big day, they deserve a special and quality treatment, even when they are travelling.
High Profile: These individuals are very particular about how they travel to match with their high standard lifestyle. They expect nothing except the best in terms of brands and quality.
SMART Marketing Objectives
|
Objective |
Specific |
Measurable |
Achievable |
Realistic |
Timely |
|
Increasing promotional activities and advertisements |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Increasing fleet by 25% |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Achieve 25% return on capital |
Yes |
Yes |
No |
No |
Yes |
|
Increasing market share by 50% |
Yes |
Yes |
No |
Yes |
Yes |
|
Increasing customer base by 80% |
Yes |
Yes |
Yes |
No |
Yes |
|
Introducing Carpool (shared taxi services) |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Introducing monthly booking services |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Introducing chauffer services |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Becoming no 1 brand in online taxi booking |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Becoming the favored brand for students, office goers and travellers. |
No |
No |
Yes |
Yes |
No |
8P of Marketing
Product (Service): Shared Taxi service (carpool. Fixed shuttle service from pickup and drop locations on shared taxi. Premium services providing transportation in expensive luxury cars with professional chauffers. Service categories: shared, regular and premium. One month to 1 year subscription options for repeated bookings at discounted prices. Discounts from AUD 10 to AUD 50.
Pricing: Pricing is based across three main categories. The pricing is made according to the total distance travelled according to the pricing slab.
Position: Igogo currently holds 40.1% of the total market share, and is quickly becoming a popular service for online taxi booking. It is placed 3th in the market after Uber and 13 Cabs.
Promotion: Advertisements on television, radio and newspapers. Promotions on Social Media platforms life Facebook and Twitter. Promotional campaigns and distribution of free discount coupons. First time discount to every new customer (1 free ride for upto AUD 100). Referral discount to customer for AUD 5 to 10.
People: Drivers, Marketing Team, Accounts Team, Management Team, Information Systems team, IT Security Team, Call Center team, customer support.
Process: The customers can use book taxi online, using phone app or by calling the customer support. First time users will get the option to register and can avail one free ride after registration. If they refer someone else, the customer will get AUD 5 for each new registration after referral, which will be saved in customer’s account for future travels. Customer can also book for a month for shared shuttle services or just go with each ride payment options.
Physical Environment: Metropolitan and urban areas, especially in and around colleges, business areas. Tourism and sightseeing areas. Places with expensive restaurants and clubs.
Productivity and Quality: Need to add luxury cars and hire professional chauffers. Quality of service is very good with a customer rating on 4.5 out of 5.
|
Product or Service |
Features |
Benefits |
Unique Selling Position |
Support |
Spin Offs |
|
Carpool (share taxi services) |
service would provide pick up and drop to and from home and college/office on shared taxis |
Inexpensive travelling |
Low fare price |
24/7 customer support and GPS tracking |
No |
|
Shuttle Services |
This service would provide pick up and drop from fixed points in busy areas in shared taxis |
Easy and inexpensive transportation readily available to go to the bury areas of the city. |
Low fair price. Quick availability. |
24/7 customer support and GPS tracking |
No |
|
Chauffer Services |
This will provide a day long service at fixed prices along with a professional chauffer and luxury cars |
High quality and professional service. Suited for high profile customers. |
Quality |
24/7 customer support and GPS tracking |
Travelling assistance for elderly. |
|
Sight Seeing Services |
This service will help tourists around the cities to the best tourist spots |
Covers all famous sites and any other sites the traveler wants to visit. No waiting charges. |
Standardized price. No waiting charges. |
24/7 customer support and GPS tracking |
No |
|
Customer Support Services |
Customers can call 24/7 anyday for continuous and dependable support. Call centers would support the customer service division. |
Round the clock assistance. |
Round the clock assistance. |
Round the clock assistance. |
No |
|
This will allow the customers to tract the location of the taxi before they arrive. |
Round the clock assistance. |
Round the clock assistance. |
Round the clock assistance. |
No |
|
|
Security Hotline |
For emergencies, the hotline (available on the phone app as well as inside the cab) will allow the customer or driver to place emergency call to any of the emergency numbers in Australia. |
Round the clock assistance. |
Round the clock assistance. |
Round the clock assistance. |
No |
|
Product or Service |
Price |
Costs |
Net Profit |
Comp. Price |
Value |
|
Carpool (share taxi services) |
0.3 to 1 per km. |
0.2 to 0.5 |
0.1 to 0.5 |
1.5 |
Inexpensive fare |
|
Shuttle Services |
0.3 to 1 per Km |
0.1 to 0.3 |
0.2 to 0.7 |
1.5 |
Inexpensive fare. Quick service. |
|
Regular Services |
1 to 3 per Km |
0.5 to 2 |
0.5 to 1 |
4 |
All inclusive pricing |
|
Chauffer Services |
15 to 20 per hour |
10 to 15 |
5 |
30 |
Premium services |
|
Sight Seeing Services |
199 + 10/km |
5 |
5 |
500 |
All tourist spots |
|
Customer Support Services |
Free |
1000 /day |
-1000 /day |
NA |
Round the clock support |
|
Security Hotline |
Free |
NA |
NA |
NA |
NA |
|
GPS Live Update |
Free |
NA |
NA |
NA |
NA |
|
Channel type |
Products/services |
Percentage of sales (%) |
Channel strategy |
|
Online and Apps |
One time booking, subscriptions, monthly booking, chauffer services, tourist services. |
75% |
Promotions via social media, radio, television and newspaper. App listing on Google and Google Stores. Links to the website provided in online promotions. |
|
Telephonic |
One time booking only |
25% |
Promotions via social media, radio, television and newspaper. |
|
Product or Service |
Online |
Public Relations |
Advertising |
Promotion |
Branding |
|
Carpool and Shuttle |
Focusing on the low fares |
Reach out to college students and office goers |
Television, Newspaper and Radio advertisements |
Discount coupons, first time free ride, referral services. |
Company name and google app. |
|
Chauffer |
Quality services. |
Reach out to high profile customers. |
Television, Newspaper and Radio advertisements, social event sponsoring. |
High profile clients. |
Website |
|
Tourist |
Focussing on quality and care. |
Reach out to tourists in tourist areas. |
Television, Newspaper and Radio advertisements and magazines |
Involving famous personalities |
Website |
|
Regular |
Focusing on the low fares |
Reach out to office goers |
Television, Newspaper and Radio advertisements and magazines |
Discount coupons, first time free ride, referral services. |
Website |
|
Job Title |
Department |
Responsibilities |
|
Marketing Manager |
Marketing, Advertisement, Promotions, Campaigns |
Will overlook all marketing strategies, activities and events and report to General Manager |
|
Operations Manager |
Operations, Sales |
Will overlook all operational details (transit of taxis, fare collection, manage drivers, drive routes and fixing fares) and report to General Manager |
|
Accounts Manager |
Accounts |
Maintain business accounts and report to General Manager |
|
Logistics Manager |
Logistics |
Maintain inventory, tracking vehicles and drivers. Reporting to general manager |
|
Finance manager |
Finance |
Performing financial analysis and forecasts. Reporting to GM |
|
IT Manager |
Information Systems and Technology |
Manage all online systems. Reporting to GM |
|
Security Manager |
Security |
In charge of all security practices. Reporting to GM |
|
Safety Consultants |
Consulting on company processes |
Reporting to CEO |
|
General Manager |
Management |
Coordinating all management duties. Reporting to CEO. |
|
Marketing activity/milestone |
Date of expected completion |
Cost (AUD) |
Success indicator |
|
Print Advertising |
November 5, 2018 |
267,000 |
Increase in print coverage in magazines and newspapers |
|
Online advertising |
November 5, 2018 |
100,000 |
Increase in online presence and online hits or page visits. Increase in online sales. |
|
Mail Out (with discount codes) |
November 10, 2018 |
50,000 |
Increase in mail response and discount code use. |
|
Giveaways (gift vouchers) |
December 05, 2018 |
500,000 |
Increase in gift voucher use. |
|
Media Release |
December 10, 2015 |
250,000 |
Increased media publicity. |
|
Event |
December 24, 2018 |
1,000,000 |
Increased media publicity. |
|
Website |
October 30, 2018 |
100,000 |
Increase in online presence and online hits or page visits. Increase in online sales. |
|
Social Media |
October 30, 2018 |
10,000 |
Increase in followers on social media. |
|
Public Relations |
December 5, 2018 |
500,000 |
Increased media publicity. |
|
Branding |
December 10, 2018 |
750,000 |
Increase in customer loyalty |
|
Blog |
December 5, 2018 |
100,000 |
Increased media publicity. |
|
Artwork |
December 5, 2018 |
465,000 |
Increase in customer loyalty |
|
Publications |
December 10, 2018 |
200,000 |
Increase in print publicity |
|
Marketing activity |
Date of review |
Monitoring methods |
Review outcomes |
|
Print Advertising |
January 2019 |
Revenue growth |
|
|
Online advertising |
January 2019 |
Online booking |
|
|
Mail Out (with discount codes) |
January 2019 |
Total usage of email voucher codes |
|
|
Giveaways (gift vouchers) |
January 2019 |
Total usage of gift voucher codes |
|
|
Media Release |
January 2019 |
Increase in sales |
|
|
Event |
January 2019 |
Increase in sales |
|
|
Website |
January 2019 |
Online booking |
|
|
Social Media |
January 2019 |
Increase in sales |
|
|
Public Relations |
January 2019 |
Increase in sales |
|
|
Branding |
January 2019 |
Increase in sales |
|
|
Blog |
January 2019 |
Online booking |
|
|
Artwork |
January 2019 |
Increase in sales |
|
|
Publications |
January 2019 |
Increase in sales |
Conclusion:
Using the combination of the various marketing strategies it can be possible for Igogo to achieve its short term and long term goals and uphold the virtues of the company. Tapping into the potential market of shared taxi will not only provide a future growth opportunity but also help to reduce traffic on the road, control emission of greenhouse gases and make transportation more pocket friendly for more customers. This can be ideal solution for college students and office goers.
References:
Ahmadi, M., Dileepan, P., & Wheatley, K. K. (2016). A SWOT analysis of big data. Journal of Education for Business, 91(5), 289-294.
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Bryson, J. M., Edwards, L. H., & Van Slyke, D. M. (2018). Getting strategic about strategic planning research.
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