Anda di halaman 1dari 32

MARKETING PROJECT BUS2010f TUT Group 10 Smart phone taxi app: Click-a-Cab Sinovuyo Rodolo Linda Oniwe Temi

Oketunji Palesa Mtimkulu

Table of contents
Situational Analyis
Market need The product Marketing environment Microenvironment Macroenvironment SWOT analysis Research implementation Marketing Strategy Segmentation Targeting Positioning Differentiating Marketing Mix 7 ps Branding strategy Growth Strategy Summary 25 28 30 20 13 14 5

SITUATIONAL ANALYSIS
The Market need
Many people find themselves waiting for a cab for more than an hour or the cab does not arrive at all. This indicates that there is a huge gap in the transportation market with regards to communication with passengers, this taxi smartphone application found that gap and will fill it ensuring better value for both the passengers and cab companies. Here are some relevant market statistics: Minibus taxis are responsible for 65% of the 2.5 Billion annual passenger trips in urban areas.

Only about 26% of households in South Africa have access to a motor car. According to the National Household Travel Survey (2003) at 108 cars per 1000 of the population, car ownership in South Africa remains in its infancy (South Africa, 2012).

Mobile devices sales rose in 2011, with smartphones showing strongest growth, Nokia remains the number one handset manufacturer, but android is now the top smartphone operating system (Tarrant, 2011).

As of 30 June 2011, there were 3.7 million active smartphones on Vodacoms South African network (Tarrant, 2011).

The Product
Click a Cab is a mobile smartphone application that matches passe ngers and registered taxi drivers. This application will tell customers how close the nearest drivers are to their location, passengers can then request a pickup. This application will be available on all smartphones including Nokia smartphones in South Africa. Click a Cab pinpoints the passengers current location and the way this app works

is that it simply asks our database to provide a list of the registered taxi companies for your current location. The taxi is then ordered by distance, size of cab required and user ratings. When the driver is nearing arrival, the app will notify you that the driver is close to your location. This app also allows the passenger to check where the driver is and how close the driver is to the location. Once the service has been completed customers will be asked to rate the driver and using that preference measure, the app will know which driver to send for the next time the passenger uses the application.

Click a Cab will create its revenue by charging a percentage commission on each taxi fare that is processed via its booking application. This app is free for all smartphone users; therefore making it cheaper to book cabs since airtime is not required just internet access on your smartphone. It is quick, easy to use and cheap. NO CALL, NO CHARGE, SIMPLE JUST CLICK A CAB. This application has many benefits for both passengers and the taxi companies. Taxi companies will receive greater revenue due to this app as it will increase their clientele base. Passengers also benefit greatly from the use of this application; they will never have to wait for a taxi again. This app finds the fastest taxi and offers passengers the best rated cabs available. It is also safer using this application than booking a cab by yourself as this app has each companies/drivers profile (where not part of a cab company), including details about their license, name and number.

Marketing Environment
In order for Click-a-Cab to be successful it needs to analyse all of the major environmental factors that shape its opportunities, threats, weaknesses and strengths. The following is an analysis of the both the micro and macro environmental forces that will have a potential effect on the marketing strategy of Click-a-Cab. Micro-environment The following are all the forces close to click-a-cab that affect its ability to serve its customers (Tait, 2010) and build profitable relationships with targeted customers. The firm Click-a-Cabs aim is to provide a network in which both cab companies and passengers benefit. Click-a-Cab has decided on the following mission statement, aims and objectives and core values that it wants to uphold and achieve with regards to targeted customers. Mission statement It is our mission to improve the efficiency of the Cab industry by providing a channel through which customers and Cab companies can be connected in order to provide and receive efficient, reliable and high quality Cab services and thus ensure the delivery of high Customer value. Aims and objectives Click-a-Cab aims to: Grow a profitable and successful business in South Africa Provide a well known user friendly app that meets customer and Cab drivers needs Ensure our app has the competitive advantage by attaining a sizeable market share of Cab drivers Become one of the top 100 most used apps in South Africa

Core Values The core values of Click-a-cab are: Enlistment of Quality cabs Reliable Service Excellent communication Customer Satisfaction and Innovative technology and Strategies

Core Capabilities These are: Efficient and user friendly technology Software that provides the closest cab that fits the customers preference in the given location Software that has an integrated GPS that can reflect the customers location and intended destination Marketing Intermediaries The intermediaries who will help Click a Cab to promote and distribute its services include software virtual stores for smart phones such as the App store for apple iPhones, App world for BlackBerrys, and Ovi store for Nokia smart phones. Also travel websites which offer the app for download to interested patrons will also serve as a marketing intermediary. Customers Click a Cab deals with the following types of customers: Consumer markets: These are the people who will use Click a Cab to find transportation for themselves. They will also use it to find information on the types of cabs in the system and how they differ from each other since there

will be information loaded on the app about the different cab companies registered with the app.

Business markets: These are the cab companies that will use the app in order to attract customers. The application is in a sense an input in the delivery of their service. They make themselves available to the customers all the time without the usual hassle to the customer of calling even when they dont have airtime or are in crowded and noisy places.

Competitors Firms which are very similar to Click a Cab in that they provide the same core benefit and share the same market as Click a Cab are Taxirank and sacab. With Taxi rank having enlisted companies like Rikkis, Unicab and SPORT (Taxirank, 2012) which are generally more expensive and SACAB also offering relatively expensive rates at R11/km during the day and R11.50/km after hours (sacab, 2011), Click a Cab has a competitive advantage. Click-a-cab aims to enlist more affordable cabs such as CabCo and Elite Taxis, on the database, along with the expensive cab companies that cater to high end clientele. This will enable the firm to have access to a larger share of the market. Both sacab and Taxi rank are aimed at higher income earners while click-a-cab is aimed at lower, middle and upper income earners.

Figure 1 Publics This refers to any group that has an actual or potential interest in or impact on an organisations ability to achieve its objectives (Tait, 2010). The following are the groups which are relevant to Click-a-Cab:
7

Media Publics: These refer to newspapers, magazines (Tait, 2010) and social networks like Facebook, twitter, blogs, and so on. They will spread news, features and editorial opinions on the app. This will influence the general publics perception of the app, hopefully creating positive hype about the app and thus encouraging more people to use it.

General Publics: Answers concerning peoples attitude towards our service provided are very important in assessing our current position (Tait, 2010). This is because this will determine their decision to use or not use our app. Click a Cab will have optional surveys on different aspects of the service provided in order to get a general overview of the prevailing attitude and take steps to alter it where necessary.

Internal Publics: Happier employees will work harder to create more exciting and innovative features to add to the app. The necessary actions will be taken to keep workers motivated and encourage them to feel good about the brand in order to facilitate continuous production of state of the art technological services and periodical improvements.

Macro-environment The following are the larger societal forces that affect Click a Cabs micro environment (Tait, 2010) and as such its ability to deliver superior customer value successfully. Demographics The middle and upper class of South Africa have both grown remarkably since 1994 (look for facts and ref). With this increase, an increase in car ownership is expected resulting in increased congestion. Increased difficulty of finding parking spaces in business districts is therefore expected. Hence, it follows that in the long run the demand for meter taxis is expected to increase in urban areas especially amongst the members of the corporate world that would need to commute mainly within the areas that are to be most affected by the increased congestion; urban business districts.
8

Figure 2 above depicts the growth in middle income bracket by comparing 1994, 2000 and 2010 distribution of the population distribution according to the living standards measure (LSM) which was developed by the South African Advertising Research Foundation. This growth is evidenced by the drastic increase in LSM 6 and 7 over the stipulated period. Another factor to consider is the increase in tourism in South Africa (fact and ref). Tourists use cabs to travel to and from their destinations and because of that the demand for cabs can be expected to rise along with tourism. Click-a-Cab is the perfect link between taxi cabs and the increasing tourists and users of cabs. Forecasting in 2016 of demand increase due to population changes Cape Town Potential taxi user demand base Potential tourism demand base Ratio of taxi per 1000 user population Number of taxis 521 1 224 512 1.3 1.3 1.3 50 000 109 000 10 000 351 041.9 Johannesburg 832 376.6 Durban 383 618.4

In the above table it is assumed that the population will have grown by 10% in the target market of taxi users between 2006 and 2016. The upper class is assumed to have grown by 10% also. The table shows that merely increasing the target market of taxi users is not enough. The culture of using cabs in South Africa needs to be changed in order to make an impact in the industry. Click-a-Cab is there to make sure that people are aware of all the advantages of using cabs and therefore make the choice to take cabs habitually. There are also other demographic factors that Click-a-Cab needs to consider. These include targeting people who dont know how to drive but dont like using public transport such as buses and taxis. Also, potential customers who do not want to drive a car because of high costs that buying fuel imposes and mostly university students who like going out but do not have cars or are underage. The people in any of the aforementioned categories who perceive public transport as unsafe, unreliable and inconvenient are the ones that are relevant to the profitability of Click a Cab. Economic Forces South Africans are more cautious about spending money since the recession hit in 2008-2009. This means that people are more willing to use alternative transport than they are to buy their own cars. This is a result of the general uncertainty surrounding personal finances. Fuel costs have risen over the last few years, further discouraging people from buying their own cars. Another economic force which has a positive effect on the Success of Click a Cab is the fact that South Africa has a growing middle class who are capable of affording smart phones. Technological Forces The nature of this service is highly dependent on technological advancements in order to be successful and to bring superior value to our customers. Currently The more innovative the developments are, the more dramatic the effect will be on the environment of the firm. Technological developments are likely to alter the demand for the use of both the Click-a-Cab and the use of cabs. The more innovative the improvements are, the

10

more people will use the app and in turn increasing market share in the taxi app industry. To be more effective in its purpose, GPS technology will be integrated into the app. The taxi app will remain up to date in this regard and will have to continuously upgrade its technology in order to keep to date with the latest technology.

SWOT Analysis

Strengths

Weaknesses

Click a Cab will be safe, efficient, free and easy to download. Click a Cab app will be available on all Smartphones. The Click a Cab app will offer highquality maps and directions for cab drivers.

Click a Cab is a new company entering the Smartphone applications market and will therefore initially face lack of brand awareness and low market share.

Click a cab will provide cab companies with an extensive database of customers and in turn provide customers with a broad range of cabs and prices to choose from which will then add to their customer value.

11

Opportunities

Threats

Lower technology costs due to the new digital age and advancements in technology.

Competition- Click a cab faces competition from more than a million apps in the Smartphone market along with competition from Taxi apps such as Taxi Rank and independent cabs in Cape Town that park outside venues and are easily accessible for potential consumers

Large range of potential customers as large portion of South Africans (3.9 million) already use public transportation, high fuel costs have discouraged many in recent years from purchasing cars of their own and stricter drinking and driving rules are to be implemented in Cape Town

Increased Competition- new direct competitors are likely to enter the growing market

High popularity of social media sites provides an opportunity for Click a Cab to gain awareness of the brand and gain a firm presence on the internet and in the global software marketplace

Cab drivers might not meet Click a Cab standards Click a Cab app could be downloaded but then never used as happens with many other apps

The growth of Smartphone usage in South Africa(more than 6.5 million Smartphones)

Exponential Growth in Mobile marketing will encourage companies to use Click a Cab to advertise their various products and services

12

Research Implementation
A brief survey in the form of a questionnaire was taken in the market to ascertain customers attitudes towards the following: Satisfaction with Cab services at present Current use of existing taxi databases Possible introduction of Click a Cab into the market The extent of Cab use at the moment

The questionnaire is included in the Appendix at the end of this marketing plan. RESEARCH FINDINGS When deciding if our taxi application would be a service that is in demand in the market we performed a questionnaire which different customers had to fill out. We asked 30 people the survey, ranging from students, cab drivers and working adults. The questions were simply and they just required yes/no answers to make it easier for those completing it. Based on our survey and other research finding we gathered that most people did not know about any smartphone taxi applications available currently in the market, we also realised that majority of people and especially students here at the University of Cape Town used cabs on a regular basis. People said they would appreciate the development of this application as it would make life easier for both the customers and cab companies. Based on the research done, we have concluded that there is a demand for the application but lots of marketing and advertisement will have to be done to ensure the application is used to create better value for both passengers and the cab companies.

13

MARKETING STRATEGY
There are approximately 3.9 million people who use public transport in South Africa. This opens a rather large market for the cab industry. This is because when people go out, are in a hurry or would rather travel more comfortably, they use cabs instead of normal taxis or buses. Hence, in deciding the manner in which to build long term customer relationships within the market and therefore, capture a sizeable market share, it is necessary to acknowledge that not every consumer in the market place is the same. Customers vary in aspects like specific needs, buying practices, and the kind of marketing strategy that appeals to them (ref). Hence it is necessary to carry out the following tasks based on research and analysis of the overall market. SEGMENTATION This involves dividing a market into smaller groups with distinct needs, characteristics or behaviours, who might require separate products or marketing mixes (ref). There are several ways in which Click a Cab could segment the market for its core benefit. Geographic segmentation is one such method; it divides the market into different geographical units for example, countries, provinces, cities, municipal areas, and so on. With respect to Click a Cab which is aimed at the city of Cape Town, customers in different parts of the city have varying needs in terms of the distance and frequency of their travels. Hence, the market can be divided into: a. Customers within a 10-15 minute radius of the Central Business District (CBD): This group of customers are seeking transport urgently to relatively close distances. This would require Click a Cab to have access to a large database of cabs that are readily available in that locale. b. Customers in the Northern Suburbs: This group which is in the residential areas, do not frequently make use of cabs as they are wealthy and have their own cars. However, the airport is situated in that geographical area. Hence, the influx of tourists represents a distinct group of consumer who are willing to pay significantly higher cab fares for safe, reliable and often comfortable transport service. Click a Cab needs to have access to more

14

upmarket cabs that pride themselves on safety and superior customer service. c. Customers in the Southern Suburbs: This area is predominantly occupied by university students who require the services of Cabs at all hours of the day and at the cheapest prices possible. Click a cab must have access to 24 hour cab services that charge affordable rates to efficiently serve this group of customers. Demographic segmentation which divides the market into groups based on variables such as age, gender, lifecycle, income, generation, etc is another way in which the market for Click a Cabs product/services can be divided. This method of segmentation is relevant to Click a Cab in two respects. Firstly, the income bracket which one falls under will affect the kind of cab which they use. So the Click a Cab database must have cabs that cater to people across the three main income classes i. Lower income class have less disposable income for transportation and would prefer cabs with low fixed prices or who charge R9/km or less. ii. Middle income class have significantly more income to allocate to transport and would pay between R10/km and R12/km iii. Upper income class has even greater income to allocate towards travel and transportation and would pay more than the above two groups if guaranteed superior service delivery. Also under demographics the market for Click a Cab can be segmented according to Age and Life cycle stage. Relevant to the market for Click a Cab are the following life cycles: iv. Students; these are young people who are at a stage in their lives that is all about being active and having experiences. This group has a very limited budget as well, because of their lack of a steady stream of income. They require access to cabs that are always available and can be called impromptu and still charge low rates. v. Start-up workers; these are young adults who have just joined the work force, they need to get to their place of employment daily, yet
15

they do not have cars since, they havent accumulated enough income to make a capital purchase yet. They want a very reliable, semi-fixed arrangement, Click a Cab must cater to the preference of fixing an arrangement over a foreseeable future period. vi. Established workers/business owners; these are middle aged to more mature individuals who often travel on business, and need transport to meet with their associates. They are affluent and demand the luxuries and comforts that their hard work has enabled them to afford. They would pay a premium for excellent service. Click a Cab should have cabs that specialise in this market on their database. Also they might wish to have full use of the cab over the entire duration of their stay, this should also be an option offered by Click a Cab. d. Behavioural segmentation also applies to Click a Cab, in terms of the benefits that were sought by the customer. Some seek quality, others economy, speed or convenience. Click a Cab should have a way to filter the cab options that appear for each consumer based on their prescribed preferences. There should also be an option to switch of preferences in the case where a customer wants a Cab that is outside of their usual scope of preference. In light of the different segmentation methods available, the following segments apply to the market for Click a Cab taxi application on smart phones: I WANT A CHEAP CAB QUICKLY This segment comprises mainly of people with low income levels, as well as individuals who are always on the go but do not have their own cars and individuals closer to the CBD, who simply want to move from one spot in town to the next hot spot. They are young, fun seeking individuals who make impulsive decisions about travel at any hour of the day and have a limited budget. Also, on occasion they travel long distances, to areas that have significant experiences to offer. Click a Cab needs to approach them differently. The main points of contact would be social networks, word of mouth testimonials, posters at hot spots that this crowd typically patronise. There will also be a preference category on the actual application that allows them to
16

get the cheapest cabs as quick as possible. This segment also includes people who are new in the work force and do not yet have cars. They need a steady arrangement that they can use daily to get to work. I REQUESTED IN ADVANCE FOR AN EXCELLENT CAB This segment comprises of the more responsible high middle to upper income class individual. They are employed and travel for business/ work and not pleasure. Trips are usually planned in advance with set itinerary. Most of their destinations are close to the CBD; hotels and offices. It is part of their lifestyle to always go for the best and this will be evident in the type of cabs they prefer. Need to be targeted through recommendations from their social reference groups, also target employers who are responsible for planning the travel arrangements of their employees on business trips, Advertisement in strategic publications like journals, newsletters, and magazines that are read by people of this calibre. Preferences on the application allow them to get the highest quality cabs and choose if they wish to hire the cab and for how long they wish to do so. I NEED A CAB I CAN TRUST Tourists fall under this segment. Their trips are planned with an itinerary in mind. They need reliable and quality service and would pay a premium to travel in comfort. They have no knowledge of the area and need a cab service that does. They should be targeted through travel websites and agencies, also through information brochures found in hotels, airports, and local hot spots. Again preference settings on the actual application influence the options that appear before the consumer, stating that you are a tourist gives access to most trusted cabs that have an element of tourism to them. It also gives the opportunity to determine how long you wish to have the cabs services. TARGETING This involves the evaluation of the available segments in order to decide which segments to target based on how well the firm would be able to serve these segments. In order to do this, a firm must evaluate the size and growth of the segments, segment structural attractiveness and the objectives and resources at its disposal.
17

Click a Cabs targeting strategy is differentiated, the product will target several segments and tailor different marketing mixes suited to each segment. Furthermore, the cab services within the database will be varied strategically to fulfil the needs of each segment. All of the aforementioned segments will be targeted by Click a Cab because upon evaluation, they are of manageable size and will grow steadily in the foreseeable future as Cape Town continues to develop into a tourism business and education destination. Furthermore, in terms of structural attractiveness, the competition in these segments is minimal, where it exists and the same could be said for substitute applications. Finally, Click a Cab is more than able to access the required cabs and add them to their database and the targeting of these firms is in keeping with the firms objectives to cater for as many diverse transport needs as possible. POSITIONING AND DIFFERENTIATION It is important for Click a Cab to determine how it will create differentiated value for its customers and what it wants to be defined as by customers on important attributes. The main attributes which Click a Cab will be defined by, are: 1. Service that is tailored to suit you. Using preferences stated by the customer, cabs that best fulfil the inferred needs of the customer will be prioritised in listings. 2. Service that is efficient because the use of the latest in GPS technology enables us to locate the customer and the closest cab and then connect the two in a matter of seconds. Ultimately Click a Cab is centred on the philosophy that the customer knows best. When people think of Click a Cab they should think, the choice is yours. Choose where you want to go, how you want to go and for what price you want to go, all in a few simple clicks. Points of Parity between our product and online taxi databases in South Africa are: 1. Creating a connection between customers and Taxi service providers using cell phones 2. Make use of GPS Satellite to ascertain customers location
18

Points of Difference between our product and online taxi databases for in South Africa are: 1. Database that is much more comprehensive i.e. not limited to a few expensive taxi services 2. The other service providers serving the customers in our market are not actually in the form of an application tailor made for smart phones, they are mobile websites which can be accessed on the browser of a smart phone. 3. Use of preferences and advanced search tools to deliver the best possible service to the individual customers. 4. Use of GPS navigators to locate drivers and ascertain their distance from the customers.

19

MARKETING MIX
Click a Cabs marketing mix will comprise of marketing tools such as product, price place and promotion that will be used by the firm to induce a favourable response from the target market and will influence the demand for the Click a Cab application (textbook reference).

Product
The Click a Cab app is an intangible product that consumers and registered cab drivers can install or download on their Smartphones from various app stores associated with their Smartphones. This application will be used to connect the two parties, cab passengers and cab drivers, together in order to do arrange time, pick up point and destination for a cab trip anywhere within Cape Town. Once downloaded, the Click a Cab app will be accessible 24/7 throughout the year to any potential passengers and corresponding cab drivers in Cape Town. The Core product Click a Cab offers to the market is convenient and clear correspondence between cabs and passengers. The Actual product is the quick and easy-to-use application downloaded from the app store that will appear as an icon with the distinct red and black Click a Cab logo on the users phone and that will allow the user to find a cab that meets the consumers needs. The Augmented product for the Click a Cab app will consist of the customer care support hotline that will be offered to potential and actual customers to assist with any problems that arise or to help with the installation process. How Click a Cab will work: Customers needing a cab will merely have to click on the Click a Cab app icon on their phone which will then detect their current location and allow the customer to enter their destination point as well as the time they want the cab to arrive. Within minutes, a list of cabs registered with Click a Cab that meet the customers specifications and needs will appear on the screen with the corresponding rates. The customer can then select the Cab of their choice and wait for their cab. The cab
20

driver chosen will then be notified and the passengers location will appear on their GPS navigation system with directions to the pickup point as well as the destination point. Once the cab has arrived, the app will notify the customer. Benefits: Click a cab is available at the click of a button and can be used anywhere in Cape Town anytime. Click a cab ensures clarity between the passenger and the cab driver regarding exact destination, time and price. Click a Cab will only use registered and trusted cab drivers to ensure the reliable and safe trips for all passengers. Click a cab allows customers to view a range of different cabs offering different prices

Price
As the average price of a mobile app is falling rapidly on all vendor app stores, except Android(Sharper Innovations, 2012) and because Smartphone application customers prefer free apps, the Click a Cab app will be free to download for customers and cab drivers (Nielson, 2012). Figure 3 showing the small percentage of paid apps that are used in the various categories:

21

(Nielson, 2012)

Click a Cab will acquire revenue by charging companies to advertise on the Click a Cab app and by charging a 10% commission on the cab companies or drivers for each trip they make.

Promotion
To advertise Click a Cab, the company will need to use advertising, public relations, personal selling and sales promotion. Click a Cab will use social networks such as Facebook and Twitter as the chief platforms for their advertising as these social medias will be the optimal advertising method to reach millions of potential consumers. Along with Social medias, Click a Cab will also make use of public relations and large promotions at big events such as parties or concerts where they will showcase the application and be highly likely
22

to find and attract their target market. The individual cab drivers registered with the company and app sores promoting Click a Cab will serve as a channel to personally sell the app as they will inform potential customers of the Click a Cab app and its benefits.

Place
Click a Cab is not a typical physical product or service and therefore cannot be placed in a store or physically sold. In order for the company to ensure that the app is easily accessible everywhere in the Cape Town region, Click a Cab will partner will all the Smartphones used in South Africa (iPhone, Black Berry, Android, and Nokia) and all the app stores. Furthermore, customers will be able to download the Click a Cab app off the internet. By using these different systems to ensure maximum accessibility, the Click a Cab app will be working to achieve higher probability of purchase and usage.

People
The people that form part of the Click a Cab service will generally interface indirectly with the consumers by working behind the scenes in order to aid the implementation of the app and to operate the application system. In addition, Click a Cab will also have staff on the customer care hotline and website to deal with queries that customers might have or problems that arise. The second group of people, the ones who deal with the consumers play an important role in the company. They will serve to shape the relationship between the consumer and the company. Click a Cab realises the importance the employees play in the company and hence, Click a Cab will require that all its employees that could interface with customers are fully knowledgeable about all aspects of the app and receive intensive training in regards to dealing with customers and unexpected problems

Physical evidence
Click a Cab is a virtual product and therefore customers do not go to a physical store to acquire the application. That being said, the customers do however log onto the Click a Cab website or open the application in order to use the service. The market will judge the application by these two elements before they decide whether to use
23

the app or not. For this reason the Click a Cab website as well as the application itself will be appealing, simple, neat and operate efficiently and according to customer standards. The Click a Cab team will also work to constantly update and the website and the app in order to keep up with the times as well as to provide customer value

Process
As we working with both the passengers and the cab drivers, Click a Cab will need to ensure that the application is quick and hassle free for both parties using the application. Our internal system needs to operate efficiently as each step in the process of our app is dependent on the steps before. It is imperative that we work to constantly upgrade our systems to ensure that the system continues to work effortlessly.

24

BRANDING STRATEGY
The Brand of a product beyond its name and symbols represents the consumers perceptions and feelings about a product and its performance (George, 2010), which marketing is responsible for creating in the mind of consumers. It is one of Click a Cabs main objectives to develop a high Brand equity. Click a Cab intends to create and maintain a positive differential effect (George, 2010) associated with consumers knowledge of the brand name and its impact on their decision to utilise the app. This would provide us with many competitive advantages in terms of: The fact that consumers will be fully aware of the distinction between our brand and already existing taxi databases will facilitate brand loyalty Increased bargaining power with distributors like the iPhone app store and BlackBerry app world, since customers expect them to have the app available Leverage against fierce price competition as customers, in this case the Cab companies and drivers who pay to be listed on our database are willing to pay a premium to enjoy the service of our brand over other brands even when they lower their rates. In essence a sound brand is the solid foundation necessary for creating long term customer relationships that facilitate the exchange of value in a manner that is profitable to Click a Cab. In order to build such a brand the following decisions must be made:

Brand positioning
Cick a Cab will position itself in the mind of customers on all three levels. Firstly product attributes, this is concerned with getting customers to be attracted to our services based on its actual features. The attractive features include the following: Get your cab by simply typing your current location and desired destination and then clicking Get a Cab, in the simple search method which implies you need the cab as soon as possible.

25

To take it up a notch, use Advanced Search which allows you to enable GPS tracking of your cab, choosing the number of people, pick up time and your price range as well as the other fields in simple search.

Make use of our preference settings to enable Click a Cab make the options of cabs available to you as personal as possible. Rate our application and the service you received from the Cab which you chose Save certain taxi companies and locations as your favourites, to auto search for them in the future.

Secondly benefits to the customer are another way to successfully create a favourable position for our brand in the minds of customers. They include the following: It is very quick It is easy to use It requires no airtime to operate It reduces the chances of dissatisfaction by taking preferences into account Saves the customer the search activity involved in finding quality cabs at a good price Thirdly Click a Cab will definitely appeal to customers beliefs and values by sharing our service philosophy with them and making it visible in our promotions and our service delivery. Our philosophy is to make the experience of Public transport private. Click a Cab wants to deliver a cab to you that meets or exceeds your expectation. Excellent service is what we pride ourselves on. We also emphasise the hassle free nature that Click a Cab will introduce into the use of Cabs. Customers must get the sense that all they have to do is click and we take care of the rest.

Brand name Selection


The name Click a Cab was chosen because it represents adequately the two main aspects of our core benefit. It represents how easy it is to get the services of a cab with just a click on our app. It is a very easy to remember and catchy name that will work well with advertisements and promotions.

26

The brand name will be protected as a trademark of the firm to prevent any other organisation from using it in the future.

Brand Sponsorship
Click a Cab is a manufacturers brand, it will be created by an expert team of smartphone app designers and then offered to distributors like BlackBerry app world and iPhone app store, also it will be available for download on a website owned by the creators of the app and accessible to smarphones mobile browsers. This is best suited to the product as it allows access to a large clientele base because using the aforementioned distributors puts our unknown app on a know and trusted database for smartphone apps.

Brand development
In future it is possible for the brand to expand its horizons in terms of: Line extensions which would be new forms of Click a Cab for example a premium version that involves more features and credit card payment. New brands could be formed like Click a Hotel, where customers are able to make accommodation bookings using their smartphones.

27

GROWTH STRATEGY
Products and companies need to grow in order to compete effectively in the market. Click a Cab is not the only taxi application available in South Africa therefore it will have to plan strategically how it will grow and be a market leader in its defined market. The ansoff growth matrix is a tool that can be used to help Click a Cab decide which marketing growth strategy to apply. It is a portfolio- planning tool for identifying business growth opportunities through market penetration, market development, product development or diversification (Kotler and Armstrong, 2010).

Firstly, the Click a Cab company might consider where the service can achieve deeper market penetration, which is by increasing the use of this application to the current customers and taxi companies without changing any software or the product itself. Click a Cab might increase the advertising/ marketing of this application using social networks like Facebook or twitter. Improvements in the ease of use of the app or the app design might also encourage customers to use this app more often. Discount specials to frequent and loyal customers could also be offered to ensure all loyal customers feel like they are receiving superior customer satisfaction and value. Secondly, Click a Cab will also consider possibilities for market development, which is identifying and developing new markets for its current product (Kolter and Armstrong, 2010). For example, management could consider new demographic markets. This app could cater to a wider market including people of different income groups. Customers could state their budget for transportation and based on the information provided, suitable cheaper taxi companies could be sent to those with lower budgets. Click a
28

Cab can enter a new demographic market by introducing the option to process payment using a credit card on this application. By doing so, the Click a Cab service can attract a market segment of customers that might not necessarily use the app or cabs initially due to the cash only payment. This could also attract more tourists to use this application. Thirdly, the business can also consider product development; this is offering a modified or new product to the current markets (Kolter and Armstrong, 2010). For example the business can also introduce a new system whereby customers can pay for the taxi ride using the app and their credit card. Improvement and changes in the app design could also encourage growth and a new product named Click a Movie could be introduced, whereby customers could book a cab and movie using the same application. Modifications can also be done to improve the current application; this could be done by constantly applying the markets technological advances to the application. This Click a Movie app could also fall under diversification as it is starting a new product/ service to a new market. It is important that managers focus on promising growth opportunities, not waste time, resources or energy trying to uphold fading products and services that are unprofitable. Click a Cab will ensure it is constantly evaluating its strategies to ensure they gain competitive advantage in their defined market.

29

SUMMARY
In conclusion, Click a Cab is a taxi app for smartphones which is eligible to enter the market and change the way customers think about the use of Cabs to reach their destination. The analysis of both the micro and macro environment shows that the market does have a significant demand for this app due to the gap created by existing brands not catering to certain segments of the market. Click a Cab is definitely market oriented. It is committed to serving the needs of its customers and delivering a product that surpasses what is already offered in the market. With the right amount of dedication and commitment it will succeed.

30

List of References Sacab, 2011. Rates. [Online]. Available: http://www.sacab.co.za/index.php?option=com_content&view=article&id=57&I temid=78 . [2012 April 29]. Taxi Rank, 2012. Step 1 Choose your taxi. [Online]. Available: http://www.taxirank.co.za/ . [2012, April 26]. Kotler, P & Armstrong, G et al. 2010. Principles of Marketing: Global and South African perspectives. Cape Town: Pearson Education South Africa. Tarrant, H.2011. With millions of smartphones in South Africa, where are all the apps. [Online]. Available: http://memeburn.com. [2012, April 25]. Unknown author, 2012. Road Transport. [Online]. Available: http://www.southafrica.co.za.[ 2012, April 28]. ConsumerScope, 2011. The 4 Lifestyle Levels. [Online]. Available: http://www.consumerscope.co.za/four_lifestyles . [2012, April 29] Nielson, 2012. Consumers OK with Ads if the Apps are Free. [Online]. Available: http://blog.nielsen.com/nielsenwire/consumer/consumers-ok-withads-if-the-apps-are-free/. Accessed on 26 April 2012 Sharper Innovations, 2012. Mobile Stats. [Online]. Available: http://www.sharper-innovations.co.ke/index.php/mobile-stats. Accessed on 25 April 2012 George, R. 2010. Product, branding and services strategy. In Principles of Marketing. Edited by C. de Nobrega. Pinelands, Cape Town: Pearson Education South Africa (Pty) Ltd. 196-231. Vigar-Ellis, D. 2010. Customer-driven marketing strategies: Creating value for target customers. In Principles of Marketing. Edited by C. de Nobrega. Pinelands, Cape Town: Pearson Education South Africa (Pty) Ltd. 196-231. Tait, M. 2010. The marketing environment. In Principles of Marketing. Edited by C. de Nobrega. Pinelands, Cape Town: Pearson Education South Africa (Pty) Ltd. 78-107.

31

32