A2Z Minicab - Dissertation Example

?A2Z MINI CABS An A2Z Minicab is a small firm owned by Jason Devlin. It is located in Croydon area of South London. The firm is facing fierce competition in the industry. This is a small scale business which only has 50 drivers. The business is steadily growing in terms of sales since the last three years. The firm plans to establish and grow by increasing its customer base. To increase the sales the company is planning to form a marketing strategy which is efficient and effective. The plan is to make an online strategy which will save the cost of marketing. The company is also planning to form a strategy that is physical handing business card to the client which can offer several deals to the regular users of the cab service. Tools which the firm aims to use have been analyzed in terms of their effectiveness through research. After research of these techniques used, the report aims to analyze and identify the most efficient technique. This will then be compared to the strategy of the competitors. The competitors are in the business from a longer period so their marketing strategies are fiercer as compared to that of A2Z minicabs. The firm will have to form the strategies which can cover the marketing objectives of the firm. The offering which the firm gives to the drivers is unique. This increases the efficiency of the drivers. The company only takes 25% of the sales from the drivers for the rent. This benefits the drivers in the slow season and it benefits the company when the sales are high. This is why the firm wishes to increase the customer base of the company. Higher sales mean higher return and profitability for the company. The online tools which the firms will use for the marketing of the services are Google Ad Word, Google Ad Sense, Google Analytics and the Search Engine Optimizer (SEO). These tools will prove to be sufficient for the marketing practices online. These techniques will help in saving the cost and in generating business for the firm. The physical mode of marketing and offering of the business cards will also prove to be efficient. TABLE OF CONTENTS INTRODUCTION 5 Company Description 5 Scope 5 Objectives 6 ANALYSIS AND DESIGN- USER STORY 6 RESEARCH 7 TECHNICAL & NON TECHNICAL RESEARCH 8 Secondary Data 8 Advantages of Secondary Data Analysis 8 Disadvantages of Secondary Data Analysis 9 COMPARE AND CONTRAST SIMILAR WEBSITES/ CAMPAIGNS 9 SWOT ANALYSIS 10 Strengths 10 The strength of A2Z mini cab is the availability of the resources and an efficient management which is increasing the outcome of the company. The major strengths of the company are: 10 Weaknesses 11 Opportunities 12 Threats 12 BUILDING THE MARKETING CAMPAIGN 13 Establishing the goals and objective 14 The objective of the company must be interlinked 14 Target market of the business must be defined 14 Value proposition and its consistency 14 Proper promotional tools 15 Measurement of the cost incurred 15 Integrated marketing 15 Internet marketing 16 TESTING OF THE MARKETING ACTIVITIES 17 Testing methods 19 COSTING- SUMMARY AND EVALUATION 20 GANTT CHART 21 MARKETING 22 Statistics Related To Online Marketing 22 Online Mode of Marketing 22 Google Ad Words 23 Google Ad Sense 23 Search Engine Optimization (SEO) 23 Google Analytics 24 Physical Tools for Marketing 24 INTRODUCTION Company Description An A2Z Minicab is a small firm owned by Jason Devlin. It is located in Croydon which is situated in the South of London. The firm is facing fierce competition in the industry. This is a small scale business which only has 50 drivers. The business is steadily growing in terms of sales. The business is operating since the last three years. The firm plans to establish and grow by increasing the customer base. The workforce of the firm is smaller comparatively to other firms operating in the same business but the pay structure is unique. The cabs are offered to the drivers on the agreement of charging 25% of the daily sales. This relaxes the drivers because they only have to pay 25% of the sales to the employers. In the days when the sales is low and less customers have used the cab facility the driver is relaxed and does not have to pay any additional amount for the employer. The firm is ambitious to grow and increase its sales. Scope The scope of the business is showing a positive trend. By using proper marketing tools and making the people aware of mini cab and its facilities, the company can improve the business. By increasing web based marketing and using internet as a tool for promoting the firm will attract many new potential customers. A cheap and efficient form of transportation and a better alternative from that of the competitors will attract new customers. A low price alternative available will increase the customers for the firms. By emphasizing on customer satisfaction and increasing the sales of the firm the management and the drivers will benefit together. The unique pay structure that the management has set for the drivers is a good opportunity for the drivers and the firm to benefit. The increasing sales are beneficial for both the management and the drivers. Objectives The objective of the company is to maximize the sales to increase the profits. The pay structure which the firm has set for the drivers clearly shows that an increase in the sales will increase the profitability for the firm and the drivers. Increasing profits will lead to business expansion. The objectives of the company are linked to the expansion of the business with the passing time. This can only be ensured by improving the sales figure. The firm can expand the business in the Croydon area by increasing the number of drivers which the firm has employed. Further the business can be expanded in London. With the passing time and increasing profitability the firm can aim for expansion nationwide. So it can be summarized that the company is currently aiming for profit maximization and expanding the business by increasing the number of drivers it has. ANALYSIS AND DESIGN- USER STORY A2Z minicab is a new and small business. It has only been in the industry since the last three years. It is competing with firms which have been in the market for over a long period of time. The firm with only 50 drivers is growing at a stable rate and it is making a profit. With succeeding in attaining the short term goals the firm is planning to start marketing of the services and expand the business. For this the company has hired a professional who will design a marketing plan and evaluate the cost that will be required to be incurred by the firm. The firm is aiming to increase its sales because high sales will generate the revenue for the company which will show the steps to the company towards growth and expansion. The analysis and the design for this plan will include proper analysis of the steps of the plan which will be followed. The steps are 1. First the firm will analyze its competitors and the offering which they are offering. 2. After the competitor analysis, internal analysis of the company will be done to speculate the level to which the firm can spend on marketing. 3. The firm is new and small so it is obvious that the available funds for the firm will be very limited. 4. The marketing plan of the company must be such that it save costs is the most effective for increasing the sales of the company. 5. The tools which have been selected for marketing are Google Ad Word, Google Ad Sense, Google Analytics and the Search Engine Optimizer (SEO). 6. These tools are very cost effective and the efficiency of the tools is more than that of physical marketing. 7. Proper testing of the tools and the strategies which have been formed to test the results of the company. 8. Conducting the research and checking the reliability of the secondary data used for strategy formation. 9. Comparing the marketing plan to that of the competitors and determining the end results of the company. 10. Implementing the designed marketing plan of the firm. RESEARCH The research for this report will include the analysis of the tools which could be applied for the marketing of the services. A2Z minicab is a small firm with about fifty drivers. It is planning to extend the marketing activities and initiate new methods to extend the businesses. The firm will start its marketing by applying the physical methods and by marketing the firm through various online channels. The marketing of the firm online will prove to be cost effective. The firm is new in the industry. It cannot risk a lot of money on extensive marketing campaigns. For this purpose the most cost effective and the efficient ways of marketing will be searched. The application of the marketing tools and their effectiveness will be tested through research. This will be done by testing the marketing strategies of the company which will portray the effectiveness of the marketing techniques. TECHNICAL & NON TECHNICAL RESEARCH Secondary Data The secondary data will be used for the analysis of the marketing techniques. The secondary data is the data collected by a researcher and it is further used for researches by other users. The primary data collected by one user is the secondary data for the other user. The data which is extracted from the secondary source is not always accurate for the use. It is the responsibility of the researcher to get familiar to the data or the data set to acquire the most accurate and the appropriate results. Advantages of Secondary Data Analysis The use of the secondary data is important because it saves the cost and the efforts for doing the work that has already been done before by others. The secondary data is often purchased and the cost of the data that is purchased is always lower than the cost incurred for the collection of that data. The secondary data is large and the sources that gather the data are also very reliable. So the accuracy of the data is in certain cases reliable. In the case of A2Z minicab the data which will be needed will be of the customer preferences, the use of the online marketing tool and its impact on the cost effectiveness of the product. This data can be easily acquired to form the strategies which will best suit the marketing plan of the firm. Disadvantages of Secondary Data Analysis A disadvantage of using the secondary data is that sometimes the data may not be aligned to answer the questions of the researcher specifically. The data may not be fulfilling the specific requirements of the research. The data set may not cover all the variables of the research which may make the results that have been derived negative. In some cases the data and the authenticity of the data is not determined which affects the final result that has been derived from the data. COMPARE AND CONTRAST SIMILAR WEBSITES/ CAMPAIGNS The comparison and contrast of similar companies or firms which are in the minicab business shows that the marketing activities of the competitors are fiercer than that of A2Z minicab. The websites of competitors have more potential to attract the prospect clients. The services which they offer are very attractive for the tourists. Competitors offer packages that are collaborated with the best hotels in the location. This saves the cost of the tourists. A2Z minicab will need to come up with new innovations to attract the tourists. Other businesses are at a more stable position because they are established in the market for a longer period. For this purpose they are more stable and the competition which they give to the new entrant is fiercer. A2Z minicab is at a stable and sustainable position. The business is new but it is consistently growing and making profits. The business card promotions that are offered by the competitors include offering at restaurants, bars and clubs, pubs hotel and inns etc. These are again an attraction for the customers. A2Z minicab is also planning to offer business cards to its customers to compete with the competitors. The firm is planning to promote its services through internet marketing. This technique will be cheaper and the effect on the prospect customers will be higher. The firm and its services will be marketed on all the websites of hotels and related businesses to the tourism industry. These steps will slowly and gradually provide the firm with the chances to rise in the industry. SWOT ANALYSIS The SWOT Analysis is the strategic planning tool used by the companies and the firms to analyze the Strengths, Weaknesses, Threats and the Opportunities that are available for the business in the particular scenario or the situation in which the firm is doing business (Pearce, & Robinson, 1997). It is essential for the business to be aware of the environment in which it is doing the work and the firm must be aware of the resources which it has to deal with the threats and the challenges (Hussey, 2012). The proper analysis of the threats and the weaknesses of the firm can be later converted into strengths and opportunities for the firm for the future. Strengths The strength of A2Z mini cab is the availability of the resources and an efficient management which is increasing the outcome of the company. The major strengths of the company are: Less but efficient drivers The employees are well-trained and know the ideology of the business The compensation system of the firm is innovative and it is beneficial for the firm and its drivers The firm and the drivers both are availing benefits with the increasing sales of the company The firm knows the importance of a satisfied customer and hence works for the benefit of both A satisfied customer will give referrals to others about the services of the firm and hence in the end the business will grow and flourish The model of the business emphasizes to compete with the competitors and work to provide maximum satisfaction to the customers Weaknesses A new business faces difficulty in making the brand recognizable as compared to the competitor brand The firms needs to expand slowly due to the lack of availability of the funds it is facing problems The firm faces challenges in motivating the employees and finding proper efficient workforce The firm requires prompt marketing but the conditions of the business and lack of funds make it difficult The business is in no position to sustain losses. This makes it difficult to implement innovative ideas on the business. Opportunities The firm has opportunities for expansion in the market It has the chance for the expansion of the business in different areas The firm can strive harder to gain the efficiencies in the business The firm becomes profitable if the inefficiencies in between are removed Constant improvements of the business can ensure that the demand for the services will improve in the future With the passage of time the services provided can be taken to a different level to increase the efficiency of the company. Threats Primarily, company is facing threats from the competitors which are working in the same markets Unpredictable and the catastrophic events are unavoidable. These events prove to be another important threat for the business The negative impact of uncertain events or calamities on the industry can also effect the growth or the profitabi9lity of the business Unexpected regulations implemented by the government which can affect the operating of the business Certain regulations also effect the future growth plan of the company The above mentioned Strengths, Weaknesses, Opportunities and Threats of the firm will help the management in designing a growth plan. A firm which analyzes its weaknesses and threats and converts them into the strength and opportunities can grow with the passage of time. For the growth of the business the firm requires to constantly expand the business. For this purpose, the expansion plan of the company and the future aims and objectives of the firm have been discussed (Wilson, & Gilligan, 2012). BUILDING THE MARKETING CAMPAIGN Having an effective marketing campaign is necessary for the business to make profits. The marketing campaign must be made after a thorough analysis of the product and its attribute, in accordance to the needs of the customers. A proper marketing campaign has a goal which is destined to the goals of the company. The risks which are included in the implementation are minimized and the return on the invested amount is also high (Chaffey, Ellis-Chadwick, Mayer, and Johnston, 2008). Some of the essential steps which the marketing campaign of A2Z minicab will focus on will be the following Establishing the goals and objective The goal of the firm will be to attract more customers and increase the sales so that the firm can expand the business and grow accordingly. Being a new business the firm lacks the capital required for extensive marketing. The competitive environment today requires a firm to implement proper marketing techniques so that the firm can grow and retaliate to the competition which it is facing. The objective of the company must be interlinked The goals and the objectives of the firm must be interlinked. The growth of the company is a step by step process (Wheelen, & Hunger, 2011). A2Z minicab plans to expand and grow continuously with the passage of time. The strategy of the business is to increase its customer base and expand the number of drivers and cabs that the firm is operating with the passage of time. Target market of the business must be defined The target market of the business is set and properly defined. The firm emphasizes more on the tourists. The strategy of the business must be to classify the target market of the business and start segmenting the prospect customers which can benefit most from the services of the company. Value proposition and its consistency The value intended to be proposed by the firm must be consistent (Thompson, Strickland, & Gamble, 1998). The value that A2Z is proposing comprises of cost leadership and offering comfort to the user. All the marketing slogans which are proposed by the firm emphasize on low cost of the services. The cabs are small in size which is ideal for two to three people. The future marketing campaigns of the company must also comprise of the same value proposition. Proper promotional tools The tools used for the promotion include the physical mode of promotion which can also be called as the integrated form of marketing. The next step for marketing includes the marketing of the services online. For the promotion of the product online the tools which are planned to be used are Google Ad Word, Google Ad Sense, Google Analytics and the Search Engine Optimizer (SEO). The usage of these tools is sufficient for the company to acquire the short term goals. These tools are very cost effective (Chaffey, Ellis-Chadwick, Mayer, and Johnston, 2008) and considering that A2Z is a new business and lacks the funds which are required for extensive marketing this strategy is most suitable for the business. Measurement of the cost incurred The measurement of the cost that has been incurred by the firm for the marketing of the product and the implementation of the formed strategy is very important for the firm. A2Z minicab is a new firm and it lacks the liquidity to engage into extensive marketing. The measurement of the cost which is incurred by the firm is important for the mere survival of the company. Integrated marketing The integrated marketing technique is the use of the essential marketing processes for the marketing of the products (Kotler Armstrong, Wong, and Saunders, 2008). The integrated marketing strategy will include the analysis of the Organizational Culture Four P’s Of Marketing Advertising Online Or The Internet Marketing Customer Service Promotions Tradeshows The technological advancement leads to the increased use of the integrated marketing techniques. The integrated marketing of the products is increasing because the social connectivity between the people has increased. The amount of products that are sold online has also increased. This is attracting the firms towards the online marketing of the product. Internet marketing Internet marketing is the easiest and most convenient method of marketing which increases the cost efficiency of the organization (Chaffey, Ellis-Chadwick, Mayer, and Johnston, 2008). This trend has increased due to increase in the excessive usage of the internet. More and more people are visiting online stores and the web pages. The need for social connectivity has also increased (Interactive advertising Bureau, 2007). The tools which are used for the marketing of the products on the internet are very cost efficient. The use of the tools like Google Ad Word, Google Ad Sense, Google Analytics and the Search Engine Optimizer (SEO) are the most efficient methods for the marketing of the products. The product is targeted directly to the user which impacts with the increase in the sales of the products (Interactive advertising Bureau, 2007). TESTING OF THE MARKETING ACTIVITIES There are various processes available for testing of the marketing activities of the organization. The testing of the activities shows the strength of the marketing plan which are being used. The successful marketers are those who are constantly testing the responses of the marketing campaigns. Testing the results of the marketing campaigns for over a sustained period of time improves the response rate of the activities which are being conducted by the firms. Most of the companies do not prefer to check the result or the responses of the marketing activities which are being conducted. Testing the marketing plan ensures that the desired result will or will not be achieved by the company. To add value to the actions of the company proper implementation of the plan must be done. The testing of the plans is important for the proper customer relationship management. The companies usually avoid this because they feel that this process is time consuming worthless. The new and the efficient methods of test marketing are used for the improvement of the system. The efficiency of the process helps in generating the desired returns. For the efficient testing of the plans the following steps must be kept in mind that the marketer Has set the goal and the target which the company expects from the marketing plan The sample which has been selected for the testing purpose must be significant and sufficient for the testing purpose. The random sample which is selected must be spread evenly or else the results acquired in the test and the actual results will be very different The sample which is selected for the testing purpose must not be very large in size. The sample for the testing must be of the appropriate scale required for the measurement of the sample (Cook, n.d.). The process of testing must be kept to maximum simplicity. The data must be small and appropriate. The variable must be tested separately (Cook, n.d.). Measure the important variable with priority for the efficiency of the results Apply additional test on the data which is acquired for the testing purpose to acquire the appropriate results Testing is a continuous process. Before implementing any of the marketing strategies a proper testing of the strategy must be done to analyze the results of the plan (Cook, n.d.). To get the desired outcome the companies use several tools and strategies. The aim of these strategies is to generate the desired results. It is important for the firm to be aware of the practices of the industry. If rules and regulations of the industry or the political conditions are such that the desired outcomes are not achieved or there are limitations for the application of the marketing plans freely then the firm must make the plans accordingly. All the steps discussed above are applicable for A2Z minicab. The plans which the business is seeking must be implemented in a proper way. Testing of the plan helps in generating the real time leads of the plan to be implemented. The specific interest of the firm with the application of the plan can be tested for this purpose. The firm is planning to do marketing in the physical form and in the online form. This can be named as the integrated and the online form of the marketing techniques. If the firm has formulated the marketing campaign then it requires proper testing to check and evaluate its appropriateness. The testing of the online marketing plan of the services can be done by using the tools and analyzing the results which the company is getting. For this purpose a time of one week can be allotted. If the tools are successful in generating the number of hits or the desired traffic is gathered in the allotted time then the plan can be considered as accurate and durable for the implementation. If the desired results are not achieved from the tested plans, then other plans must be formed to test if the desired result is being generated or not. The physical marketing of the product is done from time to time and it does not vary with the changing time. The plan for the physical marketing is not specific. This shows that the testing of the physical plan is difficult because the sample of this type of marketing is also scattered. The testing of the scattered date is difficult. Testing methods The frequently used testing methods for online marketing are the split testing techniques. This method includes the rotation of the traffic and analyzing attraction of the traffic. The split testing method is frequently used to test the changes that are small and take place at a particular time. It is very important for split testing that the variables are not changed frequently. For testing the online ad campaign of A2Z minicab the split testing method will prove to be the most useful. A/B Test Multi variable test Display ad test For the application of the most appropriate ad campaign and making the strategy that suits the business best, it is essential that it is properly tested. This helps in analyzing the best strategy that is available and will prove to be efficient in attracting the traffic of customers for the business. The online methods of marketing of the product are usually charged on the basis of Payment that is received per click (PPC) or the profit that is received per visitor (PPV) on the webpage. Testing of the campaign beforehand allows the testers to speculate a level of outcome which can be expected from the marketing campaign (Chaffey, Ellis-Chadwick, Mayer, and Johnston, 2008). COSTING- SUMMARY AND EVALUATION The new expenses which are incurred by the firm are related to the cost of marketing. The marketing of the services aims to increase the sales of the company. The firm is operating since three years in the industry. The basic infrastructure of the business has been set already. The costing of the firm will include the following, TOOLS AND TECHNIQUES ESTIMATED EXPENSES The cost and time of the advisor for designing the marketing plan. ?5000 for 9 months. This period has been set for the making and the implementation of the new marketing strategy. The additional investment for emergency ?1000 will be saved by the company for any emergency. This amount will be pooled and it will multiply with the passage of time. Search Engine Optimizer (SEO) The cost of SEO which will be incurred includes ?49.99 for 3 months. Google Ad Words The charges of the advertisement put on Google Ad Words varies. When the person who is visiting the website clicks on the ads the cost is charged. This method of advertising is very cost effective. Google Ad Sense The marketing of the products using the Google Ad Sense is free of cost. Business Cards ?800 for the printing of 5000 cards Posters The posters for the advertising of the firm and its services will be pasted in various areas to target a specific segment class. The cost of the printing of the posters will be ?200 for 5 posters. GANTT CHART GANTT CHART                       Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Structuring And Analyzing The Plan     Social Media Marketing     Implementation Of The Plan       Internet Tools Research       Data Analysis         Search Engine Optimizer (SEO)     Google Ad Words     Google Ad Sense     Google Analytics       Physical Marketing       Business Cards     Posters     Testing Process         Start Date   Activity Duration   Stop Date MARKETING Statistics Related To Online Marketing The global internet users that survey the products online are 61%. (Hubspot, n.d.) The searches which begin from the use of search engine are 44% (Hubspot, n.d.) Number of searches conducted worldwide per month is 131 billion on the web. Simultaneous use of TV and web is 57% (Hubspot, n.d.) 70% of the clicks are on the non paid ads. 75% of users never exceed the first page of the search result (Hubspot, n.d.) Online Mode of Marketing For the marketing of the A2Z minicabs the firm has decided to apply the online marketing tools. The firm is planning to advertise the business by using the online tools that are available because their usage is simple and the results that are generated are productive. Advertising of the product using these marketing tools are easy and can be started on an immediate basis by the product manager. Google Ad Words It is a tool which highlights the keywords of the search and it makes the product prominent for the person who is searching for the related information. The message of the businesses which want to advertise is put in front of the potential customer when they are searching for a specific keyword. Google Ad Sense This marketing tool is very simple to use. This tool places the advertisements online on the relevant websites to attract new customers and making them aware about the existence of the products. For the marketing of A2Z minicabs this tool can be used. The ads can be placed on the relevant websites which are related either to tourism or the car market of London. The ad can also be tagged to the hotel related webpage’s etc. Search Engine Optimization (SEO) Techniques and methods that are used for increasing the traffic on a webpage are called SEO. It is beneficial for the business because it increases the traffic of the website. The SEO makes the appearance of the webpage easy for the person searching for the similar facilities (Search Engine Land, 2013). This tool will increase the online booking of the cabs and more and more people will gain knowledge of the product and the service which the firm is offering (Google, 2013). Google Analytics The Google Analytics is the tool which helps in creating an analysis for the business. It is a statistical tool used for the analysis of the business and identifying the future objectives for the firm. It emphasizes on the marketing of the product or the services backed by proper stats and figures (Google Analytics, 2013).The use of this statistical tool will help the firm in analyzing its performance, trend and using that trend analysis for further marketing of the product of the company (Google Analytics, 2013). Physical Tools for Marketing All the tools which have been discussed above are the easiest and the simplest methods which the firm can use for the marketing of the services. These tools are simply accessible for the project manager. The investment required for marketing using the above mentioned tools is less and the outcomes which are generated are more. For the efficient marketing of the minicab the firm must emphasize on the online tools more. The physical investment for the marketing requires a lot of investment and if the results are speculated it can be noted that the online mode of marketing is more efficient in generating the results rather than the physical methods. For the physical marketing the firm will get the business cards printed. These will be tossed by the drivers to the clients for future contact or for referring to others about the business. This form of marketing will be very direct. The firm is in search of the printers who could provide this service or facility in a cheap and affordable rate. In physical marketing the posters of the firms in the local newsagents will also be printed on their notice board to attract new prospect customers. All the physical marketing will comprise of the marketing of the excellent customer service that is provided to attract the customers. This also spreads a word of the excellent image of the firm to the customers. 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