MOD004054 Marketing Communications Level 4

TASK 1

1. Context analysis of Uber of United Kingdom

For providing information about company's products and services to customers in short interval of time, organisations like Uber use effective marketing communication. This process includes various activities related to build communication with customers in an effective way. In addition to this, it helps in influencing behaviour of customers in a positive way.

Uber profile and background

It is one of a leading transportation company of UK which was established in the year 2009 by Travis Kalanick and Veterans Garrett. The first branch of this organisation is headquartered in San Francisco, USA. This enterprise offers various types of services like taxicab, ride-sharing, food delivery as well as vehicle services to people. It has established business in 633 cities of the world. In addition to this, Uber has provided online applications to people to access its services and on cheap rates. The main purpose behind offering services at low cost is to expand transport business in more regions. According to statistical point of view, this firm has expanded its business operations first time on 14thMarch in more than 33 new regions. Along with this, currently it has more than 400 working employees who give their contribution in providing services in better manner. Expansion of business at international level aid Uber to generate huge amount of revenue as well as gain high return on investment. As estimated in the year 2017, it has earned around US $7.5 billion.

Nature of business environment

Business environment that was provided by Uber is not so good as per the reviews and feedbacks taken form customers or published in newspapers articles by some renowned personality. Employees who were working in this organisation were not skilled or adequate with customer relation as they were bringing incomplete and unreliable solutions to clients. This transformed as one of the biggest drawback, relations amongst employees were also not appropriate and back stabbing of co-workers can be seen at workplace. Therefore, overall environment and nature of business was destroying the image of company in front of customers because of which their sales and profitability was also decreasing.

CONTEXT ANALYSIS

Context analysis is used as most beneficial method for a company in analysis the environment of business in which it operates. Evaluation of environment includes determination of macro factors which impacts directly on operational activities. While context analysis are used to evaluate both micro and macro factors which affects business in a large manner. Analysis of such attribute help management in formulating effective strategies and policies used to accomplish desired objectives in an appropriate way. These measures are required to make an action plan properly which provide information based on the impact of macro-environmental factors. In addition to this, it is taken as primary stage of planning in which new areas are identified to grab opportunities in more effective manner (Kaplan, 2012).

INTERNAL AND BUSINESS CONTEXT

Business context is also used to examine environment of business organisation. But is consider internal and external environmental features in order to make sure that policies and practices are lead better result. For Uber Company, its first choice comes in existence when a customer wants to ride sharing or avail service. It provides various types of services according to preference and lifestyle of customers. Its services are mostly used by consumers who are price conscious. Therefore, for welfare of people and gaining their retention with services, this firm has offered various discounts on regular basis to customers. Along with this, using marketing communications, its management convey various messages to provide informations to its regular customers about offers and discounts. In UK marketplace, Uber services has provided tough competition to various online transport companies who are dealing in same business. As it provides services on much low cost as compared to other service provider. So, it has emerged the business in marketplace of UK in a better manner. Currently, due to emerging of various companies, its management has focused on developing Uber Taxi service in the rural places also. This would help in increasing number of customers of distant places (Luxton, Reid and Mavondo, 2015).

Business is considered as one of the important process which every company should determine so that they can identify the needs and requirements so that it can be delivered to stakeholders in a better manner. Thus, it is utilised by most of the organisation in order to get appropriate results. Uber is one of the renowned organisation that provides services in context with ride sharing. Although the company is operating its business in an effective manner but there are some of the elements that must be determine so that they can identify the need of developing marketing communication.

Internal Context:

Perception of risk issues (Settle & Alreck): Such theory is related with the risk that may faced by Uber while providing cab services to maximum number of people. Such risk may related with:

Technical issues: Uber app malfunctions or something happens with user Driver partner account they have nob recourse. Uber also provides email support system but it doesn't give an immediate response which decreases the satisfaction level of customers.

Safety: Picking up strangers and drop them at destination which is generally small in space could be risky for drivers. For this, Uber gives a option to customers to pre-select their destination area.

Unable to predict uncertainty: Sudden road blocks, accidents that block the usual routes amy brings difficulty among Uber driver. For this, Uber need to hire experienced drivers who knows routes. It is further analysed through conducting SWOT analysis which help understanding the nature of the company in a better manner. This will help them in evaluating internal component of the organisation so that environment of the firm can be easily identified. Therefore, some of the factors that are mentioned below to understand the situation in an effective manner:

Strengths:

• Uber is one of leading organisation that is trying to give excellent services to its customers as a result it is gaining loyalty of consumers. Firm is using on-demand-service model so that they can provide better facilities in order to satisfy the needs and wants of clients. Thus, they are providing services through online and offline process.
• Organisation is giving facilities under very low fixed investment as a result it is assisting them in keep on the commitment of customers towards their services and facilities. As a result it is helping them in generating more and more revenues for the organisation.
• Employees of this company are very committed towards their work and they are very much concern about the safety and security of the customers (Maarek, 2011).

Weaknesses:

• lack of improper communication can be seen between the superiors and drivers because of which their performance gets affected.
• Cost of maintenance is very high as compared to the salary that are given to drivers.
• As the organisation is a business based firm and tries to get maximum profits by implementing limited amount of money in their goods.
• Relationship between customers and company is not appropriate as a result it sometimes not gain much profit and chances of controversies may arises.

Opportunities:

• With the increase in growth of market area most of the opportunities also arises. Uber is provided job facilities to many of the individual which is helping the organisation in increasing maximum number of profits.
• By upgrading their system they can limit the time of waiting for consumers.
• Other than this, organisation can collaborate with other firms in order to increase their sales and productivity.
• Along with this company can expand their services in some other areas also like taking patients to hospitals and many more.

Threats:

• Lacking behind form other firms is the biggest threat that are faced by most of the organisation.
• Rash and self driving is the main concern for the organisation.

Buyer's Context:

This is considered as most significant element for company and with help of this, they will examine requirements and demands of people. In this manner, they will easily accomplish it timely. In context of Uber, they are offering numerous services to clients as this enables them to improve their position in market and revenues as well. It is essential for company to cater qualitative items to individuals. Manager of an enterprise need to conduct research; hence, they will be able to know about perception, behaviour, attitude, learning style etc. of person. Some strategies will be formulated by an enterprise so they will capture attention of numerous people towards them (Marsden, 2010).

Company develop a mobile app with proper security, which contain current location and in addition, they are using latest method for promotion as well as advertisement. They are operating their business at international level; hence, it is required for them analyse needs and requirements of people because each one is having their own culture which is following by them.

Segmentation of customers: It is must for an enterprise to classify their market as per age, gender, location etc. of individual. In this, consumer need to be analysed on the basis of different specification, such as accessible, measurable and distinguishable.

Discover their demand: Each client want high quality services and in addition cosy rides. Thus, it is required for Uber to provide administration accordingly as this enables them to gain attention of numerous people towards them as well.

Development of customer profiles: Profile of Uber and related information and data is much associated with target clients and in addition their description. There are many elements which will include into this, background, objection, responsibilities etc. This has been analysed that, in UK more than 10% adults are using Uber on constant basis. In this manner, firm is improving their revenues and sales effectively.

Bridging the gap: It is required for an enterprise to reduce gap amongst firm and their clients as this helps them to maintain brand image at marketplace. As a result, they will easily achieve coveted targets and goals within certain time span.

Nature of buyer according to situations

Uber comes amongst the top most leading company in terms of start-ups, they have started this business in order to provide services to customers so that they can travel from one place top another in an easy and effective manner. In context with buyers, and to strengthen the process company must think with the perspective of buyers and they can ask frequent questions to themselves like: Who will be the buyers? Uber is targeting customers who belongs to millennials age group (in which people of age group between 22 to 37 are considered). Therefore, for this company can make customer segmentation. Why customers will buy our services, what will be buyer's mindset? As people of millennials are working in large number In United Kingdom and for them Uber has started their services. This has helped them in travelling from one place to another for different purposes. According to the mindset company is charging less thus, it will increase their sales and profitability and assist them in maintaining a better relation with customers. How customers can avail their services? All these services can be availed by simply download an application and register themselves for free and moreover if they want to become prime customers than consumers have to pay a small amount so as to become a prime customers and enjoy services and facilities.

STAKEHOLDER CONTEXT

Stakeholders are the one who gives maximum support in achieving growth and success of an organisation in competitive market environment. Stakeholders includes customers, suppliers, shareholders, government, community etc. Therefore, it is important for Uber to analyse the shareholder mix with the help of Mendelow's Matrix. It is essentially important for an organisation to perform business activities on the basis of stakeholders as they play a valuable role in functioning of business operations (Shah, 2011).

Stakeholder mapping: It is considered as visual representation of stakeholders analysis and manage people on the basis of their skills and knowledge. As they provide enough support to an organisation therefore it is the responsibility to identify their needs and requirements and should focus on fulfilling them in better manner. For an example, a supplier of providing cab facilities facilitate Uber to provide cab services to the maximum number of people. Hiring cabs in exchange of giving some amount of payment help them in giving cab services to maximum number of people. It undertakes necessary process in context in order to consider the main stakeholders of the Uber company which are given as below:

Box A: Minimum Efforts- In this, the power and interest of stakeholders are minimum as they are much satisfied with the performance of an organisation. For example, giving maximum payment to owners of hiring vehicles maximises their satisfaction level. (Thackeray, Neiger and Keller, 2012).

Box B: Keep Informed: Under this, it is the responsibility of management of an organisation to communicate with stakeholders and inform them about the plans and policies formulated by them so that they show much interest in the business operation of an organisation. For example, changes in pricing policies affects the income of vehicle renders which forces them to show more interest in every plans and policies made by Uber.

Box C: Keep satisfied: Under this, it is important for management to maximise the satisfaction level of stakeholders so that they show less interest and interferences. For example, Giving fixed amount of salary to suppliers irrespective of inflation or deflation situation increases their satisfaction level due to which showing less interest in the plans and policies made by Uber.

Box D: Participation: Under this, stakeholders has given full rights and power to interfere in business activities and perform according to their plan and discussed policies. For example, to get higher income car renders are willing to engage in decision making process of Uber in order to ensure about their income.

Uber business organisation are depend on the support of stakeholders thus the management should required to maintain healthy relation with them and give maximum efforts in maximising their interest and satisfaction level (Upadhyaya, 2012).

ENVIRONMENT CONTEXT

Business environment is complex in nature which changes frequently due to which lots of problems has been arises which create problems and issues in front of an organisation. The management should required to analyse them carefully through conducting PESTLE analysis and accordingly implement corrective measures to reduce negative impact. According to the environmental protection agency, the average passenger vehicle emits 4.7 metric tons of CO2 per year. In the three years, Uber should have contributed 94000 metric tons of CO2 into the atmosphere of New York City alone which equals to nearly 101 million pounds of coal burned. A city welcomes Uber onto its roads where the people spend less time stuck in traffic or looking for a parking space. According to the CEO of Uber, the city will be healthy and clean if the fewer cars on the road contains less carbon pollution which can be possible through using Low emission hybrid Uber vehicles. Giving option of pooling cars also an effective step to protect environment. The vision statement of Uber states that when the people forego car ownership then the city's overall vehicle miles travelled also decreases due to which the less gasoline is consumed and fewer emissions are generated. from pollution. In September 2017, Uber partnered with Carnegic Mellon University with a ope of advancing driverless car technology Some academics have claimed a world full of self-driving cards connected to an Uber-like service could reduce fossil fuel use by lessening the time people spend in traffic or looking for parking. It is further discussed through PESTLE analysis of Uber company are which briefly stated as below:

Political factor: Every country have their own rules and regulations which need to be comply by the company who are operated their business operation in such country. As Uber has given services to different countries due to which it becomes difficult for management to understand each country's rules and regulations and taxation policies. This will may creates problems for them while doing business in diffident countries (Wallnöfer and Hacklin, 2013).

Economic factor: Such factor my also affected business of Uber. Sharing an economy has created huge employment opportunities to individual. Uber has generated more job vacancies as cab drivers to maximum number of people which makes positive impact on the economy of country as well.

Social factor: Uber provides 24/7 hours cab services to the people due to which the people are more reliable on their services. They charged minimum fare from the customers as compared to other taxis due to which maximum number of people prefer to use their services instead of their rivals.

Technological factor: Using advanced and updated technology may bring easiness in executing business activities. Therefore, it is essentially required for every business to use such technology in order to improve efficiency and effectiveness of firm. Uber has developed app through which their customers can book their rides and gives feedbacks on their journey as well. It helps them to know the areas on which they need to worked on (Williams and Chinn, 2010).

Legal factor: Uber has indulged in many controversies related to providing safety to their customers due to which their brand image are also affected. Therefore, to survive business in different countries, the company should required to comply with legal laws and legislation such as copyrights, safety laws, labour legislation etc. so as to operate their business activities without facing any difficulties.

Environmental factor: It is related with the factors which affects the sustainability of an organisation. As Uber engaged in provide cab services to the people which causes air pollution. This will damage the environment which create negative impact on the people as well. To protect environment, the company has given an option to customers to share their rides with others so that less cab services are used in providing services. They have also launched Pilot project which is also known as Uber green in which riders are request for green ride by tapping the button.

2. Evaluation of strategic components for Uber

Marketing communication is the effective strategy which includes application of approaches by the organisation to provide their messages regarding existing product and services to their existing and potential customers. The main aim behind the use of this approach is to influence the behaviour buying behaviour of customers. It provides the opportunity regarding the attraction of the large number of customers, build good brand image, higher number of profits, ascertaining higher position in market, large market share etc.

The management of Uber uses this strategy for attraction of the large number of customers is to use their ride sharing services and bring awareness among the individuals of society about their different kind of innovative offerings (Wilson and et. al. 2012). In this regard the different strategies which they decided to adopt are defined below:

• Push communication: One of the effective method one message or information is transmitted by any one person. It helps in transferring of the information from the point of receiver to sender. In such type of communication there is no physical interaction between both the parties. It is assumed by the sender of the information that the message is understand by the receiver automatically. The modes which are used under this method regarding disseminating of information includes letters, e-mails, reports, faxes, memos etc. The major disadvantage which is associated with the use of this method is that there is no certainty about the delivering of message. The main aim behind the using of this approach of communication is that is to provide the information about their existing products and services to their end customers. The benefits which are attained by Uber trough application of this method is attraction of large number of customers to improve their market share and earning of large number of profits. E-mail is one of the method which gives some kind of assurance regarding delivery of the information to sender. The major examples of this strategy are defined below:

- Promotion with the helps of packaging design

- In store displays

• Pull communication: This approach of marketing and adverting is totally different from push strategy. Here, individuals are not forced to read the information. The main emphasis is provided on the development of communication channels which contributes in attraction of large number of customers (What is marketing communication, 2013). Behind the application of this strategy is to provide the maximum outputs to their customers. For effective implementation of this kind of strategy, organisation is required large amount of funds. The customers are automatically attract towards their brand. The different modes which are used for communication of information includes websites, wikis, magazines etc. The reach of such kind of modes is more wide and helps to spread awareness among larger section of society. As per this strategy customer demand is created with the helps of different offerings like free samples, coupons, discounts etc. One of the effective strategy to use when the demand of their product and services is high. The main examples of this strategy includes:

- Promotion with the helps of mass media

- Providence of discount and reduction campaigns

- Customer's relationship management

• Profile communication: One of the different strategy which totally different from push and pull. As per this strategy, more focus is provided on stakeholders and keep them update with the information which happen in organisation on regular basis. It helps the organisation like Uber is to build effective bond with them attains their full support in different business activities (Rice and Atkin, 2012). The different modes which are used in this regard includes e-mails, newsletters and progress reports. The main examples of this strategy includes:

- conferences and meetings

- Sales kick of videos

- Events and functions

all the strategies helps the management of Uber is to effectively accomplish their targets within stipulated period of time. It helps to understand the different preferences of their customers and make changes in their existing services. As per market research, 65% of customers are satisfied with their services.

CONCLUSION

It has been concluded from the above report that marketing communication is one the strategy and approach which is used by Uber for improvement of their earnings. It helps the organisation is to spread the awareness among the customers about their different offerings. It also helps in building of effective communication channel with customers for retention of them for longer period of time. Through providence of the services as per their requirements helps in attainment of their trust and loyalty towards their services.

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