This Report will be focused on improving the experience of Addison Lee customers, by targeting a younger audience of 16-25 year olds by June 2018. As a newly appointed Marketing Assistant, the focus will be to carry out marketing research to find out the strengths and weaknesses as well as opportunities and threats by taking into account the changes to be applied to make the company more competitive to its environment by examining the microenvironment and macroenvironment. The report will further look into the evolution of marketing, marketing environments, marketing strategies and the marketing mix to meet the goals/objectives of Addison Lee.Production Orientation: A business where the sole focus of the organisation is on production efficiency which includes: price sensitivity, affordability, available products, mass distribution and low-cost labour Therefore, management should concentrate on the efficient improvement of production and distribution Product Orientation: The company’s sole focus in making the highest-quality products, innovative features and performance that can be sold at the right price but with insufficient attention to what customers really need and wantSelling Orientation: The successful management of the relationship between the company and its customers by simply selling products using promotion techniques to attain the highest sales possible Sales Orientated organisations mainly use promotion techniques, such as advertising and personal selling to draw in customers to buy the product or service within the shortest possible time.Marketing Orientation: Companies that are market-orientated depends on knowing the needs/wants of its target customers to meet customer satisfaction and the goals of the organisation. Through continuous market research surveys, companies with a strong market-orientation can detect customer needs before competitors II. Identify and explain the orientation adopted by Addison Lee, and provide two (2) examples that demonstrate Addison Lee’s use of the approachThese are the orientations adopted by Addison Lee:• Production Orientation• Product Orientation• Selling Orientation• Marketing OrientationProduction Orientation: Addison Lee provide high quality service which range from standard cars to fit every journey and occasion, airport transfers, executive services, events, coach hire, travel-agents, same day and next day courier service and international delivery service to meet the needs and expectations of customers Product Orientation: Addison Lee provide a fleet of executive cars, like the Mercedes E- Class and S- Class; which are not older than three years. Cars fitted with complimentary 4G Wi-Fi, Mobile phone charger, TV and DVD player, leather interior, electric blinds and personal climate control Selling Orientation: Addison Lee focuses on sales and promotion techniques which includes personal selling, advertising and promotion through its Website and Mobile App Marketing Orientation: Addison Lee markets its products according to needs of its customers and includes guaranteed safety, exclusive discount offers, personal accounts and 4G WIFI as well as mobile phone chargers Examples that demonstrate Addison Lee’s use of approach:Selling Orientation: Addison Lee achieve this through promotion technique such as advertising and personal selling on its Website and appMarket Orientation: Addison Lee provide guaranteed safety and security, exclusive discount offers like 10% off Executive and Courier bookings and 20% off Airport journeys I. Describe marketing environment analysis and discuss why it is important for Addison Lee, prior to setting a marketing strategyMarketing Environmental analysis is a strategic tool that involves the actors and forces outside marketing which affect the ability of the marketing managers to build and maintain successful relationships with its target customers It comprises of a Microenvironment and a Macroenvironment:• Microenvironment: the actors that are close to the company, which affect the ability of the company to serve its customers. Example, company, marketing intermediaries, competitors, public and customers which are the most important actors in the company’s microenvironment• Macroenvironment: the bigger and wider outside societal forces that affect the actors in the microenvironment. Example, demographic, economic, natural, technological, political and cultural Market Environmental Analysis is important for Addison Lee to identify the internal and external environment elements which can affect the organisational performance. The analysis enables assess the level of strengths and weaknesses, opportunities and threats (SWOT) which can affect the organisation’s performance. These evaluations are later translated into the decision-making process to setting an effective marketing strategy that will be viable to the company and in building a strong relationship with the consumers II. Considering the macro environment of Addison Lee, identify and discuss one (1)Economic factor and one (1) sociocultural factor that impact Addison Lee’s marketingdecisions. Explain whether the factors create marketing opportunities or threats forAddison LeeEconomic Factor: The state of the economy affects the ability and willingness of customers to buy productE.g. Interest rates, taxation, inflation rates, savings ratio and Gross Domestic Products (GDP), income distribution• Gross Domestic Product (GDP) An economic factor that could impact Addison Lee’s marketing decisions could be a UK GDP decline which leads to recession. A recession would be a threat for Addison Lee because it leaves consumers with not much disposable income meaning not much purchasing power. Being the case, marketing decisions would have to be much more cost orientated, in the sense that promotion techniques such as advertisement which inform customers that Addison Lee services will be inexpensive but still of high quality rather than using marketing words like “premium priced” in order to adapt to the current marketplace and retain customers• Sociocultural FactorA sociocultural factor that could impact Addison Lee’s marketing decisions could be, example, lifestyle, culture, beliefs, attitudes and values Lifestyle: influences purchase behaviour. Example, the use of smartphones is the common means of communication for young people, Addison Lee’s marketing decisions could be directed towards the use of mobile marketing, to ensure that their marketing campaign stimulates (AIDA) Attention, Interest, Desire and Action from their target customers III. Considering the micro environment of Addison Lee, identify two key competitors and discuss their potential threat to the businessTwo key competitors of Addison Lee, are Uber and Black Cab;• UberUnlike Addison Lee, Uber drivers know customers destination upon booking, seamless payment done via the Uber app, operate anywhere at anytime without reservation and registered regular drivers can sign-up with Uber and use their own vehicles • Black CabAs for Black Cabs, they can be easily recognized by its signature shape and look with an assortment of colours, guarantees passengers comfort and safety through its longevity, can be easily hired anywhere and anytime by hailing without having to make a booking and are a cultural staple for visitors and Londoners Both competitors are a potential threat because they operate in the same marketplace as Addison Lee which is, London. IV. Identify and explain two (2) internal environmental factors that could be considered as strengths or weaknesses of Addison Lee’s business operationTwo Internal Environmental Factors; Employees and Leadership (Strengths/Weaknesses of Addison Lee business operation:• Strengths – Culture of the OrganisationA company’s organisational culture includes the behaviour of members, visions, beliefs, habits and values that lead to overall organisational performance Addison Lee’s organisational culture consists of the objectives, policies, procedures, organisational structures and systems which influence consumers behaviour. For example, Addison Lee have well trained and experienced drivers that guarantee safety, there is transparency when dealing customers and clients, excellent customer service and up to-date technology to meet customers’ needs for seamless transaction• Weaknesses – Employees of the OrganisationIf workers do not have security, feel accepted and valued by the organisation, have packaged benefits, flexible working hours that fit around their personal schedules, opportunity for growth or promotion within the company they will demotivated to work harder and meet company interest and overall goals I. Explain the concept of market segmentation and its importance in planning a marketing strategy for Addison LeeMarket Segmentation is defined as the process by which a market is clearly divided into different groups of customers with similar needs and characteristics; and display similar responses to marketing actions Unlike Mass Marketing, in market segmentation, the overall market consist of many smaller segments and each group is different from the other. For example, this marketing approach help organisations to identify one or more appealing segments to which they can profitably target their products and marketing effortDividing the market into groups will enable Addison Lee to direct their limited resources to target specific customers effectively and efficiently in order to produce best returns of the company’s investments through sales by reducing competition whilst keeping their target customers satisfied and identify new opportunities for growth and expansionII. Discuss two (2) segmentation approaches that Addison Lee could adopt when segmenting the market for 16 – 25-year oldsThe four major segmentation approaches include: demographic, psychographic, behavioural, and geographic Demographic Segmentation: example, life-cycle, age, gender, income and education Psychographic Segmentation: example, social-class, personality and lifestyles In this report, the focus will be on Behavioural and Geographic Segmentation:Behavioural segmentation: it divides the market into groups according to attitude, knowledge, response and use of the product by consumers If Addison Lee (ADL) adopt this approach, they will make more sales because the company will be able to determine where their products are needed, when and why so that they can divert their limited resources in a cost-effective way by carefully designing products and a market program to meet the needs of their customers). If not, the company will develop brands that will not meet customer needs resulting to lower sales and apparently lower profits or loss.  Therefore, using the behavioural approach will enable ADL to target many market segment and hence make separate offers for eachaccording to purpose, ability to pay, and personality for sales increase and a stronger market positionGeographic segmentation: is define as the division of a market into different geographical units such as cities, regions, countries, states, and neighbourhood By adopting a geographic approach, ADL will be able to develop products as well as their promotion sales effort and advertising based on the local needs of people in that area ). ADL should adjust prices continuously for increase in sales of their products to make profitIf prices are not differentiated to meet the characteristic needs of individual customers and situations in different regions or cities, the company will experience a fall or rise in sales in some areas and therefore lower overall profit or loss. On the other hand, if prices are adjusted to fit different localities the company will experience an even growth in all areas of operation.Task 4: Marketing mixI. Using the 7ps, Identify and describe Addison Lee’s current marketing mix using appropriate examples for each of the 7P’sProduct: is the range of goods or services a company offers to its target customerthe company products such as minicabs, taxybikes, coaches and private jets services must reflect the way customers think about them when compared to other competitors. Price: it is the value placed on the serviceCost of the service must be flexible, cheap and affordable for frequent use of services.Promotion: A way that the company inform its customers about the advantage of using their productsExample, off peak weekend fares, sharing ETA, personalised deals by email or text online, company app and website Place: is the people involved in making the products available to the customers Distribution channels ensures the product is available in the place it is neededExample, increase in the number of fleet drivers from 3,600 to 4,500 by ADL.People: the individuals involved in providing service for customersProcess: the set of activities which together produce customer satisfaction  Company staff should be rewarded, motivated, trained to deliver services to customers. Customer increase their purchases with companies with whom they have a strong relationship  Example, all their cars are fitted with 4G WIFI, different models of phone chargers, standard climate control tinted windows, flexible payment system of cash, card or Addison priority accountPhysical evidence: the environment in which the service is delivered and where the company and consumers interact including any tangible equipment that helps to promote the communication of the service Examples, company new logo and colour palette in yellow, black and slate, appearance of driver II. Recommend changes to the Product, Price and Promotion element of Addison Lee’s marketing mix (7ps) which will enable the business to achieve its desired objective, of 3% growth in their car service business by targeting 16-25-year oldsProduct: The company must always use vehicles that have comprehensive warranty, fully serviced with licensed and insurance, and equipped with modern technology installations to capture consumers lifetime values. Products must be attractive and readily available for use in the place and time needed for customers convenience Price: Addison Lee must calculate and forecast suggested prices its competitors will charge customers, and then set-up its own dynamic prices to allow the differences that exist among customers aged between 16-25 years, their location, type of service needed will help the company to dominate the market through lower costs and beat rival companies The company can also lower their prices and give discount to loyal customers who buy their product frequently Promotion: by using this tool effectively through advertisements, sales promotion, public relation, personal selling and direct marketing, the company can be assured of building-up a strong relationship with the target market with the aim of stimulating a dialogue that will lead to a better and profitable business both in terms of more profits from increased sales due to capturing a large share of the market CONCLUSIONTaking into account Addison Lees goals of wanting to grow the business by 3% by targeting a younger demographic of 16-25 year olds by June 2018, Addison Lee will need to conduct a market research and carry out extensive marketing mix procedures and adopt changes to their marketing strategies to reach their target audience.

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