A marketing mix highlights the combination of factors that can be controlled by the company to influence customers to buy the products or services offered by the company (Armstrong et. al., 2015).
These factors include product, price, place and promotion activities.
The product is the primary offering of the firm.
Price is the amount of money that the customer would have to pay in order to purchase that offering.
Places are forms of distribution adopted by the company
Promotion activities are strategies adopted to enhance awareness and generate excitement about the company’s offering.
Uber offers a taxi service .
This service allows users to book a taxi using a mobile application
The taxi would arrive at the location
Payment can be made by cash or through online wallet transaction
Three layers of product
CORE BENEFIT – a platform connecting customers who need a ride and drivers who are willing to provide rides
ACTUAL PRODUCT – a taxi service that can be booked using a mobile application.
AUGMENTED PRODUCT – user friendly mobile application. Cashless transactions. Drivers are given feedbacks. Car sharing/ car pooling. Car size can be selected at the time of booking (Uber Go, Uber x, uber black).
Product life cycle
Uber is at maturity stage.
The brand has already expanded to over 633 cities across the globe.
Uber tried to reach other countries but was banned in a few places
Opportunities of growth are minimum from here on.
Brand reach and positioning of uber is positive
Uber also has a large customer base
Uber has adopted a penetration pricing strategy.
This strategy includes price of a product being kept low in order to penetrate into a market (Martín-Herrán & Taboubi, 2015)
The low price attracts customers and helps in gaining a competitive advantage
Uber also adopts a dynamic pricing strategy
Dynamic pricing strategy includes changing the price of the offering based on demand (Banerjee et. al., 2015)
During peak hours, if the demand is too high, uber may surge the prices.
This allows the brand to fulfill increasing demand
The place aspect of the marketing mix essentially aims to highlight the place where the product is available and distribution channels adopted by the brand (Armstrong et. al, 2015).
Uber is present in over 633 cities throughout the globe
Uber creates a platform between drivers and riders
This platform is online and accessed by both the parties using a mobile application.
Therefore uber does not has a physical distribution center but it has a massive network of cars across the globe
Promotional strategies are adopted by businesses in order to enhance brand awareness and set the right positioning in the minds of customers (Singh, 2012).
Uber offers various discounts and offers to new and existing users of the brand in order to attract and retain customers.
Promotions help the brand is sending the brand’s message to the customer.
Digital marketing involves all the promotions done by uber on various digital platforms (Ryan, 2016)
Social media marketing include promotions through Uber’s Facebook and Instagram page (Tuten & Solomon, 2017)
Television advertisements are created for different regions. Uber attempts to use different marketing strategies considering the local sentiments and religious beliefs of people.
Discounts and offers introduced by uber are also promotion strategies
Print media ads are also creatively curated to target families and office goers.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Banerjee, S., Johari, R. and Riquelme, C., 2015, June. Pricing in ride-sharing platforms: A queueing-theoretic approach. In Proceedings of the Sixteenth ACM Conference on Economics and Computation (pp. 639-639). ACM.
Martín-Herrán, G. and Taboubi, S., 2015. Price coordination in distribution channels: a dynamic perspective. European Journal of Operational Research, 240(2), pp.401-414.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business and Management, 3(6), pp.40-45.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage. United Kingdom.