Ingogo Company: Overview, Revenue, Partnerships, And Competition - Essay.

The situation analysis is reviewed extensively in this book. Forecasts and/or planning assumptions for variables for the various components also may be included. This involves prognoses of variables such as macroenvironmental factors, market data, and competitor behavior. For variables for which no prognoses were made, the assumptions about future development should be provided. These assumptions should be defined as specifically as possible. For example: the assumptions for the next year are:

• Economic growth of 2 percent.
• Inflation of 4 percent.
• No reaction from competitor G will follow.
• No increase in excise duty will occur.
• Costs of raw materials will remain constant.
• Market demand will grow 5 percent.

Financial understanding is a very important component of the marketing plan. In this part the following financial indicators are described:

• The required budgets: budgets for sales promotion, sales expenses, research, product development, and so forth.
• The predicted expenses, revenues, cash flow, and profit; these predictions have been used at an earlier stage during the analysis of shareholder value.

The SWOT analysis and SWOT matrix form a summarizing description of the situation analysis and provide a starting point for strategies.

Financial Understanding

Ingogo company is a firm under the industry of Taxi booking and logistics based in Australia. It majors in online bookings and payments of taxis. This company was the first in the country to offer transportation services, it provide their clients a fixed fares that includes price commissions. Taxi drivers process prices using the company’s customised android application software. The company currently offer services to Melbourne, Adelaide, Brisbane, Sydney and Perth.

Hamish Petrie is the founder and also the currently CEO of the company. The headquarters is based at Sydney, Australia.

Transport network and payments by used of mobile has boosted Ingogo to accumulate a total revenue of $14 M in series C subsidy that values the company at nearly $ 100 M. out of the total revenue raised , $ 4.6 M was raised by equity-crowdfunding platform venture crowd, which make it the biggest Australian crowdfunding that has ever been raised (Bilgihan, Nusair, Okumus & Cobanoglu, 2015)

According to the company co-founder, the money shall be used to market for the newly created taxi booking application, and also to expand the market in Perth, Brisbane and Adelaide, this money was based on $ 70 M pre-money unadulterated valuation. Once the share options which the company did not want to disclose are saved in the account, the valuation would rise into the $ 100 M mark.

In the month of August this year the company was forecasting on $ 150M worth of expenditures for the 2015/2016 financial year. It’s on its way to fall short on their set target of $ 140M, but it is above the goal which was laid down by investors of $ 130 M. according to the evaluation from recent data for Macquarie Bank Taxi Tracker, Ingogo has been ranked to be the third largest company that apply cab mobile payment space. This has helped the company to grow its market share from 8.7% in October 2015 to 12 % in February 2016.

Ingogo has partnered with Xero Company to provide a portable accounting and payment platform that is aiming medium and small businesses. Its only initial days for the part of business that represent only a minimum fraction of payments that the company processes, with the awesome majority from taxi payments.

Majority of Ingogo’s revenue are from taxi business, the company is now on pilot phase, the company have learn many things from the pilot and now it is in the process of incorporating those into the application platform (Tripney  Roulstone, Vigurs, Hogrebe, Schmidt  & Stewart,2015)

Although the company still waits for influx of revenue from the new business-focused services, it has already started to list on the ASX in 2019, rather than the current year. The company want to exploit the value of the present shareholders and they already have a quite number of initiatives that were developed in the past six to eight months. For instance, the partnership with Xero and the recent corporation with Concur that is partnering with nearly half of the 500 biggest companies in Australia. The company actually is looking forward to seeing fruitful results that come from partnering with this companies.

Ingogo Company: Overview

Over 5000 taxi drivers in Australia use Ingogo, with over $200 M payments go through the company platform every year- around 15.5 % of the country’s booking market. Ingogo takes a fraction of the payments and also the booking fee.

• Fixed fares – drivers and passengers benefits from the company Fixed fares. Pre-authorised fixed fares and the compulsory payments by the use of card means that the clients always know their fare upfront prior to booking and they are guaranteed exact payments stated regardless of any traffic conditions. There is price surging and no extra charges, Ingogo fixed pricing take uncertainty out of what the customer ought to pay.
• Safety- safety is a paramount crucial to Ingogo. The company employ drivers only after going through all the screening process for criminal history and also they have to undergo vigorous training.
• Convenience- booking are easy and fast, it is made possible by the use of the company’s website or mobile application. Passengers may book their travel up to 2 days in advance, with a fixed price.
• Professional driver training- all drivers are trained to know all the streets in the city, the drivers are tested to determine if they qualify to be part of Ingogo drivers. Drivers are never limited to driving customers to their destination by the use of GPS, although GPS is helpful it makes customers focus a head and thereby preventing potential issues that might come up.
• Competitive business model -Ingogo give their drivers start up bonus, refer friend bonus, commission on a rank and also hail jobs. The company encourages optimum level of clients’ services through their incentive and penalty plans. Drivers are greatly awarded by using the companies system. They are also penalised if they don’t follow the standards required for instance if they scratch a booking they are charged $ 10 for bridging the contract and $ 50 for cancelling an airport booking (Migdadi, Dado, Safadi & Shadid, 2018)

Ingogo booking app has the following features

• Auto generate receipts
• Automated reconciliation
• Real time reporting and tracking
• Visibility of all employees- all drivers and clients are monitored by Ingogo team
• The app is in compliance with the GDPR standards
• Excellent performance- the application is fast and does not keep clients waiting
• High security level- data privacy is highly protected

Ingogo face a stiff competition from Artesian, Uber, Mobius and Sydney Seed Fund.

Artesian Capital Management- it has been the major rival to Ingogo, the company was founded in the year 2004 and its headquarters are found in Fitzroy, Victoria. The company operates in various Financial Industry, it has 150 employees more than that of Ingogo (Luca& Zervas, 2016)

Mobius Capital venture – this was founded in the city of Colorado in the year 1996. The company competes in banking investment and also brokerage industry. Mobius has 120 fewer employees compared with Ingogo (Li & Chen, 2016).

Sydney Seed fund- it was founded in the year 2013 and it is based in Sydney, New South Wales. The company generates income of $ 3.2M more than that of Ingogo.

Uber Technologies- is a taxi cab, peer-to-peer ridesharing, bicycle-sharing, food delivery and transport company based in San Francisco, California. Unlike Ingogo which only operates on a few cities in Australia, Uber operates over 700 metropolitan areas globally. Its platforms is accessible through the companies’ websites and mobile applications (Gharib et al, 2018)

Strength

The can has built three crucial strengths. These are:

• Innovative services- the companies offers remote taxi booking which is convenient to their customers.
• Security- the use of mobile application and the website is very secure to customers so far no security issues has been reported.
• Pricing- Ingogo pricing is very cheap compared to other companies like Uber which charge slightly higher prices.

Highly reliance on manpower- the drivers play a crucial role in the company and therefore the image of the company depends so much on the behaviour of the drivers. These situation is uncontrollable by the company (Ervural, Zaim, Demirel, Aydinb & Delen, 2017)

High reliance on Internet- Ingogo relies on internet connectivity to develop and expand itself. This a problem to the company on areas that experience low internet connectivity (Kardefelt-Winther, 2014)

It gathers only to high tech individuals- the mobile app and website is very useless to be with no digital literacy (Blockeel, Drakopoulos, Santos-Ribeiro, Polyzos & Tournaye, 2016)

• Increasing in internet penetration- Australian government has emphasise on the use of technology which make many people in the country to be familiar with what Ingogo is using. (Lin, Kuo, Lee, Sheen & Chen, 2014)
• Displeasure with messy market- many customers are not satisfied unorganised taxi available market which make Ingogo to take advantage of that.
• Rising in disposable income- with this clients are always ready to spend more on convenience
• Alternative transport- Ingogo has launched air travel booking in various countries.

• Low margins- Ingogo may engaged drivers through the day but they earn less profit and thus  it might be swayed away
• Rebellion from common market- the unorganised market can revolt against Ingogo because they are taking away the butter and bead of drivers.

In relation to introduction of newly updated company website and mobile application, the company main issue is its capability to create a well stared brand name that is linked to reasonable positioning. The company would invest more on market strategy to empower a striking business image that projects quality, value and innovations. The company also ought to measure response and awareness so that it can adjust more marketing efforts (bull et al.2016).

Ingogo market strategy would try to bridge the services and their clients. The four p,s  that is that is the product, price, promotion, place among others would be applied in this case (McDonald & Wilson,2016)

The company intends to choose effective form of advertising in order to reach its target audience, so it would be crucial for it to develop a market plan.

The figure below shows the market strategy map

The market plan would enable the company to create services, communicate and market their products and services. By using a investigation on segments of target clients. The market plan would be written and once it is developed the budget is set up and promotional campaign is initiated (Niederwiese,2016)

Revenue and Funding

The company has rolled out cap services accessible through mobile application and website platforms. It has encourage more Australian to adopt new technology to book a taxi.

The campaign has been pass across the outdoor digital and radio stations in Sydney and it involves an invective advertising of a 1300 the company hotline, occasionally the number to you contact in case you need to book a taxi (Nesamoney, 2015)

The promotion was developed by a special innovative agency group in corporation with Match Media which act as the media agency, it launch a group supporting on public relation and communications. It primarily focused on metro region in Sydney that aims at encouraging the 78% of the residents who are still not able to use taxi application to join Ingogo for easy, fast and convenient taxi ride (Singhal & Brown, 2018)

The creative of this campaign is also running on billboards and cardinal signage in big traffic distinct location and structures some of the country’s high gifted elderly models (Wuu & Koterba Douglas)

The company have tried to make the booking by use of mobile app and websites which is very versatile, convenient and value added modes for public use. The company’s market strategy is focusing on hand-free actions of multiple connection with clients and information capabilities that make the company unique from its competitors, moreover the company is planning to introduce driverless taxis that does not require manpower to operates. (Baru & Bharadwaj, 2017)

Product strategy - The mobile booking app would be equipped with more features to gather all the information that may require by clients, the app would be compatible to all android phones. (Wei, Samiee & Lee, 2014)

Pricing strategy

The Company is planning to reduce travel fares by 20% next year, there would be also 100% compensation if someone would not be able to be offered services after paying for it (Matsushima & Khanna, 2018)

The company integrates all messages in media and emphasize on the brand and major features of their services. It has examine on media consumption designs until it covers all of its main metropolitan areas. Ingogo mobile application has a demonstration example on how to use to book for a taxi online for the starters the guard is also available in the company’s website (Grant, 2016).

By the use the market research the company will trying to identify specific features that the company’s target market division’s value. Feedback from the client’s experience, focus groups, and surveys will help the company develop their set standards. Ingogo measure and analyse their clients attitudes towards the competitive services that are available in the market. Brand research awareness would help the company determine their effectiveness and efficiency of their messages and media. Lastly the company will use their client’s satisfaction test to gauge their market reaction (Mayer, Borges, & Simske, 2018).

The chief market officer have overall responsibility to all market accomplishments, the figure below show the marketing organisation structure. The structure consist of eight market organisation. Ingogo have employ country wide to handle promotion and marketing campaigns and the public relation exertions (Ashraf, Gershman & Howitt, 2017).

Partnerships and Services

Ingogo will be introducing various trade promotions January next year. The following are some of action programs summaries that the company will employ during the first four months the set market plan in order to achieve it main set objectives (Isaranuwatchai, Bayoumi, Renahy, Cheff & O’Campo 2018).

• January – the company would launch a $300 000 promotion campaigns, with these the company is targeting to educate potential customers on how access their services remotely by the use of the mobile app and the website customers portal.
• February- the company would start a comprehensive advertising campaign through radio, television and by the use of u internet ads.
• March-   as multimedia publicity campaign endures concurrently, there would be consumer sales promotions like contest, and the clients would be give chance to compete by posting clips on the company’s website on how they frequently use Ingogo services in an innovative and unusual method. The best performing customers would be rewarded accordingly.
• April – the company would initiate a reward bonus for any new member who install Ingogo’s application in their phones, there would be also referral bonus for the current customers in case they invite a friend successfully into the company.

Next year’s sales revenue for Ingogo 2000 is expected to be $100 million, with average income of $ 120 per unit and the variable cost per unit is $ 80 for 400,000 units. The company anticipate to get an increase in revenue by the end of next year (Peers, Heerde & Dekimpe, 2017)

Ingogo is planning a tight control measures to monitor very closely efficiency and effective customer satisfaction on their services. The control would enable the company to react instantly on any problem that may arise. Given the current market instability, the company is working tirelessly in developing contingency plans to address the current changes like the issue of new technology and the nature of competition (Grzegorczyk, 2016).

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