Uber: Adapting to Changing Consumer Preferences

(a) Background to the organization, UBER and the social marketing problem

The chosen organization for the research, UBER, is an American technology company which operates in different areas along with ride hailing services to the clients. The organization was founded in the year 2009 and since ten focused towards addressing the different changing needs and requirements of the customers (Sthapit and Björk 2019). The business operates on the basis of the changing needs of the customers while developing technologies towards addressing the different requirements and priorities of the customers. The change in the preferences and priorities of the customers from extensive consumption to sustainable practices has forced the organization to adopt new sustainable technologies. This evolution highlights the importance of comprehensive research methods, often benefiting from marketing dissertation help to better understand consumer behaviour and market trends.

The increased rate of global pollution and carbon emissions has been affecting the environment. Therefore, the organization has focused towards developing fully electronic vehicle services for the clients by the years 2040 through making the trips on zero-emission vehicles (Siagian 2040). The objective of the organization towards developing and implementing sustainable technologies has been appreciated and widely acknowledged. However, it has been witnessed that the organization has been encountering significant challenges in convincing the private hire drivers in London city on making purchase of fully electric vehicles for their private hire driving purpose.

Increase in carbon emissions and the governmental control over the different areas of operations in the business has been one of the major aspects that drove the organization towards making a shift to EVs. On the other hand, their environmental sustenance based responsibilities has contributed extensively towards empowering the business in making a dynamic shift of their operational cars to the EVs while attracting the attention of the sustainable customers. The government plug-in grants and the free of charge entry in the Ultra-Low Emission Zone (ULEZ) or the Congestion Charging Zone (CCZ) has been some of the major motivators for the organization in shifting their vehicle preferences to EVs (DAS and DB 2017).

(b) Situation analysis

The PEST assessment assisted in identifying the specific aspects like reduction in costs, the government support through grants and subsidies as supportive evidences for the increased urgency faced by the organization to adopt EVs. Again, the inclination of the consumers towards making sustainable consumption is potential towards supporting the business in adopting the EVs as their vehicles for service propositions.

(c) Stakeholder analysis

The stakeholders of the concerned organization would be specifically the Uber drivers, the owners of the vehicles, the management Board of the organization and the CEO. Naudé and Sutton-Brady (2019) opined that the identification of the different stakeholders supports an organization in including the same on a change project, as per their authority. The assessment of stakeholders who would be involved in a project supports an organization in identifying the audience, the tasks that might be delegated and the communication methods and tactics that might be applied in order to influence the active participation of the stakeholders in the different organizational processes. The Uber drivers are important stakeholders as the organization must ensure the technical knowledge of the Uber drivers related to the EVs while adopting the change in their organizational processes. On the other hand, the owner of the vehicles is an important stakeholder group as the business would have to convince the same on the different benefits of EV adoption while encouraging their active participation towards ensuring that the organization can fully implement the EV vehicles in their business model (Chang, McAleer and Wong 2018). The board members and the CEO =are mostly focused towards improving the sustenance and profitability of the organization. The CEO and Board members take decisions and issue requirements on the basis of which the organization operates. Therefore, the inclusion of the CEO and the Board members is an important aspect that might be considered by the business for ensuring its continuous growth and sustenance.

(d) Market segmentation and targeting

Target market 1

The primary target market of the concerned organization or their marketing communication activity would be specifically the owners of the vehicles. The identification of the primary target market of an organization supports the same in improving the content while targeting the audience perceptions (Decker and Stummer 2017). The organization must take the initiative of targeting the owners of the vehicles with the purpose of making the same aware of the different pros related to the adoption of EVs like fuel efficiency, reduced costs of operations and better return on the investments while complying with the legislative requirements. The organization would be targeting owners who are associated with the business above 2 years and are committed towards ensuring the growth and success factors of the venture. Moreover, the organization would be targeting owners who are return centric and are inclined towards making extensive returns on the investments. Lastly, the organization would be targeting the owners who have an aligned interest towards ensuring the environmental sustenance.

Target market 2

The secondary target market of the concerned organization would be clients and the customers who avail the vehicle services on a everyday basis. The age group of the target audience would be in between 22- 54 years of age and are holding an interest towards ensuring environmental conservation. Di Benedetto and Lindgreen (2018) opined that the identification of the secondary target audience supports an organization in positioning their agendas efficiently while ensuring the active participation of the audience in the different levels of organizational operations. In this connection, the concerned organization might take the initiative of making the target audience aware on the rationality for their change to the EVs and thereby encourage their active participation towards the change process. It has been observed that the organization has operated on the basis of the changing needs and priorities of the customers ever since its establishment. Therefore, making the chief target audience aware of the change and encouraging their proactive support would allow the business sin gaining a competitive edge over the existing market players.

(e) Marketing objectives

Marketing objectives play a major role in ensuring the effective functioning of an organization while leading the same towards achieving the common success factors for growth and expansion. Hurth and Whittlesea (2017) stated that clarity of marketing objectives supports an organization in maintaining a systematic flow of marketing operations while ensuring growth. Therefore, the current section would be identifying the marketing objectives of Uber in order to develop a clear view on their change plans.

To increase awareness by 10% among the customers and the vehicle owners on the adoption of EVs by the next 2 months

To improve the degree of customer and owner engagement by 15% on the adoption process of EVs that is being planned by the organization as a step towards reducing carbon emissions by the next 3 months

To improve organizational profitability by 5% within the next 8 months of its operations with the EVs

(f) Marketing mix/relationship marketing plans

Marketing plan for target audience 1

The concerned organization might take the initiative of devising different return based schemes and attractive propositions like payoffs in different public holidays and an increased return policy for the owners. The owners of the organization are specifically focused towards receiving better benefits and returns on their investment on the vehicles. The organization must devise certain meetings and sessions with the owners of the vehicles and make the same aware of the different benefits that the owners might receive through the adoption of EVs as their service providing vehicles. Grant (2019) stated that transparent communication with the stakeholders is an integral part of marketing which supports in maximizing the degree of collaboration and participation in the different areas of operations. In this connection, the concerned organization must take the initiative of communicating to the target audience through public meetings and online sessions on the benefits of EV adoption.

The activity might require the organization to invest a month for winning over the trust and commitment of the vehicle owners towards ensuring that they make a shift to EVs from their fuel powered cars. On the other hand, the organization must also take the initiative of providing the vehicle owners with attractive benefits and subsidy packages that would aid towards reducing the costs of operations or the maintenance charges for the owners while adopting the EVs. According to Huang (2018), utilization of attractive packages and propositions supports an organization in increasing the scope of their marketing activities while improving the degree of engagement of the stakeholders, contributing towards the success factors of the business. The different areas of change in the organizational operations are based on the effective functioning of the different systems while addressing the strategic needs and requirements.

The provisions for certain financial benefits like subsidies and maintenance coverage would support the organization in encouraging the active participation of the vehicle owners in their change agenda. Again, transparent communication acts as a vital point towards gaining the confidence and commitment of the stakeholders. In this connection, the concerned organization must take the initiative of developing efficient links of communication with the stakeholders which would contribute towards empowering the growth and sustenance based needs of the business. Therefore, the use of the marketing tactics and techniques of efficient communication would allow the organization in gaining a competitive edge and smooth implementation of the change in the business model.

Marketing mix for target audience 2

The concerned organization is focused towards addressing the specific needs and requirements of the customers. In the recent years, it has been observed that the consumption trends in most of the global markets, along with that of London has changed drastically. The increased awareness among the customers on the environmental concerns has led the same to make a shift towards sustainable consumption. Therefore, the chosen organization, Uber, must take the initiative of making their target customers aware of the unique initiatives that are being panned by the business for ensuring the environmental sustenance and reduce carbon emissions through the use of EVs. Mujanovic and Damnjanovic (2018) vstated that increased awareness among the target audience of an organization, specifically the customers, allows an organization in encouraging their active participation to influence sales. In this connection, Uber must take the initiative of reaching out to the customers through the use of a wider range of social and digital media channels along with their mobile application.

The use of a wider variety of media channels would allow the organization in improving their scope of reaching out to their target audience and making the same aware of the positive intents of the business towards ensuring environmental sustenance. On the other hand, the organization must also take the initiative of devising sales promotional techniques like limited time offers and discounts on a first ride of an EV to the customers. The offers and discounts would naturally attract the attention of their target audience while encouraging their active participation in the EV implementation program. Wang and Wang (2020) stated that limited time sales promotional techniques supports an organization in improving the participation of the customers in the different operations while ensuring the growth and sustenance of a business. The use of differentiated marketing tactics and procedures would be supporting the concerned organization in gaining a competitive edge while addressing the environmental concerns and standards that are being imposed by the governments. Therefore, the use of sales promotional technique and the different communicational media platforms would allow the organization in encouraging the active participation of the customers towards adopting EVs as their primary vehicle while reducing the carbon emissions from the same.

(h) Evaluation

The marketing campaign would be evaluated on the basis of the fulfillment of the KPIs. The identification of the KPIs and measurement of the success factors would allow the organization in developing an insight on the degree of their success while implementing the EVs as their primary ride sharing vehicles. The section would identify the KPIs that might be considered by the organization after the completion of their marketing program in order to evaluate the success factors

Improvement in participation of the vehicle owners in the EV program by 10% within the next 9 months

Increased number of rides made by the customers by 6% within the next 4 months

Increase in the profitability of the organization by 10% within the next year

References

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