MKT410 - Case Study Marketing Environment PDF

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INTRODUCTION TO MARKETING (MKT410) CASE STUDY: THE MARKETING ENVIRONMENT

NAME OF COMPANY GRAB HOLDINGS INC.

TYPE OF BUSINESS E-HAILING AND FOOD DELIVERY

PREPARED BY NAJIHAH AMANINA BINTI MAHAT 2020174839

PREPARED FOR NUR SHAHRULLIZA MUHAMMAD

SUBMISSION DATE 23 JUNE 2020

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Executive Summary

Grab is a leading technological company that offers chauffeured rides transportation services varying from motorbikes, cars and delivery services in Southeast Asia, targeting both male and female varying from 18 - 50 years of age. It is discovered that Grab will have a competitive advantages over the competitors with efforts place into research and development of technologies that further enhance the current mobile application platform as well as many other factors that are elaborates in the report. This report describes about the Grab service marketing. This is contains the company profile, company analysis of macro-environment such as demographic environment, economic environment, natural environment, technological environment, political environment and cultural environment. Negative impact in macroenvironment and also recommendation.

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Introduction

A start up home grown out of Southeast Asia, Grab (formerly Grab Taxi) is a leading technology company that provides transportation and ride-hailing solutions to enable mobility across Southeast Asia. Established in 2012, Grab offers a wide portfolio of transportation solutions, ranging from a network of taxis (Grab Taxi) to a private car solution (Grab Car) to a two-wheeled solution to beat the traffic (Grab Bike).

The concept was envisioned by Anthony Tan together with cofounder Tan Hooi Ling, which became popular in Malaysia and eventually expanded into other countries in Southeast Asia. Anthony Tan and Tan Hooi Ling is classmate and attend Harvard Business School. In 2012, Anthony Tan launched “My Teksi” app in Malaysia (known as “Grab Taxi” in other countries) together with Tan Hooi Ling.

After that, Grab Taxi expanded to other countries such as Philippines, Singapore, Thailand, Vietnam and Indonesia. In 2016, Grab dropped the word “Taxi” from its brand to reflect its expansion in other transport segment. Grab (which will henceforth be called as such in subsequent mentions) as a brand will cover all its services: taxis (Grab Taxi), private car services (Grab Car), carpooling (Grab Share), package delivery (Grab Express), and food deliver (Grab Food) Now Grab has spread across 240 cities in 9 countries across Southeast and East Asian, Grab now operates in countries of Singapore, Japan, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Thailand and Vietnam. Grab is expanding rapidly around the region, to enable users and drivers with its mobile application to provide a seamless experience for moving people from one place to another

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Company Analysis of Macro-Environment

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Demographic Environment

Grab intends to provide the primary target with luxurious and comfort rides to consumers as their preferred the primary target market focus on the age group varying from 25 to 50 years old, both male and female that are middle to moderately high-income earners with the occupations of being selfemployed, working professionals, unemployed, and the retires. The secondary target market then focuses on the age group varying from 18 to24 years old, both male and female with the occupation as students, part-timers and working professionals.

Issues between driver and passengers were physical and sexual abuses. On 23 September 2016, a female passenger in Singapore was sexually assaulted by an elderly Grab Car driver after she fell asleep during the ride. The driver was jailed for 16 months the following year.

3.2

Economic Environment

With Grab providing employment to at least 2.6 million people across Southeast Asia, there is significant impact towards the driver’s countries. Unemployment will be reduced, livelihoods are managed and insured; it will lead to the stability of the country’s workforce. This will increase the buyer power of citizens and subsequently the revenue of the country. Also, with Grab’s encouragement for ride sharing, there would potentially be lesser requirement for cars, therefore reducing road congestion.

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3.3

Natural Environment

Food delivery starts developing strategies that support environmental sustainability. First, food delivery use sustainable alternatives for take-out bags, instead of plastic bags as an example use paper bags or biodegradable. Next, Use sustainable alternatives for takeaway food packaging something like paper, plant-based compostable or recyclable packaging. Also, use sustainable alternatives to replace single-use plastic cutlery, and other disposables. If cutlery is required, provide sustainable alternatives as an example use corn-starch or wooden cutlery. Lastly, no plastic straw for drinks.

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Technological Environment

Grab innovates technological offering and weaves them into the simplest process of a consumer requesting for a ride. Accessible in iOs and Android formats, the app lets the user send their booking request to the drivers. The app will then calculate which taxis are nearest to the passenger in which case the information are going to be sent to that taxi. Upon booking, passengers can access the driver’s name, plate number, photo, and phone number. In addition, the app conjointly a map that shows the driver’s real-time location as well as the estimated distance and projected time of arrival. The estimate fare is also shown once the passenger inputs their current location and desired destination. Buyers are searching for cheaper transportations options and Grab fulfilled this need. The application is incredibly important to Grab. It cannot function if the application goes down or suffers difficulties. The company should ensure everything is working, reliable and ready to go.

Issues about cancellation of Grab Food orders. Facebook posts of users based in the Philippines lament about intentional cancellations of Grab Food orders. In its statement, Grab urges users to use the app responsibly and stern penalties such as suspension will be charged to their account

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3.5

Political Environment

Grab drivers were technically working illegally as the Land Public Transport Act 2010considered it an offense to operate a public service vehicle without having an operating license, while driving a private vehicle. Based on the Malaysian Parliament, Grab and other ride-hailing providers weren't functioning under approved legal terms under the ministry of land transport. However, in late 2017, “Prime Minister Najib Razak’s Cabinet agreed to legalize ride-hailing services even as taxi driver associations protested, arguing that their livelihoods were threatened by the private hire services”. The legislation was followed by terms and conditions to be followed by Grab and its competitors. Such as periodical vehicle checks, insurance covers and more to assure the safety of consumers.

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Cultural Environment

Grab started out in 2012 with just 40 taxi drivers in Kuala Lumpur, and Grab helped them earn a better living through the Grab platform. As Grab expanded rapidly across the region in the years that followed, Grab helped to create more earning opportunities for more people in more cities. 4.0

Recommendation

Recommendation for issues between driver and passengers were Grab should provide a female driver for female passenger. In the mobile applications, Grab can provide a choice for passenger to choice the driver whether the passengers want male or female driver. This is to prevent incidents like physical and sexual abuses to happen again in future.

Recommendation for issues about cancellation of Grab Food orders were Grab should or may impose fines on customers or users who cancel orders as this can result in losses to the drivers and the Grab company as they put their money first.

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References

About Grab. https://en.wikipedia.org/wiki/Grab_(company)

Natural Environment Grab. https://www.grab.com/my/goinggreen/ Issues between driver and passenger. http://www.straitstimes.com/singapore/courtscrime/grabcar-driver-jailed-for-molesting-student

Cancel order. https://news.abs-cbn.com/news/06/06/19/use-grabfood-responsiblyapp-warns-of-penalties-to-those-who-cancel-orders

Malaysian

Digest.

(2017). Determinants of Tax Compliance among Grabcar in

Malaysia. https://www.ijicc.net/images/vol10iss11/101143_Hamid_2020_E_R.pdf

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Assessment

INDIVIDUAL ASSIGNMENT 1 (20%) Case Study on the Marketing Environment Submission Date: 23 June 2020

1. You are required to choose one (1) company/business organization. 2. The company can be either selling products, services, or both (local or international). 3. Identify the microenvironment forces that are faced by the company. 4. Discuss the impact of those forces towards the company (positive/negative impacts). 5. Recommend solutions for the company on how to deal with the impacts. 6. Cite any references to support your justifications (minimum of 3 references). 7. Your written report must not exceed 1500 words. 8. Please refer to MKT410_NEW ASSESSMENTS GUIDELINE

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