Grab marketing strategy analyst

Group 2-MKT101 Marketing Principles (MKT101) Course: MKT101 LECTURER: Trần Đình Thành Group Vương Minh Thư-SS170433 Trần Hoàng Mỹ-SS170595 Lê Trần Tường Vi-SS170612 Lưu Thái Thành-SS170616 Trần Ngọc Trường Giang-SS170650 0 Nguyễn Gia Huy-SS170644 GRAB MARKETING STRATEGY ANALYST I.Introduction 1.Market trend and overview 0  “Ride-hailing” or "Technology motorbike taxi" are two services that we Vietnamese have relied on frequently in recent years Furthermore, these services can save both costs and times for passenger in moving, compared to traditional taxies “With Southeast Asia growing population and fast digitalization rate, it has seen a fast-developing online ride-hailing segment, which has a forecasted market value of 42 billion U.S dollars by 2025.” said by Minh Ngoc Nguyen Vietnam, which is also in this region, has become the most attractive market for ride-hailing companies.[5]  When it comes to the well-known "technology motorbike taxi" brand in Vietnam, we can't help but think of Grab - a simple, quick, and easy online vehicle booking application Following Grab's entry into the Vietnamese market in 2014 and its acquisition of Uber in 2018, the Vietnamese ride-hailing business has become crowded, with companies including GoViet, be, FastGo, Vato, Aber, MyGo, MLV, Go-ixe, Xelo, Ahamo, BAEMIN Many of these names have blurred during the last two years, and they no longer exist on the street Grab, GoViet, and be are the only three ride-hailing providers that now dominate the Vietnamese market.[2] 0 2.Company overview  According to Wikipedia, Grab (formerly known as GrabTaxi) is a Singapore-based technology company that provides car transportation and transportation services in Singapore and other Southeast Asian countries such as Malaysia and Indonesia , Philippines, Vietnam, Thailand, Myanmar and Cambodia [2]  Grab can be described as a new trend in Southeast Asian countries when it comes to transportation Customers can travel faster than taxis due to the application of technology in calling, but it is extremely safety compared to traditional motorbike taxis  Grab is currently growing up in countries and 195 cities in Southeast Asia More than 90 million devices are expected to have utilized this technology auto booking smartphone application More than million people use it regularly ad there are more than million drivers up to now Grab accounts for 95% of the worldwide motorbike taxi market 3.Product and service overview  Initially, when it just entered the Vietnamese market, Grab only had basic services such as: GrabBike, GrabCar, GrabTaxi… Since 2017, new services have been born as a way to compete with Go Viet, Bee…, can be mentioned as Grab to the province, GrabExpress, GrabFood and GrabHour.[2]  Grab implements its transportation service on the application provided by the company itself Customers can order vehicles by using its apps (motorcycle, car, taxi, delivery, food) Grab provides all services on mobile application platform This brand aims to help customers travel more conveniently And over time, Grab also almost expanded its services, creating convenience and speed for customers 0 Furthermore, Grab assists consumers with payment convenience in a variety of ways, including:  Cashing, GrabPay, GrabPay Credit, II Competitive and position analysis 1.Competitor analysis Overview Entering Vietnam’s market, Grab has main types of competitors:  Direct competitors: Baemin, Gojek, Bee,  Indirect competitors: traditional taxi services: Me Linh taxi, Sao Viet taxi, Comparing to direct competitors, Grab was the dominant ride-sharing platform in Vietnam in 2019, with 73 percent of the market share ( according to ABI research) and continuing to grow.While Grab has continually held a significant portion of the market share, other companies have expanded their portfolios in order to compete with the market leader  0 (Picture: wikipedia.org) Market share Ride hailing market share: Grab is leading in the Vietnam market Grab became the country's biggest ride-hailing platform, with over 70% market share Aside from Grab, the rest of the ride-hailing business was catered for by Indonesian Gojek, formerly known as GoViet, and Vietnamese newcomer Be Group While Grab and Be Group have both car and bike ride sharing options, Gojek only recently added auto ride-hailing to their repertoire in 2021 0 Food delivery: Vietnam has seen a growth in demand for services such as online food delivery in recent years.The COVID-19 outbreaks have increased the use of these services, especially grocery delivery, because dining out was not an option during lockdowns and stay-at-home orders were in place in numerous cities across Vietnam Revenue of online food delivery in Vietnam from 2017-2021 Grab Food is the most popular food delivery application in Vietnam, which account for over 30% in market share during Covid-19 period 0 However, Baemin has a lot of the highest discounts programs and promotions (accounting for 46.86%), ranked second is GrabFood(accounting for 17.86%); Although there have been many outstanding discount code activities since May 2020, Baemin still ranked 4th in the end During the Covid-19 season, GrabFood created a great association about safety, reliability and kindness during the epidemic season, with 55.04% being mentioned with related content, followed by Baemin, with 29.06% GrabFood and NowFood are leading the market in terms of food diversity, restaurants and freeship Baemin excels at bonding forms about convenient payment and many discount codes, Baemin and GrabFood are loved for their driver stories, community movement Strength:  Grab's transportation services are safe and of high quality  Drivers and automobiles can only work with Grab if they have been vetted 0  Grab accepts cash, cards, and top-ups (prepaid) as payment methods  Both the driver and the passenger may rate each other, offering feedback and increasing consumer safety and assurance  Bookings can be altered once they have been made  There is a double drop-off option available  The fleet consists of a wide range of different types of vehicles  GrabCars (4 and seats), GrabShare, GrabTaxi, and GrabCar+ are all available (Premium)  Grab provides transportation as one of its services, but it also provides food delivery, mobile/data loading, and freight services Weakness:  The incentives given by Grab to drivers are low  The system does have difficulties from time to time  It is difficult to make a reservation during peak hours  The fare was unjust during the rush  The unprofessional and unseemly actions of the drivers resulted in negative publicity  A firm has no control over its drivers' actions  Customers may feel uneasy if drivers frequently solicit for gratuities or have a nasty attitude, like in the case above Success factor Solving real-world societal problems The concept of Grab arose from the notion of tackling taxi service challenges, such as passenger safety and service quality, by developing a platform to link clients and licensed taxi drivers via an application Importantly, Grab's creator focuses on 0 the bottom (Tung, 2015) by beginning to utilize cash and accept card payments in early 2016, in contrast to Uber, which strives to serve high-end clients by giving UberBlack 2.Customer analysis Segmentations For people, Grab has excellent crowd adaptability 62 years old senior, on to the new cohort elderly, down to feeding children, women, young and old people can use the grab  Demographic Grab provides services for all ages and genders Customers with high or low income can use Grab services In addition, Grab has a business service called “Grab for business” which was created to help businesses grow Grab provides a unified digital platform to manage the day-to-day business needs of companies, - from travel, food ordering, or delivery, to providing gifting solutions/ promotions with GrabGifts vouchers to your company  Geographic According to TECHBIKE.VN, up to now, GrabCar operates in major cities ( Ha Noi, Ho Chi Minh, Da Nang, Khanh Hoa, Quang Ninh) and GrabTaxi service operates in more than 34 provinces, so if you travel or need to move by Grab in the above city, it is quite easy Grab has just announced new cities: Thanh Hoa, Vinh and Pleiku, bringing the number of GrabFood operating cities to a total of 18 cities across Vietnam  Psychographic To attract customers, Grab aims at a discount strategy for users who often use food ordering service, calling cars, In order to turn them into familiar customers, understanding the psychology of customers who want an affordable price with many incentives and good services, Grab has continuously launched 0 many promotions and points to stimulate customers behaviour That helped Grab become close and receive the support of the people Target segments or customer portrait Grab’s target segment is the price-conscious mass market that includes middle- and lower-income customers Differentiation and positioning strategies  Product Differentiation Since its entry into Vietnam in 2014, Grab has become the leading super app in the country, having established pole position in food delivery and ride-hailing amongst consumers while Moca, Grab’s strategic partner in payments, is amongst the top leaders in digital payments Catching the explosive trend of digital, Grab started to invest in the growth of ride-hailing, food, delivery, shopping, and online payment applications on mobile phones Specifically, GrabBike, GrabTaxi, GrabExpress, GrabPay With the motto of sticking to the needs, following the wishes of customers, Grab forever updates and develops its services much earlier than competitors  Positioning Grab is positioned as a popular company brand, focusing on reminding everyone to remember grab when booking Grab has a distinctive green colour, the colour of this brand covers from the brand identity to the driver's uniform to help users easily detect grab 0 III Marketing strategy analysis Product and Service strategy  Grab appeared in 2014 in Vietnam and the varieties of Grab’ services such as GrabTaxi, GrabCar, GrabBike and later GrabExpress and GrabShare, compared with others such GoViet, be, FastGo, Vato, Aber, MyGo, MLV, Go-ixe, Xelo, Ahamo, BAEMIN and so on  Based on the International Journal of Tourism and Hospitality in Asia Pacific, Car services and food delivery are two of Grab's distinctive services A Grabcar is a mode of transportation that transports passengers from one location to another The goal of a Grab car is to meet the demands of every passenger  Grab is always improving their service quality and on 10 July 2018 in Singapore, Grab unveiled Grab Platform, the first super app for everyday life in Southeast Asia, as part of its open platform strategy, which will provide faster services like fast food delivery and Grab has a large number of cars, popular in locations, making the customer's booking process easy and quick For example, The level of revenue in 2020 was nearly double about food delivery , in comparison with years 0 ago and the projections will increase significantly  The picture shows Grab's meticulous services, customers have many choices in choosing Price strategies  Followed by reporting by the Wall Street Journal, Uber has agreed to sell the majority of its Southeast Asian operations to Grab in exchange for 20-30 percent of Grab's stock  When entering the Vietnamese market, Grab had to face many brands such as GoViet, be, FastGo, Vato, Aber, MyGo, MLV, Go-ixe, Xelo, Ahamo, BAEMIN and so on , so Grab aimed at affordable segmentation and many more offers, discounts Moreover, Grab has many new features as well as customers knowing exactly how much they have to pay before getting in the car and driver's information for residents in order to trust Grab 0 Here is the price list and offers of Grab compared with other brands Grab's price is not too cheap nor too expensive compared to the Vietnamese market According to the General Statistics Office, the average monthly income of employees is 5.7 million VND As a result, Grab is more suitable for Vietnamese people's income Moreover, grab has many promotions, sales, discounts for residents per month or even per day This photo proves that the more you go, the further you go, the more promotions will get 0 Based on Grab's official website, Grab also has other promotions for low income residents such as, with journeys under kilometres, Grab will support both customers and partners for a cost of 10,000 VND for customers and 50,000 VND for phones at peak hours Place strategies  Distribution channel is an important factor in bringing products to customers The Grab system has diverse forms of distribution, including direct and indirect Customers can find Grab's products/services by downloading apps on the App store or Google play easily and quickly 0  With the continuous development of digital technology and mobile devices, when in the modern world no one can be without a smartphone, distributing products via mobile applications is the choice very correct choice In addition, you can easily find a Grab driver on the road in commercial, entertainment and central areas when needed So much so that there are customers who commented that "everywhere you go, you see green" of Grab Grab's operation area covers many provinces and cities in Vietnam  It is known that Alibaba is preparing to invest billion USD in Grab, this is considered the biggest investment of this group in Southeast Asia since acquiring Lazada in 2016  Not surprisingly, Alibaba is looking for new investment opportunities in Southeast Asia Grab has 187 million users as of June 2020 and also provides many services in addition to ride-hailing services, such as delivery, food ordering, electronic payments… 0  With Grab and Lazada working together, Alibaba will likely continue its plans for Grab Because Lazada and Grab have integrated their logistics, with Lazada leveraging GrabExpress's network of delivery partners to expedite orders for customers Meanwhile, Grab's presence on the Lazada application will contribute to speeding up the process of building Grab's "super app" All of this is beneficial for Alibaba when it already owns Lazada and is about to contribute capital to Grab Promotion strategy  As for Grab's marketing strategy of mixed promotion (Promotion), Grab focuses on implementing creative advertising campaigns and taking advantage of social media marketing to draw in customers and increase brand awareness 0 Marketing campaign Because Grab's audience is especially adolescents, the corporation focuses on creative marketing campaigns that are near customers Take the brand's Star Wars campaign, as an example The campaign may be a good cooperation between Grab and Disney geographic area to market the movie "Star Wars: The Last Jedi" - a movie that's loved by an oversized number of adolescents This has helped Grab connect with its target market more Leverage social media marketing Leveraging social media marketing is additionally a marketing strategy of Grab Grab uses social media platforms like Facebook, Youtube and Twitter to capture the target market audience, increasing the notice of Grab's brand through shared posts As an example, Grab has created a hashtag community for consumers to share and interact with, telling about their experiences with Grab, encouraging constructive feedback to enhance service quality 0 Besides, Grab also understands the trend of youngsters on social networks For instance, understanding the recognition of Rap Viet on social networks, Grab and Rapper Suboi - the primary female rapper of Vietnamese rap have collaborated during this campaign Taking advantage of the warmth that the program about Rap is being discussed frequently, Grab quickly fixed the trend and launched a very right campaign IV Conclusion and Recommendation Conclusion The company is developing supplementary products and services (such as investing and personal assistants) to meet the needs of its customers 0 Consumers already use the primary app daily, which is a major advantage of the super app model Grab, for example, does not need to spend millions of dollars on marketing when it launches a new service like expedited delivery The service can just be offered through the mobile app Grab’s customers have also become used to the company’s quality services Consumers are, therefore, more likely (at the very least) to try out a new product if one is introduced Grab will either deliver the product or service internally or partner with another company, as it does with its insurance products Recommendation There are a few recommendations for Grab to improve and deliver the best version to grab heavy traffic of customers Most importantly, Grab should improve the Telematics apps, which are a combination of machine learning and predictive analytics This app can identify unsafe driving habits or any problems that come from vehicles Furthermore, Grab should also fix the price to make sure the customers will not choose other competitors such as Gojek and Mula It is good if the price is fixed and cheap compared to other competitors Another considerable fact can be providing users with secure and safe rides Grab should make sure the customers feel safe and trust the drivers by showing the driver’s details such as name, phone number, and plate number Furthermore, they shall provide more flexible payment methods such as cash, credit card payment, GrabPay (OVO), E-Wallets, and online banking As a result, customers can pay the fare more easily and quickly Furthermore, they must accept cash, credit card payments, GrabPay (OVO), E-Wallets, and online banking Customers can now pay their fares more easily and quickly as a result 0 References [1] Luân T (2020, July 6) Căng thẳng thị trường gọi xe công nghệ nửa cuối năm 2020 Báo Thanh Niên Retrieved March 3, 2022, from https://thanhnien.vn/cang-thang-thi-truong-goi-xe-cong-nghenua-cuoi-nam-2020-post971699.html [2] Crm A (2022, January 20) Phân tích chiến lược Marketing Grab Việt Nam chi tiết MISA AMIS Retrieved March 3, 2022, from: https://amis.misa.vn/28747/chien-luoc-marketingcua-grab/ [3] Reputa.vn (2020) Vietnamese food delivery market 2020 Retrieved March 6, 2022, from: https://apidn.reputa.vn/blog/upload/files/b16c2ad7-510d-46bf-9ef0-4e9324a4446e.pdf [4] Statista.com (2020) Vietnam: online food delivery revenue 2017-2024 Retrieved March 6, 2022, from : https://www.statista.com/search/? q=revenue+of+online+food+delivery+in+vietnam&qKat=search&newSearch=true&p=1&activeTa b=statistics# [ Accessed 28 Feb.2022] [5] Trinh, K (n.d.) Chiến lược marketing 4P Grab đánh bại đối thủ Uber thị trường Việt Nam Cộng Đồng Digital Marketing Retrieved March 6, 2022, from: https://congdongdigitalmarketing.blogspot.com/2018/04/chien-luoc-marketing-4p-cua-grab.html [6] Lim, C (2018, March 12) Would Uber exit from Southeast Asia leave a ride-hailing monopoly in its wake? The ASEAN Post Retrieved March 6, 2022, from: https://theaseanpost.com/article/wouldubers-exit-southeast-asia-leave-ride-hailing-monopoly-its-wake 0 [7] Grab Vietnam (n.d.) Quy chế hoạt động Điều khoản sử dụng Grab VN Retrieved March 6, 2022, from: https://www.grab.com/vn/terms-wip/ [8] Khánh N (2021, August 21) Doanh thu Grab: Mảng giao đồ ăn năm mang gần 900 vietnambiz Retrieved March 6, 2022, from https://vietnambiz.vn/startup-bang-goi-xenhung-giao-do-an-moi-la-mang-kinh-doanh-chinh-cua-grab-moi-nam-mang-ve-gan-900-trieu-usddan-dau-tai-5-nen-kinh-te-lon-nhat-khu-vuc-2021081418343631.htm [9] Tuyền T (2019, June 1) Chiến Lược Marketing Grab ATP Software Retrieved March 6, 2022, from https://atpsoftware.vn/phan-tich-chien-luoc-marketing-cua-grab-chien-luoc-marketingmix-dinh-cao-giup-grab-dung-dau-viet-nam.html [10] www.statista.com(2021 June) Ride-hailing market in Vietnam - statistics & facts Retrieved March 7,2022, from: https://www.statista.com/topics/8081/ride-hailing-market-invietnam/#topicHeader wrapper [11] Báo diễn đàn Doanh Nghiệp (2020, November 29) “Ẩn số” liên minh Grab - Lazada Đào Văn Ngọc, Thiết kế web http://finalstyle.com Retrieved March 6, 2022, from https://doanhnhanmoi.vn/an-so-lien-minh-grab-lazada-n25977.html? fbclid=IwAR2p2Pj6T3m7zm2ECz7Zm44DUa8Pc8x4-a2RNzdIRNdm5nu1CF3l6W61Plw 0 0 ... analysis Product and Service strategy  Grab appeared in 2014 in Vietnam and the varieties of Grab? ?? services such as GrabTaxi, GrabCar, GrabBike and later GrabExpress and GrabShare, compared with... GrabBike, GrabCar, GrabTaxi… Since 2017, new services have been born as a way to compete with Go Viet, Bee…, can be mentioned as Grab to the province, GrabExpress, GrabFood and GrabHour.[2]  Grab. .. adolescents This has helped Grab connect with its target market more Leverage social media marketing Leveraging social media marketing is additionally a marketing strategy of Grab Grab uses social media