ADVANCE CONSUMER BEHAVIOUR

ASSIGNMENT 3

JADEJA_PRINCY_S5067025_ESSAY
INTRODUCTION
OLACAB in an Integrated Marketing Communications (IMC)-campaign designed for customers
who seek for car services in their region. I have selcted this as my online case study as it is one of
the fastest growing cab services in its industry. The whole credit of its demand and growth is all
based on the consumer needs and demand for such scenario. I found it very intersting as its one
of the fastest growing industry in India. This OLA services started around four years back seeing
the market gap for the customers who found problem in travelling from place to place. the
founder says 'I had once rented a car for a weekend trip with friends to Bandipur from
Bangalore. The driver turned out to be a cheat. He stopped the car in Mysore en route to
Bandipur and asked to be paid more than what had been decided earlier. He was so rigid and ill
mannered that we had to leave him there and continue our journey by bus. This incident led to
the business idea by use of technology which could offer more better service, more predictable
service, ranging from easy car rental bookings to quality assurance and proper service by cab
drivers.

The company has its main focus on day to day business and communiction on the expected
profeesion, and the passion towards the job meeting customers needs. Ola first started in
mumbai, now moving fast across 65 cities in India, and is a very fast growing business. Bhavish
Aggarwal (CEO) and Ankit bhati are the founder of this new innovative business. The need as
defined is ' an internal state of tension caused by disequillbrium from an ideal or desired state'
(SLIDE13 MODULE 4.1). that is moving from the present siyuation to an Ideal situation that is
demanded.

GENERAL DETAILS

Parent Company: ANI Technologies Pvt. Ltd

Name of company:- olacabs

Category: Service provider for taxi hiring (Aggregator)

Sector: Transport & Logistics

Tagline/ Slogan: Chalo Niklo, Its the smartest way to travel

USP: Standardized customer experience & Price transparency

Date of Incorporation:- 3 december 2010

Strategies and Approach

The ABCS of a consumer is the main thing that influence the working of any business. ATTITUDE
towards the need of any service, Like the gap between transport facilities a consumer needs was
well understood by the founder of Cab services. BEHAVIOUR of a consumer in adapting the
change in current working system, like no more waiting and waving hand for transportation,
instead moving with new approach of 'CHALO NIKLO', the slogan of ola cabs. COGNITION of each
individual to acquire knowledge of any new product and service, think rationally on it, and react
after thinking process.(SLIDE 10 MODULE 1).

General Pricing Strategy

1. Standardized rate

The standardized rate of Ola Cabs can be defines as the minimum amount a customer pays for
the journey. The price varies from the type of cab you have booked for your journey. It is applied
on the number of kilometers that you travel.

2. Rate per km

The rate per km of the cab is implimented according to some geographic markets and the
average journey that you plan with ola. Price varies from city to city depending on tier 1 or 2.

3. Ride time Charges

Ride time charges includes both the travelling time as well as the wait time. Wait time charges is
Rs 1 or Rs2 depending on the city. It is the average duration of travel of a customer.

4. Peak time charges

Peak time charges are generally applied across all segments of Ola. It is the extra value they ask
for at peak hours, ranging from 1.2x to 4x depending on the city and the cab you book for. It is
based on algorithm and also the customer is informed about this before he books the cab.

Method of payment

For the convenience of the customer ola has introduced different methods of payments. And
one can choose the mode of option they want to.

0 cash

1 Ola money

2 Coupon codes
 3 Part payment

ADD SOME LOGO AND PICTURE HERE

Creative elements

The creative part of the strategy has following eight elements supporting the overall strategy.

(a) Attention campaign Yellowish

b) Resolving Mystery

(c) Indias Next Top Cab-Driver

(d) The Yellowblog and Facebook

(e) Rate the pros

(f) Yellowcard

(g) Mobile apps

5 Cs of Marketing for OlaCabs

Company

Mission: a marketplace for all types of cabs and rental cars.

Vision: We are a young and energetic company based in Mumbai. Nothing excites us more than
using technology to bring the same efficiency and customer experience to the car rental industry
that you expect from flights!

Goals: short-term goals for providing best rental car services in India.

Ola provides different types of cab service that has its range from economic to luxury travel. OLA
provides three different tiers of car service according to different budgets of customers: sedan
the luxury models, Mid range models, Ola Mini models which is priced on same level as to auto
rickshaw. . It claims to have an average booking of 150000 bookings per day and has command
over 60 percent market share of India. The main TRP of ola is the transperancy it keeps with the
customers regarding its booking, rentals, and services. It also provides promo codes and gives a
good amount of discount in various segments. When we find that Auto Unions runs on strike ola
provides cabs at INR 13 per km.

COMPETITORS

Meru Cabs
Meru Cabs is one of the largest taxi operators in India and is also third largest taxi operators in
the world in terms of Assets Ownership. This company used to follow Asset ownership model
before but now follows aggregation model. This company has divided its brand in 3 categories:
Meru flexi, Meru Genie, Meru EV.

Uber

Uber was officially launched in India in October 2013. It is posing real challenge to traditional taxi
market. This company is also recruiting around 20000 drivers each month around the world. It is
expanding its market day by day. It does not own cars, instead uses state-of-the-art technology
to connect drivers and passengers through a mobile application for a fee.

Taxi For Sure (TFS)

Taxi For Sure, it was founded in 2011 by Aprameya Radhakrishna and Raghunandhan G to tap
Indian Taxi Market. However, it was later acquired by M/s ANI Technologies Pvt. Ltd. (OlaCabs).
Taxi for sure continues it work independently providing strength to its parent company.

Context

Ola is very much in controversies these days due to a rape case reported by a 27 year old
women who booked a cab through app on 5th dec 2014. This brought about a negative impact
on consumer experience and brought a ban on aggregation. This brought uncertainity to
investors who invested in millions to set up the business. But ola responded well with the
situation by its innovative initiative of 'women only' cabs, focusing on safety for women by
launching Pink Cabs for women driven by women. . This was a niche segment which dominated
the market, along with panic buttons for emergencies. Motivation arrived from ' needs wants,
drives, and desire of an individual that lead him or her towards the purchase of products or
services or ideas. The motivation may be Physiologically, Psychologically or enviornmentally
driven' (SLIDE 4 MODULE 4.2)

Collaborators

The critical part of game is the 'Driver'. As all the taxi servies compete for the same consumer
pie. The CEO says that company is empowering its services by helping drivers be the
entrepreneur in themselves. They work with some leading financial institutions who provides
loan to drivers to buy cars. Now moving to new heights ola has launched a new and a very niche
service called OLA AIR. Here they provide a chopper service to the customers who wants to
travel around and have a view of the city, or travel somewhere to other cities for work or leisure
or meeting or meet a dearone. They provide with door step service and also can help you to take
you to the nearest spot possible by ola cab. As defined ' the extent to which consumer is
uncertain about personal consequences of buying, using or disposing of an offering' is perceived
risk ( SLIDE 23 MODULE 4.1), ola took the risk understanding the market gap and is happy to see
satisfied customers. Ola Food is the service they provide as well, it means you can also book ur
meal during a chopper ride while you book your ride.

Customers

Customers personality towards a product or service can be defined as ' Distinctive patterns of
behaviour, tendencies, qualities or personal dispositions that make one different from another
and lead to a consistent response to enviornment stimuli' (SLIDE17 MODULE 3.2) The target
audience of OLA is every Tier 1 & 2 resident of the city,and other demographic and
psychographic differences as stated below.

ADD TABLE(SLIDE 6 MODULE 3.2)

MARKETING IMPLICATIONS
Market and demand for taxi is heating up in India in past decade. Money flow by investors is
approximated to INR 2400 crores in past 4 years. Ola has raised over $210 million from soft bank
at a valuation of $1 billion for expansion of business. And also other competitive companies are
doing the same process. Looking at a broader picture we can see that each player is trying to
aggressively expand their market and is raising funds from differnt means. The aggregators like
Ola Uber and taxi for sure have yet covered only 3 to 4% of total market in India and they yet
have a huge opportuniy to expand their business. Other important characteristics and attributes
for the brand will be generated and communicated in the campaign. At the end the colour Yellow
and the brand OLACAB will stand for professionalism, partnership and passion.

Media

May it be ola or other cab services, the overall strategy and objective would be focused on three
groups.

(a) Point-of-purchase- Analysis shows that a customer is least concerned on the brand of the taxi
they use. Instead they decide it on basis of point of purchase. The used media vehicle therefore
will be the car itself with four concrete advantages:

V (Visibility): The colour yellow is selected to attract attention of customers and

supports the brand to differntiate from competitors.

I (Information): The labelling OLACAB used and the information provided by the logo
stimulates the knowledge of customers that there is is a cab available.

E (Emotional appeal): The colour yellow comes up with personal positive attitude and
transports good feelings and good mood. and this stands as TRP of the campaign.

W (Workability): the branding has no influence of the workability of the vehicle itself
(b) Interactive and social media for interaction:This is placed as using media like online, social
media, SMS, customer cards, receipts of each taxi ride. These means help in communication and
interaction with customers, generates feedback and helps in building strong realation with
customers.

(c) Activities to create more recall of the brand: To create more value for confronting customers
a variety of media means is used, Tv and Radio broadcast, newspaper and magazines printing,
Billboards, Promotional events. Also can put hoardings and prints on moving vehicles for better
advertisement of product.

ADD SWOT ANALYSIS TABLE

CONCLUSION
There is a huge headroom available for growth in India by means of radio taxi. Each cab
company has a good scope for expansion in 2 tier cities, and metro cities will also be primary
target market for each of them. This may also lead to price wars and may lead to more fleet
variations. The demand for hatchback and low cost options will increase in Indian market and
cater to price conscious against other forms of public transport. Service assurance and quality
and convenience will emerge at new heights. Ride sharing will also come at peak for cost cutting.
Some more efforts on a positive side and good working on the attributes will help the cab
service and the industry on a broder scope to grow well and have its roots deep in chnaging the
scenario of transport industry. There is definately some exciting time ahead for both the
consumers and the cab drivers.

REFLECTION
Learning advance consumer behaviour has brought about a change in my thinking towards the
goods and services i deal with. I tend to become more smart in my choives and also tend to think
more deeply on each purchase i do. This has lead me to more lateral thinking and the theories
and concepts has made a clear vision in my mind about consumers, and each time i go out
shopping it helps me taking smart decisions. More over i work at a retail shop and can help my
customers with their purchase as well. I can better understand their behaviour owards any thing
they purchase and can help them taking good decisions. Good relations with customers and
conveying good message and service led me to be the best sales person in my store for two
weeks and my manager is very happy and promised me to give a promotion soon. All the
learnings and theories have left a remarkable print in me. I am thankful to the faculty as well to
convey the theories well and make learning easy.