IBBAAA BRAND MARKETING PLAN FOR THE TARGET MARKET MUNICH - GERMANY
Analysis | Strategies | Tactics
EVELYN SINDERMANN |MIM 2015 Professor Protano: Strategic Brand Management

EXECUTIVE SUMMARY
Ø The brands opportunity is to increase the revenue to €8.2M by targeting the
corporate market and creating a premium offer by the end of 2015.
Ø The rise in disposable net income (€2,504 in average) and the growing number of
corporations in Munich offer new business opportunities for UBER. Raising brand
awareness by capturing & communicating a superior value proposition strengthens
UBERs brand equity.
Ø The strategic alternatives are:
A: “Keep Driving” (gain market share by penetrating existing target audience)
B: “Go Corporate” (attract new target audience with existing service)
C: “Go Crazy” (innovate & create new product for new audience – be provocative)
Ø Recommendation: “Go Corporate” is the best option in terms of market potential (growing
demand) and an ROI of 17.7%

Porters 5 forces | The market attractiveness is low due to a highly competitive
environment, risks of substitutes and medium threats of new market entrants
Threat of new entrants | MEDIUM
¤ Patents on various technologies build a
boundary for competitors from a technological
aspect
¤ There are no proprietary elements that
prevent new market entrants.
¤ Compliance with German transportation laws
is required to enter the market
¤ Low seed capital is needed to enter the
market
Power of Suppliers | HIGH
¤ Drivers & Rental Car Companies have a high
bargaining power.
Power of Competitors | HIGH
¤ Taxi & Limousine services are higher in price but
offer a broader network
¤ Similar services to Uber (Lyft & Wundercar) are
currently banned by law but have the potential to
enter the competition with new business models
similar to Uber.
Threat of Substitutes | MEDIUM
¤ Public transportation, car sharing services and
bicycles are easy accessible alternatives and less
in price
Power of Buyers | HIGH
¤ Customers have multiple choices according to their
needs
¤ Scheduled rides: Taxi
¤ Luxury rides: Limousine Services
¤ Self - driving: Car sharing e.g. DriveNow,
Car2Go,

MDI: Opportunity to tap 86% passenger transportation
market by increasing the number of rides by 2020
1980 1990 2000 2010 2020
100
20
5
10
15
0
Market Demand of Passenger
transportation in Munich*1:
12,2M
Potential Market Demand*2:
90,4M
MDI: 12,2M/90,4M ≈ 14%
*1: Passenger transportation based on
Taxi business excluding car sharing &
public transportation.
*2: Estimated data
MarketDevelopmentIndexMDI
Market Penetration

UBER has a growth potential – differentiation &
innovation is required
0 50 100
100
50
0
MarketDevelopmentIndexMDI
Share Development Index
MDI ≈ 14%
SDI ≈ 54%
Growth with Market
Development
Uber has the opportunity
to increase their market
share from 7,78% to
14,41% by 2020.

Our competitive advantage: Price Leadership
Operational Excellence
Product Leadership
Customer Intimacy
Munich Drivers (Private Limousine Service)
Taxi München eG/ IsarFunk
(2 main taxi operators in MUC)
UBER
MVG
(Munich public
transportaton system:
Ubahn, Sbahn, Bus, Tram)

Uber operates in an attractive market with potential to
strengthen their competitive position towards leadership
Unattractive Average Attractive
StrongAverageWeak
Market Attractiveness
CompetitivePosition
Disinvest
Proceed with
Care
Cash
generator
Phased
Withdrawal
Proceed with
Care
Growth
Leader
Leader
Try Harder
Double or
Quit

Building on low operational costs allows price leadership
position.
Relative Strengths Relative Weaknesses
¤ Competitive Advantage
Ø No proprietary inventory (cars) & direct
employees (drivers & dispatchers) allow
minimal operational cost and fares that are
20% lower compared to the competition
Ø A scalable business model facilitates a
possible German-wide expansion with
minimum investments
Ø High quality standards of cars & services
ensure brand recognition and strengthen
¤ Superior Value
Ø Cash-less payments and pricing
transparency builds trust & safety among
customers and drivers
¤ Superior technology & innovation strengthen
Ubers operational excellence and help growing
brand recognition in a competitive environment.
¤ Legal vulnerability
Ø Successful US business model is restricted in
Germany and leads to additional costs.
Ø Commercial drivers license: €240,- per
driver/ every 5 years
Ø Privately owned cars are restricted to
commercial use. Rental car companies
need to provide cars and insurance
¤ Lower profit margins due to additional costs and
shared revenue with rental car companies are
compensated with higher volume.

Market growth potential compensates possible profit loss
due to external threats
¤ Increase the number of drivers from
120 to 200 by the end of 2015
Ø Use economies of scale: 80 additional
cars result into a 40% revenue growth
Ø Higher frequency lowers the estimated
time of arrival.
Ø Customers benefit from faster
service
Ø Increasing the frequency of rides per
driver/day from an average of 11 rides
to 15 results in an estimated revenue
plus of €2.5M annually
¤ Capitalize on operational excellence to
increase the volume and frequency of
rides and gain market share of more
than 5% by the end of 2013.
Opportunities Threats
¤ High pressure from governmental
restrictions & key industry players
Ø Taxi industry sees Uber as a “grey-
market service” and tries to file lawsuits
that may cause unexpected legal
expenditures.
Ø Possible minimum wage restrictions for
the taxi industry and price increases
from rental car companies will decrease
profit margins.
Ø Negative PR about Uber influences the
customer behavior and can result in
dropping demand and market share.
¤ Profitability will drop if Uber cannot
compensate possible cost increases by
establishing significant brand equity

The business model in Germany – an explanation
1.Uber recruits drivers
• Pays commercial taxi license
(legal requirement)
2.Uber connects drivers with
local rental car companies
• Commercially driving with
private cars is illegal
4. Drivers receive
requests via the Uber
app:
• Locate passenger
pick-up & drop-off
destination
• Receive cash-less
payment via Uber
3. Passengers use Uber app:
• Pick-Up request
• Real-time tracking
• Payment

Consumer – two main target groups
Students (age 18-25) Young Professionals (25-35)
• Transportation to/ from University
• Cheap alternative to taxis & public
transportation
• Pick-up from parties & events
• Split fares with friends
• Transportation to/ from work or
business meeting
• Comfortable driving experience
• Fast & reliable transport
• Expense tracking when traveling for
work
• Traveling “in-style”
• “Cooler” than taxis
• Most of my friends don’t know about it
yet
• Surge-pricing during peak times too
expensive
• A high qualitative service with short
waiting times
Consumers support the Uber business model. Build on general demand for
transportation, enhance brand equity and awareness for future growth.

Customers – Drivers build the core of the business model
Drivers
• Passengers
• Profit margin
• Commercial taxi license
• A vehicle
• Easy-to-use technology
• Safe money transfer
• Reliable customers
• Insurance & benefits
• Reliable partner who provides technology & infrastructure
• Direct connection to the passenger
Drivers value Uber technology. Build on drivers feedback for
innovation and consumer insights.

Collaborators – Local rental car companies (a
necessary middleman by law)
Rental car companies
• Renters (Uber drivers)
• Profit margin
• Long-term contracts about expected rental volume
• Responsible drivers
• Growing customer base
• Partner who delivers constant source of income
Enhanced credibility and higher rental volume increases the chances to
negotiate lower rates.

PESTEL: Increasing market demand opens possibilities in the areas of new
technologies & sustainability. Risks of increasing costs need to be considered.
Political & Legal
Industry regulations:
• Government requires
commercial licenses
• Political discussion about
minimum wage laws for taxi
industry
Ø Decreasing profit margin due to
higher cost
Economic
• Germany reached historical high in
disposable income. Munich has the
highest disposable income (monthly
net average: €2,504)
• Growing corporate sector
Ø Price sensitivity decreases
Ø Growing profit in corporate sector
increases demand for private
transportation
Social
• Population density in cities is
growing
• People follow fast paced life
style
Ø Increasing demand for
transportation in urban areas
Technological
• Automobile manufacturers work on
technologies for more sustainable
vehicles
• Use of mobile applications for daily
activities is increasing
Ø The market is open for technological
enhancements and innovation
Environmental
• Trend goes towards environmental
friendly & sustainable transportation
• Growing demand for Electrical &
Hybrid cars

The strategic problem – a lack of brand awareness
Situation: UBER penetrates a traditional service industry with an innovative &
technology based business model – for a 20% lower price than the average
competition...
...but what is the problem? – Supply & Demand
Uber is new to the
German market.
People don’t see Uber
as their “first choice”
yet.
Low demand makes
the business
unattractive for
drivers.
The business has a high growth potential but lacks in
Brand Awareness

Strategic Brand Alternatives
LOW BRAND
AWARENESS
ESTABLISH
BRAND EQUITY
“KEEP DRIVING” “GO CORPORATE” “GO CRAZY”
CHANGE
BUSINESS
MODEL (Invest
into own fleet of
electric & hybrid
cars)
LEAVE GERMAN
MARKET (Search for
other European
countries with less
governmental
restrictions)

The Alternatives – A | B | C
A: “Keep Driving” (gain market
share by penetrating existing target
audience)
B: “Go Corporate” (attract new
target audience with existing
service)
C: “Go Crazy” (innovate & create
new product for new audience – be
provocative)
Existing
Target Market
New
Product
ExistingNew
A B
C
Not an option
Ø High legal
restrictions

A: “Keep Driving”
PRO CON BENEFIT
• No need for investments in
R&D or innovation
• Existing customers can be
used as advocates
• Increases sales & profits
• Changing customers
perception of an
existing product/brand
is difficult
• No differentiation
• Easy to imitate for
competitors
• Price Leadership status
can be retained
Investment
Marketing campaign
€ 700,000
ROI
6,5%

B: “Go Corporate”
PRO CON BENEFIT
• Enter new customer segment
• Create value for a different
audience
• Leverage on growing number of
corporations and high
disposable income within the
business sector
• High costs in terms of
Marketing
• Combines the
knowledge of Ubers
operational excellence
with new market
options
Investment
Marketing Campaign: €200,000
Sponsorship/ Branding € 85,000
ROI
17.7%

C: “Go Crazy”
PRO CON BENEFIT
• Advantages of the “first
mover”
• No competition (at least for a
short time)
• Very risky strategy
• High costs
• Difficult to implement
• Immediate industry
attention (if
implemented
successfully)
Investment
• New Product Development &
Marketing Campaign:
€ 2,000,000
ROI
8.9%

Recommendation: “Go Corporate” is the best option in terms of
market potential (growing demand) and an ROI of 17.7%
Market share
2015 2020
7.7%
14.8%
Increase frequency of
rides/ driver per day
2015 2016
11
15
120
200
Increase
number of drivers
2015 2017
By focusing on large businesses Uber can leverage on its high quality, double its market share
by 2017 and take over the market leadership in the corporate passenger transportation
sector by 2020.
PHASE 1 PHASE 2
€ 8,6
€ 12
Increase average
price/ride
2015 2018
PHASE 3 RESULT

Entering new target market by communicating
brand value
Functional
Emotional Experiential
UBER stands for fast | reliable |
high quality transportation
Uber means consistency & high
customer friendliness
• No need to hail taxis on the street
• Corporations rely on Uber:
whenever & wherever they need
transportation
UBER is a partner that
cares about you and the
people that are important
for your success:
• Clients / Business
partners
• Employees

Brand asset valuator: Consumer awareness is
the key to brand value.
Brand Stature
Esteem & Knowledge
Differentiation&Relevance
Unused
potential /niche
New / fading
brands
Power brands
LEADER
Mass market
Eroding brands
BrandStrength
Goal: Partner with the 10
largest companies in Munich
within the next 5 years.
Ø Differentiate through Quality
Ø Use customer feedback for
improvement
Ø Research new innovations for
the UBER App
Ø Customize service according to
the companies needs
Ø Stimulate positive word-of-
mouth among business
professionals
Enhance partnership with leading corporations and encourage positive word of mouth
(Customers & Drivers)
S B I V A R
Solution

Raising brand awareness by creating a premium value
proposition for corporations.
PERCEIVED CONSUMER PERFORMANCE
RELATIVEPRICE
Low
High
Inferior Superior
Economy
Average
Premium
S B I V A R
Branding / Value
TRANSPORTATION EXCELLENCE

Brand Awareness and revenue growth through corporate
business partnerships with “The big 4”
Companies with high
transportation demand
BMW: 33.000 employees
Allianz: 4.200 employees
Siemens: 1.600 employees
MAN: 1.400 employees
= Average demand of 1884
rides/day
Hypothesis: 5% of “The Big 4”
employees need a transportation
alternative to/from work
• Revenue of €8.2M by specific targeting
towards Allianz, Siemens, BMW & MAN
• Possibility of gradually increasing
demand until 2020 by offering high
quality
• Employees obtain subsidies for their
commute to/from work
• Less price sensitive customers
• Brand exposure
• Positive word of mouth among big
companies increases chances for future
business opportunities
S B I V A R
Info / Incentive
Benefits
Targeting “The Big 4” for long-term relationships

Brand Awareness through corporate sponsorship
with leading local corporations
S B I V A R
Info / Incentive
VIP Shuttle service for FC Bayern
players and business partners
#FCBgoesUBER
Official limousine service for the
BMW Open. Most prestigious Golf &
Tennis tournament in Germany
#PoweredByUBER
• Enhance image
• Shape customer attitudes
• Showcase UBER attributes
• Comfort| Reliability | Prestige
• Create positive publicity & visibility
Identify local key events
Football | Tennis & Golf
Benefits
Sponsored UBER rides for corporate events expose the brand
Estimated Investment (for Event
Sponsorship & Corporate Partnerships)
Marketing campaign (online/offline): €200,000
Sponsorship /car branding: 85,000

THANK YOU
EVELYN SINDERMANN |MIM 2015 Professor Protano: Strategic Brand Management

APENDIX A – Calculation DEMAND/MDI/SDI
UBER
rides
per
year
cars
120
rides
per
day
11
days
365
481.800,00
Maket
Demand
rides
per
person/year
2,96
average
price
8,6
rides/year
481.800,00
total
12.264.700,80
Popula@on
Munich
(7+)
1.200.000,00
rides
per
person/year
2,96
Overall
Taxi
rides
per
year
MUC
3.552.000,00
Demand
90.419.712,00
Revenue
Total
Market
revenue
€53.280.000,00
Uber
Market
revenue
€4.143.480,00

APENDIX B - Calculation Alternatives
Op@on
A
€
700.000,00
Investment
Increase
rides
to
15
6,53
ROI
Increase
#
cars
to
200
€5.273.520,00
Profit
Op@on
B
Marke@ng
Strategy
€200.000,00
Investment
Increase
prices
to
12
EUR
17,70
ROI
Increase
number
of
rides
to
15
€3.740.520,00
Profit
Op@on
C
Investment
€2.000.000,00
Investment
8,97
ROI
€19.946.520,00
Profit

References
https://growthhackers.com/companies/uber/
http://www.muenchen.de/sehenswuerdigkeiten/muenchen-in-zahlen.html
http://www.adweek.com/prnewser/ceo-of-ubers-branding-agency-talks-visual-
communications/105578
https://clarity.fm/questions/709/how-as-uber-grown-so-fast
http://www.spiegel.de/wirtschaft/unternehmen/uber-startet-uberx-in-deutschland-
a-1034452.html
http://www.taxi-heute.de/Taxi-Thema/verschlagwortung-taxi-heuteallgemeine-stichworte/
Muenchen
https://www.statistik.bayern.de/statistik/kreise/
https://www.destatis.de/DE/ZahlenFakten/Wirtschaftsbereiche/TransportVerkehr/
Personenverkehr/Personenverkehr.html