Grab Car Marketing Plan for Rides Made Awesome + Safe | Ateneo Graduate School of Business
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A Marketing Plan for Grab Car this time of COVID in fulfillment of the requirement for Marketing Management (MARKMA) Class of Ateneo Graduate School of Business. This is submitted to Coach Bong De Ungria solely for class presentation by: Group 5 Robelyn Jugo Jiah Llamado Mike Ng Annie Villasotto
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Grab Car Marketing Plan for Rides Made Awesome + Safe | Ateneo Graduate School of Business
- 1. Jugo, Robi Llamado, Jiah Ng, Mike Villasoto, Annie + SAFE
- 2. 1. Kien & Mike : Businessman/ Employee/ Frontliner 2. Problem/ Pain: Transportation this Pandemic 3. Choices: Ride Hailers & Cheaper Public Rides 4. USP: Safety, Convenience & Health Advocacies 5. Positioning Map: Primary Features & Benefits 6. Potential & Primary Market Size: Gov’t, SMEs & Frontliners Outline
- 3. 7. Product & Service Strategy: Premium Ride 8. Price Strategy: Reasonable & Affordable by Middle/ Upper Income Class 9. Place Strategy: Target Areas this Pandemic 10. Promo Strategy: Digital Promotion 11. Primary Generic Winning Strategy: Niche & Differentiation 12. Summary Outline
- 4. 1.PROFILE OF KIEN & MIKE GRAB PHILIPPINES
- 5. PROFILE OF MIKE 1. PROFILE OF KIEN & MIKE NAME :MIKE BING NATIONALITY :FILIPINO AGE RANGE :21-59 YRS OLD STATUS :MARRIED CHILD :KIEN BING OCCUPATION :BUSINESSMAN THAT NEEDS TO OPEN BACK BUSINESS INCOME CLASS :HIGH INCOME CLASS LOCATION :METRO MANILA MODE OF TRANSPO :TAXI/PERSONAL CAR GADGETS USED :LAPTOP/CELLPHONE
- 6. PROFILE OF KIEN NAME :KIEN BING NATIONALITY :FILIPINO AGE RANGE :21-59 YRS OLD STATUS :SINGLE PARENT :MIKE BING OCCUPATION :FRONTLINER THAT NEEDS TO REPORT TO HEALTH FACILITY INCOME CLASS :MIDDLE CLASS LOCATION :METRO MANILA MODE OF TRANSPO :TAXI/PERSONAL CAR GADGETS USED :LAPTOP/CELLPHONE 1. PROFILE OF KIEN & MIKE
- 7. 1. PROFILE OF KIEN & MIKE
- 8. 2.KIEN & MIKE’S PROBLEM GRAB PHILIPPINES
- 9. Hey Dad! I have to go to the hospital today and I don’t have my license yet. Can you drop me off? Son, Kien our car is still in the repair shop. Can you just take the MRT? 2. STATEMENT OF THE PROBLEM
- 10. But Dad, it’s difficult to ride the MRT these days and it’s NOT SAFE due to COVID. And I am late! Oh no! What should we do? I actually need to re-open our business today. How do we go to work? 2. STATEMENT OF THE PROBLEM
- 11. 2. STATEMENT OF THE PROBLEM
- 12. 3.KIEN & MIKE’S CHOICES GRAB PHILIPPINES
- 13. 3. PRESENT CHOICES CHOICE #1 Book from a ride-hailing app GRAB Did you Book for a Ride?
- 14. 3. PRESENT CHOICES Oh no! There’s no empty taxi yet! CHOICE #2 Hail a taxi
- 15. 3. PRESENT CHOICES There’s too many people! CHOICE #3 Take the MRT
- 16. 3. PRESENT CHOICES The bus just left!!! CHOICE #4 Ride the Bus
- 17. 3. PRESENT CHOICES Let’s take the trike CHOICE #5 Get a Tricycle
- 19. GrabFood GrabExpress GrabCar, GrabCar - 6 Seater, GrabShare, Grab Taxi, Grab Premium, GrabFamily, GrabPet GrabCar GrabHotel GrabLoad GrabBus For P2P Rides 3. PRESENT CHOICES COMPANY SERVICESBefore COVID GRAB PHILIPPINES
- 20. COMPANY SERVICESDuring COVID 3. PRESENT CHOICES
- 21. 4.UNIQUE SELLING PROPOSITION GRAB PHILIPPINES
- 22. USPBefore COVID 4. UNIQUE SELLING PROPOSITION FIXED RATES CONVENIENT & SAFE
- 23. USPDuring COVID 4. UNIQUE SELLING PROPOSITION FIXED RATES CONVENIENT & SAFE
- 24. COMPANY SERVICESBefore COVID INCOME RECOVERY Decreased commission from 20% to 10% CERTIFIED SAFE Driver-partners are trained to maneuver the new normal SAFETY FEEDBACK To consistently safeguard driver and passenger health HEALTH CHECKLIST Online health and hygiene steps 4. UNIQUE SELLING PROPOSITION
- 25. GRAB BAYANIHAN CARDuring COVID 4. UNIQUE SELLING PROPOSITION
- 26. 4 PILLARS OF GRAB PROTECT During COVID 4. UNIQUE SELLING PROPOSITION PROTECT SAFE CASHLESS CONTACTLESS
- 27. Grab ProtectDuring COVID Health and Hygiene Standards implemented by Grab Safety First Mandatory Face Mask Social Distancing Only 2-4 passengers are allowed per ride 4. UNIQUE SELLING PROPOSITION
- 28. Health Check No to Covid Symptoms Stay Home Persons Below 21 & Above 60, immunodeficient or pregnant should remain in their residences Grab ProtectDuring COVID 4. UNIQUE SELLING PROPOSITION
- 29. Grab Cashless RideDuring COVID Cashless Ride 4. UNIQUE SELLING PROPOSITION
- 30. #GrabSafe Ride Every end of trip, Grab asks for #SAFE feedback During COVID Was your driver wearing a mask? Did your driver insist on opening the door for you and was social distancing practiced? 4. UNIQUE SELLING PROPOSITION
- 31. GRAB CONTACTLESS RIDEDuring COVID mandatory deep cleaning & sanitation protocols Drivers trained for #GrabContaclessRide disinfectants and non-permeable barriers 4. UNIQUE SELLING PROPOSITION
- 32. 5.COMPETITIVE POSITIONING MAP 2X2 GRAB PHILIPPINES
- 33. 2x2 MATRIX GRAB PHILIPPINESGRAB PHILIPPINES 5A. PLOT: COMPETITIVE POSITIONING MAP 2x2 Price Primary Feature Low Price High Price Convenience & Safety Grab Car Fast Ride Angkas Grab is a convenient & safe ride
- 34. BENEFIT POSITIONING VS BRAND MATRIX During COVID GRAB PHILIPPINESGRAB PHILIPPINES 5B. PLOT: COMPETITIVE POSITIONING MAP BENEFITS Functional Benefit Grab Other Ride Hailers Taxi Bus MRT/LRT Tricycle Health Protocols a a a a a a Cashless Transaction a Report Mechanism a a a Convenience a a Price a a a a Technology a a Eco-Friendliness a a Availability a a a
- 35. ANGKASDuring COVID GRAB PHILIPPINESGRAB PHILIPPINES 5. PLOT: COMPETITIVE POSITIONING MAP No Operations yet Proposed Rider COVID gear once allowed to operate
- 36. 6.POTENTIAL MARKET & PRIMARY MARKET SIZE GRAB PHILIPPINES
- 37. POTENTIAL MARKETSDuring COVID QC Gov’t & Manila LGU Healthcare Workers SMEs E-Kadiwa Website GRAB PHILIPPINESGRAB PHILIPPINES 6. POTENTIAL MARKET & PRIMARY MARKET SIZE
- 38. Market SizeDuring COVID 6. POTENTIAL MARKET & PRIMARY MARKET SIZE 1 Age 21-59 years old 2 Gender & Status Male or Female/Single or Married 3 Income & Occupation Middle & High Income Classes/ Self-Employed. Employed, Healthcare Workers & Other Frontliners 4 Psychographic Self-Actualizer 5 Geographic Philippine Megacities
- 39. 7. PRODUCT & SERVICE STRATEGY GRAB PHILIPPINES
- 40. GRABCAR SERVICESDuring COVID 7. PRODUCT & SERVICE STRATEGY
- 41. HowGrabMakesaDifference During COVID 1 Feature Premium Ride 2 Advantage & Benefit Technology & Innovation 3 Empowers People Income Opportunities 4 Makes Cities Smarter Technology & Safety 5 Protects our Planet Less Environmental Footprint 7. PRODUCT & SERVICE STRATEGY
- 42. Grab BayanihanDuring COVID 7. PRODUCT & SERVICE STRATEGY
- 44. PRICE SETTINGBefore COVID GRAB PHILIPPINESGRAB PHILIPPINES 8. PRICE STRATEGY Select Objective Determin e Demand Estimate Costs Analyze Competitor Selecting Pricing Method Selecting Final Price Maximum Market Skimming Elastic Demand FC – Office Rent VC – Salary, Maintenance Cost, Insurance, Fees & Taxes Considers Impact on Drivers, Passengers & Regulators Mark-up & Time Pricing
- 45. RIDE HAILING ALTERNATIVES GRAB PHILIPPINESGRAB PHILIPPINES 8. PRICE STRATEGY
- 46. PRICE ADJUSTMENTDuring COVID GRAB PHILIPPINESGRAB PHILIPPINES 8. PRICE STRATEGY Select Objective Determin e Demand Estimate Costs Analyze Competito r Selecting Pricing Method Selecting Final Price Elastic Demand FC – Office Rent VC – Salary, Maintenance Cost, Insurance, Fees & Taxes, COVID protective gears Considers Impact on Drivers, Passengers & Regulators Mark-up & Time Pricing Maximum Current Profit & Survival
- 47. Special Customer PricingBefore & During COVID Grab Pay Pay Less for Your Ride Earn GrabReward Points Enjoy Exclusive Promos 8. PRICE STRATEGY
- 49. 9. PLACE STRATEGY OFFICE/INDUSTRIAL AREAS TOWN AREAS AIRPORT CHURCH MALLS TARGET AREAS BEFORE COVID SCHOOLS
- 50. 9. PLACE STRATEGY OFFICE/INDUSTRI AL AREAS TOWN AREAS GROCERIES TARGET AREAS DURING COVID HOSPITAL & DRUGSTORES
- 51. GRAB OPERATIONSDuring COVID 9. PLACE STRATEGY
- 53. GRAB PROMOTIONS 10. PROMO STRATEGY Advertising1 Events & Experiences2 Before COVID
- 54. GRAB PROMOTIONS 10. PROMO STRATEGY Interactive Marketing3 Sales Promotion4 Before COVID
- 55. GRAB PROMOTIONS 10. PROMO STRATEGY Public Relations5 During COVID
- 56. ANGKAS PROMOTIONS 10. PROMO STRATEGY Before COVID GRAB PHILIPPINESGRAB PHILIPPINES Interactive Marketing2 Events & Experiences 3 Advertising & Sales Promo1
- 57. 11.PRIMARY GENERIC WINNING STRATEGY GRAB PHILIPPINES
- 58. NICHE & DIFFERENTIATION 11. PRIMARY GENERIC WINNING STRATEGY Pandemic & Beyond SAFETY cashless, COVID-19 protocols, driver reporting mechanisms CONVENIENCE premium point to point service of businessman/ employee/ frontliner Hence, Grab is still a WINNER
- 60. 1. Kien & Mike : Businessman/ Employee/ Frontliner 2. Problem/ Pain: Transportation this Pandemic 3. Choices: Ride Hailers & Cheaper Public Riders 4. USP: Safety, Convenience & Health Advocacies 5. Positioning Map: Primary Features & Benefits 6. Potential & Primary Market Size: Gov’t, SMEs & Frontliners Outline
- 61. 7. Product & Service Strategy: Premium Ride 8. Price Strategy: Reasonable & Affordable by Middle/ Upper Income Class 9. Place Strategy: Target Areas this Pandemic 10. Promo Strategy: Digital Promotion 11. Primary Generic Winning Strategy: Niche & Differentiation Outline
- 62. Jugo, Robi Llamado, Jiah Ng, Mike Villasoto, Annie + SAFE
Editor's Notes
- The scenario in the previous slides actually represents the dilemma of most of our commuters, working class and frontliners these days. Most of them have the need to open back their business, report to their offices and health facility. The problem is their personal vehicle which could be in the repair shop or they could have no personal vehicle in the first place, maybe they are unable to drive or maybe they do not have a driver’s license. Their choice is usually the available public transportations consist of MRT, Bus and tricycle. The problem with this is currently, we have low transportation security due to COVID 19 infection. There is lack of social distancing and unavoidable cash transactions, there is theft and even accidents. Apart from this, convenience is also low in most of our public transportations due to limited vehicles permitted to operate, and aside from this, social distancing cannot be practiced at all times, not to mention the lengthy waiting and queue times.
- So the initial prescription or choices based on our initial diagnosis is to book from ride hailing applications where kien and mike will be able to experience premium service point to point ride. They can also hail a taxi which is considered to be an average service point to point ride. Or take the MRT which is a relatively fast mode of transportation or take the bus which is a cheap mode of transportation for long and short rides and finally, they can also take the tricycle which is a cheap and fast mode of transportation for short rides.
- Before COVID, the services of the company includes Grab Car services which could be the standard 1 – 6 passengers, another is Grab share, Grab Taxi, Grab Premium, Grab Family and Grab Pet. Another company service is Grab Bus for P2P Rides. Next is Grab Express for parcel delivery, Grabload for mobile prepaid services, Grabfood and Grab Hotel. A. GrabCar Includes: GrabCar – up to 4 Passengers GrabCar (6 Seater) GrabShare – Shared Ride of 1 to 2 seats Grab Taxi Grab Premium GrabFamily – Max of 5 Passengers and 1 child with Car Seat GrabPet - Max of 4 Passengers and 1 large or 2 small pets B. GrabBus For P2P Rides C. GrabLoad D. GrabHotel E. GrabFood F. GrabExpress
- During COVID there has been some changes in the services particularly the addition of Grab Mart, Grab Pabili, Grab Gift Cards, Grab Offers, Grab Bills, Grab Challenges and Attractions. Though in the following slide and for the whole of the presentation, we will focus instead on the Grab Car Services.
- To emphasize on the Grabcar Brand, let us look into the company’s Unique Selling Proposition
- The USP before covid of Grab Car is fixed rates, particularly because you know what you need to pay at the end of the ride once you book unlike regular taxi’s which changes in rates depending on the traffic and distance run by the taxi. Another USP before COVID is the convenience it provides because unlike taxi where in you have to queue in taxi stands, once you are able to book with the application, you just need to wait for the car to arrive, sweat free. Also, it meets the security and safety needs of passengers like kien and mike because the application provides the driver’s basic information and profile. If in case you left an item in the grabcar, you can easily contact the driver or you can contact the customer service of Grab and they can assist you. Fixed Rates – you know what you need to pay at the end of the ride once you book Convenient – No need to que in taxi stands Safe – You have a record of your driver’s basic information and profile
- After COVID, in addition to the usual USP of Grab Car, we have the Grab Bayanihan and the Grab Protect. Fixed Rates – you know what you need to pay at the end of the ride once you book Convenient – No need to que in taxi stands Safe – You have a record of your driver’s basic information and profile 3. Grab Bayihan - Overarching program program of Grab for passengers and partner drivers in this time of COVID 4. Grab Protect – a Program under Grab Bayanihan comprise of pillars : Protect, Safe, Cashless and Contactless
- The Grab Bayanihan is the overarching program of Grab for passengers and partner drivers in this time of COVID. Under this program, we have the GrabBayanihan Car and GrabProtect. Let’s go into details. For Grab Bayanihan it is basically focuses on four things. First is income recovery where Grab has already decreased the commission they receive from partner drivers from 20% to 10%. So last June 1, 90% of the Grabcar fares now go to partner drivers. Second is CERTIFIED SAFE where in driver-partners are informed and trained to maneuver the new normal. Third, is Health Checklist where in online health and hygiene check are being done in order to ensure that partner drivers are healthy. Last is safety feedback to consistently safeguard the driver and passenger health. GRAB BAYANIHAN Overarching program program of Grab for passengers and partner drivers in this time of COVID GRAB CAR is available for 2-seater in Metro Manila, Cebu, Bacolod and Pampanga GRAB Car is available for 4 seater in Metro Manila – 2 per row Service Hours is 5 am to 10 pm 1) INCOME RECOVERY Decreased commission for a month starting June 1 (90% of fare goes driver-partners) 2) CERTIFIED SAFE Driver-partners are informed and trained to maneuver the new normal 3) HEALTH CHECKLIST Online health and hygiene steps to ensure driver-partners are healthy 4) SAFETY FEEDBACK New feedback option to consistently safeguard driver and passenger health
- Aside from what was mentioned, the GrabBayanihan has a special transport service made specifically for healthcare workers of Grab’s partner hospitals and clinics within Metro Manila. This is called the GrabBayanihan Car. Passengers that can avail of this service are entitled to the following: Access to a special service type Dedicated fleet of drivers Lower-priced rides
- Another USP of GrabCar during COVID is GrabProtect. GrabProtect is a program under Grab Bayanihan which is comprise of pillars of Protect, Safe, Cashless and Contactless. Let me go into more details in the following slides.
- First Pillar is Protect which covers the health and hygiene standards implemented by Grab. It emphasizes Safety First through mandatory wearing of face mask. Another thing is social distancing where in only 2-4 passengers are allowed per ride.
- Next is stay home. For persons below 21 years old and above 60, immunodeficient or pregnant should remain in their residences. Next is Health Check or no to COVID symptoms
- Next pillar is Cashless. People can now pay via Grab Pay and Credit/Debit Card. What is the difference between the two: Grab Pay vs. Credit/Debit Card with Grab GrabCar 2-seater (GrabPay) can only accept GrabPay credits, but you can enjoy higher Grab Rewards and lower fares with every trip. With a ready bank account, debit card, or a trip to a convenience store, you can cash-in your GrabPay account to start booking GrabCar 2-seater (GrabPay) rides. GrabCar 2-seater (Credit/Debit Card) can accept other cashless options apart from GrabPay credits, but passengers will be charged standard fares and will accumulate no GrabRewards.
- The next pillar is GrabSafe where every end of the trip, Grab asks for #SAFE feedback. Some questions include was your driver wearing a mask, did your driver insist on opening the door for you and was social distancing practiced? If this is not done, you have a right to refuse the ride.
- Here are some more pictures
- Now we proceed with the competitive positioning map
- Here’s a 2x2 Matrix of Grab before COVID. We contrast the primary feature and price of Angkas and Grab Car. Grab Car is high in price but it has convenience and safety. Meanwhile, Angkas has low price and focuses instead on safety and convenience to a fast ride.
- As you can see the competitive positioning map, it can clearly assess that Grab is more advantageous than most of its direct and indirect competitors. Although, Grab may be disadvantaged on price especially when there are price surge as well as its ready availability. It can be emphasized that Grab is more focused on delivering safety and convenience. As health protocols, cashless transactions and driver report mechanisms represents concern on safety. While, the convenience, technology and eco-friendliness are of equal importance also.
- We did not consider Angkas in the positioning map of benefits because it currently has no operations. Though they are making current moves to operate again and as you can see on your screen, we have the proposed rider COVID gear once they are allowed to operate again.
- Next subsection we will discuss is the potential market and primary market size.
- The world is unlikely to return to ‘normal’ as long as COVID-19 is a threat. Worries of a second and third wave of infections will mean that even as countries move to ease restrictions, social distancing measures will remain in place for the foreseeable future, and businesses must adapt to changing consumer habits. Consumers will likely remain cautious about venturing out even after the lockdowns end. This means that demand for services such as online shopping, food deliveries, grocery deliveries, and telemedicine will remain elevated. Hence, considering Grab’s potential and already penetrated markets, it considered to reach out to the government and the country’s healthcare systems which are considered good target market partners during this period of pandemic. The partnership will enforce the responsible use of digitalization across the country. In fact: Grab partnered with the Department of Agriculture (DA) and it enabled customers across Metro Manila to purchase fresh produce and meats from the DA’s eKadiwa website and be delivered through GrabExpress, supporting farmers and agripreneurs. Grab also partnered with Quezon City Government (QCG) and Manila Local Government Unit (LGU) to provide work and livelihood opportunities to displaced workers, tricycle drivers, and small businesses affected by the COVID-19 crisis. Grab also wants to ease the burden on healthcare workers as it launched GrabBayanihan. Piloting with 400 volunteer drivers, each GrabBayanihan Car will ferry one (1) healthcare worker to and from registered hospitals and medical facilities at a time, in accordance with the government’s social distancing guidelines. As for Grab’s Primary Market Size, it will continue to help small and traditional businesses including Small Medium Enterprises (SMEs) to make a smooth transition online and optimise their business models to meet shifting consumer demands. Sources: https://assets.grab.com/wp-content/uploads/media/Grab-Social-Impact-Report-2020.pdf https://www.ekadiwa.da.gov.ph/ https://mb.com.ph/2020/07/06/qc-govt-partners-with-grab-to-provide-livelihood-to-residents-affected-by-covid-19-crisis/ https://pia.gov.ph/news/articles/1044682 https://mb.com.ph/2020/06/08/grab-launches-grabbayanihan-car-for-healthcare-workers/
- As focusing on Grab’s primary target market, Grab intends to provide it with luxurious and comfort rides to consumers as their preferred choice. The following criteria are considered, first the demographics part: Age - as these are the ages only allowed to go out of their homes during this period of pandemic Gender & Status - all types are targeted Income - as considering the ability of the target market to pay for a higher than cheap but more convenient transportation. For the occupation, considering that all working individuals need to have a ride including the healthcare workers and other frontliners For the Psychographic part - it will consider the self-actualizers, as indicated in Maslows hierarchy, whereby individuals prioritize their wants to enjoy the ride, not just as a means of transport and will utilize the service when the brand image is aligned to what the individuals perceived of themselves to be. For the Geographic part - Grab intends to capture their PTM covering the Philippine megacities like in Metro Manila, Davao, Cebu, and the like. Source: https://www.slideshare.net/laijianann/marketing-plan-grab In an online media forum, Grab head of Transport and Shared Services Ronald Roda said its car services will comply with the two-passenger limit and cashless payment. About 20,000 drivers are expected to be ready for deployment once transport network vehicle service (TNVS) units are once again allowed on the road upon the easing up of lockdown measures Read more: https://newsinfo.inquirer.net/1282346/grab-to-implement-addtl-safety-measures-in-car-services-vs-covid-19-spread#ixzz6THTlvh9v Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
- The next subsection is about the product and service strategy of Grab Car
- So how was Grab created. So it started with a question, “Why can’t we have a safer way to hail a ride?” “Can’t we give drivers better working conditions?” “What if we could make life just a little bit easier?” In view of those questions, Grab was created with features that allow customers to have access on upgrading from an economy ride to a premium ride, fixed fares, personal accident insurance as well as drivers with quality. This further assures the consumers to have trust in the new service, but also feel at ease for their families to utilize this service. Grab commits to be constantly in search for better technologies that will enhance the current product as well as the innovation of new products to optimize the travelling from comfort especially this period of pandemic. Grab empowers people, to open up opportunities for all, regardless of background or ability. It provides income opportunities to all groups of people, including the disadvantaged, as part of its commitment to push for greater inclusivity. Grab makes cities smarter, to provide technological solutions to improve and build safer, smarter cities. Many Filipinos face everyday limitations like traffic congestion and lack of public infrastructure. As an everyday everything app, Grab solves everyday challenges to make life a little easier. Grab protects our planet by minimising our environmental footprint by accrediting only brand new or slightly used cars to serve as a ride-hailing service. We only get one Earth. Let’s take care of it. We are introducing measures across our businesses and ecosystem to build a more sustainable future. Source: https://www.grab.com/sg/brand-story/
- Corporate Social Responsibility - Make a difference by donating your points to support organizations through Grab Reward e.g. of organizations are Red Cross, Unicef, Make a Wish
- Target Market : City Commuters – Metro Manila, Cebu, Davao and Pampanga From here we try to understand how Grab Car sets its price. 1) Setting the Price select objective - maximum market skimming - there are sufficient number of passengers and its high price communicates the image of a superior product - Superior product because Grab provides safety and convenience through booking system, secured profile of drivers who are trained and licensed and relatively insured drive to passengers b) determine demand – although the metro has a lot of commuters and potential passengers due to congested population there are a lot of substitute transportations. Price is a big part of total cost of operating its business in its lifetime so it is elastic. c) estimate costs – costs include office rent for the Grab Office located in Wilcon IT Hub in Makati which is a fixed costs. Salary for regular mostly administrative personnel, maintenance costs for the app, insurance for drivers, fees for permits and taxes is what comprise the variable costs. analyze competitors’ costs, prices & offers – competitors includes taxis, public transportations such as jeepneys, tricycles, LRT and MRT; there are also private cars, motorcycles but in this presentation we will focus on ride hailing alternatives which we can see in the next slide. select pricing method – Mark-up Pricing - identify the costs then add desired mark up/ profit Time Pricing – a form of third degree price discrimination where prices are varied by season, day, or hour. select final price – impact of price to drivers, passengers and regulators. LTFRB has been monitoring price fluctuations in ride-hailing apps such as Grab to avoid overcharging. Currently, standard Grab Car charges 40 pesos flag down rate with P2 additional charge per minute and P10 – P14 pesos charge per additional kilometer. The app calculates all these factors in pricing through algorithms and charges a fix price to passengers
- The LTFRB recently accredited some Transport Network Vehicle System (TNVS) companies to compete with Grab. The ride-hailing giant may still be the dominant player in the TNVS industry, but new ride-hailing companies promise lower fares and better services. Initially launched in 2016 as a shuttle service provider, U-HOP has now expanded its ride-sharing services to include taxis, sedans, and SUVs. It also provides car rental, leasing, and corporate transport services. Service areas: Metro Manila, Cebu, Davao, Iloilo, CDO, Bacolod, General Santos, Baguio, Zamboanga, Boracay, Angeles, Subic, San Fernando, Cavite, Lucena, and Bicol Founded in Cebu, Micab currently operates in five key cities in the Philippines. It will soon be available in Davao where it will directly compete against Hirna. Service areas: Metro Manila, Baguio, Cebu, Iloilo, and Bacolod Hirna is Davao’s homegrown taxi-hailing app developed by car rental company Avis Global, Avis Philippines, and Metro Davao Taxi Association. Service areas: Davao City, Cagayan de Oro, and Iligan City A wholly Filipino-owned TNVS company, OWTO uses private vehicles for its ride-hailing service. You can choose from sedan, hatchback, subcompact, or SUV. Service areas: Metro Manila and some parts of Bulacan, Rizal, and Cavite Go Lag is a transport network company that’s similar to any regulated taxi or rent-a-car company in the Philippines. Its name is a shortened version of “Go Laguna,” the province where the ride-hailing service is based. Service areas: Metro Manila, Laguna, Bulacan, Cavite, and Rizal. HYPE is a 100% Filipino-owned transport network company whose name stands for its core values: Honest, Young, Professional, and Empowering. Service areas: Metro Manila, Bulacan, Rizal, Cavite, and Laguna (will also operate in Cebu and Davao) Source: https://www.moneymax.ph/car-insurance/articles/ride-hailing-grab-alternatives
- In this time of COVID, Grab changed its strategy in pricing due to the following factors Target Market : City Commuters – Metro Manila, Cebu and Pampanga 1) Setting the Price select objective – because of the current COVID pandemic, Grab Philippines made adjustments to its pricing strategy. From objective of maximum market skimming, it now has the objective of survival and maximum current profit. It still charges fairly higher prices because of being a premium transportation although there has been a drop in charged price by around 10 to 15 percent from previous prices. Also, Grab has implemented a strategy of reducing commission received from partner drivers from 20% to 10%. Aside from the pandemic, other considerations are demand. b) determine demand – currently Grab operates for GCQ in Metro Manila, Cebu, Bacolod, Pampanga. Demand type is still elastic though became less due to decrease in available transportation. Passengers would be mostly willing to pay even if prices charged by Grab are higher since their concern nowadays especially for workers required to be physically present in the office is just to get home. Higher prices may be justified. c) estimate costs – costs are still the same with addition of COVID protective gears though some are subsidized, some are actually to the personal expense of the partner driver. d) analyze competitors’ costs, prices & offers –there are no drastic changes in the pricing of competitors though there numbers declined and operations of some are still suspended. e) Selecting Pricing Method – mark-up pricing - the costs then add desired mark up/ profit Time Pricing – a time of third degree price discrimination where prices are varied by season, day, or hour. f) select final price – same considerations
- Less Payment for Special customers or users of Grab Pay. Same promo has been retained in this time of COVID where Grab Contactless ride is being implemented
- For the place strategy, Grab focuses on targeted areas such as malls, town areas, airports, office/ industrial areas and even schools and church. However, these targets are before COVID-19.
- As we coast in the midst of this pandemic, the targeted areas shifted from the usual crowded places to the most needy/ critical places. Airports, malls and schools were replaced by hospitals, drug stores, and groceries along with town areas and office and industrial areas.
- Grab Operations during COVID GRAB CAR is available for 2-seater in Metro Manila, Cebu and Pampanga GRAB Car is available for 4 seater in Metro Manila – 2 per row Service Hours is 5 am to 10 pm
- Advertising – any form of general presentation and promotion of products through on-line or offline media Events & Experiences – company sponsored events to create interaction to customers Grab Philippines celebrated National Heroes Day last Monday, 26 August by inviting Grab drivers and their families for a day of fun in an event that celebrated Grab’s Everyday Heroes on the road. – Partnership with One Championship Rock on Ka-Grab – Grab Year-end celebration
- Interactive Marketing – activities on-line that allow interaction with customers Sales Promotion – various incentives applied in order to encourage testing or purchase of goods and services
- https://www.youtube.com/watch?v=bB8mQga82WU&list=PLnlsoKq9KL0EPYXdrsM5jVEDsGECrGx5s&index=6&t=0s PR – internal and external programs which are designed to protect the company’s image and product communications
- Advertising & Sales Promo – unlike Grab which is focused on convenience & safety, Angkas promotions is focused on a fast-ride that is able to reach destinations ASAP – beating the traffic Interactive marketing – uses social media platforms Events & Experiences – conducts concerts Angkas no web commercial – still not allowed for COVID
- As far as safety is concerned: We all know now that Grab caters cashless transactions compared with other indirect/ direct competitors, hence, avoiding further spread of COVID-19 It has a complete set of COVID-19 health protocols like social dist.ancing, temperature reading, sanitizer, sanitize area before-and-after use. Grab protects its customers by having driver reporting mechanisms. As for the convenience, as discussed in the product strategy, Grab offers premium ride not just to middle/ upper class but also with the frontliners. Hence, Grab may still be a winner during this period of Pandemic until the New Normal.