Grab marketing strategy analyst

2.Company overview  According to Wikipedia, Grab formerly known as GrabTaxi is a Singapore-based technologycompany that provides car transportation and transportation services in Singap

Nguyễn Gia Huy-SS170644

GRAB MARKETING STRATEGY ANALYST

I.Introduction

1.Market trend and overview

 “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 forpassenger in moving, compared to traditional taxies “With Southeast Asia growing populationand fast digitalization rate, it has seen a fast-developing online ride-hailing segment, which has aforecasted 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-hailingcompanies.[5]

 When it comes to the well-known "technology motorbike taxi" brand in Vietnam, we can't helpbut think of Grab - a simple, quick, and easy online vehicle booking application FollowingGrab's entry into the Vietnamese market in 2014 and its acquisition of Uber in 2018, theVietnamese 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 haveblurred during the last two years, and they no longer exist on the street Grab, GoViet, and be arethe only three ride-hailing providers that now dominate the Vietnamese market.[2]

2.Company overview

 According to Wikipedia, Grab (formerly known as GrabTaxi) is a Singapore-based technologycompany that provides car transportation and transportation services in Singapore and otherSoutheast 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 totransportation Customers can travel faster than taxis due to the application of technology incalling, but it is extremely safety compared to traditional motorbike taxis

 Grab is currently growing up in 8 countries and 195 cities in Southeast Asia More than 90million devices are expected to have utilized this technology auto booking smartphoneapplication More than 5 million people use it regularly ad there are more than 2 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 competewith Go Viet, Bee…, can be mentioned as Grab to the province, GrabExpress, GrabFood andGrabHour.[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) Grabprovides all services on mobile application platform This brand aims to help customers travelmore conveniently And over time, Grab also almost expanded its services, creating convenienceand speed for customers

 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 2 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 hascontinually held a significant portion of the market share, other companies have expanded their portfolios

in order to compete with the market leader



(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.

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.

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

 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 consumersafety 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 6 seats), GrabShare, GrabTaxi, and GrabCar+ are all available (Premium)

 Grab provides transportation as one of its services, but it also provides food delivery, mobile/dataloading, 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

the bottom (Tung, 2015) by beginning to utilize cash and accept card payments in early 2016, incontrast 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 Grabservices In addition, Grab has a business service called “Grab for business” which was created to helpbusinesses grow Grab provides a unified digital platform to manage the day-to-day business needs ofcompanies, - from travel, food ordering, or delivery, to providing gifting solutions/ promotions withGrabGifts vouchers to your company

 Geographic

According to TECHBIKE.VN, up to now, GrabCar operates in 5 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 3 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 customerswho want an affordable price with many incentives and good services, Grab has continuously launched

many promotions and points to stimulate customers behaviour That helped Grab become close andreceive 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 thedriver's uniform to help users easily detect grab

III Marketing strategy analysis

1 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 andfood delivery are two of Grab's distinctive services A Grabcar is a mode of transportation thattransports 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 unveiledGrab Platform, the first super app for everyday life in Southeast Asia, as part of its open platformstrategy, which will provide faster services like fast food delivery and Grab has a large number ofcars, 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 2 years

ago and the projections will increase significantly

 The picture shows Grab's meticulous services, customers have many choices in choosing

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 theGeneral 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, discountsfor residents per month or even per day

This photo proves that the more you go, the further you go, the more promotions will get

Based on Grab's official website, Grab also has other promotions for low income residents such as, withjourneys under 5 kilometres, Grab will support both customers and partners for a cost of 10,000 VND forcustomers and 50,000 VND for phones at peak hours.

Place strategies

 Distribution channel is an important factor in bringing products to customers The Grab systemhas diverse forms of distribution, including direct and indirect Customers can find Grab'sproducts/services by downloading apps on the App store or Google play easily and quickly

 With the continuous development of digital technology and mobile devices, when in the modernworld no one can be without a smartphone, distributing products via mobile applications is thechoice very correct choice In addition, you can easily find a Grab driver on the road incommercial, 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 coversmany provinces and cities in Vietnam

 It is known that Alibaba is preparing to invest 3 billion USD in Grab, this is considered thebiggest 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-hailingservices, such as delivery, food ordering, electronic payments…

 With Grab and Lazada working together, Alibaba will likely continue its plans for Grab BecauseLazada 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 Lazadaapplication 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 implementingcreative advertising campaigns and taking advantage of social media marketing to draw incustomers and increase brand awareness

Marketing campaign

Because Grab's audience is especially adolescents, the corporation focuses on creative marketingcampaigns that are near customers Take the brand's Star Wars campaign, as an example The campaignmay 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 Grabconnect 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