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ID Number – 44814


Module Code – MCOM4040

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Module Title –
Marketing and Communications


Assignment Title –
Coursework 1 Report











Table of Contents
Cover Page
Table of Contents
Marketing Orientation
Types of
Addison Lee’s
Marketing Environments
Environment Analysis
Macro Environment
Micro Environment
Internal Environment
Marketing Strategies
Market Segmentation
Segmenting the
Market for a Younger Demographic
Marketing Mix
Physical Evidence
Recommended Changes
Reference List








1.0 Introduction

Addison Lee is a private hire company that was founded in
1975 and based in the United Kingdom. This report will identify and evaluate the

2.0   Marketing Orientation

2.1 Types of
Marketing Orientation

Businesses adapt and use one of four orientations to build an
effective marketing plan. The four orientations are: production, product,
selling and marketing. The production orientation holds that consumers will
prefer products which are easily obtainable and affordable. Businesses focused
on this orientation will focus on high production efficiency whilst keeping
costs as low as possible (MyMarketingCloud, 2015). The product orientation
holds that consumers prefer products which are of the highest quality or has
the best performance so businesses focused on product orientation will aim to
have the best product and improve it over time.

 The selling
orientation involves aggressive selling and promotion. This orientation shows
minimal focus towards customer needs or demands and more so towards selling
their product (Kotler, 2000). The final orientation, marketing, is
an idea that believes to attain organisational goals, they must satisfy the
needs of their target markets (Studiowide, 2010). Key differences between selling and
marketing orientations include:

The selling orientation’s primary focus is the needs
of the seller, whereas the marketing orientation’s is satisfying the needs and
demands of the consumer.

The selling orientation’s main goal is to sell
the product and make money, whilst the marketing orientation’s main goal is to
have their product meet the needs of the consumer (Kotler, 2000).

2.2 Addison Lee’s

From the apparent, Addison Lee has focused on product
orientation as they strive to ensure their services and products are of the
highest quality and continue to constantly develop both their services and
brand. This is supported by Addison Lee redesigning their mobile phone application
for both Android and iOS users to allow for more convenient and simple user
experience (Addison Lee, 2014). Further improvements have been made to
the application and service which are not provided by their competitors such as
Uber. For example, Addison Lee offer a ‘snooze’ function which allows consumers
to delay their booking without having to cancel or re-book and allows consumers
to share their estimated time of arrival through text message or email (Addison Lee,
Furthermore, Addison Lee vehicles are no more than three years old which ensure
both the car and journey are of the highest quality possible and are
continuously improving (Addison Lee, 2016).


3.0   Marketing Environments

3.1 Marketing
Environment Analysis

The factors which affect a business are known as the
marketing environment. It consists of the internal environment, factors which
the business has control over, and the external environment, factors which the business
has no control over (Marketing Tutor, 2016). The external
environment can be divided into the micro-environment and macro-environment.
The micro-environment refers to external factors that directly affect the business,
whereas the macro-environment refers to external factors that affect the industry
and not the business directly (Pahwa, 2017).
Market environment analysis is a process that enables businesses to identify
their market environment and assess their impact, whether is it an opportunity
or a threat (O’Farrell, 2009). There are different
tools a business may use to analyse each environment. For example, a PESTLE
analysis can be used to analyse the macro-environment and Porter’s Five Forces
model can be used to analyse the micro-environment (Oxford Learning Lab, 2012)It is vital for
Addison Lee to carry out an environmental analysis before setting a marketing
strategy to ensure the strategy is in accordance with Addison Lee’s environment
 (PESTLEanalysis, 2015).

3.2 Macro Environment

Although there are six major factors in a company’s macro
environment (political, environmental, social, technological, environmental and
legal) for this report, an economic and social factor will be explained and
discussed. Uber, a direct competitor of Addison Lee, recently lost their
license to operate in London. This is considered a major economical factor
affecting Addison Lee as Addison Lee can now expect a massive increase in
customers as many former Uber customers will now turn to Addison Lee as their
main private hire operator in London. A social factor directly linked with Uber
losing their license to operate in London, is the job opportunities opening in
Addison Lee. Addison Lee have announced they are looking to recruit an extra
1000 new drivers shortly after it was announced Uber had lost their license (Smith, 2017). Both factors
discussed are a huge opportunity for Addison Lee as they undoubtedly will
result in a rise in revenue for Addison Lee and increase the brand image,
especially in London.

3.3 Micro Environment

Although all private hire operators can be deemed as
competitors of Addison Lee such as local minicab offices or other cab hire
organisations, for this report Uber and Mytaxi will be discussed as competitors
of Addison Lee and what threat they pose to Addison Lee. Whilst London being
the only city in the United Kingdom it operates in, Mytaxi has registered
17,000 black cabs (Carey, 2017).
This could result in customers preferring a more iconic and traditional London
black cab compared to the premium Addison Lee vehicles. Uber on the other hand,
is a cheaper option than Addison Lee which is a major reason customers may
choose Uber over Addison Lee.

3.4 Internal

Two internal factors that could be considered for Addison
Lee are their drivers and vehicles. Their drivers are made to comply with a
dress code and although this enhances their brand image of being a premium
private hire operator compared to some of their competitors whose drivers do
not comply with a dress code, Addison Lee are criticized for hiring drivers as
independent contractors whilst they still have to observe Addison Lee’s dress
code amongst other requirements (Acton, 2017).
The drivers can be considered both a strength and weakness as although they can
be deemed superior to their competitors, they are often criticised from a legal

The cars at Addison Lee are no older than 3 years and are
serviced twice as often as recommended (Addison Lee, 2016). This ensures the journeys are
comfortable as well as newer cars being eco-friendlier. Furthermore, all
Addison Lee cars are fitted with wi-fi and phone chargers for their customers.
These are huge strengths for Addison Lee as their cars fit the brand image of
being premium. Also, their cars contain features not found with competitors.


4.0   Marketing Strategies

4.1 Market

Market segmentation involves dividing a market into smaller
segments so a business may target a specific customer market (Suttle, 2010) . There are four main segmentations
used by businesses which are: geographic, demographic, psychographic and
behavioural. Geographic segmentation segments the market into geographic
variables (NetMBA, 2003). Demographic segmentation segments the
market into demographic variables such as age, gender and race. Psychographic
segmentation segments the market according to customers lifestyle or traits (Bell, 2016). Behavioural
segmentation segments the market according to customers attitude and response
to a product. Market segmentation will allow Addison Lee to know the needs and
demands of their customers (Bhasin, 2017).

4.2 Segmenting the
Market for a Younger Demographic

Although there are forum main types of segmentation, for
this report the two selected are demographic and geographic segmentation.
Demographic segmentation can be divided into different variables particularly
age and income. A customer’s demands and needs change based on their age or
income. Many 16 to 25 year olds are either in education or in low income work
therefore they cannot be expected to afford the same privileges of the older
demographic. Furthermore, many 16 to 25 year olds choose to hire a competitor
of Addison Lee like Uber because they feel Addison Lee’s prices are too high,
therefore to attract younger demographic, reconsidering prices for 16 to 25
year olds would be realistic and viable starting point.

Geographic segmentation can involve segmenting the market
into cities. If Addison Lee were to target a young demographic by offering 16
to 25 year olds discounts or an age specific promotion it will be advisable for
Addison Lee to test out the promotion in a specific city such as London before
making it available nationwide. London would be an ideal city to trial the
promotion as Uber, which is very popular amongst the younger demographic, are
at risk of losing their license to operate in the capital, therefore many 16 to
25 year olds will be looking for an alternative private hire organisation.



The marketing mix is a set of elements used to market a
business or product. It consists of ‘7 Ps’ which are product, price, place,
promotion, process, people and physical evidence. The marketing mix allows an organisation
to determine which marketing strategy is most appropriate for their
organisation (Hill, 2016).
In this section of the report, Addison Lee’s ‘7 Ps’ will be discussed.

5.1 Product

A tangible product of Addison Lee is their cars. As
previously mentioned in this report, they only use newer cars which are well
kept and cared for. Furthermore, they offer two types off cars, a larger car
and a standard car depending on the customer’s needs, whether they have more
passengers or even if the customer wants to take their bicycle in the car with

5.2 Price

Addison Lee charge customers a
minimum fare of £7.50. Unlike Uber, Addison Lee do not operate with surge
pricing, meaning the price of the customers journey that was confirmed during
booking will not rise due to congestion or other reasons such as with Uber.
Addison Lee also offer discounted prices during off-peak hours (Addison Lee, 2017). 

5.3 Place

After initially beginning their
United Kingdom operation in London, Addison Lee now operate in 10 different
cities within the United Kingdom which include: Birmingham, Manchester,
Glasgow, Edinburgh, Liverpool and others (Addison Lee, 2016). However, this number can be expected
to rise as Addison Lee are constantly looking at where they can offer their
services next (Addison Lee, 2016).

5.4 Promotion

Addison Lee offer a variety of
sales promotions which encourage sales and raise awareness of the brand through
word of mouth. They offer specific discounts to new customers which includes
promotions such as ‘£10 off your first booking’. They also offer sales
promotions during certain periods throughout the year such as in the festive

5.5 Process

Addison Lee allows customers to
make a booking through the phone, their website or their application.
Furthermore, customers can book a car anytime from as soon as possible or up
until three months in advance. They allow customers to pay with either card or
cash, whereas some of their competitors are strictly either cash only or card

5.6 People             

Addison Lee drivers comply with a
smart dress code which represents the premium brand image of Addison Lee.
However, Addison Lee are often criticised for classing their drivers as self-employed
whereas many argue their drivers are in a “subordinate position” (Booth, 2017).

5.7 Physical Evidence

The Addison Lee mobile phone
application is available to download on both Android and iOS devices. The
application contains features which give it an advantage over its competitors
such as being able to track your driver before he arrives, selecting the car
type and knowing the price of the journey before the customer travels (Addison Lee, 2014).

5.8 Recommended Changes

To achieve a 3% growth in car
service by business by targeting 16 to 25 year olds, changes would be
recommended to price, product and promotion. A major reason many 16 to 25 year
olds opt not to travel with Addison Lee is due to the prices, there if Addison
Lee were to offer the younger demographic a fixed discount such as 20% of all
journeys up until their target date of June 2018, many will choose to travel
with Addison Lee and remain loyal customers even when the discount expires. To
make the cars more attractive for the younger demographic, Addison Lee could
install a stereo into their cars which allows customers to play their own
musical playlists throughout their journey. Finally, a possible promotion
Addison Lee could run is offering customers £5 off each journey for every 16 to
25 year old they refer to use the company.


6.0 Conclusion

Addison Lee currently have a
massive opportunity to attract many customers from all demographics due to
Uber’s current licensing troubles. If Addison Lee are to expand even further,
they should look to avoid any more negative press such as their drivers hired
self-employed as this may dampen the brand image and deter potential employees
from joining the organisation.


























Reference List

Acton, C., 2017. Employment
Status – Addison Lee drivers are workers. Online
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Addison Lee, 2014. Addison Lee Unveils Major New
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Addison Lee, 2014. Mobile Apps. Online
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Addison Lee, 2016. Cities. Online
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Addison Lee, 2016. Standard Cars. Online
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Accessed 12 2017.
Addison Lee, 2016. You Can Now Book In 4 More Cities On
The App And Web. Online
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Addison Lee, 2017. App Features. Online
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Addison Lee, 2017. Benefit from Off Peak Fares. Online

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Bell, E., 2016. Customer Segmentation. Online
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Bhasin, H., 2017. 4 types of Market segmentation and how
to segment with them?. Online
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Booth, R., 2017. Addison Lee wrongly classes drivers as
self-emplyed, tribunal rules. Online
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Carey, S., 2017. Alternatives to Uber: The best
ride-hailing apps for people that have deleted Uber, from Gett and MyTaxi to
Lyft and Grab. Online
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Hill, W., 2016. Importance of Marketing Mix in your
Marketing Strategy – Part 1. Online
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Kotler, P., 2000. Marketing Management. New Jersey:
Marketing Tutor, 2016. Marketing Environment Definition
Factors & Examples. Online
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MyMarketingCloud, 2015. The 5 Marketing Concepts. Online

Available at:
Accessed 12 2017.
NetMBA, 2003. Market Segmentation. Online
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O’Farrell, R., 2009. Environmental Business Analysis. Online

Available at:
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Oxford Learning Lab, 2012. PESTLE – Macro Environmental
Analysis. Online
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Accessed 12 2017.
Pahwa, A., 2017. Marketing Environment. Online
Available at:
Accessed 12 2017.
PESTLEanalysis, 2015. What is Environmental Analysis?. Online

Available at:
Accessed 12 2017.
Smith, R., 2017. Addison Lee is on the hunt for hundreds
more drivers in London after Uber’s licence loss. Online
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Accessed 12 2017.
Studiowide, 2010. Marketing Orientation. Online
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Suttle, R., 2010. Define Market Segmentation &
Targeting. Online
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