Introduction
In this very paper a marketing plan of Yellow cab business has been presented to show the estimated budget and costing of market advertisement and promotional of the business. At the same time, the look up cost of these specific sections has been described to show the planned expenditure in the business. Apart from the advertising and promotional cost it is important to select the promotional media of the business wisely to get maximum attention of the target demographic of the business. In the budget segment of the business it is important to take a note of the cost of the promotional media that has been introduced to promote the business to the customers. The services also have needed marketing materials to put more importance on the business to its customers. Innovative marketing materials can find new source of better marketing to say the least. Therefore in the marketing budget segment it is highly important to put light on every essential aspect including other costs associated with the business. At the very end of the business plan the pricing strategy has been mentioned that would allow maximizing the profit from the cab business. It is highly important to select a well established pricing strategy to attract more customers in the market that would maximize the market share for the cab business company. It would be interesting to select a price after making a budget of the costs regarding to marketing the business.
Marketing Budget
Marketing budget of the business is actually a planned expenditure of a number of marketing segments of the business and at the end of the day it would allow to choose pricing strategy of the said business. In case of marketing plan of Yellow Cab business it is important to concentrate on the three basic elements of marketing such as advertising and promotion related expenditure, promotion media related costs and marketing materials related expenditure.
Advertising and promotion: In order to make advertisement and promotion of yellow cab it is important to notice the present day scenario of the market and the customers’ attitudes to be analyzed specifically. In modern day time old fashioned advertisement won’t be effective and not necessary as well. Therefore it is important to be street smart in case of cab business advertising and promotion. It is important to select proper media as well. As far as advertisement has concerned in present time social networking advertisement, Google Ad word advertisement, SEO marketing strategies can be most suitable for these types of cab business. Apart from that presenting advertisement in newspaper and yellow pages can be options as well. For promotional it is important to make a significant brand for the beginning of the business. For initial advertisements and promotional cause an estimation of $12,000 can be enough per month. Apart from that in case of moving the business forward in this competitive market strategic alliances are highly recommended. For this purpose per month basis at least $6000 can be taken under consideration. For other expenditure more $6000 can be considered. In order to run the business the marketing strategies can be highly valuable as it can increase the sales to a significant level. Apart from that at present time situation when customers hate to wait for services it is important to make sure that the customers’ priority can be fulfilled at its highest expectation. That is why internet marketing can be a vital aspect for cab business to say the least. Proper technique of marketing can have its own good effect in the business by increasing the customers.
Promotion Media: Internet can be chosen as the most effective promotion media under the current market circumstances. First of all a website of the business has to be created. That means a domain and a website has to be configured through which customers can communicate with the business. Therefore a total cost of $4000 can be calculated here. At the modern era yellow cab mobile application can be introduced to communicate more clients into the business. At the same time the business can be operated by the cab drivers through laptops. Most importantly it is important to generate more and more customers towards the cab services. Internet can be the most valuable and preferred option as people now a day prefer online services that comes to their doorsteps. At present time it is not necessary to collect the consumers from moving on the roads. Currently modern communication systems provide enough sources to businesses to make contact with the clients in a regular basis. Therefore in the cab a Wi-fi GPS system can found the customers. So basically it can be seen internet must be preferred that other media as it allows more options to a business. Interestingly promotion through social networking sites, Google Ad word and smart phones application can attract more clients on a regular basis. At the same time strategic alliances with a number of other businesses can provide enough customers regularly that can make the business far bigger. Basically the cost of the maintenance of promotion can be a vital expenditure in the business in order to generate more sales and revenue (Bayne).
Marketing Materials: In order to make marketing of the cab business it is necessary to count the marketing materials and its associated cost. In this case the marketing materials are basically internet based such as website developer and maintenance department, smart phone application handling department, social networking ad post department. It is necessary to manage separate departments in the business to run it smoothly. At the same time user friendly apps and easy to access online services can be effective if it can be maintained purposefully. Therefore a number of modern marketing materials can be needed to assess the business in an effective manner. So far it has been discussed that digital materials are highly essential part in marketing prospective in this particular business (Cohen). In order to maintain such marketing materials a significant amount has to be invested to this part only that provides a genuine smooth run of the said cab business. As the people of the current era prefers such marketing it is important to take advantage of this to gain maximum attention of the customers. A good customer service can be handy in order to make the brand name renowned. At the same time some public financing and social involvement can be help to promote the business at the highest level. So such marketing materials can cost $3000 per month approximately that has to be invested to get a number of important benefits.
In the below table the marketing expense budget of the business as per the assumption of a year has been given.
Now it can be significantly said that a number of thing can be taken under consideration in the marketing. In case of making application and maintaining the same can be very costly at times. But it is important to make a basic market expense budget as shown in the above. For a number of cases the business can earn money from not only by providing services but also featured a number of advertisements of different businesses in the cab. So it can be counted as one of the extra benefit that can be utilized (Hiebing and Cooper).
Eventually it has to be mentioned that internet media of advertisement of the yellow cab business has a number of benefits to say the least. First of all it allows the users or the customers to the cabs in a easy procedure where they do not have to wait. Apart from that this sort of online marketing can allow the business operator to reach to the maximum number of users. At the same time through online customers can book cabs as per their requirement date and time and even in the night time that can be added as an extra benefit. Simultaneously some added offers can be utilized by the customers related to promotional stunts that can be impressive to motivate customers to these specific services (Luther). After making a marketing budget in the next segment of this business paper the pricing strategy has been mentioned to find out the best possible fare to take advantage of the market through this specific business.
Pricing Strategy
In the above portion the marketing budget has been calculated on yearly basis which can be effective to calculate the pricing of the services. In this case it has to assume that the yellow cab business has operated 10 cabs in the different region of the city to provide services to the customers’ daily 20 hour basis. Now as the market fare is $3-3.5 per mile from other competitor where initial amount to be given $4 the yellow cab can provide its services as cheap as $3 for initial amount as well as fare per mile. Therefore it can be configured that if a can able to run 15 hours per day with a customer on an average basis it can cover 450 miles a day. That means with 10 cabs the company can cover 4500 miles a day and if the fare will be $3 it can earn $13500 per day without calculating the initial rate. It means on monthly basis the figure can be $405000 per month. So basically in such cases the profit can be certainly maximizes. There is a number of other expenditure too associated with the business though such as taxes and service related employee payments. But basically in this way the profit margin can be maximizing that can be rest assured. From this pricing strategy one thing can be clearly stated that the business can grow day by day if online marketing can be improved in a significant manner (Parmerlee). Now if the marketing cost is merely $31000 it can be easily said there is a lot of profit for the business to deal with on monthly basis. Apart from that through this pricing strategy business operators can provide a number of offer services to its customers to gain more attention from them to grow the business more and more. A significant amount of profit can be bagged from the business if $3 per mile fare can be provided at the initial stages. It will cover all the expenses and provide maximum profit can be rest assured.
Conclusion
At the end it is important to mention for a business like yellow cab to grow at the highest level it is important to focus on the modern marketing techniques that will allow more and more clients to the business. The pricing of the fare can the adjusted to stay in the competitive market. Most of the other cab services plans and strategies can be taken under consideration to find out what segment of the business should be improved. Same time the fare should be adjusted according to the situation and the business can provide maximum facilities to the customers. Therefore after analyzing the budget it can be said $3 per mile can be good options as a fare. Finally it is important to look at the profit margin to say the least. After investing a lot of money in the advertisement and in the media in order to gain the number of clients it should be highly recommended to prepare strategies on basis of capabilities of the business. Finally at the end of the day it is essential to allow the business to grow at initial stages to certain maximum profit in a limited budget for the business.
Works cited
Bayne, Kim M. The Internet Marketing Plan. New York: Wiley, 2000. Print.
Cohen, William A. The Marketing Plan. Hoboken, NJ: J. Wiley & Sons, 2006. Print.
Hiebing, Roman G, and Scott W Cooper. The Successful Marketing Plan. New York: McGraw-Hill, 2003. Print.
Luther, William M. The Marketing Plan. New York: AMACOM, 2011. Print.
Parmerlee, David. Preparing The Marketing Plan. Lincolnwood, Ill.: NTC Business Books, 2000. Print.
