The name of Fastaxi, for years of leadership and experiences in the transport service, is very well positioned in the minds of the company's customers and employees. However, the division that this company has in the capital of its country is entitled Taxitrans and in this way it is transmitted to customers. This is the consequence for which the clients of the capital (the most important for the company) often do not identify Fastaxi and Taxitrans as the same company. For this reason, the company decided to change the name of the Capital Division to Fastaxi. However, the name change requires an effective positioning campaign to dim and replace the other image.
Mr. Juan Luis Gonzáles, Marketing specialist, was appointed to the Capital's Fastaxi Division with a view to directing its Marketing department and carrying out this important task for the company.
Mr. Gonzáles, shortly after joining the division, realized that there is no marketing structure by agency and that is why the Commercial Department of the Division, which was created recently, has only dedicated itself to covering the most difficult tasks. urgent: respond to specific requests for quotes, among others, which are far from responding to their duties.
All this implies that the division does not have a marketing strategy projected towards the market in the medium and long term and supported by an in-depth market study that contains accurate and reliable information on the demand of the different tourist segments throughout the whole year.
Despite the fact that there are sales promoters or representatives at the base, they are not linked to each other, nor do they have a primary direction that unites them around the agency's marketing objectives.
Mr. Gonzáles set about collecting the greatest amount of information about the division to carry out the marketing strategy.
Report
The Capital Fastaxi Division, belonging to the tourist transport company of the same name, has as its corporate purpose the provision, promotion and commercialization of transport services, mainly tourism, by minibuses and taxis, with high efficiency and competitive quality, establish relationships with national and foreign travel agencies to market taxi and minibus services abroad and within the country.
The Fastaxi Division's portfolio of services is made up of pike services, services to institutions, collection, events and weddings. The services are provided in luxury, economic, tourist cars and minibuses. The modalities in which these services are provided can be: chauffeured cars, transfers, excursions, city tours and optional.
The Division has 938 workers. All drivers have at least the first level of English. The educational level is fundamentally medium. They all have vast experience in this sector. In the study of the competition and by the criteria received from the wholesale customers, the drivers of the Fastaxi division stand out for their professionalism.
The weight of wholesale customers (pay on credit) increases in the months of low tourism (24% -33%) when with cash collection the opposite happens (67% -75%).
The division has the largest fleet of vehicles in the entire company, as well as the largest among the competition.
According to the sales and comfort rates of the cars, the park is divided into different classes:
1- Economic - 83
2- Tourist - 236
3- Luxury –102
4- Family - 58
The weight of the promotion to date, rests primarily on drivers, who by the mouth / ear method, convey the advantages of the market.
Drivers are an important link in the information, as they are the first to notice the successes and mistakes in commercial actions.
In general, the points of sale are considered static and their potential is not fully exploited, since, for example, they are not promoted at the points of sale, failing to cover the entire environment.
Macroenvironment
1- Demographic: There is evidence of growth in foreign visitors each year.
2- Economic: there is a favorable revival of the national economy due to factors such as: the growth of tourism, international events, stocks of firms, etc. However, there are also negative influences such as: high exchange rate, financial limitations, poor infrastructure, etc.
3- Ecological: They are not affected by this variable.
4- Technological: Current trends in technology for cars vary rapidly, forcing companies to adapt to these changes to be competitive.
5- Legal: Some regulations regarding prices do not allow adequate flexibility.
Strategy
There is no marketing strategy, but they have human resources capable of articulating it. There is also no positioning strategy. The division has not segmented the market or performed a cost / effectiveness analysis.
customers
1- Foreign, temporary and permanent visitors
2- National
3- Institutional Clients
There is a need to strengthen customer feedback. Old clients have been recovered and new ones added. The contracted services have high and low seasons. They can be hired by personal decision or by third parties.
Target segment
The most attractive segment is that of foreign visitors and within them individual tourists since they generate a high volume of sales and do not tend to negotiate.
Competition
- Volume of income: companies with the highest turnover are Fastaxi, Pantaxi, Taxitur. It has lost market share in relation to some competing companies such as Pantaxi. Fastaxi is losing the leadership, leaving room mainly for Pantaxi, which is evidenced in the loss of the market share. Pantaxi is at the top of the total number of passengers transported in the country. The Fastaxi points of sale have been affected by the presence of other carriers, the main competitors are Pantaxi, Taxitur, however the arrival of new brands such as Contaxi, Fénix, Transave, Micar must be taken into account. transported, except in Fastaxi, has increased considerably. Taxitur and Pantaxi were the only ones that exceeded the levels of income per car generated by the transport companies.Despite the fact that Fastaxi has established a wide network of points of sale, these have been affected by the strengthening of competition.
Substitute Product Threats
- Within this sphere are the renters, including the rent from Fastaxi, airlines such as Aereogavi and Aerotaxi, the VAIVEN and the Cotaxis of the Grantran group.
There is a threat of new income (entities) interested in penetrating the market or expanding.
Characterization of the marketing variables in the Fastaxi division
1- Services
Basic services:
(Fastaxi has the conditions created) expected benefit: comfortable time in transport Image Guarantee to end the trip, etc.
Tangible Services:
a) Contact personnel: does not meet all the requirements that the client expects of them.
b) Brand: Clients want it to be recognized internationally or at least nationally. The rebranding has created confusion for customers.
c) Equipment: Clients expect them to be: safe, internationally recognized, clean and comfortable, fast, that give an image of the consumer's social status, economic, luxurious, etc. These elements are mostly fulfilled, with the exception in many cases of cleaning.
d) Rates: Customers seek high, average and economic rates according to type of
vehicle and modality, which corresponds to the quality of the service, which finds a distinction between the different service modalities, which are dominated by supply and demand and which may be negotiable.
Although the company Fastaxi values services taking into account many of the above variables, it has not been the most appropriate because they overvalue the services they offer and, consequently, all analyzes are not adequate.
Increased service:
(Payment methods vary considering the distribution channel)
a) Wholesaler and retailer: concession of terms in the payment of services.
b) Direct: at the moment.
The company tends to reject the first form of payment, in contradiction to the demands of an important part of Tour Operators and foreign Travel Agencies.
Regarding the marketing mix, the objectives are not broken down by service lines, but rather general economic objectives are planned, which are met. There is a criterion that the company must expand its linear minibus rental services, as it does not meet all the demand for it. There is no open offer of wedding services due to lack of promotion. They are considered to be removed.
2- Price
They are fixed prices for vehicle lines, however the company grants significant discounts of up to 30 and 40% to the public price, but always respecting the balance point. However, customers express an interest in lowering prices, especially in services that have intermediaries. On the other hand, the company does not know if the demand is elastic or not and does not have the experience curve established.
3- Distribution
Wholesale Channel: constituted by national travel agencies. It is the most important (49% of sales).
Retail channel: represented by the travel agencies themselves (4%).
Direct channel (37%): through sales points.
4- Sales Forces
There are no established objectives or strategies in this regard, nor was it designed on the basis of any specialization criteria demanded by the market. It is appreciated that the competition has structured the sales activity with greater rigor. The staff is motivated but lacks sufficient preparation. The Sales and Advertising Promotion is not carried out by the division, it is structured and designed by the parent company. The effectiveness of that activity is not known.
Questions:
1- Based on the above data and starting from the SWOT matrix, it develops a marketing strategy that makes it easier for the division to change its name and strengthen itself in the market.
2- Do you consider that it is necessary to establish a marketing system for the division or could it take that of the company in general? Argue. If you. You decide to create your own system, what parameters would you take into account?
