Question:

The content of the individual coursework should cover the following aspects in total of 1,500 words:

Imagine that you are part of the marketing team of the product X at company ABC, which aims at selling this product in the domestic as well as global markets. You are preparing a marketing strategy for this product in the second half of 2019. Define the properties of your product and the target markets by using the micro and macroeconomic concepts that we learned in lectures, which will be used as an input for your marketing strategy. In particular, adress the following issues:

What are the alternative scenarios with regards to the costs of production (marginal costs like labour costs, raw materials, energy)? Consider the macroeconomic expectations for the second half of 2019 and different scenarios about the macroeconomic developments and the course of the recession.
What type of a good or service is X? What is the price and income elasticity of your product? What is the cross price elasticity with respect to complementary and substitute products?
Which is the market structure? What are the possible strategies of your competitors? What will be your strategy will respect to your competitors?
Which market segments and different pricing strategies can you imagine?
Think of the developments in demand in different markets domestically and globally. How will demand develop in these markets? What is the effect of the recession on the demand for your product? How could government policies in different markets affect the demand for your product?
Prepare different scenarios about the developments in the currency markets and their effect on the price competitiveness of your company.

Solution:

1.0 Introduction

Currently, in most cities, there has been strategies set for enhancing an easy flow of people and vehicles. According to Lalos et al. (2009), one of the strategic approaches adopted is Global Positioning System (GPS) influencing urban growth and automated transport systems. To complement the growth in the cities, the service to be factored in this report is an E-hailing application to be introduced to the Taxi Industry. The service would be a Taxi platform where drivers and customers would interact to harness transport services delivery in prompt and affordable costs. The domestic market would be in Dubai, UAE. The tax business in Dubai is significantly growing with the aspect of sustainability, and smart mobility is at the core of the Dubai’s vision in becoming the smartest city in the world (Washburn et al., 2009). The global market would be the developing countries in Africa and Middle-East which are currently characterised by lower penetration of the E-hailing taxi business (Gwilliam, 2005). Penetration of the local and international markets is a critical challenge particularly in the time of recession and economic challenges. Therefore, this report would offer a market strategy of the service in the second half of 2019 through a focus on the service target markets through a reference to micro and macroeconomic concepts.

2.0 Analysis

2.1 Type of Service and Elasticities

2.1.1 Type of Service

The service is a taxi application offered to customers in Dubai and major cities of the developing countries in Africa and Middle East. This will be a strategic approach to altering the manner in which the traditional approach of operating the taxis business in Dubai (Belwal et al., 2013). The provision of the service would leverage on the already existing consumer-friendly technological developments for allowing efficient travelling.

2.1.2 Price Elasticity

In Dubai, the demand would be elastic due to the nature of the existing competition. In the industry, a relatively small change in price would be accompanied by a disproportionately larger change in demanded quantity. The rationale for this is that there are already established taxi companies in Dubai with an already set price of their services (Washburn et al., 2009). In most of the developing countries such as African countries and Middle East, the Taxi applications are still in their nascent stages and as such limited popularity (Gwilliam, 2005). In this case, the demand would be inelastic with the large change in the prices of the service would lead to a disproportionately smaller change in the demanded quantity as shown in figure 1 below……………………………………………………………………………………………………………….Please contact us to receive guidance, support and tutorial services on this assessment in full

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