Definition Of Positioning According To Carol Kopp Product Di ✓ Solved

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Definition Of Positioningaccording To Carol Kopp Product Differen

Definition of Positioning According to Carol Kopp, “Product differentiation is a marketing strategy that strives to distinguish a company's products or services from the competition.” (Kopp, 2020). While differentiation refers to making products different from competitors’ products, positioning has to do with how consumers will perceive the products. For instance, with JGJ, Inc., the company’s goal is to have consumers perceive the transportation service as reliable and easy to use. A differentiation strategy to help fulfill this is to have a more user-friendly platform than our competitors and to not have to cancel any scheduled appointments.

The current transportation market rarely caters to senior citizens today. Instead, most transportation companies are looking to help the always-on-the-go citizens. Thus, JGJ, Inc’s niche market will be senior citizens looking for travel assistance to and from doctor’s appointments, grocery stores, social gatherings, etc. Their travel needs consist of two to three times a week. They are looking for ease of use, reliability, and consistency when using the service. Our target market is in the slowing-down phase of life and wishes to not have to worry about keeping up with advances in technology and the busy, chaotic lifestyle they were in while working.

The current annual sales volume for Lyft in 2020 was $2.812 billion (“Lyft”). Along with Lyft, the current annual sales volume for Uber in 2020 was $8.913 billion (“Uber”). According to Arevalo, “According to the latest estimates, for 2018, the industry was worth a massive $61.3 billion” (Arevalo, 2020).

Competitors in the market include Lyft, which is known for being the low-cost provider for ride-hailing transportation services. Lyft started focusing on price differentiation to expand their current market offering (Kiefer, 2015). One way Lyft was able to differentiate was creating Lyft Line, which allowed consumers to ride with other consumers (like a train/bus) to cut the cost of the transportation (Kiefer, 2015). Lyft is also focused on being flexible, which was apparent in the creation of Lyft Line. Another way Lyft is flexible is by offering various service classes for transportation (Davis, 2020). Lyft has also started diving into food delivery services, but not as much as the company’s top rival: Uber.

Uber, on the other hand, is a much larger transportation company than Lyft. Known for its extensive reach, Uber operates in more countries than just the US and Canada, with expansions into Central and South America, Africa, Asia, Australia, New Zealand, and the E.U (Davis, 2020). Uber also offers a variety of vehicle classes, including UberPet, and created Uber Pool, which was initiated after Lyft’s Lyft Line (Kiefer, 2015).

GoGoGrandparent has partnered with Uber and Lyft to offer transportation services for senior citizens. They have implemented a GoGoGuardian System to support their customers 24/7. However, GoGoGrandparent is more costly than the average transportation option.

Taxicab services, though, are still prevalent, especially in larger cities, where they have built a reputation as the most expensive option among ride-hailing businesses. This is partly due to how regulated taxicabs are in cities like New York, where they are considered a commodity (Bryant, 2015).

Current pricing data shows the average costs of these services. As reported by Brett Helling (2020), the average Uber cost is $25.73, Lyft costs average $19.20, and taxi fares average $29.52. Lyft is often noted for being the low-cost option, while taxicab services are recognized for their higher rates.

The projected growth rate for the transportation market is very promising, with predictions indicating it could reach between USD 218 billion and 220 billion by 2025, following a Compound Annual Growth Rate (CAGR) of approximately 19.87% (Arvelo, 2020). Such growth signifies the ongoing interest and expansion in ride-sharing services.

As the market evolves, pricing is expected to increase, potentially rising by $0.70 to $3.00 per ride in major cities, largely due to new laws regarding employee compensation (Keshner, 2019). These changes indicate that the operational costs of ride-sharing companies may escalate, resulting in higher fares for consumers.

For JGJ, Inc., the recommended positioning is to maintain a focus on the niche market of senior citizens. Keeping costs low for consumers is essential along with operational sustainability. JGJ, Inc. should explore offering pick-up routes that simplify access for seniors, by only requiring proof of age through a birth certificate.

To enhance service offerings, a mobile app should be developed alongside a telephone-based automated service to connect customers with drivers directly. Additionally, vehicle selections should cater to elderly individuals requiring medical equipment transport. Staff training is crucial to ensure employees can assist elderly passengers in safely entering and exiting vehicles.

JGJ, Inc. aims to combine ridesharing flexibility with an emphasis on transportation service quality tailored to senior citizens. Figure 1.1 illustrates the firm's strategy to provide the most affordable rates without compromising care quality.

The ideal customer profile for JGJ, Inc. features senior citizens, predominantly those over 65 years, who rely on fixed incomes through retirement savings and social security, amounting to roughly $20,000 per year (Brandon, 2021). These consumers prioritize cost-effective solutions and appreciate value propositions around cost reduction and emotional contributions (McDonald, 2016, p. 41).

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In light of the shifting dynamics within the transportation market, the concept of positioning becomes increasingly paramount for new entrants like JGJ, Inc. As Carol Kopp notes, product differentiation is vital for setting a brand apart and fostering consumer perceptions aligned with a company's mission and vision (Kopp, 2020). JGJ, Inc.'s strategy must leverage this differentiation to establish a recognizable position within a competitive marketplace.

By targeting senior citizens—a demographic often overlooked by contemporary transportation services—JGJ, Inc. can carve out a niche that prioritizes ease of use and reliability. Differentiating through user-friendly platforms and consistent appointment honors will be key (Kopp, 2020).

In examining competitors like Lyft and Uber, it is evident that operational agility and pricing strategies play crucial roles in market placement. For instance, Lyft’s price differentiation demonstrates a flexible model that allows for cost-sharing among passengers, which will naturally appeal to budget-conscious consumers (Kiefer, 2015). In contrast, Uber's extensive service portfolio including food delivery positions it as a multifaceted platform. JGJ, Inc. should consider its unique service offerings while strategizing for efficiencies that can resonate with senior travelers.

Market projections indicate substantial growth in the transportation sector, with significant investments directed towards technological advancements and service diversification. By understanding the competitive landscape—where heavy-hitters like Uber dominate while also guiding innovations through service classes—JGJ, Inc. can anticipate necessary adaptations to its positioning strategy.

As JGJ, Inc. strives for an ideal market position, key recommendations include maintaining competitive pricing that appeals to senior customers facing fixed incomes (Brandon, 2021). A mobile platform paired with attentive driver support creates a user-friendly experience essential for this cohort, thus ensuring repeat business through fostering loyalty and credibility within the community.

Ultimately, JGJ, Inc.’s success hinges on its ability to pivot and adapt within a swiftly changing landscape. Balancing affordability with quality experience is fundamental. By maintaining its focus on the target market and perpetually evaluating its service effectiveness, JGJ, Inc. can realize its positioning goals in the growing arena of transportation services tailored to seniors.

References

  • Arevalo, T. (2020). Ride-Sharing Industry: Facts, Statistics, and Trends (2020). Carsurance. Retrieved from carsurance.net
  • Brandon, E. (2021). How Much You Will Get From Social Security. U.S. News & World Report. Retrieved from money.usnews.com
  • Bryant, S. (2020). How NYC's Yellow Cab Works and Makes Money. Investopedia. Retrieved from investopedia.com
  • Davis, L. (2020). Lyft vs. Uber: What's the Difference? Investopedia. Retrieved from investopedia.com
  • Helling, B. (2020). How Much Does Uber Cost? – A Comprehensive Guide. Ridester.com. Retrieved from ridester.com
  • Keshner, A. (2019). Here's How Much More Lyft and Uber Rides Could Cost under California's Gig-Worker Law. MarketWatch. Retrieved from marketwatch.com
  • Kiefer, B. (2015). How Lyft Is Positioning Itself against Rival Uber. PR Week. Retrieved from prweek.com
  • Kopp, C. M. (2020). Understanding Product Differentiation. Investopedia. Retrieved from investopedia.com
  • McDonald, M. (2016). Malcolm McDonald on marketing planning: Understanding marketing plans and strategy (2nd ed.). Philadelphia, PA: Kogan Page.
  • The Best Way To Call Lyft & Uber Without A Smartphone. (n.d.). GoGo, GoGoGrandparent. Retrieved from gogograndparent.com

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