Ready, Steady, Fide: Careem versus Uber in the Middle East

1) Analyse in your own words/opinion: a) segmentation (how did they dissect the market) demo-psycho-behavioral-geogra

b) targeting (which targeting strategy did they select) mass, undifferentiated differentiated, micro targeting?

c) value proposition (positioning, differentitition)

7.2 Ready, Steady, Ride: Careem versus Uber in the Middle East Real Marketing The immersion of technology Both companies had their own competicar seats. Career's operational model and its within our lives has made pos- tive advantages. Uber was a well-established generous" value proposition blends well with able not only to deliver customer international company with a strong reputathe Middle Eastem context. Key features of its value more efficiently in B2B and tion and track record of success. On the model include the folowing: B2C exchanges but has also made other hand, Career was the local favorite 1. Customer call center: A large popu- it much easier to have peer-to-peer and launched first in the regional markets, lation in the Middle East prefers to call (P2P) transactions. This concept was so it was more trustworthy. In the UAE, the instead of using apps, and Career buit brought into the transport sector by Uber, private-taxi sector is highly regulated, espe an entire call center for bookings and re- which created a digital app-based platform caly with regard to pricing and drivers' licons- porting issues to connect people who needed a reliable ride ing requirements. For instance, in the UAE, 2 Pay by cash: This provision addressed with people looking to earn money from their the law requires private-taxi companies to the population's general antipathy to- car. Although the service they provide custom- operate with a minimum of 30 percent higher ward credit cards and their preference ers is not a new one, their innovative market- fare than public taxis. This makes the private for cash transactions ing and targeting strategies created a new sector taxi services more of a luxury in this 3. Careem's own location database: burgeoning segment, with the result that its market, with both Uber and Career trying to The Google Maps in the Middle East is service concept has become a generic term compete and differentiate against each other. not very accurate and there are frequent "Uberfication." Career aims to be the largest "mover road works, so Career built its own The concept expanded rapidly to other of people in the wider MENA region, from database of locations. This worked well parts of the world, with Uber successfully Pakistan to Turkey. The brand name worked for the later booking option, which is a establishing itself as the leader in most particularly well in the UAE and Middle East. unique feature of Carcem. global markets. Uber has now moved to 376 The word "Car-eem" is a play on a car-based 4. Book for someone else: This worked cities worldwide and has a net value of $50 service, but it is also derived from the Arabic well in cases where bookings were made billion, making it the fastest start-up ever to word "Kareem," which means "generous. This by secretaries for bosses or clients and get to that value in such a short amount of communicates the value proposition of Career also for school pickups. time. However, in the Middle East, Uber's very effectivaly as a company that takes good 5. Captain call center: A centralized cal app-based taxi-booking concept was ad- care of its customers and tries to do more, with center helped in coordinating and com. opled effectively and pre-emptively by a big heart. This blended English-Arabic brand municating with the customers, ensuring Careem, a local start-up, before Uber could worked well to target the large multicultural better security and privacy of customer enter the region. It has since given tough expat population in the UAE and also helped information competition to the global leader to position it as a home-grown local brand for 6 Captain Loyalty: A four-tiered loyalty In the Middle East, the Uberfication of the the wider Arab-speaking consumers through points system ensured minimum samning transport sector was started in 2012 by two out the Middle East. Career drivers are called for the drivers and that there would be entrepreneurs, Mudassir Sheikha and Magus captains, and it differentiates itself by saying more cars on the roads for bookings and Olsson. The former McKinsey consultants that where other companies call themselves pickupe. launched the app-based ride-hailing service limo services, Careen has a nde for everyone. Career in the city of Dubai in the UAE. Careem The market coverage is among country's most successful start-up strategy used by Career stories, with a 30 percent growth month on is to offer differentiated month. In just four years, has expanded to services to different cus 44 cities across 10 countries in the region and tomers by adapting to the claims to have over B milion registered users. local needs. For exam. Shakha and Olsson's story is not very difple, in Dubai, "Economy ferent from that of Kalanick and Camp. The Careem offers budget Career founders say that they were looking taxis, Business" and "First to do something meaningful and were looking class options are high-end for opportunities. As consultants, both of them luxury rides and "MAX traveled a lot for work and felt that there was cars are SUVs that can seat a gap in the region in finding quick, efficient, a larger number of people and riable means of transportation-some- "Ameera" offers ladies thing like Careem. In 2013, the competitive only rides with a woman landscape of private tax hining in the MENA chauffer. "Careads allow region charged as Uber also entered the re: parents to order books Uber has already found competition in many of the regions gion by making its debut in the UAE. By then, free of charge through the it seeks to expand into, often because of the very model it however, Careers already had the first-mover career app. "Careem pioneered advantage. kids offers cars with baby focusfechnology klamy Stock Photo CHAPTER 7 Customer Value-Driven Marketing Strategy 235 Many of these aspects are difficult past the UAE has been the main battle expand aggressively to more cities and to incorporate in Uber's global model ground for Uber and Careem in the re even add more differentiated services in However, a score-based study in the UAE gion, both companies are now looking to their offerings. found that, Overall, both Uber and Careem score similarly on aspects like the app. Source: Nich Page, Corcorn vs Ubatbrak media October 23, 2016. epd/www.bra.com.ar cars, booking process, prices, free rides, wher?page-1, sed December 18, 2016: Frank Kane "Gentlemen Start Your Engines. It's Uber Vs Career The and community service. Uber scored more National, November 24, 2015 //www.thentical buses technology gentlemen-start your engines uberschrem Caram website, http://www.careem.com code comed December 18, 2016 N Kr. points for the app, prices, and free rides, In the Driving Seat: Caruan. Arabian Business, June 92015. http://www.ambiar business.com-driving seat and Careem soored better on certain as- arom-506622.html and December 18, 2016: Uber website https://www.ber.com our story accessed pects of the cars, the booking process, December 15, 2016: Mustafa Al Zarooni, "Uber in UAE Operating in Legal Vacuum Clee Times online, 2018, and community service. Although in the http://www.khstmes.comnation transportiere-operating-r-tegal-vacuum sccessed March 15, 2018. companies, each successfully occupying different positions. The important thing is that each company must develop its own winning positioning strategy, one that makes the company special to its target consumers. Developing a Positioning Statement Positioning statement Company and brand positioning should be summed up in a positioning statement A statement that summarizes company The statement should follow the form: To (target segment and need our (brand) is or brand positioning using this form: To (concept) that (point of difference). Here is an example using the popular digital target segment and need our brand is information management application Evernote: "To busy multitaskers who need help (concept that point of difference remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the web." Note that the positioning statement first states the product's membership in a category (digital content manage EVERNOTE ment application) and then shows its point of difference from other members Remember everything. of the category (easily capture moments and ideas and remember them later). Evernote helps you remember every thing" by letting you take notes, cap- ture photos, create to-do lists, and re- cord voice reminders and then makes them easy to find and access using just about any device, anywhere at home, at work, or on the go. Placing a brand in a specific cat- Capture anything Access anywhere Find things fast egory suggests similarities that it might share with other products in the cate- gory. But the case for the brand's super- GIMTE IS. , ority is made on its points of difference For example, the U.S. Postal Service ships packages just like UPS and FedEx, Positioning statement Evernote is positioned as a digital content management but it differentiates its Priority Mail from application that helps busy people to capture and remember moments and ideas and find competitors with convenient, low-price, them fast later. lat-rate shipping boxes and envelopes. Evernote Carporation "If it fits, it ships," promises USPS. G. Communicating and Delivering the Chosen Position Once it has chosen a position, the company must take strong steps to deliver and commu- nicate the desired position to its target consumers. All the company's marketing mix efforts must support the positioning strategy Positioning the company calls for concrete action, not just talk. If the company decides to build a position on better quality and service, it must first deliver that position. Designing 236 PART 3 Designing a Customer Value-Driven Strategy and Mix the marketing mix--product, price, place, and promotion-involves working out the tacti- cal details of the positioning strategy. Thus, a firm that seizes on a more-for-more position knows that it must produce high-quality products, charge a high price, distribute through high-quality dealers, and advertise in high-quality media. It must hire and train more ser- vice people, find retailers that have a good reputation for service, and develop sales and advertising content that supports its superior offer. This is the only way to build a consis tent and believable more-for-more position Companies often find it easier to come up with a good positioning strategy than to implement it. Establishing a position or changing one usually takes a long time. In contrast, positions that have taken years to build can quickly be lost. Once a company has built the desired position, it must take care to maintain the position through consistent performance and communication. It must closely monitor and adapt the position over time to match changes in consumer needs and competitors' strategies. However, the company should avoid abrupt changes that might confuse consumers. Instead, a product's position should evolve gradually as it adapts to the ever-changing marketing environment