Marketing Mix Of Ola Cabs and 7Ps (Updated 2024)

The Marketing mix of Ola Cabs analyses the 7Ps of Ola Cabs, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Ola Cabs. Ola Cabs is a private company of Indian origins. Ola is a trade name and operates under its parent company, ANI Technologies Private Limited. It is associated with the logistics and technology industry as it has ani technologies that deal with transport facilities. Ola Cabs was founded in 2010, on 3 December, by co-founders Ankit Bhati and Bhavish Aggarwal. The company has taken the help of the latest technology to bring forth a fast and efficient service for hiring cabs. Some of its competitors in the market are as follows-

• Uber Cabs
• Easycabs
• Meru Cabs
• Carpooling Services
• Unorganized players

About Ola Cabs

• Type: Transportation company
• Industry: Transportation
• Founded: 3 December 2010
• Founder: Bhavish Aggarwal and Ankit Bhati
• Headquarters: Bangalore, India
• Area served: India, Australia, New Zealand, and the United States
• Key people: Bhavish Aggarwal (Chairman) and Bhavish Aggarwal (CEO)
• Number of employees: 100,000

Ola Cabs Product Strategy

Ola Cabs is a mobile app used as a service provider for personal transportation. It has revolutionized the concept of traveling; earlier, hiring taxis from the roads was harassment, but now it has become hassle-free as one can easily make a booking at their convenience without stepping out. With an evolving marketing mix, Ola Cabs extends its value proposition beyond individual customers by acquiring new markets. Ola acquired a bus shuttle service, which offers a comprehensive transportation solution that caters to diverse customer needs.

The new Product Mix of Ola Cabs in 2024 is as follows (Source).

1. Various Ride Options: Ola provides multiple services, including Ola Mini, Ola Sedan, Ola Prime, Ola Rental, and Ola Outstation. Each service caters to different customer preferences, from economical rides to more premium and luxurious travel options.
2. Ola Corporate Services: This addition targets corporate clients, offering services that facilitate travel expense management and ensure employee safety.
3. Ola Money: A digital wallet service that simplifies payment processes for rides.
4. Auto Services: Besides car services, Ola has successfully incorporated auto rickshaws into its offerings, expanding its reach and service variety.
5. Ola Pink: A service specifically designed for women’s safety, highlighting Ola’s focus on customer-specific needs.

Ola Cabs Pricing Strategy

Ola Cabs’ pricing strategy is a multifaceted approach tailored to maintain competitive advantage, cater to customers across diverse customer segments, and adapt to dynamic market conditions. Here’s an in-depth look at their pricing strategy:

1. Competitive Pricing: Ola Cabs employs a competitive pricing strategy, closely monitoring and responding to the pricing models of critical competitors like Uber. This strategy ensures that Ola remains an attractive option for cost-conscious customers.
2. Dynamic Pricing Model: Ola utilizes a dynamic pricing model, often called surge pricing. This model adjusts prices in real-time based on demand and supply conditions. During peak hours or in high-demand areas, prices may increase, which helps manage the demand and incentivizes more drivers to be available.
3. Segmented Pricing Approach: Ola offers a range of services from budget (like Ola Mini and Micro) to premium (like Ola Prime) options. This segmentation allows for varied pricing structures, catering to different customer needs and willingness to pay.
4. Promotional Offers and Discounts: To attract new users and retain existing ones, Ola frequently introduces promotional offers, discounts, and loyalty programs. This approach helps in enhancing customer acquisition and retention.
5. Geographical Pricing Strategy: Recognizing the diverse economic conditions across regions, Ola tailors its pricing strategy to align with local purchasing power and competitive dynamics. This geographical pricing ensures market relevance and accessibility in different cities and countries.

Ola Cabs Place Strategy

Ola Cabs’ place strategy, focusing on the distribution of marketing and availability of its services, can be outlined as follows:

1. Online Platform Presence: Ola primarily operates through an online network, which includes a dedicated website and a user-friendly mobile app. This digital approach ensures easy accessibility for customers to book rides.
2. Initial Operations in Major Cities: In Mumbai, Ola strategically expanded its base to Bangalore, using these metropolitan areas as springboards to establish its presence in major urban centers.
3. Pan-India Expansion: Ola rapidly extended its services across India, covering over a hundred cities. This comprehensive coverage makes Ola one of the most accessible ride-hailing services in the country.
4. International Market Entry: Beyond India, Ola has ventured into international markets like Australia, the United Kingdom, and New Zealand. This global expansion strategy caters to a broader customer base and diversifies its market presence.
5. Hybrid Distribution System: Ola’s channel design includes direct (through its app and website) and indirect elements (partnerships with various stakeholders in different regions), creating a hybrid model that maximizes reach and efficiency.

Ola Cabs Promotion Strategy

Ola Cabs is the fastest-growing company in India related to rental cars because it has a first-mover advantage over other companies. It has adopted an extensive marketing strategy and policy to create high and positive brand awareness amongst consumers. The company has taken the help of every available medium, digital and print, via SMS on mobiles, magazines, newspapers, and billboards. It has also used social media platforms to garner maximum coverage via Twitter, Facebook, Blogs, and Instagram. Actress Gul Panag has been associated with this brand and handed over the keys to Ola cab to its driver at a promotional event. The company offers incentives like free rides, 50% discounted rides, rupees 5o off, free first rides for new members, and promo codes to increase its customer base.

Some Recent Video ads and Print ads for Ola Cabs are:

Ola Cabs People Strategy

The “People” component of the Service Marketing Mix is crucial for service-based companies like Ola Cabs, as it directly impacts customer experience and satisfaction. Here are key points regarding the “People” aspect of Ola Cabs:

1. Driver Partners as Brand Ambassadors: Ola’s driver partners are the primary point of contact for customers and thus serve as the face of the brand. Their professionalism, behavior, and service quality significantly influence customer perceptions and loyalty.
2. Training and Development: Ola invests in training its driver partners on various fronts, including customer service, safe driving practices, and the use of technology. This ensures a consistent and high-quality service experience for customers.
3. Customer Service Team: Ola has a dedicated customer service team that handles queries, complaints, and feedback. This team’s efficiency, empathy, and responsiveness are critical to customer satisfaction and retention.
4. Diverse Workforce: The company employs a diverse workforce across its operational, marketing, and administrative departments. This diversity fosters innovation and helps in understanding the needs of a diverse customer base.
5. Employee Satisfaction and Retention: Ola focuses on employee satisfaction and retention strategies. Happy employees are likelier to deliver better customer service, contributing positively to the brand’s reputation.
6. Technology Interface: The people behind Ola’s technology platform are crucial. They ensure the app is user-friendly, secure, and efficient, facilitating a seamless interface between the drivers and customers.
7. Feedback Mechanism: Ola’s feedback mechanism allows customers to rate their ride experience. This feedback assesses and improves driver performance, ensuring accountability and continuous service improvement.
8. Incentive Programs: Ola has incentive programs for its driver partners, encouraging them to provide excellent service. These incentives are based on customer ratings, the number of rides completed, and adherence to company policies.
9. Leadership and Vision: The leadership team at Ola, including its founders and top management, plays a significant role in shaping the company culture, vision, and strategies. Their vision for innovation and customer satisfaction trickles down to every level of the organization.
10. Community Engagement: Ola engages with the communities in which it operates through various CSR activities. This helps build a positive brand image and fosters a sense of responsibility and pride among employees and driver partners.

Ola Cabs Process Strategy

The “Process” element of the Service Marketing Mix for Ola Cabs encompasses the procedures, mechanisms, and flow of activities by which the service is delivered. This aspect is crucial in determining the efficiency and satisfaction level of the customer experience. Here are key points regarding the “Process” of Ola Cabs:

1. Booking Process: Ola’s service process begins with a user-friendly booking system through its app. Customers can book a ride with just a few taps, choose their pickup and drop-off locations, and select the type of ride that suits their needs.
2. Matching Algorithm: Upon booking, Ola’s algorithm efficiently matches the customer with a nearby driver, optimizing for the shortest wait time. This sophisticated matching system considers location, traffic conditions, and driver availability.
3. Driver Confirmation and Dispatch: Once a match is found, the driver is notified of the new ride request and can accept it. After acceptance, the customer is notified of the driver’s details, including name, vehicle type, and estimated arrival time.
4. Ride Tracking and Safety Features: The app allows customers to track their ride in real-time and share their ride status with trusted contacts for added safety. Ola also has integrated safety features, such as an emergency button.
5. Payment Process: Ola offers multiple payment options, including cash, credit/debit cards, and Ola Money (the brand’s digital wallet), enabling a seamless transaction process at the end of the ride.
6. Customer Feedback Mechanism: Customers are prompted to rate their experience and provide feedback after the ride. This process is crucial for quality control and helps Ola monitor driver performance and customer satisfaction.
7. Driver Support and Dispute Resolution: Ola has a structured process for addressing driver queries and disputes, including fare issues, customer complaints, and payment discrepancies. This ensures that drivers are supported and grievances are addressed promptly.
8. Cancellation and Refund Process: Ola has clear policies and processes for ride cancellations and refunds, ensuring transparency and fairness for both customers and drivers.
9. Training and Onboarding for Drivers: New drivers undergo a thorough onboarding process, including background checks, vehicle inspections, and training sessions on customer service, app usage, and safety protocols.
10. Continuous Improvement: Ola continuously updates its processes based on customer feedback, technological advancements, and operational challenges. This commitment to constant improvement ensures that the service remains efficient, customer-friendly, and competitive.

Ola Cabs Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered and any tangible elements that facilitate or communicate the service quality. Physical evidence shapes perceptions and trust for a service-based company like Ola Cabs, even though the core product is a service. Here are key points regarding the Physical Evidence of Ola Cabs:

1. Branding on Vehicles: Ola cabs often feature identifiable branding, such as stickers or logos on the vehicles. This visual branding provides physical evidence of the service and helps customers quickly identify their ride.
2. Driver Uniforms: In some services or at certain events, Ola drivers may wear branded uniforms or badges. This adds to the professionalism and makes it easier for customers to recognize Ola’s drivers.
3. Mobile App Interface: The Ola mobile app is significant physical evidence. Its design, usability, and features reflect the brand’s quality and attention to customer service. A user-friendly interface enhances customer satisfaction and trust.
4. Payment and Billing Statements: Digital receipts, payment confirmations, and detailed billing statements provide customers with tangible proof of the transaction and service availed. They also serve as a record of the service quality and pricing transparency.
5. Customer Support and Communication: Email confirmations, support tickets, and SMS notifications are physical evidence of Ola’s customer service quality and responsiveness. These communications provide assurance and support to customers before, during, and after their ride.
6. Cleanliness and Maintenance of Vehicles: The condition of the vehicles directly impacts customer perceptions. Well-maintained and clean cars indicate high service standards and care for customer comfort and safety.
7. Safety Features: Tangible safety features within the app, such as SOS buttons, ride tracking, and sharing ride details with family or friends, provide physical evidence of Ola’s commitment to customer safety.
8. Ratings and Reviews: The ratings and reviews feature within the Ola app offers customers tangible evidence of previous service experiences, helping them set expectations and make informed choices.
9. Promotional Materials: Physical items like car accessories, air fresheners, or even water bottles provided in some Ola cabs can enhance the customer experience and serve as tangible reminders of the brand.
10. Website and Social Media Presence: Ola’s online presence, through its website and social media platforms, is physical evidence of its brand persona, values, and customer engagement strategies. Testimonials, service descriptions, and user interactions on these platforms contribute to the tangible elements customers associate with Ola.

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