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1. Stage – Gate model 2. Introduction of Uber 3. Case of UberPOP in Netherlands 4. Lesson learnt from Uber Karl T. Ulrich and Steven D. Eppinger’s model: Better to applied for tangible products Focus on product design Functional oriented Philip Kotler’s model Focus on marketing perspective of the product Does not include the information on how the product would be evaluated
TOPIC: AN ANALYSIS ON UBER’S PRODUCT DEVELOPMENT PROCESS AND ITS APPLICATION IN VIETNAM Candidate Nam: Tran Phuong Anh Student ID: 1211150014 OUTLINE Stage – Gate model Introduction of Uber Case of UberPOP in Netherlands Lesson learnt from Uber Stage – Gate model Stage-Gate model • Karl T Ulrich and Steven D Eppinger’s model: - Better to applied for tangible products - Focus on product design - Functional - oriented Figure 1.1: Key activities and responsibilities of different functions within organization (Ulrich and Eppinger 2012) Stage – Gate model • Philip Kotler’s model - Focus on marketing perspective of the product - Does not include the information on how the product would be evaluated Idea Generation Idea Screening Commercialisation Test Marketing Figure 1.2: New Product Development (Kotler 2006) Concept Development Marketing Strategy and Testing Development Product Development Business Analysis Stage – Gate model • Robert Cooper’s Stage – Gate model: Figure 1.3: The typical Stage - Gate model (Cooper 2001) Stage – Gate model • Robert Cooper’s Stage – Gate model: - Most likely to make alteration in order to apply to the practice of the company thanks to its generalization characteristic - Emphasize the importance of the “gates”, which help to decide whether to cancel the project or not after each “stage” -> save efforts and money Scoping Building Business Case Preliminary market assessment Analysis on user’s needs and wants Preliminary technical assessment Competitive advantage Preliminary financial and business assessment Technical assessment Case of UberPOP in Netherlands Dutch market analysis: - Total revenue generated is high - People prefer using taxi due to the flexibility in time and route Figure 3.1: Dutch government cost per passenger (Davids et al 2014) Case of UberPOP in Netherlands Uber’s competitive advantage: - Low Price - Effective transportation solution Average number of person in car UberPOP average 1.9 Netherland average 1.4 0.45 0.33 0.12 0.1 Figure 3.2: Netherlands's average number of person in car (Davids et al 2014) Case of UberPOP in Netherlands • Training drivers: 30% 40% 5% 25% Figure 3.3: Proportion of UberPOP's driver education (Davids et al 2014) Bachelor MBO Other Master Case of UberPOP in Netherlands • Pricing Figure 3.4: Uber's pricing overview (Leeuwen 2014) PRE-LAUNCH Public Affair • • Personal outreach to all key policymakers in The Public Relation • Personal outreach to tier media relations Exclusive Netherlands story to one newspaper and one TV/Radio station to Make sure they get all information from us before ensure embargo they read it in the press • Strategy • • Coordinated strategy development PR & PA Preparation of all necessary materials and means Broad press outreach on the day of launch LAUNCH Press • Press release + infographic + position paper Policy stakeholders • • Stakeholder letter + infographic + position paper Physical mailig and e-mail Users • • • • E-mail to selected users Blog post launch day Blog post with UberPOP facts day after Blog post Rider POST LAUNCH Press • Message discipline: we stick with our visionary Policy makers • message • Work with friendly politicians and policymakers to guide their reactions Push ambassadors and professors with supportive messages • Personal outreach to tier policymakers to drive message home Figure 3.5: Uber's communication phases - stakeholders - activities Online • • Manage online discussion Feed positive messages Lesson learnt from Uber Lesson learnt from Uber • Current practices of taxi industry in Vietnam: - High taxi fare - Price sensitivity is high - Market is highly scattered Lesson learnt from Uber • Adapt to the competitive environment • Be customer-oriented • Include drivers in product development process • Make use of media channel effectively • Have good strategy to cut down the cost