Marketing Plan

AFCO

Urban air mobility

Under supervision of
Prof. Rami Khodir
Prepared By:
1. Ahmed Said Ahmed Mansour
2. Asmaa Samih Abd Elwahab
3. Ahmed Mesbah Mohamed
4. Elsayed Sabry Yousif
5. Mohamed Mahmoud Alsayed
6. Mansour Ibrahim Mansour
7. Saad Eldin Saad Abd Elfatah

Group C

GOV 06
 Table of Contents

1. Business Overview ............................................................................... 1

2. Market Overview ................................................................................... 1

2.1. Product/Service Information .................................................................... 4

2.2. Market Information ................................................................................. 3

2.3. Customer Information ............................................................................. 2

3. Objectives ............................................................................................. 4
4. Strategy ................................................................................................. 5

4.1. Product .................................................................................................. 5

4.2. Pricing ................................................................................................... 6

4.3. Distribution............................................................................................. 7

4.4. Promotion .............................................................................................. 7

4.5. Operational Plan ........................................................................................ 9

4.6. Sales promotion ................................................................................... 10

4.7. Advertising ........................................................................................... 10

4.8. Public relations .................................................................................... 10

5. Budgets ............................................................................................... 12
6. Action Plan .......................................................................................... 13
7. Supporting Documentation ................................................................ 14
1. Business Overview
 Business Definition
AFCO (Arrive Fast and Comfortable) is a new innovative
company that provides a service for delivery and transportation
using commercial urban aircrafts which makes short flights on
demand to deliver Cargo or individual transportation, typically
flown without a pilot.

 Vision
Our vision is that we conquer the sky delivery market and to be
market leader in the field of private and shared transportation as
following:
 By 2020 an automated drone crafts will be used to transport
medical supplies between all hospitals, laboratories and
pharmacies.
 By 2025 drones will transport all kind of small packages (including
food delivery – cargo – documents …..).
 The company will add 100 air drone in each year for every region
to reach 1000 each by 2025.
 It is estimated to serve about 20000 institution/individuals with
about 350000 delivery in first year
 By 2025 a predetermined huge buildings will be used for the
launch of the second phase as an Air Bus stations.
 By 2030 a complete “Air Bus” flights will be working for
all lines in the city.
 Finally by 2030 the initial launch of the Air Taxi will be available
as a prototype for a selective number of rich people.

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2. Market Overview
World airport Shuttle and Air Taxi markets are viable markets with a
significant total available market value of $500B at the market entry price
points in the best-case unconstrained scenario.
There are more than 70 manufacturers worldwide including Boeing,
Airbus and Bell Helicopters with over $1 billion investment made as of
September 2018, high profile events organized around the world in 2018
e.g. UBER Elevate (1200+ attendance, 10k+ online participants) .

The demand for air mobility is increasing. This larger flow of passengers
combined with more strict security measures results in congestions at the
major airports, resulting in irritations of business travelers. But on the
road an increase of congestion is remarked as well and transport by rail
only reaches the bigger cities. A solution for these developments is an air
mobility service: on demand point to point business aviation for short
distances. This air taxi/bus service results in shorter waiting times at
airports, the possibility of choosing the departure time, pick up and
deliver at an airport closer to the destination.

2.1. Service Information

AFCO provides three types or category of services as follow:

Use case 1 –Last-mile delivery

Rapid delivery of packages from local distribution’s hubs to a
dedicated receiving vessel.
Deliveries are unscheduled and routed as online orders are
placed.

Use case 2 –Air Bus

Resembles public transit options such as subways and buses, with pre-
determined routes, regular schedules, and set stops in high traffic areas
throughout each city. Vehicles are autonomously operated and can
accommodate 2 to 5 passengers at a time, with an average load of 3
passengers per trip.

Use case 3 –Air taxi

The air taxi use case is a near-ubiquitous ridesharing operation that
allows consumers to call vertical takeoff and landing aircraft to their
desired pickup locations and specify drop-off destinations at rooftops
throughout a given city. Rides are unscheduled and on demand like
ridesharing applications today, with an average load of 1 passenger per
trip.

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 2.2. Customer Information
Egypt has a population of 100 million with a Number of journeys by
public transportation yearly exceeds 2 in addition to almost 9 million
private cars.
Egypt also is a huge market of delivery with a nearly 500 thousands daily
orders at least in Cairo and Alexandria.

So, AFCO plans to target the following groups in Cairo & Alexandria:
 Taxies, similar transportations riders and private car owners which
are estimated to be almost 50 million rides yearly.
 Car owners which is almost 9 million private car.
 Upper and rich class which is about 20% of the population which
means nearly 20 million people with 18900 millionaire in 2018,
concentrate mainly in Cairo.
 Adventure lovers.
 Emergency cases.
 Tourists
 Delivery orders

Customer Insight:
Customer highly appreciate the following:
• Fast transportation & packages delivery: to overcome roads
crowding problem.
• Convenience: Having the transportation ready to pick up the weary
traveler has significant value.
• Reliability: To be able to rely on the timing and navigation process.
• Professionalism: The targeted customers have a high expectation
for customer service.
• Safety: to feel safe in all ways is the most important need.

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2.3. Market Information

Egypt is one of the most crowded countries in the world with number of
cars exceeds 12 million car, concentrated mostly in Cairo and
Alexandria.
With this massive number of Vehicles and the huge number of
passengers exceeding 2 billion yearly, the roads became very crowded
and the time consuming to reach a place inside a city like Cairo has
multiplied by many hours.
People don’t have alternative options for travelling other than ordinary
ground transportations. Also, at the field of delivery ( food and other
packages), it also became too slow. So the idea of urban air mobility is
the innovative solution for this problem. However, on the other hand,
people still have their fears of flights and don’t trust automated pilot air
crafts yet, and that is all beside it’s high costs and prices.

competition:
 Current competition:
Which is the ground transportation (Subways, Public buses, Mini-
buses, Taxies, UBER, Kareem and private cars rental agencies).
But due to the price of our service and accordantly the type of our
target market, The real competitors will be mainly taxies, UBER and
Luxury car rental services.
 Potential future competition
As a result of the rising trend of the air Mobility, Many companies
will enter The world market and Egyptian market as well, e.g.; UBER
which intend to start Initial operation in 2023.

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- Similar initiative implemented in other countries;
Netherland and Emirates will be the first two countries to implement
this type of air mobility ( air drone taxi) In 2023, However there are
some countries that have already implemented to somehow similar
ideas, like Jordon (air taxi plane) but only for tourists and for specific
destinations.

2.4. Industry Information

While the industry of transportation services is various and increasing
year by year, air mobility still in its very early stages that has been
initiated only in very modern technological countries Like USA and
China and adopted by the hugest companies only like UBER and
similar firms. Egypt also has declared that Ministry of Civil Aviation
and Ministry of Military Aviation has just signed an agreement to
start this type of air mobility, although it’s not yet known whether air
crafts will be manufacturing here in Egypt or will just import it from
higher developed countries like China or US. But in all cases experts’
reports assure that this industry is growing and will reshape the
transportation ways in the near future.

3- Objectives
The key objectives for AFCO company are:
(1) Be the first in Egypt at the field of air mobility before any competition
enter the market and be a market leader to obtain approximately 20% of
the total transportation and delivery market in Cairo and Alexandria at
the first phase.

(2) Growing the core of the service to make it as distinctive as possible and
obtain positive and sustainable growth to Deliver a unique model to
enable us to compete even world widely.

(3) Having more than one branch in all governorates to be considered by

the local community as a significant part of the regional transportation
industry.

(4) To be profitable by 2020 and deliver income for owners approximately

45% of their capital investments yearly.

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3. Strategy
AFCO will provide the customer with the finest experience in . This will be
achieved by the development of strong relationships with other service providers
and delivering information and assistance to the tourist to help them with their
planning of their day.

4.1. Product

The last-mile delivery model has two primary offerings:

1. To deliver a high quality service.
2. To deliver packages in time without delays and in a perfect condition.

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4.2. Pricing
The last-mile delivery model was segmented into business-to-consumer (B2C)
and business-to-business (B2B) categories; willingness to pay and adoption rates
were sub-segmented by age and income of the consumer (B2C) and number of
employees (B2B).
The price will be set per miles, each load will be less than 5 kilogram. Our price
objective will be to gain market share and the estimated demand will be around
500 order per day. The estimated costs consist of the cost of the drone divided by
life time by days of the drone and multiplied with average trips per day which is
almost 5000/5/12/30/20= LE .13, while competitor’s prices ranged from LE1-5
per mile . Price for air drone delivery have been set as mix of consumer frame
reference and value based that we would like to deliver in the market. Consumer
frame of reference like competitor’s prices as ordinary services or OTLOP
Application . Also we took into consideration the Upper- Bound prices that our
target customers can afford and the lower-bound pricing that our company can
generate profits, the value price will be superior service quality. So the price
suggested to be competed and achieve our object will range from LE 2-5 per mile.
AFCO will also offer special customers pricing for those who make more than 10
deliveries per month.

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4.3. Distribution

distribution objectives:
 Building brand awareness
 More cost-effective in the long run
 Enable us to support our targeted customers choice
 Quick response to customers demand Channels
 Enable us for backward Feedback from customers

marketing channel system

we need to design a market channels that’s able to convert potential buyers into
profitable customers not just serve markets, they must also make them.
We will use multichannel marketing, using more marketing channels to reach
customer segments in one market area Involves increasing the points of contact
with customers, and reaching additional customer segments by providing access
points that they prefer In order to be effective:
1. Direct distribution
o Allows customers to come directly to our reservation system to
book drone providing us with a direct relationship with the
public corporate customers.
o The advantages of a direct relationship are firstly that we will
have more control over the way we market and sell our service to
the end customer, and secondly we can reduce distribution costs
by cutting out 3rd party charges.
2. Partner with applications like OTLOB and SOUQ.
3. Establishing stores to receive the packages and deliver it.
4. Working with DHL and FEDEX inside Egypt to deliver packages that will
be shipped outside.
5. Establishing website and Mobile Application to get orders and track
orders.
Channel Strategy will be push strategy because service at introduction stage and
there’s a low customer loyalty.
Distribution locations will be mainly in Alexandria and Cairo at the first year as it
has the largest population and number of deliveries in Egypt

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 4.4. Promotion

Developing Effective Communications

In our urban air mobility project we decided to build a strong powerful Integrated
marketing Communications as it's an important integrate element of market mix
(price, product, place, promotion) as promotion have special features& it is the only
cost center of market mix, So we have decided to follow the mains steps of
Developing Effective Communications:-

1- the Target Audience

We targeted the right audience as it guides all
steps in process.
There were the potential buyers of our services as
the international & the multinational enterprises &
firms Ceo's & executives as well as individuals,
groups, particular publics, or the general public.

2- the Communications Objectives

the main objective will be to make brand
awareness about the brand as the brand to
customers is in cognitive phase.
Also, Define the type of our service, the service
locations, and the usage of the service.
The objective must Convince audience about
- he advantage of the service
- The safety
And enable us from getting Feedback from
customers.

3-Design the Communications

To formulate the communications to achieve the desired response we had to answer
3 questions: what to say (message strategy)?, How to say it (creative strategy)?,
and Who should say it (message source)?.

Message Strategy: we decided to build our message strategy on the main

innovative idea of the facility & the safe of the air mobility in the urban premises to
avoid all the obstacles & constraints of the land transportation by tying the brand
positioning the points-of-difference between it & any other way of transportation.

For example, the appeal “Sky Is Ours” is a rational-reward promise following results-
of-use experience.

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Creative strategy:

- Transformational appeals:
working on the fear of crowding roads and being late and unsafe
- Informational appeals:
To present a message of how we could help avoiding those fears
with the liability, easiness and conformability of our services.

Message Source:

We decided that the representative person to the

audience must have credibility& likeable to target
audience (he is favorable to be a role model).
There for we choose to deliver our message with
"Nageb Saweres" words.

4- Communications Channels
We will use multichannel market strategy:
- TV advertising
- Social media
- Events
- Platform to interact with customers
We tried to select a communication mix (tools) that can appeal our target audience,
facilitating the achievement of our objectives with personal and non-personal
Communications channels.
Personal Communications Channels
through a phone, surface mail, or e-mail, direct marketing, personal selling, and word
of mouth, mobile marketing, social media& on line communication.
Non-personal (Mass) Communications Channels
including advertising, sales promotions, events and experiences, and public
relations.

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 4.5. Operational Plan
Successful Delivery system depends not only on the speed, location and quality of
service but on how it is delivered and how to eliminate public negative fears.
This Could be done by three strategies:

1. Technology R&D:
 Invest in key technologies to improve UAM adoption
 Focus on noise abatement and safety systems
 Establish safety standards (for instance, through FAA
coordination)

2. Unified messaging campaign:

 Leverage UAM partnerships to coordinate messaging
campaign between UAM stakeholders
 Address public concerns and emphasize benefits

3. Proactive engagement with concerned groups:

 Identify groups that may organize resistance to UAM
 Hold forums and co-create solutions to address these
concerns

Effective large UAM demonstrations could draw on these three strategies:

 Pilot programs may provide a demonstrated safety case to alleviate
consumer concerns.
 Large-scale demonstrations could provide an avenue for both government
and industry to test use case visions and new technologies.
 Prior to piloting, stakeholders should consider working to create a unified
messaging campaign that preemptively addresses public acceptance
challenges.

4.6. Sales promotion

The pricing schedules are targeted to encourage heavily as well as maximize the
income for what is expected to be popular weekend deals. The offer of discounts to
singles as well as the offer for referral selling should drive business.
Pricing for the use of the facility for functions that would include the use of the
garden setting and AFCO service as a total package, requires further refinement
as this market could attract a different clients such as wedding gifts, birthday
Gifts or other celebrations Gifts. The use of promotions into specialized
magazines for this sector would need to be undertaken but does require the
integration of other suppliers of services to make this successful. At this stage it
is not expected to actively pursue this avenue of activities.

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 4.7. Advertising
Specific target market approach for advertising is seen as the direction for
AFCO. The target market for using the accommodation facility is able to be
reached with careful use of both online sites and information being posted in
key travel magazines.

4.8. Public relations

Public relation
Before the launching of the project, a conference will be held and a CEO member will be
a spoken person in that conference as he will illustrates Public concerns that generally
fall into five categories:
1. Safety
Consumers distrust autonomous technology and are not aware of
safety systems in place
2. Privacy
Civil liberties groups have privacy concerns with widespread UAM
adoption but may misunderstand how camera equipment is used in
sensing system technology
3. Jobs
There is concern that autonomous technology will render jobs
obsolete across multiple industries
4. Environment
Waste buildup from batteries, impact on wildlife, and energy usage
concern younger consumers
5. Noise and visual disruption
Auditory and visual disturbances in residential neighborhoods are
likely to create strong, localized pushback as the market expand.

5- Budgets
Marketing communication budget has been determined as top down bottom as a
percentage of investments. And as the service is in its early start and will require
mass communication volume, the management agreed to make it 20% of total
investments to encourage the fast recognition of our new brand technology.

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4. Action Plan
Action March April May June July Who

Development of application 21st IT

Prepare logo and brand – order 1 st Designer

stationary
Saad
Link application to our drone 15th

mohame
Open application to public 15th d

Pressure test operation with 16 th Mosbah

family and friends

Visit all local delivery offices 15th – sayed

21st

Place advert in key magazines 21st 21st 21st 21st mansour

Introduce business to local 21st – said

groups and other businesses. 30th
Distribute brochure and special
offers.

Prepare newspaper advert and 23rd Ahmed

place in local paper

Web specials to be released on 25th IT

sites

Invited writers and publishers 25th - May

week 30th

Public conference for the launch 1 st Mr

naguib

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5. Supporting Documentation

Attachment Number Document Name

Attachment 1: bah_uam_executive_briefing_181005_tagged

Attachment 2: Global-Urban-Air-Mobility-Report-7-March-
2019

Attachment 3: uam-market-study-executive-summary-v2

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