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San Beda College Alabang

In partial fulfillment of requirement for

Marketing Management (GSMBA108)

Submitted By:
Etis, Eleonor C.

Panaguiton, Maria Exequiel S.J.

Quinto, Mariz D.

San Juan, Ethel R.

Section: MBA – 1C

Submitted To: Prof. Kathleen Catral

Date Submitted: 25 May 2020

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TABLE OF CONTENTS

Page Number

I. EXECUTIVE SUMMARY 1

II. CURRENT MARKET SITUATION 2

A. Market Overview 2

i. Market Demographics and needs

ii. Market trends and target market growth

B. SWOT Analysis 4

i. Strength

ii. Weaknesses

iii. Opportunities

iv. Strength

C. Competitive and industry analysis 6

D. Product/Service Overview 8

E. Keys to success and critical issues 11

III. ENVIRONMENTAL ANALYSIS 13

A. Macro environmental factors 13

B. Micro environment factors 14

C. Competitive Strategy 15
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IV. MARKETING STRATEGY

A. Mission/Vision 16

B. Marketing Objective 16

C. Financial Objective 17

D. Positioning 18

V. MARKETING MIX 19

A. Product/Service 19

B. Pricing 23

C. Promotion 24

D. Channel 26

E. Service 27

F. Internal Marketing 18

VI. MARKETING RESEARCH 30

VII. FINANCIALS 35

A. Sales and Revenue Forecast 35

B. Marketing Expenses budget 38

C. Breakeven Analysis 39

D. Profit and loss analysis 40

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VIII. CONTROLS 41

A. Implementation 41

B. Marketing Organization 42

C. Contingency Planning 43

IX. BIBLIOGRAPHY 46
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I. EXECUTIVE SUMMARY

Grab is one of the leading super app in Southeast Asia, celebrated its eigth-year
milestone in the region, and its seventh year in the Philippines with significant
achievements over its various services. From its transport roots, Grab, over the
span of years, has effectively and efficiently created a very useful and convenient
app platform that serves the everyday needs of the Filipinos such as transport,
parcel services, food delivery, mobile payments and more. Today, 1 out of 6
Filipinos has installed the Grab app, a reflection of its ubiquity in a country that
demands greater convenience for the most common yet often overlooked everyday
service.

However, the Philippines is presently at a critical point in response to coronavirus

pandemic. The country’s businesses are facing slowdown in output due to the
pandemic. Following the government’s declaration of an enhanced community
quarantine (ECQ), mass gathering, public transportation were restricted, causing
slowdown in economic activities.

Since one of Grab Philippines major businesses is land transportation (GrabCar),

such declaration has negatively impact the business operations and profitability.
Leaving thousands of GrabCar drivers unemployed and without income. Despite
Grab Philippines support programs to its people, the uncertainty caused by the
pandemic is challenging the income sustainability of the affected drivers.

On the other note, due to the current public health crisis, increasing demand on
food delivery and logistic of goods were significantly observed. With that, the
researchers, strategize to convert GrabCar drivers to GrabFood or GrabExpress
drivers. This will aid the affected drivers, as well as to recover income loss due to
decrease in workforce and operation slowdown.

This strategy will not only help the company’s profitability and operations but will
also create a very positive brand image since the company was able to help and
adjust for its people with innovation and compassion.
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II. CURRENT MARKETING SITUATION

Introduction:

In 2012, grab started in a small rented place storage place somewhere in Kuala
Lumpur, Malaysia then later moved its headquarters in Singapore. After eight (8)
years, that small company now became the Southeast Asia’s largest mobile
technology company that connects all valued consumers to a numerous drivers,
merchants and businesses. The business started from addressing some of the
region major issues that includes access inequality, outdated infrastructure, and
income disparity. (Grab, n.d.)

Being an everyday app, they are gearing towards making everyday life easier.
From transportation to various deliveries right at your doorstep. In addition to
Singapore, the company's services are available in countries such as Cambodia,
Indonesia, Malaysia, Myanmar, Thailand, Vietnam and Philippines.

A. Market Overview

i. Market Demographics and needs

In an article published in Business World Research Online authored by

Leo Jaymar Uy, grab’s acquisition of uber has widen the market range
of Grab with a 93% market share in ride-hailing according to a statement
by the Philippine Competition Commission (PCC), adding that only 7%
of the market share will be captured by new Transport network
companies (TNCs) entering the market

According to the study of Boston Consulting Group, around 19% of

commuters in Metro Manila have become reliant on ride-hailing apps,
which is nearly double the 10% average in other capitals in Southeast
Asia. Similarly, Uber’s internal survey conducted last 2016, resulted to
points wherein approximately eight out of ten Metro Manila residents
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leave their cars at home due to the heavy traffic in EDSA, with an
estimate slow down to 10 kilometers per hour.

The Philippines is home to approximately 105 million people and as

such, its demographic profile remains a fundamental strength. With
31.95% of the population composed of those aged 0-14 years old as of
2015, meanwhile, its working population (aged 15-64) comprises of
68.05% of the population.

According to IMD’s World Competitiveness Yearbook 2018 the

Philippines ranked 3rd out of 63 in terms of economic standing, also the
country’s growth story is at around 73.3% of its gross domestic product
in 2017. (Uy, July)

In a marketing plan submitted by Hazel Bong, she mentioned that Grab’s

primary target market focusses on the age group varying from 25 to 50
years old, both male and female that belongs to middle to moderately
high-income earners; who are self-employed, working professionals,
unemployed, and the retirees. While its secondary target market focuses
on age group varying from 1 to 24 years old, both male and female,
employed part-time students, and working professionals. (Bong, 2017)
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ii. Market trends and target market growth

Philippines just like the rest of the world had suffered severely COVID-
19 pandemic. In this pandemic where everyone’s safety is the utmost
concern, the rise of delivery services is currently taking place. An article
online explained that there is a surge in demand for food delivery
companies since most of the people are forced to stay indoors. (Sasha,
2020)

Due to government’s effort to arrest the spread of COVID in the country,

Grab had its transport services temporarily closed until further notice.
Thus, some grab cars and motorcycles being used to transport
passengers are now being utilized by their owners as an additional
option for food or parcel deliveries.

B. SWOT Analysis

Grab already positioned itself in the minds of their consumers as they

have a strong brand recall/recognition. It is known for its high standard,
coupled with strong culture and technology. However, in every
organization, inefficiencies in some areas are inevitable and Grab is not
an exception. For one, is the constant need for new merchant-partners
aside from strong reliance on technological developers, being an
everyday app.

External factors include opportunities and threats. Opportunities includes

the technological advancements, additional new merchant partners,
consumers heavily rely on technology, promoting CSRs which includes
environmental responsibilities, and lastly ensuring customer relationship.
Threats are composed of constant switching of brands, so consumers
are able to compare prices along with gained convenience, change in
consumer bargaining power due to the presence of substitutes (direct
competitors), change in economic and industry conditions. Also
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consumers may opt to go to nearby business centers instead of availing

delivery service.

Strength Weaknesses

1. Strong brand recall/ recognition 1. Inefficiencies related to drivers’

2. Diversification of services
(businesses)
3. High standard of quality
4. Strong culture and technology
attitude and behavior
2. Negativity of experience
3. Constant need for new
merchant-partners
4. Strong reliance on technological
developers

Opportunities Threats

1. Technological advancements 1. Constant switch of brands

(product/app and services resulting to price competition
improvement) 2. Change in consumer bargaining
2. New merchant partners power
3. Consumer reliance on 3. Change in economic and
technology industry conditions
4. Corporate Social Responsibility 4. Ease of going to nearby
-Environmental Responsibilities restaurants and some business
5. Ensuring customer centers
relationships
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C. Competitive and industry analysis

i. Porter’s Five Forces Model

Porter’s five forces model is a tool for understanding the competitiveness

of business environment and for identifying strategy’s potential
profitability and success. The five main forces namely threat of new
entrant, bargaining power of suppliers, the intensity of rivalry, the threat
of substitute products, and bargaining power of consumers (Porter,
1980)

Threat of New
Entrants: Low

Bargaining Bargaining
Power of Power of
Consumers: Suppliers:
Grab
Low Moderate
Porter's
Five Forces

Threat of
Intensity of
Substitute:
Rivalry: High
Moderate

1. Threat of New Entrants: Low

Given Grab’s position in the market, the new entrants will have a hard
time entering the market. They have a complete product portfolio that
would encourage its stakeholders (consumers, drivers, partner
merchants) to partake in the success of Grab. It did not only give the
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drivers the opportunity to earn at their own time, merchants are also
given the chance for their businesses to be widely known using grab’s
platform and finally consumers are guaranteed with a product and
services that are of high-quality standards.

2. Bargaining Power of Suppliers: Moderate

Since Grab is claiming to be an everyday app, its maintenance should

be done regularly to avoid glitches. Thus, giving their partners/suppliers
an edge that they are well needed and are vital in the operation of Grab
as a whole.

3. Intensity of Rivalry: High

Given the advancement of technology in the past years, app developers

are now gearing towards what the market leader is doing—same
application interface, booking style and the likes. While this is beneficial
to consumers, this will put the company out of the limelight since rivalry
will increase along with it is the price war.

4. Threat of Substitute: Moderate

With the presence of competitors, consumers will now hop from one
brand to another to compare the convenience and prices offered.
Consumers will have a variety of options; thus, research and
development of Grab should be heightened to perfection.

5. Bargaining Power of Consumers: Low

Grab is doing its best to provide the least possible price at a convenient
ride to its consumers. However, it can also be noted that their prices are
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heavily dependent on the weather, especially rainy days, peak hours in

a specific place and traffic to name a few.

ii. Positioning

Grab is positioned at a quadrant II wherein it is priced low and is

delivering convenience to clients.

D. Product/Service Overview
Grab Holdings, Inc. operates as a holding company, through its subsidiaries
provides software application ride-hailing transport services, food delivery,
and payment solutions. Moreover, it has four sub business units namely
Consumer, Driver, Merchant and Enterprise as follows:

1. Consumer
a. Transport, for Grab Transport they have variety of vehicle
available e.g.,
i. GrabTaxi—right at your door step;
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ii. GrabCar—private cars for everyday use, such as GrabCar

(Sedan) or a GrabCar+ (Premium vehicles)
iii. Car (premium)—includes luxury cars for business needs or
special occasion. Their improved premium car selection
includes rides in SUVs such as a Toyota Fortuner, Ford
Everest, Mitsubishi Montero Sport, Hyundai Tucson, or
Mazda CX-5m along with their premium service and features.
iv. GrabShare or shared rides at a lower cost

b. GrabExpress—parcels are delivered on-demand, with real-time

tracking.

c. GrabFood—getting the food you love from your favorite restaurants

and is now available in areas of Metro Manila, Rizal, Cavite, Laguna,
Pampanga, Cebu and will soon be expanding to other areas.

d. GrabPay—a mobile wallet that you can use to pay seamlessly for
Grab services.

e. GrabRewards—that has recently been adjusted due to pandemic as

follows:
i. GrabRewards tier status – The tier status for all GrabRewards
members will be extended to 31 December 2020 and there will be
no tier downgrades during this period.

ii. Reward vouchers – The validity for all Grab food and ride
reward vouchers redeemed from GrabRewards catalogue will be
extended to 31 December 2020. GrabRewards are now
centralized on cashless – To avoid the spread of COVID-19
through exchange of cash. Points earned from cash transactions
will directly contribute towards supporting GrabBayanihan
initiatives.
iii. GrabGifts—includes Ride Gift Cards and Food Gift Cards.
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2. Driver
a. Transport
i. Car—a simple and flexible way to boost income
ii. Taxi—they can maximise their earnings by connecting to
millions of Grab users
iii. Express—send things easily and quickly

b. Grab Rider—be able to earn extra income and have the freedom to
work on your own time.

c. Driver Centre—find your nearest driver centre

d. GrabFinance—financial programmes for the on-the-go lifestyle of

driver-partners

3. Merchant

a. GrabFood—growing business by reaching millions of hungry Grab

customers
b. GrabFinance—hassle-free funding for merchant-partners

4. Enterprise
a. Grab for Business—grab services catered to your business needs
b. GrabAds—an exposure of your business may it be online or
offline
c. GrabGifts—customized Grab vouchers for customers, guests and
employees
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E. Keys to success and critical issues

Grab founder, Anthony Tan shared the five keys that led his company to success
via interview with Malaysia Tatler, as follows: (Williamson, 2017)

1. Localization is essential
Building a platform that customers value and trust while taking into
consideration of what is beneficial locally. With the full understanding of
what the locals need allowed them to innovate and changes towards the
betterment of all its stakeholders—customers, riders, partner-merchants,
etc.

2. Be driven to make a positive social impact

Transport and mobile payments were given emphasis by this company. It
has a longstanding goal of the founder to initiate a social change. With
Grab’s initiatives, it has given countless of opportunity for the under
privilege to have a chance to work while for others that are with
entrepreneur mindset, they can opt to work at their own time and
convenience.

3. Know your product, employees and customers intimately

Both the customers and employees needed to be heard in order to cater
to their needs. Otherwise a company will not be able to deliver what is it
that the employees and most importantly customers perceive as a
superior product and service. Knowing them better and hearing what they
wanted to say will make a difference.

4. Keep a close eye on your competitors, but don’t follow them

Competition is not all the negative, competition is also bringing out the
best in a company. Thus, in Grab’s case they are considering competition
as a way for them to do and serve their customers better.
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5. Teamwork is everything
“Your problem, is my problem” is also the same way as “your success, is
my success”. The founder is making sure that everyone is doing
everything that is towards the common goal. There is no such thing as “I’
and “me” but there is “us”.
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III. ENVIRONMENTAL ANALYSIS

A. Macro-environmental factors

Following President Duterte’s declaration of an enhanced community

quarantine (ECQ) in Luzon on March 16, mass transportation were restricted,
causing slowdown in economic activities.

Based on the guidelines for the enhanced community quarantine, only private
establishments that provide basic necessities will remain open. These include
activities related to food, health services, banking, services such as
supermarkets, hospitals, pharmacies, food preparation and delivery services,
manufacturing and processing plants of basic food products and medicines,
water-refilling stations, and other utilities.

Businesses are encouraged to reconfigure services/ product offerings to

include these essentials. For the delivery services alone, an alternative activity
is to utilize grab drivers to deliver food items and other essentials in the LGU.

Specific Industry Alternative Remarks

Production/ Activity

Services: Delivery of critical food Angkas/Grab drivers may be

Wholesale and retail and non-food supplies utilized to deliver food items and
other essentials in the LGUs or
provide delivery service to food
establishments and pharmacies.
Health check will be provided for
the drivers and social distancing
will be observed during delivery.
Impact of Luzon-wide enhanced community quarantine (source: NEDA report as of March 19, 2020)

In 2018, Luzon accounted for 73.0 percent of the country’s real GDP,
significantly larger than the share of Visayas (13.0%) or Mindanao (15.0%).
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Table 3. Illustrates the comparative Total Employment and Employment Share

in 2019 vs. 2020. In NCR alone, a total of 5.5 Million are employed and can be
considered as potential market to avail delivery service of basic
goods/commodities.

With the government prohibiting food and beverage outlets from opening their
doors to dine-in guests, the food delivery business began to gain momentum.
Likewise, ordering food online had increased in time of pandemic due to strict
implementation of curfew and boarder restrictions between localities.

B. Microenvironment factors

From the customer’s perspective, there are several reasons to opt for online
food delivery services, whether simply ordering groceries online to avoid the
human interaction in going to the supermarket, or having favorite dish served
at the doorstep.

From the restaurant owners’ perspective, smaller or family-owned businesses,

they are starting to take their first steps into the online delivery service. Others
already on an online delivery, are looking to step up to mainstream ordering
apps.
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The current public health crisis stimulated creativity among those involved in
food delivery. Competition on contactless delivery became more evident
with the like of UberEats, LalaMove, etc.

Grab became a necessity and gained momentum, except for Grab Cars
which was the most affected with the stoppage of mass transport. Table
7. Illustrates the number of public utility vehicles per NEDA report dated
March 2018.

C. Competition strategy

As consumers adapt to restricted movement and social distancing measures,

Grab has seen an increased demand for food, parcels and daily essentials
delivery, and a decrease in its ride-hailing business. To meet the needs of
customers who cannot commute easily during this period, Grab may utilize
Grab Cars to expand on these services.

Currently, Grab offers this kind of services to other Southeast Asian countries
but here in the Philippines, it is still in the pipeline. This move will address the
current problem faced by Grab Car drivers.

Big retail stores, supermarkets, and restaurant can be tapped as partners by

Grab Cars. Majority of these establishments went online in the midst of COVID
crisis thus, the need for third party delivery service became more evident. This
will become the new trend in retail industry thus, a good opportunity to explore
tie ups with Grab Cars.
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IV. MARKETING STRATEGY

A. Mission / Vision

Grab Mission Statement

At Grab our vision is to Drive Southeast Asia Forward through innovation and
grit. We do this by solving real world problems that over 620 million people face
across the region.

Vision

An empowered future of seamless mobility, on-demand food delivery, logistics,

cashless payments, and financial services for the people of Malaysia and
Southeast Asia – all within one mobile app.

Grab will continue to closely monitor the COVID-19 situation, with the safety
and wellbeing of its partners and consumers being top of mind. This gives
users, who choose not to go out often, more delivery options to meet their daily
needs.

B. Marketing Objective

At present, only motorcycle is being utilize by Grab Philippines for delivery

service. During this pandemic, the need for a bigger mode of transporting goods
and other essentials became evident. Due to strict national and LGU
regulations limiting the movement of people in their respective, securing other
essentials, not just food but groceries became a daily necessity. This is the
best time to introduce Grab Car as partner with major retail and food industries
in delivering basic necessities to consumers.
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Our main objective is to market the convenience that delivery services offer not
only during time of crisis but as a way to address the new normal. We would
like to also take special consideration on delivery services and how it managed
to let people continue to have access to food despite the lockdown and strict
rules that have been implemented by both the national and local governments.

During this “lockdown” delivery services are severely limited to what can be
shipped out. Perishable goods and food products are allowed to be transported
from one place to another. While grocery deliveries have been around for a long
time now, it is seeing a major push. It is a bit more expensive for people
personally going to the market and delivery is safer to prevent exposure with
the virus.

Since groceries and restaurant are basic necessities, tie up with these
establishments can be considered as a steady source of income for Grab Car
drivers, aside from the usual mass transport.

C. Financial Objective
Source: Businesswire.com

Technavio is a leading global technology research and advisory company.

Technavio suggests three forecast scenarios (optimistic, probable, and
pessimistic) considering the impact of COVID-19. Growing consumer demand
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for convenient food ordering has been instrumental in driving the growth of the
market. Thus, delivery services can be seen as a growing market.

D. Target Markets

Retail stores, supermarkets, restaurants, food businesses and entrepreneurs.

E. Strategy Marketing

Strategy is to highlight how foods / goods offered at retail can be safely handled
and delivered to the public, following strict health protocols by the driver and
best practices for employee in terms of cleanliness/ sanitation.

Transport: Beyond just ride-hailing, Grab’s envision to serve people’s

needs more seamlessly.
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V. MARKETING MIX

Concept of Marketing Mix

Marketing mix can be defined as controllable group of variables that the organization

can use to effect on the buyer’s response to product or service (Kotler, 2000).

A. Product/Service

Grab Philippines, recognizes the immense impact that COVID-19 pandemic that has

caused the daily life of the Filipino people. Despite these uncertainties, Grab

Philippines is still business as usual to serve its Filipino customers during the

challenging and trying time.

On March 16, 2020, the government of the Philippines under President Rodrigo

Duterte implemented the Enhanced Community Quarantine (ECQ) in Luzon which

has effectively place Luzon and other areas in a state of a “total lockdown”. It has

restricted the movement of its population in response to the

growing pandemic of coronavirus disease 2019 (COVID-19) in the country. Additional

lockdown restrictions mandated the temporary closure of non-essential shops and

businesses.

With the implementation of the ECQ in Luzon which includes several areas, Grab

Philippines management has decided to suspend its GrabCar services temporarily

that in compliance with the guidelines released by Inter-Agency Task Force on

Emerging Infectious Diseases (IATF-EID). This is also in adherence with the recent

guidelines released of DOTC and LTFRB wherein Grab rides are to be temporarily

barred from operating until further notice.

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To address this directive from the Philippine government in the light of COVID-19

pandemic, it is the marketers proposal for Grab Philippines to temporarily transition its

GrabCar partners- drivers to GrabFood and GrabExpress partners.

The goal of the momentary business model shift is to strengthen and solidify Grab

Philippines overall service operations performance during the COVID-19 pandemic in

line as the company is entering the phase of the new normal. To keep the business

afloat and profitable during and after the pandemic.

Business model fine-tuning has to be made on Grab Philippines service offering to

adopt to the new playing field. Focus will be on strengthening its GrabFood and

GrabExpress services as bullish upward trend is projected and expected with the high

probability that the threat of COVID-19 will be extended for a long time until a vaccine

has been administered to the population.

Secondly, the temporary transition of the GrabCar drivers to GrabFood and

GrabExpress partners is aligned with the company’s commitment of taking good care

of its employees (Grabbers) and partners. Needless to say, protecting and cushioning

their drivers, employees and delivery –partners on the impact of COVID-19 pandemic

on areas of financial, health, and mental well-being is their utmost priority.

More so, the GrabCar the transition will also support the Philippine government

campaign in fighting the threat and spread of COVID-19. GrabCar vital service of
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transporting essential goods, PPEs, food and documents to the population especially

will not only support the government to curb and flattened the curve of COVID -19

cases but most importantly will help fuel the Philippine economy until it normalize.

As time is of the essence, the marketers are strongly proposing that the business

transition needs to be implemented NOW while the iron is still hot. This is for the

purposes for partner- drivers to adjust immediately to the new normal and for them to

earn a living the soonest possible time.

For differentiation purposes during this extraordinary times, modification on the

product names is proposed as follows:

Product Name

Note : * denotes the strict

implementation of social physical
distancing adopted by GrabCar

Enhanced GrabCarFood (E*GCF)

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Product Type Food Transportation Service

Main Source Grab application, driver, and car

Features Get your comfort food from your

favourite restaurant without leaving

home.

Order via the Grab app, or click to

order from Grab website

Quality GrabCar drivers

Product Name Enhanced GrabCarExpress

Note : * denotes the strict

(E*GCE)
implementation of social physical
distancing adopted by GrabCar

Product Type Documentations and Packages

Transportation Service

Main Source Grab application, driver, and car

Features Get your parcels such as medicines,

health related items etc. delivered

on-demand

Real-time tracking monitoring

All parcels accepted are insured

Quality GrabCar drivers

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Value proposition of E*GCF and E*GCE to its customers:

 Minimum waiting time

 Prices matrix pattered with GrabCar

 Cashless option is available

 Contactless Delivery and Takeaway are strictly implemented

 Trained and educated partners-drivers to maintain Social Physical Distancing

 Trained and educated partners-drivers on food and general hygiene

 Can see the ETA and track the car unit on the map

 With established strong customer relationships programs via:

- Social Media, Customer Support and Reviews/ratings and feedback

systems

B. Pricing

GrabCar over the years was able to imprint with its local customers a strong brand

recall/recognition, high standard on safety and quality and strong driven culture of

technology through its apps. Diversification of services (businesses) during the

COVID-19 pandemic is projected to be a fluid changeover.

It is the objective of GrabCar that its pricing strategy for its “E*GCF” and “E*GCE”

service be based on social, ethical and ideological purposes in the spirit of mutual

cooperation with the Philippine government for the greater public good.
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Having said that, the marketers’ price proposal for the modified GrabCar service

offering “E*GCF” and “E*GCE” will be a status quo. Grab Philippines will still make use

of GrabCar existing pricing model of “cost-plus strategy” which calculates the incurred

bare cost plus mark - up.

Payment will still be based on metered fare (based on LTFRTB) and an additional

booking fee which varies per city. A booking fee charge will cover the expenses of the

GrabCar driver going to where the food, documents and package are to be picked –

up.

Proposed pricing computation = Metered fare + booking fee

Note: A discount of 3- 5% will be given for the transportation of PPEs and

food/beverages to the frontliners and LGUs.

C. Promotion

In the light of the national health emergency brought by the threat of COVID-19,

placing the whole of Luzon in ECQ and several key areas in the Philippines in total

lock down , more than ever digital strategies in promoting ones product and services

needs to be relied on.

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Promotional strategy initiatives of Enhanced GrabCarFood (E*GCF) and Enhanced

GrabCarExpress (E*GCE) will be focusing on digital campaigns. This means that

promotional activities shall make use of Facebook Ads, Google Ads, Instagram for

Business or LinkedIn Ads will part of the promotional campaign to reach out to its on-

line digital target customers.

Another avenue that can be utilized is its current website: https://www.grab.com/ph/ in

promoting its enhanced GrabCar services. Likewise, current social media tools and

networks like Google My Business, Facebook, LinkedIn, Twitter and Instagram

channels needs to be updated accordingly.

Digital platform such as Youtube can also be considered as a tool for its promotional

campaign by engaging influencers with a huge of number of followers to give a short

high impact service testimony about the new service offering of GrabCar.

Another avenue that can be explored is the direct marketing campaign. This is

conducted by reaching out to its current listed GrabCar customers nationwide by

notifying them via email and SMS of the new and enhanced service offering from

GrabCar.
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D. Channel

GrabCar drivers are everywhere around Metro Manila, Cebu City, Davao City, Iloilo

City, Bacolod City, and Baguio City. The marketers proposal is to add more location

to the list such the Laguna Province, Cavite Province , Zamboanga City and other key

cities during the COVID-19 pandemic. This will enable GrabCar to reach out to a wider

range of customers coverage throughout the country to offer the services of “ E*GCF”

and “E*GCE”. Most of the areas under these provinces have a good internet

connection, telecommunication networks reception and a large number of business

establishments.

As Grab gives highest importance to the health and welfare of its drivers and delivery-

partners, programs such as contactless delivery and takeaway and education of its

partners (merchants and delivery –partners) on food and general hygiene, wearing of

PPEs such as facemask, importance of frequent hand washing/ sanitizing one’s hands

and social physical distancing should be immediately be undertaken.

Virtual training on line via Zoom and available training materials at its websites are to

be regularly conducted and updated.

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E. Service

With enhanced community quarantine in effect, accessing daily essentials is a

challenge for many Filipinos. Through Enhanced GrabCarFood (E*GCF) and

Enhance GrabCarExpress (E*GCE) service platform – a continuous delivery of

everyday essential needs such as food, medicine, and others, while providing

livelihood opportunities for delivery-partners amidst this period of disruption is assured.

Enhanced GrabCarFood (E*GCF) and Enhance GrabCarExpress (E*GCE) target

markets are food businesses, restaurants, retail stores, supermarkets and

entrepreneurs.

E*GCF and E*GCE will be using the platform channels: Websites, Mobile App for

Android and Mobile App for IOS as its main marketing channel.

With introduction of these two enhanced service offering of GrabCar, it will help

support merchants-partners in maintain their day to day operations by:

 Driving more sales for the local and independent Merchant-partners currently

on our platform.

 Speeding up the process of bringing local merchants onto Grab to reach a

wider customer base.

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E*GCF shall offers curated restaurants, from small bites to big meals to its customers.

There is no limit on the order size. Motto is “ There’s something for everyone!”. Cuisine

includes Asian, Japanese, American and Chinese. Baked goodies, pizzas, various

beverages, brunch and fast-food selections are also offered. During the public health

crisis, it is recommended for its customer to avail the Grab App option to go cashless.

For the E*GCE, it is recommended that partnership with the LGUs be developed to

deployed specialized car fleet to help in food and medical distribution to areas with

high percentage of COVID-19 cases.

As part of Grab’s continuous effort to serve the everyday essential needs of Filipinos,

E*GCE service can be extended to cover – an on-demand grocery service that allows

you to shop for your essential goods right from your home and have them delivered to

your doorstep.

F. Internal Marketing

At Grab, the safety and well-being of everyone in their

ecosystem is their top priority. Internal Marketing approach

for the Enhanced GrabCarFood (E*GCF) and Enhanced

GrabCarExpress (E* GCE) will still make use of Grab

existing and established framework and guiding principles

of their Employee Well-being Programme, “extended “ to

its users, driver-partners, delivery –partners, and merchant-partners

 29

During this trying and extraordinary time, the marketers’ proposal is to implement a

series of safety and support measures to protect their users, driver-partners, delivery

–partners, and merchant-partners. Examples of these initiatives are as follows:

1. Secure additional COVID-19 insurance coverage for drivers and delivery –

partners.

2. Provide a one-time payment to cover loss of income for drivers and delivery-

partners who have to undergo quarantine or medical treatment for Covid-19 if

insurance coverage is not available.

3. Provide training on safety measures against COVID-19 to be done virtually

3.1 Food and general hygiene

3.2 Social physical distancing

3.4 How to conduct contactless delivery and takeaway

3.5 Material handling protocol which includes sanitizing the staging area of

items

3.6 Health protocol (taking own temperature twice a day, wearing of face

mask all the time except eating and drinking, proper and frequent hand

washing)

3.7 Pay hazard to be considered

 30

VI. MARKETING RESEARCH

Market research is the process of determining the viability of a new service or product

through research conducted directly with potential customers. Market research allows

a company to discover the target market and get opinions and other feedback from

consumers about their interest in the product or service.

With the declaration of President Duterte’s of ECQ in Luzon on 16 th of March and its

subsequent transition to Modified Enhanced Community Quarantine (MECQ), a strict

stay-at-home measures were still enforced, with the population are allowed only to

leave their homes to obtain essential goods and go to work in industries allowed to

resume by the government. With essential industries like health care, pharmacies,

veterinary clinics, food manufacturing and supply chains, and groceries can operate

at full capacity. Restaurants and fast food chains are still not allowed to operate full

capacity but instead mandated to fulfil customer orders via take -out and delivery

option arrangement.

Given huge percentage of Filipino consumers can now order from a broad selection

of eateries with a single tap of their mobile phones. Online food delivery platforms

continue to increase in terms of accessibility and choice. New online platforms are

racing to capture consumers and new markets. The industry of transporting restaurant

meals to the home is experiencing rapid and exponential growth in the likes of

GrabFood and FoodPanda.

With the onset of COVID-19 pandemic and strict implementation of the ECQ and

MECQ guidelines by government agencies such as IATF, DOTC and DTI, various
 31

businesses are encouraged to realign their services/ product offering to include these

essentials (goods/services) and to adopt to the new normal.

Based on WHO recent Philippines COVID-19

situation report dated 8 May 2020, the current

transmission classification in the Philippines is

identified as clusters of cases with evidence of

community transmission in highly urbanised

areas of NCR, Cebu and Davao. Statistics

shows that 64.9% of cases reported from

National Capital Region (NCR), followed by

Central Visayas (13.5%), CALABARZON (12.1%), and Central Luzon (3.8%).

In spite of continued enhanced community quarantine in most affected regions in the

country, several barangays are reporting a large increase in cases, resulting in local

authorities to issue total lockdowns in Barangay Mauway in Mandaluyong (NCR) and

Sitio Alaska in Barangay Mambaling in Cebu City.

Out of the current population of the Philippines which is approximately 109 mio only

200,000 people have been COVID-19 tested. That is approximately less than 1% of

its total population.

In the recent data from DOH, extracted from its COVID-19 tracker, dated May 24,

2020, additional new cases of 258 has been reported. So far, no known vaccine has

been developed.
 32

COVID-19 remains as a serious threat to the everyday lives of the Filipino people and

gravely impacted the Philippines’ economy. The Philippines’ economic growth will

slow significantly this year per ADB, at projected gross domestic product (GDP) to

grow at 2.0% in 2020 following an “enhanced community quarantine” imposed by the

government in March to stop the spread of the novel coronavirus disease (COVID-19)

in the country. ADB expects a strong recovery to 6.5% GDP growth in 2021, assuming

that COVID-19 infections in the country are curbed by June this year.
 33

Given the extent of COVID-19 threat to the everyday lives and its economical impact

to the Filipino people, the goal for COVID-19 cases in the Philippines to reach a

plateau state is projected will not be achieved in the near future.

The new normal, as the result of COVID-19 pandemic , is here to stay for a long while.

Based on this premise, delivery services can be seen as having a high potential as a

growing market in the months to come.

 34

Based on the above analytics, the temporary transition from its the current business

model of GrabCar to cater for its Food and Express delivery by introducing its new

services, E*GCF and E*GCE during the COVID-19 pandemic will capture a wide range

of digital based consumers nationwide.

 35

VII. FINANCIALS

A. Sales and Revenue Forecast

Table 1
Lalamove Philippines Inc.
Estimated Monthly Income from delivery of goods

Earnings of Driver (per individual) Company Earnings

Average
Earnings- Earnings- Average Commission Number Total Income
Type Earning per
low high Earning rate Drivers* per month
Individual
Motorcycle 6,000.00 30,000.00 18,000.00 16% 2,880.00 20,800.00 59,904,000.00
SUV/Van 10,000.00 70,000.00 40,000.00 16% 6,400.00 12,000.00 76,800,000.00
Light
Truck 20,000.00 170,000.00 95,000.00 16% 15,200.00 3,200.00 48,640,000.00
Total 185,344,000.00

*Based estimated count on the Lalamove company website as of May 2020.

 36

Table 2
Grab Holdings, Inc. (Grab
Philippines)
Estimated Monthly GrabCar (Pre covid)

Earnings of Driver (per individual) Company Earnings

Average
Earnings- Earnings- Average Commission Number Total Income
Type Earning per
low high Earning rate Drivers* per month
Individual
Taxi 9,000.00 36,000.00 22,500.00 20% 4,500.00 8,400.00 37,800,000.00
Car 9,000.00 36,000.00 22,500.00 20% 4,500.00 23,800.00 107,100,000.00
Car
Premium 9,900.00 39,600.00 24,750.00 20% 4,950.00 1,750.00 8,662,500.00
Pet 10,350.00 41,400.00 25,875.00 20% 5,175.00 1,050.00 5,433,750.00
Total 158,996,250.00

*Based on Manila Bulletin article dated February 26, 2020

 37

Table 3
Grab Holdings, Inc. (Grab
Philippines)
Estimated Monthly Income on deliveries (from GrabCar to GrabDelivery or GrabFood)

Earnings of Driver (per individual) Company Earnings

Average
Earnings- Earnings- Average Commission Number Total Income
Type Earning per
low high Earning rate Drivers per month
Individual
Taxi 8,100.00 32,400.00 20,250.00 20% 4,050.00 8,400.00 34,020,000.00
Car 8,100.00 32,400.00 20,250.00 20% 4,050.00 23,800.00 96,390,000.00
Car
Premium 8,910.00 35,640.00 22,275.00 20% 4,455.00 1,750.00 7,796,250.00
Pet 9,315.00 37,260.00 23,287.50 20% 4,657.50 1,050.00 4,890,375.00
Total 143,096,625.00

Assumptions:

a. Income will be 10% lower in delivery of goods than income in land transport of individuals. Despite the increase in
demand in logistics of goods during this time, increase in competitions negatively affect the total income.
b. Only 95% of the land transport drivers will be converted to delivery drivers due to possible government and
company controls that may hinder full conversion.
 38

B. Marketing Expenses budget

Table 4
Grab Holdings, Inc. (Grab Philippines)
Budgeted Monthly Marketing Cost

Total Budget of Marketing 21,464,493.75

Breakdown: Amount %
Direct Expenses on marketing
activities 5,209,828.58 24%
Social Media 6,876,973.73 32%
Marketing Employees 4,167,862.86 19%
Marketing analytics & research 3,125,897.15 15%
Overhead cost 2,083,931.43 10%
Total Budget of Marketing 21,464,493.75 100%

Assumptions:

a. Total budget for marketing is 15% of the total revenue which is based on the
industry average for consumer service and logistics as of 2018 by the CMO survey &
Deloitte digital.

b. One-third of the budget is dedicated to social media since it is the most effective
tool for a broader reach during this crisis.
c. Other expenses is based on the industry average for consumer service and
logistics as of 2018 by the CMO survey & Deloitte digital.
 39

C. Breakeven Analysis

Table 5
Grab Holdings, Inc. (Grab Philippines)
Monthly Breakeven Analysis

Revenue 143,096,625.00

Variable Cost Portion:

Cost of services rendered 37,562,864.06
General & Administrative 5,723,865.00
Marketing Expense 4,292,898.75
Other Operating Cost 12,878,696.25
Total Variable Cost 60,458,324.06

Fixed Cost Portion:

Cost of services rendered 12,520,954.69
General & Administrative 22,895,460.00
Marketing Expense 17,171,595.00
Other Operating Cost 12,878,696.25
Interest Expense 1,860,256.13
Total Fixed Cost 67,326,962.06

Contribution Margin:
Revenue (a) 143,096,625.00 a
Total Variable Cost (b) 60,458,324.06 b
Contribution Margin (c ) 82,638,300.94 c=a-b
Contribution Margin % (d) 57.8% d=c÷a

Breakeven Revenue:
Fixed Cost (e ) 67,326,962.06 e
Contribution Margin % (d) 57.8% d
Breakeven Revenue (f) 116,583,484.09 f=e÷d
 40

D. Profit and loss

Table 6
Grab Holdings, Inc. (Grab Philippines)
Monthly Income
Statement
Amount Percentage
Revenue 143,096,625.00 100%
Less: Cost of Services 50,083,818.75 35%
Gross Margin 93,012,806.25 65%

Operating Expenses:
General & Administrative 28,619,325.00 20%
Marketing Expense 21,464,493.75 15%
Other Operating Cost 25,757,392.50 18%
Total Operating Expenses 75,841,211.25 53%
Net Operating Income 17,171,595.00 12%

Non-Operating Expenses:
Interest Expense 1,860,256.13 1%
Net Income before taxes 15,311,338.88 11%
Income Taxes 4,593,401.66 3%
Net Income after taxes 10,717,937.21 7%
 41

VIII. CONTROLS

A. Implementation: Conversion of GrabCar Drivers to GrabExpess Drivers

and/or GrabFood Drivers Implementation.

Action
Grab Philippines will conduct virtual seminars and trainings to GrabCar drivers
of the basic principles and protocols of how GrabExpress (delivery of goods)
and GrabFood (delivery of foods) operate. Standards and procedures will be
cascaded virtually for them to study and comprehend. Afterwards, an online
examination and interview will be conducted.

If the individual passed both examination and interview, a certificate, permit and
ID will be given through mail for them to start delivery of goods and/or foods.
Furthermore, an adjustment to the GrabCar driver application interface will be
done for them to handle GrabExpress and Grab Food.

Performance Measurement
Driver will monitored thru the applications reviews and comments per delivery.
Any grade lower than 3 (5 being the highest) given more than three times a
week will immediately prompt to the head office for warning and investigation.
Due process will be conducted and proper disciplinary actions will be taken.

Adjustment
Proper adjustment will be made in the operations in compliance to any new
regulations and standard implemented by the government and transport
organizations. Any reports, suggestions and complaints from clients and
customers will be consolidated, analysed and adjusted accordingly to deliver
the best service.
 42

B. Marketing Organization

Marketing
Department

Social Media & Marketing

Direct & Brand Multimedia &
Digital Research & Content Creator
Marketing Graphics
Marketing Analyst

 Marketing Department is responsible in promoting the business and drives

sales of the company’s services. It provides the necessary research to identify
your target customers and other audiences.

 Brand Marketing promotes the company’s services in a way that highlights the
business overall brand. The goal of brand marketing is to link company’s
identity, values, and personality with communications to its audience.
Essentially, the organization’s brand is the bridge between services offered and
target customer.

 Social Media Marketing and Digital Marketing is responsible in utilizing of

social media platforms and online based digital technologies to connect with the
company’s audience to build brand, increase sales, and drive website traffic.
This involves publishing great content in the brand’s social media profiles,
listening to and engaging brand’s followers, analyzing results, and running
social media advertisements.

 Market Research and Market Analyst is responsible in determining the

viability of a new service or product through research conducted directly with
potential customers. Market research allows a company to discover the target
 43

market and get opinions and other feedback from consumers about their
interest in the product or service.

 Content creator is responsible for the contribution of information to any media

and most especially to digital media. They usually target a specific end-
user/audience in specific contexts

 Multimedia & Graphics is responsible in utilizing graphics technology

programs and creates designs and effects for digital media. They use multiple
technologies and artistic methods to create advertisements, special effects,
website designs, and even animation to create unique work that engages users.

C. Contingency Planning

Since company’s plans and strategy can never foresee all contingencies, good
planning provides for readily available actions to address unforeseen events. In
marketing plans, sales projection, income and market response to initiatives
depend on aspects outside the business. As a consequence, plans have to
consist of provisions for response when the projected results don't actualize.
Preparation for contingencies contains an evaluation of possible variations in
basic assumptions and the effects on the marketing plan. Contingency planning
has to address problems resulting from such deviations.

Managing Risk and Response

Currently, Grab Philippines is facing uncertainty due to the huge impact of
corona virus (Covid-19). It causes the company decline in sales and incurring
unforeseen expenses that negatively impacts the company’s profitability. A
significant contributor to Grab Philippine’s reduction in sales is due to the
government instruction to suspend GrabCar operations in compliance with the
social distancing and community quarantine.
 44

In response, Grab Philippines implemented the following:

1. Raising safety and hygiene standards

a. Limiting physical contact with Delivery partners via Contactless

Delivery
b. Suspending GrabCar services temporarily
c. Partnering with vendors nationwide to provide discounted medical
and cleaning supplies or services for Merchant-partners
d. Encouraging Partners to check their temperature daily and get
medical help if they are unwell
e. Updating the company’s Help Centre to allow anyone to easily
notify Grab Philippines of any person on our platform who appears
to be unwell.

2. Financial Aid for the company’s drivers and delivery partners.

a. Augmenting 4W driver’s financial capacity through the Cash Loan
program which is being repurposed to serve as an “Emergency
Loan.” Drivers may loan from PHP 5k up to 10k.
b. Providing financial assistance in case of quarantine or
hospitalisation.

3. Collaborating with local authorities and government bodies

a. Providing 24/7 contact tracing support.
b. Cascading the latest industry safety and hygiene standards to our
Partners.
c. Temporarily suspending the accounts of Partners who confirm they
are unwell until they submit a medical certificate to prove they are
free from COVID-19.

4. Helping the affected GrabCar drivers transition to GrabFood and

GrabExpress for them to continue earning income. This will also help the
company’s income to slowly recover GrabCar forecasted sales for 2020.
 45

5. Launch of Covid Donation Drive in Grab Application

a. Donation Drive to Wold Vision for the supplication of PPEs for
frontliner.
b. Introducing Mcdo Kindness Kitchen, wherein donations will be
utilized for purchase of Mcdo products for the country’s frontliners.
c. Donation for Caritas Manila- to send food bags to families in need.

Despite the uncertainty, the company’s focus was its corporate social
responsibility (CSR) that resulted to a very positive brand image. With it, its
customers continue to patronage and promote the company’s services. Also,
people that previously were not availing its services started to use the
applications because of the company’s good reputation. Grab Philippines
contingency plan was implemented to recover its sales with a heart to its drivers
and community.
 46

IX. BIBLIOGRAPHY

Ride Hailing Platform: Car, Taxi & Carpool: Grab. (n.d.). Retrieved from

https://www.grab.com/ph/

Marketing Mix: Meaning, Definition and Characteristics of Marketing Mix (with

diagram). (2014, April 2). Retrieved from

https://www.yourarticlelibrary.com/marketing/marketing-mix-meaning-definition-and-

characteristics-of-marketing-mix-with-diagram/32321

Kenton, W. (2020, February 5). Direct Marketing: What You Need to Know. Retrieved

from https://www.investopedia.com/terms/d/direct-marketing.asp

Rouse, M. (2011, March 24). What is social media marketing (SMM)? - Definition

from WhatIs.com. Retrieved from https://whatis.techtarget.com/definition/social-

media-marketing-SMM

Grab unveils open platform strategy to build Southeast Asia's First Everyday

Superapp. (2018, July 10). Retrieved from

https://www.grab.com/sg/press/business/grab-unveils-open-platform-strategy-to-

build-southeast-asias-first-everyday-superapp/

Internal Marketing: What is Internal Marketing? (n.d.). Retrieved from

https://www.marketing-schools.org/types-of-marketing/internal-marketing.html

GrabTransport Services
 47

AuthorMarketing is my soul mate and writing is my side kick. Using my writing skills

to share the knowledge of app development and upcoming technologies. (2020,

January 20). Grab Case Study : How it Expanded as Super App in South East Asian

Countries? Retrieved from https://www.appdupe.com/blog/case-study-on-grab-how-

it-expanded-as-super-app

Rappler.com. (n.d.). Metro Manila has 3rd worst traffic in Southeast Asia – study.

Retrieved from https://www.rappler.com/business/190016-metro-manila-traffic-

southeast-asia-study-bcg-uber

Thomas, J. (2019, September 28). Metro Manila wins 'most congested' crown.

Retrieved from https://theaseanpost.com/article/metro-manila-wins-most-congested-

crown

(n.d.). Retrieved from Grab: https://www.grab.com/ph

Bong, H. (2017). Marketing Plan Assignment 2 - Group.
Porter, M. E. (1980). Competitive Strategy; The Five Competitive Forces That Shape
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Deluvery Services. Retrieved from https://hackernoon.com/the-effect-of-covid-
19-on-ride-hailing-and-food-delivery-services-6z9w3yak?source=rss
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lx9ZzRbNEp_L3CLuXI21ALRtgLmM_2KpLiE
48