Prepared For:

Mrs.Tilka Farzana
MKT 202.16
Department of Marketing and International Business, SBE
North South University

Submitted By: Group E

1. Shaafi Mostafa Aurnob- 2132100630
2. Ashfaque Abdun Nur- 2132195630
3. Azaz Youlee- 2131052630
4. Ahnaf Tahmid Shabab- 2132354630
5. Maymuna Islam Purnota- 2132026630
6. Nandini Mazumder- 2131768630
ACKNOWLEDGEMENT: 3

EXECUTIVE SUMMARY: 3

INTRODUCTION: 4

Segmentation of Pathao: 8
Basis of Segmentation: 8
Geographic Segmentation: 9
Country: 9
Region: 9
Demographic Segmentation: 10
Age: 11
Gender: 11
Occupation: 11
Behavioral Segmentation: 12
Benefits Sought: 13
Occasion: 13
Psychographic Segmentation: 14
Personality: 15
Lifestyle: 15

Levels of Product: 16
Actual Products: 17
Augmented Products: 17

Classification of Pathao’s ride-sharing services: 18

Brand name: 18
Features: 19
Pathao Car Lite: 20
Pathao Car Plus: 21
Targeting: 22
Differentiate Marketing: 22
Positioning: 23
Product Life-Cycle: 23
Value-Based Pricing: 26
Targeted Advertisements: 26
Distribution System: 27
Channel level: 27

References 28
ACKNOWLEDGEMENT:

We would also like to show our deepest appreciation to our faculty Mrs. Tilka Farzana for letting
us pursue this report on customer driven market strategy on our chosen company which is
Pathao. Also, we are thankful for the constant guidance and supervision to help us attain the
information needed and the necessary knowledge needed to go through this report. She has given
us an opportunity to work on this topic where we have learned many valuable things through our
findings.

Our profound appreciation towards our friends and our fellow teammates for their time and effort
to help us out in data collecting and summarizing for our research paper.

EXECUTIVE SUMMARY:

Pathao is the pioneer in app-based ride-sharing platforms of Bangladesh and has brought about a
revolution in the transportation industry. Pathao has been growing significantly over the last few
years and has already started its operation in major cities of Bangladesh and Kathmandu, Nepal's
capital. Pathao is currently working hard to make it possible to house all of its services under an
integrated smartphone application. It is a local on-demand transport sharing company competing
with many foreign companies. Pathao segmented the market based on geography, demography,
behavior, and psychographics. Pathao started with a bike ride service and now also provides
options such as Pathao Car lite and Pathao Car Plus. Pathao offers the most affordable prices in
the market for the maximum convenience of customers. The services that Pathao offers are in
society's best interest, and thus, it thrives.
INTRODUCTION:

Pathao is a smartphone application software used to find transportation to travel from one place
to another. Pathao works as an intermediate between user and ride. Pathao came to being in
2015. It was first launched in Bangladesh in 2017 and was only available in Dhaka. Later they
expanded the market and entered other cities like Chittagong, Sylhet. When they first entered the
market, no company or bank wanted to invest or give them loans. But the CEO didn’t give up.
He started to find international investors and was very successful in doing that. After that, Pathao
came up with more services and facilities and promoted their company through different
promotional strategies. The main reason for Pathao becoming successful overnight was
launching in a highly populated country where people face unbearable traffic for hours in their
daily lives. They came up with the moto service, which relieves people from traffic. Pathao came
as a game-changer in Bangladesh and Nepal and now operates successfully in four cities: Dhaka,
Chittagong, Khulna, Sylhet, and Kathmandu. (Pathao, n.d.)

Name of the Company: Pathao

Rationale of such a name:

Pathao is a Bangla word that means “to send”. Pathao decided to stick with this particular word
because of its relevance to their purpose - alleviation of long hours wasted in Dhaka traffic by
providing efficient ride services to their users.
Vision:

The vision of Pathao is to revolutionize traffic congestion and logistics systems through the use
of technology. The company has come really closer than ever on the verge of achieving its
long-term goals, which intends to operate nationwide, centering major cities like Dhaka,
Chattagram, and Sylhet.

Mission:

Pathao, one of the fastest-growing technology start-ups, is the pioneer in app-based services in
Bangladesh. Pathao’s mission is to mitigate one of the most severe problems of the urban society
of Bangladesh - traffic congestion. (Mamun, 2017)

● To beat traffic and save time for our users

● To ensure the utmost safety of our users while ride-sharing
● To be available to our users 24/7

Purpose:

The company is currently working hard to make it possible where Pathao will house all of its
services under an integrated smartphone application. The company aims at becoming the
regional leader by using a highly trained, decentralized fleet of motorbikes and cars by ensuring
the most efficient mode of transportation in the streets of Bangladesh.

They make sure the deliveries are made on time and in proper condition, and the passengers wear
helmets even if they insist against it.

Pathao aims to spread the product and develop it the way its consumer desires, resulting in brand
loyalty. With a hope to accelerate the establishment of digital Bangladesh, Pathao provides an
app-based solution through ride-sharing.
Objective:
The goal of Pathao is to become a regional leader by enhancing its logistics and providing
systematic tech-centric solutions. By harnessing the power of technology, Pathao aims to provide
all services in one platform.

Save time with Pathao - the dynamic platform that provides on-demand transportation. It brings a
hassle-free cheap ride to your doorstep.

1. Beat Traffic, Save Time

Nothing beats traffic like Pathao Bikes and you know it! Save time and save money by
ride-sharing with Pathao Bikes.

2. We Got You Covered

Our rides are insured, so when ride-sharing with us you get the safest rides.

3. Always Available
Be it early in the morning or late in the night, our expert riders are always available to provide
you with the best ride-sharing experience!

4. Pay Cashless for your Ride

Enjoy hassle-free payment with the option to pay with your card, Digital pay or bKash.
(Ride Sharing App, n.d.)
Segmentation of Pathao:

In marketing, segmentation is a process through which a company differentiates its consumers

into groups depending on various traits, which helps the companies create and improve their
products that fit their consumers in the best possible way.

Fig 1.1: Segmentation of Pathao

Basis of Segmentation:

● Geographic Segmentation
● Demographic Segmentation
● Behavioral Segmentation
● Psycho-graphic Segmentation
Geographic Segmentation:

This marketing segmentation discusses the company's target market based on location and
presents different items to people of various mindsets and cultures.

Fig 1.2: Geographic Segmentation

Country:

Pathao at present is operational in Bangladesh and Nepal. Pathao does have services in
different locations in Bangladesh. Still, their main target is to operate in the urban areas
centering in the major cities of Bangladesh and Nepal like Dhaka, Chattogram, Sylhet,
and Kathmandu, Nepal.

Region:
In Bangladesh, Pathao is currently operational in Dhaka, Chattogram, Sylhet and
Kathmandu
Demographic Segmentation:

This marketing method segments the target audience based on personality traits, age, gender, and
other factors. Demographic segmentation is a typical method of segmenting the customer
audience to spread the product and develop it in the way the consumer desires, resulting in brand
loyalty.

Fig 1.3: Demographic Segmentation

Age:
Pathao recognizes that its ride-sharing services are mainly for the middle-class people of
Bangladesh. Bearing that in mind, Pathao designed its product for the use of people aged
21, and upwards.
(On Demand, in Demand: The Pathao Story, 2021)

Gender:
Since Pathao is a ride-sharing platform, this particular company has no specific gender to
customize or design its products accordingly. Pathao services are accessible for any
gender. Pathao parcels create an exception where transgender people are also working
alongside them. (Pathao Food Recruits 50 Transgender People, 2021)

Occupation:
Pathao didn't explicitly target any profession. Pathao's main objective is to get from point
A to point B as quickly and cheaply as possible. As a result, students, lower-middle-class
and middle-class individuals avail Pathao's services to mitigate their time spent in traffic
jams at the lowest possible cost.
Behavioral Segmentation:

Pathao needs to understand its customer’s buying behavior to predict its user's demands. As the
users avail Pathao’s services, their buying behavior becomes more eminent and gives Pathao an
edge to analyze and modify its services as per the use of its customers.

Fig 1.4: Behavioral Segmentation

Benefits Sought:

Keeping in mind the needs of its users, Pathao designed its services. The users seek
affordability, convenience, fast transportation, and availability. Keeping these into
consideration, Pathao developed its services to be cheaper and more convenient than
other modes of transportation in the urban areas. The benefits also include 24/7
availability, ease of access, and faster movement during rush hours in Dhaka and other
cities.

Occasion:
Occasions and festivities incentivize Pathao's consumers to go out of their homes more
often, which ties them with Pathao. This is a behavioral purchase of Pathao's services on
special occasions like Eid-ul-Fitr, Eid-ul-Adha, and Pohela Boishakh are pretty standard
even after applying mark up on fares. Because of the shortage of public transportations
and not having enough drivers to drive, consumer's cars are widespread these days.
Psychographic Segmentation:

Psychographic segmentation is a market segmentation emphasizing personality traits, values,

interests, social views, etc.

Fig 1.5: Psychographic Segmentation

Personality:
This brings attention to the consumer's normal being and daily life and separates the
market into groups according to their characteristics. Such as, if a person prefers to travel
in luxury, that person will take the service of Pathao Cars keeping in mind:

● Traveling with convenience

● Comfort with affordability compared to Pathao's competitors.
● Hasslefree and quick

If a person prefers to travel faster, then that person will take the service of Pathao Bikes,
which is targeted with keeping in mind:

● Beating traffic
● Saving time

Lifestyle:

People with different professions have different approaches to leading their lives, and it
changes depending on their circumstances. A person availing a sub-service of Pathao
ride-sharing services may also opt for another sub-service of Pathao based on their
lifestyle. Like, a student would prefer Pathao Bikes and a middle-class family would
prefer Pathao Car Lite.
Levels of Product:

Levels of a product add more value to its product or services. Multiple levels can be classified
under Levels of Product. They are:

● Core Benefits
● Augmented Products.
● Actual Products.

Fig 1.6: Levels of Product

Core Benefits:

The core benefit that the consumers are getting from Pathao ride-sharing services is
transportation.

Actual Products:

For transportation, the consumers can avail the service of Pathao. Here Pathao is the actual
Product. With that, the quality of the vehicles and availability can also be classified under Actual
Products.

Augmented Products:

It is the additional features that come with the product. For Pathao, these are Insurance covered rides, free
helmet usage, 24/7 call center support and rapid response team. For insurance, Pathao has collaborated
with the most reliable companies to match the consumer needs.
Classification of Pathao’s ride-sharing services:
Pathao provides convenience to its customers, and thus, it is categorized under the Convenience
category. Pathao is a company that offers cheaper transportation services all over Dhaka,
Chattogram, Sylhet, Gazipur, Narayanganj, and Kathmandu, Nepal. This means Pathao’s
consumers can take advantage of the services of Pathao with minimal buying effort as it is
comparatively cheaper, available, and ready to serve right in front of their homes.

Brand name:

Pathao provides three services under two categories in their ride-sharing platform. The names of
the products are as follows:

● Pathao Bikes
● Pathao Cars

Under Pathao Cars, they provide two services, one of them is named Pathao Car lite and the
other one is Pathao Car Plus.
Features:

Pathao’s products are unique in their way. Pathao also provides lucrative offers for their
customers now and then.

A reference promo code has been attached below:

Fig 1.7: Promo Code 1

Pathao assigns Promotional codes to some of its customers, which a customer can avail
just by a tap from their Pathao app, as shown in the picture above.

Not only that, Pathao has kept itself a step ahead of its other competitors like Uber and
Obhai. Where Uber is getting expensive day by day, Pathao, on the other hand, is giving
out fantastic deals on the rides even after providing services at the lowest possible price.

Fig 1.8: Promo Code 2

The picture in the previous entry also has been attached as a reference.
Pathao Car Lite:

Pathao Car lite is the cheapest option in the Pathao Car Segment. This product is designed for the
ones who seek more budget-friendly options. Like: a group of students
Pathao Car Plus:

Pathao car is relatively a more expensive option compared to Pathao Car Lite. It is
designed for the people who prefer a more luxurious car, i.e. Corporate jobholders.

From here it can be concluded that Pathao has conducted very good market research. As a
result, Pathao with its Pathao Car Lite and Pathao Car Plus competing with UberX and
Uber Premier. And they are competing with their low prices with Obhai services.
Targeting:

Target marketing tells us the company’s focus and the group they are focusing on. This is heavily
needed as to get a market share a company must target a market first to penetrate. Without
targeting the company it just has blatant sales and no strategic boost.

Differentiate Marketing:

Pathao targets several market segments. This type of marketing targeting uses the segmentation
made by the company. Pathao targets many consumers but with different offers based on their
segmentation. Pathao targets customers depending on their region and offers a variety of
products to people with distinct mindsets and cultures. Pathao is a ride-sharing company that
includes motorbikes and cars. Anyone looking for a ride logs into the app and selects their
pick-up point and destination in exchange for the estimated fare. They can also cancel the ride
through the app. Compared to Pathao’s competitors, its fare is cheap, allowing middle-class
customers to reap the benefits of their services. Pathao makes it a high priority to ensure your
safety throughout the customer's Pathao journeys since the customers are essential to Pathao. It
attracts people with different income sources with its superior service. The target is to give
inexpensive prices for their services while ensuring consumer satisfaction. Pathao prioritizes the
comfort, need, safety, and security of its customers and creates reliability. This causes the spread
of the products to go to the proper audience and strengthens the product dominance over the
market.
Positioning:

Positioning is based on the consumer’s attributes of buying the product and its value compared to
the competitors. Pathao has strategically positioned itself to serve the masses of all classes with
their different services to provide the best service to everyone at every price point and every
purpose. Meaning, they help their users better with their additional services proving more
effective in another section of the market and earning the brand’s proposition as “more for less.”

Product Life-Cycle:

Among the five stages of the Product Life Cycle, we have determined Pathao is in the growth
stage. We have conducted a survey on a group of people over social media. One of our questions
from the survey looks like this:

As per our survey, 60% of people prefer Pathao over other service providers. That means,
Pathao roughly has a 60% market share.
From the results of our survey, we can see that the difference in Market share between
Pathao and other competitors isn’t that much. The sum total market share of other
companies is 40%, it is clearly evident that the difference between the market shares is
roughly 13%.

As shown below, Pathao is still giving out Promotional coupons/codes to attract new
customers.

Not only that, but Pathao also provides cheaper prices compared to its competitors. But,
with the new companies like MUV and OBHAI, the competition in the market is
increasing. This is also one of the very reasons to comment that Pathao is still in the
 growing phase. Here, we’ll look into a brief comparison between the base fare and per
km charge between Uber and Pathao to get a better idea about Pathao’s average cost per
customer and the reason behind Pathao’s rapidly rising sales.

From the above-mentioned prices, we can clearly see that Pathao’s ride-sharing services provide
better prices than Uber’s, and the average cost per customer of Pathao is more affordable than
Uber’s too. The affordability of Pathao’s ride-sharing services is what makes it a rapidly growing
service and these aforementioned specific statistical and researched data will suffice to conclude
that Pathao is thriving in the growth stage of its product development.
Value-Based Pricing:

Firstly, Pathao understands the value consumers put on a product. So, Pathao provides its service
at a reasonable price. It offers comfort, adequate security, safety tools like helmets, seat belts,
GPS tracking and skillful drivers. So, Pathao brings pleasure to its customers to enjoy a good
service at a fair price.

Secondly, Before determining the price, Pathao analyzes and synchronizes how much a customer
is willing to pay for a ride-sharing service. It sets its target price cheaper than its competitors,
benefiting its consumers which adds a great customer value.

Thirdly, Pathao determines their costs keeping producer profit in mind. The base price for any
Pathao ride is TK 25, which is very affordable. Also the reliability Pathao is creating for its
consumer made it one of the highest growing E-commerce businesses in this region.

And Finally, Pathao's service is designed by keeping consumer convenience in mind. It has three
different transportation modes: bike, car-lite, and car plus, respectively. Passengers have options
to choose their ideal ride based on their earnings. For example: Students and job-holders use
Pathao frequently. So they can use Pathao bikes religiously for their benefit. .

Targeted Advertisements:

There are several ways Pathao advertised its product. In this section, we are focusing on text
messages and traditional advertisements.

Pathao regularly sends text messages to its customers to remind them of their app. Even now,
under the ruse of caring and whatnot, they find ways to keep users involved with their app.
Notifying users of promo codes, app updates, traffic updates, and so meant users actively saw
their brand pop up on their phones. This led to more propensity towards using the app.

The innovators highly targeted Pathao’s marketing campaign, and it extensively sponsored a lot
of youth and school events. Again, having a stash of money in their hand helped, but targeting
effectively was a huge part of it. Instead of just putting up billboards everywhere they could, they
sponsored shows and events their likely customer base regularly interacted with.
Distribution System:

A set of interdependent intermediaries are involved in the making of goods and services. As for
Pathao ride-sharing services, it has the largest fleet of bikes and second largest fleet of cars. This
set of interdependent intermediaries makes the product serviceable and accessible to the user.. It
delivers service to its customers right at their doorstep. As a result, the customers can take their
ride from anywhere and at any time and this strong distribution channel came as a competitive
advantage for Pathao. It has one of the strongest distribution systems as it's able to reach its
customers easily.

Channel level:

Pathao uses the Direct Channel level to reach out to its customers, Direct channel level involves
the Manufacturer and the consumer. At this level, a manufacturer makes the product and delivers
the product right to the customer. For Pathao, Pathao’s products (ride-sharing services) are
delivered right at the doorstep of the customers.
 References

Mamun, S. (2017, September 24). Meet the minds behind the success of Pathao. Dhaka Tribune.
Retrieved December 26, 2021, from
https://www.dhakatribune.com/business/2017/09/24/meet-minds-behind-success-pathao
On demand, in demand: The Pathao Story. (2021, August 24). Dhaka Tribune. Retrieved
December 26, 2021, from
https://www.dhakatribune.com/business/2021/08/24/on-demand-in-demand-the-pathao-st
ory
Pathao. (n.d.). Wikipedia. Retrieved December 26, 2021, from
https://en.wikipedia.org/wiki/Pathao#Operations
Pathao Food recruits 50 transgender people. (2021, March 29). The Business Standard.
Retrieved December 26, 2021, from
https://www.tbsnews.net/bangladesh/pathao-food-recruits-50-transgender-people-delivery
men-mark-50yrs-independence-223816
Pathao Insurance - Protection for unexpected. (n.d.). Pathao. Retrieved December 26, 2021,
from https://pathao.com/insurance/
Pathao Safety - We care about you. (n.d.). Pathao. Retrieved December 26, 2021, from
https://pathao.com/safety/
Ride Sharing App. (n.d.). Pathao. Retrieved December 26, 2021, from https://pathao.com/bike/
What is Pathao's fare policy? (2018, October 31). Pathao. Retrieved December 26, 2021, from
https://help.pathao.com/what-is-pathao-rides-fare-policy/