Foodora Marketing Plan: Market Opportunity Identification (Term Paper Sample)

Marketing Plan Foodora
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Marketing Plan Foodora
EXECUTIVE SUMMARY
Foodora, a restaurant to home food-delivery company, seeks to launch its services in the New Zealand market. The company runs an online site and a mobile application where customers choose their favorite restaurants, select the food choice, and wait for delivery at their offices or doorstep. In the New Zealand market, the company will launch its service in Wellington and Auckland by partnering with the various restaurants and start offering an online food ordering system.
The company targets the middle to upper-income earners whose age is between 18 and 54 years. The specifics of the customer are individuals too busy, and they lack time to eat out or eat, people in offices who seek a convenient lunch from their favorite restaurant, and people who want food at their doorstep. The value proposition is a convenient, fast, and reliable food delivery right at your doorstep. The platform is easy to use and navigate, and within two minutes a customer has made a restaurant and meal choice, and within the next thirty minutes, the food has been prepared and delivered.
The objective for the first year is to build brand awareness by 15%, deliver at least 20,000,000 orders, and achieve sales of $200,000,000. The promotional strategy to meet these objectives consists of advertising and sales promotion. Digital advertising channels such as SEM, mail marketing, and using social media sites are appropriate because more than 75% of New Zealand citizens have access to a smartphone and access the internet. Sales promotion activities include the use of price deals, contests, and restaurant promotional deals.
MARKET STRUCTURE
Market opportunity identification
A recent report by McKinsey & Company points out that the “business of delivering restaurant meals to homes” is rapidly growing and undergoing tremendous change as the involved companies seek to capture customers (Hirschberg, Rajko, Schumacher, & Wrulich, 2016). Foodora belongs to the category of “new delivery” players in this industry and the market for its services is estimated to grow to 20 million euros by the year 2025 (Hirscberg et al. 2016). Statistics show that the combined value of the New Zealand and Australian food delivery market is 1.6 billion pounds but the rate of penetration is still low at 22 percent (Shu, 2015).
The current competitors in the restaurant to home food delivery market in New Zealand are Menulog and delivereasy. Menulog is the leading food delivery business in New Zealand with over 500 partnering restaurants and a customer base of over 1.4 million people. Also, its acquisition by the global food delivery company Just-Eat provides it with extra funds to continue its expansion in the New Zealand. Menulog allows the customers to order food from the different restaurants through its website or through a mobile application it has developed. Its primary strength is the extensive network of restaurants which offers the customers a wide variety of meals and cuisines. Also, its system is user-friendly allowing an individual locate a favorite restaurant at ease and view others customer’s ratings about a particular venue.
delivereasy allows a customer to select a menu from a restaurant and makes the delivery to her or her door within forty-five minutes. An individual enters his or her address, and the website suggests the nearest restaurants and then a consumer proceeds to make an order based on tastes and preferences. The company has a scooter gang which ensures that the delivery to the customer’s door occurs within forty-five minutes after making the order. delivesreasy makes delivery in most location in Wellington and Auckland. Foodora will adopt the market development strategy. Entering into the New Zealand market presents challenges such as competition, seeking for restaurants to partner with, and developing a delivery system Brem & Wolfram, 2014). The success of Foodora in the New Zealand market depends on the strategic alliances and partnerships the company forms with the local restaurants and delivery people. Developing these partnership enables Foodora to catch-up in a market where it does not occupy the leading position (Twarowska & kakol, 2013). Market development enables Foodora to clearly and precisely identify the target market, the urban population, particularly in Wellington and Auckland.
Customer Analysis
The potential customers for Foodora’s premium food delivery are the middle class to the upper-class residents in the urban areas of Wellington and Auckland. These customers might make orders while at home or in their place of work and therefore, Foodora will target both home and office deliveries. The platform has four main types of users: those who do not want to cook dinner, people who want food delivered at their doorstep, individuals who are too busy and do not have time to eat out, and working persons who want a convenient option for lunch. Students, single individuals, and men of all ages are likely to adopt the service fastest.
The New Zealand Income survey points out that there was a $26 increase in the average weekly income of all people and overall wages have risen by 13% over the past one year (Johnson, 2015) to attain a salary of $48,000. The consumers are mainly of age between 18 and 54 years because they are the most frequent users of the internet and mobile devices. The consumers are also smartphone users because Foodora works by a customer making an over using a mobile application. Research New Zealand (2015) points out that 72% of adult citizens have a smartphone, a laptop, or a notebook and the figure is projected to rise to 90% by the year 2018. Also, 96% of the smartphone users have downloaded applications on their phone, and they use them mainly for social contact and information seeking.
Foodora addresses the customer’s need for greater convenience, choice of variety, and control over the meal choice. Convenience comes from the fact that the company enables the customer to eat the same high-quality quality food on offer in most premium restaurants anywhere: home, school, office. Variety means that a customer has a wide choice of foods, fresh and flavor full, to ensure that they do not get bored by the same menus every day
Market segmentation was by geographical location, population, and income levels. Foodora targets the Auckland because it has the largest population in New Zealand of approximately 1.4 million people while Wellington is the third city regarding population with about 200,000 people. Therefore, the total population of customers that Foodora targets are about 1.4 million individuals. Given an entire customer base of 1.4million people in the two towns, the median age in the country is 30 years, and therefore, 60 percent are between 18 years and 54 years. Therefore, the number of potential customers is 840,000, and in the first year, it is reasonable to estimate that at least 25% will try to order their meals using Foodora.
IMPLEMENTATION
Objectives
Unit sales objectives. Assuming that the potential regular customers will be 210,000 and each one of them orders a meal at least twice a week, at home and work, the number of units to sell per week are 42,000. Given that a year has 52 weeks, Foodora expects to deliver 21,840,000 units or orders in the first year. The calculation is based on the estimation that at least 25% of the 840,000 potential customers will convert and become regular users of the service. The measure will be the number of deliveries made the website or application keeps a record of every order made.
Financial Objectives. Foodora earns revenue in three primary ways: a 20% commission on every order delivered, advertising on the website and mobile application, and a small delivery fee. The company targets a total revenue of $200,000,000, costs of $150,000,000 and a profit of $50,000,000 in the first year of operation.
Marketing objectives. The company aims to build awareness by 15% by the end of this year. The measure for customer awareness is the number of inquiries and responses. Another primary objective is to partner with at least forty restaurants in each city by the end of the first year. The long-term plan is to build the market share, and in the next five year, the company intends to penetrate the market and attain further and expand the service to other New Zealand cities of Christchurch and Dunedin.
ACTION PROGRAMS
Product
Foodora gives the New Zealand customers the option of ordering food online from their favorite restaurant and get it delivered to their homes or offices or come pick it up. The customer enters his or her street address, the website or mobile app suggests the nearest restaurants. The customer selects one of choice, chooses the menu, and can either wait for delivery within thirty minutes or pick-up the meal personally.
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In the simplest terms, Foodora is an on-demand food delivery platform for delivering meals from the best premium restaurants to the customer’s doorstep and office. The company has uploads pictures of the various restaurants so that when the user logs in, there is access to the different menus offered by different restaurants. The packaging of the food is a critical issue that Foodora must get right. The package must be durable to ensure that the food is delivered in its original fresh state. The package will be of recycled paper strong enough to prevent any destruction or spoilage to the food.
Foodora offers a 24-hour customer service to its customers to answer their queries in the event an order has taken too long to be delivered. The customer service also receives feedback from the client on the rating of the food quality. Excellent customer service is crucial to encouraging the customers to use Fo...