The business I have chosen is Foodora company which is a Berlin Based company that involves dealing with online distribution and delivery of food to the customer premises, home and office. It usually offers different meals including fruits from various countries in the world for example in Australia. In order to acquire their services different customers are able to browse through the internet and search several available restaurants in Australia and place a meal order which is delivered through a motor bike or use of a delivery vehicle. It’s evident that Foodora has expanded its market base and share of market in the economy in Sydney.
Current business operation
Product
The products are of high quality and readily available in large amounts. Meals are available from all kinds of countries and sells different cultural meals from different communities in the world. Fruits available are of all kinds. Examples of fruits in my store; apples, Avocados, grapes, plums, strawberries, persimmons, kiwifruits, bananas, cantaloupe, pears, lemons, mangoes, papayas, watermelons and, many more (Armstrong et al, 2015 p.45). Vegetables that would be found in my store would be; green beans, celery, spinach, parsnips, okra, eggplant, yellow squash, bell peppers, arson squash, tomatoes and many more.
Operations.Foodora company basically Is composed of a website or a certain mobile app where food consumers can often browse the existing large companies which are located near their areas of operations. They then easily place an order by selecting the preferred food of their choice. The food is then picked by one of Foodora foodsters or employee and efficiently delivered to the customer within a short period of time.
Location and distribution
This business unit is located on the outskirts of one of the major Australian towns, including Melbourne and Brisbane which is the most strategic position. It ensures that distribution is done in the most appropriate way. Distribution would be made to both wholesale and other retails vendors through online ordering. (Armstrong et al, 2015 p.95). The wholesale distributors would be so important since they would buy a large variety of products at a considerable price and this will ensure profits for the business.
The distribution would also be made on orders to various places such as school and other learning institutions.
Pricing Models
Various business enterprises utilize distinct pricing strategies during selling products or offering services. In this case Foodora company can set its price in order to optimize profitability for each unit product taken to the market for sale to increase its overall market share. Therefore, pricing models involve the methods of pricing where all costs incurred are recovered which includes variable cost and fixed cost of the Company’s product.
Contribution margin-based pricing
This model usually maximize the profitability as got from each unit which is the difference between the initial price and variable costs.
Skimming
Here, products are priced high so that less good sales are required to break even. Skimming the entire market involves selling goods at higher price to get high profitability ratios. This model will be used by Foodora company to target customers who will adopt a certain food product from the restaurants. Jegadeesh et al (2017) argues that this strategy can used to recover the investment costs incurred during the startup and its used with other pricing tactics for example penetration to acquire a wide market share.
Loss leader
This requires selling of the food products at a low profit to propel other profitable sales. This aids the company to expand its market share based. The restaurants working with Foodora company should employ this strategy to make customers buy the food with high marked prices to produce an increased profit.
Penetration pricing
Foodora company can decide to set the price low with the aims of attracting food customers and gaining a larger market share. The price will be increased once the customer base is established to increase the company rapid market recognition
Price discrimination
This requires the company to set a different price for similar goods in different market segments
Premium pricing
Typically, thus method requires maintaining the price for a good high so as to focus an encourage favorable perceptions among customers. This make the consumers perceive highly that expensive products are exceptional, desirable and of high quality (Jegadeesh et al 2017, p.106). Foodora company realize the nature of the food buyers in various Australian cities for instance customers are aspiring for changes and willing pay more for trends. Evolving the food products and modes of delivery is a key factor.
Customer segments
Customer segmentation is the process where customers are divided into small manageable groups considering their common characteristic so as to aid in the marketing process. Customer segmentation is done basing on four pillars (Johnson, 2016 p.57). These pillars are; geographic, demographics, psychographics and behavioral.
Under the geographic, a number of things are considered and these are the language of the people, the city of interest, and the climate of that area and so on (Johnson, 2016 p.157). For demographics things put into consideration are like the age, gender, income, education, social status, family, life stage and occupation of the persons of interest.
The psychographics looks at the lifestyle, personality values, attitudes and concerns of the persons targeted. The behavioral is the last pillar and it takes into account things like the passage usage, buyer stage, intent, benefits sought and the occasion of purchase by the customer.
Branding and positioning
Branding and positioning are very important for the success of any business. In this Foodora company food distributors, the branding is very unique and strategic so as to attract more customers and retain them too. The company branding in the social media is very unique and irresistible and this is exactly what makes customers keeping running to us.
Current promotion and marketing materials
We do carry out surveys and ask our customer the types meals, drinks, fruits and vegetables they really need to order from the restaurants through survey and questionnaires in the company website and mobile application (Sugathapala et al,2015 p.109). We make an effort of bringing what the customers want and we carry out a number of promotions to make them buy. There are discounts that are also given to encourage the customers to make a purchase. We also have and do circulate a number of fliers and brochures to explain what we deal with and this is a really big boost for us
There is this great idea of having different branches if this shop in various cities all over the countries, it was proposed by our customers. There a number of customers who have to travel for long distances just to access of products (Iacob et al, 2012 p.156). Having these branches scattered all over the country will be very great for them and would also make it possible for us to make more profits.
Applicability
This recommendation was considered and after a lot of consultations, it was agreed that the shop is planning to open various branches in various cities in the country. Five more branches would be opened than other more will follow depending on the demand and supply of fruits and vegetables that we do have.
Future integrated marketing plan
Plan overview
The plan of Foodora company in Australia is to start various branches in various other cities around the country, apart from Sydney. In a matter of fact. even the superior products cannot sell it, customers have to have every detail and information about the product I am selling, and this will, therefore, require me to employ the promotional mix. Here I have to bring together a number of factors such as advertising, publicity, promotion involving sales, direct marketing strategies and personal selling (Aspara et Al,2013 p.45).
Target market
Foodora company has an open market, there are no specific persons targeted. All kinds of people do eat vegetables and fruits. I can say that our target is on the general population in these various cities that we are planning to open our branches.
Public relations refer to all the activities that are deliberately undertaken so as to generate some kind of publicity and increasing goodwill thus bringing about increased sales (Aspara et Al,2013 p.99). It may include hosting several events and media coverage.
In relation to the promotional mix, advertising can be defined as the appropriate delivering of a message to the targeted market that should result in favorable reactions such as increased sales. Our advertising channels and media would be as the one shown below (Aspire et Al,2013 p.145).
Sales promotions are just like advertising, but in this case, some kind of reward is awarded for a certain behavior. We purpose to offer certain gifts and rewards to our customers in our sales promotion (Luzzini et al,2012 p.56).
Foodora company involves use of digital online marketing to target customers who use the internet sites for example Facebook and make them order the meals in order for it to be delivered to their premises. Direct and digital marketing involves an interactive marketing scenario whereas a variety of media is used as a means of getting a response from a database of targeted consumers (Garbi & Loureiro, 2013 p.127).
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Aspara, J., Lamberg, J.A., Laukia, A. and Tikkanen, H., 2013. Corporate business model transformation and inter-organizational cognition: The case of Nokia. Long Range Planning, 46(6), pp.459-474.
Iacob, M.E., Quartel, D. and Jonkers, H., 2012, September. Capturing business strategy and value in enterprise architecture to support portfolio valuation. In Enterprise Distributed Object Computing Conference (EDOC), 2012 IEEE 16th International (pp. 11-20). IEEE.
Jegadeesh, N., Noh, J., Pukthuanthong, K., Roll, R. and Wang, J.L., 2017. Empirical tests of asset pricing models with individual assets: Resolving the errors-in-variables bias in risk premium estimation.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Sugathapala, I., Kovacevic, I., Lorenzo, B. and Glisic, S., 2015. Quantifying benefits in a business portfolio for multi-operator spectrum sharing. IEEE Transactions on Wireless Communications, 14(12), pp.6635-6649.
Luzzini, D., Caniato, F., Ronchi, S. and Spina, G., 2012. A transaction costs approach to purchasing portfolio management. International Journal of Operations & Production Management, 32(9), pp.1015-1042
Shim, J., 2013. Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification. Journal of Banking & Finance, 37(3), pp.761-772.
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