You will prepare a marketing promotion plan, including digital communications with an aim to deliver and communicate better values for a chosen product, service or brand, and for the targeted markets.
Marketing communication and promotional plan is one of the important documents, which is developed when an organization brings its new products and services to the market place. Marketing communication plan is a program to communicate or share its marketing message to its target audiences (Alagoz, & Hekimoglu, 2012). It is an important component of marketing plan. It includes different marketing communication and promotional strategies, which an organization uses to introduce and promote its new products and services to its target customers. This report includes the discussion about marketing and promotional plan for a leading food delivery service, i.e. Delivery Hero. Delivery Hero is a leading food delivery service that is founded in Germany and offering its services all over the world (Deliveryhero.com, 2017). The major objective of this report is to generate the value for The Delivery Hero by the use of promotional and marketing strategies and tactics. The below report includes current value analysis of the Delivery Hero by considering its customers and competitors. Furthermore, it consists of marketing communication and promotional plan for this company, which includes different promotional techniques and strategies.
Aim
The main objective of the report is to develop promotional strategies for Delivery Hero, so that it can generate value for its products and services.
Company Description
Delivery Hero is a web-based food delivery service that is originated in Berlin, Germany. The organization is listed publically and operating its business in more than 40 nations globally in Asia, Europe,, Latin America and Middle East and its partners with over 150,000 food outlets. In today’s business environment, food delivery apps are acquiring momentum because of their affordability and convenience. As per the financial report of the year 2017, this organization is an international leader in the categories, like; restaurants, orders and energetic customers. The company has experienced a significant revenue growth in the duration of 2010-2015.
The company is focusing on providing effective delivery services to its customers. Under this business, Delivery Hero has partnered with some of the restaurants and provides delivery and pick up services from these partnered restaurants (Deliveryhero.com, 2017).
Target Market
For introducing its products and services in the marketplace, the Delivery Hero is targeting the audiences by considering different characteristics of market segmentation. The target market of this company includes the customers from different ages and income level groups. Improvement in the digital technology is re-creating the mobile app market. The major target market for the company is the people, who are accustomed to the online shopping through websites and mobile applications. By considering the demographic characteristics, this food app is targeting the people from the age group of 18 to 30 years and who owns the smartphones. In addition to this, it is considering the corporate people (Andrews, & Shimp, 2017).
Value and Position Compared to Competitors
In today’s business world, the competition in this industry has increased as there are several mobile applications, which offer online food delivery services. In the Australian market, there are so many competitors of Delivery Hero, such as; Menulog, Deliveroo, Skip and Foodora. In the Australian industry, the value and position of Delivery Hero is better than its competitors because there is more product diversity at this due to its partnership with more than 150,000 food outlets. Foodora is more expensive than Delivery Hero and Menulog provides less product diversity than chosen organization.
Justification for Proposing Better Value
Increasing the customer base is one of the major reasons for proposing better value to this food delivery business. For creating more value, the management at Delivery hero can target the bachelors and business professionals, as they are unable to cook food and prefer to order food online. Introducing a simple and healthy food items would encourage the business professionals towards its services as they do not prefer to consume Fast food and heavy restaurant food routinely. Furthermore, lower delivery charges will also enable lower and middle class people to utilize their spending power in terms of healthy eating (Lunden, 2014).
Adoption of an appropriate methodological structure assists a researcher to assume the related findings and suggestions. Important elements of a research methodology include approach, design, data collection methods, data analysis, validity, reliability and ethical considerations. This section of the report will focus on gathering the data related to marketing of Delivery Hero for attaining customer satisfaction. There are two types of data collection methods, primary and secondary methods. Data related to the strategic position of Delivery Hero will be gathered from the websites and advertisements, which are displayed by the delivery app for enticing the people towards its services. There are some marketing techniques, like; STP, Segmentation approaches, which can be used for gathering the data for and understanding the target market. Conducting the value proposition will assist in understanding the value of customers and competitors in relation to Delivery Hero. It will support the research in creating and enhancing the value for its services (Barker, 2012).
From all methods, STP (Segmentation, Targeting and Positioning) is one of the most important and useful methods for identifying the target customers. The organization can use these approaches segmenting a large population, which is done on the basis of different segmentation approaches, i.e. demographic, psychographic, behavioral and geographic (Blakeman, 2018). Through positioning, the company thinks that how it will position its products and services in the market place, so that it can affect the target audience’s mindset positively.
Using STP framework for this report will assist Delivery Hero in recognizing the target audiences and give the required data, so that it can create and share future value of its delivery services. Furthermore, it will take the reviews and feedbacks of customers towards its services. It will upload a questionnaire on its website to get the feedback of customers through these related questions. It will also adopt the CRM, which will assist the company is collecting the required information from customers. Social media will also help the company is gathering the information and data from customers (Sedaghat, Sedaghat, & Moakher, 2012).
Customer Perceived Value
The marketing value of products is also known as customer perceived value, which shows the difference between evaluation perception of customers towards the costs and benefits of one product, when it is compared to other companies. Generally, it is said that customer is the king of market and they are the major assets of company. So, it is very important for organization to consider customers’ needs and preferences. Customer perceived value is directly proportionate to the quality of products and services of the company while considering the prices (Chavan, Jadhav, Korade, & Teli, 2015). For its delivery services, Delivery Hero is targeting the people, who are working and professionals. Thus, the company is delivering the all in one meal on reasonable prices. It has improved its services according to the needs and demands of its target audiences in Australia.
Apart from restaurant menu food, it is providing a fixed meal, which is simpler and healthy for the people, who order the food on daily basis. On the first food order, the company is not taking delivery charges from the customers. After that, it has kept the delivery charges low for increasing the volume. The services at Delivery Hero are very satisfactory in terms of delivery on time, prices, packaging and quality of food. The services of Delivery Hero are more affordable in the area, where it is located in Australia. A study of reviews and ratings of delivery apps shows the best rating for Delivery Hero (O’Hear, 2012). For instance, the rating gathered from restaurants shows four out of five stars, which is higher than its competitors. It indicates that company is offering satisfactory services to its customers. In this way, the company is able to approach and satisfy the needs of target audiences.
Competitor’s Value Analysis
In Australian online food delivery industry, there are so many other players, which are posing competition to Delivery Hero. These competitors are such as; Menulog, Deliveroo, Skip and Foodora. Menulog is one of the major competitors that are providing similar services to Australian people. It has also gained the four stars rating from the customers, which shows that Menulog is also equally successful in fulfilling the needs and wants of customers (O’Hear, 2012). Deliveroo is another food delivery site that delivers the food from premium restaurants. This organization has partnered with the premium food outlets, which has restricted its target market to higher income people. The delivery charges are also very high on this food delivery app. This is the major reason that there is decline in its customer base and growth. The rating of this competitor is lower than Delivery Hero in terms of pricing and quality of foods. Similar to Delivery Hero, these competitors are also using different advertising and promotional techniques to communicate their brand message to population. Thus, the research shows that pricing structure of competitors is higher than Delivery Hero and it can be analyzed by considering the feedbacks and reviews of customers on social media sites (Kimes, 2011).
Currently, Delivery Hero is positioned as a leading player in online food ordering industry (Miles, 2015). This organization is offering different values to its customers, which can be analyzed using value position framework that is stated below;
Functional Value
Delivery Hero Organization is offering online food ordering services to the Australian people. These services are very convenient and affordable for the customer, because they don’t require going outside to have food. By targeting working population, it has become very convenient for the people to get food at their home or offices (Pavlou, & Stewart, 2015).
Economic Value
The company is also providing economic value to the customer as the services are affordable for all the age groups. The app has partnered with all types of restaurants, i.e. premium and lower pricing.
Symbolic Value
By providing quality and affordable services, Delivery Hero is connecting the status and values of customers with its services.
Emotional Value
Delivery Hero is offering emotional value to its customers all over the world. The food ordering services of the company are attractive. People are emotionally attached due to its quality and on-time services, discounts and offers (Miles, 2015).
A promotional plan of the company is a part of its overall marketing plan that includes detailed promotional strategies and techniques for expanding the business and its products and services. This promotional plan is implemented by an organization under the promotional mix element of marketing mix strategies. Apart from this, there are some other elements of marketing mix, i.e. product, place, price, people, processes and physical environment (Belch, Belch, Kerr, & Powell, 2014). Under promotional mix element, the major objective of the company is to communicate its advertising message to target population and attract them towards their products, using advertising and promotional strategies. Delivery Hero will use various promotional mix elements as its techniques, like; advertising, sales promotion, personal selling and direct marketing. These are the major elements of promotional and communication mix, which will be used by Delivery Hero for approaching its customers (Todorova, 2015). Each and every element has been implemented with different goals and objectives, which are stated below;
Each and every organization chooses one or all these promotional mix elements for approaching its customers. It implements these elements with different objectives. The major objective behind this is to attract the customers towards its products and services and to emphasize on the advertising message that it needs to convey to the people (Castronovo, & Huang, 2012). These communication mix elements and their objectives, used by Delivery Hero are given below;
Under communication mix, advertising is a major tool that can be utilized for promoting the products and services among population. It helps the organizations to reach to a large population base within short duration. Under this technique of promotion, there are number of advertising activities, which assist the organization to contact the customers. Delivery Hero is connecting with the advertising agencies, through which it is promoting and providing its food delivery services to the target audiences (Fill, & Jamieson 2014). This food delivery application is utilizing digital or online, traditional and print media. It will use different media platforms in its promotional campaign. These media platforms are stated below;
Digital or online media can be adopted as the most significant way in the marketing promotional plan of an organization. Delivery Hero can use the digital media to promote its services to Australian population. In the advertising process, the major focus of the company is on social media networking sites, as the people are actively using these sites and mobile apps. Digital media is one of the best, which can be adopted by Delivery Hero to advertise its services with new offers and discounts. It is placing its ads on social media sites, like; Instagram, Facebook, Youtube, Twitter etc. It has created a page on Facebook with the name of company, where it will show the images related to its services. Through this mode of communication, the company can come to know about the reviews and feedbacks from customers (Kitchen, & Burgmann, 2010).
Apart from online media, traditional media is also an important method that can be adopted by Delivery Hero for sharing the brand message to the population all over the world. Under this category, this delivery service will use different modes, such as; radio and television. The people, who are not using social media sites, they can be approached through television and radio. It will give ads on TV in a creative and attractive manner, so that it can entice more people towards its food delivery services. In these ads, it can specify the names of its partnered restaurants and their menu specialty (Kotler, & Armstrong, 2011).
In addition to traditional and online media, the company will adopt print media also as it is one of the better ways to enhance the brand presence of Delivery Hero. Under this mode of advertising, people can be aware through different platforms of print media, such as; magazines, newspaper, billboards and posters. The advertisers of Delivery Hero will select domestic and national papers that are popular and most circulated in Australia. Newspapers and magazines are read by most of the population, so Delivery Hero will be able to communicate its offers and discounts to a large population easily. Magazines will also be beneficial for the company, as they have better life than newspapers (Wilson, Zeithaml, Bitner, & Gremler, 2012). Females or women read magazines in their daily routine; they come to know about different restaurants through this mobile app. This food delivery app will communicate its advertising message in the newspapers and magazines in an attractive and smart manner.
Sales promotion is a process of encouraging the customers to purchase the products and services of a company. Under this communication technique, the major objective of Delivery Hero will be increasing the customer demands and market demand, enhancing the purchase sizes and enhancing the availability of the products by the use of media communications. For attracting the people, the organization will charge reasonable food delivery charges (Pacheco, & Rahman, 2015). In Australia, Delivery Hero is popular among the people for delivering the food items timely. The company will provide some discounts and offers on first order with Delivery Hero. For promoting the sales, it is offering some free gifts and gift vouchers with the food delivery.
Direct marketing is the process of advertising that consists of delivering the promotion message about the product and services of company without hiring a middleman. Through this communication technique, the major objective of Delivery Hero will be increase the brand awareness and develop customer loyalty (Lee, Sridhar, & Palmatier, 2017). Under this advertising tool, Delivery Hero is communicating with its potential customers adopting different mediums, like; newsletters, e-mails, brochures, catalog, text message, online ads, telephonic communication etc. It will help the food delivery organization in developing brand loyalty and brand image among Australian population.
This is an advertising technique, through which an organization uses its people to sell its products by contacting the customers face to face. The company will use this technique with the objective of increasing brand awareness. For Delivery Hero, delivery people of company may play an important role, who physically communicates with its customers. The sales person of the company will be customer friendly and professional. It is hiring the hard working and qualified people for delivering food to customers (Deeter-Schmelz, 2017). It will assist the firm in enhancing its brand value in global market.
To manage all the above advertising and promotional techniques, Delivery Hero will develop a budget by allocating sufficient amount to all these techniques. This digital communication budget is stated below;
|
Promotion Modes |
Amount |
|
(in $) |
|
|
Social/Digital Media Marketing |
|
|
1. Facebook |
$5,000 |
|
2. Twitter |
$3,500 |
|
3. Youtube |
$4,500 |
|
Total Social Media |
$13,000 |
|
E-mail Marketing |
$20,000 |
|
Google Ads |
$5,000 |
|
Other Online promotional Campgains |
$30,000 |
|
Total Budget for Online Media |
$68,000 |
|
Print Media |
|
|
1. Newspaper |
$10,000 |
|
2. Magazine |
$20,000 |
|
Total Print Media |
$30,000 |
|
Broadcasting Media |
|
|
1. TV Channels |
$50,000 |
|
2. Hoardings |
$20,000 |
|
Total |
$70,000 |
|
Sales Promotion |
$5,000 |
|
Personal Selling |
$2,000 |
|
Direct Marketing |
$2,500 |
|
Total Required Budget for Promotion |
$177,500 |
The above budget indicates the amount that will be invested by Delivery Hero Company on its different advertising and promotional mix elements (Ricky, 2014). By using this promotional plan, the company will be able to convey the appropriate values to its target market.
Conclusion
The above stated report is about the promotional and communication plan of Delivery Hero. The report includes the discussion about the promotional and advertising techniques with their objectives. The organization is adopting these techniques for communicating its brand message to people. It is targeting the people from all age groups and income level groups. By the implementation of this promotion plan, company will be able to approach and attract the customers towards its food ordering services through above techniques. It consists of a promotional budget for the company’s activities. The organization will use this budget for attracting the people towards its products and services.
References
Alagoz, S. M., & Hekimoglu, H. (2012). A study on tam: analysis of customer attitudes in online food ordering system. Procedia-Social and Behavioral Sciences, 62, 1138-1143.
Andrews, J.C. & Shimp, T.A. (2017). Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education.
Barker, R. (2012). Integrated marketing communication. Juta.
Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2014). Advertising: An integrated marketing communication perspective. McGraw-Hill Education.
Blakeman, R. (2018). Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield.
Castronovo, C., & Huang, L. (2012). Social media in an alternative marketing communication model. Journal of Marketing Development and Competitiveness, 6(1), 117.
Chavan, V. Jadhav, P. Korade, S. & Teli, P. (2015). Implementing Customizable Online Food Ordering System Using Web Based Application. International Journal of Innovative Science, Engineering & Technology, Vol. 2 Issue 4.
Deeter-Schmelz, D. R. (2017). Personal Selling and Sales Management Abstracts. Journal of Personal Selling & Sales Management, 37(2), 170-184.
Deliveryhero.com (2017). Delivery Hero – The Easiest Way to Your Favourite Food. [online] Deliveryhero.com. Available at: https://www.deliveryhero.com/ (Accessed on 18 January 2018).
Fill, C. & Jamieson, B. (2014). Marketing Communications. Edinburgh Business School.
Kimes, S. E. (2011). The current state of online food ordering in the US restaurant industry. Cornell Hospitality Report, 11(17), 6-18.
Kitchen, P. J., & Burgmann, I. (2010). Integrated marketing communication. John Wiley & Sons, Ltd.
Kotler, P. & Armstrong, G. (2011). Principles of Marketing 14th Edition. Pearson Education.
Lee, J. Y., Sridhar, S., & Palmatier, R. W. (2017). The effect of firms’ structural designs on advertising and personal selling returns. International Journal of Research in Marketing, 34(1), 173-193.
Lunden, I. (2014). Delivery Hero Joins the $1B Valuation Club As it Gobbles Rival Pizze.de. Retrieved from https://techcrunch.com/2014/08/14/delivery-hero-joins-the-1b-valuation-club-as-it-gobbles-rival-pizza-de/. (Accessed on 18 January 2018).
Miles, L. D. (2015). Techniques of value analysis and engineering. Miles Value Foundation.
O’Hear, S. (2012). Take-Out Wars Heat Up: Delivery Hero Raises Further $50 M to Race Just Eat to Global Domination. Retrieved from https://techcrunch.com/2012/08/27/take-out-wars-heat-up-delivery-hero-raises-further-50m-to-race-just-eat-to-global-domination/. (Accessed on 18 January 2018).
Pacheco, B. G., & Rahman, A. (2015). Effects of sales promotion type and promotion depth on consumer perceptions: the moderating role of retailer reputation. The International Review of Retail, Distribution and Consumer Research, 25(1), 72-86.
Pavlou, P. A., & Stewart, D. W. (2015). Interactive advertising: A new conceptual framework towards integrating elements of the marketing mix. In New Meanings for Marketing in a New Millennium (pp. 218-222). Springer, Cham.
Ricky, M.Y. (2014). Mobile Food Ordering Application using Android OS Platform. EDP Sciences.
Sedaghat, N., Sedaghat, M., & Moakher, A. K. (2012). The impact of promotional mix elements on brand equity. American Journal of Scientific Research, 43(1).
Todorova, G. (2015). Marketing Communication Mix. Trakia Journal of Sciences, Vol. 13, pp 368-374.
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hil
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