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STRATEGIC MARKETING :ANALYSIS OF FOOD DELIVERY SERVICE

Updated: May 15, 2021

A strategic analysis is an important step before we embark on a marketing plan. It is important to learn how to analyze your audience and market.

This is an example of analysis we did for a food delivery business


SITUATIONAL ANALYSIS


Environment

The situation analysis is required prior to setting up a marketing strategic plan. The culture of food delivery and ordering online is growing at an unimaginable rate. Food delivery is more common for restaurants that serve Pizza such as Domino’s Pizza and Pizza Hut.


Current Trend in the Food Delivery Industry


1. More consumers will order food online and at a higher frequency

In this century, due to busy schedule and heavy traffic, ordering online has become so normal and easy for consumers that we only expect the growth and frequency of that trend to increase.


2. Technology will continue to propel the industry forward

Technology is the lifeblood of every industry, and with modern users’ digital expectations, alongside fierce competition in the food delivery industry, new and creative use of technology is the only way to succeed. With the high usages of smartphone, consumers prefer to order their food vide the online services by downloading apps and choosing the favourite food.


3. Variations in the Common Delivery Model

As soon as a new trend is adopted by certain key players in the industry, others will follow suit.


4. In-house and third party delivery services will compete fiercely

The rise of third party delivery services like foodpanda, UberEATS and DeliverEAT have undoubtedly disrupted the food delivery space, in the same way Uber and Airbnb have shaken up the traditional business models of taxi firms and hotel.


TARGET MARKET

The target market of food delivery service company can be categorized in terms of demographic, behavioural and psychographic.


Demographic

Most of the online food delivery demands come from the age group of 18-40 years whereby 65 % of the target market are below 35 years of age. The male seems to outnumber the number of females in this composition. The target generation are the millenials who are more internet savvy, selective , confident and impatient. A characteristic many millenials share is leading a busy on-the-go lifestyles. The most recent key to convenience is delivery. They use social and mobile media to get recommendations and make decisions about where they are going to dine. They expect good quality food at reasonable prices, a departure from the super-sized, all-you-can-eat tactics that worked on previous generations. Millennials greatly value their friends’ opinions when making decisions, hence it is advisable to spend less on new marketing and capitalizing more on your existing customer base.

With an increasing number of people being productively employed in lucrative industries, they have increased their living standards and made their wallets fatter too. The target group are mainly the middle income segment who have a higher disposable income.

Food Delivery Service Company targets the population in urban and semi urban locations because the city dwellers have a very busy life. The customers need to keep up with the hectic schedule and they need immediate, reliable and assistance for their day-to-day tasks. Urban and semi urban locations are ideal and potential market segment due to increasing internet penetration & rapid smartphone adoption,


Marketing Solution

The best marketing solution will be to create a social media campaign targeting urban audience and working adults or parents who want to order a quick meal.

The analysis below provides you insights on how to select your audience based on their behavioural on social media and Google Ads campaign.