Updated: Feb 25
This is an example of analysis we did for a food delivery business
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.
The target market of food delivery service company can be categorized in terms of demographic, behavioural and psychographic.
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,
The target market can be divided into two segments which are advocates and pragmatic.
Lack Culture of Dining Out
The advocates are target group who lack the culture of dining out . This most often is the case for the customers in India who brings home cooked food from home.
Owns a mobile
Whether consumers want to find/order a meal to eat in, takeaway or have delivered, increasingly the tool of choice is the mobile phone. Mobile apps and web based system play an important role in food ordering at this point of time . With more people using smart phones, increasing literacy and access to the Internet, it is highly recommended for food delivery business to leverage on this new opportunity.
Has good experience with online purchasing
The menu will be offered in multiple online platforms and they are familiar with apps. The customers should be familiar with the functions of the apps and the process of making online orders.
Customers who will stay with one food delivery company if they are efficiently served
Bloggers, Food critics
The pragmatic group of customers are always finding the best option to have their food delivered. They are usually not loyal to one particular food delivery company hence they will order food from other food delivery companies and might switch from other food delivery company due to poor service. They are the type of customers who wish to order food to save cost and time
1. Are fully scheduled
Customers have limited time to spend and will choose to have a short lunch
2. Are goal oriented and hardworking
Customers have datelines to catch up hence food delivery will be of convenience
3. Are peer conscious
Customers who order food if their colleagues are doing the same
4. Are private
Customers who prefer some space for themselves during meals.
5. Value technology that provides a productivity boost
Customers who wish to make full use of the technology to compare menus, price and reviews before purchasing
1. Are first in and first out of trend adoption
Customers who wishes to try out a new service especially if it is trending
2. Want everything
Customers who wants to subscribe to online food delivery services if their peers do
3. Go against the current mainstream
Customers who are longing to try something fresh and new,e.g idea or services
5. Are spontaneous
Customers who do not plan their meals and will spontaneously decide to order upon noticing an advertisement
6. Have a heightened sense of visual stimulation
Customers who are attracted to gorgeous visuals of food on advertisements
The target group of customers are those who choose to pay attention to what matter to them. They will filter information that they pereceive as not not useful to them.They browse website because they are feeling hungry and they are craving for something.This cravings can either lead to orders or can frustrate them and look for more options. They are customers who research a lot and want something cheaper and customers who trust reviews rather than recommendation from friends.
Segmenting your audience and environment this way is very important for you before embarking on your marketing journey. This will help you choose your marketing objectives and platforms precisely.
If you are also interested for us to do similar analysis for your business, do drop us a note and your message.