This report analyzes Just Eat, a British online food order and delivery company, and its expansion into Poland. It includes an analysis of the company, the online food order and delivery market in Poland, consumer buying behavior, and a marketing mix analysis. The report recommends using an adaptation strategy for entering the Polish market.
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Just Eat-Individual Case Study Analysis
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Table of Contents INTRODUCTION...........................................................................................................................3 Analysis of company(Just Eats)..................................................................................................3 Analyse the online food order and delivery market in Poland....................................................4 Analyse consumer buying behaviour (in Poland) for online food order and delivery................6 Marketing Mix Analysis of Company and its competitor...........................................................7 SUMMARY................................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENECES............................................................................................................................10
INTRODUCTION Global marketing strategy is determined as the effective strategy that is obtained by the companywhileexpandingtheirbusinessatinternationalmarketplaceandimplementing marketing efforts towards the same for enhancing awareness about them at marketplace. This simply provides support to businesses in attaining success at global scale which also increases their sales as well as probability (Schlegelmilch, 2016). The present report is based on Just Eat, a British online food order and delivery company. The respective company was incorporated in the year 2001 and is headquartered in London, England. The company is already performing well in UK and other operating country but it is now emphasizing expanding its business in Poland for attaining success in better manner. This report includes detailed description on analysis of the Just Eats, further analysis of Poland's online food order and delivery market. At last, global marketing strategy will be developed for Just Eats with the usage of Standardisation and adaptation towards new market. Also application of marketing mix framework will also be performed for enhancing chances of success at Poland. Analysis of company(Just Eats) The company basically works as the intermediary between food outlets or stores and customers.It is an organization which is a public limited company having almost 30,000 restaurant across the world. Company mainly deals in providing online food services so that they can attract large number of customers towards their organization.The key people of Just Eats are Peter Duffy is the CEO, Paul Harrison (CFO) Just Eats is performing well with the UK market and other countries, it is having stronger customer base which supports them in maintaining their business functioning and attaining success in rightful manner. By analysing recent financial implication due to Australian market, the company is planning to expand its business European countries especially in Poland. Current revenue of the company is almost £ 1.0 billion, whereas the net income of Just Eats is almost £ 77.9 millionas per the year 2018. From 2012-2017 CEO of the company was David Rathros.Increase trend of digitalization has enhanced growth of this online food delivery company which is offering quick delivery services to its customers from their favourite food restaurant (Results and reports, 2020). Apart from this, it has been analysed that business activities of Just Eats company is basically performed by total number of 3600 employees who manages every work effectively and also contributes in the success of company in rightful manner (Keegan, 2017). The company is also having strong presence in Italy, Switzerland which is further moving to Canada too. Competitiveness within online food delivery service is relatively high as it has major rivals such as Uber Eats, Mr. Delivery, Delivery.com, Delivery Hero, DoorDash, Takeaway.com, Postmates, GrubHub and many other operates their at both the national and international scale.
Analyse the online food order and delivery market in Poland The overall population in Poland is around 38,652,583 people. It is constantly increasing day by day which simply means there are huge chances of success for this company in Poland as it can easily find out its potential customers who will provide them business in the near future. It will be difficult for this company to influence restaurants to enter into tie up with Just Eats. This is so because, the company is new in this market thus restaurant might not trust them (Steenkamp, 2017). This can be seen as the major challenge for them in Poland. Online food order and delivery market in Poland is growing constantly as number of companies are increasing in this sector in rapid manner. Also, technological advancement is acquired by this sector effectively in order to serve the customers in such a manner that will influence them to make purchase from the same company again and again.There are some benefits which includes secure payment, discount, price guarantee, quality and many more.With the help of this company can increase their profitability and sales of the company and grab attention of large number of customers towards their organization. Competitive analysis Porter's five force analysis Porter's five force analysis is mainly used by businesses for analysing overall industry in deep manner. This analysis directly provides support to the businesses in taking right strategy that could bring success to them in rapid manner. All five forces of this framework is specified as below: Threat of new entrants (Moderate):Influence of this force is relatively moderate for online food order and delivery company as it has few entry barriers which makes it easier for every entrant to enter into the industry. But, at the same time it requires huge capital to establish their business in the online food order and delivery sector. This shows moderate effect of this force over the industry. Threat of substitutes (High):With the technological advancement, existing rivalry are trying to introduce new product in order to grab attention of the existing customer and attain success in rightful manner (Armstrong and et. al., 2018). There are probable chances that competitors might introduce drone delivery which will directly hamper demand of online food order and delivery. Bargaining power of buyer (High):Here, influence of bargaining power of buyer is high for Just Eats. This is so because, customers have lots of options from where they can order required food item. Thus, with reference to online food order and delivery market in Poland it can be said that buyers can easily move to another company where they will get better services at low cost. Bargaining power of supplier (Moderate):Suppliers are the one who provide raw material and other required things. The influence of this force is relatively high for online food
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order and delivery sector in Poland. This is so because suppliers for this sector are restaurant who provides them food to deliver it to the customers (Rao-Nicholson and Khan, 2017). Number of restaurant are very high in Poland, thus if suppliers do not support the company then it won't be able to serve its customers. Competitiveness rivalry (High):Competitiveness within the industry is very high as it has huge number of companies who are leading the sector in effective manner. Main competitors for this company are Uber Eats, Mr. Delivery, Delivery.com, Delivery Hero, DoorDash, Takeaway.com, Postmates, GrubHub. In order to sustain longer in the industry, it is highly important for the company to serve high quality services to its customers so that they can satisfy its customers in lucrative form and sustain longer within the same industry (Zaveri and Amin, 2019). With the help of an analysis it has been said that analysed that there are various competitorsavailableatthe marketplacewhichmightaffectthewholeperformanceand profitability of the company. Deliveroo is one of the biggest competitors which provides high quality goods and services. Company offers high quality of products to their customers according to their requirements and needs.
Analyse consumer buying behaviour (in Poland) for online food order and delivery Demand for online food in Poland/consumer behaviour in Poland (Source: Online Food Delivery Revenue in Poland,2020) On the basis of above graph, it can be interpreted that revenue generation within online food deliveryindustryof PolandequalsapproximatelyUS$452min2020. Thisrevenue generation is forecasted to be implying annual growth rate of 11.6%. This means the resultant market volume of US$703m by the end of the year 2024. The figures largely signify the inclination of vast majority of population of Poland towards online delivery of food and beverage items (Online Food Delivery, 2020). Standardisation or adaptation strategy for Just Eat in Poland Standardisation is an approach to marketing whereby the firm advertises the commonality underlying within the products when sold in a variety of markets across the globe. On the contrary,adaptationisamarketingapproachwhereinthecompanystressesuponthe incorporation of alterations done within products of company as per the market in which firm is selling the products (Baena, 2019). As per the analysis of both the strategies, it can be said that adaptation would be the most suitable strategy for Just Eat PLC as it would allow the respective online food delivery company Illustration1: Online Food Delivery Revenue in Poland
to adapt their offerings as per the market in which it operates. This will aid the enterprise in appealing to the customer base of Poland and retaining them for a long period of time in future context. Market entry strategy Just Eat for Poland It is important for Just Eat to take into account the different types of market entry strategies in order to determine the most suitable one for it. In this regard, the entity is looking upon3strategies,strategicalliances,licensingandfranchising.Theseareexplainedas underneath:- Partnering and strategic alliances This is an effective alternative as a strategy to enter into new market by facilitating collaboration with the local partners. It includes a contractual agreement between two or more ventures in which that involved the parties perform in definite way with certain period of time to accomplish a common goal. Licensing and Franchising These two are similar concepts and both are widely used by companies across the globe. The major distinction that lies between both the strategies is that licensing consists of selling the product and services through other person while franchising refers to give permit another person to sell the matching product in the other location (De Mooij, 2018). Hofstede's Six Dimensions of Culture It refers to a model which is used by large number of organizations in order to know the culture and belief of different countries. This model consist of six main elements which are going to be discussed as follows: 1.Power Distance Index:It refers to the dimension where high power shows that individuals living within the country adopting unequal behaviour in a positive manner whereas low index shows that they share their power with each other. 2.Individualism versus Collectivism:In this context, high individualism shows that people do not have strong relationship with their families and groups whereas collectivism shows that people are highly associated with their groups and perform their task in an effective manner.
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3.Masculinity versus Femininity:High masculinity shows that individuals living within the countryfocusesandgivemorepowerorauthoritytothemanworkingwithinthe organization. On the other hand low femininity shows that females are compared to be less in front of males. 4.Uncertainty Avoidance Index: People whoscore highin context of uncertainty avoidance attempt todevelop theirlife as predictableaswell ascontrollable as possible. On the other hand, in case of low score people are more relaxed, relief and open minded. 5.Long- Versus Short-Term Orientation:Individuals living in the country who have long term orientations work to get long term benefits whereas in context of short term people are more focused to truth, principles and are totally religious. 6.Indulgence versus Restraint:High score indulgence says that people are free to do there work and can easily enjoy their life whereas low score shows that people living within the society are strictly following all the rules and Norms. Marketing Mix Analysis of Company and its competitor Marketing mix is a combination of strategies, actions and tactics applied by a company to appeal to people within a market place. The marketing mix of Just Eat in comparison with one of its biggest rival named Pyszne is presented beneath:- Product: Just Eat is engaged in sale of offerings within 5 categories and all of these categories act as individual product line. The firm sells differentiated products and services which makes it stand distinctly among the competitors. On the other hand, Pyszne offers wide variety of products as per the demands of people in market place. Price: Just Eat follows competitive pricing strategy whereby the firm sets prices after taking into account the strategies adopted by rival firms within online food ordering industry. Opposed to this, Pyszne follows value based pricing strategy wherein the focus of this organisation is upon setting the prices of food and beverages in a manner such that consumers feel that the value they are being charged is worth the product they receive in return (Steenkamp, 2017). Place:
Just Eat does sale of its products with the usage of 2 channels. The first one is direct sale through organisational website. The second one whereby the sale takes place through passage of goods from wholesalers to retailers across United Kingdom. On the other hand, Pyszne does direct selling of products via company's website and mobile application. Promotion: Just Eat makes use of a mix of promotion channels. In context of traditional media, it capitalises upon advertisement via radio and television. Further, it leverages social media and online marketing to advertise the offerings of company on a large scale (Ratten, 2017). Contrary to this, Pyszne makes use of social media and digital marketing strategies to gain the attention of people in market. SUMMARY The overall project was based on Just Eats a well known online food order and delivery company of UK which is planning to expand its business in Poland for enhancing their profitability. For developing effective marketing strategy for its business expansion, range of frameworks like porter's five force analysis, 4Ps of marketing have been used in order to attain success in the same industry within Poland. On the basis of overall analysis, it is recommended to this company to make use of adaptation strategy while entering into Poland as it will help them influencing interest of customers towards them (Wu, 2016). Also, it is further suggested to the company partnering strategy as the main market entry strategy as it helps them out in establishing business in Poland with lower chances of failure. CONCLUSION On the basis of overall analysis performed in the above section, it is concluded that global marketing strategy helps company in succeeding at international scale and also provides them support in obtaining higher profitability in the same market place. It has been further determined that the adaptation is determined as the effective strategy that provides support to the company in establishing their business in the new country in appropriate manner. In addition to this, it can be further said that the comparison of marketing mix of companies helps firm in determining their weak areas and providing them opportunity to improvise it as per the requirement.
REFERENECES Books and Journals Schlegelmilch, B. B., 2016. Global marketing strategy.Cham: Springer Nature. Keegan, W. J., 2017.Global marketing management. Pearson India. Steenkamp,J.B.,2017.GlobalMarketingMixDecisions:GlobalIntegration,Not Standardization. InGlobal Brand Strategy(pp. 75-109). Palgrave Macmillan, London. Armstrong, G. M., and et. al., 2018.Marketing: an introduction. Pearson UK. Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing strategiesinemergingmarketcross-borderacquisitions.InternationalMarketing Review. Baena, V., 2019. Global marketing strategy in professional sports. Lessons from FC Bayern Munich.Soccer & Society,20(4), pp.660-674. De Mooij, M., 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Steenkamp, J. B., 2017.Global brand strategy: World-wise marketing in the age of branding. Springer. Ratten,V.,2017.Genderentrepreneurshipandglobalmarketing.Journalofglobal marketing,30(3), pp.114-121. Wu, C. W., 2016. The international marketing strategy modeling of leisure farm.Journal of Business Research,69(4), pp.1345-1350. Zaveri, B. N. and Amin, P. D., 2019. Global Marketing Strategy in Digital Era: Global Online Presence. InBreaking Down Language and Cultural Barriers Through Contemporary Global Marketing Strategies(pp. 103-112). IGI Global. Online OnlineFoodDelivery.2020.[Online].AvailableThrough: <https://www.statista.com/outlook/374/146/online-food-delivery/poland#market-revenue>. Resultsandreports.2020.[Online].AvailableThrough: <https://www.just-eat.com/investors/results-reports>.