Understanding the Value Proposition in Marketing

This assignment delves into the concept of the customer value proposition within marketing. It examines the historical development of this idea, explores various frameworks used to define and analyze it, and encourages students to critically evaluate its application in different market contexts. The assignment likely requires students to research and synthesize information from academic sources, marketing case studies, and industry examples to demonstrate their understanding of the customer value proposition's significance.

Running head: MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Name of the Student
Name of the University
Author Note

1MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Executive Summary
The analysis in the report is based on the formation of the promotional mix, the pricing and
budget strategies of an organization. The company that is taken into consideration is
Deliveroo, which provides online food delivery service. The organization is analysed based
on the various aspects of the organization which include the analysis of the value of
Deliveroo. The competitors of the organization are also analysed in detail. The promotional
mix of Deliveroo is formulated in the report. The report is concluded by stating the company
needs to improve the various aspects of the business including its promotion and the
relationship with the customers. Digital marketing is considered to be the best way by which
this improvement can be brought in Deliveroo.

2MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Table of Contents
Introduction....................................................................................................................3
Methods of research.......................................................................................................4
Ways of creating value...................................................................................................4
GDP Growth of Australia...............................................................................................5
Demographic data of Australia......................................................................................6
Market analysis of Deliveroo.........................................................................................6
Target market of Deliveroo........................................................................................6
Analysing the three major competitors of Deliveroo.................................................6
Perceived values of the customers of Deliveroo............................................................8
Value propositions of Deliveroo................................................................................8
Value position of Deliveroo.......................................................................................9
Product Life Cycle of Deliveroo..................................................................................11
BCG Matrix Analysis of Deliveroo.............................................................................12
Market growth of Deliveroo.........................................................................................13
Customer relationship of Deliveroo.........................................................................13
Promotional plan..........................................................................................................13
Promotional mix Deliveroo......................................................................................13
Sales data of Deliveroo................................................................................................15
Increase in digital communication...........................................................................15
Conclusion....................................................................................................................15
References....................................................................................................................16

3MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Introduction
Marketing can be described as the organizational function which consists of a number
of processes that are required to create, communicate or deliver the values to the customers
and thereby to manage the relationships with the customers in such a way so that the
stakeholders and the organization can gain benefits from them. The process of marketing is
related to the identification of the needs of the customers and the society and meeting the
needs as well. Marketing can also be defined as the science and the art of the ways by which
the target markets are chosen and the customer base is grown with the help of the creation,
delivery and communication of the superior consumer values (Aghdaie&Alimardani, 2015).
The report is based on the analysis of Deliveroo Food Delivery Service and the ways
by which the organization can deliver better services and values to the customers. Deliveroo
is mainly an internet-based food delivery service that has its origins in Britain. The
organization was founded in the year 2013 and the founders of Deliveroo were two
Americans namely, Greg Orlowski and Will Shu. The head-office of Deliveroo is in London
and it has operations in more than eighty cities of the world including, France, Netherlands,
Germany, Ireland, Belgium, Italy, Spain, Singapore, Australia, Hong Kong and UAE
(Deliveroo.com.au., 2018). The orders related of Deliveroo are placed through the website or
the app and then the food is delivered by the courier transport from the different restaurants to
the customers. The different ways by which Deliveroo can improve its services in Australia
and further increase its value will be discussed in the report.
Methods of research
The research related to the experience of the customers can be gathered from the
reviews that are provided in the website. The feedback of the customers can be analysed and
then the data is formed accordingly. The survey can also be done based on the buying

4MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
intentions of the consumers and ways by which they tend to choose the services. The other
methods that can be used for research are, expert opinion, trend analysis, market-test method,
secondary sources and expert panel. Marketing research can be defined as the methodical
design, collecting the data, analysing the data and reporting the data and the findings that are
relevant to the specific situation of the marketing activities of the organization (Borochin,
Ghosh & Huang, 2016). The process of marketing research consists of many steps which are,
defining the research objectives and the problem, developing the plans of the research,
collecting the information, analysing the information, presenting the findings and making the
decisions. The research related to Deliveroo was also done based on these steps and process
of marketing research.
Ways of creating value
Deliveroo had started its operations in Australia in the year 2015 and they have
created value related to the processes of the organization so that they can create a customer
base. Deliveroo has a well-designed website and mobile app that provides a perfect platform
for the customers and restaurants so that they can successfully interact with each other. The
app of the organization also provides marketing opportunities to the restaurants. Deliveroo
takes the orders from the customers and also promotes the restaurants in the website
(Dolnicar&Leisch, 2017). The technologies that are used by Deliveroo are quite advanced
and helps in speeding up the process food ordering and delivery. The organization has
developed a platform for its website and mobile app which provides information related to
factors like, optimising the preparation of food and reducing wastage of food as well. This
process will help in making the app cost-effective in nature and thereby increasing the
customer base as well. The efficiency related to the delivery of food is also increased with the
help of the new technologies implemented by Deliveroo (Fedorko et al., 2015). The
organization has huge base of delivery staff who are efficient in their work process and they

5MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
help in gaining more customers as well. The promotional activities of the organization are
also conducted with the help of the website and the social media page of the organization.
Figure 1: GDP Growth of Australia
(Source: Borochin, Ghosh & Huang, 2016)
From the graph, it can be explained that he GDP of Australia has been increasing
from the year 2006 to 2008 and from 2008, the GDP has decreased due to global recession.
The GDP has again grown from 2010 to 2013 and then it has fallen from 2014. The Gross
domestic product helps in the entire growth of the economy as a whole and this will help the
different marketing firms to contribute towards the success of it. When the rate of GDP is
higher in nature, it can be seen that the firms will have the ultimate power to pay the workers
higher wages and salaries. This will help in leading to spending of the consumers on different
kind of goods and services.

6MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Figure 2: Demographic data of Australia
(Source: Abs.gov.au, 2018)
From the graph, the population of Australia has grown from the year 2000 to 2010.
This has increased business opportunities for Deliveroo. The demand for food delivery from
different restaurants has increased with the increase in population in the area. From the graph,
it can be seen along with analyzed that the due to the growth in the demographic rate, the
population of Australia has grown to a huge extent. It can be seen that in the month of
September 2010, the growth of the population has increased to the peak and this has
increased the importance of the food delivery system of Deliveroo.
Market analysis of Deliveroo
Target market of Deliveroo
The target market of Deliveroo are the tech-savvy people of Australia who are not
interested to visit the restaurants, the corporate office workers and the restaurants which do
not have delivery services. Deliveroo also offers its services with the help of their app which

7MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
is available on both the platforms of operating systems. The organization has tie-ups with
more than 200 restaurants in Australia and appoints around 800 employees. 6500 riders are
also appointed by the company for delivery of food to the customers (Gardner et al., 2016).
Deliveroo earns money by charging commissions from the restaurants and they also charge
delivery fees to the customers.
Analysing the three major competitors of Deliveroo
The three main competitors of Deliveroo are Foodora, UberEATs and Menulog.
Foodora – Foodora is another organization related to internet-based food delivery
services that has its origins in Berlin and they deliver meals from more than 9000 restaurants
in about 10 countries of the world. The customers use the app or the website of the
organization or the corporate platform so that they can search through the various restaurants
and place their orders accordingly. The orders that are placed through the app can also be
tracked easily so that the customers can keep a check on the delivery of food
(Grünig&Morschett, 2017). The organization has its operations in countries like, Australia,
Austria, Finland, Canada, Italy, Germany, France, Norway, Sweden and Netherlands. The
operations related to Foodora are mainly based on B2B and B2C platforms. Foodora has got
the first in the food delivery market of Australia and this is a result of the alignment of the
values of the business with the operations.
Menulog – The second major competitor of Deliveroo is Menulog which is around 10
years old and the orders were placed online and then they were further sent to the restaurants
via fax. The app of Menulog covers a wide area all across the country and this has led to the
position that is acquired by the organization in the market. Menulog has also shown huge
growth in the vegetarian as well as healthier options (Hajli et al., 2014). This has helped the
organization in increasing their customer base. Menulog has been providing huge competition

8MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
to Deliveroo. The trust that has been placed by the customers on the organization is another
major advantage that is enjoyed by Menulog. However, the customer reviews of Menulog has
also shown many issues or problems related to the operations of the organization.
UberEATs – This organization is based in America and operates in the field of online
food delivery. The headquarters of Uber eats is located in San Francisco, California and this
has been launched as a part of Uber technologies which is an online cab service organization.
The company was founded in the year 2014 and started their operations in Australia in the
year 2015. UberEATs has collaborated with many restaurants in Australia and they use their
cab services to provide food to the customers who have ordered the items online (Hopkins,
2017). The customers need to pay delivery fees for the food that is delivered to them. The
local chefs of the area offer special food items on the app as well. UberEATs is new to the
food delivery business in Australia, however they still provide competition to Deliveroo.
The analysis of the major competitors of Deliveroo has depicted that the organization
has to face huge competition in the market and this can lead to loss of revenues. The
availability of many options in the market for the consumers is a threat for Deliveroo (Ishii,
Kawahata&Goto, 2017).
Perceived values of the customers of Deliveroo
Value propositions of Deliveroo
Deliveroo mainly the value propositions which include, accessibility, price,
convenience, status or brand and risk reduction. The organization aims to create accessibility
to help the consumers so that they receive the delivery of the food from the restaurants from
where they desire. They provide the food to the consumers from premium restaurants as well
and this helps in increasing the access between the restaurants and the customers. The
organization tries to reduce the risks related to the packaging of food by maintaining the

9MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
temperature of the food items. The delivery person also waits for around 10 minutes before
leaving the destination if the customer is present (Iyer& Church, 2018). The organization has
been able to build an influential brand name because of the success of the business. Deliveroo
enjoys a huge customer base and more than 80% of these people are loyal to the organization
and many customers also repeat their orders in the app. Deliveroo has been growing at the
rate of 20 to 25% per month in the year 2016. The organization currently operates in more
than 65 cities all around Europe and Asia and many partner restaurants and they also have
plans to expand their operations in the United States (Jha&Jha, 2015). Deliveroo has many
high-profile partner restaurants which include, Pizza Express, Burger Kitchen, Prezzo,
Tommi’s Burger Joint, DirtyBurger, Ping Pong, Banana Tree. The services of Deliveroo have
received coverage from many of the prominent publications and magazines as well,
including, TechCrunch, Bloomberg, Forbes.
Value position of Deliveroo
The major competitors of Deliveroo in the Australian market are, Menuilog, Foodora,
Delivery Hero and UberEats. Deliveroo mainly holds the third position in the food market
after Menulog and Delivery Hero.
The value proposition of Deliveroo can be analysed with the help of the Marketing
mix using the 4 Ps of marketing, which include, product, price, promotion and place.
Product – The services or the products that are offered by Deliveroo are aligned with
the value propositions of the organization. Deliveroo aims to provide variety of services to
the customers according to their needs and demands. The quality of the services is rated quite
high by the customers as they have a loyal customer base and the customers tend to repeat the
orders. The website is designed in such a way so that the customers can easily place the
orders and get the delivery according to their wishes (Kannisto, 2016).

10MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Price – Deliveroo mainly charges the commission from the restaurants who are their
partners. The organization also charges delivery fees from the customers for providing them
with the food. Deliveroo also offers discounts to the corporate customers so that they can gain
more and more orders and can build a stronger customer base.
Promotion – The promotional activities of Deliveroo are conducted with the help of
their social media page that is available on the website. The company promotes its services
and products by connecting with the customers and engaging them in the activities that are
undertaken by the organization (Key et al., 2017).
Place – The promotional channels of the organization is mainly related to the website
and the development team of their business as well. The key activities related to the
promotions of the organization are providing the services of delivery to the customers and try
to create and maintain a platform within the two major segments of customers which are,
restaurants and the consumers. The platform that is set for the interaction between these
customer segments is the mobile app or the website of the organization.
Deliveroo has been working in the food market by aligning its operations with the
values and the objectives that are set the organization. The competitors of Deliveroo are
mainly UberEATs and Menulogwhich have also been operating in the market according to
the similar values and objectives (London, Pogue &Spinuzzi, 2015). Deliveroo has been able
to get the second position in the market with respect to the total number of restaurants with
which they have collaborated their operations. All the three organizations have targeted the
suburbs of Sydney where there were around 635 restaurants operating. Menulog was able to
collaborate with 400 restaurants, Deliveroo held the second position by collaborating with
170 restaurants and UberEATs has collaborated with 104 restaurants. Some of the restaurants
were also commonly available on all the three platforms (Osterwalder et al., 2014).

11MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Deliveroo has its base in Britain and they have started their operations in Australia
only a few years ago. The branding of the organization has helped it in raising huge amounts
of money and thereby increased the valued of brand as well.
Product Life Cycle of Deliveroo
Product life cycle is an important marketing concept and it is used to describe the
various stages through which a product goes through in the cycle of its growth. The different
stages of a product life cycle include,
 Introduction – Deliveroo was introduced in Australia in the year 2015 and
this was the introduction phase of the business of the organization.
 Growth – The growth of the organization had started from the year 2015 itself
and it was able to acquire the third position in the market.
 The maturity and decline stage of the organization has not yet occurred as this
is a new business and they entered the market of Australia recently.

12MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Figure 3: Product Life Cycle
(Source: Hopkins, 2017)
BCG Matrix Analysis of Deliveroo
Dogs – Deliveroo holds the third position in the Australian food delivery market and
thus the organization has a low market share.
Cash cows – The organization has been operating in a profitable manner in the
market and this enabled it to acquire the second position in the Australian market.
Stars – Deliveroo operates in a high growth market which can help the organization
in maintain high shares in the market.

13MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Question Marks – Deliveroo has the potential to grow in the market and increase
their market share.
Figure 4: BCG Matrix
(Source: Park et al., 2016)
Market growth of Deliveroo
Customer relationship of Deliveroo
The relationship with the customers of Deliveroo are maintained with the help of a
software named Zendesk. The riders or the delivery men of the organization are taken care by
the Operations manager Jude Kriwald so that problem-free and smooth operations can be

14MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
ensured. The riders have easy access to contact the operations team of the organization which
can help them in serving the customers in better way. This opportunity is provided by
Zendesk which creates a platform the contact of the operations team and the riders so that the
delivery process can be controlled easily (Park et al., 2016).
Promotional plan
The promotional plan of an organization includes the ways by which the information
about a product is disseminated which further includes the information related to brand,
company and the product line. Promotion is an important part of the marketing mix of the
organization which helps in increasing the profitability. The promotional mix of Deliveroo is
discussed below,
Promotional mix Deliveroo
The promotional mix of the organization is comprised of the different tactics like,
advertising, public relations, sales promotion, personal selling, direct marketing and
publicity(Payne, Frow& Eggert, 2017).

15MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
Figure 5: Promotional Mix of Deliveroo
(Source: Created by author)
 The advertising of Deliveroo is done with the help of the website and the app
of the organization. Budget – 3 million Australian dollars that has been
analyzed. The different growth of revenue helps in increasing the gross profit
in the entire competitive market
 The relationship of the customers of Deliveroo can be improved with the
feedback system that is provided in the website of the organization. Budget – 1
million Australian dollars. The relationship between the customers is essential
in nature as this will help in improving the feedback system. The annual report
and statements helped in understanding the different issues faced by them in
comparison to other competitors

16MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
 Sales promotion of Deliveroo can be done with the help of the offers and
discounts that can be provided to the customers through the website. Budget –
2 million Australian dollars.
 Personal selling and direct marketing are related to each other and this process
is completed with the help of the website and the staff of the organization as
well. Budget – 4 million Australian dollars (Smith, Ofe& Sandberg, 2016).
 Publicity is done based on the development of the offerings of the
organization. Deliveroo needs to make adjustments in the delivery policies so
that they can attract more customers. Publicity can help the organization in
gaining the partnerships of more number of restaurants so that they can
increase the revenue of Deliveroo. Budget – 1 million Australian dollars.
Figure 6: Financial Statements of Deliveroo
(Source: Abs.gov.au, 2018)
From the graph, it can be analyzed that the financial requirements of the respective
company is better than the other competitors in the market. The different analysis has been
done relating to the margin of gross profit along with revenue profit in the competitive
market. The different analysis has been done in order to increase the earnings before interest

17MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
and tax. The gross profit of the financial year 2016 have earned huge amount of profit and
this helped them in increasing their importance in the entire competitive market. The
advertising and public selling is essential in nature that has incurred a budget of more than
few billion and this increased their reputation in the entire market.
Lastly, there has been huge increase in the gross along with net profit of the company
in such a manner that this helped the company in solving their different issues in comparison
to other companies.
Figure 6: Sales data of Deliveroo
(Source: Abs.gov.au, 2018)
Deliveroo has held the third position in the Australian food market after Uber and
Delivery Hero. This is due to the new entry that has been made by the organization in the
Australian market. From the graph, it can be analyzed that the sales data that has been
generated is wherein it can be seen that Deliveroo has funding of around 431 billion. The
funding is essential in the different kind of businesses as this helps in making the business

18MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
stable in nature. The delivery system is essential in nature that helps in understanding about
the position of the company in the competitive market and understands the performance of
the company in the market as well. The total funding is essential in nature as this helps in
solving the different queries faced by them and analyze strategies that will help them in
gaining competitive advantage.
Lastly, the Deliveroo food delivery system needs to be implement strategies that will
help in understanding the issues that are faced by them. The marketing analysis is required to
be performed by the company in order to understand the issues and solve them with proper
strategies.
Increase in digital communication
The digital communication of Deliveroo needs to be increased with the help of social
media pages in the website of the organization Digital marketing can be defined as the
interaction between the consumers and the organization. The increase in interaction between
the consumers, the restaurants and the organization is facilitated with the help of digital
marketing (Urde& Koch, 2014). The respective company named Deliveroo food Delivery
Company as this can use the entire digital marketing technique, as this will help in making
their business more profitable in nature. Deliveroo Food Delivery Company needs to
ascertain the different social media networking sites as this will help in solving the interaction
between the marketing techniques that is used by other companies in the same field.
This is essential in nature for the company to use social media networks and through
public relations. The social media marketing is helpful in making the customers aware about
the different marketing activities performed by them. This search engine optimization will
provide the different individuals of the society to understand the ratings through different
networking sites and they can decide wherein they will help in solving their queries.

19MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
It can be explained that the digital marketing techniques will help the company in
increasing their sales and production in the entire competitive market. The different
promotional strategies can be adopted by the respective company in such a manner that this
will help in solving the different queries.
Conclusion
The report can be concluded by saying that the online food delivery service of
Deliveroo can be improved with the help of investment made on the promotions of the
organization. Deliveroo has risen to the second position in the food delivery business in
Australia. The organization further needs to improve its promotions and relationships with
the customers so that they can reach the topmost position in the market.

20MARKETING ANALYSIS OF DELIVEROO FOOD SERVICE
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