Delivery Hero Marketing Strategy Analysis

This assignment focuses on analyzing the marketing strategy employed by Delivery Hero, a prominent online food delivery service. It requires an in-depth examination of their promotional mix, encompassing elements like advertising, personal selling, sales promotions, and public relations. The analysis should also consider Delivery Hero's utilization of digital marketing strategies, including social media, mobile applications, and website optimization. By evaluating these components, the assignment aims to provide a comprehensive understanding of how Delivery Hero effectively reaches its target market and maintains its competitive advantage in the food delivery industry.

Running Head: MARKETING AND DIGITAL COMMUNICATIONS 1
Marketing and Digital Communications:
Delivery Hero

MARKETING AND DIGITAL COMMUNICATIONS 2
Executive Summary
Marketing and promotional plan of the company is an important component of marketing plan
and its marketing strategies. This plan of the company includes all of its objectives, when it is
about its target market, promotion and pricing. The plan is prepared using different advertising
and promotional techniques, which are used by Delivery Hero. Delivery Hero is a food ordering
system that is based in Germany and operating its business in more than 40 countries. The major
objective of this report is to prepare the promotional plan, value analysis and to analyze the
objectives different promotional mix elements. The company is adopting different techniques,
like; advertising, personal selling, sales promotion, direct marketing etc. It is performing its
business activities very well and gaining competitive advantage over its competitors in the online
food ordering industry.
Table of Contents

MARKETING AND DIGITAL COMMUNICATIONS 3
Introduction......................................................................................................................................4
Background......................................................................................................................................4
Aim...............................................................................................................................................4
Company Description..................................................................................................................4
Target Market...............................................................................................................................5
Value and Position Compared to Competitors.............................................................................5
Justification for Proposing Better Value......................................................................................5
Research Methods............................................................................................................................5
Current Value Analysis....................................................................................................................7
Customer Perceived Value...........................................................................................................7
Competitor’s Value Analysis.......................................................................................................7
Current Value Position of Delivery Hero....................................................................................8
Functional Value..............................................................................................................................9
Marketing Promotional Plan............................................................................................................9
Objectives of Marketing Promotional Mix Elements................................................................10
Advertising and its objectives................................................................................................10
Sales Promotion and its objectives.........................................................................................11
Direct Marketing and its objectives........................................................................................12
Personal Selling......................................................................................................................12
Digital Communication Budget.................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

MARKETING AND DIGITAL COMMUNICATIONS 4
Introduction
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.
Background
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.

MARKETING AND DIGITAL COMMUNICATIONS 5
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

MARKETING AND DIGITAL COMMUNICATIONS 6
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).
Research Methods
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).

MARKETING AND DIGITAL COMMUNICATIONS 7
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).
Current Value Analysis
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

MARKETING AND DIGITAL COMMUNICATIONS 8
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).

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Current Value Position of Delivery Hero
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.
Value
Analysis
Emotional
Value
Economic
Value
End Value
Functional
Value
Symbolic
Value

MARKETING AND DIGITAL COMMUNICATIONS 10
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).
Marketing Promotional Plan
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;
Objectives of Marketing Promotional Mix Elements
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;
Advertising and its objectives
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

MARKETING AND DIGITAL COMMUNICATIONS 11
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
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).
Traditional Media
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).
Print Media
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

MARKETING AND DIGITAL COMMUNICATIONS 12
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 and its objectives
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 and its objectives
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.
Personal Selling
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.

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Digital Communication Budget
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.

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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.

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