Analysis of Uber Eats Marketing Plan in the US Market

This report provides an analysis of the marketing plan of Uber Eats in the US market, including internal and external environmental analysis, budget preparation, and marketing strategies. It also discusses market segmentation, targeting, and positioning.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on analysis of the marketing plan of Uber Eats in the entire
market of the United States of America along with analysis of the global expansion.
Moreover, the different kinds of internal and external environmental analysis have been
conducted which have been able to improve the respective business operations in a successful
manner. The budget has been prepared for the first year which provided with the different
details of the salaries along with the promotional aspects that plays a vital role in improving
the business-related operations.

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Table of Contents
Introduction and Overview of Company....................................................................................3
Situation Analysis......................................................................................................................3
PESTEL Analysis...................................................................................................................3
Competitive Analysis.............................................................................................................5
Internal Environment.............................................................................................................7
SWOT Analysis.....................................................................................................................8
Marketing Research...................................................................................................................9
Marketing Goals and Objectives................................................................................................9
Marketing Strategies................................................................................................................10
Market Segmentation Targeting and Positioning.....................................................................10
Marketing Mix Strategies.........................................................................................................11
Implementation........................................................................................................................11
Action Plan...........................................................................................................................11
First Year Budget.................................................................................................................12
Marketing Control and Metrics................................................................................................13
Contingency Planning..............................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction and Overview of Company
The report throws light on the overall analysis of the marketing plan of Uber Eats
food delivery application in the market of The United States of America. The marketing plan
is the report which helps in outlining the marketing strategy wherein the overview of the
marketing and advertising goals of the company will be discussed in an appropriate manner.
Uber Eats is one of the American online food ordering along with delivery platform which
was launched in the year 2014 and it is based in San Francisco, California (Ubereats.com,
2019). The founders of the company were Travis Kalanick as well as Garrett Camp and in the
year 2015, the ordering software was able to release as their own application, separate from
their respective app for Uber Rides. In the year 2018, in the month of August, Uber Eats
charged flat $4.99 delivery fee rate to the varying fee as per the distances which are covered
by them.
Situation Analysis
With the help of situation analysis, it refers to the collection of the different methods
which can be used by the managers to analyze the internal as well as external environment of
the organization which will provide a better understanding on capabilities, customers along
with business environment of the respective company.
PESTEL Analysis
Political Factors- The Uber Eats operates in the different countries wherein they are
required to make policies as per the industry specific requirements of each and every country.
There can be different changes in the government related policies in the United States of
America in the next election, therefore Uber Eats needs to prepare and operate eventually as
it will be leading to the change in the different governance priorities of the respective service

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sector (Zhang & Yeung, 2016). Moreover, in order to expand the business operations in the
different parts of the world, it is necessary for Uber Eats to keep an open eye on the industry
wide priorities related to government which will be helpful in predicting the trends in an
appropriate manner.
Economic Factors- The different interventions of the government in the service
sector along with in the restaurant industry can affect fortunes of Uber Eats in the United
States market. There is huge and proper availability of core infrastructure which has helped in
improving the business environment (Siguaw & Simpson, 2015). Uber Eats can access the
present infrastructure which will be helpful in driving growth in the United States market.
The level of skills of the workforce of the human resources in the United States market is
moderate in nature and Uber Eats can leverage it to improve the services and skilled
workforce which will be helpful in creating global opportunities.
Social Factors- The level of education in the United States market is effective and
Uber Eats can try to leverage their operations and presence in the United States market which
will be beneficial for the overall growth of the company. In order to enhance the experience
among the customers, Uber Eats can introduce different experiential products rather than the
value proposition which is traditional in nature (Pride & Ferrell, 2016). However, there is
huge rate of migration in US market which can create negative impact on Uber Eats as it will
lead to loss of sales and profitability. In order to manage their operations, it is required for
Uber Eats to understand the societal norms which will be beneficial ion improving the
scenario (Paley, 2017).
Technological Factors- Uber Eats needs to restructure the supply chain activities of
their company which will be bring more flexibility to meet the needs of the customers along
with cost structures. Moreover, Uber Eats need to be innovative in their approaches of

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satisfying the requirements of the customers and it will enhance the experience of the
customers in the market in the restaurant industry (Paley, 2017). However, the technological
advancements have shortened the PLC and it has helped in enabling the suppliers in quickly
developing the different products in the market. It can create huge pressure on Uber Eats to
keep suppliers happy through promotion of diverse range of products as well as services
(Kotler et al., 2017).
Legal Factors- There is inclusion of the different kinds of legal rules and regulations
which are required to be followed by Uber Eats which will make the business of the company
better in the international market. Moreover, Uber Eats need to follow the environmental
rules as well as regulations which will be beneficial in improve the overall efficiency in an
effective manner. The data protection laws are the other aspect in managing the privacy
aspects and Uber Eats needs to have robust mechanism to protect themselves from the
different breaches of data (Jarach, 2017).
Environmental Factors- The extreme conditions of the weather are adding to the
extra costs of operations for Uber Eats which will make the supply chain flexible. The
renewable technology is the other aspect wherein Uber Eats can leverage such trends in the
sector which will be beneficial for the overall growth of Uber Eats in the different markets in
the rest of the world (Guo et al., 2018).
Competitive Analysis
Threat of New Entrants
The economies of scale in which Uber Eats is operating is difficult and the production
costs of entering in the market is costly for the new entrants. The different policies of
government within the entire industry require strict kind of licencing as well as legal

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requirements before the organization can start selling products (Guo et al., 2018). The
differentiation of product is strong in the respective industry and it can be difficulty for the
different companies to copy the different aspects of the existing firms. Uber Eats can take
advantage of economies of scale which will be fighting off new entrants (Ferreira, 2017).
Bargaining Power of Suppliers
The number of different suppliers in the market is more in comparison to buyers and
it indicates that suppliers have less power over prices and it makes bargaining power of
suppliers a weak force. The different suppliers don not contend with the products and it
means there are a smaller number of substitutes for respective product other than the ones
wherein suppliers provide (Deshpande et al., 2017). It makes the bargaining power of
suppliers’ weaker force. In order to improve the scenario, Uber Eats can purchase the raw
materials from suppliers at low cost.
Bargaining Power of Buyers
The differentiation of product is one of the major aspects and is high in the respective
industry wherein the different buyers are not able to find the other alternatives producing
particular product. The income of the customers within the respective industry is low and it
means there is huge pressure to purchase the products at low price and making buyers more
sensitive. In order to improve the threat, Uber Eats need to focus on differentiation as well as
innovation to attract more buyers (De Pelsmacker, Van Tilburg & Holthof, 2018).
Threats of Substitute Products
There are very less substitutes available in the market wherein Uber Eats operates
which means there is no ceiling on maximum profit of the firms wherein they can earn in the
respective industry in which Uber Eats operates. The very less substitutes which are available

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in market are expensive and provide high quality products. In order to improve the scenario,
Uber Eats needs to focus on providing high quality products to the customers (De
Pelsmacker, Van Tilburg & Holthof, 2016).
Rivalry Among Existing Competitors
The number of competitors present in the market are few in which Uber Eats operates
and most of them are large in size. Moreover, the products and services which are offered by
Uber Eats are differentiated which makes them more effective and it helps them in managing
operations in a successful manner (da Silva & Las Casas, 2017).
Internal Environment
Structure of Uber Eats
Uber Eats is one of the food delivery applications in the market which has started
their operations from 2014 and there are few major competitors in the US market such as
Grub Hub and Uber Eats is a part of Uber driving application and the founders of the
company are Travis Kalanick as well as Garrett Camp and there are more than 2000
passionate employees working with Uber Eats and they have their presence in few countries
and in order to expand the business operations in the other countries, the company needs to
analyze the different kinds of the other countries as to gain competitive advantage (Chernev,
2015).
Culture of Uber Eats
There are various opportunities for Uber Eats to serve the different customers in more
positive manner as the culture which is followed at Uber Eats is effective and it influences the
employees to perform the different activities and there is system of rewards which is included
as it will be beneficial for motivating the employees (Baverstock, 2015).

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Resources of Uber Eats
The respective company mainly hails on the different social media as well as word of
mouth marketing that will be helpful for them in targeting customers in the market.
Moreover, there is inclusion of sales promotion and events which helps in adding value to the
different services provide to the customers. Moreover, the high level of the services provided
to the different customers is the other core advantage of the company (Ambat et al., 2017).
SWOT Analysis
External/Internal Strengths
Human Resource are the
integral part of the company
wherein there is inclusion of
development of skills
(Ambat et al., 2017)
First Mover Advantage is
increasing Uber Eats market
share
The diverse revenue model
is the other aspect which
helps them in improving the
overall efficiency (Ambat et
al., 2017)
Weaknesses
The business model can
be easily imitated by the
competitors
The high employee
turnover is the other
weakness which affects
growth of firm
There is less of loyalty
among suppliers that
affects their growth
Opportunities S/O Based Strategies W/O Based Strategies

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There are different
opportunities in the online
space through increasing
offerings for customers
The preferences of customers
are changing fast and Uber
Eats needs to manage the
different trends to improve
their effectiveness
Leveraging the recognition of
brand in the different other
segments
Investing in the
relationships with
customer-oriented
products as well as
services
Threats
The competitive pressure is the
threat which can affect growth
of the company
There is increase in negligence
in the potential competitors
S/T Based Strategies
Investing in the research and
development to thwart the
disruptors of service industry
W/T Based Strategies
Exit from the business
and focus on growth
areas
Marketing Research
In order to analyze the different places wherein Uber Eats needs to expand their
business operations, the company needs to conduct both primary and secondary data which
will be beneficial for improving their overall presence. From the different sources, the
findings are:
 There is increased demand of food delivery services in many areas especially from the
office going individuals

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 Both the young individuals and the office goers prefer the efficient food delivery
system to meet their demands
Marketing Goals and Objectives
Goal
The main goal is to provide the different customers with the different food items from
different restaurants within the stipulated time frame and enhance their experience.
Objectives
 To provide efficient and reliant serviced to the customers
 To avoid the delivery charges from the premium customers
Marketing Strategies
The major marketing strategy which will be adopted by Uber Eats is to increase the
loyalty among customers and increase the sales of the company in the different locations
wherein there is no presence of the company. The expansion of their operations will be one of
the most essential aspects which will improve the business operations successfully.
Market Segmentation Targeting and Positioning
Segmentation
 The main customer segments include the young population along with working
professionals who are looking for the different information of the restaurants and want
delivery at their door step (Baverstock, 2015)
Targeting

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 The different individuals who have the smartphones and who prefer to try the
different cuisines sitting at a place as it is one of the most convenient options for them
(Baverstock, 2015)
Positioning
 Uber Eats will be positioning themselves as guide to discover the experience of the
restaurants and the food guide which will be improve the experience of customers
Marketing Mix Strategies
Implementation
In order to successfully launch their resources in the competitive business
environment, the action plan can be followed which will be helpful for them in increasing the
market share by 5%.
Providing customers with search information on restaurants
Inclusion of helping the customers in securing the different details in a safe manner
Product
There is no such charge taken by the them from restaurants for putting up information of
restaurants
There will be inclusion of special offers which will be beneficial in imrpoving their presence
Price
Online search website which can be accessed by users in all over the worl whrrein they are present
Place
There will be inclusion of different offerings for the customers such as discount on purchase of
certain amounts
Promotion

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Action Plan
Actions Date Duration Cost Responsibility
Print Media
Advertisement
January 12th 3 months $120000 Marketing
manager
Social Media
Marketing
Campaign
February 10th 2 months $150000 Marketing and
CEO of the
company
Content
Marketing
March 15th 3 months $240000 Marketing
Manager
Campaigning April 15th 2 months $250000 CEO
Sponsorships
from clients
April 30th 2 months $150000 Marketing
Officials
First Year Budget
Particulars Amount Amount ($)
Revenues 4500*$1400 6300000
Salaries and Wages
provided to the employees
5500
Promotional Events and
Campaigns
1600

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Operating Income (6292900)
Revenues Salaries and Wages
provided to the
employees
Promotional Events
and Campaigns Operating Income
0
6300000
5500 1600
-6292900
BUDGET
Amount Amount ($)
Figure 1: Budget of Uber Eats
(Source: Created by author)
Marketing Control and Metrics
From the first-year budget, it can be analyzed that Uber Eats needs to evaluate their
marketing efforts which will be helpful in ensuring that the company is in track and it will
improve the business operations successfully.
Objective 1: To enhance the loyalty among customers and expand their business operations
all over the world
Objective 2: Achieving more than 10% of sales in the next five years
Contingency Planning
Uber Eats needs to accurately invest proper amount of capital investment which will
be helpful in improving the business in the future. Furthermore, if the customers of Uber Eats

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does not support the plan of Uber Eats, in such scenario the company needs to fit with the
respective demands of the customers which will be beneficial in improving the scenario
effectively.
Conclusion
Therefore, from the above it can be concluded that marketing plan of Uber Eats will
be proved to be beneficial in managing the different business operations in a successful
manner. Moreover, with the help of first year budget planning, it can be identified that
budgeting is one of the most essential techniques that is required to be achieved and improve
their business operations successfully.

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References
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online reviews and hotel performance. International Journal of Hospitality
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tourism.
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