Consumer Behavior and Digital Marketing Report for Uber Eats

This report examines the evolving consumer behavior within the digital marketing context, specifically focusing on Uber Eats. It identifies the increasing demand for electronic fast food delivery and the rise in consumer switching behavior among brands as a significant change. The report analyzes the external environmental factors driving this change, including technological developments, increased competition, and the bargaining power of both customers and suppliers. It then evaluates the impact of these changes on Uber Eats' current marketing activities, highlighting the stickiness of online platforms, the prevalence of home food orders, increased weekend demand, and the shift in placing strategy. Finally, the report recommends strategies for Uber Eats to adapt to these changes, including optimizing delivery times, service innovation, strengthening relationships with restaurants, developing a user-friendly mobile application, and focusing on personalization, offering a recommended marketing mix to enhance their strategy.

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
DIGITAL MARKETING
[Type the document subtitle]
7/10/2019
Student name

DIGITAL MARKETING 1
Contents
Introduction......................................................................................................................................2
Analysis of the change.....................................................................................................................3
Identification of change...............................................................................................................3
The key external environmental factors driving the changing behavior.....................................4
Technological development.....................................................................................................4
Increase in competition............................................................................................................4
Bargaining power of customers...............................................................................................5
Bargaining power of suppliers.................................................................................................5
Evaluation of the impact..................................................................................................................6
Online platforms are sticky......................................................................................................6
Food ordered for home............................................................................................................6
Increased demand on weekends...............................................................................................7
Placing strategy........................................................................................................................7
Recommendations............................................................................................................................8
Time for delivery.....................................................................................................................8
Service innovation...................................................................................................................9
Increase relationship with number of restaurants....................................................................9
User-friendly and innovative mobile application..................................................................10
Focus over personalization....................................................................................................10
Recommended Marketing mix..............................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

DIGITAL MARKETING 2
Introduction
Digitalization has not only affected the retailing business, but has also influence various
industries like food industry. The digital marketing will focus over selling and trading, and
promotion of the brand and products through online mode. Digital marketing includes use of
technology by the companies to reach out to maximum customer at a time. The report purpose is
to assess the changing consumer behavior for an organization case to be identified, assessed and
its impact over the business marketing strategy (Adam & Kotler, 2014).
Uber eats is an American fast food delivery brand that has been working in various nations for
now. It can be said that initially the services included in the fast food industry includes drive
through and pick up service or the home delivery by the restaurants. Fast food delivery
applications like Uber eats and food panda has changed the scenario of the industry and so do
the change in consumer expectations and behaviors (Tuten & Ashley, 2015). It has provided the
single platform to search for any food item at any restaurant that will be deliver by them through
this innovative process or system. The report will discuss one significant change observed in
consumer behavior considering the digital context, for which the appropriate recommendations
to the company (ubereats, 2019).

DIGITAL MARKETING 3
Analysis of the change
Identification of change
Technology has changed the behavior of humans and so do the change has been observed in the
behavior of the customers for Uber eats. One of the significant changes identified is Increasing
demand for electronic fast food delivery and increase in switching behavior of consumers among
the brands in this industry. It can be said that the two major criteria that the customers judge
include prices and promotional discounts offered by the company and service quality of the
company (Pappas, 2016). The major change has been observed in the Asian market as the change
in this industry was recently implemented and by now various companies has entered into the
market and has increased the competition in the industry. This has influence the habits of the
customer to use deliver Company to order food and avail services. The key reason for such
changed behavior is saving expenses like visiting the restaurant and having the product, the
convenient way of having food on time, save time by having food at door. However along with
the demand, the options for the customers has also increased and buyers are becoming more
rational and smart and switch to the food delivery company according to every day promotions
and services available to them, which shows increase in switching among the brands (Ottman,
2017).
New delivery players have been entered into the food delivery industry in 2013 which allowed
them to scan, compare the menus, prices of the food products and can also review the post from
various restaurants and food chains through mobile application or a single mouse click on laptop.

DIGITAL MARKETING 4
Introduction of the new delivery players that have created specific majestic networks and
distribution networks that are unique in nature and let them reduce the expenses and increase the
opportunity to gain large profit margin (Reid, 2015). This has led to rational decision-making by
the customers while comparing the prices at various websites and mobile applications like Uber
eats, Food Panda and other similar companies offering online food delivery. This has increased
the switching frequency of the customers from one branch to another that is at whatever
application they find that the same product is been provided in lesser amount and with better
service they immediately switch to that band.
The key external environmental factors driving the changing behavior
The external environment of the organization includes various factors that has driven and
impacted this change
Technological development
Since years the retail and fashion industry has largely be dependent on the technology, online
shopping trend have increased the use of e-commerce activities. This has also impacted other
industries like food industries for which e-commerce food delivery was one of the unique way to
reach out to cast tomorrow and make baby food delivery more convenient. Be happy to use
technology for every other thing has been become part of the nice side of the customers, which
has led to such an increase in demand. The technology has been developed in most of the nations
and the adoption level of technology has also been increased (Ryan, 2016).
Increase in competition
There have been various competitors and new entrants, which have entered into this industry
with more innovative ideas and more cost saving ideas, which may have led to price cut

DIGITAL MARKETING 5
competition with Uber eats. This is the major external environmental factor which has impacted
this industry to greater extent and has led to increase the behavioral patterns of customers to
switch from one branch to another frequently. This reflects that the customer retention in this
industry is very difficult and the company requires continuous innovation and lower price
strategies (restaurantdive, 2019).
Bargaining power of customers
Due to increase in competition, The buying power has gone largely in hands of the customer as
the companies are trying to be more customer centric and understand the needs and expectations
of the customer in order to provide best quality Services and sustain in the market. This has
impacted largely over the increased demand by the customer and also demanding lower prices to
be offered like some promotional discounts on food deliveries (Russell, J.D & Hull, 2017)
(Petersen, 2015)
Bargaining power of suppliers
In the food delivery industry the key suppliers Are the food restaurant and fast Food centers from
Uber eats collect the food and deliver to the customers. The suppliers are playing the major role,
as they are the deciding parties in the contract as the prices of the food set by the restaurant are
the key aspects that the Uber eats is offering. This has impacted the business, the suppliers that is
the restaurants have also enhance their business due to food delivery services as the centers
which were not previously recognizable are able to do business without having clients physically
(Rialp & Rialp, 2007). Due to their own business advantage, almost every fast Food Centre and
restaurant have contracted with food delivery companies, this has also reduced their home
delivery services work and has increase the brand recognition. Does this has also increase the

DIGITAL MARKETING 6
competition in the market of food delivery and has increase the chances for customer to switch
from one company to another to have food from a particular restaurant (Safari et al., 2016).
Evaluation of the impact
The above identified change in consumer behavior in fast food delivery industry has impacted
Uber eats current marketing activities and has also influenced the customer retention
Online platforms are sticky
The new delivery platforms have provided the personalize ordering experience by the customers
this has impacted the customer data analysis most strongly by the company that is the needs of
the customer and the taste and preference of the customers are easily identified by the company
which has resulted into personalized marketing activities by the company. The product strategy
of UberEATS includes product differentiation and lower cost strategy. This has been impacted
by the higher effect of the changing behavior of the customer as the customer are looking for the
product variety and personalized products so much. For this the company has also include the
Promotional strategy while using mobile commerce as the key tool that is the push notifications
to the customer in order to provide the promotional discount on the products that they would be
interested in by analyzing their previous orders (Zhang, 2015).
Food ordered for home
It has been identified that more sthan 80% of the orders at Uber eats were ordered for home
places and only 16 to 18% food delivery orders were placed to a workplace. This has impacted
the target market for Uber eats and reflect acquiring new customer segment by the company,
which may include woman, housewives, working Women considering the gender as the basis
under demographic factors. This statistics also impacted the marketing strategy of UberEATS

DIGITAL MARKETING 7
that is to include promotional combos of foods at home deliveries that will be beneficial when a
family gathering is the major occasion and large food ordering has been done. This will also
increase the sales of the company and will also increase the customer loyalty due to timely
availability of the food at the time of special occasions (Yen, 2017).
Increased demand on weekends
It has been observed from the research that the demand on weekends is much higher for the food
delivery companies then the rest of the week. It has been identified that 74% of the orders of the
food delivery industry are pleased on Saturday, Sunday and Friday. This has affected the
marketing strategy and placing strategy of the company to large extent, UberEATS can increase
the Promotional offers for weekdays is separated from those from the weekend special offers.
This will increase the opportunity for the companies to offer food on lower price on weekdays in
order to increase the demand by the customers on weekdays as well. However, the customer
expectation and needs are higher on the weekends, which reflect that the company also needs to
provide special discount offer on weekends as if family special combo offers to promote the
family time for the teenagers and enhance the brand goodwill through this marketing strategy
(Tiago, 2014).
Placing strategy
The placing strategy of the food delivery industry has completely changed that is from the pick-
up and drive through placing strategy for the companies to provide food deliveries, that online
food delivery is has taken over the market and ordering patterns by the customers. This has
impacted the exponential growth experience by Uber eats. It has been observed that 77% of
diners are into the food delivery ordering transaction from the third-party delivery service or
from the restaurant, which has also increased the opportunity for Uber eats to use technology and

DIGITAL MARKETING 8
act as a third-party delivery service company to offer food from their favorite restaurant at home
without any additional charges (mckinsey, 2019). Who provided the major control over the third-
party delivery organizations like UberEATS in order to capitalize on the identified change
consumer behavior. The company has adopted delivery applications that are mobile commerce
for the playthings strategy due to the changing trends in consumer behavior (Thomson, 2016).
Recommendations
Time for delivery
It has been observed that the major reason the customer is going out for the third-party delivery
companies that is Uber eats, is there busy schedule an increase workload for which they are
looking out for the quick food delivery options and convenience to have food At any time of the
day. The Uber eats have change the consumer behavior most specifically the open area
consumers so as to include the food delivery by the third-party service company on a routine.
There are various other reasons for ordering through Uber eats that is to avoid the problems
related to travelling, parking issues in the urban areas, and most importantly the time consumed
to have food while present physically at the restaurant (Schlegelmilch, 2016). Therefore it is
recommended to Google needs to reduce the timespan to reach out to the customer to minimum
in order to retain the customer as most of the customer are looking for the quickest delivery
options and that time they might not think of the price of the product to a major extent. Therefore
it can be said that creating the brand positioning of the company two words the quickest delivery
option will be better marketing strategy for the company in order to sustain in the industry and
retail customer (Schlegelmilch, 2016).

DIGITAL MARKETING 9
Service innovation
Food delivery companies are providing services to the customer for their convenience and
understanding the customer needs, this reflects that the customers are looking for the
extraordinary services by the companies when it comes to delivery of food from the selected
restaurant or fast food centers. It is recommended to the company to repeatedly enhance the
service quality in order to retain the customer as the major problem identified is quick switching
rate by customer from one branch to another. Innovation through services may include
availability of service at various locations that is having food while travelling. The parent
company that is Uber has been serving travelling facilities to the customer which may be
integrated with the ovaries and provide food delivery from their restaurant while travelling
(Sharma & Gautam, 2017). The reason for this recommendation as the key service innovation
will be because of the increased busy schedule of working men and woman who may prefer to
have breakfast or lunch In way to offices or workplace.
Increase relationship with number of restaurants
The key success factors for the third-party delivery service company that is Uber eats our
relationship with the product providers that is the restaurants and fast food centers. The
customers are looking for the delivery service companies that have large number of varieties as
the food options and service from Maximum number of restaurants that they are looking for.
Therefore it has been recommended to the company to increase the relationship and also enhance
the relationship with new restaurants and with existing restaurants that Uber eats are dealing with
(Skudiene et al., 2015).

DIGITAL MARKETING 10
User-friendly and innovative mobile application
Since it has been observed that technology has major impact over the business, it is important to
have innovative technology that will be reflected through the designing of the application of
UberEATS. In order to provide convenience it is important for the company to make the website
more user-friendly and easy to use by the customers this reflects that the process of ordering and
tracking the order must not be complex. The key reason for this recommendation is the fact that
the customer will only check out the application if they are finding the application helpful
attractive and user-friendly (Song, 2017).
Focus over personalization
It has been recommended to Uber eats to focus over the personalized marketing strategy. this
may include personalize an automated advertising through push notification, social media
platforms in order to attract and induce customer to order food from Uber eats. This can also be
done through customer feedback that is to take feedback from the customer for every action
taken by the company that is the delivery provided, the delivery agent provided the delivery was
helpful and so at the best level, recommendation to enhance the taste or packaging for Pattern.
This also helped companies and restaurant to understand customer needs more clearly, work to
words the gaps that is the need is identified, and he provided services and products by the
restaurants and delivery agents of UberEATS (restaurantdive, 2019).
Recommended Marketing mix
The recommended alterations to the marketing mix strategies of UberEATS include cost
leadership strategy and product innovation strategy. It has already been discussed that the price is
the most important factor in food delivery services by Uber eats as the customer can easily
compare the prices of food by different brands and can switch to another brand which is the

DIGITAL MARKETING 11
major reason for inability for the company to retain the customer. In order to retain the customer
it is recommended the company to have the cost leadership strategy that is to minimize the cost
by increasing the economies of scale and another way to retain the customer is to provide
extraordinary services which has already been discussed in previous point, reflecting the product
innovation strategy of the company. The promotional strategy of the company would include
email marketing that is too awful personalizing coupons to the customer as per the order level
and order frequency. This recommended promotional strategy is to retain the most loyal
customers that the company does not wish to lose. Moreover, it is important to advertise more in
such a competitive market, the reason being the company needs to provide the information
regarding the special offers and change in service facilities by the company that could be done
through advertising like providing special offer at the time of Christmas in nations like USA,
Australia (Adam & Kotler, 2014).

DIGITAL MARKETING 12
Conclusion
From the discussion over the changing buyer behavior hand their impact over the business
included key highlighting points. Uber eats is an American fast food delivery brand that has been
working in various nations for now has changed the scenario of the industry and so do the
change in consumer expectations and behaviors. One of the significant changes identified is
Increasing demand for electronic fast food delivery and increase in switching behavior of
consumers among the brands in this industry. The major change has been observed in the Asian
market as the change in this industry was recently implemented and by now various companies
has entered into the market and has increased the competition in the industry. New delivery
players have been entered into the food delivery industry in 2013 which allowed them to scan,
compare the menus, prices of the food products and can also review the post from various
restaurants and food chains through mobile application or a single mouse click on laptop.
Rational decision-making by the customers while comparing the prices at various websites and
mobile applications like Uber eats, Food Panda and other similar companies offering online food
delivery. The external environment of the organization includes various factors that has driven
and impacted this change Technological development, Increase in competition, Bargaining
power of customers, and Bargaining power of suppliers. The identified change in consumer
behavior in fast food delivery industry has impacted Uber eats current marketing activities and
has also influenced the customer retention including Online platforms are sticky, Food ordered
for home, Increased demand on weekends, and Placing strategy. It has been identified that more
than 80% of the orders at Uber eats were ordered for home places and only 16 to 18% food
delivery orders were placed to a workplace, impacted the target market for Uber eats.

DIGITAL MARKETING 13

DIGITAL MARKETING 14
References
Adam, S. & Kotler, P., 2014. Principles of marketing. Australia: Pearson Australia.
mckinsey, 2019. the-changing-market-for-food-delivery. [Online] Available at:
https://www.mckinsey.com/industries/high-tech/our-insights/the-changing-market-for-food-
delivery.
Ottman, J., 2017. he new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. London: Routledge.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, p.92.
Petersen, J.A., 2015. Marketing communication strategies and consumer financial decision
making: The role of national culture. Journal of Marketing, 79(1), pp.44-63.
Reid, M., 2015. Integrated marketing communication capability and brand performance. Journal
of Advertising, 44(1), pp.37-46.
restaurantdive, 2019. the-future-of-food-is-digital. [Online] Available at:
https://www.restaurantdive.com/news/the-future-of-food-is-digital/543900/.
Rialp, A. & Rialp, J., 2007. International Marketing Research: Opportunities and Challenges in
the 21st Century. Emerald group publishing limited.
Russell, J.D & Hull, C.E., 2017. Abstract on Evaluating Sustainability as a Core Competency:
Consumer Response to Sustainable Products. In Academy of Marketing Science Annual
Conference, p.529.

DIGITAL MARKETING 15
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Safari, N., Safari, N. & Montazer, G.A., 2016. Customer lifetime value determination based on
RFM model. Marketing Intelligence & Planning, p.446.
Schlegelmilch, B., 2016. Global Marketing Strategy. Switzerland: Springer.
Schlegelmilch, B.B., 2016. The Future of Global Marketing Strategy. In Global Marketing
Strategy , p.221.
Sharma, V. & Gautam, V., 2017. The mediating role of customer relationship on the social
media marketing and purchase intention relationship with special reference to luxury fashion
brands. Journal of Promotion Management, pp.872-88.
Skudiene, V., Auruskeviciene, V. & Sukeviciute, L., 2015. Internationalization model revisited:
e-marketing approach. Procedia-Social and Behavioral Sciences, pp.918-24.
Song, X., 2017. Research and development of animation derivatives marketing strategies based
on the analysis of consumer demand. Journal of Interdisciplinary Mathematics, 20(5), p.1319.
Thomson, H., 2016. Marketing small and medium sized enterprises in the digital age:
opportunities and challenges.. Teaching Business & Economics, 20(1), p.4.
Tiago, M.T.P., 2014. Digital marketing and social media: Why bother? Business Horizons, 57(6),
p.703.
Tuten, T. & Ashley, C., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),

DIGITAL MARKETING 16
p.15.
ubereats, 2019. aboutus. [Online] Available at: https://about.ubereats.com/.
Yen, D.A., 2017. The Internet of total corporate communications, quaternary corporate
communications and the corporate marketing Internet revolution. Journal of Marketing
Management, 33(1), p.131.
Zhang, J., 2015. Building industrial brand equity by leveraging firm capabilities and co-creating
value with customers. Industrial marketing management, 51, pp.47-58.