HAT202 - Hospitality & Tourism Market: Foodora Business Portfolio

This business portfolio provides a comprehensive analysis of Foodora, a Berlin-based company specializing in online food distribution and delivery, within the Australian hospitality and tourism market. It covers various aspects of Foodora's operations, including its product offerings (meals and fruits from diverse cultures), operational processes involving a website/mobile app for order placement and delivery, strategic location and distribution methods, and diverse pricing models aimed at optimizing profitability and market share. The portfolio also delves into customer segmentation strategies, branding and positioning efforts, and current promotional and marketing materials. Furthermore, it proposes an innovative idea for expansion through establishing branches in various cities across Australia, coupled with a future integrated marketing plan encompassing personal selling, public relations, advertising, sales promotions, and direct and digital marketing to enhance customer reach and satisfaction. The analysis is supported by appendices featuring visuals and references to relevant academic sources.

RUNNING HEADER; Hospitality and tourism market
Hospitality and tourism market
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RUNNING HEADER; Hospitality and tourism market
Introduction
The business I have chosen is Foodora company which is a Berlin Based company that
involves dealing with online distribution and delivery of food to the customer premises, home
and office. It usually offers different meals including fruits from various countries in the world
for example in Australia. In order to acquire their services different customers are able to browse
through the internet and search several available restaurants in Australia and place a meal order
which is delivered through a motor bike or use of a delivery vehicle. It’s evident that Foodora
has expanded its market base and share of market in the economy in Sydney.
Current business operation
Product
The products are of high quality and readily available in large amounts. Meals are
available from all kinds of countries and sells different cultural meals from different
communities in the world. Fruits available are of all kinds. Examples of fruits in my store;
apples, Avocados, grapes, plums, strawberries, persimmons, kiwifruits, bananas, cantaloupe,
pears, lemons, mangoes, papayas, watermelons and, many more (Armstrong et al, 2015 p.45).
Vegetables that would be found in my store would be; green beans, celery, spinach, parsnips,
okra, eggplant, yellow squash, bell peppers, arson squash, tomatoes and many more.
Operations.Foodora company basically Is composed of a website or a certain mobile app where
food consumers can often browse the existing large companies which are located near their areas
of operations. They then easily place an order by selecting the preferred food of their choice. The
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RUNNING HEADER; Hospitality and tourism market
food is then picked by one of Foodora foodsters or employee and efficiently delivered to the
customer within a short period of time.
Location and distribution
This business unit is located on the outskirts of one of the major Australian towns,
including Melbourne and Brisbane which is the most strategic position. It ensures that
distribution is done in the most appropriate way. Distribution would be made to both wholesale
and other retails vendors through online ordering. (Armstrong et al, 2015 p.95). The wholesale
distributors would be so important since they would buy a large variety of products at a
considerable price and this will ensure profits for the business.
The distribution would also be made on orders to various places such as school and other
learning institutions.
Pricing Models
Various business enterprises utilize distinct pricing strategies during selling products or
offering services. In this case Foodora company can set its price in order to optimize profitability
for each unit product taken to the market for sale to increase its overall market share. Therefore,
pricing models involve the methods of pricing where all costs incurred are recovered which
includes variable cost and fixed cost of the Company’s product.
Contribution margin-based pricing
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RUNNING HEADER; Hospitality and tourism market
This model usually maximize the profitability as got from each unit which is the difference
between the initial price and variable costs.
Skimming
Here, products are priced high so that less good sales are required to break even.
Skimming the entire market involves selling goods at higher price to get high profitability ratios.
This model will be used by Foodora company to target customers who will adopt a certain food
product from the restaurants. Jegadeesh et al (2017) argues that this strategy can used to recover
the investment costs incurred during the startup and its used with other pricing tactics for
example penetration to acquire a wide market share.
Loss leader
This requires selling of the food products at a low profit to propel other profitable sales.
This aids the company to expand its market share based. The restaurants working with Foodora
company should employ this strategy to make customers buy the food with high marked prices to
produce an increased profit.
Penetration pricing
Foodora company can decide to set the price low with the aims of attracting food customers and
gaining a larger market share. The price will be increased once the customer base is established
to increase the company rapid market recognition
Price discrimination
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RUNNING HEADER; Hospitality and tourism market
This requires the company to set a different price for similar goods in different market
segments
Premium pricing
Typically, thus method requires maintaining the price for a good high so as to focus an
encourage favorable perceptions among customers. This make the consumers perceive highly
that expensive products are exceptional, desirable and of high quality (Jegadeesh et al 2017,
p.106). Foodora company realize the nature of the food buyers in various Australian cities for
instance customers are aspiring for changes and willing pay more for trends. Evolving the food
products and modes of delivery is a key factor.
Customer segments
Customer segmentation is the process where customers are divided into small
manageable groups considering their common characteristic so as to aid in the marketing
process. Customer segmentation is done basing on four pillars (Johnson, 2016 p.57). These
pillars are; geographic, demographics, psychographics and behavioral.
Under the geographic, a number of things are considered and these are the language of the
people, the city of interest, and the climate of that area and so on (Johnson, 2016 p.157). For
demographics things put into consideration are like the age, gender, income, education, social
status, family, life stage and occupation of the persons of interest.
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RUNNING HEADER; Hospitality and tourism market
The psychographics looks at the lifestyle, personality values, attitudes and concerns of
the persons targeted. The behavioral is the last pillar and it takes into account things like the
passage usage, buyer stage, intent, benefits sought and the occasion of purchase by the customer.
Branding and positioning
Branding and positioning are very important for the success of any business. In this
Foodora company food distributors, the branding is very unique and strategic so as to attract
more customers and retain them too. The company branding in the social media is very unique
and irresistible and this is exactly what makes customers keeping running to us.
Current promotion and marketing materials
We do carry out surveys and ask our customer the types meals, drinks, fruits and
vegetables they really need to order from the restaurants through survey and questionnaires in the
company website and mobile application (Sugathapala et al,2015 p.109). We make an effort of
bringing what the customers want and we carry out a number of promotions to make them buy.
There are discounts that are also given to encourage the customers to make a purchase. We also
have and do circulate a number of fliers and brochures to explain what we deal with and this is a
really big boost for us
Appendix 1-product (Sugathapala et al, 2015 p.110).
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RUNNING HEADER; Hospitality and tourism market
Appendix 2-Location and distribution (Shim, 2013 p.45).
Appendix 3-Restaurants working with Foodora Company (Shim, 2013 p.87).
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RUNNING HEADER; Hospitality and tourism market
Appendix 4-customer segments (Shim, 2013 p.123).
Appendix 5-Branding and positioning (Iacob et al, 2012 p.56).
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RUNNING HEADER; Hospitality and tourism market
Appendice 6-some of the food fruits that Foodora deals with acquired from Sydney Restaurants,
Australia (Iacob et al, 2012 p.92).
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RUNNING HEADER; Hospitality and tourism market
JJ
Recommendation or Innovation Idea
Description
There is this great idea of having different branches if this shop in various cities all over
the countries, it was proposed by our customers. There a number of customers who have to travel
for long distances just to access of products (Iacob et al, 2012 p.156). Having these branches
scattered all over the country will be very great for them and would also make it possible for us
to make more profits.
Applicability
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RUNNING HEADER; Hospitality and tourism market
This recommendation was considered and after a lot of consultations, it was agreed that
the shop is planning to open various branches in various cities in the country. Five more
branches would be opened than other more will follow depending on the demand and supply of
fruits and vegetables that we do have.
Future integrated marketing plan
Plan overview
The plan of Foodora company in Australia is to start various branches in various other
cities around the country, apart from Sydney. In a matter of fact. even the superior products
cannot sell it, customers have to have every detail and information about the product I am
selling, and this will, therefore, require me to employ the promotional mix. Here I have to bring
together a number of factors such as advertising, publicity, promotion involving sales, direct
marketing strategies and personal selling (Aspara et Al,2013 p.45).
Target market
Foodora company has an open market, there are no specific persons targeted. All kinds of
people do eat vegetables and fruits. I can say that our target is on the general population in these
various cities that we are planning to open our branches.
Promotional Mix
Personal selling
Personal selling refers to the face to face communication between the buyer and the seller
(Aspara et Al, 2013 p.65).
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RUNNING HEADER; Hospitality and tourism market
Fig.1.1.1 Foodora couriers buying food and fruits for customers
Public relations
Public relations refer to all the activities that are deliberately undertaken so as to generate
some kind of publicity and increasing goodwill thus bringing about increased sales (Aspara et
Al,2013 p.99). It may include hosting several events and media coverage.
Advertising
In relation to the promotional mix, advertising can be defined as the appropriate
delivering of a message to the targeted market that should result in favorable reactions such as
increased sales. Our advertising channels and media would be as the one shown below (Aspire et
Al,2013 p.145).
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RUNNING HEADER; Hospitality and tourism market
Fig 1.1 Advertisement medium chart
Sales promotion
Sales promotions are just like advertising, but in this case, some kind of reward is
awarded for a certain behavior. We purpose to offer certain gifts and rewards to our customers in
our sales promotion (Luzzini et al,2012 p.56).
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RUNNING HEADER; Hospitality and tourism market
Fig 1.2 Customers satisfaction in Australia
Direct and digital marketing
Foodora company involves use of digital online marketing to target customers who use
the internet sites for example Facebook and make them order the meals in order for it to be
delivered to their premises. Direct and digital marketing involves an interactive marketing
scenario whereas a variety of media is used as a means of getting a response from a database of
targeted consumers (Garbi & Loureiro, 2013 p.127).
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RUNNING HEADER; Hospitality and tourism market
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Aspara, J., Lamberg, J.A., Laukia, A. and Tikkanen, H., 2013. Corporate business model
transformation and inter-organizational cognition: The case of Nokia. Long Range
Planning, 46(6), pp.459-474.
Iacob, M.E., Quartel, D. and Jonkers, H., 2012, September. Capturing business strategy and
value in enterprise architecture to support portfolio valuation. In Enterprise Distributed Object
Computing Conference (EDOC), 2012 IEEE 16th International (pp. 11-20). IEEE.
Jegadeesh, N., Noh, J., Pukthuanthong, K., Roll, R. and Wang, J.L., 2017. Empirical tests of
asset pricing models with individual assets: Resolving the errors-in-variables bias in risk
premium estimation.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Sugathapala, I., Kovacevic, I., Lorenzo, B. and Glisic, S., 2015. Quantifying benefits in a
business portfolio for multi-operator spectrum sharing. IEEE Transactions on Wireless
Communications, 14(12), pp.6635-6649.
Luzzini, D., Caniato, F., Ronchi, S. and Spina, G., 2012. A transaction costs approach to
purchasing portfolio management. International Journal of Operations & Production
Management, 32(9), pp.1015-1042
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RUNNING HEADER; Hospitality and tourism market
Shim, J., 2013. Bank capital buffer and portfolio risk: The influence of business cycle and
revenue diversification. Journal of Banking & Finance, 37(3), pp.761-772.
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