Business Case Study: Foodora's Marketing and Operational Strategies

This case study analyzes Foodora, a food delivery start-up, focusing on its marketing and operational strategies. The assignment addresses key questions regarding Foodora's marketing mix, including pricing and promotion strategies, recommending penetration pricing and sales promotion techniques like discounts and coupons. It explores primary market research methods such as interviews, questionnaires, observations, and focus groups to understand customer needs. Furthermore, the study suggests both financial (fringe benefits) and non-financial (job enrichment) motivations to address employee turnover. Finally, it provides an overview of Foodora's market segmentation, including geographic (urban), demographic (affluent), psychographic (luxury-oriented), and behavioral (frequent, quality-seeking) segments, emphasizing the importance of targeting the right customer base for sustainable competitive advantage.

Running head: FOODORA
FOODORA
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1.....................................................................................................2
Answer to Question 2.....................................................................................................3
Answer to Question 3.....................................................................................................5
Answer to Question 4.....................................................................................................6

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Answer to Question 1
Pricing
The pricing strategy plays a key role in the marketing mix and acts as a most
relevant mix belonging to the Marketing Mix strategy of an organization. Hence, the
pricing strategy of an organization should be such that it can enable the firm to
compete with its competitors and also ensure that the firm is successfully able to gain
a relatively largely share in the chosen market. Therefore, a proper pricing strategy
needs to be followed by the organization which matches their competency from the
competitors and seems convenient to the customers as well. Therefore, the pricing
strategy which can be fairly adopted for the firm Foodora is the strategy of penetration
pricing.
The penetration pricing strategy is a strategy which is used effectively to shut
down the potential competition which takes place. The given strategy becomes very
difficult to follow in the existing market but this cannot be the case but when a new
market is being exploited, the company can conduct effective researchers and utilize
resources to make the prices being offered as low as possible. Very often raising
prices later, becomes a problem. The primary goal of the given strategy is to attract
the customers and this can discourage competition in the long run.
Foodora can use this strategy in the new markets and hence, gain advantage of
the first mover’s advantage. Other competitors will fear entering the market and thus,
it will be an appropriate strategy when the firm ants to overcome international

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competing. The company however needs to ensure that they have enough resources
and man power to deal with the given scenario.
Promotion
The promotional aspect of the promotion mix strategy also tends to play a
huge role in determining the success of a company in market. However the use of the
promotional strategy is quite relative to the country in which the business is planning
to expand and invest in. There are different promotional channels available for a
company however, the best strategy for the use of Foodora will be to use sales
promotion as a mix. This is because sales promotion involves a wide range of
strategies which go a long way in helping an organization to achieve the desired
response from the market.
The different types of sales promotion techniques which can be adopted by the
company can be offering huge discounts on initial purchases, gifting offers for first
time users, offering coupons with offers like buy one and getting another free,
sampling contests and bundling.
Answer to Question 2
A business organization has various avenues which can be used by them in
order to ensure that they are able to conduct primary research. The primary reason to
carry out a primary research is to be able to understand the different needs of the
customers and ensure effectiveness. This can also come in the form of the different
organizations being able to take up ideas for new products and design processes. The

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different primary research methods which can be adopted by Foodora are as follows:
Interviews- the Company can take up interviews from different people coming up
from different backgrounds in order to understand their point of view and to be able to
figure out the primary reason behind the different needs, demands and the behavior of
the target market. The different consumers may be given certain incentives to be able
to attend these interviews so that they can give their time. The interviews serve as a
detailed method of research and the responses reviewed can be utilized effectively.
Questionnaires/Surveys- The questionnaires and surveys are a cost effective method
of collecting information about the demands of the different customers. This is
because, the questionnaire can be simply sent to the customer and they can again be
provided a discount or submission and other related offers. The questionnaires which
will be used by Foodora can be open ended or closed ended and different aspects can
be figured out.
Observations- Observations take place when the marketers tend to observe and track
the pattern which is being followed by the customers. The customers in case of the
Foodora business can be observed by tracking their daily purchases, the price in
which they can fit their budget and their other needs. When the observations take
place closely various aspects of the target market can be reached out to.
Focus groups- The different consumers can be called up for a discussion amongst
themselves and their arguments or interactions amongst one another based on the
purchases can be observed and a conclusion can be reached.

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It is important that Foodora uses these methods keeping in mind the cost
effectiveness of the method and its efficiency in predicting the behavior of the
consumers.
Answer to Question 3
The case study reflected that Foodora is facing a problem with respect to the
high turnover of the different employees. The company needs to ensure that the
turnover rate is kept at low as this will permit the firm from performing reasonably
well. Employees generally look out for different benefits when they are working for
the long term of the organization and thus for this reason they need to be provided
with certain motivational factors. The motivational factors can be either Financial or
non-financial in nature. For this purpose, the method which can be adopted by
Foodora to motivate its employees has been discussed below:
Financial Motivation
Financial motivation comes in the form of providing monetary benefits to the
different customers. These include benefits like wages, salary, Fringe benefits and
share ownership. The method which will be best suited for the Foodora Company will
be the Fringe benefits. The fringe benefits can be described as an extra benefit
supplementation which can be provided to the different employees in order to
motivate them. This can be providing them with car, health care, housing, education,
food and travel allowances.

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In the given scenario, Foodora can provide its employees with:
 Vehicle
 Health benefit
 Travel allowance
 Food allowance
These allowances are the needs of the employees and often go way higher in
impressing them other than the basic wage being offered. If the employees are
provided with these benefits, they will be willing to work for a longer time in the firm
and it can improve the falling turnover rate.
Non-financial Motivation
The motivation aspects can be non-financial as well. The non-financial
motivational aspects include providing the different employees with job enlargement,
rotation, enrichment and empowerment opportunities. These opportunities often tend
to attract the employees more than the financial aspects and thus form an integral
ingredient to successful employee relationships.
Foodora can follow the method of job enrichment to its different employees.
By following the given method, the company can ensure it is providing a lifetime
experience to the different employees which will assure long term sustenance. This
enrichment can be provided by providing them with decision making powers,
appraisals, credits and recognitions.

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Answer to Question 4
Market segmentation forms an essential aspect for any business as it goes a
long way in helping the company to remain focused towards its different aspects and
outlooks. Hence, every firm including the Foodora Company needs to have a specific
segment with respect to the different dimensions. The following can be analyzed.
Geographic- The geographic segmentation is largely done based on the location of
the consumers. The different components of this kind of segmentation are locations,
regions, urban and rural locations. The company needs to ensure that it chooses the
right kind of marketing segmentation to gain maximum advantage. Foodora with
respect to this aspect can go for the urban location. As the company deals with the
delivery services of the fine dine restaurants, targeting the urban population would be
considered effective.
Demographic- The demographic segmentation tends to look out for the different
characteristics of the customers such as their age, gender, occupation and the socio
economic group. This segmentation basis is often considered to be the most effective
aspect which contributes to helping the different customers to decide upon the kind of
customers they would like to serve. In this aspect, Foodora should be serving the
population which is aged above to and below 50, belong to the upper strata of the
economy and social background and tend to enjoy a good lifestyle. If this is possible,
only then they will be able to purchase from the upscale restaurants.
Psychographics- This segment targets the thinking and perception of the different

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customers. It includes factors like the lifestyles, personality, attitude and class. It is
important to market the products to the class which is most suited. Foodora can target
the psychographic group who enjoy a luxurious lifestyle, have a grand personality and
prefer eating fine food along with belonging or connections to the upper strata class.
This is because Foodora concentrates on the upscale restaurants and hence, in
practical sense, a richer audience is necessary.
Behavioral -The last market segmentation is based on the behavioral aspects of the
customers. They include the customers who seek benefit out of the products, their
loyalty status, rate of usage and willingness to purchase. In this aspect, Foodora can
target customers who seek taste and quality out of the product and services, tend to
order food very often and are willing to purchase food from the upscale restaurants.
The choice of the correct segments contribute to a sustainable competitive
advantage.