Business Research Methods: Foodpanda Ad Research Proposal Report

This research proposal investigates the impact of a controversial Ramadan advertisement by Foodpanda in Pakistan. The study examines the business problem of negative publicity arising from the ad, which featured singing and sparked criticism. The research aims to determine customer reactions, assess the relationship between the ad and customer loyalty, and predict how controversial elements affect brand perception. The methodology includes applied research, targeting individuals familiar with Foodpanda through quota sampling based on gender and age, with data collected via online questionnaires. The report includes an industry analysis, providing an overview of the online food delivery market globally and locally in Pakistan, and identifies a knowledge gap concerning the young Muslim generation's perception of the ad. The expected outcomes include insights into the ad's short-term and long-term implications, aiding organizations in refining their advertising strategies. The research also acknowledges limitations in sample diversity, time constraints, limited literature access, and self-reported data.

A STUDY OF FOOD PANDA AD
RESEARCH PROPOSAL REPORT
BUSINESS RESEARCH
METHODS

TABLE OF CONTENTS
 Introduction
 Background
 Business Problem
 Research Objectives
 Research Limitations
 Expected outcomes
 Literature Review
 Industry Overview
 Global Perspective
 Local Perspective
 Knowledge gap
 Research Methodology
 Research Method
 Target Population
 Sample & Sampling Technique
 Data Collection Method
 Data Collection Instrument
 Timeline
 Analysis
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RESEARCH PROPOSAL
INTRODUCTION
Background
Foodpanda is an online food and grocery delivery platform founded by a small group of problem
solvers, designers, and thinkers that worked around the clock to make the company the most
powerful online meal delivery platform. Currently owned by Delivery Hero. Foodpanda operates as
the lead brand for Delivery Hero in Asia, with its headquarters in Singapore. It is currently the
largest food and grocery delivery platform in Asia, outside of China, operating in 12 markets across
Asia and four markets across Europe.
Foodpanda not only provides a service that allows consumers to easily locate meals in their
neighborhood and instantly order their favorite dishes online or via mobile devices, but it also gives
more internet visibility for businesses, which can lead to increased revenue. Foodpanda processes
and sends orders directly to partner restaurants and then delivers the meals by delivery riders to the
customers. The service is available via its websites and mobile applications. It connects customers
with restaurants that offer food delivery in their area and lets them choose, order, and pay
online/offline. Customers order food by entering their postcodes on the site and browsing for food
from a list of restaurants. They can create meals by browsing restaurant menus and selecting items
they want to order before entering an address and proceeding to the checkout. Foodpanda sends out
an SMS to confirm orders and their estimated delivery time. Foodpanda also has a review section on
restaurant pages, where customers can comment on the sales process, delivery, taste, and overall
impression of restaurants.
Foodpanda not only delivers, but also results, and they always go above and beyond to make their
clients' experiences unforgettable. It also means that people will be able to enjoy wonderful meals on
a daily basis, ranging from colorful salads to nutritious workplace lunches to delicious family-sized
pizzas. Foodpanda can meet any of its customers' wants or desires. Online Foodpanda experience
that includes "Staying in the office for lunch? Are you sick of the same takeaways? No more
wondering what is available or around you" to allow their customers to save time without leaving the
house. Foodpanda offers online menus from a massive selection of delivery restaurants near you, and
all you have to do is enter your location and search for food type, ordering food filtered to your needs
has never been easier. Food Panda started in Pakistan in 2012 and has been performing really well
since then.
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Business Problem
On March 26th, Foodpanda Pakistan broadcasted a new commercial featuring upcoming singing
sensation Shae Gill. The advertisement was intended to greet the Holy Month of Ramadan, but it
included singing, which received criticism on different social media platforms.
Controversial advertisements can generate unfavourable publicity, lowering employee morale,
increasing voluntary turnover, and decreasing sales. Negative publicity for businesses leads to a
decrease in customer growth, with the possibility of losing good consumers as well due to smear
campaigns or other types of unfavorable content online.
Research Question - How did existing and potential customers react to food panda's Ramadan
ad?
Research Objectives
- Determine the relationship between a controversial ad and customer loyalty.
- Predict how a controversial element would deter customers from using a particular brand.
- Determine the significance of customer perception towards a controversial ad.
- Determine if there is any impact of customer satisfaction on customers’ perception of a
controversial ad.
Research Limitations
- Sample is not very diverse.
Although we were hoping to get a diversified sample but since we had to depend on online
channels to distribute our questionnaire, we were only able to gain insight from a specific
audience which may affect the accuracy of our research.
- Limited time.
Due to numerous projects and strict deadlines we had limited time to work on this particular
project hence can lead to errors in the result.
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- Limited access to literature.
We weren’t able to find any previous work or literature related to our particular topic hence
this has greatly limited our scope of analysis.
- Self-reported data.
Since we gathered data on our own, it is limited by the fact that it cannot be verified hence
increasing the chances of error in the overall result.
Expected Outcomes
- By completing this study, we’ll be able to find out the relation between the controversial ad
and consumer perception of that ad along with its short-term and long-term implications.
- This will assist various organizations in carefully planning their ads in order to achieve a
higher success rate in delivering their intended message to their target audience.
INDUSTRY ANALYSIS
Industry overview
Online food delivery industry
A courier service in which restaurants, stores, or independent food-delivery companies deliver food
to a consumer is known as multiple retail food delivery. Food order is often placed via an app or a
website restaurant's or grocer's website or mobile app, or through a third-party food delivery service.
Entrees, sides, drinks, desserts, and grocery goods are among the products often provided in boxes or
bags. Normally, the delivery person will drive a car, but in larger cities where residences and
restaurants are closer together, they may ride bikes. Deliveries have recently been completed using
autonomous cars.
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Food delivery industry and advertising
A global perspective
According to the "Online Food Delivery Services Global Market Report, 2020-30," the global online
food delivery services market is predicted to increase at a rate of 3.61 percent from USD111.32
billion in 2020. However, the growth slowdown in 2020 is primarily due to a global economic
downturn caused by the pandemic outbreak and response efforts. The market is predicted to increase
at a CAGR of 11.51 percent through 2023, reaching USD154.34 billion.
In the United States, the food delivery market is mostly driven by busy work schedules and high-
income professionals who rarely have time to make their meals at home. According to Statista,
revenue from online meal delivery is expected to reach USD 28.48 billion in 2021, with a 4.3 percent
annual growth rate (CAGR 2021-2024). China will produce over USD 56.93 billion in global
revenue, nearly double that of the United States.
Food delivery industry and advertising
A local perspective
The Online Food Delivery market is expected to generate $563.50 million in revenue by 2022.
Revenue is estimated to grow at a 16.64 percent annual rate (CAGR 2022-2026), resulting in a
market volume of US$1,043.00 million by 2026. Restaurant-to-Consumer Delivery is the market's
largest sector, with a projected market volume of US$500.20 million in 2022. In terms of global
revenue, China (US$158,100.00m in 2022) will generate the highest. In 2022, the online food
delivery segment's average revenue per user (ARPU) is expected to be US$16.48. By 2026, the
number of users in the Online Food Delivery market is predicted to reach 83.6 million. In 2022, user
penetration in the Online Food Delivery market will be at 14.9%.
Foodpanda is by far Pakistan's most popular meal delivery app, with the largest market share.
Foodpanda is a Singapore-based food delivery service that was founded in 2012 and is owned by the
German company Delivery Hero. With so many restaurants, cafes, and fast food joints to choose
from, the possibilities for delivery are boundless. For regular users, the app also features the best
prices and discounts, with fresh promotions appearing on a daily basis. Foodpanda now offers
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grocery, cleaning supplies, and pharmaceutical pick-up and delivery. This app has become a leader
in the food delivery industry because of its user-friendly layout and worldwide quality services.
Cheetay is a Pakistani grocery and meal delivery business that was established in 2015. In Pakistan,
the company has a presence in more than 12 cities. Sahar the full cream organic milk delivery
service, which is a Cheetay product, is their unique feature. The app is controlled by its Lahore
headquarters. Cheetay's Lahore-centric Xoom app serves food from tried-and-true establishments in
old Lahore recognized for their delectable cuisine. They also provide a Tiffin service, which delivers
home-cooked lunches to office workers.
Careem, the car-rental business, now also provides food and shopping delivery. Careem Now is an
app that allows you to quickly satisfy your hunger by selecting from a variety of restaurant options in
your region. Careem Now was the logical next step for the Dubai-based app, with an established
client base. The company also provides shopping, grocery, pharmaceutical, and document delivery
through the pre-installed Careem rides app.
Knowledge Gap
Most of our respondents were young adults and teenagers. Nowadays, this particular audience
doesn’t regard music and signing as something unfavorable. Instead, they tend to consider it as one
of their most common hobbies. On the contrary, Islam doesn’t permit the use of musical instruments
with various prominent scholars clearly restricting young Muslims from these hobbies. So most of
our respondents might not consider the ad as something insulting to the religion or controversial in
this sense hence we consider this as a knowledge gap and there’s a space for a separate study on
identifying how the young Muslim generation deals with Islamic values and principles.
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RESEARCH METHODOLOGY
The research method we are using is applied research. Applied research is the one in which a
particular problem is solved for the company. It has specific information for the specific problem so
it can only be used by a certain company that is facing the problem. Food panda is also in a similar
situation so we have chosen this research for them. We got a total of 161 responses of which 51 were
male and 110 were female. The goal was to see how the advertisement impacted the consumers of
food panda.
Target Population
Choosing a good target population is the key to making the research authentic and useable. So for
this reason we have selected are target population to be the people who know about food panda and
its advertisement so that they can tell us what they thought of the advertisement and the brand. We
are choosing thing these people because they can give a good perception of the whole situation and
they can also tell us about their needs which is good to help the brand in targeting them.
Sampling Technique
The sampling technique we’ve used is quota sampling. The purpose of using this sampling technique
is to divide our population into segments which will give us a good representation of the population.
We have divided the population based on gender and age. Quota sampling is mostly used when the
time to conduct the survey is very short and the budget is very tight. Our research is on Food Panda
which is an online platform so we needed to target people who are active on social media.
Quota sampling is good for research because we have a short time frame and limited resources and it
can be used to get a good representation of the population. The advertisement that food panda made
may have different views to it according to the age and mentality of the consumer so it can actually
help food panda in coming up with a plan for their true target audience or to come up with a plan for
the untapped audience.
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Data Collection
The data collection is very important as it helps to store and analyse important information which
gives us important insight into the consumer and their behavior so we must use a good research
method that helps us in doing so. The data collection methods that we opted for were highly focused
on the requirement that our respondents must know about food Panda and that they must be active on
social media. We targeted people from different age groups to have a good representative sample.
Our sample was very diverse as it included people who study, do part-time jobs, or are full-time
employees. We spread our questionnaire in university and posted it online to get responses as we
were very short on time. We also approached some people in our university who were eligible to fill
out our questionnaire. We made our questionnaire in such a way that it provides us with information
about the public opinion of the advertisement.
And the reason why doing this was very important is because it provides us with important
information which directs us in the future. Food panda will now have a better understanding of their
audience and hence they can provide their audience with not only better service but they can also
provide them with better services and offers.
Data Collecting Instrument
The data collecting instrument we used for data collection is a quantitative questionnaire which is on
google docs and gives easy access to everyone. We chose this way of data collection because the
company we chose is Food Panda which is an online platform and for this, our audience needs to be
aware of the company and social media as the advertisement was heavily marketed on the social
media platforms. We collected data through Instagram link sharing and by approaching people who
seem eligible to fill out forms. The questionnaire was designed to measure the after-effects of the
advertisement and the perspective of people on the advertisement.
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Timeline
The above picture illustrates the timeline of the project and the timeline of each and every step along
the way to make this research possible. We started our project in march planning on which topic
should we research the after selecting the company we did a small research on the problem so test if
it is relevant or not then we were asked to develop a questionnaire then at the end of May we
presented the proposal on the research problem and after that, we conducted a survey and analyse it
and made it into a report from.
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ANALYSIS
Effect=α+β1CSL+β2CP
This is the equation that we are testing. We have divided our questions into two independent
variables namely, customer satisfaction level represented by CSL and customer perception
represented by CP. The dependent variable is brand loyalty represented by Effect.
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PRELIMINARY ANALYSIS
Regression
Correlation Coefficient
The coefficient of independent variables shows the relationship between the dependent and the
independent variable which in our case are, Effect (dependent), CSL (IV-1), and CP (IV-2). The
value of the coefficient indicates the direction and magnitude of the changes in the dependent
variable as compared to a particular independent variable. The correlation between “Effect and CSL”
is “0.4” which translates into “weak positive correlation”. The correlation between “Effect and CP”
is “0.12” which again translates into “weak positive correlation”.
Group Statistics
Hypothesis Testing
Null Hypothesis = There is no effect of customer satisfaction and customer perception on brand
Loyalty.
Alternative Hypothesis = Brand Loyalty is affected by customer satisfaction and customer
perception.
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