Just Eat: Global Marketing Strategy for Poland Expansion Case Study

Verified

Added on  2023/01/12

|10
|2564
|90
Case Study
AI Summary
This case study analyzes Just Eat's global marketing strategy, focusing on its potential expansion into the Polish market. The analysis begins with an overview of Just Eat's operations, financial performance, and competitive landscape, followed by an examination of the online food order and delivery market in Poland, including market size, growth trends, and competitive forces using Porter's Five Forces analysis. The study then explores consumer buying behavior in Poland, providing insights into market demand and preferences. A key component of the analysis involves evaluating standardization versus adaptation strategies and recommending a suitable market entry strategy for Just Eat, considering options like strategic alliances, licensing, and franchising. The marketing mix of Just Eat is compared with its competitor, Pyszne. The report concludes with recommendations for Just Eat's global marketing strategy in Poland, emphasizing the importance of adaptation, strategic partnerships, and a tailored marketing mix to succeed in the competitive online food delivery market.
Document Page
Just Eat-Individual Case
Study Analysis
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................3
Analysis of company(Just Eats)..................................................................................................3
Analyse the online food order and delivery market in Poland....................................................4
Analyse consumer buying behaviour (in Poland) for online food order and delivery................6
Marketing Mix Analysis of Company and its competitor...........................................................7
SUMMARY................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENECES............................................................................................................................10
Document Page
INTRODUCTION
Global marketing strategy is determined as the effective strategy that is obtained by the
company while expanding their business at international market place and implementing
marketing efforts towards the same for enhancing awareness about them at marketplace. This
simply provides support to businesses in attaining success at global scale which also increases
their sales as well as probability (Schlegelmilch, 2016). The present report is based on Just Eat, a
British online food order and delivery company. The respective company was incorporated in the
year 2001 and is headquartered in London, England. The company is already performing well in
UK and other operating country but it is now emphasizing expanding its business in Poland for
attaining success in better manner. This report includes detailed description on analysis of the
Just Eats, further analysis of Poland's online food order and delivery market. At last, global
marketing strategy will be developed for Just Eats with the usage of Standardisation and
adaptation towards new market. Also application of marketing mix framework will also be
performed for enhancing chances of success at Poland.
Analysis of company(Just Eats)
The company basically works as the intermediary between food outlets or stores and
customers. The key people of Just Eats are Peter Duffy is the CEO, Paul Harrison (CFO) Just
Eats is performing well with the UK market and other countries, it is having stronger customer
base which supports them in maintaining their business functioning and attaining success in
rightful manner. By analysing recent financial implication due to Australian market, the
company is planning to expand its business European countries especially in Poland.
Current revenue of the company is almost £ 1.0 billion, whereas the net income of Just
Eats is almost £ 77.9 million. Increase trend of digitalization has enhanced growth of this online
food delivery company which is offering quick delivery services to its customers from their
favourite food restaurant (Results and reports, 2020). Apart from this, it has been analysed that
business activities of Just Eats company is basically performed by total number of 3600
employees who manages every work effectively and also contributes in the success of company
in rightful manner (Keegan, 2017). The company is also having strong presence in Italy,
Switzerland which is further moving to Canada too. Competitiveness within online food delivery
service is relatively high as it has major rivals such as Uber Eats, Mr. Delivery, Delivery.com,
Document Page
Delivery Hero, DoorDash, Takeaway.com, Postmates, GrubHub and many other operates their at
both the national and international scale.
Analyse the online food order and delivery market in Poland
The overall population in Poland is around 38,652,583 people. It is constantly increasing
day by day which simply means there are huge chances of success for this company in Poland as
it can easily find out its potential customers who will provide them business in the near future. It
will be difficult for this company to influence restaurants to enter into tie up with Just Eats. This
is so because, the company is new in this market thus restaurant might not trust them
(Steenkamp, 2017). This can be seen as the major challenge for them in Poland. Online food
order and delivery market in Poland is growing constantly as number of companies are
increasing in this sector in rapid manner. Also, technological advancement is acquired by this
sector effectively in order to serve the customers in such a manner that will influence them to
make purchase from the same company again and again.
Competitive analysis Porter's five force analysis
Porter's five force analysis is mainly used by businesses for analysing overall industry in
deep manner. This analysis directly provides support to the businesses in taking right strategy
that could bring success to them in rapid manner. All five forces of this framework is specified as
below:
Threat of new entrants (Moderate): Influence of this force is relatively moderate for
online food order and delivery company as it has few entry barriers which makes it easier for
every entrant to enter into the industry. But, at the same time it requires huge capital to establish
their business in the online food order and delivery sector. This shows moderate effect of this
force over the industry.
Threat of substitutes (High): With the technological advancement, existing rivalry are
trying to introduce new product in order to grab attention of the existing customer and attain
success in rightful manner (Armstrong and et. al., 2018). There are probable chances that
competitors might introduce drone delivery which will directly hamper demand of online food
order and delivery.
Bargaining power of buyer (High): Here, influence of bargaining power of buyer is
high for Just Eats. This is so because, customers have lots of options from where they can order
required food item. Thus, with reference to online food order and delivery market in Poland it
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
can be said that buyers can easily move to another company where they will get better services at
low cost.
Bargaining power of supplier (Moderate): Suppliers are the one who provide raw
material and other required things. The influence of this force is relatively high for online food
order and delivery sector in Poland. This is so because suppliers for this sector are restaurant
who provides them food to deliver it to the customers (Rao-Nicholson and Khan, 2017). Number
of restaurant are very high in Poland, thus if suppliers do not support the company then it won't
be able to serve its customers.
Competitiveness rivalry (High): Competitiveness within the industry is very high as it
has huge number of companies who are leading the sector in effective manner. Main competitors
for this company are Uber Eats, Mr. Delivery, Delivery.com, Delivery Hero, DoorDash,
Takeaway.com, Postmates, GrubHub. In order to sustain longer in the industry, it is highly
important for the company to serve high quality services to its customers so that they can satisfy
its customers in lucrative form and sustain longer within the same industry (Zaveri and Amin,
2019).
Document Page
Analyse consumer buying behaviour (in Poland) for online food order and delivery
Demand for online food in Poland/consumer behaviour in Poland
(Source: Online Food Delivery Revenue in Poland, 2020)
On the basis of above graph, it can be interpreted that revenue generation within online
food delivery industry of Poland equals approximately US$452m in 2020. This revenue
generation is forecasted to be implying annual growth rate of 11.6%. This means the resultant
market volume of US$703m by the end of the year 2024. The figures largely signify the
inclination of vast majority of population of Poland towards online delivery of food and beverage
items (Online Food Delivery, 2020).
Standardisation or adaptation strategy for Just Eat in Poland
Standardisation is an approach to marketing whereby the firm advertises the commonality
underlying within the products when sold in a variety of markets across the globe. On the
contrary, adaptation is a marketing approach wherein the company stresses upon the
incorporation of alterations done within products of company as per the market in which firm is
selling the products (Baena, 2019).
Illustration 1: Online Food Delivery Revenue in Poland
Document Page
As per the analysis of both the strategies, it can be said that adaptation would be the most
suitable strategy for Just Eat PLC as it would allow the respective online food delivery company
to adapt their offerings as per the market in which it operates. This will aid the enterprise in
appealing to the customer base of Poland and retaining them for a long period of time in future
context.
Market entry strategy Just Eat for Poland
It is important for Just Eat to take into account the different types of market entry
strategies in order to determine the most suitable one for it. In this regard, the entity is looking
upon 3 strategies, strategic alliances, licensing and franchising. These are explained as
underneath:-
Partnering and strategic alliances
This is an effective alternative as a strategy to enter into new market by facilitating
collaboration with the local partners. It includes a contractual agreement between two or more
ventures in which that involved the parties perform in definite way with certain period of time to
accomplish a common goal.
Licensing and Franchising
These two are similar concepts and both are widely used by companies across the globe.
The major distinction that lies between both the strategies is that licensing consists of selling the
product and services through other person while franchising refers to give permit another person
to sell the matching product in the other location (De Mooij, 2018).
Marketing Mix Analysis of Company and its competitor
Marketing mix is a combination of strategies, actions and tactics applied by a company to
appeal to people within a market place. The marketing mix of Just Eat in comparison with one of
its biggest rival named Pyszne is presented beneath:-
Product:
Just Eat is engaged in sale of offerings within 5 categories and all of these categories act
as individual product line. The firm sells differentiated products and services which makes it
stand distinctly among the competitors. On the other hand, Pyszne offers wide variety of
products as per the demands of people in market place.
Price:
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Just Eat follows competitive pricing strategy whereby the firm sets prices after taking
into account the strategies adopted by rival firms within online food ordering industry. Opposed
to this, Pyszne follows value based pricing strategy wherein the focus of this organisation is upon
setting the prices of food and beverages in a manner such that consumers feel that the value they
are being charged is worth the product they receive in return (Steenkamp, 2017).
Place:
Just Eat does sale of its products with the usage of 2 channels. The first one is direct sale
through organisational website. The second one whereby the sale takes place through passage of
goods from wholesalers to retailers across United Kingdom. On the other hand, Pyszne does
direct selling of products via company's website and mobile application.
Promotion:
Just Eat makes use of a mix of promotion channels. In context of traditional media, it
capitalises upon advertisement via radio and television. Further, it leverages social media and
online marketing to advertise the offerings of company on a large scale (Ratten, 2017). Contrary
to this, Pyszne makes use of social media and digital marketing strategies to gain the attention of
people in market.
SUMMARY
The overall project was based on Just Eats a well known online food order and delivery
company of UK which is planning to expand its business in Poland for enhancing their
profitability. For developing effective marketing strategy for its business expansion, range of
frameworks like porter's five force analysis, 4Ps of marketing have been used in order to attain
success in the same industry within Poland. On the basis of overall analysis, it is recommended
to this company to make use of adaptation strategy while entering into Poland as it will help
them influencing interest of customers towards them (Wu, 2016). Also, it is further suggested to
the company partnering strategy as the main market entry strategy as it helps them out in
establishing business in Poland with lower chances of failure.
CONCLUSION
On the basis of overall analysis performed in the above section, it is concluded that global
marketing strategy helps company in succeeding at international scale and also provides them
support in obtaining higher profitability in the same market place. It has been further determined
Document Page
that the adaptation is determined as the effective strategy that provides support to the company in
establishing their business in the new country in appropriate manner. In addition to this, it can be
further said that the comparison of marketing mix of companies helps firm in determining their
weak areas and providing them opportunity to improvise it as per the requirement.
Document Page
REFERENECES
Books and Journals
Schlegelmilch, B. B., 2016. Global marketing strategy. Cham: Springer Nature.
Keegan, W. J., 2017. Global marketing management. Pearson India.
Steenkamp, J. B., 2017. Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Armstrong, G. M., and et. al., 2018. Marketing: an introduction. Pearson UK.
Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing
strategies in emerging market cross-border acquisitions. International Marketing
Review.
Baena, V., 2019. Global marketing strategy in professional sports. Lessons from FC Bayern
Munich. Soccer & Society, 20(4), pp.660-674.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Steenkamp, J. B., 2017. Global brand strategy: World-wise marketing in the age of branding.
Springer.
Ratten, V., 2017. Gender entrepreneurship and global marketing. Journal of global
marketing, 30(3), pp.114-121.
Wu, C. W., 2016. The international marketing strategy modeling of leisure farm. Journal of
Business Research, 69(4), pp.1345-1350.
Zaveri, B. N. and Amin, P. D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
Online
Online Food Delivery. 2020. [Online]. Available Through:
<https://www.statista.com/outlook/374/146/online-food-delivery/poland#market-revenue>.
Results and reports. 2020. [Online]. Available Through:
<https://www.just-eat.com/investors/results-reports>.
chevron_up_icon
1 out of 10
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]