Griffith University 3006MKT: Deliveroo Marketing Audit Report

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This report presents a comprehensive marketing audit of Deliveroo, a food delivery service company experiencing rapid global growth. The audit delves into the factors influencing Deliveroo's current market position, analyzing its service blueprint, physical evidence, and strategic plans. It examines the 3Cs of marketing—customer, company, and competitors—to understand Deliveroo's target markets, internal strengths and weaknesses, and competitive landscape, including competitors like Menulog and UberEats. The analysis covers the company's customer service strategy, the impact of technology, and the service blueprint. The report concludes with recommendations for future development and growth within the food delivery market.
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Running head: MARKETING AUDIT ON DELIVEROO
Marketing Audit on Deliveroo
Name of the Student:
Name of the University:
Author’s Note:
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MARKETING AUDIT ON DELIVEROO
Executive Summary:
The food delivery service company, Deliveroo, is experiencing a rapid growth in and around the
world. The report will discuss in details the factors that affect the current position of the
company and its services. It also provides and analyses the blueprint of the company and its
physical evidence. Moreover, the strategic plans and its current position is discussed too when
compared to its competitors performance. The 3 different competitors and their role and threats
will be analyzed. Lastly, the future plans and strategies for the service market to develop and
grow will be mentioned.
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MARKETING AUDIT ON DELIVEROO
Table of Contents
Executive Summary:........................................................................................................................1
INTRODUCTION...........................................................................................................................3
DISCUSSION..................................................................................................................................3
Analysis of the 3Cs -....................................................................................................................3
1. Customer:......................................................................................................................4
2. Company:......................................................................................................................6
3. Competitors:..................................................................................................................7
Analysis of Service Blueprint:.....................................................................................................8
Analysis of Customer Service Strategy:....................................................................................10
Analysis of Physical Evidence:.................................................................................................11
CONCLUSION AND RECOMMENDATION............................................................................12
Conclusion:................................................................................................................................12
Recommendation:......................................................................................................................12
REFERENCE LIST.......................................................................................................................13
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MARKETING AUDIT ON DELIVEROO
INTRODUCTION
Deliveroo is a food delivery service which offers fast and reliable delivery service that
lets the customers track their orders on their phone (Christie, Ward & Helman, 2017). The
company was found in the year 2013 and operates in nearly 12 countries and over 150 cities
(Christie, Ward & Helman, 2017). Deliveroo has seen revenue growth of over 650% year on
year. The restaurants who partner with this company tend to notice a revenue increase by 30%,
this eventually helps in creating thousands of jobs in the hospitality and restaurant sector
(Christie, Ward & Helman, 2017). The mission of the company is to completely transform the
way in which the consumers eat. Moreover, the company is socially responsible and operates in
an environmentally friendly delivery fleet which involves bicycles and scooters. Deliveroo
ensures to provide food to their customers from the best and popular restaurants in the city at any
time of the day. The sole aim is to convey delicious and healthy food directly to the customers as
quickly as possible (Christie, Ward & Helman, 2017).
DISCUSSION
Analysis of the 3Cs -
The 3 C’s of the marketing strategy are as follows –
The Customer
The Company
The Competitors
The tactical 3 C’s of marketing forms a strategic triangle when they come together and hence
a sustainable competitive advantage is achieved (Cavallini, 2017). No one customer has the same
needs and requirements as the other. When the company, Deliveroo, finds out these needs and
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MARKETING AUDIT ON DELIVEROO
requirements of their potential customers, they will then be able to offer and develop its services
accordingly. In addition to this, to be able to fulfil the needs and requirements of the customers,
the company, Deliveroo, offers its services at a low cost by differentiating them from its
competitors. Similarly, the competitors, such as, Menulog and UberEats too try to propose a
differentiated service in order to gain competitive advantage over Deliveroo. This perception of
marketing strategy concentrates on the dynamic and interconnected relationship of the 3 C’s.
Considering the size of the company, it is necessary to have a good and sturdy logistics as well
as supply chain management system.
Figure 1: Disruption of the Food Delivery Sector
1. Customer:
The main markets of the company are both the rural as well as the urban population
(Woodcock, 2016). The age is no more particular to just one age group, instead anyone, male as
well as female, who knows how to operate a mobile phone and is in need of food, can place the
order. The London based company has recently expanded its service to Singapore as well
(Nugent, 2017). Here, the company provides its services to a new forty – seater dine – in place.
Now there are three outlets in Singapore itself (Nugent, 2017). Although, the company seems to
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be exiting from Germany and stated that it would continue to grow on and deliver its services in
the other countries around the world.
Apart from this, the company has made their website and app design exceptionally user
friendly and displays places that are more often than not loved by its customers, such as, KFC,
Shake Shack, YO!, Pizza Express, Tortilla any many more (Nugent, 2017). This shows that
Deliveroo monitors the requirement and desires of its customers and channels the same
according to each customer’s individual needs. Also, in order to retain its customers and to
attract more new ones, the company offers promotional codes and discounts based on the
relationship it has with the individual customer. This tool is seen to be relatively helpful to reach
out to the customers of its competitors as well, such as UberEats and Menulog (Woodcock,
2016).
Overall, the company, Deliveroo seems to be functioning reasonably well in the countries
that it already operates in. Even though, it has some rivalry companies who are in neck and neck
yet the social media presence and the integrated marketing communication tools adopted by the
company, helps to stand out (Statements, 2017). Despite this, Deliveroo has a lot of potential and
opportunity to further develop its services by using the latest technology and providing more
options to its customers by partnering up with the up and coming restaurants and cafes in the
town. Furthermore, based on the analysis of the consumers and the competitors, there prevails
some risk factors too for the company (Statements, 2017). These factors are, the promotional
model and the strategies adapted by Deliveroo can easily be replicated by its competitors. Also,
for instance, Uber eats is now providing offers or a regular basis so this will attract more
customers and then no sort of loyalty towards the brand will exist in the market.
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2. Company:
In today’s time and age, the companies, the work – force, and the individuals, are all
expanding their horizons and growing as well as developing at an extremely fast pace
(Statements, 2017). There are new inventions and innovation almost every other day which these
big and small enterprises adopt to make their life and their employee’s life a tad bit easier
(Wright et al., 2019). Technology is now playing a huge role in the lives of customers, drivers as
well as the companies with the help of smartphone that enables them to convey their message
quickly without any hassle.
Figure 2: Market Segmentation
In addition to this, the company, Deliveroo has some strengths and weaknesses too that
helps it constantly to perform better in the future. The weaknesses being, it is a relatively new
app that is, it launched in 2013 only so it has limited menu and restaurants on its app when
compared to its competitors who are already well – established. It has a high cost structure
because of the investment in the fixed assets which includes, bikes and the uniforms (Van
Cleynenbreugel, 2019). Moreover, it has limited delivery time, personnel and service area.
Although, the strengths are that it is focussed and has a targeted service region (Ludec, Tubaro &
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MARKETING AUDIT ON DELIVEROO
Casili, 2019). The brand has become quite recognisable in todays’ world. Lastly, it has a flat
delivery fee which leads to low minimum orders as there exists nonissue of proximity.
3. Competitors:
The company, Deliveroo, has a lot of competitors in each of the country it provides its
services in. Menulog, Foodora, UberEats, Foodpanda, Honestbee, and GrabFood are some of the
competitors. The company off late, has devised a new strategy as well as a brand purpose to
distinguish itself from its competitors and create an impact in the minds of the customers. As per
the Industry Life Cycle, the company, Deliveroo, operates in the maturity phase where there is
intense competition and threat of new entrants such as the American tech giants who are entering
the UK delivery service market (Van Cleynenbreugel, 2019).
Company Leadership Employees Total Funding’s Revenue
Deliveroo William Shu 202 $ 199.6 M $ 8 M
Meals Dotun
Olowoporoku
15 $ 836 K $ 1M
Hungry - house Alice
Mrongovius
52 $ 85 M $ 7.4 M
Dinein.co.uk Evan Graj 12 $ 504.1 K $ 1 M
Doordash Tony Xu 190 $ 186.7 M $ 19 M
Figure 3: Market Share
There prevails three different types of strategic competitors where the last or the third tier
competition commences from the fast – food delivery companies and the pre – cooked meal
boxes (Goodley, 2016). The second tier competition or the secondary competitors, such as,
Eatnow and Menulog tend to differentiate their service by delivering to a wide geographical area
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(Nerinckx, 2016). Lastly, the primary competitors or the first tier competitors, such as UberEats
and Foodora makes use of similar strategies to that of Deliveroo. Due to the high demand of high
– quality food and fast service, it has resulted in parallel value propositions amongst the primary
competitors (Nerinckx, 2016). This eventually creates an extremely competitive space to preform
and operate in.
Figure 4: Positioning Map
Analysis of Service Blueprint:
Delivery service blueprint is a tool that gives the delivery service an edge. This is a tool
which can be used both by start-up companies and/ or someone who is trying to improve their
existing operations (Drahokoupli & Piasna, 2019). The service blueprint of Deliveroo presents a
map which accurately explains the service system of the company so that the people involved in
providing the service can get a clear understanding and deal with it irrespective of their
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individual perspective. This map provides the company with an approach to break the services
into logical components that describes the tasks of the procedure (Drahokoupli & Piasna, 2019).
Deliveroo’s blueprint service is categorised into two broader sections, that is, the onstage
and backstage contact employee actions (Kamaraj & Thangavelu, 2018). The activities
performed by the onstage employees are directly visible to the customer. In other words, the
onstage contact employee actions or the line of visibility separates all the services that are visible
to the customers from the ones that is not (Yadav & Barve, 2015). These activities involve
creating awareness, making the consumers register for the service, this is followed by placing an
order and then purchasing it (Jesnes, 2019). Subsequently, the customers get a lot many options
before actually placing their order. When a person open the app or the website, they get to see
options such as comfort food, office catering, desserts and sweet dishes, healthy options, only on
Deliveroo and many more (Jesnes, 2019). Now, from here, the customer opts for a variation and
then they, get to choose the cuisine, price range, rating of the restaurant, delivery time and other
such factors. This is then followed by actually ordering the product and selecting the quantity
and then paying for it where again there are certain payment options available to the customer.
After successfully having placed an order, the customer can now view the details to track their
order and know the ETA of their delivery (Yadav & Barve, 2015).
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Figure 5: Service Blueprint for Deliveroo
Analysis of Customer Service Strategy:
A lot of strategic uncertainties are present for the company, Deliveroo, within the
operating environment (Butler, 2017). There exists political instability and a slight possibility for
recession which will perhaps reduce the expenditure of consumers over the next couple of
months (Yadav & Barve, 2015). This will occur as there exists uncertainty which will in return
lead to higher rates of savings, while the consumers will continue to spend their hard earned
money only on the products and services that they think are essential for them. Other than this,
the confidence amongst the consumers have been increasing at a steady pace in the past 2 - 3
years.
The government regulations too plays a crucial role here. The company, Deliveroo
maintains a safety and health policy for their drivers, particularly, along with abiding the vehicle
safety standards set by the government (Aloisi, 2019). This in return reflects as a good conduct
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on part of the company as it follows the norms and rules (Aloisi, 2019). In case, the company did
not abide by this, then it might even face law suits and the drivers too might not want to work
with the company which will then lead to a failure for them.
Finally it is a known fact that all the customers want their delivery as quickly as possible
so the company has ensured to do the same for them. In order to be able to do so, they have
installed rapid technological vehicles with the concept of autonomous delivery (Butler, 2017).
This in return will pose a threat to the services of its competitors and to the cost structure of our
own company.
Analysis of Physical Evidence:
In order to analyze this factor, one must know the access to the service, that is, it is
accessible via the mobile phone application available on both IOS and Android (Butler, 2017).
As well as, it has its presence on the online website (Aloisi, 2019). To ensure that our customers
stay with us and not divert to our competitors, that is, Foodora, menulog, UberEats, and others,
the company, Deliveroo has mad efficient and effective use of the marketing tools (Yadav &
Barve, 2015). For instance, it does consistent branding to communicate its services and offers to
the customers.
The physical evidence here acts as a combination of the branding as well as the
environment where the service that is being given to the customers by a service executive or a
representative. This includes a service brochure, social media handles on Instagram, Facebook,
Twitter, and LinkedIn. Also, a corporate website and a request for proposal amongst the reviews
from customers.
In addition to this, the company also reassures its customers that it has employed well –
trained staffs and chefs for its services (Yadav & Barve, 2015). Also, they have also made their
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