Marketing Plan for Menulog: Strategy, Competition & Market Analysis

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This report provides an in-depth analysis of Menulog, an Australian food delivery service, examining its competitive landscape, target market, and market position. It identifies key competitors such as Deliveroo, UberEats, and Foodora, and discusses Menulog's strengths as an experienced player in the Australian market. The report also explores the company's target market, focusing on consumers who prefer home delivery convenience, and assesses Menulog's current value and position as a market leader. Research methods, including surveys and questionnaires, are discussed to understand consumer behavior and market trends. The analysis concludes that Menulog has maintained a strong position in the Australian market despite increasing competition, leveraging its experience and strategic partnerships. Desklib provides a platform for students to access similar solved assignments and past papers.
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Running head: MARKETING PLAN FOR MENU LOG FOOD DELIVERY
MARKETING PLAN FOR MENU LOG FOOD DELIVERY
Name of the Student
Name of the University
Author Note
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1MARKETING PLAN FOR MENU LOG FOOD DELIVERY
Executive Summary
The analysis in the report is based on the analysis of a local home delivery service of
Australia. The analysis is based on the details of the home delivery service and the
competitors of the company in the market. The company that is taken into consideration for
this analysis is Menulog food delivery app. The competitors of Menulog are analysed in this
report and the target market of the company in Australia is also analysed in detail. The
methods of research used for this analysis is also discussed. The position of the brand, in this
case Menulog with respect to the perceptions of the customers and the competitors in the
market is also analysed in detail. The report is concluded with the saying that the Menulog
has held its position in the Australian market even after the entry of many competitors.
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2MARKETING PLAN FOR MENU LOG FOOD DELIVERY
Table of Contents
Introduction....................................................................................................................3
About the company........................................................................................................3
Competitors of the company..........................................................................................4
Target market of the company...................................................................................6
Current value and position of the company in the market.........................................6
Methods of research used in this analysis......................................................................7
Current value analysis of the brand................................................................................9
Position of the brand as compared to perceived values of customers and
competitors.............................................................................................................................9
Conclusion....................................................................................................................10
References....................................................................................................................11
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3MARKETING PLAN FOR MENU LOG FOOD DELIVERY
Introduction
The report is based on the analysis of a company based on the competitors it has in
the market and the value of the company in the industry. The company is analysed based on
its target market and the position it holds in the industry. The research is done based on the
perception of the customers and competitors about the value and the position of the company
in the market. The industry that is taken into consideration for this analysis is the food supply
industry (Albrecht et al., 2015). The home delivery service industry of Australia is taken into
consideration for this analysis. The chosen company for this analysis is Menulog Home
Delivery services.
About the company
Menulog is a food delivery company originating from Australia. The company was
founded in the year 2006 in Sydney, Australia. The company operates a food delivery app
and has tie-ups with approximately 500 famous restaurant chains. The company offers more
than 130 cuisines to the customers from all over the world. The company has 8600 partner
restaurants in Australia. The company has been operating in this industry for more than 10
years now. The company has handled more than 22 million orders of meal since its inception.
In the year 2015 in the month of February, the company had decided to merge its operations
with EatNow which is another organization performing the same operations
(Menulog.com.au., 2017). The company was however bought by Just East for an amount of
855 million dollars in the month of May of the same year. The company formed another
partnership in the year 2016 with Drive Yello which is a technology based organization
which would help the organization in providing facilities regarding the booking of drivers,
tracking of deliveries and access other data as well. The organization has featured in the
media many times (Bharadwaj, Varadarajan & Fahy, 2015). The company was highlighted in
the year 2015 in a study which showed the hungriest suburbs of Australia which was
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4MARKETING PLAN FOR MENU LOG FOOD DELIVERY
published in a newspapers named The Daily Telegraph and The Herald Sun. The company
has also organized award functions like the Tasty Takeaway awards, which recognised some
of the popular restaurants in Australia. In the year 2015, the company had launched a
program which was first of its kind and it recognised the healthiest restaurants with takeaway
options. The dishes in the menu of the restaurants were highlighted if they fulfilled the
healthy food criteria (Bustinza et al., 2015). The organization created the world’s first pizza
made of 23 carat gold. The company therefore has a good amount of media coverage and has
also featured in the news due to the initiatives taken by them (Coccia, 2017).
Competitors of the company
The food delivery industry in Australia is on the rise in the recent years. The business
of the food delivery is increasing along with the number of apps as well. The food delivery
apps in this country are offering a variety of cuisines including fast food and pizza. The food
delivery companies from other countries of the world are also entering the booming market of
Australia. UK based food delivery app Deliveroo has entered the Australian market in the
time of two months (Davcik & Sharma, 2016). The other companies that operate in the food
delivery market of Australia are Delivery Hero which has made around 600,00 customers in a
short span of time. Another major competition of Menulog in this market is Foodora.
Menulog was purchased by Just Eat in the year 2016 for an amount of 855 million dollars.
The three companies in this industry including Menulog, Foodora and Deliveroo are the main
competitors and they have been fighting for the market share in the Catering and Restaurant
industry of Australia (Filieri, 2013).
The food revolution in Australia has led to the entry of another food delivery service
in the market which is namely UberEATs. UberEATs is the freshest player in this industry.
The company mainly uses the drivers they already have in their networks to deliver food to
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5MARKETING PLAN FOR MENU LOG FOOD DELIVERY
the customers. The company claims to deliver food from the trendy and high-end restaurants
in the country. The restaurants however do not only belong to the five-star category;
however, they have a variety of all other types of restaurants (Goetsch & Davis, 2014). The
other competitor of the company Foodora is German company and it was previously known
as Suppertime. This organization also has an app and they deliver food with the help of cars
and bicycles. The company claims to deliver food which is of high quality and healthy as
well. Another major competitor of the company as mentioned above is Deliveroo (Grönroos
& Voima, 2013). This is an UK based company and it has also entered the Australian about
two years ago. The company claims to take into consideration the viewpoints of both the
customers and the delivery people as well (Herrera, 2015).
The discussion regarding the competitors of Menulog depicts that the other companies
or food delivery apps are new to the market of Australia. Menulog is however operating in
the Australian market from around 10 years. Menulog is therefore an experienced player in
the market and gives stiff competition to the other players who are new to the market
(Hinestroza & James, 2014). Menulog is a food delivery app which knows the Australian
market well and can cater to the needs of the citizens in the best manner. However, in the
recent times after the increase in the customer base of this industry, the competition has also
increased. This has decreased the market share of Menulog and increased a lot of competition
(Huang et al., 2015).
Target market of the company
The food delivery market of Australia has shown huge growth in the recent years.
This industry has proven to be a new battleground for the food delivery companies in
Australia. The target market of the companies has also increased in this industry. The
increase in the target has attracted many new companies in the food delivery industry. The
model of business for these food delivery apps is quite simple (Jones et al., 2016). The
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6MARKETING PLAN FOR MENU LOG FOOD DELIVERY
companies deliver food from the partner restaurants to the customers. The customers need to
pay a minimum of delivery fees sometimes for the food that is delivered. The customers are
allowed to have their favourite cuisines without leaving their couches in the comfort of their
home. These facilities have been provided to the customers by the food delivery apps that
were already present in the market or the new players that have entered in the market (Kumar
& Pansari, 2016). The food market of Australia is booming in the recent tines. The orders of
Menulog has seen huge growth recently. The competitors of the company have also shown
growth in the sales. The customers now prefer to have their favourite cuisines deliver to their
homes rather than visiting restaurants. The customers are also ready to pay a minimum
amount of delivery charges to the companies. The unwillingness of the Australian citizens to
cook at home is helping in the growth of food industry which is now worth of multibillion
dollars (Mobin, Dehghanimohammadabadi & Salmon, 2014). The target market of Menulog
are these people who are not ready to cook at home or go out to the restaurants. Menulog has
therefore encashed this opportunity to increase their share in the market and profitability as
well.
Current value and position of the company in the market
Menulog holds the first position among the food delivery apps in Australia. The
company has more than 7000 restaurants as partners and offers more than 130 cuisines. The
company was snapped by Just Eat which is a British company and the company entered the
Australian market in this manner. The company was more than 855 million dollars. The
company was successful in the Australian since its inception. Menulog was the number one
company in Australia in the field of food delivery (Nieves, Quintana & Osorio, 2014). Just
Eat was another company of the same market position based in UK. The company acquired
Menulog in the year 2015 and entered the Australian market. The food delivery market of
Australia along with New Zealand is worth more than three billion dollars. Menulog is a
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company which has strong leadership base which has made the company successful in
Australia as well as other countries (Piligrimiene, Dovaliene & Virvilaite, 2015). The two
companies have proposed to work together in growing Australian market to grow and
increase their market value as well. Menulog has gained a lot from the experience of Just Eat
in the field of food delivery. The main importance of the merger laid in the gain that Menulog
had from the digital marketing activities of Just Eat (Ribarsky, Wang & Dou, 2014). Menulog
has used the opportunities that were received by the company due to the increasing use of
smart phones and applications. Menulog has been competing in this area based on food
delivery options with the other new players in the market.
Methods of research used in this analysis
The companies need to study the behaviour of the consumers related to their response
to the products and the services that they provide. The research is done by the companies to
test the new services and products that are being introduced by the companies. The
development of the existing services or the products of the company are analysed with the
help of these researches that are conducted by the companies. The company also needs to
analyse the behaviour of the consumers towards the services or the products that are
promoted by the companies (Rutsaert et al., 2014). The marketing plans of the companies are
made based on the behaviour of the consumers towards the services and products of the
companies. The habits of the consumers related to the purchase of the products and their
opinions are also analysed with the help of research. The companies can use many methods to
conduct research on the customers. The research of the customers of Menulog has also been
done based on these methods (Růžičková & Novák, 2014). The first method that was used for
this research is survey and questionnaire. The survey was done based on the feedback that
was received by the company in the website. The detailed information was collected based on
the questionnaire method. The questionnaire was prepared based on the satisfaction level of
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8MARKETING PLAN FOR MENU LOG FOOD DELIVERY
the customers regarding the services of the app. The time taken to provide the deliveries was
another parameter of the questionnaires. The amount of delivery charges of the app was
another important parameter of the app (Srivastava, Franklin & Martinette, 2013). The
answers were taken based on a scale of 0 to 10, where 0 being the least favourable and 10 is
the most favourable option. Another method of research that was used is the method of
surveying the focus groups. Small groups of the consumers were interviewed based on
different parameters of the survey. In this manner the behaviour of the consumer towards the
brand was analysed. Another way by which the research related to Menulog was done is the
method of ethnographics. Ethnographics is a research method which is an in-depth analysis of
the behaviour of the consumers. The daily activities and the lifestyle of the consumers were
analysed (Urbancova, 2013). The way in which the service of the food delivery app is a part
of the daily activities of the group of people is analysed with the help of this research method.
This research method has proven to be expensive for many companies, however it is an in-
depth analysis and provides immense help to the companies to analyse their consumers.
Panels of researchers were formed to operate the research function for a long term and
thereby the research methods are analysed by the members (Veerendrakumar & Narasalagi,
2015). The advertising campaigns, the designing of the services of the company are done
based on these research methods.
Current value analysis of the brand
Menulog has acquired the number one position in the Australian market and has
announced a growth of 77% in their revenues in the year 2016. The restaurant delivers more
than 6.4 million orders with the partner restaurants. The company has a continuous growth
over the years and is serving more than 2.3 million happy customers.
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Position of the brand as compared to perceived values of customers and competitors
Menulog has held the first position in the market of Australia since its inception. It is
considered to be the number one and most trusted food delivery app in the current situation as
well. The Australian food market has however grown a lot since the last few years. The
increase in the market of food delivery business of Australia has also increased the number of
players in the market as well. The competition in the market for Menulog has increased a lot
in the last few years (Verbeke & Tung, 2013). One of the new players in the market of food
delivery was UberEATs, which is a cab company in Australia and they have recently entered
the food market. The company claims to deliver quality food within the estimated time. The
company claims to have a mix of trendy and high-end restaurants as well. However, the
experience of the customers with the app was not good. The customers had complained
regarding the delay of the delivery of food and the low quality of the food as well. However,
the refund policy of the company was good. The other company in the food market is
Foodora which is a company of German origin (Albrecht et al., 2015). The app of the
company was a bit complicated and not user-friendly. However, the app is quite
straightforward after signing up and the food is also delivered in good condition. Another
major competitor of Menulog in the market is Deliveroo. This is an UK based company and it
is company based on technologies and they claim to understand the point of views of both the
restaurants and the customers as well. The sign-up process of thus app is quite user-friendly,
however, the discount is not applied in the app. The food is also delivered in good condition
according to the customers. Menulog is the most experienced player in the market and they
are operating in Australia for quite a long time (Bharadwaj, Varadarajan & Fahy, 2015). The
company has an extensive coverage all across Australia. The app offers all kinds of cuisines
as per the preference of the customers. The experience of the customers is the most
favourable with Menulog as compared all the other food apps. This has therefore given
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Menulog the number one position in the market. The position of the company in Australia as
compared to the other food delivery apps is therefore number one according to the perception
of the customers and the competitors as well (Bustinza et al., 2015).
Conclusion
The report can be concluded by saying that Menulog has maintained its position in the
market since the time of its inception. The company has however gone through many rough
patches in the recent years. In spite of this, they have tried to improve their services over the
time so that they can gain from the growing Australian market and also counter the
competition that is being given by the new players in the market. The value of the company
has also increased in the recent years due to the increase in customer base. This way the
company has been successful to maintain its top position even after being acquired by the
British company Just Eat.
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11MARKETING PLAN FOR MENU LOG FOOD DELIVERY
References
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Employee engagement, human resource management practices and competitive
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Bharadwaj, S. G., Varadarajan, P. R., & Fahy, J. (2015). Sustainable competitive advantage
in service industries: a conceptual model and research propositions. In Proceedings of
the 1992 Academy of Marketing Science (AMS) annual conference, Springer
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Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive
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Coccia, M. (2017). Sources of technological innovation: Radical and incremental innovation
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Filieri, R. (2013). Consumer co-creation and new product development: a case study in the
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Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
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Grönroos, C., & Voima, P. (2013). Critical service logic: making sense of value creation and
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Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate
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Nieves, J., Quintana, A., & Osorio, J. (2014). Knowledge-based resources and innovation in
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