Dave Foster Danica Chin Shujun Dong Owen McLafferty Yu Wu Online - - PowerPoint PPT Presentation

⬝ Dave Foster ⬝ Danica Chin ⬝ Shujun Dong Owen McLafferty ⬝ Yu Wu

Online food delivery services

• Running restaurant transactions through their platform and

making deliveries for them

• Website or a phone app
• Increasing restaurant sales by 20%

2012-2017

• Consumers demand speed and ensured quality of food
• Without timely order pickup and delivery...

○ Food cools ○ Food quality deteriorates (lost texture, shape, etc.)

Problems foronline food delivery services

Company History

• Hungry Ducks was founded by Darren Rabie in 2010
• Emphasizes passion, and quality, local service
• The company caters to over 100 restaurants and food places in

Eugene.

• Targets college students at the University of Oregon but serves all

local areas.

Industry Recap

• Competition: GrubHub, Postmates
• App economy and innovative technology

helps grow the industry

• Online food delivery gives restaurants a new

platform to increase customer awareness

Users by Age

Users by Income

SWOT / TOWS

Strengths

• local, area of wearily populated

campus.

• app is very functional
• weather conditions in Eugene.

Weaknesses

• Length of delivery time
• Low number of employees
• Some cars without logo (hard to notice and less

exposure)

• No contact with person delivering

Opportunity

• No sales tax in area
• App economy jobs are high
• At home cooking less popular
• Students population
• Local ads on campus

SO

• Using local advantage to advertise

in local papers, books, campus events

• Pay more attention on UO

students. OW

• Integrating tracking on website and app
• Allowing contact via app.

Threats

• Low unemployment rate
• Travel emissions (biggest emitter
• f greenhouse gases)
• Lots of competing companies that

are nationally known ST

• Making strong relationships with

local restaurants to combat national delivery services

• Using bicycles as transportation to

reduce the travel emission WT

• Hire more employees to make transportation range

shorter (less emissions and shorter travel time)

• Adding logos to car to increase the brand exposure

and better compete with bigger companies.

How can the company stand out to consumers and grow restaurant base to create a sustainable competitive advantage?

Alternative:

Student Focus

• High time investment
• Brand awareness may

already be high

PROS CONS

Marketing Specifically to Students

• Focus on service

differentiation

• Discounts for on-campus

delivery

• Discounts for delivery

from on-campus eateries

• Requires partioning of

resources specifically to campus activities

• Relies on cooperation with

UO

• Coordinate with University

to have food drop-off locations in buildings

• Promotional activities

timed with events

• Rapid delivery from on

campus restaurants

PROS CONS

Customized UO Services

Alternative:

App Improvement

• Complex to set-up on both

ends

• Cooks and staff may be

unwilling to use app

• Technical problems would

need to be resolved locally at each restaurant

PROS CONS

Customer-Business Direct Communication

• Pre-order services
• Communicate directly with

restaurant servers

• Faster order preparation

⇒ faster delivery

• Benefits local supermarkets
• Capitalizes on college students
• Matches Postmates and

Cascadian Couriers parcel delivery

PROS CONS

Grocery Delivery

• Expensive/complex program
• Complicates delivery routes
• Students lack kitchen access
• Requires supermarket

pricing info and service coordination

• Competes with GrubHub and

Postmates

• Allows for records of

addresses and planning for more efficient routes

• Improves customers

satisfaction

PROS CONS Order Tracking and Number of Accepted Payment Processors

• Technical expertise needed

for GPS or geolocation

• Increases expectations of

delivery drivers

• Customers react more

negatively to slow orders

• Easily promotable

○ ie, order discounts

• Larger business orders
• Professionals can spend

and tip more

• Marketable as green

initiative PROS CONS

Group Ordering

• Complex to initiate (app)
• Possible low returns
• Extra stress on drivers

and restaurants w/ complex orders

Alternative:

Employment Restructuring

• Expensive to train and

maintain

• Potential losses from

refunds and considerations PROS CONS

Dedicated Customer Service

• Drivers focus on just

delivery

• Customers more likely to

tip

• Attention to customers
• Compete with GrubHub

PROS CONS

Non-Contract Delivery Drivers

• Fewer legal problems
• Salaried/hourly employees

can have stricter work schedules

• Better quality control
• Compete with Postmates
• More costs to company
• Training time
• Greater liability

Alternative:

More Restaurants

More Restaurants

• Expand network of locations in the Eugene/Springfield

area

• Currently 142 delivery restaurants
• Aim for exclusivity, especially with Eugene-only

restaurants

More Restaurants

PROS CONS

• Increased exposure
• Drives more sales, both for

us and our restaurant partners

• Word-of-mouth connections

among businesses and consumers

• More local presence could

push competition away

• More competition with other

food delivery services

• Loss of “local” reputation if

expansion is too big

• Longer drives + requires

more drivers

• More capital needs
• Requires control of logistics

and coordination

Our Recommendation: Focus on Serving University Students

Focusing on Students

Focusing on Students

Focusing on Students

PROS CONS

• Focuses on smaller

segment geographically

• Could cut costs on travel
• More brand awareness

through community drives sales

• Introduce new restaurants

to students

• Higher costs of marketing
• Difficult to measure

success

• Could make brand image

worse if unsuccessful

Action Plan

Objective Action When/Who Research customers and students awareness with brand

• Create surveys
• Distribute to sizeable sample
• 2 months/marketing team

Use research to formulate marketing tactics

• Collect and interpret data
• Distribute information throughout company
• Generate marketing ideas
• 2 weeks/upper management and team

Company wide competition to see who can make best campaign and implement best

• Create competition with incentives for good

ideas

• 3 weeks/upper management and team

Implement chosen campaign

• Evaluate current resources and resources needed

for campaign

• Hire on campus reps to attend campus events

and stay on campus to hand out flyers/coupons promoting campaign

• Add whatever other resources necessary
• 8 weeks/Upper management

Monitor campaign success

• Monitor amount of deliveries, sales, new users
• 6 weeks/marketing team

Make adjustments and determine ROI of campaign

• Collect data of sales from campaign subtract

investment in marketing and divide by initial investment

• 2 weeks/marketing team and financial team

Objective Measure Initiative Financials Sales increase Sales comparisons from year before campaigns to year

• f/after

Commissions for marketing team/sales and delivery team Increase ROI Compare revenues from campaign to the cost of implementation Employee appreciation party if goal is met Customer Brand awareness Customer feedback (survey from before and after campaigns) Discounts for filling out questionnaire/survey View Hungry Ducks as the food delivery service for students Ratio of students using Hungry Ducks to other people using service Special code for students who use UO webmail to order Discounts for filling out questionnaire after ordering asking if they are UO students Internal Create and implement marketing campaigns for University Students Student brand awareness before and after campaigns (surveys for same pool of students) Add brand value and awareness within campus community Monitor campaign success and make adjustments where/when needed Sales comparison from before implementation and after Increase sales through commission

• pportunities for

salespeople/markters/ on campus reps Amount of new accounts added from beginning of campaign(s) to end Learning Understand amount of current brand awareness Customer feedback (survey) Increase brand awareness with customers and add brand value Find out where Hungry Ducks sits in customer's mental maps Focus groups with consumers- create mental map of company compared to competitors Direct marketing campagin to either improve or remain where customers put Hungry Ducks against competition Research on marketing towards students Focus groups with students, 3rd party research Company wide contest for best marketing idea

Go, Ducks!

Citations

“HungryDucks Looks to Make Impact in Local Food Business.” Eugene Daily News, 7 Mar. 2013, http://eugenedailynews.com/2013/03/hungryducks-looks-to-make- impact-in-local-food-business/. “Online On-Demand Food Delivery Services Market - Growth Analysis and Forecast| Technavio.” William Lyon Homes Announces Agreement to Acquire RSI Communities, a Southern California and Texas Based Homebuilder | Business Wire, 13 Dec. 2017,