⬝ 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
Problems foronline food delivery services Consumers demand speed and ensured quality of food ● Without timely order pickup and delivery... ● Food cools ○ Food quality deteriorates (lost texture, shape, etc.) ○
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 Weaknesses - local, area of wearily populated - Length of delivery time campus. - Low number of employees - app is very functional - Some cars without logo (hard to notice and less - weather conditions in Eugene. exposure) - No contact with person delivering Opportunity SO OW - No sales tax in area - Using local advantage to advertise - Integrating tracking on website and app - App economy jobs are high in local papers, books, campus - At home cooking less popular events - Allowing contact via app. - Students population - Pay more attention on UO - Local ads on campus students. Threats ST WT - Low unemployment rate - Making strong relationships with - Hire more employees to make transportation range - Travel emissions (biggest emitter local restaurants to combat national shorter (less emissions and shorter travel time) of greenhouse gases) delivery services - Adding logos to car to increase the brand exposure - Lots of competing companies that - Using bicycles as transportation to and better compete with bigger companies. are nationally known reduce the travel emission
How can the company stand out to consumers and grow restaurant base to create a sustainable competitive advantage?
Alternative: Student Focus
Marketing Specifically to Students PROS CONS Focus on service High time investment ● ● differentiation Brand awareness may ● Discounts for on-campus ● already be high delivery Discounts for delivery ● from on-campus eateries
Customized UO Services PROS CONS Coordinate with University Requires partioning of ● ● to have food drop-off resources specifically to locations in buildings campus activities Promotional activities Relies on cooperation with ● ● timed with events UO Rapid delivery from on ● campus restaurants
Alternative: App Improvement
Customer-Business Direct Communication PROS CONS Pre-order services Complex to set-up on both ● ● ends Communicate directly with ● restaurant servers Cooks and staff may be ● unwilling to use app Faster order preparation ● ⇒ faster delivery Technical problems would ● need to be resolved locally at each restaurant
Grocery Delivery PROS CONS Expensive/complex program ● Benefits local supermarkets ● Complicates delivery routes Capitalizes on college students ● ● Matches Postmates and Students lack kitchen access ● ● Cascadian Couriers parcel delivery Requires supermarket ● pricing info and service coordination
Order Tracking and Number of Accepted Payment Processors PROS CONS Technical expertise needed Competes with GrubHub and ● ● for GPS or geolocation Postmates Allows for records of Increases expectations of ● ● addresses and planning for delivery drivers more efficient routes Customers react more ● negatively to slow orders Improves customers ● satisfaction
Group Ordering PROS CONS Easily promotable Complex to initiate (app) ● ● ie, order discounts ○ Possible low returns ● Larger business orders ● Extra stress on drivers ● Professionals can spend ● and restaurants w/ and tip more complex orders Marketable as green ● initiative
Alternative: Employment Restructuring
Dedicated Customer Service PROS CONS Drivers focus on just Expensive to train and ● ● delivery maintain Customers more likely to Potential losses from ● ● tip refunds and considerations Attention to customers ● Compete with GrubHub ●
Non-Contract Delivery Drivers PROS CONS Fewer legal problems More costs to company ● ● Salaried/hourly employees ● Training time ● can have stricter work schedules Greater liability ● Better quality control ● Compete with Postmates ●
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 More competition with other ● ● food delivery services Drives more sales, both for ● us and our restaurant Loss of “local” reputation if ● partners expansion is too big Word-of-mouth connections Longer drives + requires ● ● among businesses and more drivers consumers More capital needs ● More local presence could ● push competition away 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 Higher costs of marketing ● ● segment geographically Difficult to measure ● Could cut costs on travel success ● More brand awareness Could make brand image ● ● through community drives worse if unsuccessful sales Introduce new restaurants ● to students
Action Plan Objective Action When/Who Research customers and students awareness with - Create surveys - 2 months/marketing team brand - Distribute to sizeable sample Use research to formulate marketing tactics - Collect and interpret data - 2 weeks/upper management and team - Distribute information throughout company - Generate marketing ideas Company wide competition to see who can make - Create competition with incentives for good - 3 weeks/upper management and team best campaign and implement best ideas Implement chosen campaign - Evaluate current resources and resources needed - 8 weeks/Upper management 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 Monitor campaign success - Monitor amount of deliveries, sales, new users - 6 weeks/marketing team Make adjustments and determine ROI of - Collect data of sales from campaign subtract - 2 weeks/marketing team and financial team campaign investment in marketing and divide by initial investment
Objective Measure Initiative Sales increase Sales comparisons from year before campaigns to year Commissions for marketing of/after team/sales and delivery team Financials Increase ROI Compare revenues from campaign to the cost of Employee appreciation party if goal implementation is met Brand awareness Customer feedback (survey from before and after Discounts for filling out campaigns) questionnaire/survey View Hungry Ducks as the food delivery Ratio of students using Hungry Ducks to other people using Special code for students who use Customer service for students service UO webmail to order Discounts for filling out questionnaire after ordering asking if they are UO students Create and implement marketing Student brand awareness before and after campaigns Add brand value and awareness campaigns for University Students (surveys for same pool of students) within campus community Monitor campaign success and make Sales comparison from before implementation and after Increase sales through commission Internal adjustments where/when needed opportunities for Amount of new accounts added from beginning of salespeople/markters/ on campus campaign(s) to end reps Understand amount of current brand Customer feedback (survey) Increase brand awareness with awareness customers and add brand value Find out where Hungry Ducks sits in Focus groups with consumers- create mental map of Direct marketing campagin to either customer's mental maps company compared to competitors improve or remain where customers Learning 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,
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