Global Marketing (Deliveroo)

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Name: San Htet Aung ID: 2013043

Assignment Title : Marketing analysis for Deliveroo to enter Greek

Student Name : San Htet Aung

Student ID Number : 2013043

Unit Code : MAR034-3

Unit Name : Global Marketing Strategy

Unit Coordinator : Dr.Claudette Kika

Assessment Number and Title : 1- Report

Word Count : 2000 (excluding cover page, content, table and


refereneces)

Submission Date : 6th November 2020

Location : STI Myanmar University

Contents
1 Company discussion.................................................................................................................................3
Name: San Htet Aung ID: 2013043

1.1 Strategy.............................................................................................................................................3
1.2 Value..................................................................................................................................................3
1.3 Technology........................................................................................................................................4
2 Market analysis.........................................................................................................................................4
2.1 Pestle analysis....................................................................................................................................4
2.2 Porter’s five forces.............................................................................................................................6
3 Recommended strategy............................................................................................................................7
3.1 Marketing mix strategy (5P)..............................................................................................................7
3.2 Customer segmentation....................................................................................................................8
4 Conclusion................................................................................................................................................8

1 Company discussion
Name: San Htet Aung ID: 2013043

Deliveroo is an online food delivery company which is founded in 2013 and based in London,
England. It acts like an intermediary between the customer and the takeaway food supply store.
It has so far operated branches in 14 countries including Uk, Hong Kong, Australia, Netherland,
France and Singapore. The company started with the idea of changing the way customers eat.
Customers can search and order local products through the Deliveroo app and website. After the
Deliveroo’s platform system receives the customer’s order, the company will send the nearest
rider and then deliver it to the customer as soon as possible. The Deliveroo’s positioning system
can match the customer’s nearest rider, which greatly improves the company’s delivery
efficiency (Deliveroo,2020).

1.1 Strategy
As a leader of online food delivery industry, Deliveroo continues to innovate and expand
cooperation to give customers convenience delivery services and great choice. Deliveroo used
cooperate and constantly expansion strategy to gain the success in the market. As of 2019,
Deliveroo occupied more than 60,000 drivers and has cooperated with over 80,000 restaurants
which provide more than 100 kinds of cuisines (Deliveroo,2020).

1.2 Value
Deliveroo has always been operating with customers and riders as the center. Whether customers
want Japanese sushi at night, salads at lunch, or fresh milk and cakes at breakfast, the company
can meet all customer needs within the business scope. Deliveroo has always treated riders with
the core, providing them with well-paid, comfortable environment and flexible work. Deliveroo
is proud to work with riders, because the company understands that they hard work can grow up
for the company and know that without the riders Deliveroo will not be able to provide better
foods to their customers. At the same time, Deliveroo is also the first company to require
termination of the trade-off between safety and flexibility in employment law. Always hope to
cooperate with the government of all countries to achieve a win-win common goal. The above
are all Deliveroo’s care for customers and riders (Deliveroo,2020).
Deliveroo has always respected the team and colleagues. Colleagues can bravely point out the
mistakes in the team, because they know that learning from failure can make growth. The
company also supports the failed members of the team, and then respects and learns from each
other to win the most basic trust in the team. Deliveroo tries its best to simplify the order time in
order to help customers save time and energy to maximize (Deliveroo,2020).

1.3 Technology
As a leading food delivery company in the industry, Deliveroo use the British-born technology
‘Frank’ algorithm around the world. This algorithm has a powerful predictive technology that
evaluates and allocates orders based on the location of restaurants, riders and customers to
achieve the highest efficiency. It can also predict the time required for the restaurant to prepare
meals, which helps to make customers more aware of how long their order will take. It can also
simplify the display of delivery orders, which helps Deliveroo can shorten the delivery time by
20%. This allows riders can deliver more orders per hour, which can also lead to increased
restaurant and company sales, which also means that customers can get their favorite food faster
(Deliveroo,2020).
Name: San Htet Aung ID: 2013043

“Deliveroo’s mission is to bring the world's local restaurants into everyone's home or
office”(cleverism,2020). In term of its mission, Deliveroo is looking for opportunities to expand
its business to other European countries. Deliveroo plans to operate various branches in the
global market, and then has been doing preliminary investigations into possible new markets
(Deliveroo,2020).
Greece has also been selected for further market analysis. In the following assignment, I will
think about whether the Greece market should be operated from the perspective of Deliveroo.
Then will analysis the Greece market with effective analysis strategy such as: pestle analysis,
porter’s five forces and SWOT analysis. Learning and research about the current situation,
segmentation plan, target and position, markets and customers of Greece. And also recommend
the marketing strategy marketing mix (5p) in penetrating the Greece market. In the target market
strategy, consider about the Deliveroo should use standardization or differentiation in marketing.
By learning this case study, I can fully learn how Deliveroo implements global marketing plans
in the international market.

2 Market analysis
2.1 Pestle analysis
The next step is to use pestle analysis (Kotler and Armstrong, 2016) to investigate the general
situation in the market. In this assignment, I will use pastel analysis to observe whether the
Greece market is in the good or bad situation. Observe how political, economic, sociocultural,
technological, legal and environmental factors are affecting the Greece market.
Political
Greek politics has been in turmoil in recent years. Greece has a multi-party political system and a
coalition government has been in power since March 2009. With political instability, the
economy also declines(lucintel,2020). There is also the non-government organization
Transparency International has found sufficient evidence of corruption. It was pointed out that
this corrupt move played a “fatal role” in affecting the economic recession. There are also tax
evasion and tens of billions of euros in uncollected tax revenue each year (pestleanalysis,2020).
The above description is all about the unstable politics in the Greece market.
Fortunately, Greece is a member of the Schengen area of the European Union countries, so
residents can travel freely without passports or border controls. Therefore, it can give tourists a
convenient travel experience, thus driving the tourism industry in Greece. The tourism industry
is also one of Greece’s main economic incomes (pestleanalysis,2020).
Economic
Affected by the 2007/2008 global financial crisis, Greece has fallen into a severe economic
recession since 2009. The sudden increase in government debt has led to a decline in the trust of
the Greek people in the government. Most people who tried to invest in the country could only
stop their ideas. Because of the recent economic crisis, the unemployment rate in Greece is 18%,
although this is lower than the peak unemployment rate of 28%. However, Greece still has the
Name: San Htet Aung ID: 2013043

highest unemployment rate in Europe, far higher than Spain’s 14% and Italy’s 11%
unemployment rate (pestleanalysis,2020). The above description is the political factor that
mainly affects Greece.
The growing tourism industry in Greece has been one of the most effective help to the Greece
economy. Greece has not only European travelers, but also travelers who love global travel in
every corner of the world. According to estimates, the tourism industry in Greece accounts for
10% to 20% of all employment in the country, and it also attracts more than 20 million tourists
ever year (pestleanalysis,2020).
Sociocultural
Greece has a richer cultural heritage and inheritance than most European regions, as well as a
variety of cultural foods and ancient history. Because of these factors, many tourists regard
Greece as a fascinating country (pestleanalysis,2020). So there may be many tourists who put
Greece into their dreams or what to travel to the country, which may drive the tourism industry
in Greece.
Technological
After all, Greece is also included in the EU countries, so in additional to economic setbacks,
Greece is still a very developed country. This also means that it has a strong technical
infrastructure and a reliable power network. As such, both citizens and tourists in the country can
rely on the same high level of digital connectivity as in other European countries. So whether it
is a company that needs to use technology to start a business or local citizens can also use this
modern technology to start a business or live (pestleanalysis,2020).
In order to develop industries and markets, Greece is increasing its investments on R&D so
which the current GDP 0.56% is increased to 1% during 2015. It is expected that the main focus
of R&D will be on improving technology to expand the scale of manufacturing and promote
industrial and market growth (cleverism,2020). There are the technological factors about Greece
market.
Legal
First of all, Greece is a democratic country. Greece residents are used to freedom because
democracy is the guarantee of freedom. The relevant laws will not be particularly strict on food.
So there should not be many important legal factors affecting the Greece market.
Environmental
International organization like the European Union have been paying attention to and calling for
strategies related to environmental protection. So it is not surprising that Greece, as a member of
the European Union, has signed many international agreements on environment protection.
These related protective measures can solve many environmental problems, such as air pollution,
ozone layer damage and hazardous waste disposal. In this way, Greece can meet international
expectations for environment policies. In order to gain a positive reputation, Greece is still an
Name: San Htet Aung ID: 2013043

environmentally-conscious country because it shows that its citizens are very helpful and exceed
their own vital interests (pestleanalysis,2020).
These all are about the Greece market situation analysis by pestle analysis.

2.2 Porter’s five forces


Next, I will use the Porter’s five forces (Kotler and Armstrong, 2016) to briefly describe about
the Greece market and Deliveroo.
Bargaining power of buyers: High
In this era of prevalent online shopping, many restaurants and beverage shops can already
provide delivery services. There are even more restaurants in the market that can enjoy free
delivery service within the specified range. What’s more, in this Covid-19 period, customers can
also choose many restaurants or beverage shops that are offering discounts. The competition in
the market is extremely fierce, so the bargaining power of buyers is high.
Bargaining power of suppliers: Low
As described above in this assignment, Deliveroo has been able to succeed in the market with
continue expansion strategy. Since then Deliveroo has opened branches in 14 countries, so
suppliers in the Greek market should be looking forward to working together for a win-win
situation.
Threat of new entrants: High
Judging from the above description, the Greek government has always wanted to increased
domestic income, so there should not be many obstacles in terms of national policies. Therefore,
there should be many food delivery companies that also want to invest in the Greece market.
Threat of substitutes: High
In this highly competitive industrial era, many companies try to use many methods to market
their products. For example, in supermarkets, restaurant foods and fast foods may be replaced by
products like instant noodles, compressed and packaged foods that require heating (meat) and
canned meat. Then the drinks can be replaced by bottled and canned soda, milk, lemonade and
various packaged beverages.
Rivalry among existing competitors: High
Deliveroo has been successful in the international delivery industry, so Deliveroo can play the
role of a predecessor in the Greece market. Because Deliveroo has excellent calculation of
delivery positioning and order preparation time, and then presented it on their websites and
platform in a simplified way.
Subscribed above is using the porter five forces analyze about the Greek market and Deliveroo,
then combine with own ideas and briefly describe them. So by using the pestle and porter five
forces analysis I have been able to analyze and understand about the general situation of the
Greece market and Deliveroo in depth. So I feel there is no need to analyze again with SWOT
analysis.
Name: San Htet Aung ID: 2013043

3 Recommended strategy
By understanding this case study, the situation of the Greece market is really friendly to those
who want to invest the food delivery company in business. So based on a combination of various
factors, I feel that the Deliveroo should formally invest in the Greece market. Deliveroo should
greatly use the marketing mix strategy (5P) to win the market and consolidate its position when
entering the Greece market.

3.1 Marketing mix strategy (5P)


Product
Although Deliveroo does not produce its own products, it must require its partners to maintain
high quality. Simply put, at least it must be clean and hygienic. From the perspective of
Deliveroo, it can also be upgraded on the wrapping paper to be simple and beautiful, which can
give customers a convenient usage experience. In the product line Deliveroo should mainly
cooperate with suppliers who are responsible for attracting young consumers.
Price
Try to minimize the cost to achieve the lowest price, but the product quality must be maintained
at the highest point. So that customers can buy the ideal food at the lowest price, because
Deliveroo hopes to serve people with middle income. However, all kinds of prices should
available on the website and app menu because it is necessary to cater to all customers with
consumer desires.
Place
Deliveroo should try to cooperate with restaurants operating in the city center or traffic routes
without obstacles. At the very least, the rider must be able to deliver the express delivery to the
customer efficiently.
Promotion
During the opening period or on special days, more activities should be held to promote sales.
Especially in this COVID-19 period, many restaurants only accept online orders. At this time,
Deliveroo can do more activities to drive sales.
People
Deliveroo has always cared about many issues from the perspective of a rider. The company has
always understood that rider is the core of the company’s operations. The company has always
been proud to give riders a high salary as an encouragement to cooperate (Deliveroo,2020).

Deliveroo should understand and differentiate its customers. Distinguish customers in the form
of customer segmentation.
Name: San Htet Aung ID: 2013043

3.2 Customer segmentation


Deliveroo has a multifaceted business model and needs to communicate and serve these two
customer groups. Consumers that Deliveroo needs to serve are those who want high-quality
restaurant food at home or at work. Deliveroo needs to cooperate with food service
establishments that do not provide delivery services but need more customers (cleverism,2020).

4 Conclusion
If Deliveroo want to penetrate into the Greece market, the company should have a clear
marketing plan prepared. In my opinion, Deliveroo should use both standardized and
differentiated global marketing strategy. Standardized marketing strategy marketing strategy is
used during the normal listing period. However, differentiated marketing strategy is
recommended when company wants to innovate or make new attempts (for instant, cooperate
with supermarket). Especially in this COVID-19 period, new attempts can be piloted to win new
markets.
“Deliveroo restarted its “Support the NHS” campaign this year and made a new commitment to
provide hundreds of thousands of free hot meals to NHS frontline employees in areas most
affected by Covid-19 and the increase in hospital admissions”(Deliveroo,2020). So, I totally give
the respect from my mind to the Deliveroo can do these great things.
Finally In this assignment, it is roughly analyze the Deliveroo and Greece market with various
strategy and market analysis.

Reference lists
https://uk.deliveroo.news/news/deliveroo-nhs-free-meals-november.html
Name: San Htet Aung ID: 2013043

https://deliveroo.co.uk/about-us
https://deliveroo.co.uk/assets/documents/about-us/values-en.pdf
https://www.cleverism.com/company/deliveroo/
https://www.lucintel.com/pestle-of-greece-2013.aspx
https://pestleanalysis.com/pestle-analysis-of-greece/
Kotler, P. and Armstrong, G. (2016) Principle of Marketing. 6th edn. USA: Pearson.

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