How food panda targets their customers PDF

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Summary

A brief study in Food panda. To determine how food panda examine their customers' demands and needs. The ways food panda becomes a strong competitor in food delivery services....

Description

FOOD PANDA Food Panda is a multinational online food delivering company that founded by Ralf Wenzel and Benjamin Bauer in 2012. Food Panda headquarter is in Berlin, Germany. Food Panda has expanded its business across the global in Asia, Europe, Africa, Latin America and the Middle East countries. Bhasin (2019) stated that Food Panda has partnered with more than 27,000 restaurants in 193 cities and has around 15,733 riders to deal with its business. However, the company was taken over by Delivery Hero in 2016. Delivery Hero is a big company that contains multiple international brand such as Food Panda (Asia, Eastern Europe), Foodora (Australia, Europe and Canada), Hello Food (Middle East) and Delivery Club in Russia. How can a customer orders food from Food Panda is by entering their postcodes on the website and they can search for food they want in a list of available restaurants that shown on the website. Once the order is made, the customer just need to enter their address and proceed to checkout. After a while, the ordered food will be sent to the specific customer. It is convenience for some people since the creation of Food Panda as there is no need to go out for buying food. So, let us proceed to further details of Food Panda’s strengths and weaknesses. Every company has its own strengths and weaknesses and so does Food Panda. The following are the strengths and weaknesses of Food Panda: Strengths 

Convenience

As mentioned, Food Panda has created conveniences to people specifically for those who always lazy to cook or buy food from outside. Food Panda handles different kind of orders for customers and directly send them to the partner restaurants. Once the order is processed, it will deliver to customers by Food Panda rider. The service is available both websites and mobile applications, where the customers can order food by just a few clicks. 

Investments

According to Bhasin, he stated that Food Panda has a lot of investment and it has raised a venture capital of $318 million. Throughout the initial funding from Rocket Internet and Investment AB Kinnevik (both are platforms where it helps to build entrepreneurs), Food

Panda has raised about $20 million. It also received hundreds of million dollars of investment from different companies such as iMENA Holdings and Goldman Sachs. By having huge funds, it could benefit the company by enhancing the company’s quality or make more profit using that funds. 

International Brands

Since Food Panda operates its business in several countries (Asia, Europe and etc), this could help to strengthen their reputation as an international brand, thanks to its success in the global market. Besides, Food Panda has been taken over by Delivery Hero. Therefore, it has a major company behind itself to support it no matter funding, promotion or reputation. 

Quick Delivery

Food Panda has always emphasized on quick delivery service as it tries to sync its customers to the nearby restaurants. For example, if a customer is living in a housing area in Cheras, Food Panda will list out restaurants that near to the specific housing area instead of listing out all the restaurants in Cheras to ensure its customer could get the order as soon as possible. Furthermore, it also trains the riders for making their delivery faster by allow riders to be familiar with the area name for a long time, so as to avoid the food cooling and the inability to deliver food to customers on a regular basis because they are not familiar with the area. 

Wide Coverage

One of the benefits is Food Panda has a wide coverage for the list of restaurants. The company has offered different kind of food (local and foreign) food and it fits the vast customer requirements and food preferences. On the other hand, Food Panda also launched new category which is called Panda Mart. The company partnered with several companies such as Shell and Alpro Pharmacy for customers not only to buy food but also enabling customers to buy other items like snacks, tib bits or medicine by using delivery services too. 

Good Customer Support

Another hand, Food Panda has outstanding customer service and works for their requirement and food preferences. The company keeps updating food menus and seek to extend the connection with restaurants.

Weaknesses 

Limited restaurant to place order

Aforementioned, customers can only order food from restaurants that are nearby to their living place. Therefore, orders are only available from restaurants that are in the zone of the order placed. This is a weak point as all the restaurants will not be available at all places. 

Limited Growth

Since food delivery business is still a trend in the market or in Malaysia, it has many competitors with similar services so Food Panda growth is limited. For example, there are several food deliveries companies in Malaysia such as Grab Food, Dah Makan, Honest Bee, Deliver Eat and etc. They all have been using similar marketing methods like voucher redeem, fast delivery or offering varieties of food. Therefore, it is quite hard for Food Panda to become outstanding in this industry. Strengths and Weaknesses of Food Panda services As a food delivery company, it is difficult to achieve customer’s satisfaction due to many reasons and unpredictable circumstances. Based on users’ experiences, there are numerous comments regarding Food Panda’s products and services. Therefore, here are some pros and cons of Food Panda services by users’ experiences from Vulcan Post and Reddit website. First and foremost, the delivery time is really a matter. For some users, they have stated that Food Panda delivery is on time and never been late so far. In contrary, there are also some users stating that the delivery service of Food Panda is bad since riders are always late. According to Justin Lee, a user that posted his experiences of food delivering service on Vulcan Post website, he stated that the delivery service of Food Panda was extremely late. Usually food deliveries in Klang Valley take 45 minutes to process but there was a time Food Panda took around one and a half hour for the food to arrive, Justin added. Besides, another user on Reddit website also posted a comment stating that about 90% of Food Panda delivery is late, based on his personal experience. In contrast, there are also some users said that Food Panda is punctual and they did not experience any late delivery for them.

In my opinion, there is no exact answer for this issue as it might cause by the living area of the customer. For example, logically, customer would have experienced a faster delivery time in Sepang compared to KL area since the traffic in Sepang is not as congested as in KL. On the other hand, some users stated that users also been sharing that if the food is late, they need to call Food Panda customer line to cancel their order. However, for Grab Food, user can straight away call the rider to cancel the food so it is more convenience compared with Food Panda. On the other hand, the differences in the quantity of promotions especially vouchers redemption between Food Panda and Grab Food. According to Justin Lee, he stated that Grab Food is more frequent to give vouchers than Food Panda, so he is more courage not to use Food Panda. Another user posted on Reddit stated that Grab Food offers a lot of vouchers and points to its monthly subscriber, however Food Panda did not. According to EC Insider, since the acquisition and rebrand, the company has announced a strikingly different marketing strategy which is fewer voucher codes and more customer interactions. Therefore, lack of promotions is one of the cons of Food Panda. There is also good point for Food Panda as it has more partnership with restaurants. Justin Lee stated on Vulcan Post saying that Food Panda has more than enough merchants to choose and some users on Reddit also said that Food Panda has more choices of restaurants to choose. Lastly, Food Panda orders can be made either on website or mobile application whereas Grab Food can only use on application which is not so convenience compared to Food Panda. Users’ comments on Food Panda

Market segmentation of Food Panda Market segmentation is the process of dividing a target market into smaller or more specific categories. It segments customers into groups that share mutual characteristics such as demographic, interests, needs or location (Yesbeck, n.d.). It also helps a business get to know your customers, identify what is needed in your market segment and determine how you can best meet those needs with your product or service. A company usually segmented its

market based on four market segmentation (Demographic, Psychographic, Behavioural and Geographic).

Demographic Segmentation Demographic segmentation is one of the most commonly used types of market segmentation which include age, gender, income, location, race and etc. By the changing of market demographic trends, eating patterns along with busy schedules, information technology advancement and the availability of labour force have generated supply and demand, and opportunities in the food supply industry in near future. Food Panda takes every customer as target and potential who is lazy too cook and buying food outside. In term of age, the most potential customers of Food Panda are around 25 to 55 years old. This range of customers are more likely to use Food Panda because we assumed that they are mostly employees of companies and also more likely to use mobile application. Employees usually lazy to go out to eat because they need to suffer from traffic congested during lunch time and they need to find parking outside. Besides that, there are varieties of food on Food Panda that allow customers to choose. Employees also can share the delivery fees with other colleagues so it is very cheap to use the service compared with driving to outside which is more costly. Due to busy schedule and limited time, Food Panda might in high demand as those employees are wish to dine food within office or working place and yet want the quality of restaurant’s meals. In term of gender, Food Panda targeting is not based on gender as both genders are likely to use Food Panda. For the income segmentation, the company is targeting for high and moderate income of people (probably RM2000 to RM5000) because Food Panda food prices are a bit higher compared to normal restaurants prices. This is because the restaurants will increase the price on Food Panda as they need to pay commission to the company. Besides, there is also delivery fee for using Food Panda. Therefore, Food Panda is aiming higher salary people so that there is demand for their services. Food Panda is likely to aim its business in urban areas such as KL, Cheras, PJ and etc. This is due to the lifestyle of urban areas are busier and more congested, so people would choose food delivery for their own convenience. As mentioned, they are targeting for higher income salary customers, so customers in urban areas is likely to earn more than people

living in rural areas. Furthermore, the population of the urban areas are larger than populations in rural areas, therefore, the demand would be higher. Lastly, Food Panda is targeting customers from different races as it has categorized its menu in halal and non-halal, vege and non-vege as well. So, every customer from different race is suitable for the services. Psychographic Segmentation Psychographic segmentation categorizes audiences and customers by factors that relate to their personalities and characteristics which include social class and lifestyle. Food Panda is believed to target customers that adopted convenience lifestyle. Since people is looking forward for conveniences, they will be lazy to buy ingredients, cook and clean up the mess. Therefore, by choosing food delivery services like Food Panda will help this group of people in solving their meals problem. People that using Food Panda is assumed to not likely care much about the prices as they care more on conveniences. In addition, Food Panda also targeted those employees that having busy working schedule as they did not have sufficient time to eat outside. In term of social class, Food Panda is targeting working class, upper class and upper middle class. As mentioned, working class usually don’t have time to eat outside, so food delivery services are essential and convenience for them. Besides, they also target upper and middle class since the food prices are a bit higher and have delivery fee for every order. Geographic Segmentation Geographic segmentation can refer to a defined geographic boundary or type of area.

Under

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(Domestic/International) and density (Urban/Rural). Basically, Food Panda operates its business internationally and domestically. The company concerns its business more on urban areas (KL, Puchong, Seremban, Malacca) as the demands are higher since the living standard is high too. Food Panda also aim for its secondary customers from mid-urban areas (Sepang, Nilai, Bangi) as there will also have customers from those mid-urban areas. Behavioural segmentation Flatt (2017) stated that behavioural segmentation is a form of market segmentation that groups consumers based on specific behavioural patterns they display when making purchasing decisions.

Food Panda is targeting customers that with high purchasing habits because only customers with high purchasing habits can help to sustain its business and also pay for riders’ monthly income. The company also aim for high spending habits customers because the prices are a bit high, therefore they are aiming for upper- or middle-class income people. Lastly, Food Panda also aiming customers that have high brand interactions. Food Panda is seeking for active users to rate and comment their services so that the company can establish a more reliable and credible reputation in this industry. Personas of targeted customers Persona 1: Olivia Occupation: Office worker Income: RM2800 Working Area: Petaling Jaya Age: 27 years old Lifestyle: - Convenience - Busy working schedule - Lazy to go out - Love to watch Netflix - Rely on mobile applications Challenges: - Insufficient time to buy food outside due to high traffic during lunch time - No transportation - Busy on works Persona 2: Kyle Occupation: Chief Executive Officer (CEO) Income: RM12000 Working Area: Bangsar South Age: 42 years old

Lifestyle: - Busy working schedule - Concern on hygienic lifestyle - Relax during free time - Stressed on convenience more than economical value Challenges: - Restaurants hygiene and bad ventilation may cause Kyle not to visit - Busy with work such as meeting - Congested traffic in urban area.

Scenario- based Design Olivia is a 27 years old office worker who works at Prudential Insurance company in Petaling Jaya. Her monthly income is RM2800. Everyday, Olivia travels to work by public transportation because she still does not own a car. During working day, she usually eats at company’s canteen but she gets bored of the food there sometimes. So, Olivia tries to go out to eat but it could not last long as it is inconvenience and insufficient time for her to take public transportation to the restaurant location. Therefore, she prefers food delivery as she can orders varieties of food every time and there is no need for her to go outside. Lastly, she also enjoys watching Netflix and eating at the same time.

Customer Journey- Online Value Proposition (OVP) Ascend - Upsell for fulfil discount code. -Upsell discount for delivery fee.

1) Rate the app to gain more points. 2) Share app to friends to gain member’s point.

- More voucher redeems.

Advocate - Olivia who successfully used the delivery services gives a testimonial/ comment/ review.

1) Voucher redeems. 2) Cash rebate for next purchase. 3) Good delivery services.

Promote - Olivia who successfully used the delivery services tells friends about Food Panda. Become referral.

- More cash rebate.

Excite

1) Collect points for using the services. 2) Remind next order voucher discount.

benefits.

- Olivia feels satisfied and convenience with the delivery services of Food Panda.

2) Mysterious gifts for next purchase.

Aware Personal Experience: Use Food Panda for few times before during working day.

1) Next purchase

- Olivia gains value.

3) Promotional redemptions.

Convert - Make an order. - Use the voucher for discount. - Cash rebate for next purchase.

(customer oriented). 2) Need varieties of food to choose for meal.

2) Coupon/ voucher for food discount, delivery fee discount. Subscribe

Engage 1) Solving problems

1) Enjoy member’s privileges.

- Search interesting menu and restaurant. - Search for different kind of cuisines.

1) Log in to make an order. 2) Display and advertise latest promotions.

- Already a member. - Log in as member.



Aware

Olivia had used Food Panda services previously but she stopped to use it for a while because she eats in her company’s canteen. Recently, she gets bored to the canteen’s food so she uses Food Panda services again. Since she emphasizes on convenience and lazy to go out, Food Panda is an ideal choice for her to buy her meal. Food Panda marketer delivers problem-solving service based on the customer’s needs. The company provides a list of restaurants range from different types of cuisines to Olivia on Food Panda application or website for her to place an order. 

Engage

Olivia searches on the mobile application or website that raises her interest as well as fulfil her appetite. Therefore, Olivia searches the best restaurant and cuisine for herself. Food Panda marketer provides member benefits and new member discount to attract Olivia to join membership. Since Olivia already is a member, Food Panda marketer advertise the latest promotions by using the pop-up effect to attract Olivia to use its services. 

Subscribe

Olivia logged in into her account to proceed to further steps. Food Panda provides member privileges, voucher discount for current order or cash rebate for next purchase to boost Olivia’s buying decision. Moreover, discount on delivery fee is also leading Olivia to continue her purchase. 

Convert

After that, Olivia makes an order and proceed to payment options. At the same time, Olivia also uses the voucher discount for current order to enjoy the promotion. After the payment, she also received the cash rebate for the next purchase. Food Panda marketer also aims for Olivia to continue to use their services so the company advertise the promotions (cash rebate, voucher redeems, mysterious gifts) for next purchase to maintain Olivia’s brand loyalty. Since Olivia trusts and chooses to use Food Panda services, therefore the company gives Olivia promotions in return as a value-adding tactic.



Excite

Olivia remembers the company and brand after the use of food delivery services with extra values. The services make her purchase experience enjoyable which may lead to Olivia second-time purchase. Food Panda marketer gives Olivia membership points for using the its company’s services and remind her of the next purchase through mobile app, website, social or direct email. The collection of membership points might also lead to Olivia to make a second-time purchase on Food Panda. 

Ascent

Olivia is looking for food delivery services and is interested using Food Panda again. She considers the member’s privileges, discount value and delivery fee. On...