AMB359

AMB359
Strategic Marketing

Due Date: 13th October 2016

Word Count: 2132

Amanda Szallasi n8876436

Elsa Johnson n8771251
Kelsey Rea n8860131
Vincent Roche n8610622
Zachariah Miller n8325693

STRATEGIC MARKETING REPORT

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Executive Summary  
 
This marketing plan focuses on the business decisions of UberEATS and
demonstrates the suitability to target high-end consumers in the 25-44 age
bracket. Corporate climbers and busy families living in the inner-suburbs are
identified as our targeted audience, based on the segments’ size, profitability
and accessibility. UberEATS’ direct competitors all receive considerable
financial backing. This allows them to strongly position themselves in an
Australian market which has seen recent growth, thanks largely to innovative
technology. However, this will not deter UberEATS, as proven success in
other major Australian cities indicates that the food delivery submarket is a
healthy industry.

However, there are strategic uncertainties to consider, mainly the wealth of

competition that the pick-up and delivery service industries possess. This will
require UberEATS to frequently assess their market position, and adapt to
market changes with innovative strategies. Customers already associate Uber
with superior value over competitors, through brand familiarity, accessibility
and reliability. In order to maintain this value and appeal to wider audiences,
UberEATS needs to consider current consumer trends, such as a healthy
lifestyle and social/environmental responsibility. With these factors in mind,
this plan highlights the proposed implementation of 3 objectives, which will
energise and differentiate the brand, and reward customer loyalty.

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Table of Contents

Executive Summary........................................................................................2

1.0 Analysis ..................................................................................................4

1.1 External and Customer Analysis ................................................................. 4
1.1.1 External Analysis ..................................................................................... 4
1.1.2 Customer Analysis ................................................................................... 5
1.1.3 Segmentation Targeting and Positioning ................................................. 7
1.2 Competitor Analysis ..................................................................................... 9
1.3 Market/Submarket Analysis ....................................................................... 12
1.4 Environmental Analysis and Strategic Uncertainty ................................ 14
1.4.1 Environmental Analysis ......................................................................... 14
1.4.2 Strategic Uncertainty ............................................................................. 15
1.5 Strategic Objectives ................................................................................... 16

2.0 Execution Strategy...............................................................................18

2.1 Value Proposition ....................................................................................... 18
2.2 Energizing and Leveraging the Business ................................................ 19
2.2.1 Brand Differentiation ................................................................................. 19
2.2.2 Loyalty Program ..................................................................................... 20
2.2.3 Brand Energizer ..................................................................................... 20
2.3 Budget ......................................................................................................... 22

3.0 Conclusion............................................................................................24

4.0 Reference List ......................................................................................25

5.0 Appendix ...............................................................................................28

5.1 Appendix 1: Uber Users: Age Breakdown ................................................ 28
5.2 Appendix 2: Helix Personas - Roy Morgan .............................................. 29
5.3 Appendix 3: Survey Results ...................................................................... 30
 

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1.0 Analysis

1.1 External and Customer Analysis

1.1.1 External Analysis

The opportunity to target Brisbane’s high-end consumer is available for

UberEATS, as many competitors offer lesser quality food to the middle market
consumer. Table 1 identifies the strengths, weaknesses, opportunities and
threats for UberEATS.

Table 1: SWOT Analysis

Strengths Weaknesses

- Availability of Uber drivers ready for - Only way of ordering is through an App
delivery at any moment - research shows older demographics
- Well known reputable brand are not as technologically savvy as the
- Uber has recently been legalised younger generations (Roy Morgan,
(Uber, 2016) 2016)

Opportunities Threats

- Target the high-end consumer who - Price sensitive market

wants delivery from Brisbane’s finest - High-end restaurants may want to stay
restaurants exclusive to give consumers a unique
- Target central brisbane area brand experience (Payne & Frow,
- Utilise their availability of uber drivers 2005, p.167-176)
for their deliveries

UberEATS surpasses their competitors with their extensive availability of Uber

drivers ready for delivery at any moment. This point of difference guarantees
the success of UberEATS in the future, since their competitors physically
cannot serve the greater masses. However, the limitation of the UberEATS
App excludes the older demographics whom tend to be less technologically-
savvy than their younger generations (Roy Morgan, 2016).

There is currently the opportunity to target the high-end consumer who wants
delivery from Brisbane’s finest restaurants. However as the market is price
sensitive, UberEATS must consider a strategy for maintaining price parity as
competitors aim to deliver better prices in the long term (Magner, 2016b).

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Therefore, UberEATS must charge a maximum flat delivery fee of $5 and no

minimum order quantity to stay competitive (Deliveroo, 2016; Menulog, 2016;
Foodora, 2016; Eat Now, 2016). Furthermore, ‘surge pricing’ should not be
used in this model to ensure customers are not disadvantaged by public
holidays and peak times (Hall, Kendrick & Nosko, 2015).

UberEATS also faces the risk that high-end restaurants may want to stay
exclusive to give their consumers the physical restaurant experience and
service quality (Payne & Frow, 2005). By working with these restaurants,
UberEATS can propose ways of ensuring unique brand experience and
quality service to ensure customers are satisfied with their meal.

1.1.2 Customer Analysis

Due to the centralisation of restaurants within metropolitan areas, it is most
efficient for UberEATS to target consumers residing in Brisbane’s inner
suburbs. A breakdown of target areas, and their distance from the CBD are
shown below:

Table 2: Regions & Distance from Brisbane CBD

Region Distance from CBD

Brisbane Inner 0 km

Brisbane Inner - East 7 km

Brisbane Inner - North 7km

Brisbane Inner - West 4 km

Carindale 8.5 km

Holland Park - Yeronga 5.6 km

 
Sherwood-Indooroopilly 6.3 km Figure 1: Target Regions - Brisbane Market  

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In order to evaluate the regions outlined in Table 2, a Queensland

Government Custom Region Report was generated based on current census
data (Queensland Government Statistician's Office, 2016). Findings are
shown below:

Table 3: Brisbane Market Analysis - Custom Region

Brisbane Market Analysis

- Custom Region

Population (All regions) 432,917

(1.7% growth rate)

(Inner Brisbane) 67,155

(2.3% growth rate)

Most Populated Regions Brisbane Inner - North, Holland Park - Yeronga, Brisbane Inner.

Age Breakdown 15-24 : 16.9%

25-44 : 37%

45-64 : 21.2%

Median Age 32.9 years

Population Projection 1.4% increase pa.

Household Make-up One family household : 59%

Group households : 11.3%

Lone person household : 29%

Internet Connection 84.7%

Income (Median Individual) $41,196

(Median Family) $114,777

Occupation Professionals & Managers: 49.4%

Clerical & Admin: 15%

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Inner Brisbane regions within 8km of the CBD present a desirable consumer
market for UberEATS (see Table 3). With an already connected population of
430,000, these regions offer a large consumer base of one-family (59%) and
lone-person households (29%). There is a large demographic of consumers
aged 25-44 (37%), a market that closely aligns with Australia's current Uber
user base (see Appendix 1) (Roy Morgan, 2016). The median family income
was $114,777 (medium-high bracket) - suggesting a propensity for high
calibre restaurants (Daymark Community Monitor, 2011). Furthermore, 64.4%
of employees work within professional, administration, and managerial roles,
presenting an opportunity for UberEATS to target corporate environments.

1.1.3 Segmentation Targeting and Positioning

Based on the Brisbane market analysis, in conjunction with Roy Morgan’s
Helix Personas (see Appendix 2), several consumer segments were
identified:

Table 4: Consumer Segmentation and Profiling

Segment Helix Persona Consumer Profile

Corporate Climbers 200-Metrotechs These young adults, aged 23-34 are mostly single
and reside within the Inner suburbs of Brisbane.
Career-driven and time-poor, this group often
does not have time for a lunch break - often
eating at their desk of grabbing something quick
from a nearby food place. Cooking is not a priority
and they often eat out with friends and colleagues
- a habit made possible by their very high
household incomes ($111,000).

Hardcore Foodies 208-Cultural Food and food trends are paramount to this
Pioneers group. They are the first to try new restaurants
and love boasting about their food knowledge to
friends and family. Aged 25-40 this group reside
in the Inner and fringe suburbs of Brisbane. They
have an average household income of $85,000-
$103,000. In their spare time, Hardcore Foodies
like to attend restaurants, nightclubs, and art
galleries.

 
 
 
 

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Table 4 Cont.: Consumer Segmentation and Profiling

Busy Families 404-Family First This group resides on the fringe of Brisbane’s
Inner suburbs (Sherwood-Indooroopilly). With two
full-time working parents, these suburban families
are incredibly busy and often purchase take-out 1-
2 times a week. This group is well-educated with
an average family income ($102,000), and are
moderately health-conscious.

Sharehouse Students 507-Making the Residing in the inner Brisbane suburbs (ie. St
Rent Lucia), this group live in shared housing with 2-4
other roommates, and are aged 18-24. Cooking is
not high on the agenda, and this group often
skimp on groceries in order to make rent.
Takeaway and microwave meals are favourites
and their mantra is ‘the less effort the better’.They
have a low household income of $67,000, and are
always on the hunt for a bargain.

Based on this consumer segmentation analysis, it is necessary to assess

each segment on size, profitability, and accessibility; to identify the most
desirable target market for UberEATS.

Table 5: Consumer Segmentation Evaluation

Size Profitability Accessibility Total

Corporate 4 5 5 14
Climbers

Hardcore Foodies 3 3 4 10

Busy Families 5 4 3 12

Sharehouse 2 2 2 6
Students

Based on Table 5, it is recommended that UberEATS target the ‘corporate

climbers’ and ‘busy families’ segments.

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1.2 Competitor Analysis

The Courier Pick-up and Delivery Services industry manifests low market
share concentration with the four leaders controlling below 40% of food
courier industry revenue. With the industry being dominated by small
businesses, this has consequently led to a market which does not hold
constraints for new competitors (Magner, 2016b).

Figure 1: Positioning Map for UberEats Competitors: Price vs. Food Quality

Direct competitors are identified as Deliveroo, Menulog, Foodora and Delivery

Hero. These companies each hold large market shares due to substantial
financial backing or control large global market share in food delivery
(Chessell, 2016; Harkness, 2016; Steen, 2016). With such financial input into
these competitors, they have achieved a strong position in the Australian
market. The food delivery market has grown drastically in the last five years,
with three of the market leaders entering in that time.

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Indirect competitors include Youfoodz and Lite n’ Easy. These minor

competitors have not been able to gain the industry market share that the
market leaders hold. Youfoodz have positioned themselves to specialise in
the delivery of fresh, healthy, easy-to-prepare meals that can be stored for up
to nine days. Lite n’ Easy similarly focuses on dietary plans, providing meals
to assist in weight loss.

Table 6: Competitor Analysis

Competitors Menulog Foodora Delivery Hero Deliveroo

Has 7,000 restaurants Has 700 restaurants Market leader in food Has been in Australian
in catalogue throughout Bris, Melb delivery globally. Has market in just under a
Size, Growth and

throughout major and Syd. Growth over 4,000 restaurants in year, however, is the
Profitability

Australian cities. previous year has catalogue across fastest growing deliver
Longest serving and been very strong. major Australian service. Has 600
biggest food delivery cities. restaurants in
advertising model in catalogue.
Australia. Annual
revenue = 23.46 mil
(Chessell, 2016).
Cost Structure

Cost of meal and an Cost of meal and an Delivery charge and Cost of meal and an
additional delivery additional delivery fee minimum spend additional delivery fee
charge. Minimum of $5 varies depending on of $5
spend will vary restaurant and
depending on location location.
and restaurant.

Positioned as the “A true partner to the Positioned as a Positioned a

Positioning

leader of the restaurants, we are not global giant in food dominating a niche
Image and

Australian food courier just a transactional delivery. high-end market,

service industry platform. We are having exclusive ties
(Steen, 2016). committed to growing with nicer restaurants.
their business.”
(Harkness, 2016).

To span delivery To achieve primarily To span delivery To retain the exclusive

capabilities as widely growth followed by capabilities as widely niche restaurant
as possible across sustainability. as possible across market, and maintain
Objectives and
Commitment

major Australian cities. Committed to adopting major Australian the position of leading
Committed to advanced cities. Committed to the niche restaurant
providing the largest technologies with providing the largest delivery service.
array of food options. financial backing of array of food options. Committed to
Delivery Hero, which providing a healthier
aim to improve driver and better quality food.
tracking (Harkness,
2016).

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Table 6 cont.: Competitor Analysis

Offers a blog with Aim to make the Act as an online An end-to-end delivery
content such as ‘top service a smooth and advertising & service that aim to
10 must have dishes’ easy process where business model for “expand your customer
to appeal to foodies. customers can have restaurants. For base without having to
Release EDM’s that their favourite promotion and sale expand the size of
offer chance to restaurant dishes of restaurant food, your dining room. Let
Current and Past Strategies

subscribe to brought to them. they receive a us handle the

newsletter. Host percentage from the complexity so you
annual competitions to restaurant takings don't have to.”
boost loyalty and (Steen, 2016).
create Menulog
community. Continuously monitor
competitor progress Largely social media
Act as an online in order to compete based marketing
Utilise billboard strategy. They
advertising and with sudden
campaigns, in- leverage email to offer
business model for changes. Utilise
restaurant access to best deals
restaurants. For analytics tools to
communications, flyers for their [Link]
promotion and sale of respond to these
and direct mailing. call-to-action’s for
restaurant food, they changes effectively
receive a percentage and maintain online competitions.
from the restaurant competitive
takings (Steen, 2016). advantage.

S: Boast the largest S: Recently purchased S: Tremendous S: Control the market

menu selection with by Delivery Hero – financial backing share for top-end
Strengths and
Weaknesses

the most locations in now have tremendous from Germany. restaurants for
Australia. financial backing. Second largest customers looking for
market share in a higher quality
W: Market share small Australia. product.
in comparison to
W: N/a leaders. W: N/a W: Smallest overall
market share of the
competitors
Lifespan

Launched in Aus Launched in Aus Founded in Germany Founded in London

2006. 2015. in 2011. Launched in 2013. Launched in
Aus September Aus early 2016.
2011.

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1.3 Market/Submarket Analysis

UberEATS is entering the restaurant industry as an intermediary food courier

between restaurants and customers. After launching in Melbourne, UberEATS
has demonstrated the possibility to make up 60-80% of restaurant’s orders a
night (Kohler, 2016). The restaurant industry has grown by 6.3% annually and
is projected to continue growing in the next five years (Magner, 2016a).
Customers are busier with less leisure time and more discretionary income.
Restaurants offer customers a chance to save time on meal preparation.
Australian consumers are considering health in all aspects of food
consumption (Business Wire, 2011). Consumers are focusing on quality, and
are willing to pay a premium price for high quality and healthy meals (Magner,
2016a).

UberEATS is entering a promising submarket in Brisbane; the food delivery

market. Using Porter’s Five-Factor Model of Market Profitability (see Figure
2), to profile the industry’s profitability and attractiveness depending on
competition amongst existing firms, threat of substitute products, bargaining
power of consumers, bargaining power of suppliers and threat of potential
entrants (Walker, et al., 2015).

Figure 2: Porter’s Five-Factor Model of Market Profitability

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Table 7: Porter’s Five Factor Model of Profitability

- Companies such as Deliveroo, Foodora, Menulog and Delivery

Competition Hero exist as direct competitors
among existing
firms

- The opportunity for consumers to indulge in ready-made

Threat of delivered meals is ever present; companies such as Lite ‘n Easy
substitute present a threat to UberEATS as consumers are likely to favour
products the less expensive option in the long-run

- Consumers hold a lot of the power in this market and are likely
Bargaining power to choose less expensive options if the market permits
of consumers

- The main suppliers for UberEATS are restaurants, the

Bargaining power bargaining power they have is to be part of UberEATS meal
of suppliers offerings to its customers. Without restaurants on board
UberEATS would have little differentiation in the market.

- There is currently no overriding threat of potential entrants as

Threat of potential UberEATS maintains their unique point of different of a large
entrants network of available drivers
- Major firms entering the market must maintain an innovative
strategy in order to compete with UberEATS

Demand for online shopping has increased exponentially and has in turn,
raised demand for courier businesses (Magner, 2016b). The growing desire
for personalisation, convenience and preference to managing more online
have led to the emergence of “Food Delivery 2.0” and opening the market to
third-party services such as UberEATS (AFN, 2016). As UberEATS is a
delivery service, there is a concern that this niche market loses a restaurant’s
branding by using an independent contractor to deliver meals (Kohler, 2016).

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1.4 Environmental Analysis and Strategic Uncertainty

1.4.1 Environmental Analysis

While many restaurants offer delivery, external food delivery companies such
as UberEATS are providing consumers with the value of choice (McCauley,
2016). The table below identifies the PESTLE analysis for UberEATS.

Table 8: PESTLE Analysis for UberEats

Political - Political campaigns against the taxi lobby (Kosoff, 2015)

Economic - Growth in experience based spending

Socio-cultural - Healthy lifestyle trend (Scholliers, 2015, p.2-6)

- Rise of sharing culture

Technological - Consumers response to technology varies (McKinley, 2002, p.57-

58)
- Proliferation of smartphone technology
- Big Data

Legal - Legalisation of Uber in Queensland (Uber, 2016)

Environmental - Influx of consumers choosing uber instead of public transport

raises environmental concerns

UberEATS maintain their App as the main point of call for this service and it
remains vital for UberEATS to present an easy-to-use App (McKinley, 2002).
Big Data is the phenomenon of identifying patterns and trends in large data
sets (Manyika, et al., 2011). Using Big Data, UberEATS is able to track
consumer’s current location and advertise local restaurants (Walker, et al.,
2015). With the rise of the ‘sharing culture’ and healthy lifestyle trend,
consumers are now demanding healthy food from quality restaurants (AFN,
2016).

Ensuing legalisation in Queensland, Uber’s rideshare service has experienced

an influx of users (Uber, 2016). However this is will also result in
environmental concerns, as consumers may be less likely to utilise public
transport services. The rise of ‘mobile consumers’ also presents a strategic
opportunity for UberEATS. According to Deloitte (2015), over 80% of

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smartphone engagement amongst Australian consumers is application-based,

with Smartphones being the most popular device with users 55 years and
younger (Uber’s key demographic). Furthermore, 34% of users plan to
replace their smartphone device within the next year (2015). Constant
technological advancements may impose additional costs for UberEATS,
however, it also presents an opportunity to enhance their technology in-line
with smartphone advancements.

1.4.2 Strategic Uncertainty

Increasing competition presents strategic uncertainty as the food courier pick-
up, and delivery service industry faces a high level of market competition
(Magner, 2016b). UberEATS’ competitive advantage is their large network of
available drivers which will buffer new market entrants. Driving factors for
competition include price, delivery time, marketing, and reputation (Magner,
2016b).

Scholliers (2014) identifies a future demand for food delivery services as

consumers are demanding convenience. Fluctuations in disposable income
has the potential to impact consumer demand and revenue in this sector. In
order to counteract changes in disposable income, UberEATS will need to
continually reassess their market position and employ responsive marketing
strategies that adapt to changing market climates. (See Table 9).

Table 9: Strategic Uncertainty Impact Analysis

Strategic Impact Immediacy Action
Uncertainty

Decline in High Low Monitor and analyse; contingent strategies

Disposable considered.
Income - React to changes in disposable income; offer
incentives and discounts or increase prices.

Market High High Analyse in-depth; develop strategy.

Competition - Investigate new competitors.
- Create contingency plans for new market
entrants.

Technological High High Analyse in-depth; develop strategy.

Advancements - Research and development.
- Trend analysis.

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1.5 Strategic Objectives

 
 
Table 9: SMART Objective 1: Stimulate restaurant signs ups

Specific 10 new restaurant sign ups in first month.

Measurable 1 new restaurant sign up every 3 days (in a 30-day month).

Achievable The success of UberEATS in other major Australian cities (e.g. Melbourne) should act
as an indicator of the potential benefits that restaurants receive, as the app is
responsible for 60-80% of orders per night. Coupled with the number of consumers who
prefer the dining experience, restaurants who partner with UberEATS would be sure to
benefit from the increased business. As well as the financial bonus of signing up with
UberEATS, our plan is to also highlight the new restaurants through social media
channels to our established following, whilst also helping to decrease their marketing
costs.

Realistic Due to the process that it takes for a restaurant to partner with UberEATS, our objective
only sets a minimal goal. Reaching this total will still be realistic, as the Brisbane CBD
alone boasts over 600 restaurants, not including the various options provided in the
surrounding suburbs (Zomato, 2016). Therefore, this provides UberEATS with a wide
range of options to select from.

Timely 30 new restaurant sign ups in the first 3 months.

Table 10: SMART Objective 2: App sign ups

Specific 5,000 app sign ups in the first month

Measurable 167 sign ups per day (in a 30-day month).

Achievable We will introduce the UberWEAR promotional strategy for the Brisbane clientele, in
which the first customers to sign up will receive an UberEATS reusable bib. This
campaign will help to attract consumers in the initial stage due to the added incentive
of a novelty item, as well as assisting with the increase of brand recognition.

Realistic In order to achieve our objective of attracting new customers, we need to ensure that
our promotional strategies appeal to our target audience. In a survey that we
conducted, 34% of the 100 respondents indicated that they would prefer a reusable bib
over other options (e.g. lunchboxes and aprons). It is also essential to use social media
influencers (with established followings) to help generate buzz around the campaign in
its initial phase, and to appeal to a variety of audiences.

Timely The goal is to ultimately record 15,000 sign ups within the first 3 months.

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Table 11: SMART Objective 3: Food Orders

Specific 15,000 food orders in the first month.

Measurable 500 orders per day (in a 30 -day month).

Achievable A loyalty program will be implemented for the customers in order to obtain this
th
objective. The strategy will see a $15 discount for every 5 order made by the
consumer, and this will be used to encourage individuals to become frequent users of
the UberEATS app.

Realistic Loyalty programs help generate positive reactions from consumer, which influences
them to become repeated buyers of a brand. Because our first objective aims to attract
new customers, this strategy will be implemented to keep them for an extended period
of time.

Timely The goal is to receive 45,000 orders in the first 3 months.

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2.0 Execution Strategy

2.1 Value Proposition

UberEATS offers inexpensive, reliable food delivery services with quality and
healthy food options. UberEATS’ extensive range of drivers guarantees fast
delivery, highlighting a main benefit of UberEATS that rival firms cannot
compete with. This provides value for ‘corporate climbers’ and ‘busy families’,
who are incredibly time-poor.

With branded packaging and speedy service, UberEATS delivers quality food
to their consumer - providing an easy solution for ‘corporate climbers’ and
‘busy families’ to satisfy their weekly takeaway purchases. They exceed in
performance, customer support, process quality and aesthetic design with
consumers being able to rate their meal via their App immediately after
delivery (Uber, 2016). Easy ordering processes allow for ‘corporate climbers’
and ‘busy families’ to order a variety of meals at the touch of a button. In order
to maintain it’s quality-based value proposition, UberEATS will need to
undergo continuous assessment to ensure the service is creating positive
quality perceptions.

Additionally, it is recommended that UberEATS respond to consumer health

trends, providing a ‘healthy-options’ menu for target customers. According to
FMCG, consumers are more emotionally invested in their food than ever
before, and have become increasingly concerned with “what their food
choices are saying about them” (Australian Food News, 2016 & FMCG,
2016). By responding to consumer trends and engaging healthy restaurants
such as Botanica and Berry Bliss, UberEATS will not only strengthen appeal
for health-conscious ‘corporate climbers’ and ‘busy families’, but also but also
create competitive advantage in a saturated market.

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2.2 Energizing and Leveraging the Business

It is essential that firms find innovative strategies to add value to the business,
rather than investing money. (Aaker, 2010). 80% of CEOs surveyed by PwC
believed innovation to be the key-driving factor toward competitive advantage
(2012). It has been identified as an important objective to effectively engage
the ‘corporate climbers’ and ‘busy families’ markets; therefore these strategies
have formed with the intention of doing this. UberEATs now have the
opportunity to take significant strides in each of these areas if capitalised
effectively.

2.2.1 Brand Differentiation

To successfully capture the Corporate Climbers market, a product offering

that is different to its competitors is essential. A survey that interviewed 100
people at random indicated 75% of people would be more inclined to order
takeaway if the options available contained healthier offerings, and food
quality was the most important quality considered when ordering take away
(Appendix 4.3). For UberEATS to add a higher quality and healthy range to
their menu, a strategy is to be created to incentivise the restaurants that offer
the according premium meals on board.

This strategy will select one night a week where UberEATS subsidises the
delivery costs of selected restaurants. A 3-month roster will be drawn-up,
allowing the restaurant applicants to alternate weeks over that period. The
selected restaurant will be promoted over Facebook to maximise potential
usage. This strategy will look to increase sales on a day during the week,
where restaurants would not be as likely to fill their restaurants. With 15%,
Monday presented as the most popular day during the week to have food
delivered (Appendix 4.3). This deal would offer an alternative means to
restaurants to boost sales. This is designed to incentivize a minimum of 84
after the 3-month period.

Consequently, offering a deal that would incentivise high-end restaurants to

get on board with UberEATS, this would create a much higher quality product
offering available for UberEATS to differentiate their business.

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2.2.2 Loyalty Program

Brand loyalty develops dedication from customers to purchase from the same
company and establish perceived benefits including a feeling of satisfaction,
confidence in the brand and knowledge of what to expect from the brand
(Gremler & Brown, 1996).

UberEATS is a courier app and relies on continual orders and purchases to

achieve sustainable growth. To grow brand loyalty induce further usage of the
service, UberEATS should develop a loyalty program. Launching in Brisbane,
UberEATS will offer $15 off every fifth meal. This deal covers the cost of
delivery and will lower the price of the meal, incentivising UberEATS users to
continue ordering until their fifth order. This loyalty program is financially
viable to continue after the initial three month marketing strategy.

2.2.3 Brand Energizer

As a subsidiary of Uber, UberEATS must differentiate itself from Uber and

develop its own app users and customer base. Brand energisers are
additional products or promotions that significantly enhance and excite the
target brand (Aaker, 2010). UberWEAR is an exciting proposal to engage
customers.

UberWEAR will be exclusive for the first UberEATS customers in Brisbane.

UberWEAR will consist of recyclable bibs that arrive with the first customer
downloads and consecutive orders off the app within the first month of
releasing UberEATS, assisting in reaching the goal of 5,000 signups in the
first month. In a completed survey 34% of customers were most excited by
the option of a personalised bib. The bibs will be novelty branded items,
customisable for different situations, such as the office, formal events or day-
to-day. The market that UberEATS is targeting are ‘busy corporates’ and
‘busy families’, UberWEAR is a product that will engage these markets and
will allow them to easily order and eat without damaging their clothing.

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UberWEAR will tie into UberEATS social media campaign. Using social
influencers will increase awareness and endorse UberWEAR and UberEATS
as a viable take-away service. UberWEAR will be sent to food and fashion
Instagram influencers with 5,000-7,000 followers. Using influencers with a
lower following develops the perception of uniqueness, increasing brand
authenticity and exclusivity - exactly the impact UberWEAR is designed to
make with the target audience (De Veirman, Cauberghe & Hudders, 2016).

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2.3 Budget

Table 12: Itemised Budget for UberEATS Marketing Strategy

Item Cost Subtotal

UberWEAR: Reusable bibs $ 2 x 5,000 $10,000

Free Delivery on Mondays $ 5 x 500 (deliveries p/day) = 2,500 x 12 $30,000

Loyalty program $15 off every 5th order: 45,000/5 x 20 $180,000

Influencer marketing Influencer Cost = $100 x 10 x 2 $2,000

(based on $100 per post for 10 influencers with 2

posts).

Sponsored ads Facebook Power Editor Campaign = $16,000 $16,000

(based on a 3 month lifetime budget using

automatic bidding and targeted ad serving)

Contingency Allowance for additional promotion costs. $12,000

TOTAL $ 250,000

Source: Alibaba, 2016.

UberWEAR is estimated at $2 a piece, for 5,000 pieces is $10,000 (see Table

12). The influencer campaign is also tied to UberWEAR, at an estimated $100
per post, using 10 influencers, posting twice, the total cost would be $2,000.
To differentiate UberEATS from the competition UberEATS is focusing on
adding premium restaurants by offering free deliveries on Monday, at an
estimated average of 500 deliveries a day the cost would be $30,000 over
three months. Using Facebook as the advertisement platform for this
campaign would cost $16,000. To maintain customers using the app
UberEATS will develop a loyalty program of $15 off the fifth meal, which
would cost $180,000 in the first three months.

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Figure 3: Milestone for UberEATS

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3.0 Conclusion
 
This plan demonstrates how UberEATS can use strategies to establish a
dominant position in the Brisbane’s food delivery market. Based on the
promotion of healthy food options, UberEATS should appeal to high-end
restaurants within Brisbane to differentiate the brand. Our plan also outlines
the use of discounts for continual purchases, thus rewarding our customers’
loyalty. Finally, we will aim to energise the UberEATS brand through
promotional products and social media campaigns. These tactics will benefit
the company especially throughout its initial stages, as it will attract sign ups
to the App.

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5.0 Appendix

5.1 Appendix 1: Uber Users: Age Breakdown

Source: Roy Morgan Single Source (Australia), July–December 2015, n=7,427.

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5.2 Appendix 2: Helix Personas - Roy Morgan

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5.3 Appendix 3: Survey Results

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