Top 10 Online Food Business Ideas in the Philippines

by RICKY SARE
TwitterFacebook

If you are an aspiring entrepreneur thinking about the best online food business ideas in
the Philippines, you are on the right track!

The food retail business continues to thrive in the Philippines simply because there is a
steady market of consumers who love to eat out or order in. You’ll be hard pressed to
find a restaurant or fast food chain inside a mall with an available table from 12:00 pm to
2:00 pm. But looks can be deceiving.

Having been involved in the retail food business for ten years I can tell you this paradox
can define the industry:

A restaurant that is packed to the rafters every day does not mean it is making
money.

It may look like the cash register is ringing off the hook but you’ll be surprised how much
is left after all deductions have been factored in. Food cost alone can be brutal. Many
fast food restaurants average 50% to 60% food cost. This is because the Philippines is
a net importer of raw materials. Proprietors are also hesitant to increase menu prices in
a market that are price sensitive.

Thus, assuming you sell a hamburger for 100 Pesos, 50 to 60 pesos will go to your
supplier, service crew and to pay for utilities. You have 40 pesos left. Do you think it will
go to your bank account? No. Because you still have to pay taxes, employee benefits,
maintenance, monthly dues, and rent.

Now you know why you cannot get many food choices inside a mall. The only ones that
survive are those that have multiple branches because sales volume can offset
depressingly low-profit margins.

If you want to have a career in the food retail industry, open your mind and understand
that it’s not just about selling food inside a mall. Food Retail is an industry that is
extensive and deep in scope and magnitude. You can retail your creations or your
expertise. You do not have to be a trained chef or experienced cook to be in the food
retail business.

And you do not have to set up a brick-and-mortar establishment.

In fact, the best recourse is to go online where the risks can be managed; conditions are
ideal for maintaining quality and business modeling is more flexible.

Related: 33 Best Online Business Ideas in the Philippines 2016

There are many other options to consider when planning an online food-related
business. Here are my top 10 online food business ideas in the Philippines.

1. Food Delivery Service

Let’s start with the obvious! If you have a deep-rooted passion for food and want to
share your culinary talent to the market, get your baptism in food retail via a delivery
service.

Costs are lower, but you need to capitalize the business. Initial investment should cover
the e-commerce website and larger scale cooking equipment.

I estimate you would need 100,000 pesos including minor leasehold improvement to
capitalize the business. But you should be able to recover your investment because
your margins should be better. The delivery rider can be outsourced.

Here’s a good tip: if you want to maintain quality, prepare a fixed amount of food per
day. This makes it easier to plan the production schedule.

How do you pull this off? Use your website!

For example, if you are selling burgers, your Home Page copy should read, “We only
cook 100 burgers for lunch. First order, first served!” Then have a countdown feature
which starts at “100”.
Every order that is confirmed reduces the number of available burgers until it reaches
“0.”  When the target of 100 burgers has been reached, this message will appear on the
Home Page, “Sorry! Burgers are SOLD OUT! Please try again tomorrow.”

This approach not only ensures food quality but creates demand for your product and
will help you reach your quota.

2. Personal Chef

As a Personal Chef, you will cater to the higher income market. They will have little
aversion to the cost of your food as long as it delivers on its promise of quality. Thus,
your profit margins should be good.

Usually, the moneyed class looks for healthier food options because there are hardly
any proprietors in the market. These are the consumers who want to follow diet
protocols or nutrition plans strictly as prescribed by their Personal Trainers or
nutritionists.

Over the last few years, we’ve seen successful online proprietors who offer specialized
food items that follow low carbohydrate protocols such as “The South Beach Diet” and
“Paleo.”

The menu on your website should include complete nutritional information on calorie
content, portion sizes and accurate macronutrient breakdown. If you are targeting the
health food market, include a blog page with rich content on exercise, general wellness,
and nutrition.

3. Online Cooking School

If you are a trained professional chef, you can consider offering cooking lessons online.
Here are just a few ideas you can use for your website:

 Specialized online instruction:

 One-on-one
 Classroom setting
 Instructional videos:
 How to prepare everyday dishes
 How to prepare fine-dining meals
 How to plan for a party
 How to cater for a large gathering
 Featured chef/ personality
 Archive of recipes
 Cooking tips and techniques
 Blogs on food related articles
You will need to hire a few chefs to handle the specialized online instruction if the
number of enrollees has become difficult to manage. You can have different rates per
package:

 One-on-one: $20 per hour

 Classroom (minimum of 5 students): $5 per hour

You can also put up an e-commerce page where you sell the products and equipment
you use in the videos. You can also sell merchandise such as books, t-shirts, cooking
planners, chef’s hats, aprons and other items that will help develop your brand.

4. Online Food Reviewer

Aren’t we all food critics by nature? Social media has given everyone a platform to post
their opinions on the best and worst restaurants in the market. On my Facebook page, I
regularly come across posts from friends who regularly share their best and worst food
experiences.

I tend to patronize the recommendations of those who know how to word their
experiences. A post that says “Best Shawarma in Manila” isn’t going to get me riled up.

But a post that says, “Best Shawarma I ever had! Generously packed with perfectly
roasted beef that is sliced only upon order; the Shawarma is so big and juicy you need
both hands and a pack of napkins! Best value for money at only 100 pesos!”

An online review is like a blog; it must have sizeable content of at least 1,600 words and
accompanied with high-resolution images. Contrary to popular belief, you do not have to
be a cook, chef or celebrity to be a food reviewer.

To become a credible food reviewer, you should have these qualities:

 Be a good writer. Don’t write in a technical manner. Instead, be conversational.

 Be honest and fair. Don’t be swayed by popular opinion.
 Be thorough. A good food review includes feedback on ambiance, cleanliness,
quality of service, presentation, observation on crowd activity, accessibility and
pricing, not just food quality.
 Be professional. Even if you didn’t like the experience, tone down the emotional
rhetoric and stick to the issues. This is a food review, not a rant.

Finally, be incognito. If restaurants recognize you, they will take steps to make sure your
experience would be great.

If your food blog gains traction, you can generate income from ads and other
placements.

Top 10 Online Food Business Ideas in the Philippines

by RICKY SARE
TwitterFacebook

5. Catering Service

Catering is one of the most efficient ways of running a food service business:

 You have enough time to plan food production properly.

 You have enough time to review the logistics.
 You only buy what you need.
 The people you hire will be contracted only for the event.
 Everything that you will use for the event (tables, chairs, décor…) will be added
on to your total charges.

The net profit margins in a catering service are good. And if you network properly, you
can be booked for the entire year.

Your website must be colorful and enticing to visitors. Strategically position high
resolution, professionally taken food shots perhaps arranged in a slide format. It would
be a very good idea to upload videos of some of the events you have catered to and if
possible, include video testimonials from clients.
You may also add an explainer video to inform prospective clients the process of
planning a catered event. Add a blog page where you can share your experiences and
expertise with readers; have “top 10 lists,” “how to” and “best of” articles. The blog page
will give readers an opportunity to get to know you better.

As for pricing, you could include a “Basic Menu Set” with a few varieties just to keep you
in line with others in the industry. But your web copy should have a call-to-action for site
visitors to contact you for customized menu sets.

6. Online Bakery

We used to buy our bread from the supermarket but a few months ago we came across
this small, unassuming bakery in our neighborhood. We were hungry and ordered a few
pieces of “Pan de Coco” and “Spanish Bread.” These were easily the best we had ever
tasted!

We asked the proprietor how often he would bake his products. He said he would only
bake enough for the day because his products do not contain any preservatives to
make them last longer. He candidly told us they will spoil faster than store-bought
bread. I’m not a baker but all I can say he makes a really good product.

Nothing tastes better than home-made bread, cake, and pastries. Personally,
commercially available bread has an inconsistent taste. All you need to do is look at the
uneven coloring of the buns coming out of the production line. Some of the buns are
light-colored because the sugars did not settle properly before baking.

The best cakes we’ve had were ordered online. As a luxury food item, cakes are more
expensive. These online bakers do not generate volume and bake only upon order.
Even when they are booked for the entire year, they have limited capacity to bake just
enough cakes in the day without compromising the quality.

So they tend to be more expensive than store-bought cakes but so worth the price!

An online bakery will give the market access to freshly made bread, cakes, and
pastries. You have to assure customers that your products are indeed freshly baked,
and you can do this by informing them of the production date.

For bread items, you can do a running balance of inventory so customers will know how
much more product is left in your store. But orders for cakes will have to be made in
advance.

7. Cookie Gift Packs

One of the most popular gift packs involves cookies. Just like other baked goodies,
home baked cookies are the best. Commercially packaged cookies contain many
artificial ingredients to make the products last longer. It will not have the same fresh
taste and texture as home-baked cookies.
All cookies should be pre-booked in your website to guarantee product freshness.
Schedule your production based on existing capacity. You will have limited volume per
day, but you can assure customers of quality. Pricing points should include packaging
material.

Your cookies will cost more than store-bought, commercially-packaged products but if
baked properly will be worth the premium price.

8. Food Preserves

One of the best food festivals I’ve been to is the Cordilleras Food Exposition, which is
usually held at the Festival Supermall in Alabang. The expo features many great
indigenous products from the Benguet provinces.

When I’m at the expo, I enjoy trying the new varieties of wine, coffee, and sausages.
Outside “Café by the Ruins” in Baguio City, this is the only place where I can buy a kilo
of “Kopi Luwak” or coffee made from beans fermented in the feces of the Civet Cat.

If you have not tried “Kopi Luwak” you are missing out on a fine cup of coffee! People
find it strange that I would spend on coffee that has been excreted by a cat. All I will say
is you don’t need any sweetener or creamer with “Kopi Luwak.” Its taste will stand on its
own.

Offering these products year-round in Manila would be great. An e-commerce website

that features and retails these fantastic locally made products would give these
industries much-needed exposure in the local and international markets.

In North America, some retailers of “Kopi Luwak” sell a cup for US$300. I buy a kilo for
1,000 Pesos or US$21! Can you imagine the profit potential?

9. Frozen Food/Meat Delivery

This is a great online food business idea which offers convenience and safety to
consumers.

I have been to many popular supermarkets and grocery stores where meat storage
leaves a lot to be desired. The raw meat is left exposed to nearly room temperature,
and some products show signs of advanced decomposition. And let us not forget the
presence of flies!

If you can assure the temperature, quality, packaging standards, cleanliness and
timeliness of delivery, you could save people money and time with your service.

Your website should include a virtual tour of your storage facilities and meat handling
capabilities. Include a video on the science behind the insulated boxes you use for
delivery to guarantee freshness and quality. Provide tips on how to tell if the meat is of
good quality or not.
Among the frozen food you can offer are the following:

 Raw beef, chicken, pork, fish

 Crustaceans
 French fries, onion rings
 Fruits
 Vegetables
 Dimsum
 Ready-to-eat microwaveable food

You should be able to offer competitive pricing if the items are stored in freezer units at
home. A good idea would be to present a comparative market price matrix between
your items over those sold in supermarkets, groceries, and wet markets.

10. Unique/ Exotic Food Gift Items

There is a saying that if you want to know the culture of people, you should eat their
food. But what if instead of going to another country, you brought the food here?

In my youth, my Dad would always bring in jars of pickled herring called “Roll Mops”
from his regular trips to Denmark. I did not care much about fish and the pickled herring
resembled a test tube alien from “The X-Files”.

But one night, my Mom opened a jar and asked me to try one. The herring was rolled up
like sushi, and you used a toothpick to get it out. My Mom told me to eat everything
whole. One herring and I were hooked! It was so good!

There are many interesting food items from all over the world. Off the top of my head
are the following:

 Fugu eggs; “caviar” from Japan made from the deadly Fugu fish.
 Casu Marzu; rotten, worm-infested cheese from Sardinia.
 Kopi Luwak; coffee beans fermented from the feces of the Civet cat.
 Haggis; sheep innards stuffed inside the sheep’s stomach and simmered for 3
hours. A traditional dish from Scotland.
 Blood Sausage; a specialty of England, pork innards cooked with blood and
stuffed in stomach casing.
 Rocky Mountain Oysters; a specialty in the United States. Only these aren’t
oysters. These are bull testicles.
 Hakarl; fermented shark meat from Iceland

These food items can stay in good edible condition for a long time. Fugu eggs, Kopi
Luwak, and Hakarl are tightly packed. Haggis, blood sausage, and Rocky Mountain
oysters can be frozen. And Casu Marzu tastes better as it rots!

It would be great to have an online retailer who offers these goods and delivery to your
home within 24 hours. Web copy should be well-written. It must be informational but
crafted for the purpose of making a sale. Include an updated balance of your stocks to
create a sense of urgency among prospective buyers.

These food items are exotic and should carry a premium price. You don’t need to stock
a large inventory because the margins should be quite high.

Making the leap on starting an online food business

If you have decided to go for an online food business idea, please take a few minutes to
review the following section which touches on what I believe you should consider as
part of the planning process:

Conduct a comprehensive project study. A good idea is different from a viable idea.
A project study is not a crystal ball, but it will give you valuable reference points to
determine the strengths and weaknesses of your planned venture. It will also provide an
indication of the profitability and projected payout period for the business.

Invest in your e-commerce website. Yes, there are downloadable, do-it-yourself

templates and plug-ins are available to give your website functionality. But this is your
business; your source of income. Don’t take chances that your website will not function
properly. Contract a professional website designer who can do the following for your
website:

 Mobile-responsive. Your website must be accessible from mobile devices.

 Fast download speed. The ideal download speed is 6 to 10 seconds.
 Accessible by multi-browsers. The Internet isn’t just Google, Yahoo or Bing.
Have your website accessible by Safari, Firefox, and other browsers as well.
 Give your visitors an easy time in navigating your website.
 Great content. The first 6 seconds of a visitor’s time in your website is critical.
You must grab his or her attention as soon as possible. Content is the key.

Conduct extensive online marketing. The biggest benefit of having an online

business is that you can capitalize on the power of the Internet. You have access to a
global market of 3.3 Billion people at the tap of a keypad or a click of the mouse. Online
marketing is cost efficient and effective. Here are a few online marketing strategies for
you to consider:

 SEO. Contract the services of an SEO professional to optimize your web pages.

SEO works to have your website climb the search rankings.
 Social Media. To enhance your online presence, you must be active on social
media. Find three social media networks and focus your strategies there.
Contract the services of a Digital Marketer if you are unsure of your strategy.
 Blog. Did you know 61% of consumers had their decisions to purchase
influenced by a blog? Do not hesitate to hire a content writer to generate
compelling blogs.
Register your business. People often ask me why they should register their business
if they work from home. Here are my answers:

 It’s business which means it is a living, breathing entity which must be legalized
to transact, procure income from the paying public and pay taxes.
 The majority of suppliers will only deal with legalized entities. Manufacturers will
not connect you with their accredited wholesalers unless you can provide
corporate documentation. The same goes with wholesalers.
 If you are not a legal entity, you will have weak negotiating position with good,
credible suppliers.
 You will not secure friendly credit or payment terms with suppliers.
 Customers may hesitate to pay for merchandise where the payee is not a
company but a person.
 Registration professionalizes your business.

Related: How to Start a Small Food Business in the Philippines

These are just ten online food business ideas in the Philippines for you to consider. I’m
sure you will have others that could be better than what I have written down. The
important thing is to pursue your entrepreneurial dream and make it a reality!

Online food delivery service

Foodpanda Case Study: Foodpanda Became Google of Online Food Ordering

      Charvi Malhotra      April 28th, 2016   6 Min Read

4 (80%) 1 vote
About Foodpanda:

Foodpanda is the best online food ordering site in India. It connects people and the best

restaurants together. It delivers in Delhi, Bangalore, Mumbai, Hyderabad and many

other cities, Foodpanda has the highest reach in India. You have to enter your post

code and can search for cuisine type, restaurants or even price. The restaurant index

also includes address and delivery hours. No online food delivery is too difficult for

Foodpanda. The use of Digital Marketing Strategies has played a huge role in the

making of it as a brand.

NATURE OF BUSINESS:

 B2C service restaurant menus, customer reviews and 4000 restaurants spread over

40 cities.

 With just a few clicks one can order from a wide variety of delicious online cuisines.

 Target audience almost anyone with an android phone.

 Food & e-commerce Industry.

FOODPANDA’S ACHIEVEMENTS TILL DATE:

Foodpanda was founded in the year 2012 in Singapore and within a year they

expanded themselves to 16 other countries. They’ve been consistently growing each

month.Till the time they are operating in 40 countries including Asian countries like

India, Pakistan, Bangladesh, Russia and many more. They’ve used their strategies and

marketing campaigns to ensure that every month they offer something new & fresh to

the their customers in terms of offers, food festivals, social media contests,

etc.Moreover in India

  They’ve grown to become one of the largest food ordering portals

  Built a network of 2000+ partners including some of the well known brands like:

Pizza Hut, Subway, Nirula’s, Baskin Robbins, Mast Kalandar, Faasos, Dominoes,

Moti Mahal and many more. They have each and every restaurant in their list which

is street restaurant or some elite one.

  They have  steadily ‘shaped the market’ towards ordering food online, instead of

ordering on phone or going for take aways one could simply order it using app on

phones or online.

Where do Foodpanda see itself after 5 years:

They aim to be the Google of online food ordering.

Approach and Strategies Adopted by Foodpanda

1.EMAIL MARKETING: 

As email marketing is one of the best ways to retarget the customers and they are using

it pretty well. With big brands, great discounts & food festivals, they make sure that they

always have something new for the customer. They always make sure that a customer’s

first experience is something that the customer appreciates and remembers.

Retargeting customers with alluring offers like this have been a great strategy and

helped them to stay connected.

2. Social Media Marketing:

Given below is the one of the campaigns used by Foodpanda in the year 2013
Foodpanda used this campaign as a part of digital marketing strategies to allure the

customers in the year 2013

Objectives of this Campaign:

 It was a promotional campaign to increase visibility and sales. To attract customers

and to gain their trust.

Execution:

People need to use the code “IPAD” while placing the order online, and this makes

them eligible for the content. The more times you order, increases your chances for

winning the iPad. There is no limit on number of entries per person.

Positives (in the year 2013):

They have used Social Media to increase sales on their website. By not limiting entries
per person, makes users participate multiple times to increase their chances on
winning. A good number of people order food online, owing to the restaurant
and cuisine options available.

Conclusion (in the year 2013):

FoodPanda.in has been doing a commendable job on social media so far with over 39k
likes and 1200+ followers. The contest however is very simple and less visible

However, if we compare this campaign of year 2013 to present year campaigns

we can surely see the milestones Foodpanda has achieved in terms of popularity,
trustworthy customers, and much more.
The picture below clearly depicts the statistics

Foodpanda’s Facebook page shows its popularity on Facebook as it has 2,011,066

likes for its page and regular updating of offers and interaction through social media
help them to stay connected and maintain their brand value.

Foodpanda on Twitter with such large number of followers and tweets are definitely
results  of powerful social media marketing.

HOW TO BEST LEVERAGE SOCIAL MEDIA MARKETING:

It is really important to know the customer experience.There is a wise saying: “You can’t
really understand another person’s experience until you’ve walked a mile in his shoes.”
Therefore, it is an immense thing to look at your business from outsider’s perspective.
So it become important to take the feedback from the customers and social media is the
best way to engage your customers and get their feedback and in turn act accordingly.
To keep ur business at the top another vital thing is offer added value i.e. give your
customers something they are really interested in for example discounts to show them
the value of product or service or downloading ebooks, free assistance etc.

Another thing is ramp up online reviews and to see whether your customers are telling
good about your product or service to others and do answer their queries this shows the
sense of responsibility.

It is important to revisit your Social media strategyNo matter how long your business

has been on social media, it’s always prudent to review goals, access your success and

make any needed changes. Pulling back from one platform and switching it up on

another may be just the thing you need to freshen up your presence and become more

effective.

3.MOBILE MARKETING:

When foodpanda entered the market three years ago, it faced perception issue as many

thought it to be restuarant others food supplier and rest delivery company. Three years

later everybody has a clear picture what it exactly does and it is now present in 40

countries.

When we think about the success of foodpanda and what it did to raise its perception

and awareness amongst people the credits mainly goes to mobile marketing.
Foodpanda user friendly application and easy availability tempts customer to access it

anywhere anytime.

The advertisement like foodpanda is in your pocket clearly signifies to customers about

its easy availability in google playstore, apple playstore.

Learnings:

As it is an e-commerce business so the best strategy they used is to target the

customers when they are online in front of their computers and encourage them to try
Foodpanda. That is why their focus have always been on digital marketing strategies.
They have used above three strategies that is email marketing, social marketing and
mobile marketing to its best use and that is why Foodpanda has evolved to be the big
brand.

In the case of mobile marketing what is important:

Time spent on mobile is skyrocketing but what marketers should not forget is that

consumers may download many apps, but only spend a bulk of their time on a few of

them.

“Creating and maintaining apps can have a large upfront expense, and be a resource
drain to keep updated. But if you have a sound business reason behind your

development it will be easier to measure your success.

In the case of email marketing what is important

Not to spam and irritate customer once they have unsubscribed you it is important to

respect their decision and work hard to show your quality.

Image credits: Google and foodpanda

CASE STUDY: FOOD PANDA

By
 
Stephen Hoare, freelance journalist and contributor to The Guardian and The
Independent in the UK.
The emergence of collaborative consumption, which has given rise to the sharing
economy,
is just one example of a new way companies are being challenged to rethink their
strategy.
Over recent years, platforms like Airbnb and Uber have harnessed digital technology to
revolutionize their industries, and now food delivery services have joined in the
movement.

Former CEMS student Iacopo Rovere (29) graduated from the University of Sydney in
2013
and is now CEO of the home delivery company foodpanda in the Philippines. Rovere
began his career with foodpanda’s parent company, Rocket Internet, in Berlin before
joining the new business spin out two years ago. “We see emerging markets like the
Philippines as our niche. We operate in a city of 12 million people in a country where
GDP is growing above 6 per cent per annum,” says Rovere. The company employs 500
people, most of them full-time, who carry out all of the in-house functions including
logistics and transporting cooked meals.

The market for internet based home delivery is a young upwardly mobile demographic
who enjoy the convenience of eating restaurant quality food at home. foodpanda’s
platform enables local restaurants to expand beyond their immediate locality. Rather
than being restricted by the number of available seats, foodpanda can deliver a
restaurant’s meals to a much larger clientele within a 3-4 km radius.

“Digitisation is the focus of our strategy,” says Rovere. “We scan menus and provide
restaurants with feedback on customer behaviour and preferences. Our system
provides restaurants with a clear profile of their customers – the ones who return
regularly with repeat orders. This provides a quick way for restaurants to expand their
market, to benchmark themselves against the competition and to improve their offer.”

foodpanda’s business model may be disruptive in the short term but in the long term
it will need to stick to its vision while responding to changes in the marketplace. As with
all
successful companies, vision and agile project management are the key.

CASE STUDY: How Foodpanda leveraged Digital Marketing to become Google of

Online Food Industry?
07/09/2016

What you will find in this Case Study?

1) About FoodPanda
2) FoodPanda’s achievement
3) Increasing Popularity
4) Marketing Strategy
5) Email Marketing
6) Social Media Marketing
7) Mobile Marketing
8) Funding and Future Planning
 About Foodpanda
Hungry? Too tired to cook or go out for food? Stuck gnawing at suspicious looking
chicken from the fridge? It happens to the best of us. If you don’t have an Internet
connection, get back to your chicken. But if you do, check out Foodpanda. It’s one of
the most popular online food delivery services in India as well as many other countries
around the world.
Foodpanda has the highest reach in India. No online food delivery is too difficult for
Foodpanda. Additionally the increasing role of digital marketing in online businesses
has helped greatly in making Foodpanda a global name.
Foodpanda’s achievements till date
 Founded in May 2012
 Operating across five continents and 24 countries
 Active in more than 500 cities around the world
 Partners with more than 40,000 restaurants globally
 With a team of more than 4,000 people worldwide
Increasing popularity
Foodpanda has over 2.2 million likes on Facebook and 26.7 K followers on twitter
account (@foodpandaIndia). What sets them apart from their competitors is that they
are able to take a worldwide brand and make it country specific, and market themselves
accordingly. They know what their consumers want, and they know how to get it to
them.
Marketing Strategy of FoodPanda
Email Marketing:

Foodpanda is utilizing the full power of email marketing. Once you have ordered with
Foodpanda then many a times you must have received a mail with various promotion
and discount coupons. The company always tries to ensure that their user’s first
experience remains awesome and then they try to retarget them through discounted
and promotional emails.
Social Media Marketing:
Foodpanda ran a campaign on social media in 2013. The campaign promoted the brand
and increased the brand popularity among the customers.
People need to use the code “IPAD” at the time of placing the order. Using the code
makes them eligible for the contest. People can increase their chance of winning the
iPad by making more orders.
Foodpanda’s Facebook page shows its popularity on Facebook as it has more than 2.2
million fans on its page. Foodpanda on Twitter also has a strong follower base with
26.7K followers over the platform. Solving the customers query through social media
has created a faith for the brand among the customers.
Mobile Marketing:

The time Foodpanda started and entered the market in 2012, people were not clear
about the business model of the company. Some thought that Foodpanda as a
restaurant while others thought it as food supplier and food Delivery Company. But now
users have a clear view of what Foodpanda is all about.
Mobile has played a great role in the success of the company. Most of the orders
coming from the mobile app, Foodpanda now focus more on mobile marketing.
Foodpanda user friendly mobile app has made it easily accessible and available for the
customers to access it from anywhere anytime.
Funding and Future Planning
Foodpanda works under name of Rocket Internet that is one of the biggest internet
companies in the world. Started in 2012, Foodpanda raised $20 million to make it stable
in the market. The funding round was led by AB Kinnevik, Phenomen Ventures and
Rocket Internet in April 2013. Soon then in September 2013, Foodpanda raised $8
million from iMENA Holdings. Again there was another funding round of $20 million
funding in February 2014 from Phenomen Ventures and other investors.
With the continuous raised funds, the brand name was getting wider and wider across
the globe and Foodpanda was becoming a home name for the foodies. Again in August
2014, the company raised another $60 million. Soon then Rocket Internet invested
another $110 million in March 2015. Then again in May 2015, Goldman Sachs and
other investors invested around $100 million. Foodpanda with its current presence in 24
countries is looking forward to expand its footprint to more countries.

CASE STUDY: How Foodpanda

leveraged Digital Marketing to
become Google of Online Food
Industry?
07/09/2016

What you will find in this Case Study?

1) About FoodPanda
2) FoodPanda’s achievement
3) Increasing Popularity
4) Marketing Strategy
5) Email Marketing
6) Social Media Marketing
7) Mobile Marketing
8) Funding and Future Planning

About Foodpanda
Hungry? Too tired to cook or go out for food? Stuck gnawing at suspicious looking
chicken from the fridge? It happens to the best of us. If you don’t have an Internet
connection, get back to your chicken. But if you do, check out Foodpanda. It’s one of
the most popular online food delivery services in India as well as many other countries
around the world.
Foodpanda has the highest reach in India. No online food delivery is too difficult for
Foodpanda. Additionally the increasing role of digital marketing in online businesses has
helped greatly in making Foodpanda a global name.
Foodpanda’s achievements till date
 Founded in May 2012
 Operating across five continents and 24 countries
 Active in more than 500 cities around the world
 Partners with more than 40,000 restaurants globally
 With a team of more than 4,000 people worldwide

Increasing popularity
Foodpanda has over 2.2 million likes on Facebook and 26.7 K followers on twitter
account (@foodpandaIndia). What sets them apart from their competitors is that they
are able to take a worldwide brand and make it country specific, and market
themselves accordingly. They know what their consumers want, and they know how to
get it to them.
Marketing Strategy of FoodPanda
Email Marketing:

Foodpanda is utilizing the full power of email marketing. Once you have ordered with
Foodpanda then many a times you must have received a mail with various promotion
and discount coupons. The company always tries to ensure that their user’s first
experience remains awesome and then they try to retarget them through discounted
and promotional emails.
Social Media Marketing:
Foodpanda ran a campaign on social media in 2013. The campaign promoted the brand
and increased the brand popularity among the customers.
People need to use the code “IPAD” at the time of placing the order. Using the code
makes them eligible for the contest. People can increase their chance of winning the
iPad by making more orders.
Foodpanda’s Facebook page shows its popularity on Facebook as it has more than 2.2
million fans on its page. Foodpanda on Twitter also has a strong follower base with
26.7K followers over the platform. Solving the customers query through social media
has created a faith for the brand among the customers.
Mobile Marketing:

The time Foodpanda started and entered the market in 2012, people were not clear
about the business model of the company. Some thought that Foodpanda as a
restaurant while others thought it as food supplier and food Delivery Company. But now
users have a clear view of what Foodpanda is all about.
Mobile has played a great role in the success of the company. Most of the orders
coming from the mobile app, Foodpanda now focus more on mobile marketing.
Foodpanda user friendly mobile app has made it easily accessible and available for the
customers to access it from anywhere anytime.
Funding and Future Planning
Foodpanda works under name of Rocket Internet that is one of the biggest internet
companies in the world. Started in 2012, Foodpanda raised $20 million to make it stable
in the market. The funding round was led by AB Kinnevik, Phenomen Ventures and
Rocket Internet in April 2013. Soon then in September 2013, Foodpanda raised $8
million from iMENA Holdings. Again there was another funding round of $20 million
funding in February 2014 from Phenomen Ventures and other investors.
With the continuous raised funds, the brand name was getting wider and wider across
the globe and Foodpanda was becoming a home name for the foodies. Again in August
2014, the company raised another $60 million. Soon then Rocket Internet invested
another $110 million in March 2015. Then again in May 2015, Goldman Sachs and other
investors invested around $100 million. Foodpanda with its current presence in 24
countries is looking forward to expand its footprint to more countries.

CASE STUDY: How Foodpanda

leveraged Digital Marketing to
become Google of Online Food
Industry?
07/09/2016

What you will find in this Case Study?

1) About FoodPanda
2) FoodPanda’s achievement
3) Increasing Popularity
4) Marketing Strategy
5) Email Marketing
6) Social Media Marketing
7) Mobile Marketing
8) Funding and Future Planning

About Foodpanda
Hungry? Too tired to cook or go out for food? Stuck gnawing at suspicious looking
chicken from the fridge? It happens to the best of us. If you don’t have an Internet
connection, get back to your chicken. But if you do, check out Foodpanda. It’s one of
the most popular online food delivery services in India as well as many other countries
around the world.
Foodpanda has the highest reach in India. No online food delivery is too difficult for
Foodpanda. Additionally the increasing role of digital marketing in online businesses has
helped greatly in making Foodpanda a global name.
Foodpanda’s achievements till date
 Founded in May 2012
 Operating across five continents and 24 countries
 Active in more than 500 cities around the world
 Partners with more than 40,000 restaurants globally
 With a team of more than 4,000 people worldwide

Increasing popularity
Foodpanda has over 2.2 million likes on Facebook and 26.7 K followers on twitter
account (@foodpandaIndia). What sets them apart from their competitors is that they
are able to take a worldwide brand and make it country specific, and market
themselves accordingly. They know what their consumers want, and they know how to
get it to them.
Marketing Strategy of FoodPanda
Email Marketing:

Foodpanda is utilizing the full power of email marketing. Once you have ordered with
Foodpanda then many a times you must have received a mail with various promotion
and discount coupons. The company always tries to ensure that their user’s first
experience remains awesome and then they try to retarget them through discounted
and promotional emails.
Social Media Marketing:
Foodpanda ran a campaign on social media in 2013. The campaign promoted the brand
and increased the brand popularity among the customers.
People need to use the code “IPAD” at the time of placing the order. Using the code
makes them eligible for the contest. People can increase their chance of winning the
iPad by making more orders.
Foodpanda’s Facebook page shows its popularity on Facebook as it has more than 2.2
million fans on its page. Foodpanda on Twitter also has a strong follower base with
26.7K followers over the platform. Solving the customers query through social media
has created a faith for the brand among the customers.
Mobile Marketing:

The time Foodpanda started and entered the market in 2012, people were not clear
about the business model of the company. Some thought that Foodpanda as a
restaurant while others thought it as food supplier and food Delivery Company. But now
users have a clear view of what Foodpanda is all about.
Mobile has played a great role in the success of the company. Most of the orders
coming from the mobile app, Foodpanda now focus more on mobile marketing.
Foodpanda user friendly mobile app has made it easily accessible and available for the
customers to access it from anywhere anytime.
Funding and Future Planning
Foodpanda works under name of Rocket Internet that is one of the biggest internet
companies in the world. Started in 2012, Foodpanda raised $20 million to make it stable
in the market. The funding round was led by AB Kinnevik, Phenomen Ventures and
Rocket Internet in April 2013. Soon then in September 2013, Foodpanda raised $8
million from iMENA Holdings. Again there was another funding round of $20 million
funding in February 2014 from Phenomen Ventures and other investors.
With the continuous raised funds, the brand name was getting wider and wider across
the globe and Foodpanda was becoming a home name for the foodies. Again in August
2014, the company raised another $60 million. Soon then Rocket Internet invested
another $110 million in March 2015. Then again in May 2015, Goldman Sachs and other
investors invested around $100 million. Foodpanda with its current presence in 24
countries is looking forward to expand its footprint to more countries.

Foodpanda: An introduction to the

newest food sensation that’s here to
stay
 Shiyin Chan, 4 years ago  3 min read  1742

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Foodpanda: An introduction to the newest food sensation that’s here to stay

We’re pretty sure most of us in Malaysia have heard of Foodpanda – it’s a service that
directly connects consumers to a range of eateries and restaurants across the country and
delivers what you ordered straight to your doorstep. But here’s a few things you may not
have known about this unassuming service. Hint: this company is an even bigger (and a
fatter panda, if we could put it this way) one than we would’ve thought –  encompassing not
just food-related services, but also setting their sights on other services that we as
consumers are going to benefit from!

 
So, what is Foodpanda and what do they do?

Foodpanda is a global online food delivery marketplace headquartered in Berlin, Germany.

Fun fact –  they’re also known as hellofood in other places in the world. At their very
essence, they’re a food delivery service that connects the restaurant or eatery in question
directly with the consumers ordering it! Indeed, it’s a simple idea that worked incredibly well
— since within a short span of three years, they’re already begun and sustained operations
in more than 40 countries across four continents and are growing bigger than ever.

How does Foodpanda work?

The service allows users to select from local restaurants and place orders via the website
or mobile application. Users of Foodpanda order cuisines from more than 35,000
restaurants worldwide.

There’s only a few simple steps to it:

1. Search for your preferred cuisine and restaurant.

2. Choose your meal out from the wide variety available!
3. Pay (of course)
4. Enjoy your meal. You don’t even have to move a muscle, for it is sent straight to your
home.

Why Foodpanda is getting bigger than ever – and it’s not because there’s more
bamboo!

Just last week, Foodpanda announced a partnership with two other major companies: Uber
– the global cab aggregator- and budget hotel chain ZO Rooms. As they join together to
create an utterly seamless travel experience for both travellers and locals, it also means
that Foodpanda is expanding to greater things.

Additionally, with exciting news closer to our Malaysian shores, Foodpanda Malaysia also
raised $100 million in its latest financing round led by Goldman Sachs Group Inc. Existing
investors, among them German startup accelerator Rocket Internet, also participated in the
latest round. The company raised $110 million in March and has now raised over $310
million since its launch in 2012.

And that’s not all. They’ve got a whole slew of recent acquisitions that they’ve been
gobbling up too. These included the four online food delivery services in Hong Kong, namely
Dial-a-Dinner, Koziness.com, SOHO Delivery and Ring-a-Dinner. They also bought Food
Runner-owned Room Service in Malaysia and Singapore, which allowed it to acquire
contracts with restaurants such as Wendy’s and Hard Rock Cafe in those markets.
Finally, elsewhere in Southeast Asia, foodpanda has acquired JUST EAT India in India, the
Food Runner-owned City Delivery in the Philippines, Food By Phone in Thailand and EatOye
in Pakistan.

Case Study Foodpanda- the Amazon of food ordering in emerging markets.

Rocket Internet, the tech startup incubator, was founded in Berlin in 2007 by three brothers:
Marc, Oliver and Alexander Samwer. One of the most recognized web services from Rocket
Internet is meal delivery site Foodpanda, which was founded in 2012. Foodpanda’s other
investors include Rocket Internet, Phenomen Ventures, Investment AB Kinnevik and iMENA
Holdings. In 2015, Foodpanda is active in over 580 cities around the world, gets 150,000 unique
visitors every day growing, operating in 12 of the largest 20 metropolises, and partnering with
over 60,000 restaurants.

Foodpanda’s Mission:
The mission of Foodpanda is to give its customers the perfect mix of traditional cuisines from all
over the world. Its partners will be happy to delivery their best pizza delivery, sushi delivery,
Indian cuisine, Chinese food, Greek cuisine and many more. Customers can choose
Mediterranean, Japanese, Healthy, Vegetarian or Vegan cuisine and you can order your most
loved desserts and cakes. It was never so easy to get a dessert a few clicks away and the most
hard to make cake will be at customer’s door. Foodpanda not only to give customers the best
choice of meals, but also to make it fast, easy and convenient. Customer’s food delivery is just a
few clicks away, while they are relaxing and having fun with your friends and family. They can
order their favorite meal at their doorstep and enjoy the food. Foodpanda recommends: Indian
restaurant Kohinoor, pizza Biju,Pizza Verona,Cosa Nostra,Sushito BG,Pizza Siciliana,Bar
Nine,Pizza Palace,Sofistar, pizza restaurant Primavera,Picc adilly(Ruse), restaurant Dragoman
(Var na),La Strada (Ruse)Terms and Conditions.
Foodpanda’s specific mission is to serve people a sumptuous meal without any hassle. It intends
on making food delivery an easy and convenient option for all food lovers.

Foodpanda’s Revenue mode

Revenue comes to Foodpanda by enabling restaurants to bring their menus online and extend
their customer base. Using analysis and user generated recommendations Foodpanda helps
restaurants increase sale. Some other revenue sources are affiliate commission, delivery charges,
sponsorship and advertisement etc. The revenue modes of Foodpanda are given below-
1. Commission from participatory restaurants: The main source of Foodpanda’s revenue
comes from the commission of listed restaurants. (Arpita Arora, Internet marketing
analyst).
2. Delivery charges: Foodpanda earns 40% of its revenue from delivery business according
to Saurabh Kochar, CEO of Foodpanda India.
3. Advertising: Foodpanda earns 10% profit from display ads which is connected with
CPM. Normally it charges advertisement fee for-
a. Page served.
b. Ads unit served per page.
c. Redirecting to pages.
4. Order charges: Foodpanda generates revenue from ordering charges. When an order
placed through the website of Foodpanda, it gets 5-10% of the total prices of ordered
foods.
5. Selling customer habits information: Foodpanda, one of the biggest food delivering
service provider, sells customers habits to the market researchers. It is another source of
its revenue.

These are the main sources or modes of Foodpanda’s revenue.

Proposition of Foodpanda

Core Proposition: The core value proposition of Foodpanda is ensuring customer delight at
every point in the food delivery process. The key message, ‘If Foodpanda likes it, you will love
it’ spells out the fact that anything one orders through the portal has already been screened
through stringent yardsticks of quality to ensure maximum satisfaction. Foodpanda promises to
put every delivery to the 'panda-test'. That means foodpanda ensures quality of food and delivery
of food within right times by their own management.

Some other propositions of Foodpanda

 The cancellation of order can be possible. Cancelation depends on the restaurant one
places the order with. Give them a call and they will help to cancel order.
 One can order from more than one restaurant but unfortunately unable to combine the
orders. Each order must be made and paid for separately.
 The customer will receive a confirmation email from foodpanda, stating the orders they
have selected and the time it will take to be delivered to. Foodpanda will also send a SMS
to keep updated once the restaurant has confirmed order.
  When the receiver is not at home he will receive a confirmation email and a SMS from,
stating the delivery time of order so one will be able to arrange for someone to be home
when the delivery man comes by. Unfortunately, redelivery is not possible.
 If for any reason one is due a refund from foodpanda, the money will be credited back to
them within 3-5 working days from the processing date.
 One can search for Halal restaurants and browse the Halal menus on foodpanda’s
website.

Competitors:
HungryNaki is the main competitor of foodpanda in Bangladesh. Basically both foodpanda and
HungryNaki are aims at delivering the food from the desired restaurant. We can see that
hungryNaki is becoming the main competitor of foodpanda and its aim is also provideing people
with food from their favorite restaurants without having to fight through traffic, bad weather or
wait in queue. They also cater to the lazy ones who never wish to leave their abodes. They make
more than 100 deliveries each day and the number is only increasing. It is an e-commerce
website, which delivers food from restaurants to your doorstep and it’s all just a click away.
Foodpanda is giving a good fight back. HungryNaki is a Bangladeshi business entity whereas
foodpanda is a global server. Here we can say that foodpanda have lots of experience to face the
competition. Another competitor of foodpanda is Delivery Hero which is a Berlin based startup
that operates in almost 14 countries. Delivery Hero has raised around 200 million to date and
claims it has 6 million customers, 55000 restaurants, and 500 million in annual sales in last year.
Another competitor of food panda is Just Eat which is UK based.
Foodpanda made Merger with other competitors in Asian market to remove competition. In
Asian market it makes merger with various competitors.
Expands leadership in India, Malaysia, Singapore, Philippines, Pakistan, Hong Kong, and
Thailand
• In India, acquisition of JUST EAT India, expanding leadership in biggest food
delivery market after acquiring TastyKhana in November
• In Malaysia and Singapore, acquisition of Room Service, a brand of Food Runner
• In Philippines, acquisition of City Delivery, also brand of Food Runner
• In Pakistan, acquisition of EatOye
• In Hong Kong, acquisition of Koziness
• In Thailand, foodpanda enters partnership with Food By Phone

Objectives and Strategies:

Foodpanda’s overall aim is to deliver food to the ends of the Earth before its rivals get there.
More objectives are discussed below in details:
Procurement -acquiring business for accessing a wider customer base, diversification of the
products, services and reducing competition.
Becoming a Market Leader- increasing market share so that it may become market leader of
online food ordering business.
Awareness- increasing awareness of new food brands by 20% in next 6 months.
Encouragement- encouraging customers who haven’t ordered from Food panda recently.
Foodpanda is currently the most globally prominent online marketplace for food delivery, active and
rising in Asia, Europe, Latin America, the Middle East and Africa. By the end of this fiscal, Foodpanda
aims to have a market share of up to 10 per cent of the food-ordering market. The market place growth of
Foodpanda is driven by expanding its services into eight more countries including:

• • Croatia, • • Tanzania
• • Bulgaria • • Uganda
• • Serbia • • Kazakhstan
• • Slovenia • • Azerbaijan

Food Panda’s growth strategy:

The growth strategies for Foodpanda include the following:
• to build qualified and skilled teams
• To collect data on all levels
• To use scalable technologies right from the beginning
• To maximized focus on efficient marketing

Having acquired the trust from experienced investors it will be able to continue its growth
strategy to become a truly global internet brand. Foodpanda takes over Delivery Hero’s
TastyKhana in India, which was started in 2007.Besides this it also acquired the Mexican food
delivery businesses PedidosYa, SeMeAntoja and Superantojo .These acquisitions allow
Foodpanda to extend its market leadership in India and improve strong position in Mexico. So, in
this way it will push its expansion within the existing markets, to gain presence at every corner
of every country they are active in.

It focuses on creating new entrepreneurs as a new CEO in every market it’s in – the way Rocket
Internet does it. Now they’re in 40 markets. They can learn much faster from each other. So its
model is to have an entrepreneur sitting in a country using global standards that they can share to
improve that market.

According to Ralf Wenzel, CEO and Co-founder of Foodpanda, over 90 percent of the food
ordering market is still offline. That means customers prefer making phone calls to place orders.
Wenzel says that changing user behavior is a core thing that both Foodpanda and its competitors
should focus on.

Risk Management of Foodpanda:

The Foodpanda is facing a number of challenges where they can take development initiatives for
managing their risk well and making the business more profitable and competitive in future.
Some major challenges faced by the Foodpanda are as follows:
False Notification System: Foodpanda often shows the restaurant active while they are already
closed (particularly at night) and takes the order and after making the customer waiting for a
while they apologize for their mistakes which is really annoying. More amazingly they often
offer a free voucher for the ordered amount for taking the food from another restaurant so that
the customer is not dissatisfied!
Lose of Transaction: Sometime foodpanda loses the record of transaction. In May 2015 one of
the chain restaurants in Mumbai angrily cut off the contact with Foodpanda as it was not paying
a bill of 1.5 lakh rupees saying that it has no such record of transaction. Often it is also heard that
Foodpanda makes no response after taking the order and does not notify the restaurant regarding
the cancellation of order.
Laws and Regulations: Foopanda needs to face differentiated rules and regulation in different
countries. Many countries patronize local companies and does not facilitates a foreign company
like Foodpanda accordingly rather impose different bans and limit its activities.
Strong Existing Competitors: In many countries where Foodpanda is operating its function has
already got strong competitors like Pizza hut, McDonald and other local food delivery shops. So
Foodpanda needs to fight hard with existing competitors and provide better service at the same
time.
Reluctance to Order Online: Many customers are unwilling to order food via online due to the
bad experience they already faced. Again many customers cannot even use internet to make an
order or they do not possess any debit or credit card to make the payment or they simply assume
it as “complex”.

Foodpanda 2.0
1. 1. FOODPANDA 2.0(MADE WITH LOVE FOR INDIA)
2. 2. BACKGROUND •The foodpanda group is a global mobile food delivery marketplace
headquartered in Berlin, Germany, and operating in 24 countries and territories, including
India, Pakistan, Russia, Bangladesh, Hong Kong and Singapore. •The service allows users
to select from local restaurants and place orders via the mobile application as well as the
website. •The company has partnered with over 40,000 restaurants.
3. 3. EXECUTIVE SUMMARY
4. 4. The online food ordering business is witnessing exponential growth. The organised food
delivery is valued at $15 billion in India. Foodpanda entered the Indian market owing to its
tremendous growth potential. The food reatil market in India is expected to reach $894.98
billion by 2020 Also, the grocery market in India is expected to touch $1 trillion by 2020 and a
significant portion of the market shall be occupied by the online grocery stores. SITUATION
OVERVIEW
5. 5. GOALS • The company is expected to occupy 15% of the online food delivery market(in
India) by 2017. • To make India a profitable market by 2019. • To maintain its position as the
market leader in the online food delivery business(in India). • To occupy 20% of the online
grocery delivery market by 2020.
6. 6. How will it happen??? • Introduction of a new fremium version of the app(with improved
services) . •Striking differences between the free and the paid versions • Collaboration with
multiple supermarkets. • Collaboration with a larger no of restaurants .
7. 7. SITUATION ANALYSIS
8. 8. COMPANY OVERVIEW • The company initially entered the food delivery business and
seeing the market potential intends to start its online grocery delivery business (in India
first) . • Foodpanda is the market leader in the online food delivery business in India. •
Foodpanda occupied Just Eat and Tasty Khana to expand their scale of operations in India.
9. 9. MARKET OVERVIEW • Zomato and Swiggy are the main competitors. • Foodpanda has
collaborated with many restaurants and major collaborators are Dominoes and MacDonalds
in India (as restaurants) and Paytm and PayUMoney for payment purposes. •Foodpanda 2.0
will reach out further to the young population who value time more than money and thus we
plan to introduce an online grocery delivery store.
10. 10. TARGET CUSTOMERS • All the people who want to try food of different cuisines/ from
different restaurants. • Demographically , the young population who percieves time as a
more valuable asset than money. •Geographically, urban and semi-urban population, sec
A ,sec B and sec C. •Physcologically, experiencers and achievers.
11. 11. ACTION PLAN
12. 12. GOALS • The food delivery segment will continue to be the major revenue generation
source and by 2019,the company is expected to start earning profits(in India). • The
company is expected to occupy 20% of the online grocery delivery market and earn a net
revenue of $40 million from the same by 2020. • By 2017, the company is expected to
occupy over 15% of the total food delivery business in the country. By 2020, the expected
percentages are over 23%.
13. 13. TARGET MARKET CUSTOMERS : • Access to a larger number of cuisines. • Access to
a larger number of restaurants. • Cheap/inexpensive food. • Better time management. • Ease
of access to daily needs.
14. 14. COLLABORATORS: • Local restaurants : They want increased consumer traffic. •
Grocery stores: They want to increase their net revenue via increased consumer traffic . •
Payment partners: They want a larger amount of cash to flow through their channels for
every ‘cashback’ offers they provide.
15. 15. COMPANY: • The delivery service is the primary offering . • The majority stakeholder is
Rocket Internet and they hold 52% share. • Recent investment of $100 million by Goldman
Sachs. •The online grocery delivery business will involve hiring more sales personnel and
delivery guys to manage the ever increasing traffic.
16. 16. COMPETITORS: • ZOMATO and Swiggy •Local competition. •In India, the company
acquired Just Eat and Tasty Khana ; the local competition. • In the online grocery delivery
venture , the company is expected to face a few existing players in the venture such as
Grofers & BigBasket in India.
17. 17. CONTEXT: •Indian market has one of the highest potentials in the world,economically.
•Demographics constitute young population who are experiencers and want to see
themselves as achiever. • The increasing value of time over money has created new
opportunities. • However, India is yet to adapt wholly to the new technological reforms.
18. 18. VALUE PROPOSITION CUSTOMER VALUE VALUE PROPOSITION: • Quickest
delivery • Large no of restaurants to choose from. • Greater discounts. • Separate platform
for customer reviews. • Price compare among the various grocery stores. • Free delivery* • A
number of payments options to choose from.
19. 19. POSITIONING STRATEGY: • Highlighting the POD more than the POP as POPs are
well known. • Marketing strategies to effectively convey the differences between the premium
 and free offerings. • Using a corporate umbrella branding strategy to launch the new app and
to launch the online grocery store.
20. 20. POSITIONING STATEMENT: “ Foodpanda 2.0 provides its customers the access to a
large no of restaurants , grocery stores and provides home delivery services better than
anyone else because we believe customer satisfaction is the only thing which builds a
company and we owe it to you. We provide you this with the help of our trusted
collaborations and our dedicated team.”
21. 21. COLLABORATOR VALUE VALUE PROPOSITION: • Increased customer traffic. •
Increased net worth. • Increased market share. • increased possibility of expansion.
22. 22. COLLABORATOR VALUE POSITIONING STRATEGY: • Positioning highly rated
restaurants on top of the search results. • Trade promotions. • Reduced commissions to pay.
• Greater discounts By Foodpanda(not the grocery stores/restaurants)to attract customers. •
Greater discounts by Foodpanda if customers pay through specified wallets thus increasing
customer traffic for the payment channels.
23. 23. COLLABORATOR VALUE POSITIONING STATEMENT: “Foodpanda 2.0 promises to
provide its collaborators growth and consumer traffic beyond expectations. We do this by
constantly evaluating and updating our marketing strategies to cope up with the needs of the
new customer and at the same time looking for the intersets of the collaborators and
stakeholders.”
24. 24. COMPANY VALUE VALUE PROPOSITION: • Expansion into newer markets. •
Establishment of a diverse brand portfolio. • Increased revenue generation. • Greater
oppurtunities for breaking the ‘stereotypical ’ image a firm’s brand/ any brand has.
25. 25. COMPANY VALUE POSITIONING STRATEGY: • The company’s stakeholders shall be
identified in all the trade promotions. • All the stakeholders(having 5% share or more)shall
have atleast 1 representative in the board . • All the channel conflicts will be resolved by the
company themselves. • If any stakeholder wishes to release its stake, the terms for the same
will be convinient and beneficial for both the company and the stakeholder.
26. 26. COMPANY VALUE POSITIONING STATEMENT: “Foodpanda 2.0 promises to provide
its collaborators growth and consumer traffic beyond expectations. We do this by constantly
evaluating and updating our marketing strategies to cope up with the needs of the new
customer and at the same time looking for the intersets of the collaborators and
stakeholders.”
27. 27. TACTICS
28. 28. SERVICE FREE APP AND PAID APP
29. 29. FREE APP • Free delivery (for food/grocery) within a 4 km radius. •Beyond 4 km radius ,
delivery charges will be nominal. •Food Delivery after 55 mins(within 4 km) will result in a
discount of 4% every 10 mins (provided they pay via wallets). • A fixed nominal(rs 20) fee to
be charged for every online grocery delivery.
30. 30. FREE APP •A no of payment options(COD available) • Larger no of restaurants to
choose from, more than the original Foodpanda app. • Better deals/greater discounts. •
Amazing cashback deals. • Referral benefits(rs 5 worth talktime). • Separate customer
review platform. • Cost= rs. 0
31. 31. PAID APP • Free delivery (for food/grocery) within a 9 km radius. •Beyond 9 km radius ,
delivery charges will be nominal. •Food Delivery after 55 mins(within 7 km) will result in a
discount of 10% every 10 mins (provided they pay via wallets /debit/credit cards). • No fee to
be charged for online grocery delivery.
32. 32. PAID APP •A no of payment options(COD available). • Larger no of restaurants to
choose from, more than the original Foodpanda app. • People using the paid version shall
earn credits for every transaction which can be used for discounts.
33. 33. PAID APP •A minimum 7-8% discount available on all restaurants. • Better cashback
deals than the free app. • rs.12 (worth talktime) for every referral. • Separate customer
review platform. • Costs to be discussed.
34. 34. BRAND
35. 35. NAME : FOODPANDA 2.0 (so less additional markeing expense for brand
recognition/announcing category membership.) LOGO: SYMBOL: A Foody Panda BRAND
MEANING: Foodpanda 2.0 gets you food as well as gets you the materials for a good
preparation.
36. 36. PRICE
37. 37. PRICE FREE APP= $0 PAID APP=$2.5/MONTH (TRIAL) =$10/6 MONTHS =$18/1
YEAR These are the prices for the customers only.
38. 38. INCENTIVES
39. 39. INCENTIVES CUSTOMERS: • All the price reductions for the paid users and free users
have been mentioned in the earlier slides. COLLABORATORS: • Recognition of all the
collaborators in trade promotions. • Marketing strategies by the company to increase
consumer traffic on collaborators’ platform.
40. 40. INCENTIVES COMPANY: • Medical benefits • Bonuses on regular intervals. • Employee
recognition program. • Recreational facilities within the company campus. • Inexpensive food
within the premises.
41. 41. COMMUNICATION
42. 42. COMMUNICATION • Customer oriented • Collaborator oriented • Company oriented
43. 43. CUSTOMER ORIENTED • Social media campaigns
44. 44. • ONLINE CONTESTS
45. 45. • TRADITIONAL ADVERTISING
46. 46. • WORD – OF – MOUTH MARKETING
47. 47. • DIRECT MARKETING
48. 48. COLLABORATOR ORIENTED • TRADE SHOWS FOR RESTAURANTS
49. 49. •Trade allowances for COLLABORATORS
50. 50. COMPANY ORIENTED • FOR STAKEHOLDERS • MEETINGS
51. 51. • SPORTING EVENTS
52. 52. • MUSICAL CONCERTS
53. 53. FOR COMPANY PERSONNEL • TOURS
54. 54. • SALES CONTESTS
55. 55. IMPLEMENTATION
56. 56. INFRASTRUCTURE
57. 57. INFRASTRUCTURE • Sales team : responsible for sales promotion tools management
and to maintain healthy relationships with collaborators. •Marketing team : responsible for
devising an effective marketing strategy and managing mass communication tools.
58. 58. INFRASTRUCTURE •Management team : responsible for managing the entire company
ops and to maintain healthy relationships within the company and with the stakeholders and
collaborators. •Technical team: App management and handling the entire online platform of
the company.
59. 59. INFRASTRUCTURE •PR team : They evalaute the people’s responses to a change or a
proposed change in the development of the company. They also manage the human
resources within the company. • Delivery guys : The ‘heart & soul’ of the company.
60. 60. BUSINESS PROCESSES
61. 61. Business Processes The 2 primary business processes are • Ordering • Delivery Online
food delivery companies generally try to enrich their services with 4 conviniences.
62. 62. Business Processes •Decision Convenience – Making it fast and easy to choose.
•Transaction Convenience – Making it fast and easy to pay. For eg. payment via cards,
Paytm accounts or wallets like PayUMoney.
63. 63. Business Processes • Benefit Convenience – Making it fast and easy to enjoy/use. •Post-
Benefit Convenience – Making it fast and easy to re-purchase. For eg. You can save your
address and payment details, bookmark your favorites to re-order in seconds.
64. 64. SCHEDULE
65. 65. SCHEDULE •Foodpanda 2.0 should be released by October 2016. •The initial marketing
activities for for customer recognition should begin by August 2016. •The mass
communication programs should begin soon after the app is released.
66. 66. SCHEDULE •The expansion of the delivery services should be finished by August 2017.
•A preliminary model of the new app should be released alongside the customer recognition
program. • Updates to the app to be scheduled regularly.
67. 67. CONTROL
68. 68. PERFORMANCE EVALUATION
69. 69. PERFORMANCE EVALUATION • To increase the no of downloads of the app in the
Indian market to over 2 million within 1.5 years. • The introduction of the paid version can be
called successful if 10% of the downloaders upgrade to it (in the Indian market). • The online
grocery store venture should occupy 7-8 % of the market by the end of 2017.
70. 70. RECAP
71. 71. • Title slide • Background • Executive Summary • Situation overview • Goals • How will it
happen ?? • Situation Analysis • Company Overview • Market Overview • Target Customers •
Action Plan • Goals • Strategy • Target Market • Customers • Collaborators • Company •
Competitors • Context • Value Proposition • Customer Value • Collaborator Value • Company
Value • Tactics
72. 72. • Tactics • Service • Brand • Price • Incentives • Communication • Implementation •
Infrastructure • Processes • Schedule. • Control • Performance evaluation
73. 73. DISCLAIMER These slides were created by Shreyans Hinger , under the guidance of
Prof. Sameer Mathur , under a summer internship mentored by him.