food.2home.in: a marketing strategy for targeting corporate customers (ppt)
DESCRIPTION
Food.2Home.in is a online food ordering web-portal by Ictoban Online Services Pvt. Ltd. which is a startup by three IIMA grads of the 2009 batch. This presentation gives a brief description of the project that was conducted by me as a part of my summer internship.TRANSCRIPT
MIP Presentation: Food.2Home.in: A Marketing Strategy
for targeting corporate customers
MIP Presentation: Food.2Home.in: A Marketing Strategy
for targeting corporate customers
Company Name: Ictoban Online Services Pvt. Ltd.
Presented By: Mr. Kunal Madkaikar
Faculty Guide: Prof. Jaba M Gupta
Industry Guides: Mr. Nirmesh Mehta/Mr. Aravind R S
Presentation Flow
IntroductionObjectivesMethodologyPhase 1: Company and Industry AnalysisPhase 2: Exploratory ResearchPhase 3: Descriptive ResearchPhase 4: Analysis and RecommendationsScope for further study
Introduction to ICTOBAN Online Services Pvt. Ltd.
Startup firm by three IIMA graduates from the 2009 batch.
Two Independent Businesses: Food ordering website (Food.2Home.in) Management Consulting
Food.2Home.in: Online food ordering website. Operating in three cities (Ahmedabad, Mumbai and
Manipal) Completed one year of operations in May 2010. Customer base: 1400 customers
Objectives
Aim: To device a marketing strategy to get the corporations
/ employees who order food by telephone to switch to Food.2Home.in.
Objectives for fulfilling the aim: To understand the business and perform a Company
and Industry analysis. To conduct marketing research to understand food
ordering habits and patterns of corporations.
Methodology
The project was executed in the following Four Phases: Phase 1: Company and
Industry Analysis Porter’s Five force Framework SWOT Analysis Telephonic survey of current
customers New Customers Regular Customers Irregular Customers Lost Customers
Phase 2: Exploratory Research Phase (Qualitative) Four Focused Group
Discussions with corporations in Ahmedabad.
Phase 3: Descriptive Research (Quantitative) Questionnaire was
administered to 234 Corporate Employees belonging to 150 companies across 10 different cities.
Modes of questionnaire administration Personally Online
Phase 4: Analysis and formulation of Marketing Strategy Cross Tabulation Factor Analysis
Phase 1: Company and Industry Analysis
4 P Analysis
Product Website
Website Features User Interface
Service Food Attributes: Freshness,
Warmth Delivery Attributes: On-time
delivery, Packaging Confirmation Calls
Price Prices of the Food items:
Controlled by the restaurants Service to Customer: Free of
cost Service to Restaurants:
Commission Based
Placement Deliveries: Handled by
Restaurants Orders are transferred to
the restaurants via SMS Conformation calls made to
the Customers Promotion
Financial Constraints Word of mouth promotion
by satisfied customers Newspaper Articles, Fliers Posters in associate
restaurants Banners in cinemas
Business Model: Value creation through Complementarities
Restaurant
Supplier(Hosting Agency)
Customer
Food.2Home.in (Agent)
Porter’s Five Force Framework
Threat of Entry: High Low customer switching cost Low Capital requirement Low scale independent incumbency
advantage Easy access to existing chain of restaurants
Threat of Suppliers: Low Low cost of switching the hosting agent
Threat of Buyers: High Restaurant’s switching cost: Medium Buyer backward integration Lack of regular updates Low priority to website
Threat of Substitutes: High Buyer: low cost of switching to substitutes Presence of alternative : e.g. Just Dial
Threat of Rivalry: Low Low exit barrier Products are heterogeneous Highly fragmented market Rival websites: HungryZone.com,
BookMyKhana.com, WebDhaba.com, mhungry.in
Threat of Rivalry(Low)
Threat of New Entrants(High)
Threat of Buyers(High)
Threat of Substitutes
(High)
Threat of Suppliers
(Low)
Overall Threat: Medium to High
(Sources: www.WhatBlog.com, www.merosys.com, www.ehow.com)
Existing Customer Feedback: Telephonic Interviews
Objective: Problems faced with the service Features missing with the site Source of introduction to the
website Methodology:
Classification: New, Regular, Irregular and Lost customers
10 Customers from each class were selected for the telephonic interview based on judgmental sampling
Facts: 3324 Orders from July 2009 to
March 2010 Total revenue: Rs. 9031o Average of Rs. 27 per order Customer Lifetime Value: Rs. $42
Observations: Positives: User-friendly
Interface Problems Faced:
Late Deliveries Improper packaging Stale food delivered Price mismatch Menu items no longer served Too many steps to order
(Cumbersome process) Sources of introduction:
Friend Referrals (29.4%) Newspaper (23.5%) Posters in restaurants
(17.6%)(Among others)
SWOT Analysis
Phase 2: Exploratory Research
Focused Group Discussions
Objective was to understand: Social and behavioral aspects linked to food
consumption in offices. Motivating factors affecting food ordering decisions. Expectations from a food ordering service.
Methodology FGD Moderator’s guide was prepared 4 firms were identified using convenience sampling. Appointments were taken to conduct FGD in office
premises. Discussions ranging from 45 minutes to 1 hour were
conducted
Major Takeaways from FGD
Identified two distinct customers Individual Orders: Employees Bulk Orders: Office/Team
Celebrations Bulk orders:
HR Department Administration Department Senior Executives
Situations when food was ordered in the office were identified. Lunch Evening snacks Office parties Team parties (Among others)
Typical office policies on food reimbursement were identified.
Factors affecting individual ordering were identified Variety Time Discounts (Among others)
Expectations from food delivery service were identified Quick order facility Tie-up with quality restaurants Descriptive Menus Specialty Items Price Comparison (Among
others)
Phase 3: Descriptive Research
Questionnaire
Scope of the survey: Administered personally in
Ahmedabad (Number of responses = 100)
Online responses (10 cities) Sampling Method:
Personally Administered Survey: Convenience Sampling
Online Survey: Snowball Sampling
Sample Size: Factor Analysis:
No of observations/ No of dependent variables = 10/1No of dependent variables = 11Thus, Sample size > 110People surveyed = 240
Sections: Introduction Individual food ordering
preferences Lunch Related Office Policies Demographic Information
Phase 4: Analysis and Recommendations
Individual Orders by Employees
Lunch ArrangementsWhat are your current lunch arrangements in the
office?Total Percentage
At canteen inside commercial complex 2 0.85%Have lunch at home 1 0.43%I carry home cooked food 134 57.26%I eat at a restaurant outside the office 26 11.11%I have enrolled for a tiffin service 16 6.84%I order food to the office from outside restaurants 15 6.41%My office provides me food at subsidized rates 38 16.24%My office provides me food, but not at subsidized rates 2 0.85%
Grand Total 234 100.00%
What are your current lunch arrangements in
the office?
What are the typical situations when you order food to be delivered at your desk?
Daily lunch (I order almost on a
regular basis)Dinner Don't Order Evening
SnacksOccasional
lunchWorking late
at officeGrand Total
At canteen inside commercial complex 0.00% 0.00% 0.00% 50.00% 50.00% 0.00% 100.00%
Have lunch at home 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 100.00%I carry home cooked food 0.51% 0.51% 7.18% 22.05% 44.10% 25.64% 100.00%
I eat at a restaurant outside the office 8.57% 0.00% 2.86% 11.43% 48.57% 28.57% 100.00%
I have enrolled for a tiffin service 28.57% 0.00% 9.52% 9.52% 28.57% 23.81% 100.00%
I order food to the office from outside restaurants
17.39% 0.00% 4.35% 21.74% 43.48% 13.04% 100.00%
My office provides me food at subsidized rates
0.00% 0.00% 0.00% 0.00% 50.00% 50.00% 100.00%
My office provides me food, but not at subsidized rates
0.00% 0.00% 0.00% 0.00% 50.00% 50.00% 100.00%
Typical Ordering SituationsWhat are the typical situations when you order food to be delivered at your desk?
Number of responses Percentage
Daily lunch (I order almost on a regular basis)
14 6.0%
Evening Snacks 64 27.4%
Occasional lunch 144 61.5%
Working late at office 95 40.6%
Don't Order 21 9.0%
Total Responses 234
What are the typical situations when you
order food to be delivered at your desk?
How many times per month do you order food to your desk?
Less than 2 times
2 to 5 times 6 to 10 timesMore than 10
timesDon't Order Grand Total
Daily lunch (I order almost on a regular basis)
0% 7.14% 7.14% 85.71% 0% 100%
Evening Snacks 14.06% 46.88% 28.13% 10.94% 0% 100%
Occasional lunch 22.38% 54.55% 16.78% 6.29% 0% 100%
Working late at office 28.42% 54.74% 10.53% 6.32% 0% 100%
Don't Order 0% 0% 0% 0% 100% 100%
Note: The percentage values do not add to zero since the question was multiple choice question
Factor Analysis
Q. Think of a situation in the recent past when you placed an order for food to be delivered to your office. Keeping this situation in mind rate the following statements based on how much you agree / disagree with the statements.
Strongly Disagree
Disagree
Neutral
AgreeStrongly Agree
I seek a different restaurant every time I place an order.
I like trying new dishes / cuisines. I like to try restaurants that are recommended by friends
and family. I like ordering food from restaurants that have received
good customer reviews in newspapers and magazines. I only order food from restaurants that have delivered food
on time in the past. I only order food from restaurants that are close to my
office. I do consider discounts offered by the restaurants while
placing the order. I do compare prices of different restaurants while placing
the order. I prefer that restaurants mention their specialty items in
the menu cards. I would prefer ordering food from restaurants with
descriptive menus mentioning the ingredients along with the food items.
I do give importance to the restaurant brand while placing an order.
Factor AnalysisKMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .588
Bartlett's Test of Sphericity Approx. Chi-Square 229.355
df 28
Sig. .000
Communalities
Initial Extraction
Recomended_Restaurants 1.000 .765
Customer_Reviews 1.000 .720
Ontime_Delivery 1.000 .677
Proximity_to_Office 1.000 .661
Discounts 1.000 .758
Compare_Prices 1.000 .764
Speciality_Items 1.000 .676
Descreptive_Menus 1.000 .672
Extraction Method: Principal Component Analysis.
Rotated Component Matrixa
Component
1 2 3 4
Recomended_Restaurants .125 -.072 .845 .172
Customer_Reviews -.009 .274 .794 -.121
Ontime_Delivery -.060 .204 -.008 .795
Proximity_to_Office .152 -.151 .062 .782
Discounts .844 .182 .107 .030
Compare_Prices .869 .074 .012 .060
Speciality_Items .150 .794 .061 -.137
Descreptive_Menus .106 .780 .102 .204
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
Note: The four factors explain 71.164% of the total variance
Factor Analysis
Factor Factor Name Components Average Factor Average
1 Referral Recomended_Restaurants 3.95
3.637Customer_Reviews 3.32
2 ReliabilityOntime_Delivery 3.77
3.718Proximity_to_Office 3.66
3 PriceDiscounts 3.64
3.506Compare_Prices 3.38
4 Value Added Features
Speciality_Items 3.46
3.511Descreptive_Menus 3.56
Observation: Priority given to the different factors is as follows1. Reliability2. Referral3. Value added features4. Price
Recommendations
Changes in the Product: Measures to improve reliability factor:
Tie-up with quality restaurants. Tighter control over Restaurants by strengthening the contract clauses.
Introduce value added services such as: Descriptive menus mentioning the food ingredients. Saving order history for reference and expenditure tracking. Saving you favorite order for one click order placement.
Changes in Promotion: Measures to improve online promotions:
Introduce a friend referral system on the website. Food ordering is a high involvement buying behavior. Web 2.0 interface can
be used to make the site more interactive by introduction of food related discussion forum.
Introduction of loyalty programs (e.g. registered customers would get loyalty points on each order which can be traded for discounts/prizes.)
Bulk Orders by Corporations
Industry Details
Advertising5%
Airline1%
Automotive1%
BPO3%
Consulting11%
Finance17%
Healthcare3%
Human Resource1%
Infrastructure5%
Insurance3%
IT services27%
Manufacturing5%
Marketing and Sales3%
Media2% Others
10%
Retail1%
Telecommunications3%
Traders1% Industry Split
234 Responses 150 Companies 10 different cities
Typical Situations For Ordering Food
Office Parti
es
Team Parties
Festival C
elebrations
Birthday Celebrations
Conferences
Client M
eetings
Working La
te0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
62.00% 59.33%
30.00%
64.00%
34.67% 35.33%
66.00%
Typical situations for ordering food
Percentage
Note: The percentage values do not add to zero since the question was multiple choice question with checkbox.
Ordering Responsibility Details
Consensus of office staff
HR Department
The Receptionist
A Senior Executive of the company
Admin
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0
62.7
29.3
12.0
6.0
2.0
Percentage
Note: The percentage values do not add to zero since the question was multiple choice question with checkbox.
Observation: HR, Receptionist and Senior Executives were the major decision makers while placing the orders.
Reimbursement Policies
Does your office reimburse the food
expenses (or provide food
coupons) incurred during overtimes (or when working
late)?
Number of companies
Percentage
Yes 91 60.67%
No 59 39.33%
What are the limitations that are applied to such
orders?
Number of Companies
Percentage
There is an upper limit to amount that can be reimbursed in one order.
49 32.67%
There is an overall cap on the total amount that can be reimbursed in a month.
14 9.33%
This facility is only available to senior position employees.
7 4.67%
There are timing restrictions (E.g. Reimbursement will be provided to employees working after 8pm).
31 20.67%
Such facility can be availed only a limited number of times during a month.
8 5.33%
No Limitation 9 6.00%
Factor Analysis For HR and Administration Dept.
Rotated Component Matrixa
Component
1 2 3
Different_Restaurant .135 .006 .787
Recomended_Restaurants -.068 .332 .719
Ontime_Delivery .793 -.022 -.299
Proximity_to_Office .111 .428 -.594
Discounts .050 .826 .107
Compare_Prices .016 .907 -.015
Speciality_Items .713 -.009 .334
Descreptive_Menus .829 .118 .019
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .516
Bartlett's Test of Sphericity Approx. Chi-Square 68.077
df 28
Sig. .000
Communalities
Initial Extraction
Different_Restaurant 1.000 .637
Recomended_Restaurants 1.000 .632
Ontime_Delivery 1.000 .718
Proximity_to_Office 1.000 .548
Discounts 1.000 .697
Compare_Prices 1.000 .822
Speciality_Items 1.000 .621
Descreptive_Menus 1.000 .701
Extraction Method: Principal Component Analysis.
Note: The four factors explain 67.2% of the total variance
Factor Analysis For HR and Administration Dept.
Factor Factor Name Components AverageFactor
Average
1Variety and Proximity
Different_Restaurant 3.05
3.625
Recomended_Restaurants 3.975
Proximity_to_Office 3.85
2 Service
Ontime_Delivery 3.825
3.675Speciality_Items 3.725
Descreptive_Menus 3.475
3 PriceDiscounts 3.95
3.8Compare_Prices 3.65
Observation: Priority given to the different factors is as follows1. Price2. Service3. Variety and Proximity
Recommendations
Changes in the Product: Introduce corporate login accounts with facilities such as:
Individual login for employees Cap on expenditure per order Overall monthly expenditure cap per employee Time restrictions on order Expense tracker for the company
Advanced price comparison of the bulk orders for HRs and Admins.Changes in Promotion:
Advertising strategy should be Cognitive-Affective-Behavioral Cognitive: Highlight all the new features introduces and their
benefits. Affective: Keep a limited period free trial Behavioral: Acceptance and Recommendations. Highlight the good
recommendations received on the website.
Scope For Further Study
Confirmatory Factor Analysis using Structural Equations Modeling
Analysis of various Advertising channels and recommending the most feasible options.
The End
Thank You!!!