advertising campaign planning advertising campaign planningdeliveroo the safe box

Executive summary Deliveroo is a UK-based online food delivery service.. Keeping customers at its core, Deliveroo always strivesfor customer satisfaction and aims to bring great food to

Tutor:

ID:

Word count: 2882

ADVERTISING CAMPAIGN PLANNING

DELIVEROO: “THE SAFE BOX”

Executive summary

Deliveroo is a UK-based online food delivery service "The safe box" is the advertisingcampaign for Deliveroo under the COVID-19 pandemic in the next three months The targetaudience of this campaign is young professionals living in the UK's large and urban cities

In the internal context, Deliveroo's financial constraint, brand identity, and its marketingexpertise will be presented The external context will be a PEST analysis of Deliveroo'sexternal environment

The campaign planning also shows Deliveroo's objectives and brand positioning and propose

a 3P communication strategy which is in line with that The campaign uses 3 different mediachannels to reach its communication objectives Additionally, media scheduling, budgetplanning, and performance evaluation are also stated in this campaign planning

1 Introduction 4

2 Context analysis 5

2.1 Customer context 5

2.2 Business context 7

2.3 Internal context 9

2.3 External context 10

3 Communication objectives and positioning (Safety) 12

3.1 Communication objectives 12

3.2 Positioning 12

4 Audience communication strategy (3Ps) 12

4.1 Pull: customer 12

4.2 Push: corporate customer 13

4.3 Profile 13

5 Advertising media 13

5.1 Media 1: Digital media - Social media 13

5.2 Media 2: Digital media – Email marketing 14

5.3 Media 3: Digital media – Website and App 14

6 Implementation, control and evaluation 15

6.1 Implementation (media scheduling) 15

6.2 Budget allocation 15

6.3 Evaluation 16

7 Conclusion 18

8 Reference List 19

1 Introduction

Deliveroo is the branded name of Roofoods Limited, an online food delivery, based in the

UK (MarketLine, 2020a) The company provides a wide range of food, from fast-food tonutritious dishes Different from its competitors, the company offers its restaurant partnersdata on market and customer insights and helps them set up kitchens in areas of more demand(MarketLine, 2020b) Restaurants who partner up with Deliveroo can see their revenueincreased by 30% (Deliveroo, 2020) Keeping customers at its core, Deliveroo always strivesfor customer satisfaction and aims to bring great food to customers as fast as possible, in lessthan 30 minutes (Deliveroo, 2020)

Deliveroo is currently operating in Australia, Belgium, France, Germany, Hong Kong,Ireland, Italy, the Netherlands, Singapore, Spain, the UAE and the UK, in which the UK is itsheadquarter as well as its largest market (MarketLine, 2020b)

Deliveroo's biggest direct competitors in the UK are Just Eat and Uber Eats Just Eat is themost-used food delivery service while Uber Eats has grown rapidly in the last two years, andtaken Deliveroo's second position in November 2019 (Mintel, 2020)

The UK online food delivery market is highly potential It generates about US$4,869m in

2019 and is expected to make US$5,429m in 2020, with an annual growth rate of 6.5%, from

2020 to 2024 (Statista, 2019a) The number of users of the platform-to-consumers sectors isalso projected to grow considerably, from 8.4m in 2019 to 11.6m in 2024 (Statista, 2019b)

2 Context analysis

2.1 Customer context

2.1.1 Target audience profiling

Deliveroo, like other intermediaries in the online food delivery sector, has two equallyimportant target audiences: which are the customers and the restaurants (Marketing Society,2013) However, this report will focus on Deliveroo's B2C business only as this specificmarketing campaign target customers, rather than restaurant partners Different from itscompetitor, Just Eat, Deliveroo serves more high-end food, targeting urban eateries (ProactiveInvestors, 2018)

 Age: Ideally 25 – 34 (Marketing Society, 2013) or Millennials, who uses the onlinefood delivery service the most (Statista, 2019c and Global Web Index, 2020)

Figure 1: The age distribution of users in the online food delivery market

Source: Statista, 2019c

 Gender: The number of female customers, accounting for 52.5%, is 5% higher thanthat of male (Statista, 2019c).

 Occupation: web-savvy young professionals (Marketing Society, 2013)

 Income: earning over £50,000 (Mintel, 2020)

 Location: 83% of customers are city dwellers (Mintel, 2020)

 Lifestyle: Younger professionals and metropolitan professionals form an Internetgeneration who respond quickly to advertising, and spend more than 3 hours a dayonline They access the Internet and download apps mostly related to travel, lifestyle,finance, news, and entertainment (Acorn, 2020a) They share news and opinions onsocial and recently shopped at stores like John Lewis and Waitrose (Acorn, 2020b)

2.1.2 Levels of awareness, perceptions and attitudes towards the brand

In November 2019, Deliveroo has grown its users by 10% comparing to the previous period(Mintel, 2020) While its competitor, Just Eat, is favoured by over 45 years old small towners,Deliveroo is preferred by young consumers in large towns, or cities (Mintel, 2019)

Taste, price, and convenience are the top three reasons for people to order food while dataprivacy is their number 1 concern when using a third-party app online (Global Web Index,

2020 and Deloitte, 2019) 47% of customers interest in buying supermarket items from onlineapps and 30% of them are willing to join a subscription (Mintel, 2020)

2.1.3 Decision-Making Unit

62% of Deliveroo target consumers use Instagram (Ofcom, 2019)

Figure 2: Deliveroo’s decision-making units

Source: Adapted from Kotler (2010, non-paginated)

2.1.4 Target market consumption of advertising/ media usage

Media usage share of Deliveroo accounts for 15%, ranks third among third-party fooddelivery apps (Statista, 2019d)

Figure 3: Media usage share in the online delivery food sector

Source: Statista, 2019d

Deliveroo’s catering services targets

corporate consumers, e s

80% of users do not change

their platform (Mintel, 2020) Deliveroo’s target customers are influenced by the Internet, mostly

Taste, price, and convenience are the

ant factors (Deloitte, 2019).Deliveroo

Brand comms

Influences

InitiatorsBuyers

User

94% of Deliveroo’s target audience has social media profiles They are the most active agegroup on Facebook, with around 11.2 million users in 2018 (Statista, 2020a) WhatsApp,Instagram, Youtube are the next most used social platforms, account for 64%, 62%, 54%,respectively (Ofcom, 2019) 61% of people in their 25 – 34s consider Facebook to be theirmain account Email (79%), social media (61%), radio (36%), and TV (34%) are the topactivities that they use the Internet for (Ofcom, 2019).

far-2.2.2 Competitor analysis: competitor brands positioning

Deliveroo’s largest indirect competitors are Dominos, KFC, and PizzaHut while its mainrivals are the similar third-party platforms like Just Eat, and Uber Eats (Similar web, 2020).The online food delivery sector is getting more competitive as new names such as Slerp(2019), COFE (2020) entering the market (Mintel, 2020c)

In terms of branding, JustEat expected to turn itself into a "rebellious challenger brand" in itsfirst overhaul of global brand positioning (Marketing Week, 2012) In its 2016 rebrand, thecompany wanted to add "discovery" and "excitement" to the brand (Design Week, 2016)

Along with the rebrand, Just Eat announced its new vision of "creating the world's greatestfood community" (Insider, 2016) Via its recent marketing campaigns such as "Did somebodysay just eat", directed by McCann, the company aimed to "make Just Eat synonymous withtakeaway delivery" (The Drum, 2018).

 Uber Eats:

The company operates mostly in large, urban areas (Blomberg, 2018a) Powered by theworld's largest ride-hailing company, it has a vast army of drivers, great technology, andlogistics expertise, comparing to its competitors (Blomberg, 2018b and Wired, 2020).Leveraging the power of Uber, the company has added a link to Uber Eats on the main Uberapp page and soon combine Eats and Rides into one app version (Forbes, 2019) It means thatpeople can order a meal without downloading the app Meanwhile, Uber Eats can utilizeUber's current customers (Luna and Jennings, 2019) In terms of marketing communications,Uber Eats has recently launched its first integrated brand campaign in the UK, "Bring It",using a humorous approach to showcase its wide range of restaurant partners (The Drum,2020)

2.2.3 Deliveroo’s competition position

Deliveroo is currently at the third position with 33% of the share of the UK food deliverymarket, closely following its competitor, Uber Eats, with 35% of market share (Mintel,2020) In a 2018 interview, Deliveroo's former Chief Technical Officer, Mike Hudackrevealed the company ambition is to be the market leader in the next five years He wanted tomake the brand that represents food just like what Spotify is for music (The Next Web, 2018)

2.3 Internal context

2.3.1 Financial constraints

Deliveroo is the fastest-growing company in Europe in 2018, with its revenue increased byover 100,000 between 2013 and 2016 (Financial Times, 2018) In September 2017, Deliveroobecame a unicorn, with a value of $2 billion (Business of Apps, 2020) At the moment,Deliveroo has gone through 8 funding rounds, with total funding of $1.5 billion Its mostrecent funding raised $575million from Amazon (Crunchbase, 2020)

Deliveroo does not yet make any profit, however, its loss margin has felt from 72% in 2017

to 49% (around £232 million) in 2018 Its revenue structure is from commission per order,signing up fees from restaurants; user fee at £2.50 per order or per monthly (£ 8.99) orannually (£89) subscription; and packaging fee while its main cost is the delivery cost(Mintel, 2020b)

2.3.2 Organisation identity

Deliveroo keeps customers at its core (Deliveroo, 2020a) To them, customers are drivers,restaurants, and consumers The company values teamwork, diversity, and equity (CareerDeliveroo, 2020) They want each employee to work with an entrepreneurial mindset toembrace change, think big, and make great ideas happen (Deliveroo, 2020b)

2.3.3 Marketing expertise and brand positioning

Deliveroo often works with advertising agencies on a project basis Its first TV campaign wascreated by Fallon in 2017 and first global campaign, “Food Freedom” was directed byWieden & Kennedy London in 2019 (Campaign Live, 2019a) The campaign highlighted thehappiness from getting food however and whenever you want It also positioned Deliveroo as

a more expensive, premium option, compared with similar services like Just Eat (CampaignLive, 2019b) In late 2019, Deliveroo has appointed Chime 360, a young agency, to be itslead global creative agency (Chime Group, 2019) Chime360 was found in 2018 as a part ofChime Group It has produced work for Vitality, Paddy Power and Major League Baseball(Campaign Live, 2019a)

 Economical forces

The current gig economy has made rooms for Deliveroo to grow but it will not last forever.The fact that drivers do a gig for a living allows Deliveroo to pay them per delivery ratherthan paying monthly minimum wage It raises an ethical issue that the company can onlysolve either cutting its profits or rising the current reasonable delivery fee (MarketLine,2018)

 Social forces

The younger generation is now concerning more about health and ethics when it comes tofood They are willing more on healthier food and expecting brands to offer more than justfast-food (MarketLine, 2018)

Figure 4: Willingness to spend more on healthier food by generation

Source: MarketLine, 2018

The number of people adopting a plant-based diet in the UK raised by 5 times from 2006 to

2016 The number of vegans also increases dramatically All the social trends are forcing theindustry to operate under a set of ethical principles (MarketLine, 2018)

 Technological forces

As reported by Mintel (2020c), 35% of online takeaway customers happy to receive an ordervia drone and 29% of them prefer to order food via a smart speaker like Amazon Echo.Deliveroo’s indirect competitor, Domino’s leading in technological advancement by using its

“Anyware” scheme which allows customers to order via smartwatch, smartTV, or virtualassistants such as Google Home, Alexa, and Domino’s Dom Meanwhile, Just Eat partnered

up with Starship Technologies to invent self-driving, sensor-laden robots within its plan tosecure its first place in the market

3 Communication objectives and positioning (Safety)

3.1 Communication objectives

 To raise awareness of the brand association with caring for people using “safety” as theemotional appeal, therefore, differentiating Deliveroo from its competitors; thecampaign aims to generate 5,000 mentions and hashtags on two social mediaplatforms: Facebook and Instagram by the end of July

 To change the perception of staying home and locking down from “boring” to “safewith Deliveroo” by informing people that Deliveroo provides stable service evenduring the hard times; the campaign aims to generate 1,000 app downloads by the endJuly

3.2 Positioning

Deliveroo has positioned itself as a premium food delivery service which values itscustomers This campaign will reinforce both Deliveroo's current positioning and itscustomer-centricity The campaign also aligns with Deliveroo's 2019 Christmas campaignwhich honours the work of midwives and states that "some deliveries are more importantthan others and we take our hats off to them" (Campaign Live, 2019c)

4 Audience communication strategy (3Ps)

4.1 Pull: customer

Inspired from a safe box which contains your valuable, and beloved items, the campaignwants to make people feel safe with orders from Deliveroo In other words, customers canstay at home without any worries, knowing that Deliveroo is taking care of them, under anycircumstance “The safe box” campaign aims to spread the message: “It’s not a food box, it’s

a Deliveroo safe box”

To make the advertising message sticks to customers’ minds, Deliveroo should usestorytelling method to tell a slice of a rider’s life: before and after the pandemic Besides, thecampaign will seek customers’ engagement by encouraging them to share their Deliveroomeals on social media

4.2 Push: corporate customer

Deliveroo itself is an intermediary between restaurants and customers, therefore, they do nothave wholesalers and retailers However, Deliveroo has launched events and catering servicesfor corporations and hotels in 2019 and they can somehow be considered Deliveroo’s channelbuyers (Grocer, 2019) Deliveroo should also target them in this campaign by sending emailsand offering promotions

4.3 Profile

As the profile strategy focuses on building a brand reputation within the organization,Deliveroo tends to targets its stakeholders, especially its drivers in this campaign (Fill et al.,2013)

Via "The safe box" campaign, Deliveroo proves its care and protection towards its riders bysolving three factors that affect them more than anything else (Econsultancy, 2016):

 Flexible hours: Deliveroo ensures that their riders will not be laid off during thispandemic and allows them to choose whether or not to work

 Physical fitness: Deliveroo prevents their riders from infection by providing protectionsuits (including masks, hand sanitisers), doing "contactless" deliveries (drop-offoption) only The company also secured a multi-million pounds to support affectedriders during their isolation (Tech Crunch, 2020)

 The pay: Deliveroo has not found an ultimate solution for its recent rider strikes,however, during the pandemic, the company should raise payment per order, andguarantee sick pay

5 Advertising media

5.1 Media 1: Digital media - Social media

As identified in the context analysis, the target audience Millennial use Facebook, WhatsApp,Instagram, and Youtube the most (Ofcom, 2019) This campaign proposes using Instagram as