ASSIGNMENT OF DIGITAL MARKETING ON DIGITAL MARKETING STRATEGY OF FOODPANDA
SUBMITTED TO:
SUBMITTED BY:
DR. PRIYANKA VIJAY
RIYA JAIN
ASSOCIATE PROF.
M.B.A 3RD SEM
FMS WISDOM
ROLL NO- 12308 CONTENT
S.No
Topic
1.
Abstract
2.
Introduction
3.
Concept: Digital Marketing
4.
Digital Marketing Objectives
Remark
5.
Digital Marketing Strategies
6.
Online Retail Store: Foodpanda
7.
Digital Marketing Strategies of
8.
Foodpanda Conclusion
9.
Bibliography
ABSTRACT With the advent of the age of the customer, where customer preferences predominate in the interaction between consumers and companies, digital marketing has become a more complex, multidisciplinary and multi-departmental effort. Companies need to be able to engage with their constituencies in a proliferating series of medium and to be able to bring these interactions together in a single comprehensive view by following the practices of Digital Marketing. These days one or the other person or company is talking about doing things digitally as no one is interested in doing things manually. But do we know what the concept behind Digital Marketing is? Digital Marketing is one of the new techniques that has come into picture since 5 years or a decade replacing the old and traditional modes of advertising or making their services or products known by people. Therefore; “Digital Marketing can be defined as the method of advertising or making the customers know about their services or products by the means of electronic media, blogging, or social media marketing etc. by replacing the old and traditional methods of advertising or marketing.” The concept of Digital Marketing is being widely accepted by the people all over the world as this medium is becoming a way of cost cutting and effective by the big or small enterprises. The following pages of this assignment explains in detail about the whole concept of Digital Marketing starting from its definition to history, its benefits, characteristics followed by the strategies made to do Digital Marketing. Furthermore, it highlights the various strategies used by online retail store such as “Foodpanda- You Say We Give” the online store to deliver food at your doorsteps quickly. I have chosen the assignment on Digital Marketing strategies of online retail store which is Foodpanda because the concept behind this topic is very new and it has catered all my attention from other topics. Also this topic involves lot of research and analysis of many new facts.
I hope that my assignment clears all the doubts and queries regarding Digital Marketing.
INTRODUCTION “Marketing is no longer about the stuff that you make, but about the stories you tell” -Seth Godin The above words sad by Seth Godin truly depicts the need of marketing to every small or big business but the only difference that is coming is that all the marketing is now done by the mode of Digital Marketing. Advertising in business is a form of marketing communication used to encourage, persuade, or manipulate an audience to take or continue to take some action. Most commonly, the desired result is to drive consumer behaviour with respect to a commercial offering. With the rise in digitalisation and increasing demand of consumer awareness about various products, services or ideas of firms by most trending approach that is Digital Marketing, it is becoming essential to discover the concept of marketing the products via electronic modes also known as Digital Marketing. The aim of this assignment was to clear all the doubts and get to know many new facts and figures about trending approach of Digital Marketing and its Strategies used by various online retail stores. This assignment presents the idea behind Digital Marketing its concept, and most importantly the strategies used by Foodpanda the online retail stores to market their products and services followed by the comparison between the two of them. Lastly concluding the assignment by giving my opinion on whose strategies is better.
CONCEPT: DIGITAL MARKETING “If you make customer unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends” -Jeff Bezos, CEO. Amazon.com After reading the words of Jeff Bezos who is the CEO of Amazon.com, one thing can be concluded that the usage of internet can either become boon or curse to any company. In simple words the internet
usage by customers is becoming so popular due to which companies need to do more and more innovations in the field of technology to connect with the pace of customers. Therefore every company is running on the footsteps of Digitalisation leading to do Digital Marketing.
WHAT IS DIGITAL MARKETING?
DIGITAL MARKETIG ??????? YEAH DIGIIIIITAL!!!!!!
Companies today are rushing headlong to become more digital marketing. But what does digital marketing really mean? Digital Marketing is the combination of two words “Digital” and “Marketing” which can be interpreted as the technique used by the companies to market their products, services or ideas in the digitalisation form such as through e-mails, content writing etc. This can be said in a simple terms. But let us understand this term more in detail by first explaining what is Digital then marketing followed by the combination of these two words. Digital is the term defined as the usage of electronic means to do any particular task such as promoting any product, making people aware about new services launched by government etc. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements in a profitable manner.” This means the ideas, the brand, how you communicate, the design, print process, measuring effectiveness, market research and the psychology of consumer behaviour all count as part of the bigger picture of ‘marketing’.
DIGITAL
MARKETING
DIGITA MARKETING
Digital Marketing as said previously is combination of digital and marketing. It can be defined as the application of the Internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives. In a simple word, Digital Marketing can be defined as Achieving marketing objectives through applying digital technologies. Essentially, Digital Marketing is the utilisation of the Internet in order to reach the desired target market, via some of the channels such as Social Media (Facebook, Twitter), Websites/Blogs (WordPress.com), Multimedia Advertising (YouTube.com), Online/Search Engine Adverting (Google Ad words, SEO), and Email Marketing etc. The introduction of modern technology e.g. Smartphones (Android/IPhone/IOS), Tablets, Laptops, Mobile Devices and the development of ‘Apps’ (Online Applications) allows consumers to be constantly connected online – anytime, anywhere (Internet connection permitting; of course!). Therefore, it is hugely important that Marketing and Advertising Strategies evolve and accommodate; to keep up to date with this trend.
EXAMPLE OF DIGITAL MARKETING Uber is an American multinational online transportation network company headquartered in San Francisco, California. It develops markets and operates the Uber mobile "app", which allows
consumers with smartphones to submit a trip request, which the software program then automatically sends to the Uber driver nearest to the consumer, alerting the driver to the location of the customer. It focused on mobile-savvy professionals who didn't mind paying that little extra to travel in style and
comfort. They made luxury standard, and backed it up with a brilliant app that made booking an Uber ride extremely quick and convenient. Uber is now a success story cited by many and studied in depth. Therefore we can see how successfully Uber has captured the market by usage of digitalisation.
DIGITAL MARKETING OBJECTVES In order to achieve the business mission and goals on the web, the companies need specific digital marketing objectives that will guide their online promotional activities. Each campaign which company create and all ads that one run should be in line with their marketing objectives and be relevant to the target market.
The digital marketing objectives should be SMART that is Specific, Measurable, Achievable, Relevant and Time Related. The companies should benchmark against the competitors to ensure that they are more effective. Here are 5 important objectives to include in your marketing strategy 1. Increase Sales- Increasing sales or leads is a top level digital marketing objective for many businesses because it improves revenues and is easy to measure. Using key performance indicators (KPI), one can then benchmark their progress towards achieving the objective and can track this in the spreadsheets. An example of a SMART objective would be: “Increase sales by 10% from existing customers by Dec 2015”. 2. Improve conversion rate- This is another digital marketing objective that can be tracked in Google Analytics. By setting up goal tracking in Analytics, one will have reports on conversions for the traffic sources, campaigns, keywords, landing pages, locations and so on. With this data the companies can then track a conversion rate objective like: “Improve organic traffic conversion rate by 25% by Nov 2015” 3. Percentage of return visitors- The New v/s Returning visitors is a metric that is available in Analytics and it is easy to track. Knowing how many visitors return is an important objective because it helps you see how effective your business is at visitor and customer loyalty. This helps the companies to create a specific and measurable objective that is relevant to your specific industry and an example is: “15% of visitors should be returners by the end of the year” 4. Organic traffic volumes- Organic traffic is natural traffic from the search engine result pages. It is considered as free traffic and is distinct from paid traffic. Lots of businesses have the objective to increase organic visitor traffic by achieving high search engine rankings through implementing search engine optimisation. To achieve this requires building quality links that point to your website. An example for this could be: “Receive 20,000 visitors per month from Google and Bing natural results by year end” 5. Reduce bounce rate- Bounce rate in analytics is defined as people who enter your site and leave rather than continue viewing other pages. This is an important measure of the quality of the website, because
almost all businesses want their visitors to complete an action like purchase, contact or download on their websites. An example: “Reduce bounce rate below 40% for all traffic sources by Dec 2015”
DIGITAL MARKETING STRATEGY According to a ‘Managing Digital Marketing’ study by Smart Insights, 46% of brands don’t have a defined digital marketing strategy, while 16% do have a strategy but haven’t yet integrated it into their marketing activity. An effective digital strategy will help you take the right decisions to make a company successful online. A Digital Marketing Strategy should involve a review to check that all of your capabilities are in place to help your organisation manage all of the digital touch points. Digital Marketing Strategy Definition A digital marketing strategy is a channel strategy which means that it should...
Be informed by research into customer channel behaviour and marketplace activity,
Based on objectives for future online and offline channel contribution percentage,
Define and communicate the differentials of the channel to encourage customers to use it. Properties of a Good Digital Marketing Strategy
1. A strategy isn’t a goal- A strategy helps you achieve a goal. It’s not the goal itself. 2. A strategy helps determine repeatable tactics- Things you can do again and again to help achieve your goal. 3. A digital marketing strategy affects the core of a business- A true marketing strategy has far-reaching impact on the primary goal of a business. 4. A digital strategy has a specific goal or goals- The strategy should aim for a measurable end. 5. A marketing strategy withstands change- Pretend that, three months into your strategic plan, a new channel, technique or tool appears on the scene. Everyone wants you to try it. That may require a change in tactics, but not a change in strategy. 6. A strategy transcends channels- A strategy is not a one-channel plan. Or at least, a good strategy isn’t. Putting all your strategic eggs in a single basket is a fundamentally flawed strategy. 7. A strategy links factors to goals using metrics- A great marketing strategy provides a closed loop between your business goals and the properties of 'successful' tactics. It measures effectiveness of factors using metrics.
5 Digital Marketing Strategies
Digital marketing is essential in today's world. With both competitors and potential customers constantly online, digital marketing is the only way to stay ahead. When you're a small business owner the online world can seem intimidating. Here is a list of five simple digital marketing strategies that any business owner can implement to help their business grow:1. Setting a Goal: The Company might want more customers, more recognition or maybe looking to get ahead of the competition. Whatever the case may be, starting with a solid goal in mind greatly increases the chances of success. Digital marketing is a great way for small businesses to prosper, but going into the process blindly can leave the company with a mess. A lot of strategy and precision goes into digital marketing and having a goal helps them know what to focus on. 2. Creating a Marketing Funnel: The most successful businesses have an effective marketing funnel in place. A marketing funnel is when the company map out a customer's journey from when a customer is a complete stranger to when they become a lead, and then put certain strategies in place that will encourage them to move through this funnel. Things like lead magnets, calls to action, opt-ins and offers are all effective pieces of a funnel. They can think of a marketing funnel in four parts: Awareness,
Interest, Desire, and Action. Awareness: The potential customer is aware of the product or service. They're still a stranger, but they've come to the website for a reason. They're looking for something they need. At this stage company want to attract the customer by showing them they have something for which customers are looking for. Use a lead magnet or call-to-action to give the customer a valuable resource related to your
products or services. Interest: They are actively expressing interest in a certain type of your products or services. At this point you've given them some information and they're interested in what you have to say or the services you provide. At this stage it's a good idea to supply them with further information that is more tailored to
their specific needs and interest. Desire: The customers have taken an interest in a specific product or service. Now that you've supplied them with information specific to what they're looking for, they've found a product or service you provide that might be a good fit for them. Invite them to schedule a consultation using an email or a callto-action. At this stage you want to tell them more about the product or service they're interested in.
Show them why they need it and exactly how it will benefit them. Action: Taking the next step towards purchasing. This is when the company is able to turn their potential customer into a lead. The company has given them valuable information, shown them you pay attention to your customer's needs, and shown them that you have something they need that will benefit them.
3. Developing a call-to-action: A call-to-action (CTA) is an image or text that prompts visitors to take action, such as subscribe to a newsletter, view a webinar or request a product demo. CTAs should direct people to landing pages, where the company can collect visitors' contact information in exchange for a
valuable marketing offer. In that sense, an effective CTA results in more leads and conversions for your website. In order to increase visitor-to-lead conversion opportunities, company need to create a lot of calls-to-action, distribute them across their web presence and optimize them. 4. Creating an Effective Lead Magnet: A lead magnet can be used alone or along with a CTA. This will also be used either within the marketing funnel or as a way to drive potential customers into your funnel. Supply them with something relevant to your product or service that they want. Use your offers as a way to gather more information about a potential buyer while driving them further into your funnel at the same time. This brings them closer to becoming an actual quality lead that will spend money on your product or service. The idea behind a lead magnet is to trade information. 5. Driving Traffic: In order for there to be people to drive into your marketing funnel, there first has to be traffic on your website. There a variety of ways you can drive traffic to your website. Here are a few of
them: Quality Content: Use content such as blog posts or articles on authority websites. Insert links to various places on the website within this content to build your brand name through exposure and drive traffic to
your website. Keyword Strategy: Inserting related keywords into content will help your content and website show up
in more search results, this leads to higher volumes of web traffic. Website Optimization: Ensuring that your website is optimized and functioning at it's best is essential.
People don't want to visit a website that doesn't work properly. Social Media: Use engaging social media posts to attract more traffic to your site. Using pictures, video, and other relevant media will help your posts get more engagement. These Digital Marketing strategies will make huge difference if you want your business to grow.
Online Retail Store The online retail store is a buzzword for any business-to-consumer (B2C) transactions that take place over the Internet. In a simply words online retail store is the sale of goods online. Companies like Amazon and Dell created the online retail industry by putting the entire customer experience - from browsing products to placing orders to paying for purchases - on the Internet. The success of these and other companies encouraged more traditional retailers to create an online presence to augment their brick-and-mortar outlets. One such online retail store is Foodpanda.
“We have shaped the market for ordering food online,” -Amit Kohli, MD, Foodpanda India Foodpanda is one of the online foods ordering service platform that has seen an exponential growth in past few months in India & globally while it started its operations last year in India. It’s headquarter is in Berlin, Germany, and operating in more than 40 countries across four continents. The service allows users to select from local restaurants and place orders via the website or mobile application. Foodpanda is the fastest growing Rocket Internet venture in terms of country expansion.
Nature of Business:The nature of business is B2C that is Business to Consumers service restaurant menus. With just a few clicks you can order from a wide variety of delicious online cuisines. The Fooddpanda targets the tech savy people, prefers convenience over ambiance and with age group of Age 18-30 who owns a smartphone as its audience. “My schedule doesn’t permit me to go and seek out new places every day; it’s good to have an extensive consolidated menu to choose from spanning restaurants” -User of Foodpanda services
Foodpanda’s achievements till date: Foodpanda uses their strategies and marketing campaigns to ensure that every month they offer something new & fresh to the customers in terms of offers, food festivals, social media contests, etc.
They’ve grown to become one of the largest food ordering portals
They have built a network of 2000+ partners including some of the well-known brands like: Pizza Hut, Subway, Nirula’s, Baskin Robbins, 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.
Approach and strategies adopted by Foodpanda 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 they become the “Google of online food ordering” as it is their prime objective these days. In order to achieve this objective Foodpanda has started making various Digital Marketing Strategies which are as follow:-
STRATEGIES
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 EMAIL
SOCIAL MEDIA
MOBILE
MARKETING
MARKETING
MARKETING
this have been a great strategy and helped them to stay connected.
2. Social Media Marjeting- Foodpanda had done the campaign as a part of digital marketing strategies to allure the customers in the year 2013. The objective of this Campaign was a promotional campaign to increase visibility and sales so as to attract customers and to gain their trust. 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. The result of this campaign was that FoodPanda.in has done a commendable job on social media so far with over 39k likes and 1200+ followers. The contest however is very simple and less visible.
3. Mobile Marketing- When foodpanda entered the market three years ago, it faced perception issue as many thought it to be restaurant 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. 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.
PROS AND CONS OF DIGITAL MARKETING Every coin or situation has two phases where one may be positive and other may be negative. Similarly, Digital Marketing has two phases which are its pros and cons. Some of the pros and cons are discussed below.
PROS OF DIGITAL MARKETING:
Digital marketing is very low cost,
Digital marketing can access a massive audience,
Digital marketing caters to multiple demographics simultaneously,
Digital marketing is fast – like super ultra-fast,
Digital marketing reaches decision-makers,
Digital marketing creates brand interactions,
Digital marketing offers you an opportunity to expand your customer service,
Digital marketing creates higher levels of brand loyalty,
CONS OF DIGITAL MARKETING:
Digital marketing is going to consume a lot of your time,
Digital marketing always creates negative public reactions,
Digital marketing sometimes takes control out of your hands,
Digital marketing can make it difficult to determine your ROI,
Digital marketing sometimes takes control out of your hands again,
Digital marketing campaigns are very easy to copy,
Digital marketing can get lost in the online white noise that exists, and
Digital marketing judges you on first impressions.
CONCLUSION Everyone is constantly connected with everyone and everything. Mobile technology and cloud services bring the internet everywhere. Business is either digital or becoming digital. What works and what doesn’t is determined by the right combination of form and relevance: the Customer Experience. Hence there is no stopper to digital marketing. 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 has 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. Lastly we can say that both Digital Marketing Strategies and success of business both go hand in hand. If business wants to gain profits then they must work according to Digital Marketing Strategies as everyone and everything is constantly connected by means of digitalisation.
BIBLIOGRAPHY In order to make this project I have taken reference from following links:
http://brandongaille.com/16-pros-and-cons-of-digital-marketing/ http://dsim.in/blog/2016/03/23/case-study-how-big-basket-has-changed-the-online-
grocery-marketplace/ http://www.huffingtonpost.in/entry/5-simple-digital-marketin_b_4816425
http://www.cim.co.uk/more/getin2marketing/what-is-marketing/ https://digitalmarketingroom.wordpress.com/2013/04/04/what-is-digital-marketing-
the-evolution-of-marketing-and-advertisement/ http://www.smartinsights.com/digital-marketing-strategy/
