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STEP 6: Describe a short market background based on your own research. State what the business problem is. Outline the research question. List the specific research objectives you will try to address. (DO NOT COPY/PASTE from client)
· Company overview
Youfoodz, founded in 2012, is a Brisbane, Australia-based ready-to-eat food delivery company. Youfoodz offers more than five million meals to customers across Australia and is changing the way people think about prepared foods. In this project, I contacted Youfoodz company by email and got permission from the company to conduct market research and data collection.
The service is offered through its online website and mobile application that consumers can order different products according to their preferences online, e.g., meals, snacks, drinks, gift card and meal plans. It also offers free shipping based on a certain number of orders or location. The company target primarily at people who are fitness, want to lose weight or time-poor. The most distinctive product concept of the company is "70/30", which means 70% clean and healthy meals plus 30% freedom what you want equals a happy and healthy you".
· Market overview
In the digital age, the fast-food industry is growing. From merely serving ready-made meals to people on the go, it has now expanded to include an online/web-based category that promises healthier choices than the prepackaged foods we see in the frozen section. These dishes are prepared by professional chefs and some new players on the market, ready to use the best and local products (Jacob, 2017).
In Australia, many start-ups are now trying to grab a piece of the growing market. From 2016 to 2022, the food delivery market is expected to grow at a CGAR (compound annual growth rate) of 6% to reach a market size of $140 billion (Indig, 2019). The industry's products are segmented by dietary ingredients which have benefited from growing demand from time-poor consumers over the past five years. Gluten-free, vegan and non-dairy prepared foods are expected to become more popular (IBISWorld, 2018). Also means that this is a potential, competitive and dynamic market.
· Research questions outline
· Consumer perceptions of ready-meals delivery services.
· The reasons and attributes for consumers to choose this service (company).
· What do different people think of this industry and organization, and what are their expectations.
· Incentives: why consumers would concern or choose the service of this company
· What medium let customers choose the company's products (what marketing channel).
· Problems of Youfoodz
· According to manager Kane Sala, Youfoodz did not make full use of its digital channels. As a result, it needs to focus on the end-to-end customer lifecycle strategy to leverage existing customer data and collect data from second-party and third-party sources to drive its marketing strategy (Kim, 2016).
· From customer feedback and reviews, it can be seen that delivery service is a big problem. Some customers reflected that the quality of the delivery service is not good, and their problems cannot be solved in time. This shows the principal contradiction between product quality and delivery service (see appendix).
· Churn is the key to the food distribution business (for almost any subscription business). As a study by Cardlytics shows, 50% of customers rebounded after six months, and only one-third of customers stayed after a full year. Therefore, retention is vital for meal-prep companies.
· The competition in ready-made industry is fierce, and companies need more innovative and in-depth marketing strategies to build a strong brand image and long-term relationship with customers. For example, the customer's personalization, the establishment of knowledge systems for potential customers (see appendix).
· Research objectives
The research will be based primarily on local occupants in Sydney (consumers who have purchased this product or have not). Focusing on their views and expectations about the ready-made food delivery industry. Also, understand the different effects of marketing channels. This research model is expected to be used to examine other parts of the industry (pre-processed foods sold in supermarkets, convenience stores, vending machines, etc.) to gain insight into commonalities and differences between them.
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