MKT 368

Case 2

FOODPANDA
Section: 17

Submitted To,
Shabnin Rahman Shorna
Department of Management
North South University

Submitted By,

NAME ID

Mohiminul Ahmed Sami 1521079630

Khan Sadman Sakib 1611900630

Ismail Hossain Shohan 1631481030

Faisal Ahmed Rifat 1722246630

Md. Nazmul Alam Lipu 1632366030

Md.Mahmudun Nabi 1411025630

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Answer to question No- 1

The strengths and weaknesses of Foodpanda in the online food delivery service market in
Bangladesh are-

Strengths:

Strong brand image: Owing to its performance in the global market, the business has a brand
name and company reputation. Across the globe, it has brand appeal. For the brand value, they
were able to gain market faith so easily in Bangladesh.

Quick delivery: For the pleasure of its customers, Foodpanda gives customers the correct delivery
time via ETA, which allows them to know the exact time it will take to bring them to their
particular destination.

Customer loyalty: Foopanda has customer loyalty. Customer loyalty is the biggest strength for
them.

Excellent platform: For customers, Foodpanda handles several orders and sends them directly to
partner restaurants. It delivers it to its customers once the order is processed. The service is
accessible via mobile apps and websites for customers.

Fully automated: Foodpanda is now fully automated and operates with a very data-driven
methodology. Thus, the speed of transaction processing has been improved and transaction
handling costs have been decreased.

Weakness:

Low coverage: Orders can only be accessed from restaurants located in the border zone. This is a
weak point since there will be no access to all restaurants at all locations.

Traffic jam: Traffic jams are the biggest weakness for foodpanda because they can't deliver food
on time for traffic jams.

Lack of availability in the payment system

In all areas in a city, Foodpanda has not yet been covered.

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Question Answer 2

Business Model Canvas of Foodpanda in Bangladesh

Key partners Key Activities Value Proposition Customer relation Customer segment
• Bank • Give access to • Customer can order • Follow • Urban areas
• IT firms customers to order food remotely automated people who
• Authorities of remotely from based on their customer are busy to
residential areas restaurant based on location. relationship purchase food
their location • Partnered • Delivery from
through mobile app restaurants sell within 60 to restaurant and
and website and food without using 90 minutes has sufficient
earn commission physical space and • Give discount purchasing
from restaurants. reach more to new and power
customers. existing • Operates in 50
customers districts
Key Resources Channel • Partnered
• Office Space • Delivery Restaurants

• Website and app through own

domain stuff and
• Employees and transportation
transportation
assets.

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Cost Structure Revenue Steam

Web domain cost, Website and mobile APP maintenance cost, • Generate transactional Revenue from commission and
Office rent, Bills, Salary, others expenses. delivery charge
• Also generate Recurring revenue from Display add and
Advertising in website.

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In the Business model revenue, we can see food panda’s entire business picture.

Key partners:

They have Bank and others financial institution as key partners. It firm also included because to
maintain their website and mobile app they need IT firms. Moreover, is some residential area their
delivery stuff faces some difficulties to deliver the food so they have to make continuous
communication with these authorities of residential areas.

Key Activities:

Foodpanda act as a bridge between end customers and restaurants. Customers can order food
through their website and mobile app.

Value Proposition:

No need to go to restaurants to order food. Food will be on the doorstep of the customers.
Moreover, restaurants can make profit beyond their geographical location.

Customers relation:

They follow automated customer relationship to gain potential and retain existing customers. They
announce their promo code and special offer through app notification and SMS. Moreover, they
ensure to deliver the food as lowest possible time.

Customer segment:

They target urban areas people who have tight schedule to go to restaurants. They also target
nuclear family in the city. Partnered restaurants is also their customers.

Channel:

They deliver their food by their owned employees with bicycle and motorbikes.

Key resources:

They have office space. Moreover, website and app is also their resource because they purchase
permanent domain from web by this name.

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Cost Structure

They pay for their domain name and app. Moreover, they have its maintenance cost because they
need to update their app and website with latest contents. They also have Office rent, Bills, Salary,
others expenses.

Revenue Steam

They follow both transactional and recurring revenue stream. When they get commission from
restaurants from per order, they generate transactional revenue stream and from website display
and advertisement they generate recurring revenue.

They can weight their value proposition by accepting mobile banking for payment. In Bangladesh
mobile banking is very popular. Though Foodpanda accept master and visa card but very few
people use this card in Bangladesh. Mobile banking may generate the order quantity.

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Question Answer 3

Customer Retention and attraction strategy for Foodpanda -

On boarding program – This strategy helps the new customers how to use the app or service. Rather
than learning by themselves the company will help them to understand about the app. This will
save customers’ time. If the users use the app for the 1st time and if they do not know how the
apps work or how to use the app they may become angry or frustrated to use the app. On boarding
will help customers to utilize the app and service.

Customer feedback loop

It is hard to improve a business if the organization does not know what the customer feels about
their service. A business needs a process for obtaining customer feedback and sharing the
information with the rest of the company. Customer feedback loop provides a system for collecting
the information of customers feedback analyzing and distributing customer review.

Speak to the customer

This will help the company to gain the old users again. They can communicate with the old users
by phone call or emails by informing them about the new offers or other new things about the
company.

Build trust through relationship

Building trust with customer is very important for a company. To build trust with the customer the
company can use customer behavior data to deliver enormous value to the service. The company
also needs to improve their KPI. It will help the company to visualize the future and what directions
to follow. Marketing strategy is very much important to attract the customers. A company need a
well-structured marketing strategy. The company can use the given strategies to attract the
customers-

Blog

To gain customers in an organic manner online and to deliver educational and quality content
company can create blog. It will help the company to answers the questions of the customers and
give them proper solutions.

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Video channel

They can use video channel in Youtube or make videos on Facebook or Instagram to attract the
customers by creating attracting contents about the service.

Discount offer

The company can give the customers discount offer on their service for attracting customers.

Digital Media

The use of digital media is very much effective to attract the customers. Foodpanda can use digital
billboard, LED panel, screen on shopping complex elevators to attract customer.

Foodpanda also need to increase their search engine optimization it will help the customers to gain
information about the company in an easy way.

An efficient supply chain system makes the best use of its resource by using human, technology,
finance and physical labor. Supply chain always tries to minimize costs for materials, time wastage
and packaging. If Foodpanda wants to optimize its supply chain system for retention and customer
attraction strategy they will have to change their way of doing things. A strategy will work properly
and perfectly when it will acquire all the necessary things it needed. Normally Foodpanda operates
at the intersection of logistics and demand aggregation. For that they use two process one is they
support logistics support for restaurant by taking order from customer and deliver to then, and
second, they generate order from customers for the restaurant by designing lucrative campaigning
in collaboration with restaurant. If Foodpanda wants to fully optimize its supply chain, then
Foodpanda will have to centralize its work. By centralizing they will easily maintain their works.
By doing that they will be able to do their all works from one place and also, they will be able to
know about their customer gross wants and demand.

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The concrete steps Foodpanda should be taking and the time scale is discussed below.

• Firstly, Foodpanda should Centralized its delivery service.

• Secondly Foodpanda should go for aggregative demand by using aggressive acquisition
techniques and then sell more to their customers. By doing that they will be able to increase
their supply and also their profit.
• During this pandemic situation Foodpanda should include grocery items to their delivery
list. If they start delivering grocery items, they will have a new supply chain system and
logistics.
• Lastly, I think Foodpanda should focus more on their existing customers. As they are doing
Food delivery services people will buy food until there is none, so they should focus more
on their existing customer and try to capture their attention by offering them many offers.

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Question Answer 4

Food panda can maintain its food quality with different ways first of all they can focus on their
manufacturing procedures where to ease duplication from lot to lot, shift to shift and day to day.
Beside this also consider about the time, temperature, weight etc. On the other hand, they have to
Concern their warehousing activities like recurving storage and shipping for maintain quality for
food. Food panda also doing Laboratory analysis where they tested their sample of food and ranked
the quality. Beside this they also improve their delivery process following some criteria such as
they creating web site and mobile app where they connect all the restaurant listed under food panda
and given them the chance to customer to scroll through the menu of their favorite restaurant and
order. They also can add some review section for the customer and provide emergency hot line
services where they add customer service for providing information by this step’s food panda can
easily connect with their customer and improve their services.