Advertising Campaign planning

DELIVEROO: “THE SAFE BOX”

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Executive summary

Deliveroo is a UK-based online food delivery service. "The safe box" is the advertising
campaign for Deliveroo under the COVID-19 pandemic in the next three months. The target
audience 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 marketing
expertise will be presented. The external context will be a PEST analysis of Deliveroo's
external 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 media
channels to reach its communication objectives. Additionally, media scheduling, budget
planning, and performance evaluation are also stated in this campaign planning.

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Contents
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

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 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 to
nutritious dishes. Different from its competitors, the company offers its restaurant prtners
data 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 revenue
increased by 30% (Deliveroo, 2020). Keeping customers at its core, Deliveroo always strives
for customer satisfaction and aims to bring great food to customers as fast as possible, in less
than 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 its
headquarter 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 the
most-used food delivery service while Uber Eats has grown rapidly in the last two years, and
taken 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 is
also projected to grow considerably, from 8.4m in 2019 to 11.6m in 2024 (Statista, 2019b).

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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 equally
important 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 specific
marketing campaign target customers, rather than restaurant partners. Different from its
competitor, Just Eat, Deliveroo serves more high-end food, targeting urban eateries
(Proactive Investors, 2018).

 Age: Ideally 25 – 34 (Marketing Society, 2013) or Millennials, who uses the online
food 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 than
that 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)

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  Lifestyle: Younger professionals and metropolitan professionals form an Internet
generation who respond quickly to advertising, and spend more than 3 hours a day
online. They access the Internet and download apps mostly related to travel, lifestyle,
finance, news, and entertainment (Acorn, 2020a). They share news and opinions on
social 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 data
privacy 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 online
apps 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).

Brand
comms
80% of users do not change Deliveroo’s target customers are
their platform (Mintel, 2020). influenced by the Internet, mostly
social media (Acorn, 2020b).
User Influences

Deliveroo

Deliveroo’s catering services targets Taste, price, and convenience are the
corporate consumers, especially hotels. most important factors (Deloitte, 2019).

Buyers Initiators

Figure 2: Deliveroo’s decision-making units

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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 food
delivery apps (Statista, 2019d).

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

Source: Statista, 2019d

94% of Deliveroo’s target audience has social media profiles. They are the most active age
group 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 their
main account. Email (79%), social media (61%), radio (36%), and TV (34%) are the top
activities that they use the Internet for (Ofcom, 2019).

2.2 Business context

2.2.1. Mission statement:

“To transform the way our customers eat”

(Deliveroo, 2020a)

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Deliveroo ensures that their customers have more choice of amazing food by bringing the far-
away restaurants closer, and making nearer restaurants available to their customers
(Deliveroo, 2020a).

2.2.2. Competitor analysis: competitor brands positioning

Deliveroo’s largest indirect competitors are Dominos, KFC, and PizzaHut while its main
rivals 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).

 Just Eat:

Just Eat targets a larger demographic than Deliveroo and Uber Eats, it focuses on second-tier
cities and towns (Proactive Investors, 2018).
Currently backed by Takeaway, the company has the greater financial power to invest in its
app, and logistics network (Financial Times, 2020). It also strengthened its number 1 position
after the acquisition of Hungryhouse, and SkiptheDishes, and an exclusive partnership
agreement with Gregg, the most popular British high-street food chain (Just Eat, 2018 and
Financial Times, 2020).
In terms of branding, JustEat expected to turn itself into a "rebellious challenger brand" in its
first overhaul of global brand positioning (Marketing Week, 2012). In its 2016 rebrand, the
company 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 greatest
food community" (Insider, 2016). Via its recent marketing campaigns such as "Did somebody
say just eat", directed by McCann, the company aimed to "make Just Eat synonymous with
takeaway delivery" (The Drum, 2018).

 Uber Eats:

The company operates mostly in large, urban areas (Blomberg, 2018a). Powered by the
world's largest ride-hailing company, it has a vast army of drivers, great technology, and
logistics 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 Uber
app page and soon combine Eats and Rides into one app version (Forbes, 2019). It means that

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people can order a meal without downloading the app. Meanwhile, Uber Eats can utilize
Uber'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 delivery
market, closely following its competitor, Uber Eats, with 35% of market share (Mintel,
2020). In a 2018 interview, Deliveroo's former Chief Technical Officer, Mike Hudack
revealed the company ambition is to be the market leader in the next five years. He wanted to
make 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 by
over 100,000 between 2013 and 2016 (Financial Times, 2018). In September 2017, Deliveroo
became 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 most
recent 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) or
annually (£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 (Career

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Deliveroo, 2020). They want each employee to work with an entrepreneurial mindset to
embrace 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 was
created by Fallon in 2017 and first global campaign, “Food Freedom” was directed by
Wieden & Kennedy London in 2019 (Campaign Live, 2019a). The campaign highlighted the
happiness 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 (Campaign
Live, 2019b). In late 2019, Deliveroo has appointed Chime 360, a young agency, to be its
lead global creative agency (Chime Group, 2019). Chime360 was found in 2018 as a part of
Chime Group. It has produced work for Vitality, Paddy Power and Major League Baseball
(Campaign Live, 2019a).

2.3 External context

2.4.1. PEST
 Political forces

Since 70% of UK food and drink are imported from the EU, Brexit will cause a food price
increase from 8% to 16% (BBC, 2019). The restaurants then have to increase their price and
make the price of food listed on Deliveroo less stable.

 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 rather
than paying monthly minimum wage. It raises an ethical issue that the company can only
solve either cutting its profits or rising the current reasonable delivery fee (MarketLine,
2018).

 Social forces

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The younger generation is now concerning more about health and ethics when it comes to
food. They are willing more on healthier food and expecting brands to offer more than just
fast-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 the
industry 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 order
via 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 virtual
assistants 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 to
secure its first place in the market.

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3. Communication objectives and positioning (Safety)
3.1 Communication objectives

 To raise awareness of the brand association with caring for people using “safety” as
the emotional appeal, therefore, differentiating Deliveroo from its competitors; the
campaign aims to generate 5,000 mentions and hashtags on two social media
platforms: Facebook and Instagram by the end of July.
 To change the perception of staying home and locking down from “boring” to “safe
with Deliveroo” by informing people that Deliveroo provides stable service even
during the hard times; the campaign aims to generate 1,000 app downloads by the end
July.

3.2 Positioning

Deliveroo has positioned itself as a premium food delivery service which values its
customers. This campaign will reinforce both Deliveroo's current positioning and its
customer-centricity. The campaign also aligns with Deliveroo's 2019 Christmas campaign
which honours the work of midwives and states that "some deliveries are more important
than 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 campaign
wants to make people feel safe with orders from Deliveroo. In other words, customers can
stay at home without any worries, knowing that Deliveroo is taking care of them, under any
circumstance. “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 use
storytelling method to tell a slice of a rider’s life: before and after the pandemic. Besides, the
campaign will seek customers’ engagement by encouraging them to share their Deliveroo
meals on social media.

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4.2 Push: corporate customer

Deliveroo itself is an intermediary between restaurants and customers, therefore, they do not
have wholesalers and retailers. However, Deliveroo has launched events and catering services
for corporations and hotels in 2019 and they can somehow be considered Deliveroo’s channel
buyers (Grocer, 2019). Deliveroo should also target them in this campaign by sending emails
and 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 by
solving three factors that affect them more than anything else (Econsultancy, 2016):

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

 Physical fitness: Deliveroo prevents their riders from infection by providing protection
suits (including masks, hand sanitisers), doing "contactless" deliveries (drop-off
option) only. The company also secured a multi-million pounds to support affected
riders 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, and
guarantee 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

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the primary social media platform by Instagram's has a clear algorithm that allows brands to
maximise and measure their engagement (Levin, 2019).
Social media marketing can generate brand exposure, increase traffic, and improve search
engine rankings, as a result, raising brand awareness (Otero and Guitierrez, 2015).
Literature states that the use of emotional appeal in an ad promotes the feeling that customers
can experience when using a service, in this case, food delivery service from Deliveroo
(Septianto and Pratiwi, 2014). Moreover, emotion is believed to influence the degree to
which the message is remembered. It is likely to maintain viewers' interest than informational
messages (Ioni, et al., 2007). Safety appeal is more likely to be used in cultures with safety-
related concerns such as the environment, disasters, and heath (Frazer and Sheehan 2002,
cited in Fill, et al., 2013). The use of emotion safety is suitable during the current
Coronavirus pandemic and in line with Deliveroo's positioning of a premium brand that cares
for customers.
The campaign will be executed by telling a slice of life of a Deliveroo's rider before and after
and pandemic. Before the virus outbreak, the rider goes to customer's in Deliveroo uniform,
with a smile, and say "Your Deliveroo box has arrived". During the pandemic, the same rider
goes to customer's in a protective suit, send a text message "Your Deliveroo safe box has
arrived", and drops the box at the customer's door.
The campaign will use the same hashtags such as #StaysafewithDeliveroo #Deliveroosafebox
#Roocares on different media and social platforms.

5.2 Media 2: Digital media – Email marketing

Deliveroo has already had a database of its current corporate customers, therefore, using
email marketing is efficient and time-saving. Email marketing is still a great way of
informing customers about how to get the most out of a company's service (Hanna, Swain,
and Smith, 2016). In this case, Deliveroo should use email to inform its corporate customers,
especially hotels that Deliveroo is still operating and performing safe practices during the
Coronavirus outbreak.
The campaign will be executed in the same way. Along with an email containing the
message, Deliveroo should also provide exclusive offers to its corporate customers.

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5.3 Media 3: Digital media – Website and App

Since all of Deliveroo’s riders use its website and app, using these channels is the most
effective way of informing them that the Deliveroo is still operating under safety rules.
Service quality cannot be separated with the quality of the service provider
(Lovelock and Wirtz, 2004, cited in Kimura, 2017). Therefore, marketing should also aim at
the internal forces, not the external customers only.
Even though telling the same story, the campaign will be executed under the lens of a
Deliveroo’s riders. It should be able to spread the message “You will be safe delivering our
safe boxes”. Besides guarantee safety, Deliveroo should also inform them about how they
solve riders’ three concerns in chapter 4.3.

6. Implementation, control and evaluation

6.1 Implementation (media scheduling)
The campaign will be carried out within 3 months, from January to March 2024.

Activity Jan Feb March

Facebook 1 2 3 4 1 2 3 4 1 2 3 4

Story

Feed post

Ads and Sponsors

Tik tok

Video

Video influencer 1

Video influencer 2

Video influencer 3

Video comment

App, website

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 Announcement, news

In-app advertising

6.2 Budget allocation

Budget allocati on
Social media Website App Content

15%

10%

60%
15%

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