MGMT 392 Professor Susan Sampson Proposal Ei Ei...
Transcript of MGMT 392 Professor Susan Sampson Proposal Ei Ei...
DRIZLY Marketing ProposalMGMT 392 Professor Susan SampsonEi Ei Kyawt San, Anna Rausa, and Melissa Wright
AgendaI. Background - Ei Ei
II. Problem - Melissa
III. Goals of Research - Melissa
IV. Demographics - Melissa
V. Industry Analysis/SWOT - Anna
VI. Marketing Plan
○ Online and In Context - Melissa
○ Strategy Shift - Melissa
○ Social Media - Melissa/Anna
○ Influencer Marketing - Anna
○ Strategic Partnerships - Anna
○ Measures of Success - Ei Ei
VII. Budget and Return - Ei Ei
VIII. Limitations + Conclusions - Ei Ei
Background● Drizly is a technology
company offering online
and mobile shopping
experience for beer, wine
and liquor
● Founded in 2013 by Nick
Rellas and Justin
Robinson
● Raised $17.8 million
through angel and
institutional investors
Background
Retail Partner
Consumer Order Drizly
Info
rmat
ionDelivery
● Consumer places order
through Drizly
● Drizly relays
information to retail
partner
● Retail partner is
responsible for
fulfillment and
delivering the order to
the consumer
The Problem:
How can Drizly remain competitive and increase brand awareness in a volatile industry?
● Competition in the food delivery service industry is high, companies are fighting to steal market share
● Threat of new entrants is high for the beverage delivery segment, with the threat of diversification of current delivery services
Goals of ResearchAnswer the following questions:
● Who uses delivery services?
● What criteria affect a consumer’s purchase?
● What drives consumers to purchase on web and mobile
applications?
● Are consumers familiar with Drizly and other food
delivery services?
Methodology
● Conduct secondary research
● Conduct primary research through Qualtrics survey
Who Is the Demographic?
● Target demographics
○ Access and interest in
technologies
○ College-aged, working
professionals, highly
educated, expendable
income
○ Ages 18-34 make up 70%
of delivery service
consumers
● Our Survey
○ 170 respondents
○ 59% between the ages of
21-34, majority female
○ 48% are employed full
time, 38% are students
Industry Analysis● Online is most used,
followed by telephone
● Respondents mostly drink
none, 1 or 2, or 3 or 4
alcoholic beverages a
week
● The majority of
respondents never use
delivery services, with the
next popular response
being once a week
Industry Analysis ● Food/Beverage Delivery Applications
○ Funding drying up as VC slows down
○ Startups failing out of saturated market
○ Smaller firms forced out by big players
● Common trends
○ Expand too quickly and lose momentum
○ Bigger firms invest in apps & collaborations
occur
■ Whole Foods purchased Instacart,
Foursquare & Delivery.com, Yelp & Eat24
○ Food startups lost a quarter of a billion in
investments from 2015 to 2016
SWOT Analysis
The Marketing Plan
Online and In Context● High-tech online delivery
service, print ads inconsistent
● Higher conversion on ads that
bring consumers directly to
delivery site
● Rebranded, but have strange
ads featured in print mediums
● Only 36% know Drizly
● Addressing early adopters and
innovators, but going to face
chasm before moving into early
majority
Current StrategyBusiness Level Strategy:
Broad Differentiation
Functional Level Strategy
Drizly:● IT● R&D● Marketing
● Drizly may not be able to hold onto
its first-mover innovation
advantages
● Focus on customer service
● Rewards and incentives for retail
partners
● HR should focus on hiring
competent customer service
employees
● Research customer service best
practices
● Shift marketing to online platforms
Retail Partners:● HR● Customer
Service
Retail Partners ● Local partner intel:
○ Sales from Drizly reach 40-50% of overall sales
○ Underage orderers get banned, but has to reach the
point of delivery
○ Contract to deliver through Drizly is more than likely
exclusive
● To incentivize and maintain market share as a first mover:
○ Market membership to more retail partners,
highlighting increased sales
○ Exclusive delivery membership
○ Generate success stories of other retail partners
Social Media
Facebook: 1.55 billion users
Instagram: 400 million users
Youtube: Over 1 billion users
Twitter: 320 million users
Pinterest: 100 million users
Snapchat: 100 million users
● 74 percent of consumers use social media to make
purchase decisions
● YouTube overall, and even YouTube on mobile alone,
reaches more 18-34 and 18-49 year-olds than any
cable network in the U.S
● 38% of organizations plan to spend more than 20% of
their total advertising budgets on social media channels
in 2015, up from 13% in 2014
● 90% of young adults (ages 18 to 29) use social media
Social Media● Current social media is
poorly timed, too frequent,
and offers little to no value
to consumers
● Posts are frequently recipes,
but appear at odd times
● Weak engagement
● No direct mention of ability
to purchase recipe items on
Drizly
● Do not advertise coupon
codes
Content Calendar
Social Media● Customize content for each
social media channel:
○ Encourage engagement
and suggestions
○ Provide coupon codes
○ Interact with other
brands
○ Target consumers
talking about drinks or
alcohol by location and
provide them with a
coupon
Influencer Marketing
● “Rather than marketing directly to
a large group of consumers, you
instead inspire/hire/pay
influencers to get out the word for
you.”
● 92% of consumers say they trust
word-of-mouth and
recommendations from friends
and family above all other forms
of advertising
● 13-24 year olds identified more
with YouTubers than with TV
personalities or movie stars
Derrick Schommer3.1K1.2K8KCommon Man Cocktails
Mamrie Hart543K 866K32K You Deserve a Drink
Elliott Morgan139K 83.3K38K Happy Hour
Strategic Partnerships
● Partner with major alcohol beverage companies (Jameson,
Smirnoff) to advertise availability through Drizly on social
media
● Target posts by location, focusing on areas where Drizly is
accessible
● If the company limits the post's audience, they can control
the visibility of the post based on audience age, gender,
location and language
Strategic Partnerships
● Most familiar delivery
service is Grubhub
● Processes 1.6 million
orders per week
● Expected revenue will be
$2.6 billion in 2016
● Partnership with Grubhub,
combine to sell both food
and alcohol for delivery
● Similar business models
Measures of Success ○ Impressions
■ Increase impressions per post from 44K to 75K
○ Social Media Followers
■ Increase total channels’ followers by 70%
○ Social Media Engagement Per Post
■ 15 interactions on Twitter
■ 500 on Instagram
■ 50 on Facebook
○ Retail Partner Sign-Ups
■ 30 new retail partners
○ Website Visitors
■ 80,694 in February 2016
■ Increase to 100,000 per month
○ Revenue
■ Drizly’s revenue was $1M in 2015
■ Increase revenue to $2M in the year the marketing
plan is enacted
Budget and Return
● Acquisition cost for new retail
partners: $2,000 per partner
● 15% of impressions will engage
with the media, and 5% of the
impressions will purchase
● Acquisitions cost for new
consumers: $6.53 per
consumer
● Return on Investment: $4.64
per dollar spent
Limitations
● No access to Drizly’s internal information
● No industry intel about advertising partnerships
● No direct information available on differences in
markets’ success
● Biased towards Boston market and female respondents
● Respondent age requirement 21+
Conclusions
● Adjust advertising to reach consumers online and in the
proper context
● Tailor content by channel, reducing cross-channel posts
● Focus on customer service instead of innovation
● Partner with both Grubhub and major alcohol brands
Thank You! Q & A
Industry Analysis
Delivery Service Industry
● $34.2 billion market in 2013
● 60% of Americans order take out or
delivery once a week
● Online orders totaled 403 million in 2010
● Online orders totaled 904 million in 2015