Harvard Case - EatSure: Bringing Surety From the Clouds
"EatSure: Bringing Surety From the Clouds" Harvard business case study is written by Ashima Vardhan, Paaras Bhardwaj, Sourav Garg, Jatin Pandey. It deals with the challenges in the field of Marketing. The case study is 15 page(s) long and it was first published on : Oct 15, 2023
At Fern Fort University, we recommend EatSure adopt a multi-pronged strategy focused on building brand awareness, expanding its reach, and leveraging technology to enhance customer experience and drive sustainable growth. This includes:
- Strengthening Brand Positioning: Refine EatSure's brand positioning to emphasize its unique value proposition of convenience, quality, and trust in the online food delivery space.
- Expanding Market Reach: Target new customer segments through strategic marketing campaigns and partnerships, including exploring international markets.
- Leveraging Technology: Invest in AI-powered solutions to optimize delivery routes, personalize customer experiences, and enhance operational efficiency.
- Building a Robust Customer Loyalty Program: Develop a loyalty program to incentivize repeat purchases, foster customer engagement, and build brand advocacy.
2. Background
EatSure is a rapidly growing online food delivery platform in India, facing challenges in building brand awareness, managing operational costs, and competing with established players like Swiggy and Zomato. The case study highlights EatSure's initial success in building a strong customer base through its focus on quality and hygiene. However, the company is now seeking to expand its reach, improve operational efficiency, and navigate the competitive landscape.
The main protagonists are:
- Anurag: EatSure's founder, passionate about providing a reliable and trustworthy food delivery service.
- Rishi: The head of marketing, responsible for developing strategies to increase brand awareness and customer acquisition.
- Shruti: The head of operations, focused on optimizing delivery processes and managing costs.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
- SWOT Analysis:
- Strengths: Strong focus on quality and hygiene, robust technology platform, established customer base, strong brand reputation.
- Weaknesses: Limited brand awareness, high operational costs, lack of a robust customer loyalty program, limited geographic reach.
- Opportunities: Expanding into new markets, leveraging technology for operational efficiency, building a strong brand identity, developing strategic partnerships.
- Threats: Intense competition from established players, fluctuating food prices, potential regulatory changes, evolving customer preferences.
- Porter's Five Forces:
- Threat of New Entrants: High, due to the relatively low barrier to entry in the online food delivery market.
- Bargaining Power of Buyers: High, as customers have a wide range of options available.
- Bargaining Power of Suppliers: Moderate, as EatSure depends on restaurants and delivery partners.
- Threat of Substitute Products: High, as customers can choose to cook at home or order from other channels.
- Rivalry Among Existing Competitors: Very high, as the market is dominated by established players.
- Marketing Mix (4Ps):
- Product: EatSure's product is its online food delivery platform, offering a wide range of cuisines and restaurants.
- Price: EatSure needs to find a balance between competitive pricing and maintaining profitability.
- Place: EatSure's distribution channels include its website and mobile app.
- Promotion: EatSure needs to invest in effective marketing strategies to reach its target audience.
4. Recommendations
1. Strengthening Brand Positioning:
- Develop a Unique Brand Identity: Emphasize EatSure's focus on quality, hygiene, and trust through a strong brand identity. This can be achieved through a distinctive logo, tagline, and brand voice.
- Target Specific Customer Segments: Identify and target specific customer segments based on their needs and preferences. This could include families, students, working professionals, or health-conscious individuals.
- Leverage Storytelling: Create compelling brand narratives that resonate with target audiences, showcasing EatSure's commitment to quality and customer satisfaction.
2. Expanding Market Reach:
- Invest in Targeted Marketing Campaigns: Develop targeted marketing campaigns across various digital channels, including social media, search engine marketing, and influencer marketing.
- Explore Strategic Partnerships: Partner with other businesses, such as restaurants, grocery stores, and delivery services, to expand reach and offer bundled services.
- Consider International Expansion: Evaluate the potential for expansion into new markets, particularly those with growing demand for online food delivery services.
3. Leveraging Technology:
- Invest in AI-Powered Solutions: Implement AI-powered solutions to optimize delivery routes, predict demand, and personalize customer experiences.
- Enhance Customer Experience: Develop a user-friendly mobile app with features like personalized recommendations, order tracking, and seamless payment integration.
- Improve Operational Efficiency: Utilize data analytics to identify areas for improvement in operations, such as delivery time, order accuracy, and customer support.
4. Building a Robust Customer Loyalty Program:
- Develop a Multi-Tiered Loyalty Program: Create a loyalty program with tiered rewards based on customer spending and engagement.
- Offer Exclusive Deals and Discounts: Provide exclusive deals and discounts to loyal customers, encouraging repeat purchases.
- Personalize Customer Communications: Utilize customer data to personalize communications, such as birthday greetings, special offers, and targeted recommendations.
5. Basis of Recommendations
These recommendations consider the following factors:
- Core Competencies: EatSure's core competencies lie in its technology platform, quality focus, and customer service. The recommendations leverage these strengths to drive growth.
- External Customers: The recommendations cater to the needs and preferences of EatSure's target customer segments, focusing on convenience, quality, and value.
- Competitors: The recommendations address the competitive landscape by focusing on differentiation, innovation, and customer loyalty.
- Attractiveness: The recommendations are expected to generate positive ROI by increasing revenue, reducing operational costs, and building brand loyalty.
6. Conclusion
EatSure has the potential to become a leading player in the online food delivery market by focusing on brand building, market expansion, technological innovation, and customer loyalty. By implementing the recommended strategies, EatSure can effectively navigate the competitive landscape, enhance customer experience, and drive sustainable growth.
7. Discussion
Other Alternatives:
- Aggressive Price Competition: This strategy could lead to a price war with established players, potentially impacting profitability.
- Focusing Solely on Existing Markets: This approach could limit growth potential and leave EatSure vulnerable to competition.
Risks and Key Assumptions:
- Customer Acquisition Costs: The effectiveness of marketing campaigns and partnerships in acquiring new customers is a key assumption.
- Technology Adoption: The successful implementation of AI-powered solutions and technological enhancements is crucial for operational efficiency.
- Competitive Response: The competitive landscape is dynamic, and the success of EatSure's strategy depends on the response of its competitors.
8. Next Steps
- Develop a Detailed Implementation Plan: Outline specific actions, timelines, and resources for each recommendation.
- Conduct Market Research: Gather data on target customer segments, competitive landscape, and market trends.
- Pilot Test Recommendations: Pilot test key initiatives before full-scale implementation to assess effectiveness and refine strategies.
- Monitor Performance and Adjust: Continuously monitor performance metrics and adjust strategies based on data and feedback.
By taking these steps, EatSure can effectively implement its growth strategy and achieve its goals of becoming a leading player in the online food delivery market.
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Case Description
EatSure was the direct-to-customer platform of Rebel Foods, an internet-based restaurant. EatSure was positioned as a digital food court compared to online food aggregators and other companies in the food-service industry. Sagar Kochhar, chief executive officer of EatSure, had a meeting with his executive team to discuss the company's goal of reaching fifty million EatSure app users. EatSure had recently reached more than seven million downloads. The team met to analyze EatSure's positioning with respect to other food-delivery competitors following recent market research and the creation of a perceptual map. Kochhar wanted to understand the company's existing market position and decide on a future course of action to meet this growth goal.
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