LAUNCHING UberEATS

IN BRISBANE

SYNERGYMARKETING

Amanda Earl (n8871116) Jess Ferguson (n9190368) Bradley McClelland (n858549) Samantha McVicar (n8547394) Danielle Vaz (n8874182)

13.10.16 2,523 words

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1. Executive Summary The food delivery services industry is seeing exponential growth in Australia and around the world, and as a result, launching UberEATS into the Brisbane market is a lucrative move (Euromonitor, 2016). This report provides a strategic plan for the introduction of UberEATS into Brisbane over a three-month period. The primary target market identified are tech-savvy 18-45 year olds living within a 5-kilmoetre radius of Brisbane CBD, consisting of singles, young couples and families. Direct competitors include Foodora and Deliveroo, who are established in the Brisbane market and offer very similar service offerings to UberEATS (Aaker, 2014; Deliveroo, 2016; Foodora, 2016). MenuLog and Delivery Hero also serve as secondary competitors, with an established presence and large service area across greater Brisbane (Eatnow, n.d.; Menulog, 2016). Considering these factors, three strategic initiatives along with corresponding objectives have been put forward. The first, consists of converting pre-existing Uber users into UberEATS customers through in-app promotion. The second details a high-impact product launch using drones delivering food along Queen Street Mall. This aims to associate the brand with innovative technology and generate maximum earned media and publicity, while simultaneously appealing to tech savvy users. Thirdly, a temporary strategic partnership with Eat Street will allow users to enjoy the market’s delivered food, associating UberEATS with premium ‘foodie’ offerings. The total cost of realizing these initiatives is estimated at $246,700. Overall, the proposed strategy aims to increase awareness and uptake of UberEATS in the Brisbane market, while simultaneously energizing and levering the existing Uber brand.

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Table of Contents

1. EXECUTIVE SUMMARY 2

TABLE OF CONTENTS 3

2. UBEREATS ANALYSIS 4

2.1 PRODUCT AND CONTEXT OVERVIEW 42.2 CUSTOMER ANALYSIS 42.3 COMPETITOR ANALYSIS 62.4 MARKET/SUBMARKET ANALYSIS 82.5 ENVIRONMENTAL ANALYSIS 102.5.1 STRATEGIC UNCERTAINTIES 11

2.6 STRATEGIC OBJECTIVES 12

2.6.1 OBJECTIVE ONE: CONVERT 122.6.2 OBJECTIVE TWO: LAUNCH EVENT 132.6.3 OBJECTIVE THREE: UBEREAT-STREET 14

3. EXECUTION STRATEGY 15

3.1 BUILDING AND MANAGING BRAND EQUITY AND RELATIONSHIP 163.2 ENERGIZING AND LEVERAGING THE BUSINESS 16

4. BUDGET 18

5. CONCLUSION 20

6.0 REFERENCES 21

LIST OF TABLES AND FIGURES TABLE 1- TARGET MARKET ANALYSIS 5FIGURE 1. UBEREATS BRISBANE SERVICE REGION 6TABLE 2 - UBEREATS COMPETITOR ANALYSIS 7TABLE 3 - COMPETITOR STRENGTH GRID 7FIGURE 2. UBEREATS MARKET POSITIONING 8FIGURE 3. PORTER’S FIVE FACTOR ANALYSIS OF UBEREATS 9TABLE 4 - ENVIRONMENTAL ANALYSIS 10TABLE 5 - SMART OBJECTIVE ONE 12TABLE 6 - SMART OBJECTIVE TWO 13TABLE 7 - SMART OBJECTIVE THREE 14TABLE 8 – EXECUTION STRATEGY 15TABLE 9 – CAMPAIGN BUDGET 18

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2. UberEATS Analysis

2.1 Product and Context overview Leveraging its successful Australian launch in 2012, Uber currently seeks to extend its service offering, introducing UberEATS into Brisbane (Golden, 2016; Tan, 2015). UberEATS successfully penetrated Melbourne and Sydney’s markets, resultant from tangible and intangible resource competitive advantages, and inimitability; a combination of brand-loyalty and extensive driver inventory (Tan, 2015; Kohler, 2016). UberEATS’ launch allows for operation under optimum capacity, where previously an excess of drivers may have existed whom are now serving a dual purpose (Lieu, 2016; McDuling, 2016). Maintaining Uber’s vision, UberEATS allows consumers to enjoy their favourite restaurant’s food in the convenience of their home at the touch of a button; working as an intermediary between businesses and consumers (Golden, 2016). UberEATS’ service involves predominantly intangible, low involvement, high frequency purchases (Wirtz, Chew & Lovelock, 2012); however, providing real-time GPS tracking throughout the delivery process adds tangibility to the service (Hellen & Gummerus, 2013). The service’s core product is the convenience provided, the actual product is the human interaction and food, whilst the augmented product is the app and any in-app offers and discounts (Wirtz et al., 2012). This service’s provision of limited tangible elements presents possible threats to its viability; poor interaction or food quality may diminish restaurants’ reputations and images, and customer satisfaction (Kohler, 2016).

2.2 Customer Analysis UberEATS’ primary customer segment is 18 to 45-year-old Brisbane city residents, with busy lifestyles and diminished leisure time (Euromonitor, 2016; Magner, 2016; Roy Morgan, 2016). This age bracket represents 73.3 % of frequent Uber users, thus is a good indication of such users of the UberEATS service (Roy Morgan, 2016). These consumers lead a highly tech-integrated lifestyle, relying on their smart devices for numerous aspects of their daily life (Magner, 2016). According to Rogers’ Innovation Adoption Lifecycle (1962), these consumers exist as Innovators or Early Adopters; comprising 16% of the population at launch (Funk, 2015). As such, UberEATS motivates these customers by providing extensive meal choices at their fingertips and an easy path-to-purchase (Bell, Corsten & Knox, 2011; UberEATS, 2016). As urban residents, these consumers deem car ownership unnecessary; UberEATS’ convenience thus intensifies motivation to utilise the service (Brisbane City Council, 2016). Urban dwellings’ provision of predominantly rudimentary cooking facilities partially informs these consumers’ reliance upon restaurants for convenience (Magner, 2016). This segment favours ‘foodie’ options, and healthy alternatives, resulting in lowered price sensitivity, granted the

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restaurant provides a high quality product (Magner, 2016). Due to their high discretionary income, they are willing to spend money to remain trendy and modern, thus another motivation to use UberEATS stems from the associated image (Magner, 2016). Table 1 provides a breakdown of these consumers’ geographic, demographic, psychographic and behavioural attributes, whilst Figure 1 illustrates where these consumers reside.

Table 1- Target Market Analysis

Geographic

Residence: Brisbane CBD and proximal suburbs within a 5km radius. (Figure 1)

Labour Force: 107,820 (Brisbane Community Profiles, 2016)

Population: 167,688 (Brisbane Community Profiles, 2016)

Demographic

Age: 18 to 45

Gender: Male and Female

Lifestyle: Modern, busy, tech-focused

Income: $50k p/a +

Relationship status:

Singles, young couples and young parents

Psychographic

Value Segments: Socially Aware, Young Optimism, Look at Me

Attitudes: Non-conforming, rebellious against old/obsolete ways, innovative, following trends,

Values: Convenience, Modern, Technology integration,

Needs: Attractive design, usability, non-intrusive, consistency, positive brand image

Behavioural

Usage: Repeat users, multiple uses per week, predominantly lunch and dinner

Benefits sought: Added convenience, increased leisure time, higher quality meals without the effort, image, trending behaviour, impressing friends/dates

`Price sensitivity: Low-Medium

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Figure 1. UberEATS Brisbane service region

2.3 Competitor Analysis Three distinct tiers of strategic competitor groupings exist within Brisbane (Aaker, 2014). Third-tier competition stems from Fast-Food delivery (Dominos, McDonalds) and pre-made health foods (YouFoodz). These competitors share minimal target market overlap with UberEATS, however will exist within a consumers’ evoked set (Wirtz & Mattila, 2003). Secondary competitors Eatnow, Delivery Hero and Menulog differentiate their service from UberEATS by delivering to a wide geographic region, distributing from local takeaway establishments (Eatnow, n.d.). This ensures broader market potential, however results in variable delivery fees and potentially lower quality meals (Eatnow, n.d.; Menulog, 2016). Primary competitors Foodora and Deliveroo offer strategic similarities to those of UberEATS (Aaker, 2014; Deliveroo, 2016; Foodora, 2016). The demand for high-quality food has resulted in similar value propositions among first tier competitors, making this a highly competitive space (Euromonitor International, 2016a; Kohler, 2016). Table 2 outlines competitor’s strengths, weaknesses and customer ratings in comparison to UberEATS. Table 3 and Figure 2 provide a strength grid and positioning map, respectively, of primary and secondary competitors

UberEATS Delivery Suburbs

Auchenflower Bardon Brisbane City Bulimba East Brisbane Fairfield Dutton Park Fortitude Valley Hawthorne Highgate Hill Kangaroo Point Kelvin Grove Herston

New Farm Newstead Bowen Hills Norman Park Paddington Milton Red Hill South Brisbane Spring Hill Toowong West End Woolloongabba

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Table 2 - UberEATS Competitor Analysis

UberEATS Foodora Deliveroo

Strengths Extensive driver inventory; limited expenditure to gain new drivers. Strong brand image, ‘halo effect’ as an innovative brand High quality menu potential Flat rate delivery fee Incomparable delivery time potential Low fixed costs Large target market Broader service region

Focused, targeted service region; Brisbane city and proximal surrounding suburbs. Recognisable branding High quality menu options Flat rate delivery fee Low minimum orders due to the nonissue of proximity International organisation-potentiates higher chance for growth and expansion Pre-order available Acquired by Delivery Hero in 2015

Focused, targeted service region; Brisbane city and proximal surrounding suburbs. Recognisable branding High quality menu options Flat rate delivery fee Low minimum orders due to the nonissue of proximity International organisation; potentiates higher chance for growth and expansion

Weaknesses Relatively new product extension Competitive market Negative press surrounding UberX legalisation May not possess necessary tools to deliver food to expected standard of the brand

Lengthy delivery times Limited menu Higher cost structure due to investment in fixed assets (bikes and uniforms). Large barriers to market exit. Limited delivery personnel Limited service area Vulnerable due to recent rebranding in 2015 Delivery min. order of $20

Only recently launched in Australia in 2015 Limited menu Higher cost structure due to investment in fixed assets (bikes and uniforms). Large barriers to market exit. Limited delivery personnel Limited service area

Customer Reviews

N/A Food doesn’t keep hot during delivery.

2.2/5 Poor delivery coverage, long delivery times (2 hours +), poor customer service.

3/5 Lengthy delivery times, small service area.

Table 3 - Competitor Strength Grid

Primary Competitors Secondary Competitors

Foodora Deliveroo Eatnow Menulog Delivery Hero

Food Quality

Customer Satisfaction

Delivery Distance

Delivery speed

Brand recognition High Medium Low

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Figure 2. UberEATS market positioning

2.4 Market/Submarket Analysis Currently the foodservice market in Australia is growing annually, with 2.3% expected growth through 2016, and an expected $13.1 billion AUD revenue (Magner, 2016). The delivery submarket of foodservice, in which UberEATS operates, experienced global growth rates of 33% (Euromonitor, 2016). This submarket’s rapid expansion is resultant of aforementioned consumer lifestyle trends, as well as the advancement of digital ordering and mobile payments (Euromonitor, 2016). Delivery food services in their current form are relatively infantile in Australia and are expected to experience exponential growth through 2020; however, the potential risk of saturation, due to a number of companies competing for the same consumer dollar, is evident (Euromonitor, 2016a). Point-to-point couriering in Australia accounted for actual sales of $990 million AUD, albeit, foodservice delivery is estimated to have accounted for about 4 to 10% of this market; meaning potential sales of $40 to $90 million AUD (Euromonitor, 2016a). As can be seen in Figure 3, strong competition, high substitutability and thus, initially increased customer and supplier bargaining power, suggests UberEATS’ potential profitability as medium to high, depending on service quality (Aaker, 2014; Porter, 2008). UberEATS’ cost structure will be relatively low as drivers supply their own cars and uniform, thus costs will predominantly arise from branded packaging, food-keeping devices, restaurant contracts, marketing and application upkeep (Aaker, 2014).

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Distribution is direct to customer, with no current alternative channels available. Key success factors in the industry include service and product differentiation, ease of utilisation, variety, short delivery times, high food quality, customer service and swift issue resolution (Magner, 2016a).

Figure 3. Porter’s five factor analysis of UberEATS

Threat of New Entrants

Medium-High due to low barriers to entry and high market

growth rate.

Bargaining Power of Suppliers

Low due to economies of scale

that delivery services have.

Rivalry Among Existing Competitors

Medium

Bargaining Power of Customers

Medium due to limited number of similar offerings and moderate

price sensitivity.

Threat of Substitutes

Low due to different target market and different demand for

fast-food deliveries.

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2.5 Environmental Analysis Table 4 analyses the potential and current issues present in the operating environment of UberEATS (Aaker, 2014).

Table 4 - Environmental Analysis

Trend Type Analysis

Technology Trends

The technological advancement of driverless cars, as well as delivery drone usage is a trend that will strongly impact UberEATS. If this technology comes to fruition for commercial use, it would result in less drivers, thus requiring large investment into fixed assets as well as an entirely new method of service provision. Virtual technology has now come into the Slope of Enlightenment of Garner’s 2016 Hype Cycle, signifying numerous applications for use such as user’s seeing their food pre-purchase (Gartner, 2016).

Consumer Trends

Consumers are increasing their online and mobile expenditure due to its added convenience (Magner, 2016a). Consumer shopping and payment trends due to wearable smart devices may require optimisation of the UberEATS app to facilitate any apparent differences these devices pose (Carmody 2016). According to IBISWorld (2016c), the ever increasing foodie culture is expected to drive revenue growth in the restaurant, and subsequent, industries. Consumers are now making a conscious effort to choose healthier and higher quality food, especially when opting for the convenience of takeaway (IBISWorld, 2016c). These trends are expected to increase over 2016 – 17 (IBISWorld, 2016c). As health consciousness increases, higher proportions of vegetarians and vegans may arise, who may opt to cook for themselves to ensure the freshness of ingredients (Magner, 2016). Housing affordability is driving younger consumers towards outer suburbs due to lower costs; increasing the size of the target market outside of UberEATS service region (Tonkin, 2016).

Government/ Economic Trends

The recent legalisation of Uber will bring with it regulatory constraints, as the government will attempt to protect the pre-existing taxi industry (Remeikis, 2016). These regulations may not directly affect UberEATS however they may diminish Uber’s profitability and alter operations. Current political instability and looming possibility of a recession will drive consumers to higher savings rates, and constrain unnecessary expenditure (Long, 2016).

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2.5.1 Strategic Uncertainties Many strategic uncertainties exist for UberEATS within the operating climate (Long, 2016). Political instability and the possibility for recession will reduce consumer expenditure over the coming months, as uncertainty leads to higher savings rates, whilst consumers seek to only make necessary purchases (Darby, Li & Muscatelli, 2004). Despite this, consumer confidence has been steadily increasing throughout 2016 (Roy Morgan, 2016a). Government regulations extending from Uber’s legalisation, such as more vigilant background checking and stricter vehicle safety standards, will impact Uber’s service provision (Remeikis, 2016). Such impacts from regulation may have spill-over effects into UberEATS, resultant from intra-organisational reshuffling to accommodate regulation compliance. Finally, rapid technological advancement of autonomous delivery vehicles, will have major impacts on UberEATS service provision, and cost structure (Clay, 2014).

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2.6 Strategic Objectives Based upon key audit aspects, three strategic objectives have been developed which will assist in a seamless launch of UberEATS into the Brisbane market, defining a distinct and differentiated market position (Golden, 2016). These objectives formulate a three-month campaign, beginning on November 1st 2016, which aims to increase the awareness and user base of UberEATS in Brisbane, whilst safeguarding against strategic uncertainties (Golden, 2016).

2.6.1 Objective One: Convert This initiative focuses on converting pre-existing Uber customers into UberEATS users and will run throughout the entire 3-month campaign period. Target users for this initiative are those identified in Section 2.2, the Customer Analysis, with residences within the previously specified inner-city Brisbane area. Users from this group with high brand loyalty and trust are likely to have positive attitudes towards the UberEATS brand extension (Anwar et al, 2011). In terms of functionality, banners will be added that appear over the Uber app while users are waiting for their car to arrive, which offers them a discount code for their first UberEATS purchase. With one tap, users will be directed to download the UberEATS app with the discount code added to their promotions section.

Table 5 - SMART Objective One

Specific Add pop-up banners to the existing Uber application with a $10 discount voucher for a user’s first UberEATS purchase. The intention of this is to convert regular Uber users into UberEATS users. Only users within the current UberEATS delivery zone will be shown the banner.

Measurable In order for at least 10% of existing Brisbane Uber users to download the UberEATS app or access it online through their account.

Achievable It is likely that users with high brand loyalty to Uber would proceed to use the promotion code and download the UberEATS app.

Realistic Modifications to the Uber application would be limited, and would resemble similar overlay banners that appear regularly. It would also be easy to target inner-city dwellers from their stored Home location.

Timely The banners will appear for the entire 3 month period.

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2.6.2 Objective Two: Launch Event Based upon issues identified in section 5.4 and 5.4.1, a product launch for UberEATS will be held on November 1st in the Queen Street Mall. The event will feature drones being utilised to deliver food along the mall, commandeered by Australian FPV Racing Association competitors (Australia Drone Nationals, n.d.). Throughout, Uber representatives will hand out discount cards and the event will culminate with a presentation regarding UberEATS, as well as the announcement of a strategic sponsorship/partnership with the Australian FPV Racing Association. Strategically creating a positive brand association with such autonomous delivery vehicles will enhance customers perceptions of UberEATS innovativeness when this technology begins operating in Australia (Aaker, 2014). Furthermore, launching UberEATS with the speculation of drone delivery will result in heightened earned media and impressions across social media platforms; increasing publicity whilst keeping Uber’s costs low (Distasio & Brown, 2015).

Table 6 - SMART Objective Two

Specific Hold a product launch in the Brisbane Queen Street Mall. This will involve Uber representatives handing out promotional codes for UberEATS as well as answering customer enquiries. An Uber representative will also give a presentation regarding the service, service regions and the restaurants who are involved. Throughout the launch, drones will be used to deliver doughnuts from Doughnut-Time along the mall. This seeks to create a strong brand association with such technologies and create hype around the UberEATS product, as well as speculations regarding drone usage, resulting in increased earned media. During the launch, Uber drivers will be provided removable small UberEATS flags which they will display on the launch day to extend the reach of the launch. Prior to the launch, a social media campaign will be run to raise awareness of the product launch. Following the launch, an aggressive two-week SEM campaign will be run, where UberEATS will advertise on keywords relating to competitors to intercept this market.

Measurable The aim of the product launch is to inform customers of UberEATS existence, encourage product use, gain widespread awareness through media and high impressions on social media. Key performing indicators are:

1. 1000 promotional cards handed out will indicate success on the day. 2. 80% increase in UberEATS app downloads in the week following the launch. 3. 500,000 social media impressions from owned and earned media.

Achievable Uber will need to outsource drones, plus drone operators to use on the day. Preceding he launch, targeted advertisements for the Brisbane area can occur through Uber and UberEATS’ pre-existing social media channels (Facebook, Instagram). Uber will also need to staff to hand out promotional codes on the day.

Realistic Uber currently possess all skills to achieve this goal, with the exception of drones, making this goal highly achievable. Furthermore, due to Uber’s brand image, size and recent events regarding legalisation, this event will gain heightened media and customer attention.

Timely Tuesday 1St of November 2016, 11:00am- 1:30pm- set up prior to the workers lunch period and begin the event at around 11:30, with the presentation occurring at 12:15 to reach maximum potential customers.

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2.6.3 Objective Three: UberEAT-Street In response to the consumer trends identified in Section 2.5, UberEATS will form a strategic partnership with Brisbane’s well known ‘foodie’ haven, Eat Street Markets. UberEATS will offer consumers exclusive access to the Eat Street Markets from the convenience of their own homes. Partnering with Eat Street will create a competitive advantage for UberEATS, providing its Brisbane target market with a unique foodie experience whilst tapping into Eat Street Markets strong brand association. This exclusive offering will last for a period of one week, during the first week of December, where customers in the Brisbane service area will be able to order a selection of Eat Street delicacies for home delivery by UberEATS.

Table 7 - SMART Objective Three

Specific UberEATS will form a strategic partnership Eat Street Markets for an exclusive 1 week ‘foodie’ event where UberEATS will deliver a select range of menu items from Eat Street to its Brisbane service area. The aim of this strategy is to assist UberEATS successful launch into the market by creating exposure, building strong brand association as well as increasing brand awareness and competitive advantage through the unique product offering. Promotion will begin one week prior to the event through social media and public relations (PR) channels.

Measurable The aim of this strategic partnership is to increase UberEATS exposure and market awareness whilst encouraging new UberEATS users. Success will be measured by;

1. A 15% increase in UberEATS app downloads during the promotion and event period. 2. A 25% increase in orders placed through the UberEATS app during the UberEAT-Street event.

Achievable In order to achieve this objective, UberEATS will need to develop an exclusive partnership with Eat Street Markets. Furthermore, Eat Street Markets will need to have a small range of vendors that are willing and available to participate in this one week event. UberEATS will need to promote this event prior to launching in order to increase awareness and to generate demand (through social media and PR etc.). Uber already has a large driver base established in Brisbane, therefore UberEATS will be able to utilise these drivers for the home food delivery.

Realistic Uber and UberEATS have the necessary resources along with strong positive brand association to successfully achieve this strategic objective. Furthermore, this strategic partnership provides Eat Street Markets with a unique opportunity to reach optimum capacity during times where they are currently not able to do so (i.e. midweek).

Timely The UberEATS Eat Street Market launch will be implemented on the 28th of November for the first week of December, with pre-event promotion beginning the week prior.

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3. Execution Strategy The following table outlines the strategic path for UberEATS to undertake whilst entering Brisbane. This includes partnering restaurants, distribution areas and strategies, packaging and delivery mechanisms, advertising platforms and staff member interactions with customers.

Table 8 – Execution Strategy

Business Aspect Strategy

Partnered Restaurants Cross-referenced against UberEATS Sydney and Melbourne, and based upon current customer ratings as well as to offer a wide variety of styles and prices, the following restaurants will be partnered with in Brisbane: 1889 Enoteca (Italian), Bacchus (French), Tartufo (Italian), Black Bird Bar and Grill (Steak), Julius Pizzeria (Pizza), Sake Restaurant and Bar (Japanese), Jellyfish (Seafood), Longtime (Thai), Mecca Bah (Middle Eastern), Kwan Brothers (Asian), Viet De Lites (Vietnamese), Bourbon Street (America), Yardbird Ale House (American), Asana (Vegetarian), Summer House (Vegetarian), Vege Rama (Vegetarian/Vegan), Hatch & Co (Vegetarian/Vegan), Red Hook (American), Little Mykonos Taverna (Greek), Doughnut Time (Desserts), Mr Fitzs’ (Dessert).

Distribution Areas Delivery regions (outlined in Figure 1) will exist within a 5km radius from the Brisbane CBD. Initially, the northmost suburb within this radius will be Bowen Hills, Southmost will be Woolloongabba, eastmost will be Morningside and Westmost will be Toowong.

Distribution Strategy For distribution within high-traffic areas which require cumbersome navigation (one-way streets etc.) the use of bicycles will be employed. Albeit, this will only be the method of distribution dependent upon the proximity of the delivery location to the respective restaurant ordered from. Such that, when a bike would not be able to cover the distance in a satisfactory time (less than 30 minutes), delivery via car will substitute. This multi-dimensional distribution strategy differentiates UberEATS value proposition from competitors, leveraging internal capabilities of the company.

Delivery Mechanisms In order to ensure immaculate quality of food upon delivery and to negate common pitfalls of competitors, UberEATS Brisbane will provide drivers with an insulated delivery box to ensure food arrives at optimal temperature. For delivery bikes, an easily detachable box will be utilised which sits stabilised on the bike and is not worn on delivery riders backs to avoid messy presentation. This box will also be insulated.

Packaging UberEATS Brisbane will employ the paper bags with UberEATS branded utilised in Sydney and Melbourne.

Advertising Advertising will predominate online, using SEM as well as social media marketing. UberEATS has some excellent testimonial videos already developed on YouTube which could be leveraged through social media in Brisbane to attract customers and suppliers.

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3.1 Building and managing brand equity and relationship Since the food delivery market in Brisbane is highly competitive, it is essential for UberEATS to establish a strong brand from the outset (Aaker, 2014). As a product extension, UberEATS will maintain many key aspects of its parent brand’s, Uber, existing brand equity (Keller, 2013). Of key importance is brand awareness, which Aaker (2014) suggests can provide a competitive difference in markets where product parity is high; imperative for UberEATS operation in Brisbane. Reaching 65% brand awareness among consumers within the target market in 2015, Uber's brand awareness is extremely high, thus translating this to UberEATS will ensure competitive and fruitful market entry (Marzilli, 2015). In achieving this, strategic objective One seeks to target frequent and current users of the Uber service who identify with the brand personality and have established positive brand associations and loyalty (Pappu & Quester, 2016). Capturing these consumers will insulate them from competitors, enhancing the salience of the Uber brand, whilst monopolising their food delivery expenditure; reducing churn on customer acquisition (Pappu & Quester, 2016). Strategic objectives Two and Three aim to effectively increase UberEATS brand association and image through attributing innovative drone technology, and Eat Street Markets premium ‘foodie’ reputation, with the UberEATS brand experience. Innovative and contemporary brand associations have the potential to exist as continued business assets, simultaneously developing a brand's identity and customer loyalty (Aaker, 2014; Sasmita & Mohd Suki, 2015).

3.2 Energizing and leveraging the business Uber’s innovative offering resonated with customers through its comparative reliability and ease of use, fulfilling esteem and self-actualization needs. In order to achieve similar success, prosperity and longevity in the market, the essential strategic path for UberEATS to ensue is one involving product innovation, safeguarding against forecasted technological trends (Aaker, 2014; Clay, 2014). Lack of innovation from a subsidiary product under the same parent brand, may be detrimental to brand energy; potentially diminishing overall brand relevance and visibility (Aaker, 2014). Strategic objective two’s sponsorship/partnership with the Australian FPV Racing Association simultaneously acts as a countermeasure to potentially threatening technological trends and a branded energizer (Aaker, 2014; Clay, 2014). This sponsorships’ benefits will be twofold. Firstly, it associates the UberEATS brand with drones; ultimately allowing for a smoother and more accepted introduction of this technology into the market (Sasmita & Mohd Suki, 2015). Consumer psychology speculates that such a relationship will ensure the impression is maintained that

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UberEATS is far more advanced than competitors in such departments; whilst appealing to Uber’s tech savvy target consumers (Whang, 2016). Such close relations with the Australian FPV Racing Association may mitigate expensive research and development expenditure for UberEATS, which competitors may have already invested. Ultimately, the endgame of this sponsorship is for a branded innovation of drone-delivery in the Brisbane market to ensure positive, continued and impactful perceptions of UberEATS innovativeness as a company (Aaker, 2014). Although such may be achieved through being the first-mover in this category, it is recommended that UberEATS be a close second-mover (Kopel & Loffler, 2008;Naveh, Marcus & Moon, 2007). This strategic decision will allow for UberEATS to monitor competitors pitfalls in service, as well as evade Moore’s chasm in the diffusion of innovation cycle (Kardong-Edgren, 2008). UberEATS can then introduce a superior product and service into the market, capitalising on competitors heavy investment into a product susceptible to quick obsolescence due to technological advancement, and an inflated cost structure as a result (Kopel & Loffler, 2008). Objective Three, will serve as a brand energizer through partnering with Eat Street Markets (Aaker, 2014). Utilising Eat Street as a tactical endorser provide UberEATS with an opportunity to boost customer base, brand image and brand loyalty (Aaker, 2014). Eat Street’s target market shares significant overlap with that of UberEATS, maximising the partnerships potential for success. Furthermore, strong brand associations, and innovative offerings such as this will enhance UberEATS relevance and brand awareness within the market. Although the event will be short-term, UberEATS will maintain a relationship with Eat Street Markets for potential future promotions, or reiterations of the proposed objective. Touch points for this event will include social media sponsored posts, posts through the Eat Street Markets Facebook page, representatives distributing flyers and event coupons in the city, and associated PR promotion for the event. All touch points will be promoting the campaign slogan ‘UberEAT-Street’.

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4. Budget The following table shows the estimated budget for the proposed initiatives.

Table 9 – Campaign Budget

Resource Type Cost ($) Explanation of inclusion Objective

Market research

10,000 Conduct primary market research in order to fully understand what the customers want and expect from UberEATS.

1

Social media Facebook advertising

40,000

(split evenly)

Prices were calculated through Facebook for a 1-month campaign with the estimated daily reach of 110,000 people within a 17 km radius of Brisbane city. The total potential reach was 690,000 people over the entire Facebook campaign.

2, 3

Instagram advertising

10,000

(split evenly)

Instagram advertising was quoted at $6.70 per 1000 impressions (or CPM). As per the 2015 Brisbane Community Profile, 170,000 people live in inner-city Brisbane. A larger budget than originally quoted was given to Instagram advertising in order to be aggressive post-launch.

2, 3

Snapchat advertising (Geofilter)

70,000 The quoted amount for a Snapchat Geofilter was expensive however; it was deemed necessary given the increasing importance of businesses being active on the platform. The snapchat Geofilter is proposed to include the Brisbane CBD and Hamilton area where Eat Street Markets are held. TheGeofilter will run for 5 days.

3

SEM/SEO Freelance specialist (3-months)

7,200

(split evenly)

Quoted at $1,200 per month per client operating in a highly competitive environment. Therefore, for a 3-month campaign with two different initiatives, the total was $7,200.

2, 3

Google Adwords

50,000

25,000

Given the highly competitive market of food delivery, a substantial budget was allocated to Google AdWords.

2, 3

General advertising

Flyers 500

(split evenly)

Flyers were quoted at $250 per 10,000. 2, 3

Discount cards

500

1,000

Discount cards were quoted at $500 for 1000 cards and $1000 for 2500. These cards are necessary to promote discounted offers for first meal purchases.

2, 3

Car flags 1,000 General advertising of UberEATS flags on Uber cars to promote the brand pre-launch and during launch. 2 flags per car were allocated for 200 cars operating in Brisbane CBD. Prices were quoted at $1000 for 400 flags.

All

Drones and Operators (x3)

7,000 3 drones are required for the launch event where they will be used to demonstrate food delivery. Drone operators are required given the environment and necessary skills involved.

2

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Launch equipment

3,000 Equipment such as a PA system, microphone and lectern are necessary for the launch event.

2

Business sponsorship

6,000 Strategic business sponsorship of the Australian National Drone Racing Association for 3-months.

2

Photography 500

1,000

Photography is necessary for event promotion on social media channels. Prices were quoted at $500 for a 2-hour event and post-event editing and $1000 for two 2-hour events and post-event editing (2 nights at UberEAT-Street).

2

3

Wages 1,500

7,500

Representatives handing out advertising materials. For objective 2, the total was calculated from requiring 20 representatives at $25 per hour for the minimum 3-hour casual shift. For objective 3, the total was calculated from requiring 10 representatives working 10 3-hour shifts at $25 per hour.

2

3

Delivery mechanisms

5,000 Mechanisms for delivery drivers and riders to transport food to customers.

All

Total $246,700

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5. Conclusion Due to the current, and continued growth in the food delivery industry, market expansion of UberEATS into Brisbane presents a lucrative endeavour for Uber (Magner, 2016). The strategic objectives and subsequently informed execution strategy, aim to achieve competitive advantage and longevity within the marketplace through leveraging Uber’s brand equity initially, and then future proofing UberEATS against forecasted technology shifts (Clay, 2014). Firstly, converting current loyal users who identify with the brand reduces UberEATS cost-per acquisition, as well as insulates such consumers from competitor offerings (Pappu & Quester, 2016). Secondly, exciting the market through associating UberEATS with drone delivery and creating a strategic partnership creates an innovative halo effect (Whang, 2016). Whilst, a tactical partnership with a pre-established brand, keeps the offering fresh and exciting, reiterating UberEATS innovative nature (Pappu & Quester, 2016). In conjunction, these strategic objectives effectively manage the brand equity and energize the business to achieve a strong position within the market for UberEATS.

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