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INDIVIDUAL ASSIGNMENT- CRM

ON
BUILDING A CUSTOMER CENTRIC
ORGANISATION

Foodilicious
Submitted by

SAIKAT BHATTACHARJEE
80012100125
H027
FOODILICIOUS
Hungry? We are here to serve you!

ORGANISATIONAL PROFILE
Established in 2018, Foodilicious has positioned itself as one of the most distinctive
firms that caters online food ordering and delivery, provides restaurant search and
discovery and restaurant table reservations. The company is headquartered in
Kolkata. Foodilicious has been a pioneer in food ordering and restaurant discovery in
India, which has benefitted both restaurants and customers.  Featuring a robust
review system, Foodilicious allows foodies to find the best meals and restaurants in
their neighborhood. A notable aspect about Foodilicious is that it is among the few
companies that has planned to go global after starting operations in India.
Foodilicious currently features more than half a lakh of restaurants in India on its
platform.

Foodilicious does this by offering its customers amazing food options from
different restaurants starting from starters to main course to desserts and from
Continental to Chinese to Indian, Mughlai, Thai other different cuisines. When using
Foodilicious desktop website or mobile app, it is very easy to select a restaurant of
your choice depending upon the food that needs to be ordered, Pre-booking of
restaurant seats can also be done just by few clicks avoiding the long waiting time in
restaurants especially during festivals. The USP of Foodilicious is they provide
services to the small district headquarters and towns where the other competitor’s
like Foodilicious, Swiggy etc. By ordering food from Foodilicious, you can find the
best discounts and offers from on food items from the best restaurants of the
country. The online payment system is facilitated by Phone Pay, Gpay, UPI and net
banking which provides hassle free online transactions. With improved navigation
system and skilled and trained delivery partners we promise our customers to deliver
the food on time. Since complete customer happiness is company’s top priority, a
24/7 dedicated helpline is there to address any questions or problems that
customers may have.
At present the company has nearly 1200 dedicated employees all over
the country trying to cater the needs of the customers. The company has earned
annual revenue of Rupees 8 billion for the financial year 2022.

MISSION:

“To provide quality food for more people at an affordable price”.

VISION:
“To promote online food delivery platform locally and globally so that any citizen of
any country could get food at any point of time”.

ONLINE FOOD DELIVERY INDUSTRY


The market is currently witnessing growth on account of the increasing access
to high-speed internet facilities and the boosting sales of smartphones. This, in
confluence with the growing working population and inflating income levels, is
propelling the online food delivery market growth in India. Although the players
are mainly concentrated in the urban regions of the country, with Bangalore,
Delhi and Mumbai representing the three largest markets, vendors are now
also targeting smaller cities, as they have strong growth potential. Moreover,
the rising trend of the on-the-go food items and quick home delivery models
that offer convenience, ready-to-eat (RTE) and cheaper food delivery options
are escalating the demand for online food delivery services in the country.
Furthermore, owing to the rising cases of COVID-19, some of the leading
players like Foodilicious, McDonald's Corporation and Domino’s Pizza Inc.
have introduced contactless delivery services. These services ensure that the
food reaches the customer without being touched by bare hands and is
delivered safely with adequate social distancing measures.
CUSTOMER ACQUISITION COST
As this is a new business, we look into average CACs for the online food delivery
industry and did calculation to find a reasonable CAC that would enable Foodilicious
business to be profitable.
Customer acquisition cost varies across industries due to a number of different
factors — including, but not limited, to: Length of sales cycle, Purchase value,
Purchase frequency, Customer lifespan, and Company maturity.
So, the average customer acquisition cost of acquisition for online food delivery
industry is $60.
Cost per Acquisition for Facebook Marketing:
For online food delivery industry the CPA is around $40
Paid Search - Average CAC for online food delivery industry is $80.

Customer acquisition cost for


Foodilicious(in Rupees)
Marketing expenditures 80000
PPC campaign 40000
Sales +marketing salary 120000
Affiliate program payouts 60000
  300000
   
New customer acquired 80
CAC 3750

MARKETING MIX (4 P’s)


Marketing Strategy of Foodilicious analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach, promotion
planning etc. These business strategies, based on Foodilicious marketing mix, help
the brand succeed in the market. Foodilicious marketing strategy helps the
brand/company to position itself competitively in the market and achieve its business
goals & objectives.

Foodilicious Product Strategy:

Foodilicious is an app / website which shows restaurants and food menu to its users.
Foodilicious provides the user with the restaurant details, their images, rates, menus
and even portal for customers’ feedback where people can voice their opinions
regarding the experience, taste at a particular restaurant. This application helps the
restaurants which do not have their own websites. It is a good way to make their
restaurant visible online without making a site for their own. The main services in its
marketing mix include Point of Sale systems, Restaurant Search and Delivery, Table
Reservations and management, White label Apps and online ordering services.
White label is the product or service produced by a company (main company), and it
is used by another company to rebrand it as if it is made them.
Foodilicious Pricing Strategy:

Foodilicious does not charge for restaurants to put their details on their application or
website. The restaurant advertising which Foodilicious does on their site or
application is the major source of their revenue. Restaurant advertising includes
banners ads for restaurants which gives them maximum visibility as soon as a
person logs into the app or the site. Event based advertising when restaurant hold an
event and use Foodilicious as a medium to advertise their event. There is a
commission set on the ticket sales through Foodilicious. They also provide
consulting services to restaurants to where should the restaurant chains open their
next outlet. Foodilicious uses various analytical tools to analyse where the demand
lies and help them with the solution. The percentage revenue distribution can be
summarized as under; restaurant advertising- 85%, event advertising- 5%, event
ticket sales- 15% of the revenue.

Foodilicious Place and Distribution Strategy:

Following are the distribution strategy in the Foodilicious marketing mix:

Foodilicious, an online service is available on Windows platform, Android and iOS


platform. It is available in almost every cities in India including the district
headquarters and the small cities. The UI is user friendly and has nine language
options like Hindi, English, Bengali, Tamil, Urdu, Marathi, Punjabi, Malayalam and
Oriya. Also we are active on various social platforms like Facebook, Twitter,
Pinterest and Instagram which are used to engage with customers.

Foodilicious Promotion and Advertising Strategy:

The promotional and advertising strategy in the Foodilicious marketing strategy is as


follows:

Foodilicious is known for its content marketing strategy. In content marketing they
aim to advertise extensively via images. These images require a glimpse, have an
impact on audience and offer pure entertainment. The content is always fresh with
old sayings, messages delivered in a unique way in line with the service of
Foodilicious. The social media is an important channel to market their services. Their
posts, messages are always some simple industry jargons that is targeted at
different audience segments. Along with posts and messages, Foodilicious has
collaborations with Paytm, Uber, Food Bloggers which display Foodilicious as an
option for any food related queries customers search on these applications.

VALUE PROPOSITION OF FOODILICIOUS

Foodilicious is immensely loved for the way it works. Foodilicious is premised on the
QAAA model, i.e., it promises and delivers Quality, Accessibility, Affordability, and
Assortment to its customers and partners. Following are the value propositions of
Foodilicious, which makes Foodilicious unique and admirable:

Improving food quality: Foodilicious is wholly dedicated to nurturing a neutral


platform. It consistently aids food establishments in maintaining high standards
through Hyper pure. Hyper pure is an innovative initiative by Foodilicious to bring
fresh, squeaky clean, and high-quality ingredients and kitchen supplies to its partner
restaurants. Food Hygiene rating is the most yearned for a symbol of quality well
known among its partner restaurants.

Boosting accessibility for customers: Foodilicious delivery is increasing since its


inception and expanding its reach to more and more cities. They are vigorously
growing their services. Now they offer table reservations, perform corporate catering,
and feeding India.

Ensuring affordability: The success of Foodilicious gold speaks volumes for


Foodilicious’s efficiency in providing an array of exciting choices. Foodilicious
continually strives and leaves no stone unturned in delivering the best. They ensure
affordability without compromising on their profits.

Aid in the assortment: Foodilicious believes in enabling its customers in unearthing


band new tastes and experiences transcending geographical borders. They present
the best information in the most legible manner for their customers and help them in
making an informed choice.

BUSINESS STRATEGY: MISSION AND VISION


Since its inception, Foodilicious's marketing strategy has been stellar. The food
delivery app focuses on creating content that is ideal for its audience, which includes
people between 18-35 years of age. Foodilicious focuses on leveraging the trends in
the market and uniquely connecting them to the brand.

Few significant business strategies of Foodilicious are:

 Customer centricity and relevance in content: When selecting multiple


channels for content distribution, it is important to understand what kind of
content works for each platform. An example of Foodilicious customer-centric
approach was seen during the beginning of the COVID-19 pandemic. When
the nationwide lockdown was enforced, Foodilicious understood the plight of
its customers and quickly expanded to not just food but even groceries. It had
introduced Foodilicious Market, a feature in the app that enabled grocery
deliveries across the country.

 Foodilicious is primarily a food ordering app that is slowly spreading its


offerings in multiple segments. Foodilicious mainly rakes in revenue using
advertisements from restaurants and brands that want to use its platform to
reach their target customers. In addition, Foodilicious generates revenue from
the commission that it charges restaurants.

MISSION:

“To provide quality food for more people at an affordable price”.

VISION:
“To promote online food delivery platform locally and globally so that any citizen of
any country could get food at any point of time”.

BUSINESS MODEL CANVAS


Broadly, we can say that there are three customer segments in Foodilicious’s
business model: 
1. Local restaurants: Foodilicious helps restaurants enhance visibility to their
target audience, provides opportunities for targeted advertisements, customer
service & engagement, as well as track their performance using its analytical
tools. 
2. Users: Can be divided into two categories for Foodilicious – one who want food
delivered to their homes quickly and others who want to go out (they can look
for places according to the distance, budget, cuisines and even reserve a table).
3. Reviewers: Also known as content contributors of Foodilicious, these are the
people who help others make their choice by providing ratings and reviewing
restaurants basis various parameters.
CUSTOMER PERSONA

WHAT IS CUSTOMER PERSONA?


Customer personas also known as buyer personas are semi-fictional, generalized
representation of your ideal customer – the customer that you hope to persuade to
visit or place an online order from your restaurant. A good customer persona will
help you understand who the guest is and why they do what they do.

Good personas are not just profiles. They give you a deeper understanding of your
customer’s mind set, preferences, motivations, interests, behaviours, and goals.
They also include demographic information like gender, age, and income, as well as
some more qualitative information like what they like about certain restaurants, and
what their priorities are when it comes to choosing a place to eat or drink.

Once I had the competitive research and feature analysis chart handy, I decided to
conduct some user interviews to better understand the needs and pain points of food
delivery service app users especially for Foodilicious. I interviewed a total of seven
participants between the ages of 22 and 26. Their professions ranged from retails
sales worker, student, teacher, administrative assistant, to graphic designer. All of the
participants have previous experience with using food delivery service apps.

Summary of findings from the user interviews:

 Three out of seven participants noted the importance of reviews as they help
them decide whether the food is worth the price.

 Five out of seven participants expressed the need to see reviews before trying
out a new restaurant.

 Five out of seven participants revealed that they have to use other resources
such as Yelp or Google to read reviews on restaurants.

 Six out of seven participants were motivated to use Foodilicious apps more
often during the pandemic
Here are some pain points that participants brought up during the interviews:

“I think that reassuring the customers that the restaurant staff and delivery drivers are
following safety guidelines would be nice.”

“I have to use Google because there aren’t detailed reviews on the app itself. So, I
tend to go on Google first and then the app.”

With the research conducted thus far and the insight provided by the participants, I
came up with a user persona that reflects the different needs and pain points that
were brought up earlier.

 Provide assurance to the customers that during the pandemic era we are
delivering the food by maintaining all the COVID protocols.
 Improve the review section of the application.
 A detailed review of the restaurant or food items needs to be introduced.
 Before adding a restaurant, it is important to do detailed research on the
restaurant and a detailed review needs to be added in the application or
website.

RELATIONSHIP BUILDING PROCESS


CRM stands for customer relationship management — this includes the type of service you
provide, the interactions you have, and the resources you share to match customer needs. A
CRM model is a framework for how your company will manage this customer relationship
from acquisition to retention. The better you understand potential and current customers,
solve their pain points, and build trust/rapport, the more likely they’ll stick around. It’s
important to note that a CRM model and a CRM tool are two different things. Yes, this can
be confusing, but a CRM tool is software that’s designed to store and manage your customer
data. Consider it a type of intelligent database that’s built around relationships. A CRM tool
can be used to support your CRM model.

IDIC MODEL OF FOODILICIOUS:


The IDIC CRM model is an excellent framework for discovering and using your
customers’ needs and values as the foundation for how you interact with every
customer. Developed by Peppers and Rogers in 2004, the IDIC model is made up of
four actions to strengthen personal relationships, from prospects to customers. With
the IDIC model, you gain important insights on what’s essential to your customer’s
happiness and what personalization’s you can offer to help achieve that.

Identifying individual customers: At Foodilicious, we put efforts to identify


individual customers, try to understand their preference, choices and buying
behaviour. Divide the customers into different segments depending on their
demographics, geography etc. Extensive research is done to identify the products
which are famous in which segment of society and in which part of the country.
Products are displayed in the application depending on this extensive research.

Differentiate customers: After identifying the individual needs of the customers, we


try to differentiate the customers from each segment and we try to promote our
product accordingly. Again, extensive analytical research is done on data to
differentiate customers based on professional background, culture and ethnicity.
Each segment of customer needs is different from other segment of customers, so it
is very important to differentiate customers and we at Foodilicious do this efficiently.

Interact with customers: Foodilicious knows how important it is to interact with the
customers on a regular basis. Armed with in-depth knowledge about our customer,
we try to interact with the customers on the individual level. For example, we know
that a particular customer likes to have pakoras, samosas on a rainy day, so we try
to communicate with them via mail and message on a rainy day and suggest them to
buy our hot stuffs on a discount. We also try to communicate with them by wishing
them on their birthdays, marriage anniversaries etc.

Customize for customers: We design and customize special offers and discounts
according to the important data we have. We design our offers accordingly. For
example, if a customer has birthday, we would float discount messages and mails
promoting different kind of cakes from different popular bakeries. Again, we could
personalise offers and discounts on different products if there is marriage
anniversary.
COMPETITOR MAPPING

From the competitor mapping, we could see that our competitor Zomato is lying in
the first quadrant, it has higher customer satisfaction rating as well as gives higher
offers and discounts compared to Swiggy and Foodilicious. Swiggy our another
competitor lies in the second quadrant whose customer satisfaction is less than
Zomato and is better than Foodilicious but gives less discount and offers than both
Zomato and Foodilicious. Foodilicious also lies in the second quadrant and provides
better offers and discounts than Swiggy but provides less discounts and offers than
Zomato. Foodilicious’s customer satisfaction rating is least when compared to
Zomato and Swiggy but we have made a significant improvement in both the
parameters considering we are new players as compared to Zomato and Swiggy.

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