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Chapter-One
Introduction
1.1 Introduction
In nowadays, our living environment has been changing day by day
because of technological advancements and trends of lifestyle, different
demands and wants appear, for the urban people, they seek a convenient
and quick lifestyle to cope with their busy work. Thus online food
delivery service is the one that fulfills the pace of life today. It tends to
become more important in our life.
Online food delivery, which is one the innovation e-Service, is the most
popular and frequently used nowadays. According to the statistics, the
number of users on online food delivery has over 1000 millions
worldwide in 2020. Under this trend, there are lots of different brands and
companies appear to operate this service. Amongst the huge online food
delivery market, Foodpanda is the most famous brand, recording the end
of 2020, it has operated this service in 14 markets, its majority service in
Asian markets. Foodpanda and its parent company gained EUR 1.238
billion total revenues in 2019 worldwide.
Thus, the purpose of this paper is to analyse the marketing strategy of the
Foodpanda, since the marketing is the front line to connect with the
consumer, that marketing strategy is the main element how the company
successfully attracts customers and gains high market share. Under the
marketing strategy used by Foodpanda, it gains better market share in
those markets, the numbers of users are still rising, therefore marketing
strategy is analysable to find what Foodpanda are utilising to achieve
market position. Since it has a larger market on online food delivery, to

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be more analysable, the thesis will focus on two markets, Hong Kong and
Singapore, the reason is these two markets are more similar, high density
and similar market sizes.
1.2 Background of the Report
To analyse the marketing strategy of Foodpanda, the following will
majorly divide into two parts, one is the theoretical part, another one is
the practical part. In the theoretical part, it connects to chapter one and
aims to take the explanation of the key terms of the marketing, which will
be associated with the further analysis, such as SWOT analysis, Porter’s
five force analysis, Marketing mix etc. In the practical part, it will
separate into three chapters and surrounding the target Foodpanda
analysis. Chapter two will analyse the current situation of the online food
delivery industry and Foodpanda, in this chapter will use SWOT analysis
and Porter’s five forces to analyse the Foodpanda business environment
and competitiveness. Chapter three will concerning the marketing
strategy through segmenting-targeting-positioning and marketing mix to
analyse what Foodpanda currently uses, it aims to find out the existing
methods of its strategy toward customers. Chapter four, the last chapter
will take the marketing research focus on online food delivery service,
through research to find out the opinions about this service from
consumers, also it will provide some recommendations for it.
.

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1.3 Objective of the Report
Without objectives, no case study can be the fruitful one. Before
preparing the report, I set up some objectives. The objective of my study
can be divided into two segments. These are given below:
Primary Objective
 To meet the requirements of the degree, BBA, term paper.
 Highlighting & analyzing the Marketing Mix Analysis of Food
Panda
Secondary Objective
 To gain knowledge about sales & marketing activities and to know
how the company implements it.
 To know how a marketer formulates marketing mix that forms the
basis of his marketing strategies and policies.
 To know the way a marketer takes decision regarding his product,
its price, its distribution and its promotion for ensuring optimal
adaptation with the marketing environment.
 To measure promotional effectiveness of Food Panda products.
 To mention the limitations and future actions of Matador.
 To suggest possible ways to provide better product.
 To introduce new products and make a new market segment.

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1.4 Scope of the Report
Marketing System of “Food Panda Industries” is the main scope of this
report. Marketing Mix & its Importance: The marketing mix is the set of
marketing tools the firm uses to pursue its marketing objectives in the
target market. According to Philip Kotler, “The marketing mix is the set
of controllable, tactical marketing tools that the firm blends to produce
the response it wants in the target market.”
1.5 Methodology of the Report
 Study Design:
The purpose of the study is to understand the decisions in formulating the
marketing system of Food Panda. This is a descriptive study.
 Primary Data:
In order to collect the primary data, following methods have been
followed:
- Key informant (Senior Officers of Matador)
- Unstructured Questions
- In-depth Interview.
- Face-to-face interview.
 Secondary Data:
The secondary date have been collected from –
- Previous reports.
- Web Sites
- Different Books.

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- Journals.
- Newspapers.
- Printing materials of Matador.
 Interview:
I have collected some additional information to conduct interview with
some senior officers of
Matador
 Telephone Interview:
Face-to face interview was not possible because of pandemic situation in
Bangladesh. Basically in-depth interview method has been used with an
unstructured questionnaire.
 Questionnaire:
Since I have used an unstructured questionnaire, I have asked the
respondents to tell about the decisions they made to properly blend the
marketing mix components. They have informed elaborately about their
marketing mix strategy.

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1.5 Limitation of this Report
Every favorable thing has an unfavorable shadow. I cannot say that my
report is absolutely accurate. It has some limitations which has no way to
overcome for the time being because some constraints
1. Lack of Information:
In marketing and sales employees are busy with their work. So I
get few time for interview and collecting information.
2. Communication Gap:
Because of pandemic situation in Bangladesh it was not possible to
take interview and communicate with respondents directly. When I
start to gather data I was facing some problem to communicate
with them. So many additional information is absent in this report.
3. Cost Limitation:
As a student, I could not bear the additional cost to give my report
an attractive outlook. Although the above limitations are present,
but I am grateful to submit this term paper.

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Chapter-Two
Theory of Marketing
2.1 Marketing
Marketing is one of the important and common departments in a
company, after development of the times there are different definitions of
marketing by institutions and influencing people. According to the
American Marketing Association (AMA) defines “Marketing is the
activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large”.1 Another important person in
Marketing, Philip Kolter, a father of marketing, said “Marketing is an
organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its
stakeholders.”(Kotler & Keller, 2012, p. 28)
Simply, the aim of marketing is through a series of actions such as certain
promotions, advertising or press releases etc, to attract and keep
communicating with its audiences in direct or indirect ways. Through
those actions to build stronger relationships between audiences and the
company.
Marketing is important because of several reasons. Firstly, marketing is a
communication channel between customers and company. Marketing
helps a company to keep in touch with its audiences, using different
methods to bring the news to audiences, it can maintain the effective
competitive position. Secondly, marketing can bring the company to the

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correct direction, through particular research of the market, the company
can understand its target consumers and market demand to apply various
strategies to achieve its goals. Furthermore, through marketing to
stimulate the sales, the company utilises marketing strategy to bring
higher sales from potential consumers and new consumers.
2.2 Situation Analysis
Before making a marketing strategy or plan, the company always needs to
understand the current situation for gaining higher market share and to
make the better marketing decision. Situation analysis aims to analyse the
business environment of the company there are some marketing tools to
help the company to analyse what are pros and cons of the company’s
situation. When taking analysis of the current situation, it can classify
several areas, analysing strength and weakness, environment, position,
and competitiveness. Usually to apply in situation analysis tools are
SWOT analysis, Porter’s Five Forces, BCG matrix, 5C’s etc, the
following will only apply to some of them. (Steenburgh et. al., 2010)3
SWOT analysis

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Self -prepared, Figure 1: SWOT analysis
Source: SWOT Analysis. Professional Academy. Retrieved October 22,
2020, from https://www.professionalacademy.com/blogs-and-
advice/marketing-theories---swot-analysi.
SWOT analysis is a marketing strategic tool, which is to evaluate
strengths, weaknesses, opportunities and threats of the company. It
identifies internal and external marketing environments. Internal
factors, which are concerning strengths and weaknesses, analyse
include human resource, brand names, location, financial resource,
research and development and service differentiation etc, it aims to
analyse the good and bad performance in a company. External factors,
which are concerning opportunities and threats, analyse include current
and future trends, economic, social, political, technologies and legislation
etc.
In addition, SWOT analysis can divide in positive and negative
influences of the company. This method helps the company to analyse
strategic perspective and understand pros and cons of the current
position in the market, maximum positive and minimum negative
influences, thus taking advantage of opportunities to catch the
strengths and preventing threats to get rid of weaknesses.4
The
following will describe the elements of SWOT individually.
(Steenburgh et. al., 2010)
Strengths: refer to an internal factor and positive influence in the
company. This area is analysing the special resources of the company

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which can take benefits for operations. Comparing competitors, the
company does relative well or exceeds them, these strengths are giving
advantages over the industry.
Weaknesses: is regarding an internal factor but negative influence of
the company environment. This element identifies the deficiencies of a
company which are the limitations and weaknesses of the company
compared to other competitors. The company should improve the
weaknesses for maintaining a competitive advantage.
Opportunities: is concerning an external factor and brings positive
influence in the business environment. Although a company can not
influence externalities of opportunities, however, this element is
analysing favorable factors and development for the company to gain
high profit and sales, and the company can take advantage of these.
Threats: is an external factor but negative influence. Threats collect
and analyse the unfavourable trends and development for the company
which threaten the profit and sale in the company. Even though the
company cannot change the externalities' negative impact, the company
can get rid of these threats when they understand it

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Porter’s five analysis
Self-prepared, Figure 2: Porter’s five analysis
Source: Porter’s Five Forces. Strategic Management Insight. Retrieved
October 22, 2020, from
https://strategicmanagementinsight.com/tools/porters-five
forces.html
The analysis helps to understand the competitiveness of the company
environment. It is a tool to analyse industry structure. The analysis
measures the competition strength and profitability in the market. The
five forces are formed by 1)industry rivalry, 2)threat of entry,
3)bargaining power of buyers, 4)threat of substitutes and
5)bargaining power of suppliers, each of them have specific functions
for analysing the company situation. If marketers want the better
position and greater influence’s power of a company, they should learn
from the industry environment change.5 The following will explain
each element directly. (Steenburgh et. al., 2010)

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Industry rivalry: the force analysing the competitiveness of the
industry. It analyses the number of competitors. When the number of
competitors rises, the company’s power will be weakened as larger
similar goods and services are provided in the same market. Also,
during the competition, more competitors means the company needs to
spend more capital on competing in industry.
Threat of entry: analysing potential and existing competitors. The
competitors will increase rapidly if this type of industry is
easy to make profit and less barriers to set up. When facing
the increasing number of new competitors, it always makes
profit loss as the market
share decreases at the same time. For favorable industry it should set
high entry barriers, such as high entry cost or require specific skill.
Threat of substitutes: is threatened because customers can easily find
substitutes goods and services which can replace the company’s
products, that increasing substitutes trends may decrease the market
pricing. If there are perfect substitutes in the consumer market,
consumers always choose the one which compares at a lower price.
These substitutes products will weaken the company's power and market
share.
Bargaining power of buyers: means customers who can influence the
price setting and market price, usually a company can set the price by

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its own, higher prices of the product can achieve higher revenues.
However, buyers sometimes have greater power over the company if
they have ability to produce the products on their own. That company
will weaken the ability to make price flexibility.
Bargaining power of suppliers: refers to the suppliers driving the market
inputs. Suppliers have power to influence the price and quality of goods
and services, they may increase the price or decrease the quality when
there are less suppliers in this industry. It means the company is more
dependent on these suppliers, the power of suppliers will be raised, it
will weaken the negotiating ability of the company to suppliers.
2.3 Marketing Strategy
A marketing strategy is the decision in the long term direction of the
company. Marketing strategy is aimed to use a plan which according to
the current situation of the internal and external environment of the
company to achieve its goal (Drummond, Ensor & Ashford, 2008, p.
12).6 A company though analysing the business environments finds out
its strengths and weaknesses, thus understanding and then making
adjustments on those findings. The company can utilise some
strategies to clearly its direction, for example segmenting-targeting-
positioning which helps the company to filter unclear target,
marketing mix which can help company pursue its target and goal. The
right marketing strategy can bring lots of benefits to the company,
like increasing the sales, building customers awareness, understanding
customers etc.
.

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Segmenting-targeting-positioning
Segmenting-targeting-positioning(STP) is the strategy approach in
marketing for identifying the needs of potential customers. Even though
there are lots of products in the world however each of us has different
demands and interests toward the products, not all products can be
successful to fulfil all customers, thus the company should focus on
market segmentation and select the most potential market. There are
three steps to utilise this strategy. Firstly, the company should according
to different characteris of the consumer to divide the market into
segments. and identifies the groups by the geographic, demographic and
consumer behaviors, to search the most potential market. Secondly, to
decide the targeting group, which is according to the segment result to be
chosen. Thirdly, to understand the perception of customers, positioning
the product in consumers' mind and using the marketing mix as a
cooperation tool.
Self-prepare, Figure 3: Segmenting-targeting-positioning
Source: Dibb, S. and Simkin, L. (1991), "TARGETING,
SEGMENTS AND POSITIONING",
InternationalJournalof Retail & Distribution Management, Vol. 19
No. 3.

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Segmenting
Market segmentation is a process to divide the customers who have the
same or similar characteris and interests into different groups. These
groups of customers are sharing similar needs and wants. Due to huge
differences between consumers, the company can focus on some
particular groups of consumers. Consumer Segmentation can search by
four criteria, geographic, demographic, psychographic and behavioral.
(Kotler and Keller, 2012.
Geographic : geographic segmentation is dividing customers by
considering the variable in countries, nations, cities, areas etc
these geographical units, it also can group customers by population
density, climate and location. Because different locations may
affect the market demand. For example, the seasons in European
countries are obvious, however, in Southern Asia the season
always stays in summer. The geographic variable may reflect the
cultural difference between markets.
Demographic : the variable of dividing customers into different
segment groups are gender, age, income, education level,
occupation, marital status, size of household, nationality, religions
etc. These variables are usually close concerning the needs and
wants of customers, and the most easily to manage for the
research.

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Psychographic : it is dividing the group by personal lifestyles or
valus. These groups may be affected by variables with an
individual's opinion, interest, attitudes, lifestyles, even in the same
group they can present different psychographic factors. The VALS
framework is the most popular measurement for classifying the
psychographic, it represents values and lifestyles. The company
can based on this framework to classify the potential customers.
Behavioral : the variables of behavioral segmentation are
benefits sought, usage and purchase occasion. The benefit sought
is to analyse the underlying reason of why customers buy the
goods and services, as these goods and services can bring benefits
for customers. Usage is according to the pattern of customers, it
can classify customers in four categories of heavy users, medium
users, occasional users and non-users. Purchase occasion is
analysed according to the different types of occasion to
purchase products, such as gifts and celebrations. (Drummond,
Ensor & Ashford, 2008, p. 66-70)
2)Targeting
After the certain series of segmentation is done, the following step
is focused on the target market, which is direct action. According
to the statistics of segmenting done, there are two steps for the
company to target its consumers, one is evaluating the market
segment, another one is selecting the target market. For evaluating

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the market segments, two factors should be considered, overall
attractiveness of segment and resource of the company
Considering the company’s ability and resources, whether it can
maintain the development in the long run. (Kotler & Keller, 2012, p.
232)
In selecting the target market, choosing correct target strategies can take
the company into the market with more success, there are three
approaches : undifferentiated, differentiated, concentrated marketing.(
Hooley et. al., 2017, p. 231-233)8
Undifferentiated marketing : means focusing on the whole market more
than some specific segments, whatever the customers are different age,
race, gender or other differences, the product will still cover all
segment groups and meet all customers' requirements at the sametime.
However, this approach is not easy to take, because customers have
different needs and wants, one product is not fulfilled to all of them.
Differentiated marketing : is against the different segments to provide
relative products. Therefore, the company should better do the
segmentation of customers and understand their needs and wants to
provide corresponding products. However, this way requires a higher
cost than an undifferentiated approach.

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Concentrated marketing : is only focused on one or few segments due to
limited resources of the company. If a company chooses the right
segments, it will bring some benefits for the company, such as a high
rate of return. However, it is high risk if the company chooses the wrong
segments.
To choose the right approach, the company can consider some factors,
such as company’s resources, degree of product variability, product life
cycle, market variability and competitors’ marketing strategies. These
factors may affect the market.
3)Positioning
The final step in STP is positioning after selecting the target markets
from segmentation of the market. For the positioning, it is the way to
combine the company’s capital and ability to produce unique products,
which can make customers aware and attract their interest to allocate a
particular position in their mind or choice. Customers will receive
abundant information concerning products, and identify a series
perception by attribute to build specific positions for the product in
their mind. (Drummond, Ensor & Ashford, 2008, p. 206)
The company can use different methods to achieve a successful
position, for example perceptual mapping can analyse and compare the
perception position of the current competitor and own company in the
customer’s mind. Moreover, brand identity can help the company to
build brand awareness, it can send the core values to consumers to
consolidate specific positions in their mind

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Marketing mix
The marketing mix is a business strategy tool to analyse and build the
right direction of marketing decisions, it is formed by four elements,
1)product, 2)price, 3)place and 4)promotion, it is the most traditional
marketing mix named 4P’s. However, in the service marketing mix,
there are three more P’s elements, people, process and physical
evidence(Hoffman, 2011, p. 79)10. This three additional P’s and
adding with traditional marketing mix, it formed 7P’s of service
marketing mix
Self-prepared: Figure 4: Marketing Mix for Service
Source: Marketing Mix for Services. Marketing-Insider. Retrieved October 22, 2020, from
https://marketing-insider.eu/marketing-mix-for-services/
1)Product
Product refers to not only physical goods also services, it can include
experiences, events, persons, places, information, ideas (Kolter and
Keller, 2012). For the company, the product means the soul of the
company, it can be one or more than one product, it is the primary
element to attract consumers' choice. According Wolak et.al., (1998)

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classified the characteristics of service in to four group11: intangibility,
inseparability, heterogeneity and perishability. Thus, to attract more
customers and increase the sale, the company utilises different
strategies on products, such as branding, quality of the product,
packaging, warranties etc.
Branding is the symbol of the company, also the image of the
company, when customers see the brand they can think of information
regarding the brand or company. It is indirect release company
information to customers and build high customer awareness. Better
branding position can achieve higher profit and gain greater results.
Quality of the product, customers mostly pay attention to the quality
in the service industry, thus customer service plays an important role,
it is the channel to build the positive and inseparable relationship
between customers and company, through customer service to increase
the customers satisfaction.
Warranties are provided as the guarantee to customers, customers
can return and ask compensation when the product is damaged before
used or some mistake of the product. It can let the company respond to
the obligation and also can reassure customers to buy the products.
2)Price
Price is the most important component in marketing mix, it is a key
element not only to help the company make profit, also to gain market
share. “Price has operated as a major determinant of buyer

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choice”(Kolter & Keller, 2012, p. 384), that price is the most
important factor when customers are choosing the same product.
Moreover, pricing is the most flexible element in Marketing Mix, the
company can adjust the price depending on the location, season, and
other factors.
However, setting the price is one of the complex decisions, higher
price will out of the consumers' decision, lower prices will lose the
profits, to set the right pricing position is necessary. As a result, the
company should use pricing strategies to achieve its goals, the
company focuses on customers and also competitors to set a right
price in the customer market. The following will explain some strategy
regarding price.
Competitive pricing is a company setting up a price which compares to
their competitors, usually there are three options for this strategy,
lower than competitors, same price level with competitors or higher
than them, the company should choose the best option which fulfills
their purpose.12
Bundle pricing is when the company tries to group products together
and provide a lower price, compared to individual items, for selling to
customers. That is optional to choose by customers, for example in
restaurants, usually a set of meals is cheaper than the single items
added together

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Optional pricing is the company setting a lower price with the base
product, but setting a higher price with optional products to maximise
the turnover.14 For instance, in fast food restaurants, you can just buy a
burger, but you also have the option to pay more to get extra cheeses or
beef.
Penetration pricing means the company uses a lower price to launch a
new product into the market aimed to attract more customers and to
increase the sale and market share. It will adjust the price back to the
normal level when the market share is occupied.15 Example in this
strategy, a new customer of Apple music is free to use three months, it
will charge monthly payment after three months of use.
Psychological pricing refers to the company considers the
psychology of price which means the customer buys the product
based on their emotion rather than their rational mind. For example,
setting the price at $9 per bottle of water is more attractive than $10
per bottle.16
3)Place
In marketing mix, place not only means the location of the product
operation, it also means to distribute the product to other places,
customers how and where to get the product. A company can use
direct and indirect ways to distribute its product, and it usually through
different channels to sell products, such as retail and wholesale, also e-
commerce which is the new type distribution in this century. The

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company can according its product and goal to choose the right place
strategy to increase the sell amount.17
Direct distribution is the company used to sell its product directly to
customers without intermediary. The benefits of this method is that the
company can directly connect with its customers and clearly understand
customers behavior by their experience
The Internet, one of the distribution channels, is frequently used
nowadays because it provides lots of benefits to the company, for
example, no renting cost in physical stores, high efficiency of selling
and no time limit of store opening hours. There are some types of
internet distribution, website and social media are mostly used currently,
lots of companies tend to develop business via internet platforms.
4)Promotion
The final basic marketing mix element, promotion, is sometimes also
referred to as communication. A company uses direct and indirect
methods to connect with customers, and release the update information
to them such as new promotion or new service, it can remind
customers also build the positive relationship between customers and
company, thus increasing customer loyalty.(Kotler & Keller, 2012, p.
476)
The purpose of promotion mix is increasing sales, gaining market
share, creating brand recognition and gaining competitive advantage.18
To make the product more popular in the market, the company usually

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uses promotion strategies to promote its products, the following are
some channels that are commonly used for promotion.
Advertising is the traditional promotion channel, a company major
uses paid methods such as televisions, newspaper, radio to increase the
exposure rate of its product to attract more potential customers, it can
increase the visibility of the product and build customers' awareness .
Direct mail through directly connects to customers via email and post
address, a company will according to the address which is provided by
customers to send update information about the company, such as
promotion code, new product launching. This method can keep in
touch with customers and attracts higher customer loyalty.
Public relation thought press, blog, talk to promote the company or the
product, it is the way to build up a positive image of the company, also
can minimise the negative impac
for the company. Compared to advertising, it is more effective,
because the cost is relatively lower and it also publishes by third
person, it is more persuasive than paid advertising.
Sales promotion for example discounts and coupons which are
provided by a company, the company uses such methods to attract
more customers, especially new customers, who think they can pay less
on the product. It can stimulate more spending from customers, but it
only benefits in the short period.

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Social media is one of the popular and relatively lower costmethods to
promote products nowadays, through Instagram, Facebook, YouTube
etc those social media to release the news of the product, such as new
promotions or new services.
2.4 Market Research
Marketing research is aimed to focus on target groups to find out more
about customers or consumers, such as their behaviours, atitudes or
feedback. Through marketing research, a company can know and
understand more about its customers and do better on it, and make the
marketing plan for the company. Marketing research usually uses
some methods to contact customers and evaluates the preference of
customers and market trends, the research can divide two types,
quantity and quality. Quantity research is a major focus on the number
of responses, more responses is better, whereas quality research
focuses on deeper research on some target.Moreover, to do marketing
research, it is usually through online, telephone, face to face interviews
toward customers, it depends on the goal of the research. (Kotler &
Keller, 2012, p. 97)

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Chapter-Three
Current Situation Food Panda
3.1 Online Food Delivery Industry
Online food delivery, is one of the innovative services, is a type of
eService. This service is becoming more and more popular in recent
years. The first online food delivery service was 1994 which was used
by Pizza Hut in the United State,22 consumers could order their foods
via a restaurant’s website. Until nowadays, this service has already been
widely used in daily life because of lifestyle changes and
technological advancements etc, consumers can order their foods or
meals via not only websites also mobile APPs platforms, those food
delivery apps provide more choice for consumers and bring
convenience.
To look at the delivery types, there are two models of food delivery
service. One is “Restaurants-to-Consumer delivery”, another one is
“Platform-to-Consumer delivery”.23 Even though they are the same
purpose of service, they still have a bit of a difference in procedure.
For the Restaurant-to-Consumer delivery, the food delivery is based
on the restaurant own, it means consumers can order their meals
directly from the restaurants' website or mobile APP or the platform
which is joined by the restaurant, but the delivery service is provided
by that restaurant. It is also a method which was the first used in 1994
by Pizza Hut. Another food delivery service is Platform-to-Consumer
delivery, it is the platform which operates by third parties and works

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with a lot of restaurants to provide a place for consumers to order their
meals. It means consumers may use a website or mobile APP to find
their interested foods or restaurants and order their meals via this
platform. After they finish their order, the delivery guys hired by the
platform company will go to the restaurant to pick up the foods and
deliver them to the consumers.
For the Platform-to-Consumer delivery, McKinsey(2016) pointed out
there are two tier types of online food delivery, “aggregators'' and “new
delivery”. “Aggregators” means the platform only receives the order
which is made by consumers and sends it to the restaurants, but
delivery service is provided by that restaurant. “New delivery” is the
delivery service provided by the platform
Process of online food ordering
The procedure of online food delivery platforms is running by several steps, it shown
in the below.
Figure 5: Process of online food delivery
service
Source: Foodpanda About Us. Retrieved November 18,
2020, from https://www.foodpanda.com/about/

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Firstly, consumers use the online food delivery apps or websites to
position their current location, after that, the apps and website will show
the nearby restaurants which are able to provide ordering for consumers.
Secondly, consumers can choose their foods and meals and add them
into the basket, then to complete their address and to do the payment.
The order will be sent to the selected restaurant and prepared. Thirdly,
the delivery guys who operate by apps company will pick up the order
and deliver the meal to the consumer according to the address which is
typed by the consumer.
Reasons of the trends and demanding
Nowadays, online food delivery service is highly expanding because of
several reasons, the demand of this service has been increasing more
and more. In 2020, the revenues of online food delivery already reach
over 136 billions USD and the users are over 1.2 billions in
worldwide.25 The reasons increasing the demand of online food
delivery are two main changes, changing lifestyle and technology
advance.
First of all, the lifestyle changes. Online food delivery is providing
convenience for users who are busy or unwilling to cook, they can
easily get a meal via an ordering platform without spending extra
time to prepare their meals, it is time saving and attracts more
consumers to use food delivery apps.

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Global market size and trend
The market of online food delivery service is rising, the
demand for it is increasing year by year, especially the
“Platform-to-Consumer delivery”.
Self-prepared, Figure 6: Revenue and User forecast for the
Online Food Delivery Source: Online Food Delivery -
worldwide. (n.d.). Statista. Retrieved November 20, 2020,
from https://www.statista.com/outlook/374/100/online-food-
delivery/worldwide
In Figure 6 showed the two data about online food delivery in
“Restaurant-to-Consumer” and “Platform-to-Consumer”. These data
are collected in mid of 2020 and estimate the forecast from 2021 to
2024. The first data showed the revenue of online food delivery. The
revenue of Platform-to-Consumer delivery was increased from 2017
to 2020, even the revenue was lower than Restaurant-to-Consumer in
2017 and 2018, but in 2019 there were dramatic changes, the revenue

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of Platform-to-Consumer was exceeded Restaurant-to-Consumer. The
estimation from 2021 to 2024, the revenue of Platform-to-Consumer
is much more higher than Restaurant-to-Consumer delivery, it will
reach 100 000 millions in 2024.
Market trends in select markets
The market size and trend of the online food delivery industry in
Hong Kong and Singapore, the data showed the past experience on it
and estimated the trends in the following four years.
Self-prepared, Figure 7: Online food delivery in Hong Kong and
Singapore Source: Online Food Delivery - worldwide. (n.d.). Statista.
Retrieved November 20, 2020,
from https://www.statista.com/outlook/374/100/online-food-
delivery/worldwide
According to figure 7, the data showed the revenues and users in the
total online food delivery market trend in Hong Kong and Singapore,
the trends are upward increasing in both markets. The data is
accounted for by “Restaurants-to-Consumer” and “Platform-to-

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Consumer” delivery modes together. The revenues of the market had
gained 500 millions USD in 2017 in Hong Kong, until 2020 the
revenues can reach to 750 millions USD. The estimation of the
following years will raise more. Moreover, the users of online food
delivery service raised from 2.5 millions in 2017 to 3.5 millions in 2020,
it had increased 1 million users during these three years. In the
Singapore market, the revenues of online food delivery was relatively
lower, only 210 millions in 2017, but its rapidly increasing currently.
The number of users in Singapore almost reached three times in 2020
compared to 2017. Moreover, in the estimation between 2021 and
2024, the Singapore market will expand, it will reach higher revenues
and more users, it has a big space for growth
3.2 Foodpanda and its percent company
Foodpanda is one of the popular online food delivery service platforms,
which is acquired by German’s company Delivery Hero SE, its
headquarter is based on its parent company located in Berlin. Only in
Foodpanda, it had operated business in 14 countries, majoring in Asia
and Eastern Europe.
Initially, Foodpanda was established by Rocket Internet SE company
in 2012 by Lukas Nagel and Rico Wyder, the company is the European
Internet company.26 However, the end of 2016, Rocket Internet had sold
Foodpanda to its competitor Delivery Hero, which is an online food
ordering company. Delivery Hero, founded in 2011

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Developments of Foodpanda
After the acquisition done by Delivery Hero in the end of 2016, Foodpanda was
rebranded by the new parent company, it used a new appearance to continue
business, it rebranded the logo, the logo of Foodpanda had been changed from
orange to pink.
Figure 8: Rebrand of Foodpanda
Source: Foodpanda delivers neon pink rebrand. Retrieved December 5, 2020, from
https://www.transformmagazine.net/articles/2018/foodpanda-delivers-neon-pink-
rebrand/
Beginning with the operation of Foodpanda, it majorly ran in Southern Asia,
the first launched market was in Singapore in May 2012 and it launched service
into other 15 countries in the end of the same year.

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Chapter-Four
Marketing Strategy of Food Panda
4.1 Segmenting Targeting Positioning
Segmenting
During the segmenting, it can divide into four segmentations,
geographic, demographic, psychographic and behavioral segmentation.
The below is to discuss the characteristics of segmentation in the
existing market of Foodpanda.
In the geographic segmentation, Foodpanda majorly services in big
cities and urban areas in the existing market. Because of high
populations in those markets, it increases the demand of food
delivery, and it can gain more users and expand its market. Take
examples from Hong Kong and Singapore, these two markets both
have high living density and high income, thus consumers are willing
to pay extra fees to exchange convenience and to increase the
opportunities to order food delivery. Moreover, the areas are more
centralized and crowded both in Hong Kong and Singapore, it shorter
the delivery time and distance, and increases flexibility of the delivery
process.
Targeting
Foodpanda is working with various kinds of restaurants and groceries
stores, such as fast food, Japanese, Korean, Indian, Mexican
restaurants, as well as local dish restaurants. It can attract different

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groups of consumers with different characteristics. Thus, Foodpanda
has a wide audience around in its markets, the audiences are varied
characteristics, there is no specific one group only to be targeted,
because the consumers can come from different groups.
Thus, the undifferentiated marketing is currently Foodpanda used, even
the main target of Foodpanda is focusing on the young generation,
however, the online food delivery service is providing benefits to all
consumers whatever their ages, gender, nationality, education,
occupation etc. All audiences might have opportunities to order food
via Foodpanda platform when they are busy and hungry. However the
bigger target source is still from young people because of lifestyle
trends, also the employees during the working hours. Foodpanda
currently targets some companies which are busy and catching time,
even the lunch hour, so that the employees can order food delivery
during the lunch break and enjoy the meals in the office with their
colleagues.
Positioning
For consumers who are looking for a fast and convenient lifestyle,
Foodpanda is a platform that brings consumers and suppliers together.
The mission of Foodpanda is “bringing good food into you
everyday”.36 Its purpose is providing a great experience and quality
of lifestyle for consumers. Foodpanda positioned itself in the food
delivery industry as fast delivery and wide choice.

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Under the fiercer competition, Foodpanda utilises quick-commerce
strategy to shorten the time compared to e-commerce, since the normal
or traditional e-commerce usually spends at least a day for delivery.37
During the quick-commerce process, it only takes a short time from order
to delivery, usually around to half an hour. However, Foodpanda only
spends 25 minutes on average to deliver the orders. It meets a new trend
of social behavior. Foodpanda keeps improving the delivery time, it
only spends 18 minutes on average on the delivery process in Taiwan
currently.
4.2 Marketing Mix
Using the marketing mix to identify what strategies are Foodpanda
utilising to expand market share and to attract more consumers.
According to the service marketing mix, there are seven elements,
which are product, price, place, promotion, people, process and
physical evidence. The following is analysing each element
individually what Foodpanda is utilising.
Product
The core product of Foodpanda is a delivery service instead of a
physical product. Initially it only runs for restaurant delivery service,
however, it has launched other categories in recent years, it provides
other delivery service except restaurants, also providing the groceries
delivery. As launched new service, it shapes different lines of service for
example restaurants, Pandamark, foodpanda mall etc. It expands types
of products from restaurants to groceries.

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The branding strategy, the branding name “Foodpanda” as a synonym
for food delivery in customers’ mind, within the brand logo panda with
pink colour, it really catches audience attention. For the new service
line or product, Foodpanda uses a particular name to these new lines of
service, such as “Pandamark”, it is a category launched since 2019,
this category is regarding the groceries items, and “PandaPro” a
monthly plan which is implementing in Singapore recently40
. Given a
particular name in different lines is more attractive and can make the
business and marketing more efficient, because consumers are easy to
classify what they are looking for.
Price
During the pricing marketing mix, Foodpanda considers not only the
price of items, but also delivery fee. Foodpanda is implementing
different strategies, such as competitive, budle and optional pricing
etc. Those pricing strategies are increasing sales and attracting more
consumers. There are some strategies which Foodpanda is utilising.
Firstly, Foodpanda is using competitive pricing. Due to several
reasons, one is the technology development, consumers can easily
compare the price between the platforms immediately, on the other
hand Foodpanda always sets the price around to the competitors, it
creates competitiveness between it and competitors. Another reason
is there are larger competition in this industry, high price will be out
of the choice of consumers, low price will weaken price margin, thus
using competitive pricing to ensure its competitiveness in the market.

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Place
Foodpanda is operating in 14 markets, which majorly Asia and Eastern
Europe, in the end of 2020, the markets are still expanding in the
areas. It increases the influences in new markets. For example,
Foodpanda launched service to Japan in September 2020, it only
services in six cities in Japan initially, however, until the end of February
2021, it expanded to fourteen cities, such as Osaka and Kyoto.41 As a
customer service sector, Foodpanda typically chooses its target places
in big cities with high population and living density. In Hong Kong and
Singapore service of Foodpanda has covered all districts.
During the place strategy, Foodpanda is majorly operating in cities
which have large populations, and using two channels for place
strategies, internet and direct. In place of the internet, Foodpanda is an
online ordering, e-channel is the most accessible way for consumers
to use and order. It is typically for consumers to order what they
want via internet channel by website or mobile app.
Promotion
During the promotion marketing mix, Foodpanda utilises lots of
strategies to build customer awareness, consumers and customers can
easily gain new messages via those channels. Foodpanda is using
multiple channels for promotions. It can divide in the above-the-line,
through-the-line and below-the-line strategy.

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Chapter-Five
Recommendation and Conclusion
5.1 Recommendation
Foodpanda has already done lots of strategies through marketing mix,
it keeps to do innovation for catering the trends. Although
Foodpanda does lots of success strategies, however there are still some
recommendations for Foodpanda, the following will be based on
marketing mix to provide several advice.
First of all, for the product marketing mix. The main image of
Foodpanda is delivery foods and groceries items only, that it could
operate some new service line, for example to develop its own
kitchen such as ghost kitchen to fit local users. Due to its competitors
having already set up a central kitchen in Singapore, Foodpanda can
consider to build its own kitchen increasing its competitiveness.
Furthermore, Foodpanda should launch monthly plans as soon as
possible, this plan means the consumer pays delivery fee per month
instead of a one-time delivery fee, since delivery service is increasing
day by day, the demand still raising that Foodpanda should catch this
trend. Regarding the research, some respondents use food delivery
service very frequently, providing monthly plans can catch some
existing consumers and increase the consumer royalty. Monthly plan in
Singapore has already been implemented.

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5.2 Conclusion
Although Foodpanda is becoming the leading food delivery
application in Asian market, the delivery industry market is pretty
competitive. Through the analysis on the trend of online food delivery,
the demand keeps rising. Foodpanda has gained superiority from the
internal and external environments, it achieves higher market share in
existing markets. Furthermore, the analysis found there are various
strategies that Foodpanda did behind and to gain success in the markets.
It chooses the right target markets which have high demand for the food
delivery service, and it catches the trend of convenience lifestyle as
well. Through marketing mix strategy, including product, price, place,
promotion, people, process and physical evidence, to build a successful
branding in the food delivery industry. Through the marketing research,
the main finding is that Foodpanda has huge corporation partners which
provide wide choice to consumers, most of consumers based on this
point to pick up Foodpanda not other applications, it is the main
reason why Foodpanda can attract more users to use its application. In
addition, it provides different service lines to meet market needs.
Ustilsing promotional pricing to attract existing and new consumers to
stimulate the usages. It does various types of promotion both in online
and offline channels to attract public audiences and potential users.

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