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