Marketing Mix of Foodpanda and 7Ps (Updated 2024)

The Marketing mix of Foodpanda analyses the 7Ps of Foodpanda, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Foodpanda. Foodpanda is a private company associated with the food and beverage industry. It is a mobile food delivery platform ordered via online applications. Foodpanda is a B2C, business-to-customer organization. It was founded in Singapore in 2012 and includes multi-brands for its operations, like in Russia through Delivery Club, in UAE through 24h, and in the Middle East through Hellofood.  Some of its competitors are as follows-

• Grubhub
• Swiggy
• Zomato
• Delivery Hero
• Delivery Chef

About Foodpanda

• Type: Online food delivery platform
• Industry: Food and beverage
• Founded: March 2012
• Founders: Rohit Chadda, Ben Bauer
• Headquarters: Berlin, Germany
• Area served: Over 40 countries across five continents
• Key people: Jakob Angele, CEO
• Number of employees: Over 10,000

Foodpanda Product Strategy

Foodpanda ensures a healthy, tasty, and unique experience of eating without the hassle of traveling or prior planning. It is all about ordering through a mobile application and online as it connects customers to the restaurant of their choice.

The brand sends the ordered food directly to nearby restaurants, which later deliver to customers. Ordering food is a simple method. A customer has to enter postcodes on-site and then browse for food items from the list of available restaurants. Items can be easily selected while browsing through the menu.

When placing an order, entering an address and checking out is necessary. Foodpanda confirms the order and estimated delivery time by sending an SMS. Restaurants are told of orders, and they later deliver to customers. Choosing, ordering, and paying are done through online applications. The company has a review section on restaurant pages where a consumer can comment on several features like delivery, sales process, overall impression, and taste.

The product mix of Foodpanda in 2024 is as follows (Source).

1. Food Delivery: Foodpanda’s core service delivers food from local restaurants to customers’ doorsteps. Users could browse menus, place orders, and track deliveries through the platform.
2. Restaurant Partnerships: Foodpanda partnered with a vast network of local restaurants, ranging from fast-food chains to upscale eateries, to provide customers with diverse cuisines and dining options.
3. Cuisine Variety: Foodpanda offers various cuisines, including Indian, Chinese, Italian, Mexican, and more, ensuring customers can access a diverse selection of food choices.
4. Online Ordering: Customers could place orders for food through the Foodpanda website or mobile app, providing a convenient and user-friendly way to satisfy their culinary cravings.
5. Foodpanda Plus: Some regions had a subscription service called Foodpanda Plus, offering benefits like free delivery, exclusive discounts, and faster service for a monthly fee.
6. Grocery Delivery: In response to changing market demands, some food delivery platforms, including Foodpanda, expanded their services to include grocery delivery, allowing customers to order essential groceries and household items.
7. Foodpanda for Business: Foodpanda introduced services targeting corporate clients, allowing businesses to order food for meetings, events, or employee meals.
8. Promotions and Discounts: Foodpanda frequently ran promotional campaigns, offering discounts, cashback, and special deals to attract and retain customers.

Foodpanda Pricing Strategy

Foodpanda has become a huge online portal, which has been possible because of several pricing policies undertaken by the brand. It has adopted a value-added pricing policy as it offers quality items to its customers for a reasonable price.

It faces competition from several brands and has adopted a competitive pricing policy to maintain reasonable item prices. Customers are offered several incentives like discounts and special offers to lure them away from rival brands. Its marketing strategy also makes its services more affordable, resulting in more orders and better revenues for Foodpanda.

Foodpanda’s pricing strategy is designed to balance competitive pricing, delivery fee value-added services, and profitability in the dynamic food delivery market:

1. Competitive Menu Pricing: Foodpanda collaborates closely with its restaurant partners to offer competitive menu prices that align with or mirror the prices customers would find if they dined at these establishments. This strategy ensures that customers perceive Foodpanda as an affordable option.
2. Delivery Fees and Minimum Orders: Foodpanda may charge delivery fees and set minimum order requirements, which can vary based on location and restaurant. These fees help cover operational costs associated with delivery while encouraging larger order sizes.
3. Promotions and Discounts: To attract and retain customers, Foodpanda frequently runs promotions, discounts, and cashback offers. These strategic incentives drive sales, create excitement, and encourage repeat orders.
4. Subscription Services: Foodpanda may introduce subscription-based services, such as loyalty programs or premium memberships, offering benefits like free delivery, priority service, and exclusive discounts. These subscriptions enhance customer retention and lifetime value.
5. Dynamic Pricing: Foodpanda employs dynamic pricing algorithms that consider factors like demand, delivery distance, and restaurant popularity. This real-time pricing optimization allows flexible pricing adjustments and maximizes revenue during peak hours.
6. Transparent Pricing: Foodpanda maintains transparency in pricing by providing clear breakdowns of menu prices, delivery fees, and taxes. This fosters trust and ensures customers understand the total cost of their orders.

Foodpanda Place Strategy

Foodpanda is an international company that allows placing food orders from local restaurants through websites and mobile applications. Its network is spread worldwide in nearly forty-three countries, with a headquarters in Berlin, Germany. Foodpanda has ties-ups with various restaurants and deals with an estimated forty thousand restaurants in the global market.

It started global operations from Singapore and, by the beginning of 2016, was operating in Latin America, Eastern Europe, Russia, Africa, and Asian countries like India, Bangladesh, Thailand, Singapore, Malaysia, and Pakistan. Foodpanda is one of India’s most popular online sites for placing food orders.

It has delivery points in nearly four thousand restaurants in forty cities, including Hyderabad, Mumbai, Bangalore, Chandigarh, Pune, and Delhi. Its distribution network includes over two thousand partners like Mast Kalandar, Baskin Robbins, Nirula’s, Subway, and Pizza Hut. It has trained employees to own new restaurants and meet customer demands successfully.

Foodpanda’s place strategy is centered around providing a seamless and convenient food delivery experience to customers while building a solid network of restaurant delivery partners:

1. Extensive Geographic Reach: Foodpanda strategically expands its operations to cover a wide geographic area, ensuring that customers in urban and suburban regions can access their food delivery services.
2. Restaurant Partnerships: Foodpanda collaborates with a diverse range of local restaurants, cafes, and eateries, establishing a comprehensive network of dining options for customers.
3. Online and Mobile Platforms: Customers can access Foodpanda’s services through their user-friendly website and mobile app, allowing for easy ordering and tracking of food deliveries from the comfort of their homes or on the go.
4. Logistics and Delivery Infrastructure: Foodpanda invests in efficient logistics and delivery operations, including its fleet of delivery riders, to ensure timely and reliable order fulfillment while maintaining quality and safety standards.
5. Customer Support and Feedback: Foodpanda provides customer support channels to address inquiries and concerns promptly. They seek customer feedback to improve their services and enhance the food delivery experience.

Foodpanda Promotion Strategy

Digital marketing has played a massive role in creating brand awareness for Foodpanda. The company believes in offering its users something new and inventive periodically in terms of food festivals, offers, and incentives to maintain the loyalty of its customers through email marketing.

It has used social media to launch several commercials. It has a Facebook page displaying regular updates and interactions to maintain visibility and brand value. It also has innumerable followers on Twitter. Friendly applications have been a great source of luring customers to its base, in the case of Foodpanda. One of its taglines is an apt description: Foodpanda is in your pocket. It reminds customers of easy and quick availability through Apple and Google Play stores.

Promotional ads are also placed on various apps to maintain brand recognition. Publicity events have been launched in popular malls, television, radio, cinema, magazines, newspapers, train hoardings, bus hoardings, and billboards. Since its launch in December 2015, it has made a deal with Indian Online Railway System where customers can place food orders while traveling.

Foodpanda’s promotion strategy centers around the following key elements and marketing strategies:

1. Frequent Discounts and Offers: Foodpanda consistently offers discounts, cashback, and promotional deals to entice customers, encourage repeat orders, and enhance brand loyalty.
2. Partnerships and Tie-ups: The company collaborates with restaurants, food festivals, and local events to run co-branded marketing campaigns and leverage cross-promotion opportunities.
3. Digital Marketing and App Engagement: Foodpanda heavily invests in digital advertising and social media campaigns, engaging customers through its mobile app with personalized recommendations and exclusive app-only promotions, fostering customer retention and growth.

Some Recent Video ads and Print ads of Foodpanda are:

Foodpanda People Strategy

The “People” element of the Service Marketing Mix for Foodpanda involves various stakeholders who play a critical role in delivering its service efficiently and effectively. This component ensures customer satisfaction, loyalty, and success in the highly competitive food delivery industry. Here are some key points related to the “People” aspect of Foodpanda:

1. Delivery Personnel: These are the frontline representatives of Foodpanda, responsible for the timely and safe delivery of food orders. They are the face of the company for most customers, and their professionalism, attitude, and efficiency significantly affect customer satisfaction and perception of the brand.
2. Customer Service Team: This team manages customer inquiries, complaints, and feedback. Their ability to resolve issues quickly and empathetically is vital to customer retention and loyalty. They also gather valuable insights from customer interactions, which can be used to improve the overall service.
3. Restaurant Partners: Foodpanda collaborates with various restaurant partners, from international chains to local eateries. Food quality, preparation, packaging, and multiple options available are critical to attracting and retaining customers. The partnership terms, support, and collaboration between Foodpanda and these restaurants directly impact the service quality and menu diversity offered to customers.
4. Technology and Support Teams: Behind the scenes, technology and support teams ensure that the Foodpanda app and website run smoothly, are user-friendly, and incorporate features that enhance the customer experience. These teams are responsible for developing and maintaining the digital infrastructure that supports order placement, tracking, payment processing, and customer support.
5. Marketing and Communication Staff: Although primarily associated with the “Promotion” element, the marketing and communication staff also play a crucial role in shaping the customer experience through targeted campaigns, promotions, and communication strategies that create awareness, engage customers, and build a positive brand image.
6. Training and Development: Foodpanda invests in training and development programs for its staff and partners to ensure high service standards. This includes customer service training, delivery protocols, health and safety standards, and the use of technology platforms. Continuous learning and improvement are emphasized to adapt to changing customer expectations and market dynamics.
7. Management and Leadership: The strategic direction, culture, and values of Foodpanda are shaped by its management and leadership teams. Their decisions impact how effectively the company can respond to market trends, manage partnerships, innovate its service offerings, and maintain high levels of customer satisfaction.
8. Community and Social Responsibility: Foodpanda’s involvement in community initiatives and social responsibility projects can enhance its brand image and foster a positive relationship with customers and the public. Supporting local businesses, environmental sustainability efforts and charitable contributions reflect the company’s values and ethics.

Foodpanda Process Strategy

The “Process” element of the Service Marketing Mix refers to the methods and procedures used to deliver a service, encompassing the entire customer journey from initial engagement to the post-delivery phase. For Foodpanda, this involves a series of steps designed to ensure efficiency, convenience, and satisfaction in the food ordering and delivery experience. Here are some key points outlining the process of Foodpanda:

1. Website and App Navigation: The process begins with an intuitive and user-friendly interface on Foodpanda’s website and mobile app. This allows customers to easily browse restaurant options and menus and select based on preferences such as cuisine type, price range, and user ratings.
2. Order Placement: Customers can place an order by selecting their desired items, adding them to the cart, and proceeding to checkout. At this stage, they can review their order, choose delivery times (if applicable), and enter delivery addresses and special instructions.
3. Payment Processing: Foodpanda offers multiple payment options, including credit/debit cards, digital wallets, and cash on delivery. The process includes secure payment processing mechanisms to ensure transaction safety and customer confidence.
4. Order Confirmation and Tracking: Customers receive a confirmation message with an estimated delivery time once the order is placed. Foodpanda provides real-time tracking features, allowing customers to monitor the progress of their delivery, from the restaurant preparation to the delivery personnel’s journey to their location.
5. Order Preparation and Packaging: Concurrently, the restaurant receives the order details through Foodpanda’s platform and begins preparation. The process emphasizes food quality, accuracy of the order, and packaging standards to ensure food safety and maintain temperature during delivery.
6. Delivery: Delivery personnel equipped with the Foodpanda app pick up the order from the restaurant and deliver it to the customer’s address. Efficiency, courtesy, and professionalism during delivery impact customer satisfaction significantly.
7. Customer Feedback and Rating: Customers are encouraged to rate their experience and provide feedback on the app or website after the order is delivered. This step is crucial for continuous improvement, as it helps Foodpanda and its restaurant partners to identify areas of success and opportunities for enhancement.
8. Customer Service and Support: Throughout the process, Foodpanda provides customer support for inquiries, complaints, or assistance needed. This can include helping with order modifications, addressing delivery issues, resolving payment concerns, and ensuring a resolution-oriented approach to customer service.
9. Data Analysis and Process Optimization: Behind the scenes, Foodpanda analyzes customer data, feedback, and operational metrics to refine and optimize its processes continually. This includes improving app functionality, enhancing delivery logistics, and fostering better restaurant partnerships to improve overall service quality.
10. Sustainability and Environmental Considerations: Increasingly, Foodpanda incorporates sustainable practices into its process, such as optimizing delivery routes for efficiency, encouraging reusable packaging, and supporting eco-friendly restaurant practices, reflecting a commitment to environmental stewardship.

Foodpanda Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix pertains to the tangible and intangible elements that customers use to evaluate the service quality before, during, and after the service delivery. For Foodpanda, a service primarily operating through digital platforms, physical evidence plays a crucial role in shaping customer perceptions and enhancing their overall service experience. Here are some key points related to the physical evidence of Foodpanda:

1. Website and Mobile App Interface: The design, usability, and aesthetic appeal of Foodpanda’s website and app serve as the first point of contact and a critical piece of physical evidence. A well-designed interface that is easy to navigate enhances the customer experience and reflects the brand’s professionalism.
2. Branding and Packaging: Foodpanda’s logo, color scheme, and branding materials found on the packaging, delivery bags, and uniforms of delivery personnel serve as visual cues of the brand. Consistent and distinctive branding helps in building brand recognition and trust among customers.
3. Delivery Personnel Uniforms: The uniforms or attire of Foodpanda delivery personnel, often branded with the company’s logo and colors, make them easily identifiable and contribute to the brand’s image and professionalism.
4. Delivery Vehicles: The appearance and condition of the delivery vehicles (bikes, scooters, or cars) used by Foodpanda can affect customer perceptions. Branded vehicles can also serve as moving advertisements for the service.
5. Food Packaging Quality: The quality of packaging for food delivery, including its design, durability, and the ability to maintain food temperature and presentation, is a tangible aspect that affects customer satisfaction and the perception of the food’s value and safety.
6. Order Accuracy and Presentation: The accuracy of the order delivered and the presentation of the food upon arrival serve as evidence of the service quality. This includes correct items, portion sizes, and any additional requests being honored.
7. Customer Reviews and Ratings: While not physical in the traditional sense, customer reviews and ratings on the Foodpanda platform and other review sites serve as tangible proof of service quality and customer satisfaction that potential customers use to make informed decisions.
8. Payment and Receipts: The ease of payment processing and the clarity of electronic or physical receipts provided to customers are part of the service’s physical evidence. They contribute to the overall perception of efficiency and reliability.
9. Communication Materials: Email confirmations, SMS updates, and push notifications about order status, promotions, and delivery tracking are tangible components of the service process that enhance customer engagement and satisfaction.
10. Safety Measures: In contexts such as health and safety standards, the visible implementation of safety measures (e.g., food handling standards, contactless delivery options) can be a crucial aspect of physical evidence that reassures customers about the care and responsibility the service provider is taking.

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