MIP Presentation:

Food.2Home.in: A Marketing Strategy

for targeting corporate customers
 MIP Presentation:
Food.2Home.in: A Marketing Strategy
for targeting corporate customers

Company Name: Ictoban Online Services Pvt. Ltd.

Presented By: Mr. Kunal Madkaikar

Faculty Guide: Prof. Jaba M Gupta

Industry Guides: Mr. Nirmesh Mehta/Mr. Aravind R S

 Presentation Flow

Introduction
Objectives
Methodology
Phase 1: Company and Industry Analysis
Phase 2: Exploratory Research
Phase 3: Descriptive Research
Phase 4: Analysis and Recommendations
Scope for further study
 Introduction to ICTOBAN Online Services Pvt. Ltd.

Startup firm by three IIMA graduates from the 2009

batch.
Two Independent Businesses:
 Food ordering website (Food.2Home.in)
 Management Consulting
Food.2Home.in:
 Online food ordering website.
 Operating in three cities (Ahmedabad, Mumbai and Manipal)
 Completed one year of operations in May 2010.
 Customer base: 1400 customers
 Objectives

Aim:
 To device a marketing strategy to get the corporations /
employees who order food by telephone to switch to
Food.2Home.in.
Objectives for fulfilling the aim:
 To understand the business and perform a Company and
Industry analysis.
 To conduct marketing research to understand food ordering
habits and patterns of corporations.
 Methodology
The project was executed in the
following Four Phases:
 Phase 1: Company and Industry
Analysis
 Porter’s Five force Framework
 SWOT Analysis
 Telephonic survey of current
customers
 New Customers
 Regular Customers
 Irregular Customers
 Lost Customers
 Phase 2: Exploratory Research
Phase (Qualitative)
 Four Focused Group Discussions
with corporations in Ahmedabad.
 Phase 3: Descriptive Research
(Quantitative)
 Questionnaire was administered
to 234 Corporate Employees
belonging to 150 companies
across 10 different cities.
 Modes of questionnaire
administration
 Personally
 Online
 Phase 4: Analysis and
formulation of Marketing
Strategy
 Cross Tabulation
 Factor Analysis
 Phase 1:
Company and Industry Analysis
 4 P Analysis
Product Placement
 Website  Deliveries: Handled by
 Website Features Restaurants
 User Interface  Orders are transferred to the
 Service
restaurants via SMS
 Food Attributes: Freshness, Warmth
 Delivery Attributes: On-time
 Conformation calls made to the
delivery, Packaging Customers
 Confirmation Calls Promotion
Price  Financial Constraints
 Prices of the Food items:  Word of mouth promotion by
Controlled by the restaurants satisfied customers
 Service to Customer: Free of cost  Newspaper Articles, Fliers
 Service to Restaurants:
Commission Based
 Posters in associate restaurants
 Banners in cinemas
Business Model: Value creation through
Complementarities

Restaurant

Supplier Food.2Home.in
(Hosting Agency) (Agent)

Customer
 Porter’s Five Force Framework
 Threat of Entry: High

Threat of
 Low customer switching cost
New  Low Capital requirement
Entrants  Low scale independent incumbency advantage
(High)  Easy access to existing chain of restaurants
 Threat of Suppliers: Low
 Low cost of switching the hosting agent
 Threat of Buyers: High
Threat of Threat of Threat of  Restaurant’s switching cost: Medium
Suppliers Rivalry Buyers
 Buyer backward integration
(Low) (Low) (High)
 Lack of regular updates
 Low priority to website
 Threat of Substitutes: High
 Buyer: low cost of switching to substitutes
Threat of  Presence of alternative : e.g. Just Dial
Substitutes
 Threat of Rivalry: Low
(High)
 Low exit barrier

 Products are heterogeneous

 Highly fragmented market

Overall Threat: Medium to High  Rival websites: HungryZone.com,

BookMyKhana.com, WebDhaba.com, mhungry.in

(Sources: www.WhatBlog.com, www.merosys.com, www.ehow.com)

 Existing Customer Feedback:
Telephonic Interviews
 Objective:
 Problems faced with the service
 Features missing with the site
 Source of introduction to the website
 Methodology:
 Classification: New, Regular,
Irregular and Lost customers
 10 Customers from each class were
selected for the telephonic interview
based on judgmental sampling
 Facts:
 3324 Orders from July 2009 to
March 2010
 Total revenue: Rs. 9031o
 Average of Rs. 27 per order
 Customer Lifetime Value: Rs. $42
Observations:
 Positives: User-friendly Interface
 Problems Faced:
 Late Deliveries
 Improper packaging
 Stale food delivered
 Price mismatch
 Menu items no longer served
 Too many steps to order
(Cumbersome process)
 Sources of introduction:
 Friend Referrals (29.4%)
 Newspaper (23.5%)
 Posters in restaurants (17.6%)
(Among others)
SWOT Analysis
 Phase 2:
Exploratory Research
 Focused Group Discussions

Objective was to understand:

 Social and behavioral aspects linked to food consumption in
offices.
 Motivating factors affecting food ordering decisions.
 Expectations from a food ordering service.
Methodology
 FGD Moderator’s guide was prepared
 4 firms were identified using convenience sampling.
 Appointments were taken to conduct FGD in office premises.
 Discussions ranging from 45 minutes to 1 hour were conducted
 Major Takeaways from FGD
 Identified two distinct customers
 Individual Orders: Employees
 Bulk Orders: Office/Team
Celebrations
 Bulk orders:
 HR Department
 Administration Department
 Senior Executives
 Situations when food was ordered
in the office were identified.
 Lunch
 Evening snacks
 Office parties
 Team parties (Among others)
Typical office policies on food
reimbursement were identified.
Factors affecting individual
ordering were identified
 Variety
 Time
 Discounts (Among others)
Expectations from food delivery
service were identified
 Quick order facility
 Tie-up with quality restaurants
 Descriptive Menus
 Specialty Items
 Price Comparison (Among others)
 Phase 3:
Descriptive Research
 Questionnaire
 Scope of the survey:  Sections:
 Administered personally in  Introduction
Ahmedabad  Individual food ordering
(Number of responses = 100)
preferences
 Online responses (10 cities)
 Lunch Related
 Sampling Method:
 Office Policies
 Personally Administered Survey:
Convenience Sampling  Demographic Information
 Online Survey: Snowball Sampling
 Sample Size:
 Factor Analysis:
No of observations/ No of
dependent variables = 10/1
No of dependent variables = 11
Thus,
Sample size > 110
People surveyed = 240
 Phase 4:
Analysis and Recommendations
Individual Orders by Employees
 Lunch Arrangements
What are your current lunch arrangements in the office? Total Percentage

At canteen inside commercial complex 2 0.85%

Have lunch at home 1 0.43%
I carry home cooked food 134 57.26%
I eat at a restaurant outside the office 26 11.11%
I have enrolled for a tiffin service 16 6.84%
I order food to the office from outside restaurants 15 6.41%
My office provides me food at subsidized rates 38 16.24%
My office provides me food, but not at subsidized rates 2 0.85%
Grand Total 234 100.00%
What are the typical situations when you order food to be delivered at your desk?
What are your current
lunch arrangements in Daily lunch (I order
Evening Occasional Working late
the office? almost on a regular Dinner Don't Order Grand Total
Snacks lunch at office
basis)
At canteen inside
commercial complex
0.00% 0.00% 0.00% 50.00% 50.00% 0.00% 100.00%
Have lunch at home 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 100.00%
I carry home cooked food 0.51% 0.51% 7.18% 22.05% 44.10% 25.64% 100.00%
I eat at a restaurant
outside the office
8.57% 0.00% 2.86% 11.43% 48.57% 28.57% 100.00%
I have enrolled for a
tiffin service
28.57% 0.00% 9.52% 9.52% 28.57% 23.81% 100.00%
I order food to the office
from outside restaurants
17.39% 0.00% 4.35% 21.74% 43.48% 13.04% 100.00%
My office provides me
food at subsidized rates
0.00% 0.00% 0.00% 0.00% 50.00% 50.00% 100.00%
My office provides me
food, but not at 0.00% 0.00% 0.00% 0.00% 50.00% 50.00% 100.00%
subsidized rates
 Typical Ordering Situations
What are the typical situations when you
Number of responses Percentage
order food to be delivered at your desk?
Daily lunch (I order almost on a regular basis) 14 6.0%
Evening Snacks 64 27.4%
Occasional lunch 144 61.5%
Working late at office 95 40.6%
Don't Order 21 9.0%
Total Responses 234  
Note: The percentage values do not add to zero since the question was multiple choice question
How many times per month do you order food to your desk?
What are the typical
situations when you
order food to be Less than 2
2 to 5 times 6 to 10 times More than 10 times Don't Order Grand Total
delivered at your desk? times

Daily lunch (I order

almost on a regular 0% 7.14% 7.14% 85.71% 0% 100%
basis)
Evening Snacks 14.06% 46.88% 28.13% 10.94% 0% 100%

Occasional lunch 22.38% 54.55% 16.78% 6.29% 0% 100%

Working late at office 28.42% 54.74% 10.53% 6.32% 0% 100%
Don't Order 0% 0% 0% 0% 100% 100%
 Factor Analysis
Q. Think of a situation in the recent past when you placed an order for food to be delivered
to your office. Keeping this situation in mind rate the following statements based on
how much you agree / disagree with the statements. 
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
I seek a different restaurant every time I place an order.
I like trying new dishes / cuisines.
I like to try restaurants that are recommended by friends and family.
I like ordering food from restaurants that have received good
customer reviews in newspapers and magazines.
I only order food from restaurants that have delivered food on time
in the past.
I only order food from restaurants that are close to my office.
I do consider discounts offered by the restaurants while placing the
order.
I do compare prices of different restaurants while placing the order.
I prefer that restaurants mention their specialty items in the menu
cards.
I would prefer ordering food from restaurants with descriptive
menus mentioning the ingredients along with the food items.

I do give importance to the restaurant brand while placing an order.

 Factor Analysis
KMO and Bartlett's Test
Rotated Component Matrixa
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .588
Component
Bartlett's Test of Sphericity Approx. Chi-Square 229.355

df 1 2 3 4
28
Recomended_Restaurants .125 -.072 .845 .172
Sig. .000
Customer_Reviews -.009 .274 .794 -.121
Communalities
Ontime_Delivery -.060 .204 -.008 .795
Initial Extraction Proximity_to_Office .152 -.151 .062 .782
Recomended_Restaurants 1.000 .765
Discounts .844 .182 .107 .030
Customer_Reviews 1.000 .720
Compare_Prices .869 .074 .012 .060
Ontime_Delivery 1.000 .677
Speciality_Items .150 .794 .061 -.137
Proximity_to_Office 1.000 .661
Descreptive_Menus .106 .780 .102 .204
Discounts 1.000 .758
Extraction Method: Principal Component Analysis.
Compare_Prices 1.000 .764 Rotation Method: Varimax with Kaiser Normalization.

Speciality_Items 1.000 .676 a. Rotation converged in 5 iterations.

Descreptive_Menus 1.000 .672
Note: The four factors explain 71.164% of the total variance
Extraction Method: Principal Component Analysis.
 Factor Analysis

Factor Factor Name Components Average Factor Average

Recomended_Restaurants 3.95
1 Referral Customer_Reviews 3.32 3.637
Ontime_Delivery 3.77
2 Reliability Proximity_to_Office 3.66 3.718
Discounts 3.64
3 Price Compare_Prices 3.38 3.506
Speciality_Items 3.46

4 Value Added Features Descreptive_Menus 3.56 3.511

Observation: Priority given to the different factors is as follows

1. Reliability
2. Referral
3. Value added features
4. Price
 Recommendations

Changes in the Product:

 Measures to improve reliability factor:
 Tie-up with quality restaurants.
 Tighter control over Restaurants by strengthening the contract clauses.
 Introduce value added services such as:
 Descriptive menus mentioning the food ingredients.
 Saving order history for reference and expenditure tracking.
 Saving you favorite order for one click order placement.
Changes in Promotion:
 Measures to improve online promotions:
 Introduce a friend referral system on the website.
 Food ordering is a high involvement buying behavior. Web 2.0 interface can be used
to make the site more interactive by introduction of food related discussion forum.
 Introduction of loyalty programs (e.g. registered customers would get loyalty
points on each order which can be traded for discounts/prizes.)
Bulk Orders by Corporations
 Industry Details

Others Industry Split

10% Consulting
Telecommunications Traders Advertising 11%
3% 1% 5%
Media Airline
2% Retail 1%
1% Automotive
Marketing and Sales 1%
3% BPO
Manufacturing 3%
5%

Finance
17%

IT services
27% Healthcare
3%
Human Resource
1%
Insurance Infrastructure
3% 5%

234 Responses
150 Companies
10 different cities
 Typical Situations For Ordering Food

Typical situations for ordering food

100.00%

80.00%

64.00% 66.00%
62.00% 59.33%
60.00%

40.00% 34.67% 35.33%

30.00% Percentage

20.00%

0.00%

ti es ti es on
s n s
c es ng
s
a te
r r ti tio n ti L
P a Pa b ra b r a
f ere ee in
g
ce am ele le n t M
o rk
Offi Te lC Ce Co il en W
va y
sti da C
Fe rth
Bi

Note: The percentage values do not add to zero since the question was multiple choice
question with checkbox.
 Ordering Responsibility Details

Admin 2.0

A Senior Executive of the company 6.0

The Receptionist 12.0

Percentage

HR Department 29.3

Consensus of office staff 62.7

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Observation: HR, Receptionist and Senior Executives were the major decision makers
while placing the orders.
Note: The percentage values do not add to zero since the question was multiple choice
question with checkbox.
 Reimbursement Policies

What are the limitations that are Number of

Percentage
applied to such orders? Companies

There is an upper limit to amount

that can be reimbursed in one 49 32.67%
order.
Does your office
reimburse the food
expenses (or provide food Number of There is an overall cap on the total
coupons) incurred during companies Percentage amount that can be reimbursed in a 14 9.33%
overtimes (or when month.
working late)?
This facility is only available to
senior position employees. 7 4.67%

Yes 91 60.67%
There are timing restrictions (E.g.
No 59 39.33% Reimbursement will be provided to 31 20.67%
employees working after 8pm).

Such facility can be availed only a

limited number of times during a 8 5.33%
month.
No Limitation 9 6.00%
 Factor Analysis For HR and Administration Dept.
KMO and Bartlett's Test
Rotated Component Matrixa
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .516
Component
Bartlett's Test of Sphericity Approx. Chi-Square 68.077
1 2 3
df 28 Different_Restaurant .135 .006 .787

Sig. Recomended_Restaurants -.068 .332 .719

.000
Ontime_Delivery .793 -.022 -.299
Communalities Proximity_to_Office .111 .428 -.594
Initial Extraction Discounts .050 .826 .107
Different_Restaurant 1.000 .637 Compare_Prices .016 .907 -.015
Recomended_Restaurants 1.000 .632 Speciality_Items .713 -.009 .334
Ontime_Delivery 1.000 .718 Descreptive_Menus .829 .118 .019
Proximity_to_Office 1.000 .548 Extraction Method: Principal Component Analysis.
Discounts Rotation Method: Varimax with Kaiser Normalization.
1.000 .697
Compare_Prices 1.000 .822 a. Rotation converged in 4 iterations.

Speciality_Items 1.000 .621

Descreptive_Menus 1.000 .701 Note: The four factors explain 67.2% of the total variance
Extraction Method: Principal Component Analysis.
 Factor Analysis For HR and Administration Dept.

Factor
Factor Factor Name Components Average Average
Different_Restaurant 3.05
Recomended_Restau
Variety and rants 3.975
1 Proximity Proximity_to_Office 3.85 3.625
Ontime_Delivery 3.825
Speciality_Items 3.725
2 Service Descreptive_Menus 3.475 3.675
Discounts 3.95
3 Price Compare_Prices 3.65 3.8

Observation: Priority given to the different factors is as follows

1. Price
2. Service
3. Variety and Proximity
 Recommendations

Changes in the Product:

 Introduce corporate login accounts with facilities such as:
 Individual login for employees
 Cap on expenditure per order
 Overall monthly expenditure cap per employee
 Time restrictions on order
 Expense tracker for the company
 Advanced price comparison of the bulk orders for HRs and Admins.
Changes in Promotion:
 Advertising strategy should be Cognitive-Affective-Behavioral
 Cognitive: Highlight all the new features introduces and their benefits.
 Affective: Keep a limited period free trial
 Behavioral: Acceptance and Recommendations. Highlight the good
recommendations received on the website.
 Scope For Further Study

Confirmatory Factor Analysis using Structural Equations

Modeling
Analysis of various Advertising channels and
recommending the most feasible options.
The End

Thank You!!!