UBER EATS - CASE We all have had that hankering for a late‐night snack – but most often we resort to leftovers in the fridge or whatever might be on the counter or in a cupboard. Whether it is due to...

UBER EATS - CASE We all have had that hankering for a late‐night snack – but most often we resort to leftovers in the fridge or whatever might be on the counter or in a cupboard. Whether it is due to sleeplessness, studying, or even being a new parent, everyone has satisfied a craving or hunger at an odd time. And often we wished we had something more appetizing than what was on offer. So it is no surprise that the on‐demand market would come up with something to help satisfy this craving. Uber Eats is not the first company to offer home delivery of food, but it certainly is one of the most well‐known companies to enter this market. Uber Eats started out as UberFRESH in 2014, but a year late changed its name to Uber Eats. It is clear that this food‐delivery service trades on the well‐recognized name of parent company Uber when developing its approach to the food‐delivery customer. Much like Uber, Uber Eats attracts “independent contractors” to use their personal vehicles to deliver food at almost any time of day (only some cities have 24‐hour service). These drivers can set their own schedules and preferred areas of delivery. Existing Uber drivers can also sign up to work for Uber Eats, and do not have to go through any further vetting to do so. While still relatively new, Uber Eats has developed a strong network of restaurants around the world. Most cities served are in North America and Europe, with growth in Asia and South America. However, Uber Eats is not welcome in some cities because of prior problems with Uber, its ride‐share parent. Uber came charging onto the ride‐sharing scene in 2010 in San Francisco, offering the general public the opportunity to call for a ride using a phone app. This caused great dismay, and pushback, from taxi companies worldwide. Uber became a phenomenon, as consumers enjoyed the ease of use and lower prices for transportation. But in recent years, Uber has been hit by scandal upon scandal. The company has been booted from many cities and countries around the world, often for not following rules like undergoing proper background checks on drivers. Recently, the company culture has been attacked, as Uber faces lawsuits ranging from driver assaults on customers to accusations of a misogynistic work environment. Uber Eats was saddled with the poor brand reputation of Uber, but it also benefited from having a very valuable customer source: current Uber customers. It could not rely only on that group, however, so it began to reach out to market partners to help raise awareness and interest among the general public. In the summer of 2017, Uber announced a partnership with McDonald’s to deliver the fast‐food giant’s products to customers wanting to stay put to satisfy their cravings. Uber usually charges the price of the food plus a flat delivery fee that ranges between $4 and $6, depending on the city. In September 2017, Uber Eats announced that a lower flat rate of $2.99 would be charged for McDonald’s deliveries due to backlash from consumers who complained that original higher delivery rate could double the price of the food compared to drive‐through or restaurant visits. Realizing that such an increased cost for customers might make them reticent to buy, Uber even announced on its website that the McDonald’s and Uber Eats partnership was geared for a specific purpose: “Tap into $2.99 delivery on McDonald’s® for those late night and early morning cravings.” The implication of this message belies the problem facing Uber Eats: How does it appeal to a younger crowd that is more likely to have those late/night/early morning cravings without alienating other users who might be willing to use the service similar to a traditional food home‐delivery system. Uber Eats does see great potential for a younger, entertainment‐focused market segment that would likely use its service often. But with the high cost of delivery added to the cost of the food, the challenge is whether it can appeal to this group in a meaningful and sustainable way. This is where a new idea has popped up: a subscription service. Uber is flirting with the idea of having customers pay a flat monthly rate with special deals for those subscribers. How would you proceed with this challenging situation? Sources: • Cities for Uber Eats: https://about.ubereats.com/en_ca/cities • History of Uber: http://www.businessinsider.com/ubers‐history/#october‐2010‐uber‐closes‐a‐ • 125‐million‐seed‐funding‐round‐from‐first‐round‐capital‐kalanicks‐friend‐chris‐sacca‐and‐ • napster‐cofounder‐shawn‐fanning‐8 • Uber‒McDonald’s Agreement: https://www.uber.com/newsroom/tap‐into‐2‐99‐delivery‐on‐ • mcdonalds‐for‐those‐late‐night‐and‐early‐morning‐cravings • Subscription Service: https://www.uber.com/newsroom/tap‐into‐2‐99‐delivery‐on‐mcdonalds‐ • for‐those‐late‐night‐and‐early‐morning‐cravings
EXAMPLE:Memo Date: Oct 31, 2014 To: Marvel Executive Team From: Chris Ricard - 1234567 Re: Marvel super-hero’s need to focus on target markets and small screens! Based on the brief you provided (the case) I feel the two primary challenges Marvel will be facing in the near term are as follows:  The mention of shifting resources away from existing and successful target markets towards ‘private group showings and business/corporate groups’  A fundamental change in the way target audiences are consuming movie entertainment is happening as I write this. In other words; “Place” is in the midst of a ‘supply chain disruption’. Results speak for themselves; Phase 1 grossed almost $4 billion dollars & Phase 2 has been a success as well. Marvel’s corporate level marketing strategy has brought record box office receipts and comic book movies into the mainstream with a diverse, loyal target market following. Current consumer trends are showing a reduction in movie studio and theatre profits and this looks to be brought on by streaming services. This technology innovation is disrupting viewing habits as consumers can watch what they want, when they want at one low monthly price. This is not all about fighting alien armies; through extensive market research and analysis we feel the executive team at Marvel is doing a lot of things right: you’ve chosen the right characters for the films which is a great example of production innovation, your experience with the past films has developed a body of knowledge and experience that creates a cost competitive advantage that few film studios can match. Your diverse and loyal target market is continuously waiting for the next masterpiece which is clear by the 60 million plus views on YouTube for Age of Ultron. Based on my assessment of how streaming technology is impacting the entertainment industry this is an area that requires immediate attention. Although streaming video services like Netflix have been around since 2007, they are just reaching a critical mass point where basic consumer internet connections are able to provide enough bandwidth to actually ‘stream’ movies without frequent disruptions; this is the ‘game changer’. The main insights uncovered as a result of my research are two-fold: movement of advertising and promotional resources away from your currently strong target markets towards private group showings is not showing strong demand. Secondly, streaming services; although having an impact on the ‘place’ people watch movies and theatre profits, may have a silver lining for Marvel Studios. Following are two recommendations based on all of my research;  Stay the course with your current target markets. These diverse groups are loyal and continue to have strong demand for the Marvel character franchise. Maintain the corporate level marketing strategy that has been in place since the beginning of Phase 1. Movement to the private group showing target market does not show enough potential to make it sustainable.  Embrace the streaming service movement, based on research it is at a tipping point and I anticipate the next few years will see explosive growth for those providing this service. Theatres are great and you can ‘use’ them as long as they are around and worth it. If I may be bold; my recommendation is taking this one step further. Disney/Marvel should build their own streaming service; with a deep portfolio of content, this would be a great place to profile the Marvel masterpieces once they have completed their run in theatres while reinforcing brand awareness. This is also a perfect example of a Sustainable Competitive Advantage as the Marvel brand is yours, why let others like Netflix profit from your efforts. Measures of success would be maintaining high boxoffice receipts from loyal customers and building a streaming platform with a goal of 3 million subscribers in the first year, not to mention the valuable CRM data.




Case Analysis Framework & Worksheet
1.DEFINE THE PROBLEM After reading the case what are the main issues? Prioritize and identify what needs to be solved? In some instances, it will be clearly stated what the case is asking you to address. In others, it will be up to you to uncover and articulate the main issue.2.LIST RELEVANT EVIDENCE AND FACTS FROM THE CASE They should be associated with the issues noted above. Include both qualitative & quantitative data from the case. This can include information such as characteristics of the industry, consumers, competitive environment, characteristics of the organization. This is the evidence that feeds into your analysis.3.WHAT CONCEPTS CAN BE APPLIED? THEN BEGIN ANALYSIS List relevant marketing concepts and frameworks (SWOT, CREST, etc) from your learnings that you can you apply to the issues uncovered. Begin your analysis using the frameworks.4.FROM THE ANALYSIS, LIST YOUR MAIN INSIGHTS What are the most compelling or persuasive points from your analysis? They should provide options for moving forward or through the original issues uncovered. 5.FORMULATE RECOMMENDATIONS Your insights should be re-written into recommendations. List two recommended courses of action – do they have the potential to solve the original identified issue(s)?--Recommendation #1: _______________________________________________________________________ This recommendation solves the following issue(s): Analysis items (concepts/facts/insights) that are related to this recommendation:...........................
Recommendation #2: _______________________________________________________________________ This recommendation solves the following issue(s): Analysis items (concepts/facts/insights) that are related to this recommendation:
6.SELECT YOUR BEST RECOMMENDATION AND PREPARE AN ACTION PLAN Apply strategies and/or tactics from your learnings to execute on the recommendation. Explain your choices and keep in mind you are the consultant who will be handing these to your client. 7.MEASURING SUCCESS Success of this action plan will be measured by? What Key Performance Indicators (KPI’s) related to the action plan will you recommend and why?WRITING UP YOUR CASE ANALYSIS – USE A MEMO FORMATIdentification of the issue(s), these should be clearly stated, and should relate to marketing. One paragraph should besufficient.Write a compelling analysis of the issues referring to key facts from the case. Briefly refer to the frameworks and concepts used in your analysis, do not insert them into the memo. Finish this section by summarizing key insights. Two to three paragraphs, write to keep the reader engaged, not a recitation of facts and figures.Finish with your recommendations and how they will be measured. Support your recommendation with strategies and Tactics from your analysis. One to two paragraphs. THIS QUESTION ABOUT MARKETING-Segmenting, Targeting, andPositioning (STP)