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Delivery strategy
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Before there were this bunch of delivery apps, people filled their refrigerators with magnets with delivery phones.

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Then came the pandemic and the habit of ordering deliveries changed.

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What used to be an exception is now almost the rule, and a well-designed delivery strategy will offer many advantages.

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Notice the plural in the title: delivery areas.

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That's right, starting from a single store you may have different criteria for delivery.

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The iFood example

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The largest delivery app offers two alternatives to restaurants:

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In the basic plan, the app charges 12% commission on sales and delivery is the responsibility of the restaurant;

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In the delivery plan, the app charges 23% commission on sales and also takes care of the delivery.

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In both cases, you win by selling to customers that may not be yours, but you never know if they could be your customers otherwise.

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Timeline

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In general, it involves the analysis of travel times for the design of ideal delivery areas and measurement of the attainable market potential.

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It is estimated that within a week of dedication this project may be completed.

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Important steps

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Project presentation (1h)

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The consultant will give a conceptual presentation of Geomarketing and how it is used by various professional networks in the definition of their delivery strategies.

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Client-consultant alignment (2 hours)

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Clear and sincere explanation of the expectations regarding delivery, making it clear if the consultant can propose alternatives or if it is only up to design the areas.

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Presentation of delivery strategy references.

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  • Collection of the list of orders placed on the store's own channel, with delivery address.

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Development (6 hours)

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The consultant will examine the information collected and design delivery scenarios.

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Mapping the address base and evaluating orders by region.

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Understanding the delivery area of influence.

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Own channel

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The network may even be present in the apps, but it increases the price there to cover the fee and direct customers to the store's direct channel.

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In this strategy, it is important to have a well-differentiated product to justify the migration of clients from the application to the proprietary platform.

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Hybrid

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Equivalent pricing policy, both for the app and for the channel itself.

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Exclusive promotions on our own channel.

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Marketing campaign in the primary delivery region, the one where the network is most in demand.

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100% apps

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In that case you don't need this study, since all orders arrive through the apps and you don't have delivery address information to map.

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If that's your focus, focus on the production cost to offset app commissions.

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This is an interesting alternative if you have a competitive cost advantage in a category with high demand in applications.

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Publication of four studies:

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  1. Delivery mapping
  2. Characterization of areas with a concentration of orders
  3. Understanding opportunities in market voids
  4. Strategic delivery scenarios

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Alignment with the client (2 hours)

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Debate about the main findings and definition of paths to follow.

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Once the delivery strategy has been defined, it will be time to unfold the studies on the market criteria.

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With all this in mind, the consultant will start designing the delivery areas.

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Refinement (10 hours)

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Development and publication of three other studies, now outlining the criteria for action in different delivery areas.

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Price, Promotion and Square (in this case the delivery areas)

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Primary area - region that concentrates 70% of orders

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  • Competitive prices on our own channel
  • Promotions on our own channels
  • Marketing campaign to promote your own channels

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The idea here is to reward the customer with a part of the amount that would be paid to the app.

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Secondary area - region other than the primary one that reaches 90% of orders

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  • Prices that cover the delivery cost per app
  • Order promotions through own channel - which is when the customer reserves the order for a certain time, making logistics much easier

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The idea is to balance the delivery costs via the app.

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Tertiary area - anywhere other than the secondary

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  • Larger orders that compensate for delivery time (combos and the like)
  • Incentive to orders
  • Analysis of the potential to open a new point

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Final presentation (1h)

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After this journey, the consulting staff will present the complete cycle of analysis, learning and conclusion.

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This presentation may be recorded for consultation and subsequent dissemination.

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Additional content

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Dark Kitchens, commercial operations with no façade, focused entirely on deliveries

In Search of the Blind Spot

The recipe for success that comes from Japan

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