Question 3 The company would like to explore marketing opportunities for a home-

Question

Question 3 The company would like to explore marketing opportunities for a home-delivery ervice and have engaged you as a consultant. (a) Recommend which basic competitive strategy would be most appropriate for this home-delivery service. You may either use a competitive positioning strategy suggested by Michael Porter or a value discipline suggested by Treacy & Wiersema (15 marks) b) Mr Tatara is keen to hear from you about the "push" and "pull" promotion mix strategies used in marketing. Explain how these two (2) promotion mix strategies can (15 marks) TOTAL: 30 marks) be utilized to market this home-delivery service

Explanation / Answer

a) As R E&S is planning to focus on home delivery services, it is confronted with two competitive strategies :

Low Cost or Differentiation

For home delivery services, R E&S should focus on low cost services. People generally look for low cost options when they order for home delivery services.They do not focus much on rich food and different experience. In order to experience that, they go for fine dining restaurants and enjoy the meals. So low cost strategy is an effective option.

b) Push Promotion strategy : In this promotion strategy, company keeps the finished goods inventory of food products ready and then offer attractive discounts and promotions on it so as to make the customers purchase the same.

Pull promotion strategy : In this promotion strategy, company first promotes the product aggressively, make the customers attracted towards the product and thus tempting them to purchase the food items.

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