Uber Technologies (UBER.N) announced on Wednesday its plans to broaden the array of payment choices for its food delivery platform. Additionally, the company intends to introduce an artificial intelligence (AI)-driven assistant to aid users in discovering discounts and exploring diverse food offerings.
Uber Eats is gearing up to introduce a specialized “Sales Aisle” section to highlight promotional offers. These enhancements are expected to be launched either later this year or in 2024.
Food delivery platforms have been investing in AI to enhance their services, aiming to provide a more tailored experience and increase the overall convenience of their apps.
In May, Instacart’s competitor, CART.O, introduced “Ask Instacart,” a search tool powered by artificial intelligence (AI) designed to assist customers with their grocery shopping inquiries. This initiative was developed in collaboration with OpenAI, the creator of the AI chatbot ChatGPT.
In July, Bloomberg News reported that DoorDash (DASH.N) is also in the process of developing an AI chatbot named “DashAI” with the aim of expediting the food ordering process.
Uber has announced partnerships with federal healthcare programs like Managed Medicaid and Medicare Advantage. Starting in 2024, the company will start accepting applicable waiver payments on both Uber and Uber Eats.
Additionally, in 2024, the company will extend the option for individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits, which offer cash benefits for purchasing food, to utilize their waivers for grocery purchases on Uber Eats.
This action highlights a broader industry trend of targeting low-income households and vying for market share in an ever more competitive landscape.
DoorDash and Instacart have already enabled consumers to utilize SNAP waivers on their respective platforms.
The government is considering purchasing tomatoes directly from farmers in areas where prices have significantly dropped because of an abundant harvest, resulting in an oversupply in the local market.
Sources indicate that the Price Stabilization Fund (PSF) of the Consumer Affairs Ministry will be deployed to procure the produce. This initiative aims to offer assistance to struggling farmers who have resorted to using their crops as livestock feed due to prices failing to cover transportation expenses in certain regions.
The states of Maharashtra, Karnataka, and Andhra Pradesh have experienced the most severe impact, as an exceptional harvest has led to an oversupply in the market. Prices tumbled to as little as INR 3-10 per kilogram last week, contrasting sharply with the INR 250 per kilogram peak witnessed in August when heavy rains damaged crops and caused a scarcity in the market.
As per data collected by the National Horticulture Board, the mean wholesale and retail prices of tomatoes stood at approximately INR 30 and INR 16 per kilogram, respectively, in various regions of the country on Tuesday.
Meesho, the leading e-commerce marketplace, has announced its strategic entry into the branded products arena through the launch of Meesho Mall. This strategic move underscores their commitment to cater to the unique and varied demands of the vast Indian consumer base by providing a wide selection of both niche and branded products.
With this move, the company is determined to make online commerce accessible to everyone and support the digitization of small businesses and regional brands, as stated in their official release.
Furthermore, the unicorn company pointed out that even though customers may not actively seek out specific brands for their shopping requirements, there is a consistent trend of searches for branded products in specific categories like personal care and beauty, footwear, and electronic accessories.
Likewise, brands have also demonstrated a keen interest in joining Meesho to harness the platform’s robust capabilities, extensive presence in tier-2+ markets, and vast customer base.
Presently, Meesho Mall boasts partnerships with more than 400 national and regional brands, featuring prominent names like Bajaj, Biotique, boAt, Decathlon, Bewakoof, Himalaya, Mamaearth, Milton, Paragon, Philips, Plum, Sirona, WOW Skin Science, and numerous others. The mall consistently draws over 25 lakh unique transacting users each month.
Dhiresh Bansal, Chief Financial Officer at Meesho, said, “The strategic expansion into branded products aligns with our goal of offering a diverse and affordable selection to our consumers while being an enabler for several emerging and regional brands looking to tap a larger audience across the country.
Since its launch last year, Meesho Mall has been growing by 30 per cent month-on-month, processing over 1 crore orders in the past six months. “ We aim to double down on accessibility, affordability, selection, and experience for its diverse stakeholders,” he added.
IPO-bound Honasa Consumer’s subsidiary, The Derma Co, is celebrating a significant achievement. In just 41 months since its inception, the company has successfully crossed the milestone of generating a monthly revenue exceeding INR 30 crore. This remarkable feat translates into an annual recurring revenue of more than INR 350 crore.
The skincare brand supported by active ingredients, with a monthly sales figure of INR 30 crore, has outperformed Mamaearth, another brand under the Honasa umbrella.
“Being the second brand (The Derma Co) from our house, we deployed the playbooks that were created from our learnings from Mamaearth’s journey. Through the incubation and scale up phase, we realized that we have established repeatable playbooks that helped us reach milestones faster than Mamaearth,” said Varun Alagh, Co-Founder, Chairman & Chief Executive Officer, Honasa Consumer Limited.
Alagh expressed that this achievement by The Derma Co. serves as a strong validation of their strategies, reaffirming their confidence in their playbooks. Honasa intends to leverage these insights and apply them to the entire portfolio of brands within the parent company.
Honasa Consumer is gearing up to generate INR 400 crore through an initial public offering, with the primary intent of deploying the proceeds towards expanding its offline presence, introducing new brands to the market, and pursuing strategic acquisitions.
Alagh had previously informed PTI that Honasa’s primary objective is to enhance the brand’s reach by expanding its distribution network and increasing awareness of its flagship brand, Mamaearth. Moreover, the company has ambitious plans to elevate the performance of other successful brands such as The Derma Co, Aqualogica, and Ayuga, all of which are consistently achieving higher monthly sales.
According to Alagh, Mamaearth, a brand under Honasa, achieved the remarkable feat of becoming a INR 1,000 crore brand in India’s direct-to-consumer (D2C) industry at an astonishing pace.
According to a recent report by Crisil Ratings, brick-and-mortar apparel retailers in the organized sector are projected to experience a revenue growth of 7-8 percent this fiscal year. This growth is anticipated to be driven by increased demand during the festival and marriage seasons, despite the impact of inflation on discretionary spending during the initial quarter. The report highlights that ongoing expansion of stores, particularly into tier-II and III cities, will contribute to revenue growth in the current fiscal year as well as in the medium term.
The report indicated that although there has been a moderation in topline growth, the expected revenue growth will be on par with the 8 percent range observed prior to the pandemic.
Last fiscal, retailers witnessed a substantial 38 percent growth, stemming from a low starting point. This remarkable upswing was attributed to a swift recovery from the pandemic-induced economic downturn and higher profitability resulting from a sharp increase in raw material prices.
The report predicts that operating margins for this fiscal year are expected to reach 8 percent. This positive outlook is driven by a more favorable product mix, with a focus on the premium segment, as well as reduced input costs, which are anticipated to counterbalance the effect of increased marketing expenditures.
According to the report, the rate of expansion in store area will return to the pre-pandemic level of 2.2 million square feet in FY24, contrasting with the last fiscal’s 3.7 million square feet.
The Crisil report is founded on an examination of 39 organized apparel retailers, collectively representing a quarter of the INR 1.9 lakh crore revenue generated in the previous fiscal year.
According to Anuj Sethi, a senior director at the agency, demand in the premium segment is rising gradually with consumers increasingly preferring branded garments, driven by return to office and buoyant corporate activity.
This is helping offset muted-to-low demand from the economy and value segments, which account for 60 per cent of the revenue, because of changes in discretionary spends, he said.
With continuous store expansion, and the onset of the festive and wedding seasons, demand should improve in the third quarter, which normally fetches around 35 per cent of the annual revenue.
Operating margin is seen at previous year’s level of 8 per cent, despite significant reduction in prices of cotton, the key raw material, as per the report.
While store expansion in metros and tier-I cities will continue, retailers are also expanding to small towns, which will be relatively smaller-sized outlets.
Hence, the pace of area addition will normalise to pre-pandemic levels this fiscal. That, coupled with continuing investments to augment technology platforms and omni-channel infrastructure, will keep annual capex flat at last fiscal’s INR 2,000 crore.
Online fashion retailer Myntra is piloting an innovative approach by implementing return fees for customers with a history of high return rates, as reported by insiders.
The “return-as-a-service” project, introduced a few months following Myntra’s implementation of a fixed “convenience fee” ranging from INR 199 to INR 299 on each purchase made by customers exhibiting a significant history of product returns, has been unveiled. According to an insider, these customers typically engage in twice as many or more product returns compared to the average customer.
The company is currently adopting a more lenient approach towards returns, and in the coming weeks, it will test a fee structure ranging from INR 15 to INR 30 per return for high-return-rate customers once they have utilized their allocated free returns.
“Myntra feels that the flat charge of INR 199 to INR 299 per order may negatively impact user behaviour, not only among these users but also in their wider circle… although this is a small percentage of the overall cohort, it is still a sizable number of people,” the person said.
The “convenience fee” was imposed on approximately 2% to 5% of the platform’s customer base, totaling about 50 million active users. Active users refer to individuals who engaged with the platform at least once in the last 12 months and are distinct from users who carried out transactions.
A spokesperson for Myntra said it keeps experimenting on the platform. “In our endeavour to enhance customers’ shopping experience, we are trying to solve how customers can choose to make more informed shopping decisions and minimise their returns,” the spokesperson said, without giving further details.
In contrast to segments like smartphones, electronics, and appliances, the fashion category experiences a notably higher rate of returns within the ecommerce industry. Industry executives have indicated that between 25% and 30% of clothing products bought online are subject to returns. This is primarily attributed to factors like variations in sizing and fit across brands, as well as disparities in color, texture, or design between online depictions and the physical products.
Enforcing a return fee, if applied on a broader scale, has the potential to reduce the per-order servicing expenses. Among ecommerce companies, logistics stands out as the most substantial cost center.
Myntra has prioritized the reduction of returns as one of its key objectives this year. In addition to applying fees to customers with elevated return rates, the company has been endeavoring to encourage these customers to opt for exchanges over full returns by providing additional discounts as an incentive.
Myntra’s initiative to reduce returns coincides with the upcoming peak festival season, scheduled to commence in October. This period represents a significant portion of annual sales for ecommerce platforms in India. Despite facing growing competition from rivals like Reliance’s Ajio, Tata Group’s Tata Cliq, and numerous other brands that directly sell to consumers through their websites, Myntra maintains a leadership position in the online apparel sector.
This year’s festive season carries increased significance due to its occurrence during a broader downturn in ecommerce sales. As per a report from Unicommerce, dated August 10, the order volume growth in India’s ecommerce sector decelerated from 69.4% in FY22 to 26.2% in FY23. Moreover, the growth in gross merchandise value also declined to 23.5% in FY23, down from 73.6% in the previous year.
Reducing return rates is a crucial factor for companies striving to achieve profitability, as returns can significantly inflate logistics expenses. In an effort to offset operational costs, online clothing retailers have already implemented surcharges. For instance, Myntra imposes a convenience fee of INR 15 per order for all customers, Ajio charges INR 19, and Nykaa Fashion levies approximately INR 29.
Meisterwurst, the premium cold-cut meats brand, is delighted to announce its official debut at several prominent locations: Le Marché DLF Galleria, South Point Mall, Khasra, and Modern Bazaar outlets within Select City Walk, Vasant Vihar, Defence Colony, Green Park, Kailash Colony, and SS Plaza Gurgaon. This exciting launch introduces a delectable range of European-inspired cold cuts to discerning customers.
Meisterwurst’s introduction at Le Marché and Modern Bazaar represents a noteworthy achievement for the brand, underscoring its ongoing worldwide growth while satisfying the tastes of Delhi and Gurgaon residents who appreciate premium offerings. These esteemed supermarket chains were selected as partners because of their mutual dedication to delivering outstanding products and customer experiences.
Arthur Maurer, Founder & CEO of Meisterwurst said, “This allows us to raise the bar for customer expectations and bring online standards to the offline experience. It’s important to have our products in premium stores like Modern Bazaar and Le Marche which goes well with our high quality brand developed all these years. With this collaboration we aim to make customers’ shopping experience easier and more efficient.”
In today’s fast-paced business environment, providing your consumers with information is more than a favor; it’s a competitive advantage. Customers who understand your goods or services from the inside out are more likely to make educated judgments, become loyal customers, and even serve as brand champions.
Educational Content Creation
The first step to empowering your customers is by creating educational content. This could be in the form of blog posts, how-to videos, webinars, or even interactive tools. The key is to provide valuable information that helps customers understand how to make the most of your offerings. For instance, a software company could create a series of video tutorials showcasing different features.
Clear and Comprehensive Documentation
Ensure that your product documentation is not just a dull manual but a comprehensive guide that simplifies complex processes. Include FAQs, troubleshooting tips, and step-by-step instructions. User-friendly documentation reduces frustration and encourages exploration.
Interactive Workshops and Webinars
Hosting interactive workshops or webinars is a great way to engage with your customers directly. You can address their questions, provide hands-on demonstrations, and offer real-time guidance. This personal touch enhances their understanding and builds trust in your brand.
User Community and Forums
Foster a sense of community among your customers by creating user forums or online communities. Here, customers can share their experiences, ask questions, and learn from one another. This not only empowers users but also reduces the burden on your customer support team.
Personalized Recommendations
Utilize data-driven algorithms to provide personalized product recommendations. By analyzing customer behavior and preferences, you can suggest relevant products or services, making the decision-making process easier and more satisfying.
User Feedback Integration
Actively seek and integrate user feedback into your product development process. When customers see their suggestions come to life, they feel heard and valued. This also ensures that your products align better with user expectations.
Transparency in Marketing
Be transparent in your marketing efforts. Highlight both the strengths and limitations of your products. This honesty builds credibility and trust. Customers appreciate knowing what to expect, which ultimately leads to more satisfied and informed buyers.
Empowering your customers with product knowledge isn’t just a nice gesture; it’s a strategic move that can drive your business forward. When customers feel confident in their understanding of your offerings, they are more likely to make informed choices and become loyal advocates. Implement these strategies, tailor them to your specific business needs, and watch as your empowered customers become your brand’s biggest champions. In the ever-evolving world of business, knowledge truly is power, and by sharing it, you empower your customers to help your business thrive.
Understanding your target audience is not just a critical component of success in today’s brutally competitive business scene; it is the basic foundation upon which your brand is constructed. It’s improbable, if not impossible, to strike a bullseye while blindfolded. The same idea applies to branding: without a defined target audience in mind, your marketing efforts will most likely fall flat.
The Importance of Knowing Your Audience
Before we delve into the strategies to identify your target audience effectively, let’s underscore why this knowledge is paramount:
Relevance: Tailoring your message, products, and services to your audience’s needs and desires ensures your brand stays relevant and resonates with your customers.
Efficiency: Understanding your target audience streamlines your marketing efforts, optimizing your budget and resources by reaching those most likely to convert.
Connection: Building a strong connection with your audience fosters trust and loyalty, turning customers into advocates who can champion your brand.
Innovation: Knowledge of your target audience’s pain points and preferences can inspire innovation, helping you stay ahead of the competition.
Growth: As your business evolves, so might your target audience. Continuously identifying and adapting to your aud
Strategies for Bulls-eye Branding
Market Research: Start by conducting comprehensive market research. Analyze demographic data, psychographics, and behavioral trends. Use surveys, focus groups, and competitor analysis to gather insights.
Customer Personas: Develop detailed customer personas that represent your ideal customers. These should include age, gender, income, interests, pain points, and even a fictional name and photo to humanize your audience.
Segmentation: Divide your target market into distinct segments based on common characteristics. This allows for more tailored messaging and product offerings. For example, a clothing brand might target both fashion-forward millennials and budget-conscious parents.
Social Listening: Leverage social media and online monitoring tools to eavesdrop on conversations related to your industry. This provides real-time feedback and helps you stay in tune with your audience’s sentiments.
Feedback Loops: Create channels for feedback and engagement, such as surveys, customer support, and user-generated content. This not only strengthens your relationship with existing customers but also helps you refine your understanding of your audience.
Competitor Analysis: Study your competitors’ strategies and audiences. Identify gaps or underserved niches that your brand can address more effectively.
Stay Agile: Remember that your target audience can change over time. Be prepared to adjust your strategies as market dynamics shift, and new trends emerge.
Case Study: Starbucks
Let’s look at Starbucks as an example of a brand that has mastered Bulls-eye Branding. Starbucks initially targeted coffee enthusiasts looking for a premium, cafe-like experience. Over time, they expanded their target audience to include busy professionals seeking convenience, college students seeking study spaces, and families looking for a relaxed atmosphere. Starbucks consistently adapts its menu, store design, and marketing to cater to these various segments, making it a ubiquitous and beloved brand worldwide.
Bulls-eye Branding isn’t a one-time exercise; it’s an ongoing process that requires vigilance and adaptability. By understanding your target audience inside and out, you can craft messaging that speaks directly to their hearts and minds. The result? A brand that not only survives but thrives in today’s dynamic business landscape. So, grab your figurative bow and arrow, take aim, and watch your brand hit the bullseye every time. Your audience is waiting – make sure you’re speaking their language.
In the competitive world of food brands, finding your unique flavor and standing out from the crowd is essential for success. One effective strategy to achieve this is niche marketing. Niche marketing allows you to target a specific group of passionate and dedicated consumers who share a deep love for a particular type of food or culinary experience.
Identify Your Niche
The first step in niche marketing is identifying your niche. Start by conducting market research to uncover potential niches that align with your brand’s strengths and values. Look for underserved or overlooked segments of the market with specific tastes, preferences, or dietary needs. Your goal is to find a niche that resonates with your brand and has a dedicated following.
Understand Your Niche Audience
Once you’ve identified your niche, take the time to deeply understand your target audience within that niche. What are their unique preferences? What problems or challenges do they face in their culinary journey? What motivates them? By gaining a comprehensive understanding of your niche audience, you can tailor your marketing efforts to their specific needs and desires.
Craft Niche-Centric Content
Creating niche-centric content is essential for engaging your target audience effectively. Develop content that speaks directly to the interests and aspirations of your niche. This could include recipe ideas, cooking tips, product recommendations, or stories that resonate with their culinary experiences. Ensure that your content showcases your expertise and passion for the niche.
Build Relationships within the Niche Community
Engage with the community that surrounds your niche. Participate in online forums, social media groups, and events related to your niche. Establish yourself as a valuable and knowledgeable member of the community. Building relationships within the niche community can lead to word-of-mouth referrals and brand advocacy.
Product Development and Innovation
Tailor your product offerings to cater to the specific needs and desires of your niche audience. Consider creating unique and niche-specific products or variations of existing products. Innovation that aligns with your niche’s tastes and preferences can set you apart from competitors and drive loyalty.
Leverage Influencers and Ambassadors
Identify influencers or brand ambassadors who have a strong presence within your niche. Collaborate with them to reach a broader audience that shares an interest in your niche. Influencers can create authentic content that resonates with their followers and positions your brand as a trusted authority.
Tell Your Brand Story
Craft a compelling brand story that reflects your passion for your niche and your commitment to delivering exceptional experiences. Share this story across all your marketing channels, allowing your niche audience to connect with your brand on a personal and emotional level.
Measure and Optimize
Track the performance of your niche marketing efforts by monitoring relevant key performance indicators (KPIs). Analyze data on website traffic, social media engagement, sales, and customer feedback. Use this data to continually optimize your niche marketing strategy and adapt to changing trends and preferences within the niche.
In the world of food brands, niche marketing can be the secret sauce to success. By identifying the right niche, understanding your audience, creating niche-centric content, building community relationships, innovating your products, collaborating with influencers, and telling your brand story, you can effectively leverage niche marketing to savor success in the food industry. Remember, niche marketing is all about catering to the unique tastes and preferences of a dedicated audience – and when done right, it can lead to a loyal and passionate following that sustains your brand for years to come.
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