Online services Talabat company

Talabat, one of the leading food-delivery organizations of the MENA region has revolutionized the sector through its core attributes of efficiency, collaborations, and accuracy (Talabat, 2021). The value propositions of Talabat have created the benchmark of best practices in the sector.

Talabat initiated its journey in 2004, with the ambition of transforming the food delivery

infrastructure in the MENA region (Talabat, 2021). Since then, the organization has consistently

expanded its capabilities and collaborations. The organization was founded by Khaled Alotaibi

and Abdulaziz Al Loughani and is currently led by Tomaso Rodriguez, the C.E.O (Talabat, 2021).

Expansion, development, and growth stage Certain key milestones of the organization can be highlighted in this context. Talabat was

acquired by Delivery Hero, one of the leading food delivery organizationsin 2015 for $ 170 million

(Paracha, 2020). The expansive presence of Delivery Hero further strengthened the capabilities of Talabat. In 2016, Talabat was awarded 'Best Local' by Google Play, in the MENA region (SME,

2017)

Description of products

The core service offering of Talabat is the partnership with more than 4000 prominent

restaurants across the MENA region (SME, 2017). The core value proposition of the organization

is focused on accurate service offering within 30 minutes of placing the orders via the website and the official mobile app.

Talabat has successfully differentiated into the grocery sector in the recent past (Talabat,

2021). The organization has extended the core value proposition of delivery within 30 minutes as part of its grocery offerings as well. Moreover, the organization has collaborated with more than 100 prominent pharmacies and has successfully included medicine delivery as part of its portfolio (Talabat, 2021).

Problem statement

Considering the unprecedented corona virus pandemic, it has been observed and justified

that home delivery of all goods and services have deemed extremely necessary to consumers and businesses worldwide. It being fast moving consumer goods, electronics, or governmental errand services that are of high importance to consumers at home. The inability to leave the house during total lockdown highlighted to the world the necessity and importance of home delivery. The situation resulted in an increase in B2C sales and decreased B2B ecommerce. Although profits are the major benchmark for success in many businesses' perspectives. Today consumers are also looking into the same. Hala Siraj, managing director of Talabat Jordan states that consumers have become increasingly selective with their purchasing behavior, they prefer companies that display values and ethics that align with their own. (Talabatblog, 2021) At that point Corporate Responsibility started to become a cornerstone to businesses. It is now a reference point to many customers, specifically in 2020. People now look closely at how companies react to the global pandemic.

Overview about the problem

Many businesses relied on Talabat for the livelihood and the stability of their processes.

(Talabatblog, 2021) During the time of lockdown citizens cared about the safety of their families

and the hygiene of the products which were entering their homes. It was responsibility at this point to implement safety measures such as PPE and contactless delivery to make the delivery of their products as safe as possible. After made sure that their protocols are in place, they shifted their focus on to helping the community and customers through their organizations power in the government. It was not a secret that many businesses were starting to fall. Because of lower sales and the impact of the lockdown and fearful customers who refrained from eating out or shopping in crowded places. Talabat had to strategize about how their resources and capabilities can keep their partners afloat. In the end, without Talabats partners who generate their revenue for them through orders coming in on their apps, Talabat is left with no business to run. Therefore, the continuity of their partners rested on their shoulders said Hala Sirraj (Talabatblog, 2021).

Current Situation

Talabat was able to collaborate with governments across the globe to ensure that they were

able to continue providing their services to their partners and customers. They were able to keep a lifeline open for their customers during the pandemic. Sources of revenue kept coming in for business around and Talabat was their hero by helping to struggle against government protocols. Delivery revenues witnessed a decrease in the first months of the pandemic. Fears of food contamination are still valid but much less than the beginning of the pandemic. But then because of the lockdowns there was no way to be able to get groceries or food home except through delivery companies such as Talabat.

Situational Analysis

Market Overview Revenue

Today, the firm delivers food, groceries, and pharmaceuticals to seven countries in the Gulf

Cooperation Council, Kuwait included. The Kuwait online food market is projected to reach $810

million this year (2022) ("Online Food Delivery," n.d.). Its annual growth rate is estimated at

1.72%, meaning the online food delivery sector will reach $853 million in 2025. Talabat

collaborates with several restaurants, making it a platform-to-consumer delivery channel. This

market has also recorded impressive growth in Kuwait, with the 2022 revenue estimated to touch $297 million from $258 million in 2021. Its annual growth rate for 2022 to 2025 is expected to be 1.68%, resulting in a $312 million market volume in 2025. The user penetration is also increasing, with researchers estimating 19.5% and 19.8% user penetration in 2022 and 2025 respectively.

Collectively, the market will enjoy 1 million users by 2025 ("Platform-to-Consumer Delivery,"

n.d.). Talabat has the largest market share in and out of Kuwait, with various scholars valuing the

share at above 60%. The company has the most favorable reviews on various consumer-oriented.

Marketing goals and objectives

Target consumers (millennials and Generation-Zs) determine Talabat's marketing goals and objectives. These generations are technologically-savvy and heavily rely on the internet and internet-enabled devices to run various errands daily. Moreover, they lead a fast-paced life that requires fast-paced solutions. They also welcome online-based companies. For instance, they readily transitioned to online shopping and delivery when it first rolled out in Kuwait. The first marketing goal is to use social media to build brand knowledge among Kuwaiti millennials and generation Zs. COVID-19 made on-demand platforms such as Talabat favorable. Hence, the company used social media (where most generation Zs and millennials spend their time) to inform consumers of the Talabat on-demand food delivery model. This way, the firm has managed to lure a customer segment that prioritizes convenience and speedy services. The brand also hopes to boost its market share and attract new restaurants. Talabat enjoys the largest stake in the Kuwait online food delivery market. Its marketing initiatives are meant to maintain and expand this stake. For instance, collaboration with influencers ensures that the brand appeals to the influencer's particular segment. The company also utilizes carousel ads, which also charm generation Zs and millennials. Besides, Talabat rolls out offers of up to 50% to attract customers that eat from rival brands. Regarding its goal of registering new restaurants, Talabat's marketing tactics aim to attract restaurants with royal consumers. The brand uses a unique Business-To-Many (B2M) business model to roll out campaigns for businesses and consumers. For example, its website-based promotion initiatives are created with the model in mind, allowing interested restaurants and consumers to sign up. So, Talabat aims to boost its market share and attract new restaurant registrations. The firm also hopes to increase sales and maintain existing consumers. It utilizes influencer and content marketing techniques to reach new clients and increase sales and leverages various marketing techniques, including offer programs such as the recent festive offers, to build loyal consumer bases. The brand also promotes its unique selling point, "speedy delivery." Extant literature shows that consumers prefer Talabat because of its fast delivery (Almansour, Allafi, Zafar, & Al-Haifi, 2020). So, marketing this selling point attracts and maintains consumers. Notably, Talabat's Kuwaiti campaigns are mostly geared toward non-sustainable consumption. This finding is interesting because eco-conscious marketing is common today, with many brands positioning themselves as green conscious. Talabat's UAE campaigns mention sustainable consumption. However, the Kuwaiti campaigns mostly include videos and pictures of chips and cakes because the Kuwaiti generation Zs and millennials are not interested in healthy dietary practices. Almansour et al. (2020) surveyed 1045 Kuwaiti participants to determine how many ordered healthy food and found that fast food was the most commonly ordered food category, followed by sweets. Hence, eco-conscious marketing would discourage consumers, limiting the brand's objectives of improved consumer loyalty, increased market share, more brand awareness, and increased consumer sales.

Question is

What is the conclusion and your recommendations for Talabat Co.?