Marketing and brand strategy to make logistics easy via Drone deliveries.

Assignment Taken

Marketing segmentation and brand Development strategy to make logistics easy via Drone deliveries.

Case Understanding

As we know the hyper local delivery is a latest trend in market which has lot of scope in future. Hyper Local Delivery marketplace’ model is in other words ‘on-demand’ near me delivery model. The current courier system is slow and outdated. Moreover delivery of immediate goods is not possible within 15minutes. Therefore, company has to market the product to businesses, customers and work on brand image. In today’s era the rising usage of Android phones, surge of online marketplaces through mobile-apps like Pharm-Easy, Uber Eats, Zomato, Swiggy and web-apps based ecommerce platforms like Flipkart, Amazon, Right from daily groceries, essentials like fruits and vegetables, clothes, furniture, accessories, shoes, backpacks, electronics, and the list goes endless one can order everything online. Even alcohol gets delivered at the doorstep these days. With the hyper-surge of online marketplaces the volumes of parcel deliveries also increased multifold and hence the boom in secondary markets like logistics. Due to Covid-19 pandemic one word is booming like anything in logistics sector that is contactless delivery. Further Covid19 Pandemic proved as an accelerator to aggressive acceptance of these marketplaces. Online platforms witnessed a sudden and large increase in the volumes of visitors. With this increase in number of online consumers and pressing consumer demands, it also exposed the weaknesses and bottlenecks in the current supply-chains and forced many leaders in the industry to re-think the logistic solutions. Which addresses the bottlenecks of this area? With huge rise in the parcel delivery volumes the need for fast speed, lower cost of operation and environment friendly technology, drones will have a bright market for logistics in recent times. With this thorough analysis we at Airway deliveries have introduced a new freight of drones to mitigate this gap of costly last mile deliveries. With drones we are targeting online marketplaces like food delivery and ecommerce platforms to start our services with. Our solution has excited to be make change in logistics by using drone technology. We target to be logistics partner of our clients (online marketplaces) in the areas where package volumes are soaring, capacity is shrinking, and shipping costs are skyrocketing.

BCS Solution Summary

The solution lies with market segmentation, brand positioning strategies and identified targeted customer base. In market segmentation we divided market on the basis of demographics and geographic factors then on the basis of services our business is targeted to wholly B2B and to the some extend B2C.Then, we have been segregate drone delivery services into different classes like Exclusive Services (Speciallity type service-Avilability on Night also)-Premium price charged, Inclusive Service (Standard Price charged), Regular type of services (Basic price charged). About our brand positioning strategies: We use multi-channel marketing strategy using outbound email marketing and social media marketing to create awareness of our services into the minds of decision makers Like C- Suits of our target B2B platforms and in the minds of their end-consumers.

Solution

Airway delivery’s by drone decision to venture into hyper-local delivery business has many immediate constraints and opportunities at the hand. An evaluation of the company’s internal strengths and weaknesses along with external opportunities and threats served as the foundation for this strategic analysis and marketing plan. The plan focuses on the company’s growth strategy, suggesting ways in which it can build on their existing customer relationships, and on the development of new services targeted to specific customer niches.
First up all by considering market research some things taken into consideration.
Environmental Analysis: The key factors that can be considered as significant variables in this delivery service model are mentioned as below:

Economic Factor (Cost Factor)
Value addition (in terms of fast delivery)
Convenience (from both buyer and seller)

A fairly new concept is introduced due to (Covid 19) Pandemic that is Contact less deliveries. So, the first expected adopters for this delivery mode would be urgent pharmacy deliveries, food deliveries, or contact less deliveries (as in now the COVID 19) a pandemic situation. Taking into consideration the fact that drone delivery is a fairly new concept in India, an in-depth understanding of the environment for marketing of this service needs us to look further into the following categories
Our SERVICES:
Airways Delivery is in the business drone conveyance line of business to boost benefits, and we will do all that is allowed by the law in India to accomplish our business objectives. We will participate in shipping meds and immunizations, and recovering clinical examples, into and out of far off or in any case difficult to reach locales, and moving medicines, food, or different products using our solid robots (Drone).
PRINCIPLES OF BUSINESS OPERATIONS:

Our vision is to establish a strong brand in the drone delivery segment.  To become a market leader in the delivery segment and evolve into an online marketplace eventually, by using techniques of continuous process improvement and innovation. The management principle used here is the ‘Going Concern’ Concept that states that a business should always be seen from a long-tern perspective. 
Our mission is to offer the fast, affordable and convenient delivery services  to consumers. 
SWOT ANALYSIS

Strengths:

Airway Delivery Drones service differentiation strategy is the positioning of the service in the existing hyper local delivery market. The marketing pitch resonated customer-oriented services, commitment to safe deliveries, and customer support services.
The relatively small size of the staff promotes good communication and quick response to clients’ needs. The software and marketing team can monitor marketing reports for continuous development in campaigns and marketing pitch.
A long-term relationship with the B2B supplier will result in shared knowledge of the services requirements, adherence to quality standards, and a common vision throughout the implementation of the delivery process.
 There is a high possibility of reorder business (with only drones or hybrid delivery mode) with an already satisfied customer base. New business potential through positive word-of-mouth communication, is expected to generate about 30 % of new business each year.
Weaknesses:
There is a lot of dependence of success of hyperlocal delivery mode on the flight management software of drones. A fool proof testing of this software on different topologies of India and weather condition is a critical factor for making this brand a market leader in this area.
Opportunities:
Airway Delivery drone’s division marketing campaign may hit the right notes by building an image of a fast and safe delivery without human intervention. In the post pandemic era – it may not be difficult for customer to be convinced for contactless delivery options.
 With the use of EV drones – Airway Delivery will resonate the tone of reducing carbon footprint. This makes the customer feel they are contributing socially to the fight against pollution in the society.
Well established B2B courier model opens up opportunity for hybrid delivery services – which will act as a market differentiator for Airway Delivery.
Threats:
The technology, knowledge, and equipment required is being controlled by a small group of people 2 software development members and 4 Qualified Drone Operators. The possible entry of new competitors is a significant threat with the change in critical staff.
Leakage of marketing strategies through change in management team may again help the competitors to gain access to the business model of Airway Deliveries.
Matching Strengths to Opportunities/ Converting Weaknesses and Threats
 Airway Delivery must make sure that its management hierarchy is maintained and it empowers its employees through a decentralized marketing organization.
 Immediate market survey of its current customers would help to gain a better understanding of competitors and workability of the proposed features.
 Immediate topological survey would help in machine learning software optimisation for making the optimised closed loop path tracking of drones

Segmentation of Market:
On the Basis of Geographic’s Segmentation:
For our business we were targeted to 2 Metropolitan cities that was Pune and Bangalore at initial level then we have been set a vision for ourselves to build trust as well as pan India presence.

Cities	Drones allocated as per cities (SRD)	Drones allocated as per cities (LRD)
Pune	30-SRD	3-LRD
Bangalore	30-SRD	3-LRD
Total	6	6

Market Segmentation on the basis of services:

B2B (Business to Business)

B2C (Business to Consumer)

Pharma chain & Medical Emergency: 60% (B2B)

Food Delivery & Grocery : 30% (B2B)

Document and parcel delivering facility- Same like Dunzo Model-10%

Kind of Logistic Services by our business:

Exclusive type: Medical Emergency service (Including day & night Services)

Inclusive type: Documents & parcel delivering facility –Same like Dunzo Model.

Regular type: Pharma chain, Food delivery & Grocery.

MARKET ANALYSIS

Target Market:

We know that the our drone logistic service business is essentially green and would require imaginative advertising draws near. So first up all for Medical emergency (Special Service)area we have to be tie –up with the hospitals, emergency clinics and blood banks. Our objective market cuts across emergency clinics and hospitals that need blood, sensitive blood tests or prescriptions, oil fixes that need new parts. We have led our statistical surveying and we have thoughts of what our objective market would anticipate from us. Secondly, for pharmacy sector we are good to go to with and associations;

Pharm Easy 

Netmeds

Wellness 24/7 

Many Startups.

Then for Food delivery sector we have to tie up with the well-known start-ups:

Swiggy

Zomato 

Uber Eats

Brand positioning:

Customer service based: The 15min delivery can happen only with the help of drones. Thus position must revolve around- quick, fast delivery

Price based: Since the drone delivery is cheaper and effective, positioning can be- “Cheap and best mode.”

 

Marketing Strategy :

The marketing strategy for the drone services will be implemented in four Stages and with two mix of offered services drones and hybrid.

Stage 1: Brand Awareness Campaign: This is the pre-launch phase for the drone services in which the following activities would be planned. We have testimonials from B2B customers and required permissions in place.

Digital marketing campaigns, with online platform You tube / FB / Instagram

Desk Pitching of commission-based service proposals to B2B companies (advertisement and customer conversion of B2B products on our app / websites)

Market survey to get a comprehensive customer profiling

Zone wise location profiling for defining price slabs (zone 1 within 10 km, zone 2 within 20 km and so on)

Stage 2: Test Offers phase: This is the phase of launching the services to B2C as our marketing campaigns are already in place with tie ups in proposed market segments.

Offer trails with short range drones to current customer base gain customer testimonials.

Collect consumer behaviour data and fool proofing deliveries.

Phase 3: Calibrate Service Offer Mix: With the experimental phase over, and data collected and analyzed in real trail operations we are ready for tried and tested offers. Broadcasting marketing campaigns of services to be started now.

Mass Campaign content / SEO / Referral / Paid promotions

E-mail Marketing Campaign for approached towards B2B clients like Startups like swiggy for became delivery partner.

Branding Campaign by Featuring in Business Magazine. It will be provide brand presence and visibility to targeted market.

Customer feedback & close looping surveys for customer retention

Planning for launch of Long-Range drones – emergency sites, remote location.

Phase 4: Post purchase & Repeat success: This is the final phase in which we are being recognized as a brand and we start our journey to create the value positioning of our services as planned. We keep repeating the trails and finetuning for business development and long-term customer retention.

Conclusion

After the detailed analysis of the study, it is the time to bring this exhaustive study to a meaningful conclusion. Airway Delivery Drone division has opportunities at hand to create the brand image of a market leader with the value proposition of fast, secure and convenient Hyperlocal deliveries with drones. However, management should pay attention to customer and location profiling before officially launching the services at a broader level and also on market segmentation. With the proof of concept in place in phase 3 they should be able to dive further into the brand image journey for this division. They need to continue a closed loop customer feedback and improvement process for many years to come in order to be recognized as a market leader in Hyperlocal delivery field

Attached File Details

View Attachment file (BSE Solution MKT-Department.docx)