Marketing in Action Case Real Choices at Sprig What\'s for dinner? Sprig would l
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Marketing in Action Case Real Choices at Sprig What's for dinner? Sprig would like to play a part in a health- conscious customer's answer to that question. Sprig is an on- dustry is developing and attracting attention from many new demand delivery restaurant that offers balanced meals which are fully prepared and delivered in 15 to 20 minutes. The serts, drinks, and kids' meals in San Francisco, New York, Los company focuses on using the freshest ingredients to create Angeles, and Seattle. It offers ready-to-cook meals that are innovatively delicious food that supports a healthy lifestyle. Itsdelivered with directions on how to successfully complete the target market includes those who have busy schedules and dish. Postmates operates a network of local couriers to deliver desire meals that include servings of fruits, vegetables, promeals through a service called Pop that promises food delivery teins, and other nutrients. Sprig's website claims, "We use the best ingredients to create dishes that are high on flavor and low on butter, oils, and sugar." Customers have a choice of ordering meals via the Internet or by an app The on-demand delivery segment of the restaurant in- players. Munchery delivers fresh-food entrees, sides, des- in 15 minutes or less. Pop is fast because it eliminates the ickup leg. Rather than spending time traveling to a specific erchant location or waiting for the food to be prepared Postmates drivers who participate in Pop carry an inventory of CEO Gagan Biyani realized as he worked at ride-sharing freshly made items ready to drop off immediately. Even Uber is company Lyft that when he ordered on-demand meal delivery in the market with UberEats, its own on-demand meal delivery he was relying way too much on unhealthy options like pizza. ice that uses existing Uber technology and customer rela- So in 2013 he created a company that gives the health-con tionships for competitive advantage scious consumer better choices without compromising speed S So what's next for Sprig? Are they on the right track or convenience. Jessica Entzel, executive R&D; chef and Biyani's trgeting only the smaller health-conscious segment of on-de- irst employee, manages Sprig's menu development. She teams with Nate Keller, a former executive chef for Google, who develops relationships with local farmers and manages as experienced by the search engine, social media, and other the company's sustainability efforts. Keller has a great deal of tech markets-that is, a shake-out of initial providers with only freedom and a large budget to experiment with recipes and a few remaining competitors today. How does Sprig become then test them with a host of eager tasters. Sample menu se-one of those few that survives? lections include grilled jerk chicken with habanero slaw, beef J keema with roasted red potatoes and cabbage, and truffled OMake the Call and delivery? Biyani expects the on-demand delivery market experience shake-out among competitors similar to what mac and cheese with cauliflower béchamel Sprig uses data continuously collected from customers to S7-30. What is the decision facing Sprig? refine the menu and ensure consistent delivery of desirable innovative meals that offer high eedback on each item to see if it meets and exceeds customer expectations. When the ratings are not as expected, she digs deeper into the responses to discover ways to fix the problem C7-34. What are some ways to implement your recommenda- before including that item on the menu again. She also makes sure the presentation of the meal is first-rate, a difficult task to accomplish consistently in on-demand delivery. Hence, the Se:Bsed on Hay McCracken, "The RED behind Meal Delivery Stanp Sprig's New Reciges: Fast Company (lan 27, 0p meal development process takes into account how to trans- 221, Mel R port the food without it arriving to the customer as an unat 7-31. What factors are important in understanding this deci- Entzel studies customer SI 7-32. What are the alternatives? 7-33. What decision(s) do you recommend? tion? www.tastcompany aocessed April 21, 2016l: THomepa Sprig, Business nader (Al 21, 2018,/www.echinsder.ig-lood-delilvery-on-demand-startup-2016-4 jaccessed prl21, 2016htp:iog postmates.com/post/1 30627727422/paprocks (accessed Aoril 29, 2016 tractive mess.Explanation / Answer
Sprig is an on demand delivery restaurant that offers balanced meals which are fully prepared and delivered within 15 to 20 minutes. CEO Gagan Biyani, along with Jessica the executive R&D chef manages the entire restaurant including the preparation, choice of ingredients, deciding on the menu and delivery too. They have teamed up with Nate Keller, a former executive chef for Google, to develop relationships with local farmers and to manage the company’s sustainability efforts.
The owners do take all the feedbacks seriously and takes extra care in correcting those mistakes before they put those dishes back on the menu. This is one striking quality that is not found in any other fast food joints as the customers get to have a voice with Sprig.
Market categories that Sprig operates include all the working professionals as well as youngsters who are health conscious. The main differentiating factor that enables Sprig to stand out from the competition is the extra care they take to supply healthy dishes. Since the founder and CEO Gagan Biyani knows the trouble any health conscious and busy professional would face to get a healthy meal, he does put in all his ideas to bring out the best to the customers.
The management at Sprig is faced with a dilemma whether to continue in the same pace, and if not, how to step it up in order to become the leader in on-demand delivery segment.
The other on-demand delivery restaurants like Munchery or Postmates, have tie ups with local couriers to get their food delivered on time. They sell ready-to-cook meals where the presentation of the meal is not a problem. In case of meals delivered by Sprig, presentation is one major factor that they give importance to, and hence they cannot rely too much on local courier services for the same.
As Biyani expects the on-demand delivery market to experience shakeout among competitors, Sprig needs to get their healthy meals as their competitive advantage over the other competitors. They first need to finalise their target audience and advertise more about how healthy their meals are. That could increase their sales and in the long run be a chance to be the market leader in on-demand delivery restaurants segment.
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