Marketing Strategy
Smak is a simple and convenient way to create a culture of conscious consumption. Just download, log in and save by buying high-quality surplus food from several partner places. It's always cool, cause you not only save but also contribute to the well-being of the planet!
The main problem we solve is: reduction of food waste. On the other hand, we contribute to a safer environment.
The company’s missions are to develop an app that can be used to buy food for a discounted price that otherwise would be discarded. Reduce the number of products that are wasted, fight for the environment, allow people to save.
What makes our product unique is quality food for an affordable price.
Startup goals and key plans
Smak has two types of primary goals :
For the public: to reduce waste; to form a culture of conscious consumption
For the company: 5,000 partners (restaurants, cafes, bakeries, supermarkets, and mini-markets) and 250,000 unique and active users in 6 months.
The key performance indicators that will help us to track the progress are:
1. User acquisition: 100k users within 6 months after the launch.
2. User retention-both consumers and partners.
3. Numbers of meals ’’saved’’: 500k meals saved within a year after the launch.
Target Audiences & Market
Market segments:
300k users - Ukrainian market size, hence, this is the potential possible penetration (data was calculated by Raketa - food delivery service before the launch on the Ukrainian market).
Buyer Persona 1
Demographic. M/F, 13-20 years old.
Geographical. Citizens
Economic. Pocket money/ middle income.
Motivational. They want to try something new and pay less, love to be trendy, always in hurry.
Psychological. Tech-savvy. Can’t imagine life without social media such as Instagram, YouTube, TikTok and Facebook.
Buyer Persona 2
Demographic. M/F, 20-45 years old.
Geographical. Citizens
Economic. Middle income.
Motivational. They want to try something new and pay less, love to be trendy, always in hurry.Too much to do.
Psychological. Tech-savvy. Create a content on Facebook, Instagram, YouTube. They are afraid that the products may not be fresh
Competitive Analysis
1. Raketa - indirect competitor:
Food delivery service.They are already operates in 27 cities, 18 regional centers in Ukraine: Dnipro, Kyiv, Lviv, Vinnytsia, Kharkiv, Odessa.Their partners are more than 3000 cafes, restaurants, bars and shops.
On December 24, 2020, the company started operating in the capital of Cyprus - Nicosia. Free delivery without restrictions on the amount of the order.
2. Glovo - indirect competitor:
Spanish company.It is an on-demand courier service that purchases, picks up, and delivers products ordered through its mobile application. As of July 2019, the company operates in more than 20 countries, 3,000 establishments. The ratio of Android and iOS is 75% to 25%. Kyiv gives about 70% of turnover. In Glovo works, almost 5k couriers.
Marketing Channels
Regarding this issue, we have to address the fact that for the proper functioning application and satisfied end users we need to overcome a huge number of B2B negotiations with partner places. Hence, the most effective channel, in this case, is the live communication with the management of every particular place (restaurant, cafe, so on).
Regarding this issue, we have to address the fact that for the proper functioning application and satisfied end users we need to overcome a huge number of B2B negotiations with partner places. Hence, the most effective channel, in this case, is the live communication with the management of every particular place (restaurant, cafe, so on).
The end-users are going to be acquired through the following channels:
1. Social media: Instagram, Facebook, Twitter, and TikTok. Collaboration with bloggers, influencers (Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message). The purpose of it is brand awareness and to build a strong brand name. Metrics to measure success will be the number of followers.
2. Digital ads: to attract new users.
Marketing Mix
1. Social media: Instagram, Facebook, Twitter, and TikTok. Collaboration with bloggers, influencers (Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message). The purpose of it is brand awareness and to build a strong brand name. Metrics to measure success will be the number of followers.
2. Digital ads: to attract new users.
Marketing Mix
- product: modern, convenient, logical application; a package with a product received from our partner institution in the hands of our client; emotion from the new product.
- price: 30-80% lower than the usual price for the product or a fixed price per pack
- place: a partner place within walking distance.
- price: 30-80% lower than the usual price for the product or a fixed price per pack
- place: a partner place within walking distance.
- promotion: cool, short videos for social networks, advertising in partner institutions, billboards in cities.
Tactics, Timeline & budget
We plan to invest in the following tactics:
We plan to invest in the following tactics:
Phase 1: MVP development that includes an application for the end-users + admin platform for partner places. Timespan: 3 months.
Phase 2: MVP launch in a pilot city - Vinnytsia (middle-sized city with a strong middle class, a high number of young people). Timespan: 2 months.
Phase 3: Adjustments of MVP together with the launch in 2 next cities - Kyiv and Odesa. Timespan: 2 months.
Phase 4: Introduction of the final version of the application and web platform.
Throughout all the stages the proper marketing campaign is needed. That has to be accompanied by the work aimed on increase the number of partner places.
The approximate sum of investments needed is €150 thousand, that includes:
- Development of IT solutions 50%;
- Marketing expenses 25%;
- Operational expenses 25%.
Phase 2: MVP launch in a pilot city - Vinnytsia (middle-sized city with a strong middle class, a high number of young people). Timespan: 2 months.
Phase 3: Adjustments of MVP together with the launch in 2 next cities - Kyiv and Odesa. Timespan: 2 months.
Phase 4: Introduction of the final version of the application and web platform.
Throughout all the stages the proper marketing campaign is needed. That has to be accompanied by the work aimed on increase the number of partner places.
The approximate sum of investments needed is €150 thousand, that includes:
- Development of IT solutions 50%;
- Marketing expenses 25%;
- Operational expenses 25%.
Self-reflective essay:
This is my final self-reflective essay on the process of creation a Food-Tech Startup, called Smak. Smak is an Ukrainian word that means taste.
About one third of all food produced globally is wasted, which has negative economic, societal and environmental consequences.Food waste accounts for 10% of all global greenhouse gas emissions, and 28% of agricultural land worldwide is used to produce food that will eventually be wasted. At European level, the average citizen throws away about 92 kg of food a year, which contributes to a third of the annual waste generation per capita. In addition, the financial cost of food waste in Europe is estimated at 143 billion euros per year. If food waste has an economic value, its prevention has an economic benefit. Different initiatives have arisen to prevent and reduce food waste.
That is why we aim to create a system in which surplus food from partner establishments (restaurants, cafes, cafes, bakeries, supermarkets and mini-markets) will be sold at a lower price. As a result we have: income from food that would otherwise be wasted. Cost optimization for the disposal process. Formation of a culture of conscious consumption. Reduction of food waste → benefits for the planet. Additional advertising for partner institutions.
Consumer food waste is the result of a complex set of behaviours, with different conscious and unconscious factors influencing those behaviours rather than the result of a single action. Some factors at the consumer level help in preventing food waste, such as knowledge and skills related to meal and food planning. Especially, in Ukraine food waste is the big problem. So, this was the main reason why did we create this food-tech Startup.
As of 15.02.21 on the territory of Ukraine there are no such applications that would work in this market.
There are two powerful players in this field in the European market: Too Good To Go is a Danish company, based in 15 European countries. In September 2020, entered the US market. In one of the last rounds of investment, the company raised about 20 million euros. Karma is a Swedish startup, founded in 2016, operating in the markets of Sweden, England, France and Italy. In addition to these companies, there are several local ones, including Lunchie and ResQ. Our competitors in the domestic market are: shelves in grocery stores, aimed at selling goods with an expiration date. special offers from establishments, in particular, cafes, which sell at a discount goods that will soon cease to be fresh.
There are several risks for us such as an opportunity for foreign startups to enter the Ukrainian market. Ability to implement similar solutions by companies specializing in product delivery - Glovo, Raketa and others. Ability to implement similar solutions in existing applications of large network institutions (Auchan, Aroma and others). Insufficient eco-consciousness of Ukrainian society as an obstacle to successful project implementation. Relation to our application as a "marketplace of stale goods".
To take everything into account, I really liked the process( concluded all steps) of creation of tech startup. So, I hope that this application will change not only people's style of life, but also make them more food-waste conscious. Not to mention the fact, that an even bigger effect will most likely be reached when Smak is able to get consumers on board who are currently less aware and less actively engaged in the food waste problem and its possible solutions.
Thank you!
