Relay Foods
1. Situation
- Relay Foods is a website created in 2007 in Charlottesville
- Concept: o « Relay Foods is the online grocery store where you’ll find stuff you need from the best local stores, restaurants, and farms from right in your own neighbourhood. We’ve partnered with folks you already know to provide all your grocery shopping needs—from basics, to specialty foods, to local produce, to… you »
- Relay Foods is expending in a new city: Richmond
- The amount in advertising expenses is no more than 25% of profit
2. The Stakeholders
- Owner of the company: o Arnie Katz: president and COO of Relay Foods o Zack Buckner founder of Relay Foods
- Customer: o The average customer’s first order amounted to $46,71 o Average annual profit per customer was $200
- Supplier: o Local shop in partnership with Relay Foods
- Employee: o Driver
3. Target Market
The company is looking to attract customer:
- Who was a fairly educated professional
- Who was interested in local and gourmet foods
- Who was not interesting in running multiple errands
4. Competition
- Direct competitor: o No direct competitor because it’s a new concept
- Indirect competitor: physical food store o Whole Food, Polyface farm
5. Marketing Problems
1. What kind of advertising mix should he employ to acquiring new customers in Richmond?
2. How the company can respect their advertising budget (25% of profit) to promote the concept in Richmond?
6. Solution
1. Affiliate marketing: It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchant) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network.
2. Local radio ⇒ broadcast different radio spots to make known the company and promotes customer
- Relay Foods is a website created in 2007 in Charlottesville
- Concept: o « Relay Foods is the online grocery store where you’ll find stuff you need from the best local stores, restaurants, and farms from right in your own neighbourhood. We’ve partnered with folks you already know to provide all your grocery shopping needs—from basics, to specialty foods, to local produce, to… you »
- Relay Foods is expending in a new city: Richmond
- The amount in advertising expenses is no more than 25% of profit
2. The Stakeholders
- Owner of the company: o Arnie Katz: president and COO of Relay Foods o Zack Buckner founder of Relay Foods
- Customer: o The average customer’s first order amounted to $46,71 o Average annual profit per customer was $200
- Supplier: o Local shop in partnership with Relay Foods
- Employee: o Driver
3. Target Market
The company is looking to attract customer:
- Who was a fairly educated professional
- Who was interested in local and gourmet foods
- Who was not interesting in running multiple errands
4. Competition
- Direct competitor: o No direct competitor because it’s a new concept
- Indirect competitor: physical food store o Whole Food, Polyface farm
5. Marketing Problems
1. What kind of advertising mix should he employ to acquiring new customers in Richmond?
2. How the company can respect their advertising budget (25% of profit) to promote the concept in Richmond?
6. Solution
1. Affiliate marketing: It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchant) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network.
2. Local radio ⇒ broadcast different radio spots to make known the company and promotes customer