DRIZLY Marketing ProposalMGMT 392 Professor Susan SampsonEi Ei Kyawt San, Anna Rausa, and Melissa Wright

AgendaI. Background - Ei Ei

II. Problem - Melissa

III. Goals of Research - Melissa

IV. Demographics - Melissa

V. Industry Analysis/SWOT - Anna

VI. Marketing Plan

○ Online and In Context - Melissa

○ Strategy Shift - Melissa

○ Social Media - Melissa/Anna

○ Influencer Marketing - Anna

○ Strategic Partnerships - Anna

○ Measures of Success - Ei Ei

VII. Budget and Return - Ei Ei

VIII. Limitations + Conclusions - Ei Ei

Background● Drizly is a technology

company offering online

and mobile shopping

experience for beer, wine

and liquor

● Founded in 2013 by Nick

Rellas and Justin

Robinson

● Raised $17.8 million

through angel and

institutional investors

Background

Retail Partner

Consumer Order Drizly

Info

rmat

ionDelivery

● Consumer places order

through Drizly

● Drizly relays

information to retail

partner

● Retail partner is

responsible for

fulfillment and

delivering the order to

the consumer

The Problem:

How can Drizly remain competitive and increase brand awareness in a volatile industry?

● Competition in the food delivery service industry is high, companies are fighting to steal market share

● Threat of new entrants is high for the beverage delivery segment, with the threat of diversification of current delivery services

Goals of ResearchAnswer the following questions:

● Who uses delivery services?

● What criteria affect a consumer’s purchase?

● What drives consumers to purchase on web and mobile

applications?

● Are consumers familiar with Drizly and other food

delivery services?

Methodology

● Conduct secondary research

● Conduct primary research through Qualtrics survey

Who Is the Demographic?

● Target demographics

○ Access and interest in

technologies

○ College-aged, working

professionals, highly

educated, expendable

income

○ Ages 18-34 make up 70%

of delivery service

consumers

● Our Survey

○ 170 respondents

○ 59% between the ages of

21-34, majority female

○ 48% are employed full

time, 38% are students

Industry Analysis● Online is most used,

followed by telephone

● Respondents mostly drink

none, 1 or 2, or 3 or 4

alcoholic beverages a

week

● The majority of

respondents never use

delivery services, with the

next popular response

being once a week

Industry Analysis ● Food/Beverage Delivery Applications

○ Funding drying up as VC slows down

○ Startups failing out of saturated market

○ Smaller firms forced out by big players

● Common trends

○ Expand too quickly and lose momentum

○ Bigger firms invest in apps & collaborations

occur

■ Whole Foods purchased Instacart,

Foursquare & Delivery.com, Yelp & Eat24

○ Food startups lost a quarter of a billion in

investments from 2015 to 2016

SWOT Analysis

The Marketing Plan

Online and In Context● High-tech online delivery

service, print ads inconsistent

● Higher conversion on ads that

bring consumers directly to

delivery site

● Rebranded, but have strange

ads featured in print mediums

● Only 36% know Drizly

● Addressing early adopters and

innovators, but going to face

chasm before moving into early

majority

Current StrategyBusiness Level Strategy:

Broad Differentiation

Functional Level Strategy

Drizly:● IT● R&D● Marketing

● Drizly may not be able to hold onto

its first-mover innovation

advantages

● Focus on customer service

● Rewards and incentives for retail

partners

● HR should focus on hiring

competent customer service

employees

● Research customer service best

practices

● Shift marketing to online platforms

Retail Partners:● HR● Customer

Service

Retail Partners ● Local partner intel:

○ Sales from Drizly reach 40-50% of overall sales

○ Underage orderers get banned, but has to reach the

point of delivery

○ Contract to deliver through Drizly is more than likely

exclusive

● To incentivize and maintain market share as a first mover:

○ Market membership to more retail partners,

highlighting increased sales

○ Exclusive delivery membership

○ Generate success stories of other retail partners

Social Media

Facebook: 1.55 billion users

Instagram: 400 million users

Youtube: Over 1 billion users

Twitter: 320 million users

Pinterest: 100 million users

Snapchat: 100 million users

● 74 percent of consumers use social media to make

purchase decisions

● YouTube overall, and even YouTube on mobile alone,

reaches more 18-34 and 18-49 year-olds than any

cable network in the U.S

● 38% of organizations plan to spend more than 20% of

their total advertising budgets on social media channels

in 2015, up from 13% in 2014

● 90% of young adults (ages 18 to 29) use social media

Social Media● Current social media is

poorly timed, too frequent,

and offers little to no value

to consumers

● Posts are frequently recipes,

but appear at odd times

● Weak engagement

● No direct mention of ability

to purchase recipe items on

Drizly

● Do not advertise coupon

codes

Content Calendar

Social Media● Customize content for each

social media channel:

○ Encourage engagement

and suggestions

○ Provide coupon codes

○ Interact with other

brands

○ Target consumers

talking about drinks or

alcohol by location and

provide them with a

coupon

Influencer Marketing

● “Rather than marketing directly to

a large group of consumers, you

instead inspire/hire/pay

influencers to get out the word for

you.”

● 92% of consumers say they trust

word-of-mouth and

recommendations from friends

and family above all other forms

of advertising

● 13-24 year olds identified more

with YouTubers than with TV

personalities or movie stars

Derrick Schommer3.1K1.2K8KCommon Man Cocktails

Mamrie Hart543K 866K32K You Deserve a Drink

Elliott Morgan139K 83.3K38K Happy Hour

Strategic Partnerships

● Partner with major alcohol beverage companies (Jameson,

Smirnoff) to advertise availability through Drizly on social

media

● Target posts by location, focusing on areas where Drizly is

accessible

● If the company limits the post's audience, they can control

the visibility of the post based on audience age, gender,

location and language

Strategic Partnerships

● Most familiar delivery

service is Grubhub

● Processes 1.6 million

orders per week

● Expected revenue will be

$2.6 billion in 2016

● Partnership with Grubhub,

combine to sell both food

and alcohol for delivery

● Similar business models

Measures of Success ○ Impressions

■ Increase impressions per post from 44K to 75K

○ Social Media Followers

■ Increase total channels’ followers by 70%

○ Social Media Engagement Per Post

■ 15 interactions on Twitter

■ 500 on Instagram

■ 50 on Facebook

○ Retail Partner Sign-Ups

■ 30 new retail partners

○ Website Visitors

■ 80,694 in February 2016

■ Increase to 100,000 per month

○ Revenue

■ Drizly’s revenue was $1M in 2015

■ Increase revenue to $2M in the year the marketing

plan is enacted

Budget and Return

● Acquisition cost for new retail

partners: $2,000 per partner

● 15% of impressions will engage

with the media, and 5% of the

impressions will purchase

● Acquisitions cost for new

consumers: $6.53 per

consumer

● Return on Investment: $4.64

per dollar spent

Limitations

● No access to Drizly’s internal information

● No industry intel about advertising partnerships

● No direct information available on differences in

markets’ success

● Biased towards Boston market and female respondents

● Respondent age requirement 21+

Conclusions

● Adjust advertising to reach consumers online and in the

proper context

● Tailor content by channel, reducing cross-channel posts

● Focus on customer service instead of innovation

● Partner with both Grubhub and major alcohol brands

Thank You! Q & A

Industry Analysis

Delivery Service Industry

● $34.2 billion market in 2013

● 60% of Americans order take out or

delivery once a week

● Online orders totaled 403 million in 2010

● Online orders totaled 904 million in 2015