GrubHub the online door to door delivery service now comes up with its own food channel, and all aimed at bringing a new eating experience to their customers.
GrubHub is starting to flex its imagination and raising the competition in the food delivery sector. This new means of communication is the use of social media video advertising, and GrubHub has developed a new lead, how to persuade customers to try out new cultural and sometimes exotic dishes. Expanding their customer's palate to new tastes and textures is a wild gig that might pay off in branding the company one step higher than its competitors.
GrubHub's senior director for brand marketing, Jessica Burns stated that it was time to "We really need to show the full experience of someone ordering food on GrubHub." If the concept works out, they might take it to the next level and advertise on TV, although the social media videos which ca run to 60 seconds are longer then TV ads.
The food delivery market, the door to door restaurant deliver services started to become “sexy” when delivery apps first appeared. Until then, it was relegated to a student’s gig; something that’s done in spare time. With apps becoming abundant and more added features, making deliveries lucrative for both restaurants and customers, the middlemen have come in to clean up the sector. DoorDash, Postmates and UberEats are all competing for the same niche, and some restaurants also offer similar services. UberEats already has a nationwide deal with McDonald’s, and this is an issue that all other services must consider and try to emulate with other large national food chains.
While there is strict competition, GrubHub is expected to increase their marketing expenditure, and have already reached the third quarter of 2017 budget of $35 million. GrubHub's new marketing venture is expected to raise the expenditure by a further 30 percent during 2018.
GrubHub has produced several videos, each one aimed at a different niche of customers and food, for instance, in one the customer is asked to try out a Pho and in another Sushi. In one video a woman claims to have never tried a Chili-Dog, which is a hot dog covered in chili con-carne. The grandmother that was asked to try out Sushi with her granddaughter wouldn't touch sashimi and stated that she didn't like the smell of it, but she did eat the sushi.
The live marketing feed is ingenious, and what happens is that if you are a customer and caught on cam, (with your consent of course) you are asked what you haven't yet eaten. One such lucky customer stated she had eaten everything apart from brains, but she had never eaten a Chimichanga, so she ordered one to try. The camera rolls on until the food is delivered and the customer tries out the new dish for the first time.
The new ad campaign is called" Try Something new," and it will be broadcasted over social media networks including Facebook, Instagram, YouTube and more, and also on GrubHub's website.
Here's some food for thought; Out of an annual revenue of $783 billion generated by the food industry (restaurants and fast food) $4 billion went to food delivery. This means that the market has a basic value of $4 billion, and a growth potential of over 200% since many restaurants do not yet use food delivery services.