Proposed Marketing Plan with Brand Journey for Airway Delivery

Assignment Taken

To Propose a Marketing Plan and Brand Journey for Airway Delivery

Case Understanding

Airway Delivery, an established courier company, is strategically expanding into the "Hyperlocal Delivery" sector, aiming to utilize drones for local delivery services. With the essential permissions secured and successful beta testing completed, this venture represents a natural extension of the company's existing B2B service portfolio as it transitions into the B2C market. The initial phase focuses on providing "Short Range Drone Based Services," recognized for their cost-effectiveness compared to "Long Range Drones." A key marketing challenge in this business endeavour is to establish a distinctive brand presence and implement innovative measures that position Airway Delivery as a market leader.

BCS Solution Summary

The 'Hyperlocal Delivery marketplace' model, synonymous with the 'on-demand' near-me delivery concept, boasts convenience and efficiency as its unique selling points (USPs) for both sellers and buyers. Operating within a localized radius of a few tens of kilometres from the business location, this model ensures heightened visibility for local sellers and swift delivery for customers from their preferred stores. Opting for drones as the delivery mode introduces potential challenges, particularly concerning safe deliveries, security issues, and the insurance of packages, all of which contribute to operational costs. From a marketing perspective, achieving 'societal acceptance' is pivotal in building the 'brand value' for these drone-based services. The proposed marketing plan aims to address these challenges and outline how Airway Delivery can establish its brand in the market and emerge as a market leader.

Solution

Approach Taken - Multi-Criteria Decision Analysis (MCDA) framework.

The decision by Airway Delivery to enter the hyper-local delivery business presents immediate challenges and opportunities. This strategic analysis and marketing plan stem from an assessment of the company's internal strengths and weaknesses, as well as external opportunities and threats. The plan primarily revolves around the company's growth strategy, proposing ways to leverage existing customer relationships and introduce new services tailored to specific customer segments.

In conducting an environmental analysis, several critical factors emerge as significant variables in this delivery service model:

1. Cost Factor (Economic Offering): Examining the economic feasibility of the service.
2. Value Addition (Fast Delivery): Emphasizing the value of prompt delivery.
3. Convenience (Buyer and Seller Perspectives): Addressing convenience for both buyers and sellers.

The initial target adopters for this delivery mode are anticipated to be in the realms of food deliveries, urgent pharmacy deliveries, or contactless deliveries—especially relevant in the context of emergencies like COVID-19 pandemic. Given the novelty of drone delivery in India, a comprehensive understanding of the marketing environment for this service necessitates further exploration into the following categories:

1. Marketing Environment

a. Target Markets

Analyzing the Marketing Environment: The marketing environment is shaped by competitive forces, socio-cultural dynamics, economic factors, and political and legal regulations, all of which significantly impact the overall landscape.

1. Competitive Forces: 
   • Airway Delivery is poised to encounter immediate competition from alternative delivery methods and industry giants such as Amazon and Walmart, both of which are exploring drone delivery through beta testing in various Indian locations. These corporate behemoths possess the potential to swiftly penetrate the market.
   • Solution: To navigate this competition, Airway Delivery should leverage its existing long-term relationships and expansive customer network, turning these assets into strategic advantages.
2. Sociocultural Forces:
   • The prevailing social concern regarding privacy invasion could be a significant challenge for the general public. Despite compliance measures outlined by DGCA in 2018, gauging the public's psychology is intricate. Acceptance of a flying object equipped with a camera is a complex criterion, with fears of property damage and privacy infringement potentially fostering immediate resistance.
   • Solution: Airway Delivery must employ an innovative marketing approach to address these concerns, creating a narrative that resonates with individuals and answers the fundamental question of "Why Choose Us?"

• • • Secure Deliveries (with Swift Precision): Why trust our delivery service?
    • Cutting-edge Flight Management Software: Our centralized cloud-based flight planner, a 25 Lacs INR investment by Airway Delivery, sets us apart in the market. The end-to-end drone operations and management system enhances safety and efficiency.
    • Highlighted Software Features (Showcased in campaigns):
    • - Real-time understanding of surroundings through onboard software.
    • - Collision management in real time.
    • - Anti-theft capabilities with multiple navigation systems.
    • - Cloud-based information on restricted airspaces, weather changes, etc.
    • - Comprehensive end customer tracking from order placement to delivery, ensuring transparency.
    • - Gentle drone landings facilitated by secure delivery with OTP assistance.
    • Advanced Drone Features: Our EV drones come equipped with backup batteries and redundant motors, ensuring operational reliability by addressing potential failures during flights.
    • Insured Deliveries: Safeguarding Your Orders and Providing Peace of Mind. To protect the value of your order, Airway Delivery partners with courier insurance providers. This coverage includes inspections and shields against loss, theft, or damage during transit.

Given the unpredictable topology and congested delivery zones in India, insurance becomes particularly critical for drone deliveries. Courier insurance companies offer tailor-made programs for last-mile delivery companies, and Airway Delivery, in a unique approach, extends this protection to customers. While this option comes at an additional cost, especially relevant for pharmacy or high-value products, it serves as a unique selling proposition (USP) for Airway Delivery, giving customers the assurance of goods security through courier insurance.

These coverage options are available at varying levels:

• Basic Coverage: Addresses liabilities in the event of accidents or damage.
•  Mid-Level Coverage with Fire and Theft Insurance: Extends basic coverage to include protection against fire and theft incidents involving the drones.
• High-Value Item Coverage: The most comprehensive level, covering basic elements, fire, theft, and the drones themselves. This becomes especially relevant in phases 3-4 of our brand image and marketing journey, assuming the launch of long-range drones after the Proof of Concept.

iii. Economic, Political, and Legal Regulatory Forces: Drones necessitate government clearance before operating for delivery services. Post-pandemic, there's a significant shift in marketing budget planning due to unexpected job losses, business closures, and public scepticism toward spending.

Solution: Airway Delivery has already secured permissions from DGCA, positioning us well within legal regulatory boundaries. The software team can spearhead the "delivery service" marketing campaign through in-app advertisements, Facebook, YouTube, and Instagram launches. The pandemic has induced a reconsideration of buying decisions, creating an opportunity for Airway Delivery drones to capitalize on the growing preference for contactless services.

Airway Delivery has successfully implemented a differentiation strategy in the hyperlocal delivery marketplace by introducing drone delivery, promoting it as an eco-friendly, time-efficient, and ideal contactless delivery mode (unique selling propositions or USPs).

Short-range drones, with a 10kg weight capacity and a 150km range on a full charge, present an opportunity for hyperlocal delivery within a few tens of kilometres. This expands the scope for Airway Delivery to tap into new target markets.

2. Organization Structure

Airway Delivery is not embarking on a business drone delivery venture without a robust foundation. Our aspiration to initiate a business drone delivery service is rooted in the establishment of a standard enterprise capable of competently challenging industry leaders. We are committed to putting in place the right structures that will support the envisioned growth for the business.

Ensuring the recruitment of qualified, honest, customer-focused individuals is a top priority for us. We seek individuals who are dedicated to assisting us in building a prosperous business that benefits all stakeholders. Furthermore, a profit-sharing plan will be extended to our senior management staff, contingent on their performance over a period of ten years or more.

3. SWOT Analysis

a. Strengths -

• Airway Delivery's drone service differentiates itself through a strategic positioning in the hyper-local delivery market. The marketing pitch emphasizes customer-oriented services, a commitment to safe deliveries, and dedicated customer support.
• The small size of the staff fosters effective communication and swift response to client needs. The software team can continually monitor marketing reports, ensuring ongoing development in campaigns and marketing strategies.
• A longstanding relationship with the B2B supplier fosters shared knowledge of service requirements, adherence to quality standards, and a unified vision throughout the delivery process.
• Significant potential for reorder business is anticipated from a satisfied customer base, with positive word-of-mouth communication expected to generate approximately 30% of new business each year.
1. Weaknesses -
   • The success of the hyperlocal delivery mode heavily depends on the flight management software of the drones. Fool proof testing of this software across diverse Indian topologies and weather conditions is critical for establishing Airway Delivery as a market leader in this domain.
2. Opportunities –
   • Airway Delivery's drone division marketing campaign can create a compelling image of fast and safe delivery without human intervention, particularly appealing in the post-pandemic era where customers are inclined towards contactless delivery options.
   • Utilizing EV drones allows Airway Delivery to highlight its commitment to reducing carbon footprint, appealing to customers who want to contribute socially to the fight against pollution.
   • The well-established B2B courier model opens opportunities for hybrid delivery services, serving as a market differentiator for Airway Delivery.
3. Threats -
   • The technology, knowledge, and equipment are controlled by a small group, consisting of 2 software development members and 4 qualified drone operators. The potential entry of new competitors becomes a significant threat with changes in critical staff.
   • A change in the management team leading to the leakage of marketing strategies may provide competitors access to Airway Delivery's business model, posing a threat to its market position.

4. Critical Issues

The drone delivery service represents a novel concept in the market, and potential customers are not fully aware of its capabilities and benefits. With several companies preparing to enter this emerging market, it becomes imperative to adopt an aggressive marketing strategy to swiftly gain market share and dissuade potential entrants. Addressing some of the key concerns associated with this innovative service is essential:

Privacy: Implementing robust privacy safeguards is crucial to instil confidence in individuals who may be uncomfortable with numerous drones hovering near their residences.

Safety: Given the relatively limited use of drones in everyday scenarios, there is currently no established safety record. As the number of drones in operation increases, particularly in densely populated urban areas, the risk of accidents rises significantly.

Environmental: The operation of flying drones has the potential to generate loud noise along their flight paths, leading to potential noise pollution issues when numerous drones are in the air. Additionally, flying at low altitudes, drones might collide with birds, posing environmental concerns that need careful consideration and management.

5. Marketing Mix

To secure market share, Airway Delivery will strategically enhance the 7Ps of marketing, aiming to augment the service's value and gain a competitive advantage early on.

Product

Service for Other Businesses: Airway Delivery aims to empower small businesses by providing a delivery service that not only brings products to customers' doorsteps but also offers these businesses a presence on the Airway Delivery app for seamless product purchases. Initially focusing on small businesses, the service will later extend to larger enterprises with existing traditional delivery services. A return service will also be introduced, allowing drone pilots to inspect products during the return process.

Service for Consumers: Customers can utilize the Airway Delivery website or app to order products from nearby businesses, benefiting from courier and return services from the comfort of their homes. Clear instructions on safely packing products will be provided to minimize human contact during delivery and return. Customers can also opt for delivery to remote locations without landmarks, facilitated by the drone pilot using the customer's mobile GPS.

Process

When a customer places an order on the app or a business utilizing Airway Delivery's services receives an order, a drone is dispatched to pick up the package from the business and deliver it to the customer. The entire process is transparent and trackable through the app/website. For courier services, the drone picks up a pre-paid and pre-weighed package from the customer and delivers it to the shipping depot. The long-range drone option offers rapid service, while the traditional method provides an economical yet slightly longer delivery time.

Price

For Other Businesses: Airway Delivery will introduce a subscription-based model for businesses using home delivery services, offering different pricing based on the number of orders and delivery time preferences. Businesses can choose to share delivery charges with customers, providing greater flexibility.

For Customers: Customers can order from the Airway Deliveries app and website, enjoying free or discounted delivery prices for businesses collaborating with Airway Delivery. For businesses not in collaboration, customers will pay the delivery charges.

Promotion

All Airway Delivery drones will have luminescent logos and adequate lighting for night deliveries, enhancing brand recall and addressing safety concerns.

For Other Businesses -

Campaign: A B2B campaign will uplift start-ups and small businesses, incorporating social media ads, physical marketing materials, and co-branded drone options.

Guerrilla Marketing: Drone holographic light shows will be used for guerrilla marketing to create curiosity and hype.

Reward System: Customers will receive coupons and discounts for ordering from businesses on the app, along with incentives for signing up new customers and businesses.

Awareness Campaign: Campaigns will highlight the benefits of battery-driven drones, emphasizing privacy and safety policies.

Research Competitions and Robotics Workshops: Annual research competitions and workshops will be organized to boost technological advantages and engage with the younger generation.

Place

To determine the initial city for drone delivery services, factors like population density, infrastructure setup cost, and population eagerness for innovation are considered. Bangalore is chosen for its high population density, tech-savvy population, aerospace industry presence, and traffic issues. Expansion plans include Hyderabad and Chennai due to similar characteristics and proximity, facilitating a completely drone-driven courier service between the three cities.

People

Targeting the working youth in Bangalore, Airway Delivery will focus on social media, digital ads, and workshops to create awareness. After establishing in Bangalore, the marketing campaign will expand to a broader audience, including the older generation through localized interfaces.

Physical Delivery

Orders are delivered in waterproof corrugated cardboard trays, minimizing impact and protecting packages. The drone features a luminous brand logo, and the delivery process includes QR code scanning for verification. Multiple deliveries can be accommodated, and customer satisfaction is ensured through immediate issue resolution and personalized thank-you messages.

6. Aligning Strengths with Opportunities and Addressing Weaknesses and Threats

• It is crucial for Airway Delivery to uphold its established management hierarchy and foster employee empowerment through the implementation of a decentralized marketing structure.
• Conducting an immediate market survey among existing customers is essential to enhance understanding of competitors and assess the feasibility of proposed features.
• A prompt topological survey is necessary to optimize machine learning software, ensuring the efficient closed-loop path tracking of drones. This optimization is vital for enhancing operational effectiveness.

7. Competitive Edge

A thorough examination of the business drone delivery sector indicates an imminent phase of growth and increased competition. Therefore, positioning a business drone delivery service company for this anticipated expansion sooner rather than later is imperative.

We are aware of the future dynamics of the business drone delivery industry and are committed to being at the forefront, not only in India but also on the global stage. Our competitive advantage stems from our robust and efficient drones, swift and secure deliveries, reasonable fees, and, notably, our extensive delivery network.

Moreover, our employees will receive excellent treatment, and their welfare packages will rank among the best in our industry. This ensures they are not only well-equipped to contribute to the growth of the business but also aligned with our set goals and objectives. Additionally, we will provide favourable working conditions and commissions to freelance sales representatives we may enlist from time to time.

8. Sales and Marketing Strategy

Revenue Streams -

Airway Delivery is poised to revolutionize package delivery using drones across India. Primarily, our sources of income will be derived from delivering medications, vaccines, and retrieving clinical samples to and from remote or otherwise challenging locations. Additionally, we will provide drone-assisted transportation services for packages, machine components, food, and other goods.

Sales Projection -

In the business of drone delivery, a well-promoted company strategically positioned, offering reliable and efficient delivery services, is bound to attract customers and drive sales, leading to increased revenue generation.

We are strategically positioned to capture the available market in and around India, and we are highly optimistic about achieving our target of generating substantial income within the first six months of operation, thereby expanding both the business and our customer base.

Having thoroughly examined the business drone delivery service sector, we have formulated the following sales forecast. These projections are based on field data and several assumptions specific to startups in India.

9. Implementation of Marketing Strategy

The marketing strategy for drone services will unfold across four distinct phases, incorporating a mix of services encompassing drones and hybrids.

Phase 1: Awareness Campaign

In this pre-launch stage for drone services, the following activities will be meticulously planned, leveraging existing testimonials from B2B customers and having secured the necessary permissions:

• Online marketing campaigns on platforms such as YouTube, Facebook, and Instagram.
• Presentation of commission-based service proposals to B2B companies, emphasizing the advertisement and customer conversion of B2B products on our apps/websites.
• Conducting a market survey to create a comprehensive customer profile.
• Profiling locations by zones to define price slabs (e.g., Zone 1 within 10 km, Zone 2 within 20 km, and so forth).

Phase 2: Trial Offers Phase

As our marketing campaigns are already in motion with partnerships established in proposed market segments, this phase involves launching services to B2C. Key activities include:

• Offering trials with short-range drones to the current customer base to gather testimonials.
• Collecting consumer behaviour data and fine-tuning delivery processes.

Phase 3: Finetuning Service Offer Mix

Having concluded the experimental phase and analysed data from real trial operations, this phase focuses on tried-and-tested offers. Key initiatives include:

• Launching mass campaign content, SEO strategies, referral programs, and paid promotions.
• Conducting customer feedback and closed-loop surveys to enhance customer retention.
• Planning the launch of long-range drones for emergency sites and remote locations.

Phase 4: Post Purchase & Repeat Success

In the final phase, as our brand gains recognition, we embark on creating the value positioning of our services. This phase involves:

• Repeating trials and fine-tuning for ongoing business development and long-term customer retention.

10. Implementation of Strategy for Pricing

At Airway Delivery, we commit to maintaining our service costs below the average market rate for all our clients. We achieve this by minimizing overhead and securing advance payments from corporate entities that consistently rely on drone deliveries for a substantial volume of packages to be distributed to their extensive customer base. Additionally, we will periodically offer special discounted rates to all our clients.

Payment Options -

Our payment approach at Airway Delivery is comprehensive, recognizing the diverse preferences of our clients while ensuring strict adherence to India's financial standards and regulations. We provide the following payment options to our clients:

• . Bank transfer
• Cash payments
• Debit cards/Point of Sale (POS) Machines
• POS machine payments
• Online bank transfers
• Check payments
• Bank draft payments

To facilitate these options, our banking details will be readily available on our website and promotional materials, allowing clients to deposit cash or make online transactions for our services.

Pilot Project Expenditure -

The startup costs for launching commercial drone delivery services are deemed moderate. Drones, being less expensive than trucks or vans, are well within the financial reach of pragmatic entrepreneurs. The primary allocation of our startup capital will focus on renting a standard warehouse and compensating professionals responsible for managing the drones. Key areas of expenditure include:

• Business registration fee – $600
• Legal expenses for licenses, permits, accounting services, software, POS machines, and other software – $3,000
• Marketing promotion for the grand opening and flyer printing – $4,000
• Hiring a business consultant – $2,500
• Insurance coverage (general liability, workers’ compensation, property-casualty) – $2,500
• Rent payment for 12 months – $115,200
• Warehouse remodelling (construction of racks and shelves) – $25,000
• Start-up expenses (stationery, phone, and utility deposits) – $4,000
• Operational costs for the first 3 months – $80,000
• Purchase of reliable commercial drones – $55,000
• Purchase and installation of CCTVs – $4,000
• Purchase of furniture and gadgets – $3,000
• Website launch – $500
• Miscellaneous expenses – $8,000

In total, we estimate the need for $307,300 to successfully establish our commercial drone delivery services business in India.

11. Raising Funds/Securing Start-up Capital for Airway Delivery

Airway Delivery is a privately owned business, wholly owned and funded by Chris Jeremy and his immediate family. The company does not intend to seek external partners, and as a result, the sourcing of start-up funding is limited to three main avenues.

Our strategy for generating start-up capital includes -

• Utilizing a portion of the start-up capital from personal savings.
• Seeking soft loans from relatives and friends.
• Applying for a loan from a financial institution.

Conclusion

In summary, the Airway Delivery Drone division is poised to establish itself as a market leader, offering a brand image centered around swift, secure, and convenient hyperlocal deliveries via drones. However, it is imperative for the management to conduct thorough customer and location profiling prior to the widespread launch of services. Once the proof of concept is solidified in phase 3, the division can confidently progress along the brand image journey. Sustaining a continuous closed-loop customer feedback and improvement process over the years will be crucial for attaining recognition as a market leader in the hyperlocal delivery sector.

Attached File Details

View Attachment file (Brand Customer Journey.pdf)