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Case: Personal Healthy Catering Service
It is healthy and tasty

1
Company Profile
Name: GoCat A.S.
Business: Personal healthy catering services
Year: 2006
Location: HQ in İstanbul, many regional offices, kitchens
and distribution channels.
Services : Subscriptions monthly, annually. Special day
services, special diet menus based on health conditions
for patients; diabetes, high blood pressure, ophes .
Employees: 150 in HQ, total of 500 others
Customers: 1.1 million
EBITTA: 190 million TRY
2
Issue
CASE: Healthy Catering Service
Situation analysis
 There is a economic crisis/recession (2008-2010) going on for the last few

months and affects all companies and working people badly. Families and
companies try to cut costs even more.
 Churn rate is increasing for the last few months
 It seems that recession will last more than one year

Business Objective
 Prevent customer churn (churn rate is %8), drop churn rate below %3.
 Acquire new customers, over %35 increase in customers

Core Consumer Question


How many people/families gave up ordering from outside or go to restaurants and
what they expect from a catering service to use it?

3
Information

What relavant information do we have to address this issue?

CASE: Healthy Catering Service

Sources of information
 Secondary Data
 Deloitte, REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
TURKISH FOOD & BEVERAGE INDUSTRY REPORT
 Deliotte, Annual Turkish, M&A Review 2012
 AMPD Perakende Endeksi Nisan 2012
 Primary Data
 Quantative
 Market Research (in top 20 cities)
 Customer Satisfaction Survey 5000 people in top 20 cities during
service delivery.
 Face-to-face Surveys,
 CATI, Telephone Surveys,
 Mail Surveys
 Qualitative
 Focus groups; total of 150 indiviguals and 100 families with children in top 5
4
cities.
Information

What relavant information do we have to address this issue?

CASE: Healthy Catering Service



Secondary Data


Figures were very good for the food sector before recession. Getting better slowly..

5
Information

What relavant information do we have to address this issue?

CASE: Healthy Catering Service

From qualitative & quantitative researches :










Number of people ordering outside or going to restaurants is dropped;
drop-rate is around %45
%55 of people who stills orders outside or going to restaurants does it
once a month.
They think it is cheaper when they cook their own meal (because they eat
less and unhealthy)

Consumers generally prefer the cheapest product, catering service is not
cheap.
Consumers believe catering service provides better food and it is good for
their health
Customers like the comfort catering service provided
Customers like catering service and they want to continue if they can
afford
6
Insight

What is the penerating discovery from this information?

CASE: Healthy Catering Service

The insights



Customers are happy with catering service but they find catering service
expensive. Price should be competitive.
Customer like free time catering service provided, focus on that emphasize
how comfort and life quality catering service provided

Why is the insight relevant to the Brand or Issue?



Consumer will prefer catering service if it is an economical alternative
Churn rate due to service quality or dissatisfaction is expected to be low if
there is no recession.

7
Implication

What potential strategies, plans and benefits can be
identified as a result of the insight?

CASE: Healthy Catering Service

What proposition would address best the business
objectives?





Make service even more economical with discount campaigns and longer
installment plans.
Keep quality of service at highest level even if it means low profit, avoid
dissatisfaction and customer churn,
Make your customers believe catering service is better and cheaper than
other alternatives.

“YOUR HEALHT IS PRICELESS”

8
Implementation

How is / has been the plans executed
in the marketplace?

CASE: Healthy Catering Service
Execution (planned/implemented)



Advertising campaigns for new discounted priceses and installment plans
with cheaper menu options. Use web (pages about healthy and organic
food) and magazines for working women.
Increase awareness about how it is important to get high quality nutrition
to be healthy.

CHEAPER THAN EVER
How is this execution true to the insight?

New discounted prices and installment plans will make catering service
an economical alternative.

Increasing the awareness will make consumers understand that cheap
food can be unhealthy and how important it is to eat healthy.

Awareness will help to avoid churns
Performance review (post implementation)

Customer churn rate is dropped to %2 (was %8)

%39 growth, new subscriptions with new price and installment plans.

Customers satisfaction level is increased to %95.
9
10

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5i project personal catering_service

  • 1. Case: Personal Healthy Catering Service It is healthy and tasty 1
  • 2. Company Profile Name: GoCat A.S. Business: Personal healthy catering services Year: 2006 Location: HQ in İstanbul, many regional offices, kitchens and distribution channels. Services : Subscriptions monthly, annually. Special day services, special diet menus based on health conditions for patients; diabetes, high blood pressure, ophes . Employees: 150 in HQ, total of 500 others Customers: 1.1 million EBITTA: 190 million TRY 2
  • 3. Issue CASE: Healthy Catering Service Situation analysis  There is a economic crisis/recession (2008-2010) going on for the last few months and affects all companies and working people badly. Families and companies try to cut costs even more.  Churn rate is increasing for the last few months  It seems that recession will last more than one year Business Objective  Prevent customer churn (churn rate is %8), drop churn rate below %3.  Acquire new customers, over %35 increase in customers Core Consumer Question  How many people/families gave up ordering from outside or go to restaurants and what they expect from a catering service to use it? 3
  • 4. Information What relavant information do we have to address this issue? CASE: Healthy Catering Service Sources of information  Secondary Data  Deloitte, REPUBLIC OF TURKEY PRIME MINISTRY Investment Support and Promotion Agency of Turkey TURKISH FOOD & BEVERAGE INDUSTRY REPORT  Deliotte, Annual Turkish, M&A Review 2012  AMPD Perakende Endeksi Nisan 2012  Primary Data  Quantative  Market Research (in top 20 cities)  Customer Satisfaction Survey 5000 people in top 20 cities during service delivery.  Face-to-face Surveys,  CATI, Telephone Surveys,  Mail Surveys  Qualitative  Focus groups; total of 150 indiviguals and 100 families with children in top 5 4 cities.
  • 5. Information What relavant information do we have to address this issue? CASE: Healthy Catering Service  Secondary Data  Figures were very good for the food sector before recession. Getting better slowly.. 5
  • 6. Information What relavant information do we have to address this issue? CASE: Healthy Catering Service From qualitative & quantitative researches :        Number of people ordering outside or going to restaurants is dropped; drop-rate is around %45 %55 of people who stills orders outside or going to restaurants does it once a month. They think it is cheaper when they cook their own meal (because they eat less and unhealthy) Consumers generally prefer the cheapest product, catering service is not cheap. Consumers believe catering service provides better food and it is good for their health Customers like the comfort catering service provided Customers like catering service and they want to continue if they can afford 6
  • 7. Insight What is the penerating discovery from this information? CASE: Healthy Catering Service The insights   Customers are happy with catering service but they find catering service expensive. Price should be competitive. Customer like free time catering service provided, focus on that emphasize how comfort and life quality catering service provided Why is the insight relevant to the Brand or Issue?   Consumer will prefer catering service if it is an economical alternative Churn rate due to service quality or dissatisfaction is expected to be low if there is no recession. 7
  • 8. Implication What potential strategies, plans and benefits can be identified as a result of the insight? CASE: Healthy Catering Service What proposition would address best the business objectives?    Make service even more economical with discount campaigns and longer installment plans. Keep quality of service at highest level even if it means low profit, avoid dissatisfaction and customer churn, Make your customers believe catering service is better and cheaper than other alternatives. “YOUR HEALHT IS PRICELESS” 8
  • 9. Implementation How is / has been the plans executed in the marketplace? CASE: Healthy Catering Service Execution (planned/implemented)   Advertising campaigns for new discounted priceses and installment plans with cheaper menu options. Use web (pages about healthy and organic food) and magazines for working women. Increase awareness about how it is important to get high quality nutrition to be healthy. CHEAPER THAN EVER How is this execution true to the insight?  New discounted prices and installment plans will make catering service an economical alternative.  Increasing the awareness will make consumers understand that cheap food can be unhealthy and how important it is to eat healthy.  Awareness will help to avoid churns Performance review (post implementation)  Customer churn rate is dropped to %2 (was %8)  %39 growth, new subscriptions with new price and installment plans.  Customers satisfaction level is increased to %95. 9
  • 10. 10