As it stands, Foodpanda Pakistan has shortlisted GroupM and Blitz Advertising as potential media agencies to take over its overall media strategy development. Adcom Zenith is the incumbent and has served Foodpanda Pakistan since 2017. The media agency won awards at Effie Pakistan 2020 for its work across Foodpanda Pakistan, P&G, and Reckitt Benckiser.
The agency that wins the media remit will work with the brand & media teams of Foodpanda Pakistan to meet a specific cost per rating point (CPRP) target which was based on a desire for media efficiency instead of media effectiveness, according to the brief.
The media agency that wins the brief will have to identify a channel mix based on audience analysis and ratings, ensure channelization of budgets based on annual deals, evaluate schedules for ratings, ensure CPRP delivery. Teams dedicated to the Foodpanda Pakistan account will be expected to share analysis of actual airing versus planned in terms of spend, CPRP, and gross rating points.
At the behest of Delivery Hero SE, the European multinational online food-delivery service that is its parent company, Foodpanda Pakistan has ramped up its vertical integration to include dark stores, HomeChefs, Pandamart, warehouse as a service (WaaS), and cloud kitchens in Pakistan. With the rise of direct to consumer experimentation by consumer goods businesses in Pakistan, along with COVID-19 forcing the hotel, restaurant, and cafe’s (HoReCa) industry to seek online paths of customer acquisition, the latest business divisions of Foodpanda Pakistan have begun to reap their rewards.
The growth brought with it terms and conditions that were reportedly unfavorable to HoReCa businesses, with Foodpanda Pakistan blacklisted for 48 hours in mid-September by The All Pakistan Restaurant Association (APRA), citing unfair practices by the online food delivery marketplace.
In Pakistan, Foodpanda competes with Careem, Bykea, Cheetay, Eat Mubarak, Supermeal, and several more delivery companies, as the HoReCa space becomes increasingly commoditized and challenger brands sacrifice margins for growth with penetration pricing. The food delivery space has few points of differentiation, with larger companies such as Foodpanda and Careem accelerating efforts to be exclusive distributors for renowned local brands.
The HomeChef initiative by Foodpanda, which locks in participants in the platform, is one such example of achieving differentiation at scale with a truly localized offering of meals.