Too Good to Go’s microenvironment consists of the company, business partners, customers, competitors, and public organizations. Its business partners include restaurants, grocery stores, and bakeries. The customers are individuals who download the company’s app and aim to reduce food wastage. The main competitors in Europe are OLIO, Karma, and NoWaste. One public organization that may influence the company’s operations is the European Commission, which develops various initiatives to prevent food wastage.
In the company’s macroenvironment, the trend for environmental sustainability and cultural forces play an important role. While the company contributes to environmental sustainability by reducing food waste, the company still needs to address concerns about food packaging and energy efficiency. In terms of cultural forces, consumers have begun to consider sustainability during purchase decisions, which is a favorable condition for Too Good to Go’s business.
SWOT Analysis
SWOT analysis is used to measure the strengths of a company while matching them to opportunities in the market. Further, it eliminates weaknesses as well as minimizes the threats hindering its operation. Too Good to Go’s main strength is the vision of a world without food wastage. In addition, it has a strong network of 1289 waste warriors who are working across 17 countries. However, the company relies on an app that can at times malfunction due to the network or bad weather; thus, this is a weakness. The firm’s opportunity is a need for reducing food waste in new other countries across the world. The company’s being a start-up can be considered a threat because it will require many resources for expansion.
Segmentation
It is proposed that consumers in the food waste reduction industry should be divided into segments based on their psychographic characteristics. The segments may include proactive, hesitant, and uninterested consumers. The company should target the first two segments as they have the highest potential to use the company’s services. In order to make offerings more specifically targeted to a particular group, the company can also consider local segmentation. This way, it will be able to provide customers with offers from the restaurants, bakeries, and grocery stores located in close proximity to them.
Positioning
Currently, Too Good to Go’s positioning is similar to that of Karma since both companies motivate their customers to reduce food waste by enjoying delicious food from restaurants and cafes. In order to differentiate itself from the competitors, Too Good to Go should identify customers’ needs in this field and craft its selling proposition accordingly. For example, from app reviews, one may notice that customers value a seamless experience. The company may identify what users mean under this expression and whether it has the resources to provide such an experience to its customers.
Market Research
Quantitative research using an online survey is proposed to investigate the European market and identify customer segments potentially interested in the company’s services. The research will aim to validate the hypothesis that the European market consists of proactive, hesitant, and uninterested consumers. The survey should contain questions about customers’ demographic, psychographic, and behavioral characteristics. The data from the survey will be used to create a consumer profile for each segment, which will be further used for developing marketing promotions.
Recommendations
To realize its expansion, the company should undertake the following steps. First, the company should start by segmenting its potential customers. The company should conduct research to validate the hypothesis about the three market segments. If the hypothesis is validated, the company should create consumer profiles for each segment and develop marketing promotions for interested or hesitant individuals. Second, the company can undertake qualitative research to discover factors motivating European consumers to use food waste reduction services and learn their language. As a result of this research, the company will be able to differentiate from competitors using customers’ language and values. Third, the firm can consider approaching global chains such as KFC and McDonalds for partnership, thus creating more revenues. Fourth, it can include inbuilt exploration features, such as local recipes and ingredients, in the app to attract more clients.