Market Research Sustainable Food Delivery Service

Leonardo Gonzalez

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Market Researcher

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Microsoft Excel

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Introduction

A couple of college students with a computer science and engineering background came up with an idea for a food delivery service, similar to Uber or DoorDash, but with a focus on sustainability. They wanted to prioritize eco-friendly delivery methods and partner with shops that follow environmentally friendly practices. To see if there was actually a market for this kind of service, they reached out to a team I was part of to help explore the idea.
The project began with an exploratory phase aimed at understanding potential market interest. To achieve this, our team designed and conducted a targeted survey to gauge consumer openness and preferences regarding a sustainable food delivery service. The survey results revealed two primary consumer clusters: one group highly motivated by the sustainability and environmental focus, and another group that was open to the idea but placed a higher priority on service quality.
Building on these insights, we conducted a conjoint analysis study to dive deeper into consumer preferences and identify the features most valued by potential users. This analysis enabled us to pinpoint key attributes that would drive adoption, such as low delivery costs and timely service. Using these findings, we developed market simulations to explore various scenarios and evaluate how the proposed service might perform relative to existing competitors.
Ultimately, our team delivered a comprehensive analysis of the product's potential. We provided strategic recommendations to help the students capture the largest possible market share while maintaining a strong emphasis on sustainability. Our insights helped refine their approach, guiding key decisions and positioning their service for success.
Attached is a brief overview of the first survey’s cluster analysis and the proposed next steps.

Cluster Analysis

Our preliminary factor analysis revealed the presence of two key factors. Building on this, we conducted a more detailed factor analysis to identify which two factors were most important to respondents.
Showcases the Importance of Each Survey Question on the Two Chosen Factors.
Showcases the Importance of Each Survey Question on the Two Chosen Factors.

Factor 1: High consideration for sustainability.

Factor 2: Focused on app performance (i.e., user friendliness, pricing, etc.)

After identifying the two most important factors for respondents, we created a dendrogram to estimate the number of potential clusters within our data. The results revealed that most respondents grouped into two distinct clusters.
Dendrogram Highlighting the Appropriate Number of Clusters
Dendrogram Highlighting the Appropriate Number of Clusters
Using a K-means clustering analysis, we identified how the two groups were divided. Cluster 1 showed a strong consideration for sustainability but had relatively neutral opinions on app performance. In contrast, Cluster 2 was primarily focused on app performance, with less interest in the sustainability aspect. However, their emphasis on app performance was not as pronounced as Cluster 1’s focus on sustainability.
K-Means Cluster Analysis
K-Means Cluster Analysis
With this in mind, we named each cluster:

Cluster 1: The Environmentally Driven (Environmentally Conscious Group)

Cluster 2: Quality First Collective (Accessibility/User-friendliness)

Based on our data, approximately 40% of respondents fell into the 'Environmentally Driven' group, while 60% were part of the 'Quality First Collective.

Next Steps

After conducting the survey, we identified several key findings that align with our app’s purpose. Notably, there was a high usage of food delivery apps combined with a widespread interest in sustainability. We also observed a correlation between these two factors: individuals who frequently order food expressed a desire for more sustainable and eco-friendly options.
While these initial results were promising, they highlighted the need for further data collection. Specifically, we require a larger sample size and additional questions to better understand the preferences of our potential customer base. Key areas to explore include how much customers are willing to pay for sustainable options, the extent to which they would compromise convenience for sustainability, and whether a market exists given the challenges of sourcing exclusively from sustainable suppliers.
Overall, this preliminary survey was a success, revealing clear connections between our sustainability goals and the public’s growing interest in environmentally conscious solutions.
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Posted Jan 5, 2025

We conducted a conjoint analysis to identify features like low costs and timely delivery, followed by market simulations to evaluate viability.

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Data Visualizer

Market Researcher

Data Analyst

G Suite

Microsoft Excel

R

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