Pricing strategy

The pricing strategy of Hungry uni will combine value-based pricing, competitive pricing,
penetration pricing, and tiered pricing. In addition, there are total 5 service of Hungry uni need to be
priced, Joining fee from restaurant, commissions from successful orders, Memberships fee,
advertisement fee ，and dishonor fee for canceling orders.

Joining fee from restaurant

According to market research，in the business start-up period joining fee should be free so that the
business could have competitive advantage in the market, to encourage more restaurant join the
platform, and then get more users.
After the business taking a leading position in the market, turning the value of users into cash
should be considered, at that time a reasonable market price could be charged as joining fee.

commissions
At the beginning the penetration pricing strategy will work, platform could charge about 10% which
is much less the average of the market price (20%), from each successful order as the commissions.
Then, when the platform get enough market share, the competitive pricing strategy could be
applied, the commissions could be raised to the average level but a little less than it, in order to
balance the competitive advantage and operating cost. .

memberships fee
referral to value-based pricing, it should be depend on the value of service realized by users. Given
that the motivation of users to choose Hungry uni is saving money, not costing more money. So the
memberships fee could not be too high, 15 dollars for one month is reasonable, which is much less
than that of competitors( about 50 dollars). Furthermore, users could change their points into free
memberships. Each order could get 1 point, 10 points could be changed into membership for one
month.

advertisement fee
When users open the apps， they could see the advertisement of restaurant, which pay the platform
for the promotion, for a few seconds. It is a way to cash in the user data of the platform, should be
applied in tiered pricing strategy. The platform will charge different advertisement fee, according to
different extent of exposure the restaurants would preferred.

dishonor fee for canceling orders

For the reason that, the dishonor fee is to prevent users from dishonor behaviors like canceling
orders, not for profits. So the standard of dishonor fee only should follow the industry rule, which is
5 dollar.

Promotion strategy
Campaign: having lunch together
Positioning: position the service as a solution-solve the problem which students want to ask the
food-deliver, however do not want to afford the high deliver fee.
Campaign objectives:When a business is new the objective of promotion strategy will be to inform
the target audience of its entry. Establish customer base and maintain customer retention.

Target audience:The target market of Hungry Uni is the students of university, so the target
audience of promotion strategy also is the university students. In addition, though the market
survey, the Asian students would more prefer using platform to order food deliver.

The promotion strategy of Hungry Uni will contains 2 stages:

Stage 1: Pre-Launch

Objective: using one-way and both-ways 2 different directionality, in order to achieve awareness
and attracting early users.

One-way directionality
1. Business cooperation with student society
Cooperating with some Asian student society in university, by sending the coupons and flyers to
the members of that society. Making use of the leadership of student society among students, so
that more Asian students which are also the target market could know Hungry Uni.
2. Flyers
Giving out flyers to promo the app, on libraries, student centers( union house, stop) and so on.
Both-way directionality
1. Social Media
By using the platform of Facebook, Instagram, Twitter, Youtube. etc. :
• To establish a customer base.
• To keep users interested in their organization, and even run promotions, flash sales and discounts
just for the readers of this official account.

Stage 2: Launch
Objective:to retain the existing users and attracting new ones to use the platform

1. Free try for the first time

Using the function of “virtual user” to make sure the first order of each new user will be
successful. During the first time, the platform would send a “virtual users” to share the deliver
fee, in order to let user experience the convenience of sharing deliver fee with others.

2. Seles promotion
By some offer, like “double credit”, to motivated users to forward the news of platform in users’
own friend circle, to promote the platform in the platform of Facebook, Instagram, Twitter,
Wechat. etc.

3. Offline eating-together activity

By host the social events, to maintain customer loyalty. For example, the users could have the
food ordered form the platform together in the union house.