HelloFresh is a publicly-traded German meal-kit as well as food subscription company that delivers essential and important ingredients to users at their doorsteps. The originality of this organisation is that it reproduces the interest and joy of cooking food back into your life.
In this case study, we will discuss HelloFresh including its business strategy, marketing strategy, competitors, successful campaign, etc. So without any further ado, let’s start by understanding HelloFresh as a company.
HelloFresh is the leading meal-kit company in the world, founded by Dominik Richter, Thomas Griesel and Jessica Nilsson in 2011. Its headquarters are situated in Berlin, Germany.
The company expanded its base to the USA in 2012 where it quickly became the largest meal-kit provider. With operations in fourteen countries and three continents, it has grown to become the largest player in the meal-kit market globally.
As of 2020 it has delivered 600+ million meals in the year 2020 and has 11860 employees worldwide.
HelloFresh provides the customers with easy to follow recipes and fresh high-quality ingredients. The company regulates its website where it provides tips and easy healthy recipes on allotted weekdays for its subscribers.
Aim: To provide every household with wholesome, homemade meals.
Mission: To change the way people eat forever.
It has supported those who are in need by donating unsold food to charitable organisations around the world. During the Covid-19 pandemic, it donated €13 million to many organizations around the world.
Now that you know about the company, let us now understand the business strategy of HelloFresh in the coming section.
Marketing Strategy of HelloFresh
HelloFresh is a customer-centric brand. It continued to bring in new customers while its competitors floundered. The marketing strategy of HelloFresh revolves around influencer marketing and aggressive advertising strategy.
Influencer Marketing Strategy of HelloFresh
To market the brand, HelloFresh is using influencers like Mandy Moore, Taylor J Philippe, Audrina Patridge, etc to showcase its creations. With the help of social media influencers, it has been able to gain the attention of its audience. Influencers put their personal stories into the collaborations, which adds a personal element to the partnerships. The brand also asked influencers to share its hashtags like #freshfriends and #hellofreshpics and also encourage Instagram users to do the same.
The brand invests heavily in influencer marketing. By using social media influencers, it is having an advantage over its competitors.
Advertising Strategy of HelloFresh
HelloFresh spends millions every year on traditional advertising methods like magazine ads, television, online display ads, etc. It gives away coupon codes to attract customers. The use of text and banners ads on various publisher websites helps the company convey its message and create brand awareness.
We understood how it markets its products, let us now look at some successful campaigns run by HelloFresh in the coming section.
Marketing Campaigns of HelloFresh
Marketing campaigns promote products through different types of media. HelloFresh came up with amazing campaigns to promote its products. It attracted many customers through it. Let us go through some of the successful marketing campaigns by HelloFresh in this section:
HelloFresh X Mindy Kaling:
As previously said, HelloFresh uses celebrity influencers. Recently, it collaborated with actress and writer Mindy Kaling. A celebrity mom of two kids is sharing cooking skills and how to have fun while cooking. As a part of the collaboration, Mindy starred in the four-episode video series “Meals with Mindy”. Each episode featured Mindy teaching viewers about the art of cooking.
The brand works with thousands of micro-influencers to promote its products among its target audience.
Refresh with HelloFresh – A Marketing Campaign of HelloFresh
The campaign was launched in 2019. It worked with 15 micro-influencers and the celebrity face of the campaign was Davina McCall. #RefreshWithHelloFresh asked the group of influencers to participate in a 21-day campaign to try out various HelloFresh recipes.
Throughout the three-week campaign, influencers posted content on their social media platforms and provided a series of attractive photos and cooking videos. The #RefreshWithHelloFresh tag was used in combination with the content to encourage interaction with the influencer’s audience. This campaign was specifically targeted at the UK market.
We have seen some successful campaigns by the brand, now let us look at the social media presence of HelloFresh in the coming section.
Social Media Presence of HelloFresh
HelloFresh has a decent social media presence. It has its presence on almost all social media platforms, regularly updating its followers with all the happenings around the brand.
It constantly tries to reply to all the comments left by its customers and users on Twitter and Facebook so that customers can feel like their compliments, complaints, and concerns are addressed and directed to customer service if required.
On its Facebook page, status posts are published with a video or picture. Though it doesn’t post daily on this platform. It includes links to its website because most people don’t like to be spammed daily on Facebook. It replies to the comments posted by customers.
Just like its Facebook page, it maintains a very good Instagram page with pictures of its food and related stories. As previously said, it has partnered with several influencers to promote its products and has more than 500k+ followers on Instagram.
HelloFresh is using Twitter to satisfy the additional needs of the company and reach out to the customers in the most presentable way. Similar to its other social media handles, it posts different recipes, offers, and replies to the comments.
The massive online presence of HelloFresh extends across all the important social media platforms. It has used social media platforms so that it can productively market itself and grow its business as well as the following.
Let us now look take a look at its competitors in the coming section.
Competitors of HelloFresh
HelloFresh is facing tough competition in the industry. The top competitors are Blue Apron, Home Chef, DineInFresh, PeachDish & Maria. Let us look at some of them:
Blue Apron is the top competitor of HelloFresh, founded in 2012 in New York. It also operates in the Food Distributors industry. HelloFresh offers a variety of food options but in the case of Blue Apron, there are slightly fewer options. Both have been around for years & have built up a loyal fan base.
Home Chef is another top competitor of HelloFresh, founded in 2013. Its headquarters are in Chicago, Illinois. It operates in the Baked Goods, Frozen & Prepared Foods industry. Both the brands offer an extensive menu with a variety of options to choose from. Both of them use packaging that is recyclable or reusable.
HelloFresh is different from its competitors. It brings the fun of cooking into your life. It brings up to 21 delicious recipes every week. It provides flexible delivery options, customizable menus and also you have the option to skip or cancel.
Now that we have seen the tough competitors & how HelloFresh is different from them, let us now look at the SWOT Analysis of HelloFresh in the coming section.
SWOT Analysis of HelloFresh
A SWOT analysis is a model that helps a brand or a company to define its Strengths, Weaknesses, Opportunities, and Threats. Every brand has its strengths and weaknesses. Let’s have a look at the SWOT analysis of HelloFresh:
Strength of HelloFresh
- Products are offered online so there is no extra cost for the construction of outlets
- It is the market leader in Germany
- It delivered a high revenue growth rate of 111.2% in the International segment
- It provides fresh and regional food
- It has a stable financial position that is backed by potential investment from the trusted investors
Weakness of HelloFresh
- There is a lack of innovation to adapt to the latest technologies
- It relies on third parties for the supply of its ingredients
- The delivery expenses are high
Opportunities of HelloFresh
- HelloFresh sees an opportunity in expanding its add-on offerings like soups, desserts, etc in the future, which would increase its revenue & profits
- There is an opportunity for broadening the horizon of the customer meal packages preferences
- It has a record of successfully launching new geographies. Further, It plans to enter new geographies in the future
- Beyond the meal-kit category, it has the opportunity of entering the ready to eat market which will provide it with significant growth
Threats of HelloFresh
- The new entrants are having access to the distribution channels
- It faces competition from several competitors that serve the meal-kit segments
With this, the comprehensive case study on HelloFresh comes to an end. Let us summarize this study in the coming section.
HelloFresh is a good choice for people who want home-cooked meal options. It is a great option if you want to learn to cook great meals without stress. As we have seen that it has a strong social media presence as well as strong growth in its revenue has demonstrated its strength in the meal-kit industry.
It has collaborated with various influencers and celebrities by which it has attracted many customers. Though HelloFresh has been successful in providing value to the customers simultaneously achieving growth. However, there is always room for improvement and it should keep working on it.
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