...Peapod Online Grocery Case Analysis Abstract This paper explores Peapod Online Grocery (2008) and its possibilities for success and failure based on several types of consumer behaviors. Most analysts do not expect the online grocery business to become more popular than the 8 to 10 percent of consumers that are estimated to purchase their products online. Parkinson, one of the founders of Peapod could not disagree more. “He states that this strategy can leverage the buying power of Ahold to make higher volume, lower priced purchases, lower distribution and transportation costs” ( Peter & Olson, 2010). The types of consumers attracted to online grocery shopping are also discussed as well as why these consumers find online grocery services to be convenient. Peapod Grocery Case Analysis Peapod online grocery was founded in 1989 by brothers Andrew and Thomas Parkinson. Back in the early 1990’s, Andrew and Thomas Parkinson believed that they had a sure winner with Peapod. Dual income families with little time can go online and do their grocery shopping in a matter of minutes. Consumers can browse the aisles on their home computer and place orders online, by fax machine or by telephone. The orders are then processed at affiliating stores and delivered to homes with in a 90 minute window. Peapod has grown from a small family shopping and delivery service in Illinois to America’s leading Internet grocer. Peapod delivers to more than 23 million orders across 24...
Words: 1257 - Pages: 6
...Brief Company Background FreshDirect is an online grocery store, founded in 1999 by Joseph Fedele and Jason Ackerman, that offers shopping and delivery services to around 300 zip codes. FreshDirect is known for its convenience, fresh food, and comparatively lower prices. They prepare custom grocery and meal orders for its customers by using Just In Time manufacturing. Their goal is to differentiate themselves from their competitors by providing high quality products with great flavor. Mission Statement for the Company The current mission statement for the company is, “FreshDirect prides itself on sourcing the highest quality food and freshest ingredients available. We believe nutritious, delicious meals and convenient service allow customers more time to live healthy lives.” SWOT Analysis Strengths 1. FreshDirect is an online grocery store that offers the convenience and advantage of shopping at your home. Goods are delivered in refrigerated trucks so that they remain fresh. 2. They offer a wide range of fresh food at low prices delivered to your front door. 3. They offer custom made groceries for the customers called Just In Time manufacturing 4. They provide an efficient and cost effective service. 5. They also offer additional attractive services to their customers like farm fresh quality food, discounts on bulk purchase, chef made entrees, easy family meals, and freshly baked food. ...
Words: 1795 - Pages: 8
...making it as easy as walking in and walking out. Grocery stores date back as early as the 14th century when only bulk dry goods were sold. Shopping list were handed to a grocer behind the counter who would pick and package your items for you. That all changed in 1916 when a paradigm shift in the grocery store science occurred. Clarence Saunders opened the first Piggly Wiggly in Memphis Tennessee. This was the first self-service grocery store that allowed consumers to pick their own items and then be checked out. A lot of things have changed since the first Piggly Wiggly and the grocery store is growing more convenient every day. The grocery store of today has many modern conveniences such as digital coupons, customer loyalty cards, and even self-checkout. Many grocery stores today offer pre prepared meals for more convenience. Stores often utilize the one stop shopping mentality offering a wide variety of items from greeting cards and flowers to movies and clothing. The development of store brand goods has also helped consumers save money; in fact it is estimated to save American shoppers about $32 billion dollars annually. There are many changes coming to the grocery store in the near future. One new convenience is the use of same day delivery. The consumer places an order online and it is then packed and shipped directly to their home. A custom tailored shopping experience will be achieved in the future with the use of digital food I.Ds. These IDs will...
Words: 613 - Pages: 3
...STRATEGIC PLANNING AND IMPLEMENTATION ASSIGNMENT BY Muhammad Zeeshan Presented to Archana Karki London College Of Accountancy And Management Table of contents Introduction.....................................................................................................4 Vision Of Fresh Direct.......................................................................................4 Mission Of Fresh Direct....................................................................................4 Goals/Objectives...............................................................................................5 External Analysis of Fresh Direct..................................................................5 Marco Enviroment.............................................................................................5 Industry Analysis...............................................................................................7 Industry Life Cycle............................................................................................7 Competitors.......................................................................................................7 Critical Success Factor.....................................................................................8 Opportunities & Threats....................................................................................9 Internal Analysis.............................................................................
Words: 5301 - Pages: 22
...on the web today and get next-day delivery of the best food at the best price, exactly the way you want it, with 100 percent satisfaction guaranteed.”1 However, recently many consumers have questioned the freshness of the food delivered by FreshDirect. Since online shopping does not give the chance for customers to feel and choose the products themselves, they must rely completely on FreshDirect to select the food for them. This notion has not appealed to some customers. Operating out of its production center in Long Island City, Queens, FreshDirect offers online grocery shopping and delivery service to more than 300 zip codes in Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut. FreshDirect also offers pickup service at its Long Island City facility, as well as corporate service to selected delivery zones in Manhattan and summer delivery service to the Hamptons on Long Island. When it was launched in July 2001 by Joseph Fedele and Jason Ackerman, FreshDirect pronounced to the New York area that it was “the new way to shop for food.” This was a bold statement given that the previous decade had witnessed the demise of numerous other online grocery ventures. However, the creators of FreshDirect were confident in the success of their business because their entire operation had been designed to deliver one simple promise to grocery shoppers: “higher quality at lower prices.” While this promise...
Words: 6967 - Pages: 28
...COMPANY NAME/WEBSITE/INDUSTRY FreshDirect/ Long Island City, Queens New York/ Food delivery Industry. BACKGROUND/HISTORY FreshDirect offers online grocery shopping and delivery service to more than three hundred zip codes in New York. Additionally they offer pick up service at one location in Long Island. The idea behind this company is to give the customers the freshest food possible by buying it straight from the grower, and then delivery it the next day after the customer’s order is placed. They specialize in delivering over 3,000 items including seafood, fruits, vegetables, coffee, meats and cheeses, and items from the bakery. This company was launched by Joseph Fidele and Jason Ackerman in 2001. Jason Ackerman is the company’s current CEO. Since they are a privately owned company profit information isn’t readily available but it is estimated that the company increased revenue in 2009 by $20 million and estimated $250 million in 2010. http://www.forbes.com/2010/06/29/freshdirect-online-grocery-braddock-cmo-network-grocery.html “Ackerman says FreshDirect now does 25,000 orders per week. Many customers are attracted by the $50 worth of free food that comes with a first order; others by prices that can be 10 to 15 percent lower than neighborhood stores. FreshDirect says it retains about half the customers who try the service, and that the company began turning a profit this January. “We make money doing this. Period. The end,” Ackerman says. “We’ve got lots of money in our...
Words: 1447 - Pages: 6
...Mohammad R. Zaman BUSN 412 Prof. Auguste November 18, 2012 Cofounder and former chief executive officer Joseph Fedele was able to bring a wealth of experience in New York City’s food industry to Fresh Direct. Fresh Direct offers online grocery shopping and delivery service to more than 300 zip codes in Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut. Fresh Direct is a company that allows you to order your food online and get next day delivery, their motto is “Our Food is fresh, our customers are spoiled. Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it with 100% satisfaction guaranteed.” The primary business is to allow customers to order their food online and avoid going to a grocery store they can buy anything they want online and you can have it delivered to your house. Key players would be the people who launched the business in 2001 Joseph Fedele and Jason Ackerman. Many companies have fallen online with the grocery service and they boldly stated they were the “greatest way to shop for food” this again was a bold statement in many of these chains have fallen. Company launched in 2001 and by 2011 you had to have a order of 30$ with a delivery fee associated with it. The company started to fall apart when the competition start to raise in the industry that is when they started offering local grown and organic but...
Words: 662 - Pages: 3
...Unit 6 Assignment: Online Grocery Survey Angelina Grooms Kaplan University MT355: Marketing Research Section 01 Dr. Theodore Alex April 7, 2015 Research Problem: Based on Ashley Sim’s desire to start an online grocery site with a competitive advantage over her other successful competitors, I based my survey around the need to find that competitive advantage. My research problem for Ashley would be “What can my online grocery offer that competitors do not?” Link to survey: https://nl.surveymonkey.com/s/RX3GSNF Question Validity Explanation: 1.) What is your age? a. While our assignment suggests that a general customer profile is known to be married women who are employed full time and make above average salaries, there is no mention of the average age of these female customers. In order to understand what kind of advertising will be most effective for her customers, Ashley needs to know the average age of her customer base, as well as to build a more comprehensive customer profile. 2.) For whom do you typically buy groceries? (MULTIPLE SELECTION) b. The intended recipients of the purchased groceries, such as young children or elderly grandparents, will suggest what kinds of brands and products are desirable to customers, such as Gerber baby foods or multivitamins. 3.) In a typical month, how much do you spend on groceries? c. Based on the number of recipients defined in question two, this question will help to describe an average...
Words: 795 - Pages: 4
...What actions does FreshDirect need to take in order to keep growing and increase the online grocery market share in near and distant future? Strengths • High quality products with low prices • Good revenues coupled with low overhead due to not having the costs associated with retail locations. • FreshDirect’s state of the art warehouse with 12 separate temperature zones, ensuring each piece of food it kept at its optimal temperature. • Expert staff providing excellent customer service. • Efficient supply chain with the elimination of the middle man. • Unique industry business model. • Superior website. • 5 star food quality rating system. • Extremely high standards for cleanliness, health & safety. Weaknesses • The majority sale in perishable items with very few options for un-perishables. • Constant changes in senior management. • Limited number of brands and sizes of packaged goods. • Expensive start-up costs. • The focus on only certain New York zip codes, with no market expansion strategy. • The dependence on only one main competitive advantage in the sale of perishables. • The use of multiple non-environmentally safe cardboard boxes in the packaging of delivered foods. Opportunities • Using their reputable brand name expansion of their business to other places locally and nationally. • International expansion. • Additional movement into the delivery of a variety of un-perishable items. • Environmentally safe packaging and delivery methods. • Strategic...
Words: 706 - Pages: 3
...Toppits Foods LTD. Issues: How to increase profits of the garlic and herb cubes business * To increase productivity, promote awareness, gain loyalty * Increase distribution channels? * Lower cost supplier? * Change promotional activities? Analysis: * Garlic and herb cubes were introduced in mid 2000s * Had a lot of attention due to ease of use, convenience and freshness * Won numerous awards/superior alternative * All natural, preservative free, nut-free * This provides many benefits over competition * May let them tap into markets that others can’t * Flavour is maintained for up to 2 years * Sold in major grocery stores across Canada * Creating awareness was hard due to lack of exposure * Cubes were only marginally profitable * 4% of market share * Previously, major target market were women ages 25-54 * Home-cooked meals/healthy meals * Full-time jobs * 45% of population fell into this age group * Wanted to consider a variety of consumers * Looking for convenience, healthy alternatives * Considering to target students * Easy to use products * 18-25 years old * Limited transportation/budget * 16% of the population * Considering to target Jewish communities * Tend to support products from Israel * 1% of total population Competition * Unprepared fresh herbs and garlic cloves, dried...
Words: 303 - Pages: 2
...Smackey Dog Foods, Inc. started in the kitchen of Sarah, Kim, and Jillian’s family home in the suburbs of Chicago. The three sisters initially bought the ingredients for their natural dog food recipes from the local grocery store. They used their dogs and the neighborhood dogs as their taste testers. Their dog food products were so good, the local kennels and veterinary offices were glad to distribute the sisters' products to their customers. Local demand increased significantly. Local pet stores and small grocery stores discovered the products and became distributors. The sisters moved the expanding business into a larger facility and hired a few more workers. While their competitors’ sales were flat or declining, Smackey Dog Food, Inc.’s sales were on a vertical climb! Sales were so good last year, that the sisters opened a boutique division named Best Boy Gourmet, specializing in freshly manufactured, one-serving packages meant for consumption no later than 3 days after production. They sell this product at 3 times the cost of their other products and by special order only through their new website. Demand is high, but waste has been an issue. Sarah is the president and general manager of the operation. Sarah has been very proactive in growing the business. She has met with her banker to discuss expanding the facilities and equipment with another $150,000 loan. Their first loan for $150,000 was secured by the industrial size, food production equipment...
Words: 500 - Pages: 2
...Frequent Shopper Program Roy Gage BSA 310 November 7, 2013 Oswald Angst Kudler Fine Foods has been in business since 1998 and has since opened two more stores since. Since inception the store has been known for there fine foods and wine selection. They have been so successful that they are looking to open a frequent shopper program for each store. In the process of attempting the program, there may have been some questions that have not been answered as far as security concerns. Some of which I would like to discuss in this article. I would like to discuss security within the legal and ethical department. In the proposal on your website the program that you are attempting to create has some security holes and some things that you may not have thought of yet. From the first sentence on your website, you discuss tracking the customer purchasing behavior. This will have to be strategic on how you plan on tracking their customers. The laws are very strict on following the customer’s data and what they purchase. A consent form will have to be signed for the company to start monitoring what they are purchasing also. If the proper paperwork and research is not done before this shopper is implemented, the store could suffer huge fines and loss of customers. For a small upcoming grocery store a thousand dollar fine could be a huge hit in their bottom line and if this happens in all the grocery stores that Kudler foods owns. It could potentially put them out of business. If...
Words: 819 - Pages: 4
...you to order your food online and get next day delivery, their moto is “Our Food is fresh, our customers are spoiled….. Order on the web today and get next-day delivery of the best food at the best price, exactly the way you want it with 100% satisfaction guaranteed.” The primary business is to allow customers to order their food online and avoid going to a grocery store they can buy anything they want online and you can have it delivered to you house. Key players would be the people who launched the business in 2001 Joseph Fedele and Jason Ackerman. Many companies have fallen online with the grocery service and they boldly stated they were the “greatest way to shop for food” this again was a bold statement in many of these chains have fallen. Company launched in 2001 and by 2011 you had to have a order of 30$ with a delivery fee associated with it. The company started to fall apart when the competition start to raise in the industry that is when they started offering local grown and organic but their were some fields they just couldn’t compete with. 23–30 Borden Avenue Long Island City, New York 11101 U.S.A. Telephone: (718) 928-1000 Fax: (718) 433-0648 Web site: http://www.freshdirect.com Private Company Founded: 1999 Sales: $200 million (2005 est.) NAIC: 311991 Perishable Prepared Food Manufacturing http://www.encyclopedia.com/doc/1G2-3480000039.html SWOT ANALYSIS Strength: * Has strong financial assets * Powerful online grocery brand * Advanced...
Words: 1037 - Pages: 5
...Jennifer Kunkel COMPANY NAME/WEBSITE/INDUSTRY FreshDirect / http://www.freshdirect.com/site_access/site_access.jsp / grocery industry BACKGROUND/HISTORY FreshDirect was created in July 2001 by cofounder and former chief executive officer Joseph Fedele, who was able to bring plenty of experience in New York City’s food industry to the company. Vice Chairman and Chief Financial Officer Jason Ackerman was an investment banker with Donaldson Lufkin & Jenrette, where he specialized in supermarket mergers and acquisitions and gained him exposure into the grocery industry. Fedele and Ackerman had decided to open their own chain of fresh-food stores, but decided to pursue an option that allowed them to use online shopping and central distribution to deliver their products to consumers. The idea behind the company was to take products that you typically get from a grocery store and deliver them to the doors of their customers. After several changes to CEO, Jason Ackerman is currently holding the position. (Dess, c125) SWOT ANALYSIS Strengths * Financial backing from several private sources, with a small contribution coming from the State of New York. * Outstanding customer service. * Door to door delivery. * Warehouses have multiple temperature zones to ensure freshness of different types of food. * Refrigerated trucks. Weaknesses * Only located within a certain mile radius of Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select...
Words: 903 - Pages: 4
...Kudler Fine Foods is looking at the prospect implementing internet based product and supply purchasing into the point of sale system that is already in place at all three Kudler locations. The addition of internet based purchasing for supplies and product inventory is aimed to help reduce overhead on purchasing costs for the company, while also diversifying the availability of products presented to customers. Currently, Kudler Fine Foods uses local and regional vendors for almost all of their products available in their stores. These vendors supply Kudler Fine Foods with the necessary supply of food, grocery, and cooking items to keep the Kudler inventories and stock levels at acceptable levels of product. Using local and regional based vendors has proven to be effective, however there is little room for price negotiation on products as the vendor is the sole supplier of these set products. “When the product being purchased is fairly standard and readily available, most firms choose to utilize the competitive bidding process of supplier selection. This involves little or no negotiation”. (Reference for Business, 2012) In order to receive products from a vendor, Kudler Fine Foods must find vendors that offer products that they would consider selling in their grocery stores. Once vendors are found, these vendors will put in a bid to offer their products and services to Kudler. However, this is where it is a little bit tricky. As stated above, Kudler uses mainly local and regional...
Words: 310 - Pages: 2
