...2.www.peapod.com 2.1 Introduction- Peapod is wholly owned subsidiary of international food provider Royal Ahold, and works in partnership with Ahold USA supermarket companies Stop & Shop, Giant Food Stores (Giant-Carlisle) and Giant Food (Giant-Landover). Founded in 1989 by Brothers Andrew and Thomas Parkinson, Peapod has grown from a small, family-run shopping and delivery service in Illinois to America's leading Internet grocer, delivering more than 23 million orders across 24 U.S. markets. As in other pure-play online and clicks-and-bricks alliances, what Peapod brings to the partnership is e-commerce and home shopping expertise, web-based software and ordering systems, web marketing and additional information technology (IT) skills. Ahold’s contributions lie in its considerable buying power, real estate, strong store brand recognition, extensive customer base and category management expertise Products Peapod features over 8,000 products in a range of categories: produce; meat and seafood; deli items; prepared foods; natural and organic foods; Kosher foods; office and school supplies; seasonal items; video products; pet items; health and beauty aids; wine, beer and spirits (in specific markets); and private labels from Stop & Shop and Giant. Markets Served * Illinois - Greater Chicago land * Wisconsin - Milwaukee, Kenosha, Racine, Madison * Indiana - Portions of Lake County in Northwest Indiana * Maryland * District of Columbia * Virginia...
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...Peapod Tina Phillips Rasmussen College Peapod Peapod, LLC is an online grocery delivery service. Peapod was founded by Andrew and Thomas Parkinson in 1989 as a lifestyle solution for busy families. In 1990, Peapod partnered with Jewel Food Stores to fulfill orders. In the beginning, Andrew, Thomas and their families did the shopping and packing and made deliveries with their own cars. (“Our company”) They joined the internet in 1996 when they created and launched their own website, www.peapod.com, they also made the Inc. 500 list of fastest growing privately held US companies. Peapod was associated with Jewel until 1999 when it opened a facility in Niles, Illinois, and started picking orders from there. Using their own picking center helped them control inventory and product quality. (“Our company”) In 2000, Peapod became a wholly-owned subsidiary of Royal Ahold, the international food provider based in The Netherlands, and pursued exclusive relationships with Ahold USA grocers, Stop & Shop and Giant Foods. Peapod was grown slowly and wisely by leveraging partnerships with other established companies. In mid-2001, when competitors like Webvan were going out of business, Royal Ahold purchased the remaining outstanding shares of Peapod, making Peapod the leader in the online grocery space. Since Peapod joined forces with Ahold they now serve more than 355,000 customers each year. (“Our company”) Peapod operates under a centralized distribution model with...
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...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...
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...Survey data analysis: We conducted an online survey and had 121 respondents from different US cities. Most of them did not use Peapod for their grocery shopping (Appendix A) * Attributes important for choosing Grocery Items: From our findings, we could find that most of the people cared about past experience at the store and price for choosing their grocery stores (Appendix B). Also the other major factors were nutritional information and looks of the items. Therefore, making the grocery experiences better and optimizing prices for the consumers could play an important role in the improvement of retention rate. Surprisingly people did not care about novelty aspect that usually is one of criteria’s to go for grocery shopping. * Attributes to choose the grocery destination: In order to segment the customers who might have different preferences for choosing the grocery destination, we did a cluster analysis (Appendix C) to perform the segmentation, but there was not much difference between the clusters and almost all of them across the three clusters chose – proximity, prices and quality as the important criteria. The good news for Peapod is that consumers do not care about touch and new products discovery while choosing their shopping destination. We also segmented customers into three categories – Non-peapod users, Peapod users and users who stopped using it to see if there are any differences in the preferences they might have (Appendix Heat-map)...
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...Point of View by Jia Chen Peapod: The e-version of shopper marketing Overview In Sorensen’s “Inside the Mind of the Shopper” book, I explored some of the key features from the shopper purchase behavior, the quick trip, three moments of truth for the shopper, in-store “migration” patterns, and how to put products in the path of customers through anticipatory retailing. I also looked at how manufacturers and retailers could collaborate better in shaping flow and adjacency to sell more products in stores. With the development of new digital technology, the penetration of the online browsing, and the conveniences to compare products, more and more customers begin to choose to do the grocery shopping by click-through internet on their personal computers or smartphones. Peapod is one of the online retailer that allows us to study the click-click-click shopper behavior resemblance to what we studied on the physical store. Founded in 1989 by brothers Andrew and Thomas Parkinson, Peapod has grown from a small family-run shopping and delivery service in Illinois to America's leading Internet grocer, delivering more than 23 million orders across 24 U.S. markets. Sorensen’s key concepts application 1. Shopper kinds In Sorensen’s book, we has learned about the three kinds of shoppers: Quick trips-These shoppers spend a short time in a small area, with a relatively slow walking speed...
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...1. How could a grocery store use inventory to increase the responsiveness of the company’s supply chain? The logistical driver of inventory encompasses all raw materials, work in process, and finished goods within a supply chain. A grocery store can be more responsive if it offers a broader variety. A grocery store should use products that can last for a significant amount of time and does not hold a high demand in its current time. 2. How could an auto manufacturer use transportation to increase the efficiency of its supply chain? An auto manufacturer could pick either a quick transportation with a high cost or a slow transportation with a lower cost by knowing the reorder level of each raw material you are ordering you can increase your efficiency to your customers. 3. How could a bicycle manufacturer increase responsiveness through its facilities? Locating a facility close to the market will increase responsiveness at the cost of decreased economies of scale that might be achieved with a centralized location. A facility that is under capacity will be less responsive than a facility that is appropriately sized or has excess capacity. 4. How could an industrial supplies distributor use information to increase its responsiveness? Accurate information can improve responsiveness by helping an industrial supplier better to match supply and demand. Information that is gathered further down the supply chain can be transmitted instantaneously and accurately...
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...Case 19: FreshDirect Is It Really Fresh?* With a bold promise on its website entry page, FreshDirect claimed, “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 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...
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...Case 1: Cub Foods In 2003, Cub Foods had 78 corporate and 30 franchised stores. The chain built its success by focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and sheer size encourage shoppers to spend...
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...What behaviors are involved in online grocery shopping? How does online grocery shopping compare with traditional shopping in terms of behavioral effort? There are several behaviors involved in online grocery shopping. For peapod grocery, the order were filled at affiliated stores and delivered to the customer’s home in a ninety minute time period; this save the customers time and reduced the stress that grocery shopping often causes due to lack of time and overcrowding. For these conveniences, the consumers were willing to pay a monthly fee as well as a fee per order that included the services of packaging, transporting, and delivering. Most of the items available for this service are brand name goods, which caused little risk in the consumers mind in purchasing their products and their goods ending up not being quality. Even produce and meat are able to be ordered without much concern. Online grocery shopping has many advantages over traditional grocery shopping, but there are a few downsides to the online experience as well, in terms of behavioral effort. The convenience of online grocery shopping cannot be beat. It is a no pressure experience and ultimately saves the average female consumer four hours per week and the average man two (Krantz-Kent, 2009). Additionally, there is no question about prices of goods. The prices on the site are clearly marked and are consistent. There is no driving to the store and looking for a parking spot, which saves gas and frustration...
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...Note: Solve any 4 Case Studies Case 1: Cub Foods In 2003, Cub Foods had 78 corporate and 30 franchised stores. The chain built its success by focusing on its primary market: families of four or five individuals with adults ages 24 to early 40s who are informed. Value-conscious consumers – consumers like Leslie Wells. Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, Illinois, was no ordinary trip to the grocery store. “You go crazy,” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples, and discounts as high as 30 percent, Wells spent $76 on groceries - $36 more than she had planned. Wells fell prey to what a Cub executive calls “the wow factor”. A shopping frenzy brought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get. Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase services, or, in some cases go out of business. With Cub and other super warehouse stores springing up across the country, shopping habits are changing too. Some shoppers must drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof, and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing, and...
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...Grocery Shopping…………………………………………………5 Strategy Recommendation………………………………………………………...6 Conclusion………………………………………………………………………….8 References…………………………………………………………………………. 9 Many industries in the United States are expected to utilize the web to expedite services and to meet the demands of customers. Grocery shopping is one of the most popular industries that are expected to change by offering online shopping and home delivery services. There are many benefits to online grocery shopping which include accessibility, consuming healthier produce, and convenience. Online grocery shopping is estimated to grow by 9.5 percent annually and is on track to become a $9.4 billion industry by 2017 (usnews.com). Amazon, Costco, Google, and Peapod have already invested millions in the infrastructure of their online grocery business. However, Martin’s grocery store has chosen not to follow the business model of offering customers online ordering and delivery services. The grocery legend believes customers would rather have a “hands on” shopping experience that includes friendly cashiers, attractive store displays, and helpful baggers. Martin’s must change their business model to offer customers local produce by online ordering and delivery services. Without these improvements, Martin’s will lose customers, revenue and the interest of investors. The Journey of Martin’s In 1932, David Javitch opened his first grocery store and named it Giant. This store was located in Lewistown...
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...[pic] Xaviers Institute of Business Management Studies SUPPLY CHAIN MANAGEMENT Maximum Marks: 100 Note: (i) Section A has six questions. Each carrying 15 marks each. Attempt any four. (ii) Section B is compulsory and carries 40 marks. SECTION A 1. What is Physical Distribution Management (PDM)? Why is PDM considered to be a critical area of overall supply chain management? Discuss the system or 'total' approach to PDM in detail. 2- Define SCM integration and discuss the four stages of Steven's model of supply chain integration. Also, describe the strategies involved in SCM integration. 3. "Many innovations on technology-based approaches are well-suited to the enhancement of the effectiveness of Supply Chain Management"-Justify the statement by giving few applications of information technology in SCM. 4. What is Customer Profitability Analysis? Why has it gained importance in the recent times? Is it ethical to deny a customer who is not profitable? 5. Why is the location of warehouse important for the SCM? Discuss some methods for determining the location of the warehouse 6. What are the essential differences in the Supply Chain Management of Products vs. Services? Discuss the application of Supply Chain Management principles in Financial Services. SECTION B 7. Read the following case and answer the questions given at the end. Kozmo, the online convenience store to shut down New York-based Kozmo, the 3-year-old company announced that it would stop delivery...
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...TABLE OF CONTENT TASK ONE: STRATEGIC ANALYSIS 1. Introduction of the company…………………………………………………………...pg 2 2. Vision Statement……………………………………………………………………….pg 4 3. Mission Statement……………………………………………………………………..pg 4 4. External evaluation Matrix…………………………………………………………….pg 5 5. Internal Evaluation Matrix……………………………………………………………..pg 6 6. SWOT Analysis………………………………………………………………………pg 7 TASK TWO: STRATEGIC CHOICE 7. Porters Generic Strategies……………………………………………………………...pg 8 8. Strategic Clock………………………………………………………………….……pg 10 9. Ansoff’s matrix guideline……………………………………………………..…….pg 11 10. Evaluation of Strategies………………………………………………………….…pg 11 11. Strategy Selection option……………………………………………………………..pg 12 12. Competitive Profile Matrix…………………………………………………………...pg 12 TASK THREE: STRATEGIC IMPLEMENTATION 13. Present Analysis………………………………………………………………………pg 13 14. Future Implementation………………………………………………………………..pg 14 15. Strategic Evaluation Framework……………………………………………………...pg 14 TASK ONE: STRATEGIC ANALYSIS 1. INTRODUCTION OF THE ORGANISATION FreshDirect is online grocers that delivers to residences and offices in the New York City metropolitan area. FreshDirect also offers next day delivery to the majority of Manhattan and parts of Brooklyn, Queens, The Bronx, Staten Island, Nassau County, Westchester County, Hoboken, New Jersey and Jersey City, New Jersey. The corporation was founded by Joe Fedele and Jason Ackerman, a former...
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...Date: October 27, 2011 Student Name: Instruction Name: Professor James Young Course/Class: BUS100096VA016-1118-001 Assignment #1: Urban Outfitters Continuing Case Study Part 2: Creating a Business 1. Setting up a business can be a very challenging job. Having a beautiful dream thinking about the business while sitting in your nice office with all the amenities is not enough. It is great to have an idea, but you have to make that idea work. There are lots of challenges that face their owners when setting up a business. It could take years for a business to produce enough profits for the owners to be able to enjoy. Most businesses start small and in time, with experience, goodwill, and success, they can grow into bigger businesses. Here are three challenges that new business face: ➢ Idea/Concept: Many entrepreneurs face risks to create their own business because they do not have the right idea or concept. Sometime ideas and concepts are good but if customers will not buy what they are offering, the business will fail. Richard Hayne and his wife Judy along with an old college roommate, Scott Belair had a great idea. They wanted to open a small shop filled with unique objects that they could sell. The basically sold used second hand clothes, bohemian knickknacks, and “found objects”. Their customers would come for the unique “found objects” and were willing to pay what they were being sold for. Entrepreneurs- people...
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...THE STATE UNIVERSITY OF NEW YORK At NEW PALTZ “Great Food. Low Prices. Friendly Service.” STRATEGIC MARKETING PLAN GROUP 5: DUYGU KAYACIOGLU JENNIFER CASTILLO ANNA TRUONG-CHAU SCARLETT PANEPINTO ABDON WADE DR. RUSSELL ZWANKA BUS 429-01 Marketing Strategy Monday, November 16, 2015 Table of Contents ● Executive Summary………………………………………………………… 2 ● Stop & Shop Description…………………………………………………… 3 ○ Overview, History and Successes of Company ● Stop & Shop Strategic Plan and Focus………………………………….. 4 ○ Mission/Vision ○ Financial and Nonfinancial Goals ○ Core Competencies and Sustainable Competitive Advantage ● Situational Analysis………………………………………………………….. 6 ○ Microenvironment ○ Macroenvironment ○ SWOT Analysis (Macro and Microenvironment Factors).... ● Market-Product Focus……………………………………………………… 10 ○ Growth Strategies ○ Target Markets ● Marketing Program Strategy and Tactics……………………………….. 12 ○ 4 Elements of Marketing Mix Strategy...
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