...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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...are involved in online grocery shopping? How does online shopping compare with traditional shopping in terms of behavioral effort? Ans.: The online grocery shopping consists of various types of behaviors; such as information contact, funds access, store contact, product contact and transaction behaviors. Information contact behavior is mostly a part of online grocery shopping, where consumers used to search their required products and order through online processes. The fund access behavior is also used in online grocery shopping while purchasing products through online by using their credit/debit cards or net banking. Sometime, customers used to order through online but visit the nearest stores to bring the product after inspecting; such as fresh vegetables, milk products and meat or animal proteins etc. therefore, they must search for the nearest store and product and contact them to bring those pre-ordered products. As said in this case; very rare i.e. 1-5% of people used to order or purchase products through online marketing procedure. As per the behavioral terms found in online grocery shopping, people used to go for this, only in emergency cases and when they do not have sufficient time to visit the stores and retail shops. Some of the common behaviors found in traditional and online shopping are; information contact, fund access, store contact, product contact and transaction behaviors. The other post-purchase behaviors found in traditional shopping are; consumption...
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...Thru and Online Grocery Shopping prices will be set using customer value-based pricing. We will use the buyers’ perceptions of the value they place on the convenience of online and drive-thru grocery shopping. We chose customer value based pricing because we can afford to allow the local Kroger shoppers set the price they believe they should pay for online and drive-thru grocery shopping. In addition, we will not have many variable costs in developing our product. Most of our costs will be fixed which will mean we can get a great estimate on the initial costs associated with bringing this service to market. Our fixed costs will be staffing and marketing efforts. We can put as little or as much into marketing as we deem necessary. The costs associated with marketing will not be very high; Kroger has a great online following on their mobile application and website. Any marketing we want to do can be achieved via the website and/or the mobile application. Staffing is also a fixed cost; we know that Ohio’s minimum wage is $8.10/hr. We anticipate when we bring this product to market we will have a large amount of customers who will try the service for the first time. In preparation for the launch we plan to staff at least four additional full-time customer service associates to help with the volume of orders we are expecting. We want to be competitive with other local grocery chains and pay $2.00 above minimum wage; we will pay our online/drive thru shopping customer...
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...A FINAL PROJECT REPORT ON “CONSUMER PERCEPTION TOWARDS ONLINE GROCERY STORES” SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER OF MANAGEMENT STUDIES TO UNIVERSITY OF MUMBAI BY RAINU TANVEER SINGH SPECIALIZATION: MARKETING ROLL NO. 40 Batch: 2010-2012 UNDER THE GUIDANCE OF PROF. ANNIE PILLAI Guru Nanak Institute of Management Studies and Research MATUNGA, MUMBAI – 400 019 Table of Content Chapter No. 1 2 3.1 3.1.2 3.2 3.3 3.3 3.4 4.1 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Topic Executive Summary Literature Review Industry Introduction Models of E-commerce Online Shopping In India Online Grocery Shopping Indian Players in Online Grocery Shopping Company Introduction Hypothesis Research Objectives Scope of the research Limitations Research Design and Methodology Sample Design Sampling Technique Data Collection Tool Used Questionnaire Data Analysis Page No. 03 05 10 12 14 18 20 26 27 30 30 30 31 31 31 32 33 36 55 57 58 60 7.1 7.2 8.1 9.1 Observations Recommendations Conclusion Biography Page 2 CHAPTER 1 Page 3 1.1 Executive Summary Internet and Information technology have made tremendous contributions for business transformation witnessed nowadays all over the world. This has given birth to E commerce which encompasses several pre purchase and post purchase activities leading to exchange of products or service or information over electronic systems such as the internet and the other Telecommunication networks. Analysing the competitive...
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...dreamed of moving grocery shopping online. It was welcomed by the customers but still less than 1% of those sales occur online. There is a still huge opportunity to capture the retail market through ecommerce. There were many technological advancements in the retail-industry such as same-day delivery services, specialty grocers, and meal-preparation businesses. Integration of ecommerce with the above services can drive fast growth in online groceries — much faster rate than offline. It can also have a better value proposition for users. ShopList is a mobile and application that helps user to track the groceries that have been bought and manage the grocery list easily with option of purchasing the groceries. The purchase options allow the customers to buy different groceries from different Retail stores. Through the market search we understood that the segment that is more attractive are people aged between 15 – 65, who purchases lot of groceries and also well versed with technology and online purchase. The user needs to have a smart phone to have the complete experience of the application. ShopList just need to attract 1.6M users to breakeven, which is less than the 1% of the population it is targeting. It looks like it is achievable. In the document we were still not able to explore all the revenue streams such as selling user data and preferences to interested organization. The success of the Application lies in getting more users and managing the grocery list and also creating...
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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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...consumers the facility to place their orders through the Website or Phone and Sangam Direct will home deliver the products at the appointed date and time. This project will deal with understanding their existing consumers’ preferences and behaviour while food and grocery shopping which will help them to serve its customers in a better way by making the required changes in their way of working according to the responses recorded during the study. 1.2 Objectives of study: • To understand consumer profile. • To understand consumer preferences. • To know the frequency of purchase by the customers from Sangam Direct. • To obtain customer feedback for providing better service. • To provide recommendations to the company to provide greater satisfaction to existing customers to retain them. 1.3 Scope of Study: This study will provide us information on Sangam Direct’s existing customers’ profile with respect to their psychographics, behaviour and demographics. It will also provide Sangam Direct with information which can help them retain its customers by acting as per the customer feedback and suggestions which don’t cost much. It can also be used as reference by professors and academicians who are teaching online consumer behaviour. 1.5 Significance of study This study is significant because it is going to provide with recommendations to Sangam Direct which can be used as to plan marketing strategies by the store so as to create awareness in the market, to fight competition...
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...Online Supermarkets: Emerging Strategies And Business Models In The UK Irene Yousept, Feng Li University of Newcastle upon Tyne Business School, United Kingdom Irene.Yousept@ncl.ac.uk, Feng.Li@nc,.ac.uk Abstract The Internet has facilitated the emergence of new strategies and business models in several industries. In the UK, significant changes are happening in supermarket retailing with the introduction of online shopping, especially in terms of channel development and coordination, business scope redefinition, the development of fulfilment centre model and core processes, new ways of customer value creation, and online partnerships. In fact the role of online supermarket itself has undergone some significant changes in the last few years. Based on recent empirical evidence gathered in the UK, this paper will illustrate current developments in the strategies and business models of online supermarket retailing. The main evidence has been collected through an online survey of 6 online supermarkets and in-depth case studies of two leading players. Some of the tendencies are comparable to what happened in retail banking with the introduction of Internet banking, but other tendencies are unique to the supermarket retailing industry. This is a rapidly evolving area and further studies are clearly needed. 1 Introduction The Internet has facilitated the emergence of new business models in several industries. Previous research has revealed that the integrated models of...
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...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...
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...M00373321 | Seminar tutor | Dinesh Nanayakkara | Time | Monday | 1pm to 2pm | Content 1. Introduction 3 2. Situational Analysis 4 2.1 PEST Analysis 2.2 SWOT Analysis 2.3 Current IMC Analysis 2.4 Competitors Analysis 3. Marketing Strategies 9 3.1 Marketing strategies 3.2 Target Market 3.3 Campaign Objectives 4. Campaign 11 5.1 Theme, Message and Brand Values 5.2 Promotional Tools 5.3 Campaign Budget 5.4 Schedule 5.5 Evaluation 5. Appendices 17 6. References 23 1. Introduction Lidl was founded in Germany as a grocery wholesaler in 1930. Its first shop in the UK opened in1994 and has grown to over 500 shops. This report outlines Lidl’s Integrated Marketing Communications (IMC) plan to raise brand awareness, customer satisfaction and to increase the company’s market share. It is also the start for a new era by introducing an online shopping service which is absolutely crucial to stay competitive in the UK’s grocery industry. Furthermore, by extending Lidl’s Deluxe range the company is responding to the shift in buyer behaviour where more and more middle income shoppers are going to Discounter because of the current economical situation. This report is divided to three parts. The first part shows the PEST, SWOT, Competitors analysis and an overview of Lidl’s current IMC strategy which reflect the company’s current situation. In the second...
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...Objectives 6 Marketing Strategies 7 Marketing Mix 7 Reference 8 MARKETING STRATEGY FOR SAINSBURY’S Introduction Sainsbury’s is a chain of supermarkets in the U.K. it is mainly focused on the sale of groceries. The supermarket was established in the year 1869 in Central London. It is the third largest grocery chain in the U.K after Tesco and Asda. It is indicated that Asda outdid Sainsbury’s in large after it acquired Netto. The U.K has recently registered a change in the shopping habits of the groceries consumers. Many of the consumers are now preferring online shopping and discounted chains as opposed to supermarkets. It is for this reason that this paper is going to give a report to the Board of Sainsbury’s on the marketing position that Sainsbury’s should adopt over the next three years. External Audit for Sainsbury’s A research conducted by the City analysts has predicted that Sainsbury’s is likely to register a decline in its grocery sales by 2.5% for the preceding three months. This is with the exclusion of fuel. This is going to be a big setback for Salisbury’s given that it has, for the last decade, registered only an increase in the sale of its groceries. Salisbury’s used to record all these profits until the consumers in the U.K changed their shopping habits. This was also due to the emergence of Aldi and Lidl which are discount chains. It is also noted that the prices of food fall considerably. With these changes in the markets, the big four supermarket chains...
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...needless food waste that occurs all around the world. Much of this waste can be attributed to the inefficiencies of the grocery shopping itself. For any number of reasons, shoppers purchase food in excess, or without a specific plan for how they will use a given item. A simplified example: suppose a shopper purchases a ripe tomato because it is being sold for a fair price, he enjoys tomatoes, and assumes he will use it in a dish soon. Over the course of the following week, however, the individual fails to consume the tomato. He dines out with friends, chooses to prepare meals that do not require tomatoes, or simply forgets he had purchased the tomato at all. The tomato spoils and he throws it out. He has not only misused his money, but he has disallowed the possibility for any other person consuming the tomato. Our customer feels upset at this waste. We hope to provide a solution for our customers that will reduce grocery buying inefficiencies and make our customers’ lives better. Our customer is the socially conscious grocery shopper. They are adults with middle to high income, and middle to high education level. Our product is best suited to individuals who do want to prepare food at home. Our customer is willing to change his grocery shopping habits in an effort to waste less food. The solution is Mela. Mela is a subscription service that makes the grocery buying more efficient and reducing food waste is its primary objective. Mela uses an algorithm that provides curated weekly...
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...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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...Retail 4.0: The Future of Retail Grocery in a Digital World Parag Desai Ali Potia Brian Salsberg The Future of Retail Grocery in a Digital World Introduction I f there’s one thing that always stays the same in retail, it’s change. New stores open, others go out of business. Market leaders experiment with larger or smaller store formats. They change the layout in their stores and launch new private brands on their shelves. Loyalty programs are tweaked, new offers and affinity programs designed. Supply chains become more automated and efficient, resulting in increased product availability and improvements in inventory management.But in reality there are few really big innovations in retail. Most of the change we see year after year is relatively incremental. True transformation in this sector comes along only once every few decades. And when these transformational events occur, they nearly always create new winners and leave a trail of casualties in their wake. To understand whether today’s innovations represent seismic industry shifts, it’s useful to recognize the three preceding “ages of modern retail”. This report focuses on the grocery sector, but we also draw on the best practices and experiences of leading retailers in different categories from around the world. For the purposes of this article, we’ll peg the birth of modern retailing to the 20th century and begin with what we call “Retail 1.0.” Retail 1.0: Birth...
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...22 The future of online grocery in Europe The online-grocery market is poised for growth. But only early movers will win—and only if they are adept, disciplined, and agile. Nicolò Galante, Enrique García López, and Sarah Monroe Just because Europeans aren’t buying groceries online en masse doesn’t mean they don’t want to. In fact, many of them love the idea of saving time by not having to trek to a supermarket, push a shopping cart down aisle after aisle, then wait in the checkout line. The convenience of shopping for groceries online is alluring. But convenience isn’t everything. Consumers will shop for groceries online only if the offer is right: they’re not willing to sacrifice the price, quality, and range of products that they’ve grown accustomed to in the supermarket, and they won’t put up with inconvenient delivery or pickup arrangements. To date, few European retailers have given consumers a compelling reason to switch from the neighborhood grocer to the Web. That could soon change. Based on our latest research, we believe the advent of the “click and collect” model—which allows customers to place orders online and pick them up at a store or other designated location—could entice more retailers, as well as more consumers, to the online-grocery space. Nevertheless, getting into e-commerce isn’t a trivial matter for a grocery retailer. Will the payoff be worth the investment? Our research, which included a survey of more than 4,500 European 23 consumers...
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