...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
...OBSERVATION ASSIGNMENT BRIEF: Location: Whole Foods 1548 N Dale Mabry Hwy Tampa, FL 33607 Time: Tuesday, September 24, 2013 5:00pm Gender: Male Age: In early 30’s Type of car: Lincoln Coupe How dressed: Dark denim jeans, Black Raulph Lauren Polo and Sperry’s Time of Day: Tuesday, September 24, 2013 5:00pm Was the store crowded? There was slight traffic from everyone doing a bit of after work/school shopping Did the person have a list? He did not have a written list at hand but he kept looking at his smartphone. I assumed that he may had a list on his phone because he was looking at his phone majority of the time. Did the person appear to follow the list and not deviate (buy any extra items)? This young man seemed to be on a mission. He approached each aisle with confident in picking out grocery items. He did pass by the aisle with pasta and seemed unsure of exactly what pasta to pick, and chose several. Did the person appear to buy an impulse item, if yes what was it? He did pass by the bakery, and then proceeded to back track and pick a couple cookies behind the glass bakery doors. What size of items did the person buy single serving, family packs, et cetera? He bought individual servings. Did the person comparison shop items or did the person go straight to the item? He did a bit of comparison shopping. I could tell he looked at certain products to study their nutritional information. The reason I know this is what...
Words: 1324 - Pages: 6
...socioeconomic market and community members. Meal Analysis In this meal analysis, the following foods and where they are derived from in order to get to our local grocery store shelves will be discussed. The ingredients consist of broiled (frozen) salmon, rice, fresh strawberries, and Folgers black coffee. One of the locally-owned grocery stores purchases most fresh produce from local farm and business owners. Due to geographic location, some ingredients must be imported from other areas of the country. Strawberries are grown year-round at a couple of farms which are a bit further away in distance. A farm in Minonk, Illinois grows strawberries, picks, packages and loads strawberries onto shipping trucks for distribution at our local grocer. The farm which is furthest located is 381.4 miles from Albert Lea (Perhus, 2014, May 5). This is the only locally grown item from the menu listing which can be grown in this area of the country. For some local grocery stores, there are local suppliers which grow their strawberries in greenhouses and then distribute to smaller owned markets and grocery stores. These methods provide a locally owned socioeconomic way of supporting local economies. Jasmine rice, would my preferred type of long grain rice to use anytime I eat rice. Locally, jasmine rice is distributed by Riviana Foods out of Houston, Texas and is exported from Thailand by Herba Bangkok S.L. based out of Lumpini, Pathumwan, Bangkok Thailand (Riviana Foods Inc. 2014)...
Words: 1228 - Pages: 5
...Bloom is a very upscale grocery store. The focus is on satisfying customers and providing food services to the community. The store uses clear energizing and communication goals to get the employees to strive to work harder. Employees of Bloom are highly motivated and hard working. Incentives, such as pay raises and promotions are also used to maintain employee satisfaction. Although a division of the Food Lion Corporation, Bloom is a more upscale version of Food Lion. The store uses a variety of consumer-friendly technology. Self-checkout counters allow customers to scan their purchases themselves without having to wait in line for an available cashier. Many produce departments have scales featuring printers that will print a bar code for the item indicating the weight and price of the purchase. The Nature’s Place section offers a wide variety of natural and organic items. A person can also create their own six-pack of beer. To compete with other stores, Bloom also offers a huge selection of in-store services. There is a Redbox for DVD rentals, and ATM machine, as well as copy and fax machines. The Guest Services Center also offers Western Union, check cashing, lottery tickets, hunting licenses, and dry cleaning services. Gift cards, phone cards, and transit cards are available as well. Employees at Bloom appear to be friendlier than most grocery stores. When a customer enters the store, the employees say, “Welcome to Bloom, how may we assist you?” The majority of workers...
Words: 495 - Pages: 2
...Zack DeYmaz Dr. Lewis Eating Culture Food Procurement With such a wide variety of brand names and prices, going to your local grocery store can seem overwhelming with all the choices put in front of you. But what you don’t think about is, “Why am I at Kroger?” The reason is probably because that’s where my family shops or the affordable prices. In reality, economics controls what we eat according to financial status or social class. Anderson elaborates in chapter 5 of “Everyone Eats”, “Economics determines which plants or animals can be grown most cheaply, and which will sell at the best price. A plant that grows well but cannot be sold will vanish from monetized economy” (Anderson 82). There may be a wide variety of choices, but they are choices within your budget. Fresh fruits and meats come at a much higher price, which many people can’t afford. So they end up settling for food that isn’t quite as fresh or nutritious. On the other end of the spectrum, Fresh Market provides fresh higher quality goods, but at a higher price. This is where the split in social class becomes apparent. I visited both grocery stores with a different mindset other than to just buy food, and realized major differences between the two that had never occurred to me. As I walked into Kroger the first thing I noticed was how plain and uninviting the environment was. The irritating fluorescent lighting following you everywhere, along with the constant announcements over the...
Words: 254 - Pages: 2
...kitchen, have to go use the bathroom because you didn't want to go at the store, and then maybe look through the mail real quick and then the phone rings. 15 more minutes go by. Finally that raw meat makes its way into the refrigerator or freezer. For 50 minutes the raw meat was at an unsafe temperature. May not seem like that much time, especially when foods can be exposed to unsafe temperature for a cumulative of 4 hours. But those 4 hours starts when the animal slaughtered. So when you take into consideration the time it took to first process the animal, the time it took to transport the meat from its original refrigerated source to a refrigerated truck, the time it took to remove it from that truck and deliver it to the grocer and the time it took the grocer to process the product and put it out for sale and then add the time you had the meat in your possession before you put it in your refrigerator how much time has that meat not been at a safe temperature? Something to think about B. Reveal So, today I would like to talk about food safety. C. Preview I will discuss bacteria growth and diseases, ways of preventing food borne illnesses, and proper handling and preparation of food and equipment. II. Bacteria A. Kinds of Bacteria - There are four types of...
Words: 366 - Pages: 2
...EST1 – Subdomain 310.2 Task 310.2.1-05 This paper will address the areas of improvement that Company Q can implement to improve their attitude toward social responsibility. Company Q is described as a small local grocery store chain with several locations in metropolitan areas. Recently, Company Q closed a couple of it's stores that were located in higher-crime-rate neighborhoods citing a consistent loss of revenue. Additionally, Company Q does not participate in donating day-old products to local community food banks. Management explains that day-old products are instead thrown away. The explanation provided for this is that management fears that donating food may heighten their risk of losing revenue to fraud and employee theft. Lastly, it is explained that Company Q – after years of customer requests – has started to offer it's customers a very limited selection of high margin, health conscious and organic products. Scores of small and large businesses operate in metropolitan areas. Chain businesses that operate in multiple areas should target each particular customer base individually – what sells very well in one area may not sell at all in another. Because economic, cultural, and lifestyle differences exist from one neighborhood to the next, a business that focuses on it's local customer's needs will be more successful. I feel that Company Q should reconsider the closing of their stores in higher-crime-rate...
Words: 782 - Pages: 4
