...Martin’s Grocery Store Going Online! The Value of Convenience YOUR NAME MBA6004 Unit 4 Professor Steinhagen 11/15/2013 Table of Contents History of Martin’s………………………………………………………………...3 The Journey of Martin’s…………………………………………………………..3 The Future of 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...
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...Behaviors Involved in Online Grocery Shopping E-commerce has made life simple and innovative of individuals and groups. Price, time saving and convenience were identified as important factors which lead to certain buying behavior in online shopping. Consumer behavior of every individual is different from other depending on buying choices which is influenced by buying habits and choices that are turn tampered by psychological and social drivers that affect purchase decision process. Internet makes life simple and innovative. People are doing business online and trade has become more easy and fast due to this. Internet provides new ways to promote business. Online consumers are always seeking new products, new attractiveness and the most important thing being price compatibility with their budget. The Consumer behavior in electronics environment is critical as compared to physical world and crucial understanding can be examined if the factors that affect the purchase decisions are ignored and unambiguous. Online consumers fear the opportunity to physically examine the product which is specifically regarded as influential factor in purchase decision. Therefore, consumer behavioral pattern in online shopping can be fundamentally different from traditional environment. Consumer behavior in online shopping and in traditional shopping is very different. In online shopping he has access to see the product. Both include social, cultural, personal and psychology etc. factors but...
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...Konzum mobile application-better way of shopping Overview At the present time, where every minute counts, where everyone is running to take care of their obligations, duties, and families there is little time to spare. For lot of people buying groceries is frustrating because it takes a lot of time and energy. Some people say that what bothers them most is the line at the cash register. Unfortunately, from this it could be concluded that buying fresh food and cooking has become a luxury that few of us can have. However, what many of us are aware that, if we shorten the time when we are purchasing our groceries we will have more time for cooking healthy meals. We are now able to buy products through internet or mobile phones. This way of buying is not so much time consuming as traditional way of shopping, but some customers are thinking that online shopping is unsafe and when you order online groceries, they are not so fresh. If more people would buy through internet or mobile phones, they would have more time for their families and friends, and for all different things that are improving standard of living. They would also spend less money due to buying just what they really meant, and they would experience freshness of products. This is why I propose that instead of old way of shopping we use the new Konzum mobile application, which saves time and energy. This application is improved way for shopping online. It offers wide information about products, special offers...
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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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...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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...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 but high spending speed. A third of all trips to the supermarket result in only one or two items being purchased, with fully half of all trips consisting of five...
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...Shopping – Then And Now There is no discussion that shopping habits have changed dramatically in the past 60 years. One of the biggest differences is online shopping. Many people now enjoy shopping from their computers, without a need to drive from store to store or standing in line to check out. But what is this kind of behavior doing to the social values on which the society is built? Will the malls and stores eventually stand empty? In 1950 there was no Internet and no super stores. When people needed groceries they would go to the grocery store and when they needed toys they would go to the toy store. There were a lot more small towns then and each town would have a large number of small stores to accommodate every shopping need. Each store was managed by its owner and emphasis was put on making the store an inviting place for people to go to. Stories were often exchanged in the stores and this way everyone knew when something was going on in the town. For holidays, many stores would work together to decorate the streets and store fronts and going shopping became a treat that involved more than just shopping. A family could spend a whole day looking at decorations and exchange news with friends while taking care of their shopping needs. Malls and department stores did exist in 1950, but they were more common around bigger cities and more densely populated areas. Malls were created to move shopping districts away from downtown areas and it was not unusual for someone to...
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...can analyse strategic planning of Tesco from previous years. Porter (1985) said that business activities could be divided into two main parts，supportive activities and primary activities. The former includes firm infrastructure, human resource management, technology development and procurement. The later includes inbound logistics, operations, marketing, sales and service. Primary activities: Operation: The operation within Tesco before 8 April 2013 was in fact only had one way that products sent to local stores and customers buy it in store, however after that day, Tesco has launched its online grocery shopping service for all customers in Bangkok (Tesco2013). “With our wide product range and great service proposition we are confident that Tesco Lotus online shopping will receive an overwhelming response from customers”, said Tesco Lotus CEO John Christie. By increasing another shopping approach, increase the supply to meet demand; what's more, Tesco can achieve economic-scale in the future, which can lower the costs. Keeping the price unchanged, lower costs can get higher profit margin, which is a competitive advantage. In order to obtain more future competitive advantage, Tesco has an attempt to grow by exploring outside Britain. For...
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...Brochure More information from http://www.researchandmarkets.com/reports/466097/ UK Supermarket Analysis (2007-2010) Description: This report on “UK Supermarket Analysis (2007-2010)" gives an opportunity to the readers to navigate through the supermarket landscape in UK. Throwing light on all aspects of the supermarket industry in UK, this report provides the readers with detailed analysis of factors that are propelling the industry, plus the opportunities and challenges in the market. The report includes PEST Analysis of the industry. This report also helps the investors to identify the different consumer classes served by different supermarkets in UK. Key Findings - Online retail will emerge as an important mode of selling. - Each Supermarket in UK has its own consumer class. - Top four Supermarkets hold major market share (almost 75%) in UK. - Increasing buying power of retailer remains the major driver for the industry. Key Issues and Facts Analysed The research report also addresses the issues and facts that are critical to the success of UK retail industry in particular. - Overview of current market trends. - Profile discussion (their respective consumer class, and store formats, etc) of key players in this sector. - Analysis of various challenges and opportunities existing in the industry. - What is the market size and scope of retail in UK? - What and where are the growth prospects and issues related to the industry? - What are the factors driving growth in this sector...
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...they won’t make a lot of profit of their products but in the sales business is not how fast you expand it but how much costumers you have. Costumers will be the main priority in a business because it will help you or destroy you. The foundation of amazon was built on the ability to transform. It has proven that when opportunities arise to serve new or existing customers, it manages to adapt new businesses while extracting value on existing ones. Amazon is planning a major roll-out of an online grocery business that it has been quietly developing for years, targeting one of the largest retail sectors yet to be upended by e-commerce. It could outperform similar online grocery services by delivering orders for higher margin items like electronics at the same time. This initiative will expand amazon in many ways. By having warehouses that storage food and also have space to storage general merchandise products will be more appealing to costumers because they will know that they will have their grocery and their general products that same day. People now a day don’t like going out...
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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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...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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...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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...Specifically, this part contains the reasons and motivations for exploiting the new project, and the business case organizer. Additionally, the relevant environment conditions are described from several aspects in detail. Meanwhile, the current situation and opportunities are analyzed via SWOT model. After that a detailed description of assumption and obstacles about present condition and future projects is shown. Next, we provide two feasible options for ALDI, and we adopts several elements and methods to weigh both options. Then a constructive and enforceable recommendation and opinion is given through previous analysis. Finally, the implementation strategy of project will be identified briefly. * 1. Introduction Nowadays, online shopping in brick-and-mortar stores is a common consumer practice. Mobile devices, especially smart phones, have become a key tool for web shoppers (Turban, Volonino and R. Wood, 2012). Our business case is based on practical problem for ALDI that is the missing link to purchase goods from website and within the app. As of December 2013, ALDI was placed in the Top 3 of supermarkets in Australia in terms of market share by Roy Morgan Research’s Supermarket Currency report. Special Buys app, provided by ALDI at the App Store and Google Play, is designed to view...
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...................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web Address http://www.tescoplc.com Revenue / turnover 64,539.0 (GBP Mn) Financial Year End Employees London Ticker February 519,671 TSCO Tesco PLC © MarketLine Page 3 Tesco PLC SWOT Analysis SWOT ANALYSIS Tesco is a food and grocery retailer. The company has been building a sustainable business model over the years through diversification into new geographies and value oriented retailing....
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