Online shopping has been around since the start of the internet. Online grocery shopping has been has been hindered by the high cost of delivery beared by consumers. Recently, Countdown launched their online supermarket in New Zealand. This was preceded by overseas supermarkets such as Tesco, Walmart, even Amazon starting online shopping for groceries.
Nowadays, online grocery shopping offers many more benefits. However, there are still some limitations.
Benefits:
Countdown is virtually in everyone is home or workplace. Instead of going to the nearest supermarket, consumers can make their grocery purchases online. This makes it highly convenient for customers. Also, when customers are making a purchasing decision they can easily order
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To mitigate this, most companies offer post-purchase money back returns on any products the consumer is not happy with.
My Shopping:
I did some research regarding online shopping before I did a trial online shop. So to ensure that my results were not influenced by prior research I also got x more people to do a shop. This gives the ability to make more accurate assumptions. All the shopping results can be found in the appendices.
Brands
Countdown’s online supermarket offers numerous challenges for major brands such as Watties, Johnson & Johnson.
A technique used extensively by major companies is product differentiation . This is evident within the toothpaste aisles. Colgate could make a toothpaste which covers everything from whitening to cavity protection. However, they create more products covering one or two aspects. This is because Colgate wants to take up maximum space on the shelves.
Customers of online shopping need to click on the menus and scroll through pages of products to find Watties products. Therefore there’s more effort involved to get a certain Watties product. Consequently, companies such as Watties will need to do more advertising about their products. Watties would be hoping to achieve not only brand recognition, but also product recognition. There for the product differentiation will not work as effectively as it does in stores.
Some brands will do significantly
Trader Joe’s may need to consider expanding their offerings. We are living in an age of marketspaces, where everything is easily accessible. There are market segments all over that might not be enough to sustain a store, but would be willing to order online.
Increase in online grocery shopping segment. As the market is heading to provide maximum consumer value by reducing time consumed for customer, online shopping or pick-up items trends got more attention from all players. Pressure from the new entrance like Amazon can change the game play.
Among the trends in grocery sales is the rise and availability of digital consumerism, particularly among the youngest generations of shoppers. According to analysts, “one-quarter of online respondents say they order grocery products online, and more than half (55%) are willing to do so in the future.”This trend is attributed to the “growth of online grocery shopping is
The online stage offers purchasers a lot of alternatives as far as items and brands. New items are presented in the business sector quick and simple making them accessible to purchasers when they are propelled. With such a colossal assortment, you will have all the opportunity to pick the best hues and sizes of the items you are after. You can likewise make correlations for the items you require from various brands to get the best and at a value you find generally
An oligopoly is a market situation (or industry) in which there are few sellers. These sellers are
By using the inventory based model this company stands out from competition amongst the other E grocery business as the customers know availability of product “online” unlike other hyperlocal models where company have to ask their local supplier for the availability of certain products. Company has also provided many options to pay for order such as pay online using debit or credit card or pay by cash / Sodexo on delivery.
A company named Goodbite has made a decision on launching a new product in the oral care market. They are interested in selling a teeth whitening strip with an advance scheme. The teeth whitening strips are small, elastic and can be adjusted to the surface of your teeth, being left in the mouth for several minutes helps on facilitating a whitening effect. The Goodbite’s product focuses on uniqueness by trying to select some attributes that might be considered as important. Its main competitive advantage focuses on product differentiation, which “deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering” (“Product Differentiation”). The company differentiates from the
The purpose of this research report is to find out whether customers are interested in an online hypermarket. To analyze this, the research is divided in three topics. The first one discusses the interest from customers to buy online. The second looks at drivers and barriers for people to buy online. Finally, the third topic investigates the different product categories that Caddyhome should include in their assortment. To analyze these topics, a market research was conducted through a face to face questionnaire and the results analyzed through a statistical program called SPSS. These results can be found in Appendix A. On the basis of these results, recommendations are given to Caddyhome regarding these topics.
However this situation often leads to active competition in the market as every product makes the same
When asked what in the opinion of respondents are the advantages of buying goods/services online, fifty-one stated that it convenience, fifty-four answered ‘accessibility’, forty-seven said that it is cheaper price, following by 38 respondents ticking ‘wider range’ and 34 ‘comparability’.
For online grocery stores initial investments are high as it requires newly developed infrastructure or upgraded operations, software’s, tools to support online market, Mobile/Tablet based applications which provide modern standard of implemented technology for buying items online, an option of real-time tracking feature and most important security features as customer can have option either to pay by card or directly cash on collection, if its card whether customer willing to pay by PayPal service or by manually entering all the details, Marketing also plays an important role in any kind of business, among other things higher operating costs matters for these kind of businesses. The investments also involves higher risks because of market uncertainties, logistics requirements, costs differ significantly across different product categories for example canned food versus fresh food. Pure online grocers find it difficult to enter in an online market on a broad scale because of high investment and start-up costs, they are most likely to operate as niche players in large metropolitan areas working with logistics and shopping partners such as Amazon to provide home delivery service in Europe, Traditional stores such as Asda in U.K take advantage of their retail outlets and pick consumer items for delivery from their existing stores.
We can allow a money back guarantee if customers are unsatisfied with our product, and this will not be too detrimental for us, since few people are generally
Taking into consideration that nowadays grocery store market is extremely highly competitive in all segments and formats (Biedronka,Carrefour, Auchan , Lidl…). One can also observe the evolution of attitudes among consumers who, encouraged by the low prices of basic products, increasingly purchased luxury goods, which only recently appeared regularly on shopping lists. French wines, Greek olives and Spanish ham are no longer rare delicacies bought only for grand occasions but products consumed regularly in many households. Accelerating e-commerce: the total value of on line sales of fast moving consumer goods in Poland is estimated to be EUR 120 million. Due to the rapid growth of this segment, this market is expected to be worth twice as much by 2018. Both the number of transactions and the average value of the basket are increasing rapidly (for Tesco, the average on line basket is already 4–5 times larger than traditional shopping). However, the availability and increasing popularity of mobile applications can pose a challenge for many companies. Not all chains—far from it—have launched on line shopping services.
Product differentiation is a promoting system that organizations utilization to recognize an item from comparative offerings available. For little organizations, an item separation procedure may give a game changer in a business sector overwhelmed by bigger organizations. The separation system the business utilizes must focus on a fragment of the business and convey the message that the item is emphatically unique in relation to all other comparative items accessible.
Quite a bit of growth for a start-up company founded only in 1997 by a bunch of classmates and rugby mates in a basement of a house. Like other online grocers, Grocery Gateway’s strategy is all about the last mile of service. Online grocers sell groceries over the Internet and deliver them directly to the door. In this sense, groceries are used to initiate the customer relationship and create a pipeline to the home. The online grocer then leverages this pipeline to introduce complimentary products to the consumer.2