E Commerce : Its Impact Upon Many Industry Sectors

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MAP Project Background In recent years, e-Commerce has had a profound and irreversible impact upon many industry sectors. We’ve seen the likes of Amazon and Netflix emerge and eliminate their established competitors. This disruptive market force is now beginning to re-shape the Grocery Retail landscape, and rapid change is well underway. Although Kellogg has been working with e-Retailers for several years, their efforts have been ad hoc, lacking a clear growth strategy, resulting in underleveraged programs. In 2013, Kellogg sharpened their focus by undertaking an initiative to quantify the size and value of the opportunity, and established a clear roadmap and organizational structure. Along the way, they took note of the impact that subscription models have had upon other sectors, and how this behavior is readily transferable to the replenishment buying cycles within Grocery. Kellogg believe that a significant opportunity exists; however, the potential impact was yet to be quantified. Problem Statement and Project Scope The Kellogg Company tasked our MAP team to assess the performance of their Kashi and Special K brands on Amazon and determine the optimal growth strategy to build revenue and market share via the Subscribe and Save program. Kellogg, Amazon and industry analysts anticipate that the grocery ecommerce will grow rapidly and perhaps exponentially, in the United States, so it is imperative that Kellogg’s approach investment in ecommerce sales strategically
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