Fresh Direct

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Fresh Direct / Retail Grocery Industry
Based out of Long Island City, Queens, FreshDirect was launched in July 2001, by Joseph Fedele and Jason Ackerman. It offers online grocery shopping and delivery service to over 300 zip codes in the Manhattan, Queens, Brooklyn, and surrounding areas. At the time of launch, there had been numerous other online grocery ventures that had ultimately met their demise. What made Fresh Direct unique was that it could offer grocery shoppers: “higher quality at lower prices.” It was able to do so because it had no retail location, which meant there was no rent to pay for retail space. In order to provide its customers with
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Of the three, only NetGrocer offers to deliver to all 48 states within the continental US. The other two competitors deliver not only in the New York area but also to areas in surrounding states. FreshDirect needs to expand beyond its current market base in order to stay competitive.
STRATEGY USED When FreshDirect first started, they initially just serviced within the New York City area. Under CEO Richard Braddock, FreshDirect continued to expand its services out into the suburbs of New York City. The two main target markets are the singles and families markets. Some orders could get up to $120, but with expanding their boundaries for services, family orders could go for $150 and more. Online shopping really is a convenient way for families to shop if they have busy schedules. The only downside is the more expensive delivering fee to the suburbs. As far as competition, they didn’t plan to change any of their strategy. In Bruno’s interview of Braddock, Braddock states, “when we think about customer proposition and we think of our financial model, it’s a dedicated business,” (Bruno, June 2010). Meaning that they are dedicated to their customers as much as their customers are dedicated to them. Customers know what kind of service they are getting for what they paid, and thus far have been very pleased.
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