Grocery Gateway

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Grocery Gateway Prepared by: Jeff Smith Grocery Gateway: Customer Delivery Operations Nature of the business: * Located in the Toronto Area, Grocery Gateway has been the largest online grocer since November 2001. They have approximately 125,000 registered consumers. These consumers shop online, picking their products from a selection of 6500 products that include dry goods, health and beauty products, alcoholic beverage, fresh produce and even frozen foods. The broad/generic industry is the food industry. The narrow product is groceries. The core product is food, the actual product is groceries delivered, and the augmented product is good customer service and convenience. Orders are to be a minimum purchase of 60$ including…show more content…
It is also a market that is relatively untapped (e-commerce groceries) while at the same time servicing a market that is always needed (people always need to eat). However, in unstable economic times, people will unlikely pay for a luxury service such as this. People with low discretionary income will go to a local grocery store and buy food on sale, instead of paying for extra delivery fees. Another cost saving benefit of ordering online is saving on ever increasing gas prices. * Social: * The largest demographic in Canada is that of the aging one. This has a wonderful impact on people who are perhaps too frail or too sick to go and get their own groceries, but still want home cooked meals. This alternative gives these types of people the freedom to continually eat fresh foods without having to go and physically get them. This system is also good for people who are time poor. People who work longs hours, have big families or who simply don’t care for the shopping experience will also utilize this method of obtaining good wholesome food. Also, many people in the Toronto area do not own a vehicle and they rely on the transits to go places, it is difficult to carry all of your groceries onto the transits and then walk them to your house. * Technological: * Grocery Gateway has five main technological systems. They have a Web-order processing system which was developed in-house. The orders are downloaded from the order system into the research in

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