Marketing Analysis : Canned Food Versus Fresh Food

According to MarketLine, the world online retail market expanded by almost 18% in 2010 and is predicted to reach close to $435 billion in sales. The market is expected to reach a 90% growth by 2015 and exceed $827 billion in sales. Listed in an article “Ecommerce Growth Statistics”, the average amount spent by each consumer is expected to rise from $1,207 per year to $1,738 per person by 2016. That is a significant increase. That shows that people prefer to shop online than going to the actual store in today’s society. Shoppers will spend on an average of $327 billion online shopping in 2016, which is about 45% from $226 billion in 2012. It is very evident that consumers will drive ecommerce into the future; especially e-retail. In just a few years, purchases online will be more profitable than ever, with others products and services available to purchase such as mobile and social allowing consumers to shop to their convenience. For retailers and

Inimitable- The online business model that Grocery Checkout currently has can be imitated by competitors. It has not yet been imitated because the competitors are waiting to see if it is truly profitable. They are also waiting to see if their customers will prefer the online rout instead of the traditional grocery-shopping trip at one of their supermarkets. The factors that limit the ability of competitors to imitate resources or capabilities like high cost, property rights, time and casual ambiguity are not there. The competitors are just giving this specific market time to see if it is in their best interest to imitate this online business model.

On the other hand, a online retail store in comparison to a retail store provide new values to their marketing system. Businesses like Scorptec offer values to their customers in different methods. The most simplistic value they offer is reduced prices of their products attracting customers. The reasoning behind reduced costs of goods is because the handling cost have reached minimal amounts in parallel to retail stores. Online retailers require only a storage warehouse to contain their products and dispatch them when they are required. This is managed by inventory control to ensure that products are available for sale when needed without overstocking on the product. The prime function of managing an online retail is that the business doesn’t require shipping products to independent intermediaries. This makes time and concentration more available on creating an improved product without the need to consistently dispatch products to outlets but simply

Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online

The definition of E-Commerce or E-Tailing is replacing the traditional relationship of buying and selling in person or the phone with the use of the Internet, Smart Phones and networking. The more people that use the Internet regularly, the more Internet commerce increases. This causes a continual loop of improvements and innovations of which businesses must be aware. Most economists see e-commerce as a market segment that leads to intensive price competition and consumers armed with greater knowledge. E-commerce has changed business models globally, and allows customers to engage in the process of shopping either online or to a destination. Brick and mortar stores do have a conundrum do you want traffic into the store, or do you want the sale based on ease of shopping and/or convenience? (Eisingerich).

The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures

The market is packed with many players. Previously Sainsbury and Tesco has been the dominating force in the UK grocery retail market. There are no real barriers that can thwart the entrance of a new player in the market. The most important aspect is the attainment of the economies of scale for the retailers. This is facilitated by the different types of suppliers in the market. However, the entrant must have sufficient knowledge to operate profitably in the UK market.

1. As a customer, what do you want from an online grocery store? How does consumers’ behaviour differ when shopping for groceries on-line vs. off-line? What are the implications of these differences on the operations of an on-line vs. off-line store?

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.

Other companies have also attempted to create online shopping for groceries. Some are thriving because of their innovative delivery methods. Some companies have failed because of the difficulty in supply and the steps including in having the customer receive the product.

The idea of the project is refreshing and target the right individual. A strength of the business is their consumers are immediately fascinated by the new business. Today’s generation are constantly updating in technology to where it becomes part of their daily life. Individuals assumed shoppers will not accept the idea of buying fresh food online without seeing and touching the item before purchasing. They also said this about online purchasing of furniture and cars, but consumers continue to purchase online. From the collected statistics from International Business Times article ‘The Future For E-Grocery: Amazon (AMZN) Fresh Retains Lead, But Startups Jump In’, “Almost 40 percent of e-grocery shoppers preferred AmazonFresh over other online food retailers”. Because of their increasing grocery business, they’re part of the competitive market between the top corporations; for an example,

Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce

The single-most commonality is the degree of intangibility is inherent in both. This comes into play with the process of trying to get customers. This includes obtaining new ones and keeping old ones.

Supermarket e-commerce stores that have altered business practice grow very fast. The popularity of online supermarket increases every year. Keynote’s study (as cited in Hand, Riley, Harris, Singh, and Rettie, 2009, p. 1205) explain that in 2006, the percentage of online supermarkets are higher approximately 35% than previous year. It could be that customers will shop online only in the future if the popularity of traditional stores go down. In addition, many supermarkets such as Walmart, Coles, and Giant are starting to build e-commerce. Online supermarket grow

Electronic client service: Big Food will provide official online service to those customers who cannot visit in personal to shop. Customers can order their products via internet and company will provide free delivery under some targeted amount as quickly as possible.