[Name of the Writer]

[Name of the Institution]

[Subject]

[Date]

Marketing Competitive Analysis for Online Grocery Industry

Introduction

The internet is vast and everything and anything is accessible to anyone through it. It has become easier for customers to buy products and services via the internet. Technology has a major role in this paradigm shift in the retail industry. The advancement in technology has allowed businesses to cut cost and increase sales, while at the same time provide the best customer service and eventually have a delighted customer. The online medium of shopping has had positive effects on the economy as the services has become more efficient and there is hardly any physical space required for the businesses to operate. The number of intermediaries has lessened and thus the customer and company relationship has enhanced. Going online has helped grocery stores in that, that they are able to reach their targets more efficiently and in less time.

Primary Competitors

Peapod

Even though Peapod serves in a few states that come to as few as 15, still Peapod has over 8,000 products spread over a wide range of categories. From fresh produce to home supplies, it has all what a customer desires for. It has extremely low prices as compared to other online grocery stores. It also offers grocery pick up in a few selected areas. Other than that, Peapod also gives a two-hour window for pickup and delivery when customer gives a delivery/pick up date. It also offers text alert service for value offers and category while aisle browsing.

The primiary reason of Peapod's success is that they better understand their customer's needs and desires as compared to other players in the industry. Not only it offer low prices, the store also provide additional services i.e. text alerts, to keep in touch with their customers. The primary focus of the company is not only on expanding their customer base through rendering unique services but also retaining customers through appropriate customer service tools.

Approach

Peapod's approach to the market is simple. It aims to provide home delivery of all the grocery items and other home supplies as it understands the busy lifestyle of people. The company's value and mission align with the service it provides and thus has a huge customer base.

Fresh Direct

Fresh Direct has over 3,000 varieties of top quality food. The produce is supplied to its warehouse directly from the farms, without any intermediary, which is why it is able to sell products at a cheaper rate. It offers nearly the same categories of food as online grocery stores that are under review. It is much cheaper than Webvan but slightly pricier than Peapod.

Approach

Fresh Direct's approach is providing timely delivery of its fresh products and other item, which is why it was also, awarded the Best Supplier of the Year Award for 2011-2012. The company is able to achieve this hallmark courtesy to appropriate inventory management strategies. The company follows JIT (just in time) inventory system to ensure the timely supply and delivery of fresh products. The company ...