Evaluation of an Online Shopping Service for Groceries

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Marketing Management - Submission of evaluation

Evaluation of an Online Shopping Service for Groceries

Author: Ersin Tosun

Study course MBA – Master of Business Administration Submitted on: 2011-09-24

1 Introduction

Table of Contents
1 Introduction..................................................................................2 2 Electronic Business Process for Retailers...............................3 2.1 E-Shop via Internet Platform.....................................................................3 2.2 Analysis of Target Group...........................................................................3

3 E-Shop Service for Supermarkets.............................................4 4 Risks of the Market Launch........................................................6 5 Conclusion...................................................................................6 6 Literature......................................................................................7

1 Introduction
Marketing Management and Distribution via Internet platform directly to the customer (B2C) is rapidly gaining importance, because consumer show an increasing demand of individual contact. According to Keller [Keller_2006, p. 12f] online business has already become a professional distribution channel to be reckoned with. Therefore marketing activities via e-mail newsletters and social media have to be combined with traditional online and offline advertisements. By fulfilling the demands and wishes of the customer, marketing aims to establish long-term relationships with customers and deliver value to him. For this essay it was difficult to find literature about the field of groceries, therefore I relate to the Belgian Supermarket chain called “Delhaize” [Delhaize_2011], who offer a service of taking online orders from their customers to be picked up later. Using marketing instruments I will analyse the electronic business process and evaluate the advantages and disadvantages. It must not be forgotten that it is important to keep competition at a distance, this is as true for electronic business processes as for any other process. Due to the limited space here and the small time frame of the presentation I won't describe the marketing instruments in detail, but instead concentrate on the service with its advantages and disadvantages.

Ersin Tosun: Evaluation of an Online Shopping Service for Groceries

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2 Electronic Business Process for Retailers

2 Electronic Business Process for Retailers
2.1 E-Shop via Internet Platform
The high attractiveness of online market and a high online marketing potential respectively is usually the result of coinciding factors regarding the product and the potential customers. See [Rupp_2010, p.33] Combining an online shop with a pick-up service more customers can be reached by a supermarket. Generally, distribution of groceries via online shops has proven difficult. Thus the idea of just making the groceries ready for pick-up by the customer has come up and shown to be feasible and successful.

2.2 Analysis of Target Group
According to [Peter/Olson_2001 page 382] ,the target group analysis is an instrument for the marketing and media research resulting in determination of the target group. The following five criteria are taken into account. See [Mittelstanddirekt_2011]: 1. Analysis of Needs Groceries have to be bought at least several times per week in order to have fresh food in the house. Only very few people tend to eat out all the time, although coffee to go has become more and more popular over the past decade (Starbucks). For most urban professionals walking long distances in large stores and queuing at the cashier is a hassle especially at peak hours. 2. Defining the Scope of the Target Group Professionals live under constant time pressure and have therefore very limited time for their daily shopping. Placing an online order which is ready for pick-up after work on...
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