Peapod Strategic Marketing
El Sheikh Ali, Ali. Peapod Case. Page 471-494.
Case Analysis I. What is/are the problem(s) / challenges(s) ?
1) Peapod is a challenging and innovative company, that is considering entering the internet market.
2) Therefore the company must put in place its website, and develop a strong network.
3) Strategy, brand positioning and partners are also important challenges facing the company.
II. Company Analysis:
1) What is / are the business / mission / philosophy ?
1) The company is founded in 1989.
2) It provides online groceries for specific regions: a. Atlanta Boston b. Chicago Columbus c. Dallas Houston d. San Francisco San Jose
3) Chicago is the largest market.
4) It serves around 75,000 customers.
5) With 75% of customers being women. (56,250).
6) It is the first and biggest company of its genre.
7) It has a strong brand recognition.
8) It has a well established partnership with both its customers up to its suppliers.
9) Its service is considered to be convenient and time saving.
B. SWOT Analysis:
1) Peapod has implemented itself and its market as the pioneers of the online grocery stores.
2) Being the first to do so, it became naturally the leader in its market.
3) Peapod falling stock prices served as a barrier against competition entrance into the market.
4) Brand recognition is strong and media coverage helps maintaining “the heat”.
5) Software programming has lead Peapod to forward a new version for online transactions: a. It aims at reducing costs. b. Having more efficient operations. c. Increase the number of potential customers and markets niches. d. It managed to financials both from the customers and from the suppliers (due to membership).
6) Customers are satisfied because thry do not have to suffer the market stressfull experience.
7) Prices are cheaper.
8) Partners support alliance with Peapod, and look forward to it.