Internet shopping diagram Supermarket On-line, credit card Email or web confirmation Goods delivery Client
TRENDS IN ONLINE STORES• Online-ordering enables customers to select their grocery list, have someone else do the shopping.• Home-delivery (77% of online shoppers have tried this option) In-store pickup (46% have tried this option) Reflects growth of online retail in general.• Big spenders are likelier to buy online.• Time is the leading motivator, followed by convenience Some use home-delivery option to save gas Some use in-store pickup to ensure they buy only what they need, minimizing the risk of making impulse purchases
Value Proposition• Value Added Relationships – STRATEGIC Value: The Walmart-AOL Marketing Alliance • Value for AOL: new segments of mass market • Value for Walmart: greater success for the site. New AOL 5.0 for Walmart customers will have automatic access to the Walmart site. • Value for Walmart Customer: Sense of security and identification with trusted brand name. Signaling.• Value Added Features • Checking Order Status Online (TARGET) • “a high level of customer service, excellent credit offerings, installation and service.” (SEARS ROEBUCK & Co.) • Online Shopping Assistants (SEARS) • Multilingual (Neiman Marcus – Japanese, Bay - French) • Multiple Ship To Addresses (Neiman Marcus – handled offline)
Buyer Percentages Buyer age Profile 50% 40% 30% 69% 20% 31% 10% 0% 18-25 yrs 25-35 yrs 36 yrs & Below 18 over Male Female
Value Proposition• Additional Value Added Features – Match Lowest Competitor Price (WALMART) – Rollback Prices (WALMART) – Travel Services (Target, WALMART) – True Internet Color (Bloomingdales – for garments) – Clubs for Special Occasions (TARGET “Club Wedd” for weddings) – Online Photo Center (WALMART) • Store, Share, Download, Print (@ $0.86/copy), Save, Email, Gift Printing – Wish List, Reminder List, Gift Registry, Purchase History (MyWalmart, JC Penney, SEARS) – Store and Allied Services Locator (WALMART-Pizza Hut) – Free Internet Access, Webpage, Email (KMART-Bluelight) – Horoscope (Neiman Marcus) – Personalized Tailoring (Neiman Marcus – “Pick-Me-Up”)
Advantages of online Grocery Shopping• 1. You save time in terms of driving to a physical grocery store, circling the parking lot looking for parking, meandering up and down the aisles, standing in line at the checkout counter, loading the groceries in your car, and driving home.• 2. You are less likely to overspend if you purchase grocery online rather than visit a physical grocery store, because you are less likely to be side tracked and end up buying more than what you intended. Lets face it: It has happened to all of us: We go to the grocery store with a shopping list and wind up walking out of the store having bought a million other things that were not on the list!• 3. If you have a physical handicap or impairment that prevents you from the physical labor associated with grocery shopping, then having your groceries delivered to you may well be a necessity more than a convenience.
• If you live in a building that makes lugging grocery bags up and down a flight of stairs or elevators and down a hallway very difficult, then door-to-door grocery delivery would take care of this problem for you.• If you are extremely strapped for time, either due to your career, your school, a schedule that prohibits you from being able to get to the grocery store before it closes, or because of your family commitments, then you would be able to free up your time to do the things that really matter, if you were to purchase grocery online.• You can avoid the stress and hassle of having to drive to the grocery store, circle around the parking lot vying for a parking space, dragging your screaming and restless kids with you to the store, meandering through the crowded isles while trying to avoid a collision or traffic jam with other shopping carts, standing in a long line at the checkout counter, loading and unloading your car trunk with the groceries when you leave the store and arrive at home.• You can shop anytime you want, at your own convenience, 24 hours a day, 7 days a week.• You can automate your grocery deliveries, so that frequently purchased grocery items are shipped to you on a regular basis.
What Changes will convince you to order groceries online0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Wont use online groceries Other More products offered Faster Turnaround time My house in the delivery radius My grocery offering those services Tengible incentives(freebies,discounts) Better web design that would make it easier to buy Lower Fee