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    E-solutions and Digital Media Applications - Case Study E-solutions and Digital Media Applications - Case Study Document Transcript

    • Case Study: Ocado and Tesco.comCMP010N: E-Solutions and Digital Media Applications Maria Gomez Aguirre Student Id 10003413 MA Digital Media London Metropolitan University February 2011
    • Maria Gomez Aguirre | 1ContentsIntroduction.......................................................................................................................................... 3Comparative analysis of the case studies............................................................................................. 3 Interface design........................................................................................................................... 3 Use of images, colour scheme and interactive feature................................................................ 4 Navigation, information architecture, organization of content (usability and accessibility) .....4 Content, information about products.......................................................................................... 5 Clarity of procedures...................................................................................................................5 Terms and conditions section...................................................................................................... 6 CMR strategies and Trust-enhancing strategies..........................................................................6 Community features, if any.........................................................................................................7Conclusion............................................................................................................................................ 7Bibliography......................................................................................................................................... 9
    • Maria Gomez Aguirre | 2IntroductionIn this paper we are intended to compare two different approaches in Business-to-Customer e-commerce sites: Ocado and Tesco.com. We outline their main differences andsimilarities in what makes online businesses successful: usability, content managementand clarity of procedures among others.Ocado is an independent internet based grocery store. It was founded in 2002 by three ex-bankers and it is currently on partnership with John Lewis and other shareholders. Theypromote an alternative way of shopping. With non physical shops all orders are made onthe Ocado website and they go directly to a single wharehouse where, once prepared,they are delivery to the customer (Green, 2010). During 2010 they report to have anaverage of 92.916 orders per week, 12% of those using mobile devices (Ocado Group,2011).Tesco.com is the e-commerce site for Tesco, the worlds third-largest retailer (Reuters,2011). The group includes a large variety of goods, including groceries, clothing andelectronic among others. Tesco.com was first launched in 2000 (Tesco pcl, 2010).Opposite to Ocado, its business model is based on local stores, that is, customers placean order online and this is redirect to their local store, where it is packed and deliver underthe store management. Tesco reports to have had a 9.1% increase on profits in its groceryshop during 2010 with 1.2 millions users (Tesco plc, 2010).Comparative analysis of the case studiesInterface designTesco.com contains a vast range of goods to be purchase, as explained previously. Forthat reason it is important that the site is well organize and that there is a clear divisionbetween the types of products. Tesco.com fulfils this requirement cleverly in my opinion, bythe use of a neat colour scheme (to be explain later in the document) and by grouping its
    • Maria Gomez Aguirre | 3goods in the same way that it is done offline. For instance, the home page has differentpanels to access the grocery store, Tesco Direct, Clothing, etc. It goes even further withsome of these panels linking to a dedicated website (ie Clothing linking tohttp://www.clothingattesco.com/ and so on).Ocado is much smaller and does not have all the satellites businesses, but it as wellmanages to help the user find his way on the site with a permanent menu on the top.Use of images, colour scheme and interactive featureBoth Tesco and Ocado use a colour scheme that relates to the brand.In the case of Ocado its home page uses a monochromatic colour scheme (Bradley, 2008)playing with different tones of green while combine with purple (one of itscomplementaries on the colour wheel) to catch the users attention on the primary actions(start shopping, login...). Most of Western cultures associate green with the environmentand a more natural way of life (Cortes, 2003) and that is exactly what Ocado promotes, soobviously the choose of this colour is not a coincidence.The home page of Tesco.com is a clear extension of their branded blue and red colourscheme. Combination of cold colours such as different tones of blue and grey over a whitebackground give the user a feeling of clean site (even with all the information that itshows). However, they have incorporate a few elements in red (a warm colour) and thathelps to catch the attention of the user (Coulter, 2010).In terms of interactive features, even though Tesco has got a much wider audience thanOcado, and obviously more resources, I think the latter wins in the quality of those, as forinstance it offers the user not just recipes for almost every food product but allows thecustomer to leave review and rate them.Navigation, information architecture, organization of content (usability and accessibility)Both site keep a menu on the top for the whole of the user journey, as well as addinglateral menus in the pages where needed, in general in order to show the differentsubsection that the page contains.
    • Maria Gomez Aguirre | 4Having a clear and robust information architecture benefits the usability of site andimprove considerably the user experience. This structure is often represent by a site map(Chaffey, 2009). The site map on Ocado offers much more information than Tescos. Thefirst one showing up to three levels of navigation, while Tesco.com shows only two.However in terms usability and accessibility I believe Tesco.com is in a better position. Itnot only has a better grade from W3C (Tesco:AA, Ocado:A) but the site provides usefulinstructions in its usability statement.Content, information about productsOcado only shows product that are in stock (Briggs, 2009), this is because all the stock isin one place and they have a stock controlling system in place. On the other hand, Tescoshows all product that your near by physical store (from which your shop will be deliver) islikely to have. Both of them show a great amount of information for each product they sell,however Ocado tends to be more detailed, showing some useful information like themanufacturer or the types of diet that suit (ie vegetarian, halal...). It goes even further byallowing the users to rate and review the product. I think Ocado is much better inprocessing and presenting the information and it obviously goes with its philosophy ofmaking the shopping easier, so if a named user has a particular requirement for his food,ie a vegan user, it is quicker for him to shop in Ocado where he can easily check if aproduct is suitable for him.Clarity of proceduresIn Tesco.com processes are shorter in terms of number of steps, for instance users cancomplete the payment process in three (Order Summary, Payment and Confirmation).However these steps can be a bit confusing as they have a lot of information in just onepage. That is why I think Ocado, with a bigger number of steps but less information in eachof them, offers a richer user experience. Each of step of the payment system refer to onesubject, being that card details or delivery address. It is as well a good method to introduceupsell elements (Ocado dedicates one page of the payment process to recommendproducts that the user may like or that are on special offer).
    • Maria Gomez Aguirre | 5Terms and conditions sectionBoth Tesco.com and Ocado has a complete section on privacy and terms and conditionsavailable for the user to read at any given time while in the site, as there is a link in thefooter of every page. Additionally, in every process that requires sending sensibleinformation to the server, like Register or Payment, another link to this policies can befound and the system needs the acknowledge of the user to continue with the process.This section is indispensable in any e-commerce transaction, as it needs to reassure theuser about the legality of what he is buying while protecting the vendors interests (Laudon,2008).CMR strategies and Trust-enhancing strategiesAs Chaffey explains “building long-term relationships with customers is essential for anysustainable business” (Chaffey, 2009). He explains different techniques an online businesscan use to targeting new client while keeping the existing ones.For Tesco the most successful way of exploit its relationship with clients is its Clubcardloyalty scheme, which rewards the user with point when using the card on his shopping.This gives Tesco an invaluable information about the customers profile (what they buy,how frequent...). Clubcard is an essential part of Tesco.com site, with reference of thepoints the user can gain in each product and with a dedicated site(http://www.tesco.com/clubcard/clubcard/). Obviously, for a customer point of view, oncehe has his Clubcard card and starts using it, he is more likely to return shopping in Tescoso he can enjoy the benefits of it (vouchers, special prices, etc.).On the other side, Ocado does not have an equivalent to this, it has however what it iscalled “The Ocado Way”, an area on the site where the philosophy of Ocado is promoted.Ocado target market is middle class people who are environmentally conscious (Briggs,2009) and therefore this space helps the costumer to have a greener life style andenhance his trust in Ocado by, for instance, promoting meat-free days or informing theuser about its plans of reducing carbon emissions.Both sites have develop a really sophisticated e-mail based marketing campaign, sendingperiodically e-mails to register users containing offers and products that suit them based ofwhat they have bought previously.
    • Maria Gomez Aguirre | 6In terms of customer service, both sites have a quite clear and complete section in the site,that include FAQ and Contact Us. The latter allows the user to choose between differentchannels: e-mail, online form, phone number, postal address and, in the case of Tesco, anstore locator.Community features, if anyLaudon (Laudon, 2008) empathises in the importance of the use of online communities ine-commerce sites, specifically by applying marketing campaigns linked to the site. Ocadoapplies this by adding different elements to its site such as “Share with friends” panels,feeds from its Facebook pages, Twitter account and blog. Tesco.com although it has someof this online community features does not seem to use it as much as Ocado (at the timeof writing this document, @ocadouk almost four times more followers that @TescoOnline).However, Tesco seems to be more focus on its in-house communities like Baby&ToddlerClub and TescoDiets. This way of dividing its online communities based on interests(babies, nutrition, charity initiatives...) allows Tesco to provide a better and more personalservice to the users.ConclusionOne of the most unexpected conclusions I would like to talk about is the fact that I havefound much more similarities between the two sites that I expected. Obviously these aretwo different companies, with well differentiate business models and target audiences buteven though, their e-commerce sites follow the same rules in quite a lot of procedures. Forinstance, both use the same technology for autocompleting searches, or designing avisually similar basket.In my opinion, the experience of buying through Ocado is much richer than Tesco.com, butthen I think I personally fit better in Ocadoss target market than in Tescos. Nontheless Ithink Tesco.com can have a big improvement in terms of user experience just byimplementing a few of the things that Ocado is currently doing, like allowing users tobrowse the grocery store without being registered (which I think can persuade a lot ofpeople away from the site), improving the quality of the product information by providingbetter images and descriptions and, most important, inviting customers to review the
    • Maria Gomez Aguirre | 7products (Charlton, 2008). Ocado, on the other side, is not perfect either and it needs towork to develop a more usable site among other things, but their product presentation isexceptional. The only improvement I would suggest on this is to include more interactiveelements, like videos explaining how to use or cook the products.Friedlein (Friedlein, 2011) affirms that 2011 is the year of taking into action and developtechnologies and ideas that are already available, like Interactive TV (Tesco is alreadyplanning it) or more personalise relation with the customer. To success in the latter I wouldsuggest to both companies to implement a personalised offer system, so the user canobtain discount or special offers in product that may interest him.Finally I would like to stress the importance of a good customer service strategy and aneven better PR one, because although it is essential that an existing customer is feelinghappy about his experience in the site, it is event more important to be able to reacteffectively when a unsatisfied customer decided to take his frustration into the public eye inany social network. I believe social networks such as Facebook and Twitter needs to betreated as additional channel through which customers can share their thoughts expectingthe company to acknowledge them.
    • Maria Gomez Aguirre | 8BibliographyBradley, H., 2008. Web Design: Tips on Using Color. eCommerce-Guide.com. Available at:http://www.ecommerce-guide.com/article.php/3755011/Web-Design-Tips-on-Using-Color.htm [Accessed March 25, 2011].Briggs, J., Ocado Case Study (ecommerce lecture 4) on Vimeo. Available at:http://vimeo.com/7208342 [Accessed March 20, 2011].Chaffey, D., 2009. E-Business and E-Commerce Management: Strategy, Implementationand Practice 4th ed., Harlow: FT Prentice Hall.Charlton, G., 2008. 10 things Tesco can do better online. Econsultancy. Available at:http://econsultancy.com/uk/blog/2270-10-things-tesco-can-do-better-online [AccessedMarch 23, 2011].Charlton, G., 2008. User reviews a “must” for etailers. Econsultancy. Available at:http://econsultancy.com/uk/blog/2185-user-reviews-a-must-for-etailers [Accessed March23, 2011].Cortes, C., 2003. COLOR IN MOTION. Available at:http://www.mariaclaudiacortes.com/colors/Colors.html [Accessed March 25, 2011].Coulter, A., 2010. Branding Psychology: What Do Your Logo and Palette Colors Say AboutYour Business? ». It’s all about marketing! Available at:http://aboutfacemarketing.net/Marketing/2010/01/hello-world/ [Accessed March 25, 2011].Friedlein, A., 2011. 17 digital marketing trends for 2011. Econsultancy. Available at:http://econsultancy.com/uk/blog/7014-digital-marketing-trends-2011-by-econsultancy-ceo-ashley-friedlein [Accessed March 28, 2011].
    • Maria Gomez Aguirre | 9Green, C., 2010. How do you solve a problem like Ocado? Available at:http://www.chrisgreen.co.uk/522/how-do-you-solve-a-problem-like-ocado/ [AccessedMarch 20, 2011].Haugtvedt, C.P. et al., 2005. Online Consumer Psychology: Understanding and InfluencingConsumer Behavior in the Virtual World, Mahwah, N.J: Lawrence Erlbaum Associates.Laudon, K.C., 2008. E-Commerce: Business, Technology, Society 4th ed., Harlow:Prentice Hall.Ocado Group, 2011. FY10 Preliminary results announcement. Available at:http://www.ocadogroup.com/~/media/Files/O/Ocado/Attachments/pdf/110201%20FY10%20Preliminary%20Results%20Announcement.pdf [Accessed February 20, 2011].Reuters, 2011. Tesco to outpace growth at global rivals - study | Reuters. Available at:http://www.reuters.com/article/2011/02/17/tesco-igd-idUSLDE71F1LR20110217 [AccessedMarch 20, 2011].Tesco plc, 2011. Tesco PLC - Our history. Available at:http://www.tescoplc.com/plc/about_us/tesco_story/ [Accessed March 20, 2011].Tesco plc, 2010. TESCO PLC INTERIM RESULTS 2010/11. Available at:http://www.tescoplc.com/plc/media/pr/pr2010/2010-10-05/ [Accessed March 28, 2011].