Online Grocery - Partnership Proposal
This presentation discusses the demand for online groceries, it includes many researches on market and customer trends as well as a business study on sales and cost and how to implement the solution in an effective manner to capture as big of a market share as possible by partnering with established brick-and-mortar stores.
Mohamed Al-Amoodi
July 24 2013
Our project titled as “Online Shopping System” is basically a web based application used to record sales, online sale and purchase and handle payments.
The project is to promote a user-friendly, safe way for customers to buy and receive products without being physically at a shop.
The shop keep an electronic history of all purchases and transactions.
This Presentation is on mini project "Online Shopping". In This Presentation there are 19 slides with full description of project.If you want project's html file you can contact me on "kmshakya92@gmail.com" or "admin@grabguides.com"
This project is totally on HTML(with CSS) language. you can understand every page simply because i have designed it with comments.Feel free to contact:
Krishna Mohan Shakya
Mail: kmshakya92@gmail.com
or http://grabguides.com
http://monkshistory.com
It will help you to know the working of e-commerce (B2C) website .... and present the way when you make your own e-commerce website
#onlinesystem #eCommerce
Project On Online grocery_MBA Marketingsagar reddy
1) To study the perception of grocery retailers towards click and brick model in Bangalore.
2) To understand the impact of brick and click model on customer retention.
3) To understand the customer willingness to purchase grocery online from local
retailers.
THIS PPT HELP STUDENT FOR THE JAVA BASED MINIPROJECT AND ALSO HELP TO PEOPLE WHO HAD A STORE OF GROCERY AND HELP TO MANAGED THEIR STORE THROUGH REFFER OF PPT
Goteso is top on demand grocery ordering and delivery business app development company, known for its best online grocery store software developers across the globe.
Final Project proposal(E-commarce Based web Platform )Reduan Rafi
This is a Final year Project Proposal. This will help you a bit about how to arrange your proposal. specially for those who are interested in web based project
Our project titled as “Online Shopping System” is basically a web based application used to record sales, online sale and purchase and handle payments.
The project is to promote a user-friendly, safe way for customers to buy and receive products without being physically at a shop.
The shop keep an electronic history of all purchases and transactions.
This Presentation is on mini project "Online Shopping". In This Presentation there are 19 slides with full description of project.If you want project's html file you can contact me on "kmshakya92@gmail.com" or "admin@grabguides.com"
This project is totally on HTML(with CSS) language. you can understand every page simply because i have designed it with comments.Feel free to contact:
Krishna Mohan Shakya
Mail: kmshakya92@gmail.com
or http://grabguides.com
http://monkshistory.com
It will help you to know the working of e-commerce (B2C) website .... and present the way when you make your own e-commerce website
#onlinesystem #eCommerce
Project On Online grocery_MBA Marketingsagar reddy
1) To study the perception of grocery retailers towards click and brick model in Bangalore.
2) To understand the impact of brick and click model on customer retention.
3) To understand the customer willingness to purchase grocery online from local
retailers.
THIS PPT HELP STUDENT FOR THE JAVA BASED MINIPROJECT AND ALSO HELP TO PEOPLE WHO HAD A STORE OF GROCERY AND HELP TO MANAGED THEIR STORE THROUGH REFFER OF PPT
Goteso is top on demand grocery ordering and delivery business app development company, known for its best online grocery store software developers across the globe.
Final Project proposal(E-commarce Based web Platform )Reduan Rafi
This is a Final year Project Proposal. This will help you a bit about how to arrange your proposal. specially for those who are interested in web based project
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Is your business ready to sell online? Australian e-Commerce sales reached more than $37 billion in 2013 and in recent years sales have continuously increased by $3-4 billion every year. With such increases, understanding what it takes to sell online and how to start your e-Commerce journey may be critical to business survival in the coming years. This workshop was developed for people with minimal e-Commerce knowledge or businesses currently selling online who would like to improve their confidence in what they are doing.
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The continuing, accelerating growth and impact of the Internet on a global basis and its enabling of a new high-speed, low energy almost free infrastructure of borderless global instant online everything 24/7/365, is seeing unparalleled impacts on society and economies globally. Citizens around the world increasingly use advanced technology and global communication networks to live, work, socialise, be informed and entertained though the use of online services via personal devices such as PC’s, Smartphones and computer tablets (e.g. the iPad) and SMART TV’s. One dimension and sector being affected by this accelerating technology led evolution, concerns the technology enabled consumer and the sale of goods and services to those consumers, both domestically and globally. Nowhere is the impact of this “e”volution being felt more than in the Retailing Sector
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2. Online Grocery
• Introduction
– We want to offer a shop/delivery
service for groceries in Edmonton
– Customers buy your products from
our website
– We shop in-store/deliver using a
system
– To make the service fast/cheap for
customers we need to form a
partnership
3. Customers
• Usual customers
– busy young professionals
– value saving 50 mins trip and queue
• 60% of customers
– physically unfit (eg: seniors, pregnant
mothers, injured people, etc)
• 15% of customers
• Usual products
– dry/frozen food and housekeeping
products
* (PR-Newswire, 2013) (Evolution Insight, 2010)
4. Customers
• Demands
– low service fee (90% demanded)
– personalized/online-only offers (60% demanded)
– membership/loyalty cards (57% demanded)
– new products requests (50% demanded)
– small delivery slots (50% demanded)
– clear food quality/refund policies
– good website (stable, easy search, fast checkout)
– good customer service
* (ATKearney, 2012) (Poulter, 2011) (Symphony-EYC, 2013) (ePerformance Observatory, 2012) (Mélanie, 2011)
5. Market Demand
• Summary
– The trend in customer behaviour since 2000 has
been an increasingly rapid migration towards
online shopping - the grocery retail sector is no
exception
– Online grocery shopping was in it’s infancy in
2004 in the UK, but spiked in popularity around
2008, and has risen every year since
6. Revenue Market
Share Trend
Customer Market
Share Trend
Misc
Color
Description
Market Demand
2004 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012
Internationally -
population planning to
shop for groceries
online = 26% compared
to computer software =
29%, travel reservation
= 30%, entertainment =
45% (Nielsen’s, 2012)
UK - population
shopping for groceries
online at least once a
year = 20%, at least
once a week = 5.9%
(Key Note, 2013)
US - online ($13B) to
physical grocery
shopping market share
= 1.2% (Hartman
Group, 2012)
US - population
shopping for groceries
online 1-3 times per
month = 4%, at least
once a week = 2%
(Demery, 2011)
UK – top online
grocery firms annual
increase in sales =
35% (Research
Methodology, 2012)
US - online to physical
grocery shopping
market share = 1%
(Empower Research,
2009)
UK - online to physical
grocery shopping
market share = 0.8%
(Yousept & Li, 2004)
7. Market Demand
Revenue Market
Share Trend
Customer Market
Share Trend
Misc
Color
Description
2013 2013 2014 2015 2016 2017 2018 2018
Today
UK - online grocery
shopping = GBP 11.1B
(predicted to be double
2013 sales) (Neville,
2013)
UK - online (GBP 5.6B)
to physical grocery
shopping market share
= 3.5% (Neville, 2013)
US - population
shopping for groceries
online = 30% (Trassard,
2013)
12. Business Solution
• Service fee (breakdown)
* Calculations available
Average Amount of Customer Purchase by Online Grocery Firm
Peapod average basket price 100CAD per customer
Streamline average basket price 102CAD per customer
Teso average basket price 100CAD per customer
WebVan average basket price 71CAD per customer
HomeGrocer average basket price 102CAD per customer
Average basket price 95CAD per customer
Average Service Fee based on an Average Basket Price
COST – To have a shopper pick up the items from the shelves (26.3 mins per customer) 4.36CAD per customer
COST – For gas spent on the delivery (8.2 km per customer) 0.94CAD per customer
COST – To have the items delivered to the customer (31.2 mins per customer) 5.18CAD per customer
COST – Transaction fee charged by credit card companies (online credit CAD 2.36 per customer) 2.36CAD per customer
COST – Admin cost, food/business license renewals, truck maintenance (CAD 2.38 per customer) 2.38CAD per customer
Overall service fee 15.22CAD per customer
13. Business Solution
• Service fee (impact on sales)
Service Fee ($) People who would be interested (%)
0 100%
1-5 48%
5-10 18%
10-20 5%
20+ 1%
* 857 people surveyed (Site, 2011)
0%
20%
40%
60%
80%
100%
0.00 5.00 10.00 15.00 20.00 25.00
PeopleInterested(%)
Service Fee ($)
Service Fee Impact on Sales
Min 1.5% discount (as we
eliminated credit card fees)
Will bring service fee to $13.75
and 5% market share
1.5% discount + 2.5% commission
Will bring service fee to $11.25 and
10% market share (double sales)
14. Partnership
• Requirements
– Commission
• for reduction of service fee
– Database connection
• for items, quantity, department/location in shop
– Return policy
• for unsatisfied customers
– Skip checkout
• for increasing speed
• for eliminating 1.5% credit transactions fees
• items will be invoiced and paid at an agreed time
with an agreed payment method
15. Partnership
• Benefits
– First-mover competitive edge
• Because Edmonton has no good online grocery firm
• Increase in customer loyalty
– Increase in sales and customers
• No investment needed
• Estimated $22.5M revenue and 160,000 customers
in long term in Edmonton
– Free continuous feedback to improve products
• Because we collect data, reviews, forum information
16. Management Team
• Mohamed Al-Amoodi
– Head Programmer and CEO
– Education: BSc Chemical Engineer, 2011
– Experience:
• Engineer/designer with Pentair (Tyco)
• Programmer/manager with Rehabtronics (Bioness)
* Endorsements available
17. Management Team
• Khaled Al-Amoodi
– Programmer and CFO
– Education: BSc Electrical Engineer, 2013
– Experience:
• Researcher (on multi-ferric material) with Dr Kim Chow
(University of Alberta)
* Endorsements available
21. References
1. Al-Amoodi, M. (2013). Online Grocer. Edmonton: Google Drive.
2. ATKearney. (2012, March 01). Ideas and Insights. Retrieved July 13, 2013, from ATKearney: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/a-fresh-look-at-online-
grocery/10192
3. Browne, K. (2010, March 04). Grocery shopping online. Retrieved July 11, 2013, from Choice: http://www.choice.com.au/reviews-and-tests/food-and-health/food-and-drink/groceries/grocery-
shopping-online/page/online-versus-instore.aspx
4. Demery, P. (2011, March 18). Online grocery shoppers like home delivery. Retrieved June 16, 2013, from Internet Retailer: http://www.internetretailer.com/2011/03/18/online-grocery-shoppers-home-
delivery
5. Empower Research. (2009, April 09). Empower Research. Retrieved July 11, 2013, from Slide Share: http://www.slideshare.net/incred23/online-grocery-industry
6. ePerformance Observatory. (2012, January 01). Food and Grocery. Retrieved July 11, 2013, from ePerformance Observatory: http://www.eperformance-
observatory.com/etudes.php?titre=Food%20and%20Grocery
7. Evolution Insight. (2010, January 01). Online Grocery Shopper Behaviour. Retrieved July 13, 2013, from SlideShare: http://www.slideshare.net/evolutioninsights/online-food-grocery-the-shopper-
perspective-sample-extract
8. Galante, N. (2013, April 01). The future of online grocery in Europe. London, United Kingdom.
9. Goyalarpit. (2013, April 14). “Online Grocery Retail” Survey Result. Retrieved July 11, 2013, from IspiratO: http://ispirat0.wordpress.com/2013/04/14/online-grocery-retail-survey-result/
10. Hartman Group. (2012, January 01). The Online Grocery Opportunity. Retrieved July 11, 2013, from Hartman Group: http://www.hartman-group.com/downloads/the-online-grocery-opportunity-
2012.pdf
11. Kevin, C. (2001, January 01). Online Grocery Shopping. Retrieved July 13, 2013, from Business Information Systems: http://www.freewebs.com/aimeili/onlinegrocery.pdf
12. Key Note. (2013). E-Commerce: The Internet Grocery Market Report 2013. Computing and IT , 1.
13. Kornum, N. (2004). Grocery eCommerce. Massachusetts: Edward Elgar.
14. Mélanie. (2011, July 5). E-commerce: The Future of Online Supermarkets. Retrieved June 17, 2013, from The Followers: http://blogs.terrapinn.com/internetshow/2011/07/05/commerce-future-online-
supermarkets/
15. Morganosky, M. A., & Cude, B. J. (2000). Consumer response to online grocery shopping. Emerald 28 , 1.
16. Neville, S. (2013, February 18). Online grocery market will double within five years. Retrieved July 08, 2013, from The Guardian: http://www.guardian.co.uk/business/2013/feb/18/supermarkets-online-
grocery-business-value
17. Nielsen’s. (2012). Half of Online Consumers Have Bought a Grocery Product Online. Thetford: MarketingCharts staff.
18. Poulter, S. (2011, June 21). It's back to the shops! Why we’re fed up with buying groceries. Retrieved June 21, 2013, from Mail Online: http://www.dailymail.co.uk/news/article-2006005/Grocery-
shopping-online-Were-fed-shops.html
19. PR-Newswire. (2013, February 13). More Than One-Third of U.S. Adults Currently or Plan to Shop for Groceries Online, Reveals New CouponCabin.com Survey. Retrieved 07 08, 2013, from PR-Newswire:
http://www.prnewswire.com/news-releases/more-than-one-third-of-us-adults-currently-or-plan-to-shop-for-groceries-online-reveals-new-couponcabincom-survey-190992051.html
20. Research Methodology. (2012, July 30). Online Food and Grocery Shopping as a Branch of E-Commerce. Retrieved July 08, 2013, from Research Methodology: http://research-methodology.net/online-
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