CASE: III  Peapod Online Grocery—2003

IIBMS – Peapod Online Grocery—2003

The online grocery turned out to be a lot tougher than analysts thought a few years ago. Many of the early online grocers, including Webvan, ShopLink, StreamLine, Kosmom, Homeruns, and PDQuick, went bankrupt and out of business. At one time, Webvan had 46 percent of the online grocery business, but it still wasn’t profitable enough to survive. The new business model for online grocers is to be part of an existing brick-and-mortar chain. Large grocery chains, like Safeway and Albertson’s, are experiencing sales growth in their online business but have yet to turn a profit. Jupiter Research estimates that online grocery sales will be over $5 billion by 2007, about 1 percent of all grocery sales, while it expects more than 5 percent of all retail sales to be online by then. A few years ago, optimistic analysts estimated online grocery sales would be 10 to 20 times that by 2005, but it didn’t work out that way.

One of the few online grocers to survive in 2003 is Peapod, the first online grocer, started by brothers Andrew and Thomas Parkinson in 1990. However, even Peapod was failing until 2001 when Dutch grocery giant Royal Ahold purchased controlling interest in the company for $73 million. Peapod operates in five markets, mainly by closely affiliating itself with Ahold-owned grocery chains. Peapod by Giant is in the Washington, DC, area, while Peapod by Stop and Shop runs in Boston, New York, and Connecticut. The exception is Chicago, where Peapod operates without an affiliation with a local grocery chain. Peapod executives claim the company is growing by 25 percent annually and has 130,000 customers, and all of its markets except Connecticut are profitable. Average order size is up to $143 from $106 three years earlier.

            The online grocery business seemed like a sure winner in the 1990s. Dual-income families strapped for time could simply go online to do their grocery shopping. They has about the same choices of products that they would have had if they went to a brick-and-mortar grocery, about 20,000 SKUs (stockkeeping units). They could browse the “aisles” on their home computers and place orders via computer, fax or telephone. The orders were filled at affiliated stores and delivered to their homes in a 90-minute window, saving them time and effort and simplifying their daily lives. For all this convenience, consumers were willing to pay a monthly fee and a fee per order for packaging, shipping, and delivery. Since most of the products purchased were well-known branded items, consumer faced little risk in buying their traditional foodstuffs. Even perishables like produce and meat could be counted on to be high quality, and if consumers were concerned, they could make a quick trip to a brick-and-mortar grocery for these selections. However, while all of this sounded good, most consumers didn’t change their grocery shopping habits to take advantage of the online alternative.

Currently analysts do not expect the online grocery industry to take off in the near future, if ever. Miles Cook of Bain & Company estimates that only 8 to 10 percent of U.S. consumers will find ordering groceries online appealing, but only about 1 percent will ever do so. He concludes: “This is going to remain a niche offering in a few markets. It’s not going to be a national mainstream offering.” Jupiter Media Metrix analyst Ken Cassar concludes that “The moral of the story is that the ability to build a better mousetrap must be measured against consumers’ willingness to buy it.”

 

Question:

 

1. What behaviors are involved in online grocery shopping? How does online shopping compare with traditional shopping in terms of behavioral effort?
2. What types of consumers are likely to value online grocery shopping from Peapod?
3. Overall, what do you think about the idea of online grocery shopping? How does it compare with simply eating in restaurants and avoiding grocery shopping and cooking altogether?

IIBMS – Peapod Online Grocery—2003

At Global Study Solutions, we take immense pride in our ability to offer specialized support to students pursuing various programs at IIBMS (Institute Indian Institute of Business Management & Studies). Our dedicated team comprises experienced professionals who excel in crafting precise and well-researched solutions for assignments and case studies across different disciplines and courses.

Our commitment to aiding students in achieving academic success aligns perfectly with the educational standards upheld by IIBMS Institute (Institute Indian Institute of Business Management & Studies). We understand the importance of delivering high-quality, customized solutions that meet the unique requirements of assignments and case studies within the institute\’s curriculum.

Whether in MBA, EMBA, GMS, DMS, or any other programs offered at IIBMS Institute (Institute Indian Institute of Business Management & Studies), our team is equipped to provide expert guidance and meticulously crafted solutions. We prioritize accuracy, originality, and timely delivery; ensuring students receive the necessary assistance to excel academically.

We are dedicated to fostering an environment of academic excellence and providing dependable support to the esteemed students of IIBMS Institute (Institute Indian Institute of Business Management & Studies).

IIBMS Answer Sheets

IIBMS Mumbai

IIBMS Bangalore

Customized Answer Solutions

MBA Assignment Solutions

EMBA Case Study Solutions

GMS Answer Sheets

DMS Assignment Help

Professional Writing Assistance

Tailored Academic Solutions

Comprehensive Answer Sheets

Specialized IIBMS Support

Academic Writing Services

Timely Submission Support

Expertly Crafted Answers

Personalized Guidance

Reliable IIBMS Assistance

Get expert assistance with your IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments and answer sheets from our professional academic writing services.

Our team specializes in supporting students with IIBMS Institute (Institute Indian Institute of Business Management & Studies) coursework, ensuring top-notch answer sheets and comprehensive solutions.

Ace, with our tailored assistance, your IIBMS Institute exams, offering precise guidance and accurate answer sheet preparation.

Seeking reliable help for your IIBMS Institute studies? Trust our academic writing services for meticulously crafted answer sheets and exceptional support.

Score high in your IIBMS Institute assessments by availing our expert aid in preparing comprehensive and well-structured answer sheets.

 

IIBMS Institute Project Report Writing Services

IIBMS Institute Customized Project Reports

IIBMS Institute Project Support

IIBMS Institute Professional Project Report Assistance

Tailored Solutions for Project Reports

IIBMS Institute Quality Project Documentation

IIBMS Institute Expert Project Report Writers

IIBMS Institute Comprehensive Project Analysis

IIBMS Institute Structured Project Report Services

IIBMS Institute Detailed Project Documentation

IIBMS Project Evaluation Support

IIBMS Institute Custom Project Report Formats

IIBMS Institute Project Research and Analysis

MBA/EMBA/GMS/DMS Project Reports

 

IIBMS Institute (Institute Indian Institute of Business Management & Studies) assignments, solved papers, and study materials are available through our academic writing services.

Seeking assistance with IIBMS Institute coursework? Our professional team delivers accurate and timely solutions for all your academic needs.

Our specialized academic writing support simplifies access to IIBMS Institute (Institute Indian Institute of Business Management & Studies) question papers and model answers.

Need expert guidance for your IIBMS Institute assessments? Our service offers comprehensive solutions for students seeking assistance.

Our academic writing services ensure precise and high-quality answers for IIBMS Institute assignments, aiding students in their educational journey.

 

Academic writing professionals play a crucial role in assisting students with their university assignments, striving to achieve several key goals:

Quality Assurance: Their primary aim is to deliver high-quality content that meets academic standards and fulfills the requirements of the university assignments. This involves thorough research, proper structuring, and adherence to guidelines provided by the educational institution.

Originality and Plagiarism-Free Content: Professionals in this field emphasize originality by creating authentic content free from plagiarism. To maintain academic integrity, they ensure that all information is appropriately cited and referenced.

Meeting Deadlines: Timely submission is a significant goal for academic writing professionals. They work within specified deadlines to provide students with completed assignments, enabling them to submit their work punctually.

Clear and Coherent Communication: Professionals strive to convey complex ideas in a clear, coherent, and academically appropriate manner. They focus on effective communication to ensure the content is easily understandable to the target audience.

Supporting Learning and Comprehension: Beyond completing assignments, academic writing professionals aim to support students\’ learning by providing explanations, analysis, and additional resources that help students grasp the subject matter more comprehensively.

Customization and Client Satisfaction: They tailor their services to individual student needs, providing personalized assistance and ensuring client satisfaction by addressing specific requirements and preferences.

Continuous Improvement: Academic writing professionals continuously update their knowledge base, research techniques, and writing skills to adapt to evolving academic standards and deliver the best possible support to students.