The Online Grocery Store in Noida

By

http://rationhome.com

Major Players in Online Groceries

Firms Locations served

HomeRuns Boston

HomeGrocer Seattle, Portland, OrangeCounty CA

Peapod Austin, Boston, Chicago,Columbus, Dallas/FW,

Houston, LI, SFStreamline Boston, D.C., Chicago

Shoplink NY/CT, Boston

Webvan S.F.Rationhome.com

A Sample Front Page

Rationhome.com

Basics

• Consumers sign up online with grocery company

• Can shop anytime anywhere that they have access to web interface

• Log in, select a basket of groceries, pay using a credit card, and arrange for delivery

Rationhome.com

A Sample Signup Page

Rationhome.com

A Sample Grocery Store

Rationhome.com

Online Groceries

• Who are the customers– “Streamline.com, Inc. ("Streamline" or the

"Company") simplifies the lives of busy suburban families … Our typical customer tends to be a dual income household with at least one child and access to the Internet.” (Source: Streamline, 10Q, Nov. 1999)

Rationhome.com

Online Groceries

– Peapod’s slogan is “Smart shopping for busy people”, which tells you something about who their customers are.

– “Peapod's typical members are females between the ages of 30 and 54, households with children and dual income households. … Median income exceeding $60,000 per year.” (Source: Peapod, 10K 1999)

Rationhome.com

Online Groceries

• How to they attract customers– Referrals (Webvan, Peapod: $20, Homeruns:

$10, Streamline)– School programs (Webvan donates a percentage)– Group affiliation (HomeGrocer)– Word of mouth (all)– Media advertising (all)– Direct mail (all)

Rationhome.com

Online Groceries

• Value added– The basic value proposition is having your

groceries delivered• Books/magazines/office supplies

• Stamps

• Flowers

• Gifts/toys/games

• Nonprescription drug items

Rationhome.com

Online Groceries

• Additional value added– Not having to be home for delivery

• Streamline and Shoplink install refrigerators and shelving in your garage, so they can deliver any time

– Other services • Dry cleaning, film processing, shoe repair, packages (SL,

ST)• Videos (ST)• Bottle and can redemption (SL)• Alcohol and Tobacco (WV, PP)

Rationhome.com

Online Groceries

• Sample prices for some markets– Per delivery

• Webvan (free > $50, $4.95 otherwise)

• HomeGrocer (free > $75, $9.95 otherwise)

• Homeruns (free > $60, $10 otherwise (min $30))

• Peapod ($9.95)

Rationhome.com

Online Groceries

– Subscription• Streamline, $30/mo weekly, fridge and shelving

• Shoplink, $25/mo weekly; $39/mo weekly fridge and shelving

• Peapod ($4.95/mo + $5/delivery)

• Peapod ($19.95/mo + free delivery on orders >$60)

Rationhome.com

Online Groceries

• Trying the product– Experience good– Offer various promotions to get potential

customers to try• Free delivery (Homeruns $60, Homegrocer 1st

order, Webvan until Jan 31)

• Free months of service (Shoplink, Streamline)

• Free groceries (Streamline, Webvan, Peapod)

Rationhome.com

Online Groceries

• Turning one-shot customers into repeat customers– On monthly plans, customers are committing to

an ongoing relationship• Satisfaction guarantees

– In per order relationships, firms seem to be banking on excellent customer service to bring people back

Rationhome.com