The Internet grocery market Essay
The Internet grocery market is an extension of the traditional grocery-shopping philosophy by allowing the customers to purchase their grocery over the Internet without having to go to the grocery store and wait in long queues. This sector has high potential since it benefits both the parties involved in the grocery shopping that is the customer and the retailer. There are many online groceries such as Tesco, Fresh Direct, Ocado, etc.
All have some different unique selling point such as Ocado has its new ‘Green’ campaign which emphasizes on how they are not only satisfying customer’s needs by reduced delivery charges, lesser prices plus they are also protecting the mother earth. Advantages: Ocado delivers people’s groceries in a “Green” van that delivers to twenty households at a time which means that twenty cars are replaced by just one van. These twenty cars which will all be going to one place will consume petrol and cause pollution but if they are replaced by one van than the level of pollution will decrease.
Furthermore, it is said that eighty percent of the people own cars so that they can go for their monthly shopping which means that if Ocado is delivering it to them
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In addition to this, they use computer software to determine “shortest routes” for deliveries which again reduces the energy consumption. In addition to this, they do not have numerous stores from where they deliver the groceries, instead they have warehouse from where grocery is delivered directly to customers which means that their carbon footprint can be reduced. Ocado delivers the groceries in beautiful shopping bags which are not only recyclable and degradable.
One thing that Ocado does best is that you can return the empty shopping bags back to the driver which helps them to recycle them and reuse them for next time. This improves their brand image in front of their customers since nowadays people prefer to buy their goods and services from companies that are working to protect the environment. It also helps to increase awareness among families, for example, in Ocado’s advertisement; you can see the children in a family returning the empty bags to an Ocado driver thereby making children aware about how important it is to care for the environment.
Disadvantages: The ‘Green’ campaign is very good especially in an era where the environment is continuously deteriorating. However, there are some disadvantages of this new way of using e-commerce to protect the environment. First of all, if you purchase grocery in a traditional way then the supermarket does not have to worry about collecting the empty bags and recycling them but since Ocado collects the empty bags and then recycles them then incurs cost.
Secondly, they have to invest heavily on computer technology so that they can communicate easily with customer and also calculate shortest distance to a route which means there is additional cost. The one reason which prevents many existing and new-entrants to enter this business is the hefty initial cost with very risky future since there have been many unsuccessful e-groceries in the recent past such as Web Van.
Ocado: Videos. (n. d. ). Retrieved from Ocado:http://www. ocado. com/content/html/videos03. html