FreshDirect Statement of Business Problem or Opportunity

Introduction

The fact that American citizens do not actively engage in online grocery shopping does not necessarily mean that they do not want to participate in the activity. Majority of consumers find the idea of shopping for groceries online intriguing because it would save more time since a shopper does not have to walk inside a supermarket while pushing a trolley and checking on each shelf (Banerjee, 2009). The customer then has to queue at the checkout line to pay for the groceries purchased. The global online grocery market is anticipated to continue growing at a steady rate with more than 20% forecast period. It is the growth of digital consumerism which propels the predictions for the international online grocery.

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In contemporary society, many consumers depend on devices and digital media to access detailed information concerning products which are sold using online platforms. The information they obtain helps them in making wise decisions before purchasing the actual products. Subsequently, there is a high growth rate of digital consumerism which is also evident in the retail sales of grocery and this is expected to influence the global online grocery in the coming years. The influence is supposed to be positive. The fictional increase in demand for functional beverages and food is supposed to propel the growth prospects for the online grocery market (Bughin, Chui, & Manyika, 2010). It is for this reason that FreshDirect is introduced. The toughest challenge that FreshDirect encounters is delivering fresh food at the doorstep of the consumers in the same condition that the customer would expect it if in any case, they went to the store themselves. Possible competitors such as Target Corp and Amazon could build on this challenge and come up with an appropriate marketing strategy to overtake FreshDirect.

How FreshDirect Works

FreshDirect is an online grocery. The grocery works exactly just like any other shopping site. A customer searches the items that he/she wants (Hays, Keskinocak, & De Lopez, 2005). All these items are added onto a cart in the provided amounts. Once the customer is done with shopping, the customer selects the time of delivery and an option of pre-pay and post-pay for the items purchased. A customer also has a choice of scheduling the deliveries to be the following day, or even after a week. The site lacks day options. The delivery boxes arrive in a refrigerated truck, and the person is handling the delivery delivers them to the customer's kitchen counter.

Translation of Business Problem to Market Research Problem

FreshDirect was launched in 2002, and it drastically became the leading online grocery store which supplies grocery products to New York, Washington DC, Philadelphia, New Jersey and other metropolitan areas. The operating strategy of FreshDirect involves a made to order concept which works on eradicating intermediaries with an objective of creating an efficient supply chain. The business employs a business model canvas which consists in creating a unique company within the grocery business market.

The website offers a wide variety of products where customers can easily choose from. The marketing strategy does not only aim at getting more customers but also provides more information to the clients on the products available in store. Availability of information helps consumers make appropriate choices before they purchase their products. The marketing strategy also involves giving the consumer a variety of precise options to select from. From the website, a consumer can easily choose his/her preference. The site also offers a range of nutritional information and profiles for each product with storage and preparation tips.

Research Objective

The primary objective of FreshDirect is to deliver groceries to the consumers in the same condition that the consumers would find the same product if they physically visited a store. Effective fresh delivery would enable FreshDirect to survive in a competitive environment where other competitors would identify the weakness and come up with effective marketing strategies to surpass FreshDirect. FreshDirect can initiate an appropriate approach that would help it market its products and enhance its services, therefore making consumers choose its products at the expense of the competitor's products.

Research Strategy

Being an online retail grocery, FreshDirect lacks a physical demographic and geographic boundary for the target population. The research problem, therefore, blends with an online survey. It is through the online platforms that the research can find possible respondents. The study can embed an online questionnaire onto FreshDirect website. The survey will target the specific users who visit the site often to shop. The insights obtained from the survey will be essential in clarifying the inquiries and objectives which would require further inquiry. The online survey is also the driving force that the research will use to recruit a sample of research participants who will engage in the survey.

Questionnaire

Where do you live? a) Cityb) Countryside

What is your profession a) Full-time b) part-time c) no work d)on leave e) retired

How many are you in the family? __________________

What is your approximated monthly expenditure? _________________

Would you love the fresh delivery of grocery? a) Yes b) No

How would you love your grocery delivered? _______________

Do you buy frozen food? a) Yes b) No

How often do you buy frozen food? _________________

How do you choose where you do your grocery shopping? ________________

How do you choose your products? a) habit b)choice of product c) proximity d) other, specify___________

Analysis Strategy

The primary focus of FreshDirect is the product and not the service. The objective is to deliver the product to the consumer as fresh as it is. The company also works on eliminating wastage in the grocery and maintaining supply chain in each step. FreshDirect has collected qualitative data from the consumers on their opinion concerning the delivery of fresh products. The next step of marketing research involves obtaining qualitative information on the experience of FreshDirect website. The information helps to improve the addition of value to FreshDirect. The questionnaire posted on the FreshDirect website helps in establishing the most critical aspects of the efficient delivery of fresh products to the consumers.

Strategy Implementation

The marketing research helps a business to understand the market which it operates in. It also helps the business to establish its strengths, weaknesses, opportunities, and threats. Through marketing research, FreshDirect will be able to identify the existing alternative competitions, their main customer base, how they price their products, and marketing strategy.

The research established that FreshDirect employs vertical integration. The objective of applying vertical integration is to shorten the supply chain and improve on the quality of the product delivered to the consumer. The company will, therefore, obtain higher profit margins through maximizing on profits and minimizing on costs. Through higher margins, the business will manage to offer fresh food, greater customization, and low prices.

References

Banerjee, S. (2009). Marketing Communication Through Brand Placement: A Strategic Roadmap. Journal of Marketing & Communication, 5(2).

Bughin, J., Chui, M., & Manyika, J. (2010). Clouds, big data, and smart assets: Ten tech-enabled business trends to watch. McKinsey quarterly, 56(1), 75-86.

Hays, T., Keskinocak, P., & De Lopez, V. M. (2005). Strategies and challenges of internet grocery retailing logistics. In Applications of Supply Chain Management and E-Commerce Research (pp. 217-252). Springer, Boston, MA.