Download - Online Grocery in Faridabad
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
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
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