Download - vegas 2.0.2
Adam TwiningKatie SchnipkeShannon RoofBethany OckwellKorinne MagnusonHaley Crawford
E-Commerce Initiative Case Study
•Define the problem • Introduce the strategic marketing plan•Cost and implementation strategy•Making Davis more relevant to the market
Agenda
•Davis Food & Drug is an independent family owned grocer
•Four locations•Determine the best option for the Vernal
location to introduce e-commerce•Consumers are selecting, purchasing and
consuming foods differently than before•Positively impact market•$65,000 budget
Define the Problem
• Complimenting brick and mortar• Picking platform• Delivery plan• Pricing strategy• Labor
Operational• Generational gaps• In-store and online platforms• Willingness to use• Technological competence• Social Media
Marketing
Expected Challenges
Demographics
55 - 64
45 - 54
35 - 44
21 - 34
10 - 20
0 5 10 15 20 25
9
10
12
22
17
Population by Age
New Target Market
Current Customers
Current Customers
My Best Segments. (2015). Retrieved from Nielsens: https://www.claritas.com/MyBestSegments/Default.jsp?ID=20
Demographics
<$25k $25-35k $35-50k $50-75k $75-100k $100-150k $150+0
5
10
15
20
25
30Households by Income
My Best Segments. (2015). Retrieved from Nielsens: https://www.claritas.com/MyBestSegments/Default.jsp?ID=20
Current Customers
Current Customers
New Target Market
National Grocers. (2015). Retrieved from National Grocers Association: http://www.nationalgrocers.org/events-education/student-programs/student-competition
Addressing Millennials• Social Media• Updating website• Email• TV/radio commercials
Potential CustomersIntroduce and educate current customer database• Email• Flyers through mail• Newspapers• TV/radio commercials
Current Customers
Introducing an E-Commerce Solution
Smith, C. (2015, January 20). How E-Commerce Is Finally Distrupting the $600-Billion-Aollar-A- Year Grocery Industry. Retrieved from Business Insider: http://www.businessinsider.com/e-commerce-disrupting-huge-grocery-market-2014-12
Promotional materials and incentives•Grand opening special deals•First week free for rewards cards holders!•Special offers on large orders▫$10 credit every time $400 is spent by a
rewards member
Introducing an E-Commerce Solution
My Best Segments. (2015). Retrieved from Nielsens: https://www.claritas.com/MyBestSegments/Default.jsp?ID=20
Online Vs. Traditional Shopping . (2007). Retrieved from Shopping Navigator: http://www.shoppingnavigator.co.uk/benefits-of-online-shopping.php
Stores 61%
Online 31%
Catalog 4%
Mobile 4%
•Research▫There is a specific demographic in Utah and Vernal areas▫Going forward, the marketing and communication plan is going to have to
be geared toward this specific demographic
•Segmentation▫Top Tapestry Segmentations-up and coming families and soccer moms
Impact on Marketing & Communication Plans
The 3 P’s•Products▫Highlight key brands only available at Davis Food & Drug
•Promotion▫Engage Millennials through deals utilizing Facebook and Twitter via ▫Engage current customer base with emails and print materials via AR
Marketing•Price▫Competitive
Impact on Marketing & Communication Plans
•Distribution▫Competitive advantage▫Guaranteed delivery times▫Brand awareness▫Customer loyalty
•Relationship Management▫Customer service team
Personal shopper▫Trustworthy
Impact on Marketing & Communication Plans
Bagul, V. (n.d.). How Will E-Business Affect a Marketing Plan? Retrieved from azcebtral: http://yourbusiness.azcentral.com/ebusiness-affect-marketing-plan-14079.html
1. Partnership with other companies▫FreshOp▫Associated Food Store Inc.▫A-R Marketing
2. Online presence▫Facebook, Twitter, company website, new company app
“Our store to your door”3. Delivery▫Block delivery times
3 Key Components for Development
Shopping Products Administration
Shopping List
Clickable Circular
Pick Up & Delivery
Catering
Nutrition & Other Info
Beautiful CPG Imagery
Images & Variable Weight Info
Photo Studio for Store Brand
Analytics
Email & Social
POS
Payments
Morey, B. (2016). Freshop. Retrieved from Freshop: https://www.freshop.com/
Payments Point of Sale/Loyalty Email
Morey, B. (2016). Freshop. Retrieved from Freshop: https://www.freshop.com/
Brian Moyer: CEO
Morey, B. (2016). Freshop. Retrieved from Freshop: https://www.freshop.com/
Phases of E-Commerce Strategy
Phase I Phase II
Planning Testing
Phase III
Pick-up
Phase IV
Delivery
Weeks 1-3•Planning Phase▫Contact ▫Demo of what they all offer for Davis Food & Drug▫Set-up online database and redeveloped
webpage▫Give the “thumbs up” to continue with
E-commerce Strategy Phase I
Weeks 4-10•Testing Phase▫Soft opening▫Minor updates and adjustments▫Major changes can happen at the
end of the testing period▫Advertise grand opening event▫Launch to the general public
E-commerce Strategy Phase II
Weeks 11-20• In-store Pickup Phase▫Customers can begin ordering items online
through the platform and pickup the items at the Davis Food & Drug location
▫Orders Available for $10/order•Picking Platform▫Current employee starts 1 hour before the
order will be picked up▫Customers can select what timeslots at half
hour increments
E-commerce Strategy Phase III
Week 21- completion•Delivery Phase •$50/month ▫< 60 mile round trip▫Up to 4 deliveries/month
•$75/month▫> mile round trip▫Up to 4 deliveries/month▫Minimum $150 order
E-commerce Strategy Phase IV
Operational Expectancies“Bringing back the milkman”
• •Marketing Firm•Delivery Truck •Grand Opening
Event
•Total
$5,000/location$40,000/year$5,000 down
$10,000
$60,000
Budget
•Expansion to new demographics while enhancing current customer satisfaction
• Increasing market share▫Amazon Fresh and Wal-Mart▫Smith’s and Harmons▫Online market share is projected to
rapidly increase▫Increase Profits
Making Davis Relevant to the Market
Walmart Testing New Tools in E-commerce Arms Race with Amazon." Fortune Walmart Testing New Tools in Ecommerce Arms Race with Amazon Comments. N.p., 19 June 2015. Web. 26 Feb. 2016.
•Broaden customer base by reaching new demographic•Offer promotions and utilize social media to increase brand awareness•Done through a four phase strategic plan
Conclusion
Question & Answer