SHORT NGA.compressed
- 1. Davis Food & Drug an eCommerce solution LLINI consulting
- 2. • The Problem • The eCommerce Industry • Company Details: Davis Food & Drug • Our Recommendation: Four Step Plan • Platform • Marketing • In-Store Changes • The Future Agenda
- 3. The Problem What is the best way for Davis Food & Drug to introduce an eCommerce solution while complementing their brick-and- mortar stores? Things to Consider: • Who is the online customer? • What is the best way to reach them?
- 5. eCommerce Growth • 2014 Deloitte survey expected 35% growth in online grocery sales • Consumers expect 67% growth in their own shopping over next 3 years • Currently, online purchases make up 1-2% of net sales for grocery stores with eCommerce; future projections predict 5%+
- 7. Who is the customer? eCommerce • Working and stay-at-home moms • College students • Adults with elderly parents
- 8. What do customers want? • Images • User friendly controls • Product searches • Personalized experiences • Product history eCommerce Source: 2014 Food Industry Review
- 9. What are customer concerns? • Expensive • Inability to choose own products • Limited availability eCommerce Source: Illini Consulting US Survey (n=370)
- 10. COMPANY details!
- 11. • Family-owned, community driven business starting in 1988 • Brick-and-mortar locations: • La Verkin • Vernal • Roosevelt • West Valley • 2014 Annual Sales $13.8 million Davis Food & Drug Davis
- 12. Competition • Stewart’s Marketplace • Shopko • Smith’s • Costco • Walmart • Whole Foods • WynCo Foods • Lin’s Fresh Market • Leed’s Market Davis
- 14. Recommendation 1 432Platform Marketing In-Store Future Four Step Plan
- 16. Platform Potential Partners • Instacart • Ocado • Peapod • Fresh Direct
- 17. • Online Service Engine • Phone App: available on iOS, Android • Website: works on laptops, desktops, tablets • Uses entire store data from start (organic products, specialty products, etc. included) • Has access to live store data • Updates every 24 hours through store’s system Rosie Platform
- 18. Rosie Everyone loves it! “Convenient, user-friendly, and comes with the most accommodating team” –Claire D “Super easy and allows me more time in my kitchen with my children and less time in the supermarket” –Blanca G Customers Businesses “The advanced technology that Rosie has developed is the main reason we chose them versus any of their competitors.” –Mark, Dash’s Market “Price is always a barrier and Rosie offered an affordable solution compared to some other companies.” –Jeff, Associated Food Stores Rosie Facebook Page Cart – Advanced Retailing
- 19. Rosie Costs • $5,000 initiation fee • $600 monthly fee • Credit card transaction processing fee is 3% for Rosie • Store pays 25% of this fee • Rosie pays 75% of this fee • Marketing is an additional fee Rosie
- 20. Return on Investment • More functionality than competitors • Full loyalty integration • Reduced labor expense by 33% • Current partners make $100,000+ per month Rosie
- 21. Store Set-Up • Average set-up time is 60 days • Training employees via phone • Testing system • Uploading data • Weekly conference call with Rosie Rosie
- 24. Alternative items for out-of-stock products Extra information about preferences Add item to favorites list Rosie Customer Set-Up
- 25. Rosie Customer Set-Up • Easy to join, easy to use • Highly customizable • Allows for promotions • Multiple ordering options
- 28. • Daily Facebook posts • Duplicate Facebook onto Instagram • YouTube videos showcasing departments Social Media Marketing Marketing
- 29. • Regular emails (weekly/daily) • Promotions • Advertisements • Coupons • Flash Sales • Current website update • Rosie section with tutorial • Coupon search • Comment section • Community involvement Electronic Marketing Marketing
- 30. • Store front sign • In-store posters • Monitor screens • Receipt footers In-Store Marketing Marketing
- 31. Marketing Internship • Utah State University Uintah Basin Campus in Vernal, UT • Offer internships through marketing program • Benefits for Davis Food & Drug • Cost effective solution • Understands target market (Millennials) • Community involvement Marketing
- 32. Intern Responsibilities • Sends promotional codes • Sends emails • Updates current website Marketing
- 33. Order Confirmation Hi, Andrew! I will be filling your order for March 6, 2016. Meet Your Personal Shopper Chad Holmes 4 year Davis Food & Drug Employee Hobbies: Skiing, guitar playing Community: Born and raised in Vernal Message to Shopper: I promise to always bag your groceries as I would bag my own. I saw in your notes that you prefer the greenest bananas possible. Your wish is my command! With my professional expertise and loyalty, you will not be disappointed. Marketing Personal Responses
- 35. In-Store Pick-Up • $1.99 customer fee • Designated parking lot area for pick-up • Order up to seven days in advance • Minimum four hours ahead of time • Section devoted to online product purchases In-Store
- 36. • Two freezers • Counter • Phone • Computer • Marketing products ! In-Store Pick-Up Area
- 37. STEP 4of business! THE FUTURE
- 38. Vernal • Rosie meetings • In$store!set$up! ! • Hire!marke1ng! intern! Vernal • Rosie meetings • In$Store!set$up! • Employee!training! Vernal • Finalize!store! changes! ! • Employee!training! ! • Release!marke1ng! products! Vernal • Rosie!goes!live! ! • In$store!pick!up! Vernal • Projected break- even point Company Wide • Continue expansion! Company Wide • Conduct market research • Plan Rosie expansion into La Verkin, West Valley, Roosevelt Goals Timeline
- 39. Long-term Goals • Implement Delivery • Offer depot to long-distance customers • Hire full-time marketing director • Expand internship to other cities Goals
- 40. you! THANK