An Online Grocery Experience Part 2

Appendix Table 1: Current vs Proposed Strategy Category Positioning Current Strategy Proposed Strategy  Selling nonperishable groceries only (NO prepared foods)  (NO frozen foods) (NO produce)  (NO poultry/meat/seafood)  No minimum purchase required  Over 11,000 grocery items  Make it easy to order groceries online  Carry newest and hard to find items plus “staples”  Wide variety of long shelflife foods  “Meat” department  Gluten-free and natural products  Household name brands  International foods  Online Only  Competition based on current business model: o Instacart o AmazonFresh o Safeway o PeaPod o Walmart  Google Shopping Express  Start to focus more on quality of products instead of quantity (11,000+ items)  Simplify website  Highlight new/unusual items  Partner – Instacart?  Divide gluten-free, natural, organics, and sugar-free items into searchable categories with a drop down. More people are diabetic than have issues with gluten (this could be a shopping option also)  Have visible banners with the categories  Quantity doesn’t matter – it’s clutter. I don’t want to have to choose between 10 different brands of flavored gelatin. I just want the one that’s the highest quality.  Focus on quality – reduce quantity. Increase efficiency. Category Customer         Customer Service     Current Strategy Busy Lifestyle/Household Millennials Computer literate Limited Time Online Shopper No transportation to local grocery store Elderly/Sick/Alone Willing to pay premium $ to have it shipped directly to door Value prop vs cluster? FAQs Contact through email Contact through phone Proposed Strategy  Use value cluster approach, including storing purchase info, recommending like items, etc.  Have more advertising to a broader audience  Doesn’t have time to spend too much time on the website either – make purchasing online easier and simpler.  Contact through Live Chat  Phone more prominent  Streamline FAQs/categorize so easier to find/search  Promote CS more  Create a YouTube video on how to use the service  via Live Chat (www.zopim.com - just one example of a platform that supports live chat).  Via SMS? – at least the delivery notification could perhaps be done on SMS? Category Social Media     Current Strategy Facebook – 781 likes, 6 posts Twitter – 95 followers Google+ – 5 followers 3rd page under “online groceries delivered”           Ordering  NO Phone Orders  Order tracking for registered users only  Confusing navigation  Can check out as guest or log in/register  Can “Reorder” previous orders  Can save specific shopping list as “Usual Order” and reorder it as often as they want  Laid out like a brick and mortar store  Calls out seasonal items  Small section of on sale items       Proposed Strategy Discontinue Google+ Increase followers Add Instagram Engage more with customers through social media Timeliness in responding Focus – maybe just FB and Twitter? YouTube link to ads about featured products or companies Increase Google presence? Name changes: Fans of ShopFoodEx Grocery Delivery -> ShopFoodEx Follow social media norms – their posts are too long and boring. YES Phone Orders Simplify and streamline Quick check-out for customers with established accts? Add/refine order tracking Expand the “on sale” offerings Pricing more competitive with brick and mortar (Horizon Mac and Cheese $2 more than at local store) Category Shipping          Payment App Website     Current Strategy Domestic Shipping (All States) (2-7 business days) Divided by zone for continental US May ship in multiple boxes (auto-extra charge) Cost is high International Shipping APO/FPO/DPO Shipping (1-4 weeks) Spend $100.00 or more and save 33% off your shipping charge Order over 150 lbs., shipping rate will double All major credit cards (Visa MC Amex Discover) PayPal No Mobile App  Add to Cart without clicking item (“Quick View)  “Choose Your Aisle”  CS phone # at bottom of homepage in small font  Tough to see white on the bottom against a pale blue background  Very plain banner at the top  Very crowded entry/home page       Proposed Strategy Create smaller shipping rate chart (condense regions) Find a way to make shipping cheaper (people might start using local companies instead to avoid high shipping rates) Domestic Shipping (1-3 business days) Add overnight/ expedited option Less expensive shipping costs Regional warehouses to reduce rate/fee? We need to look more into this  No changes recommended  Create Mobile App (make sure it’s compatible with the website/inventory)  Put CS # on top of page along with hours of service (Lets customers know we want to assist and we want to assist ASAP)  Less words on homepage (font very small, too busy, make it more inviting)  Add more color/darker color  Have sale category stand out more  Have less on the front page  Be able to zoom into pictures  Better pictures  Simpler website – think www.instacart.com  Replace the “aisles” – something that’s easier to navigate.  Weekly Specials could be promoted better – it’s hiding in one of the pages. Category Online Search Engines Security       Inventory Mgt Data Mining    Current Strategy Google – on page 2; not on sponsored ads up top Yahoo – 1st page, at top Bing – 1st and in ad area at top Authorize.net merchant Did not verify address or phone data on check-out Can store cc # or elect not to Confirmed valid CC # Out of stock items end up being cancelled rather than refreshed as out of stock on website Collects Data? Proposed Strategy  Improve Google rating  Verification/authentication of valid data beyond payment  Stored data security   Ensure refresh of available items online more frequently (Daily? Hourly?)  Use collected data to refine value cluster  Cart abandonments  After the purchase analysis (repeated visits to site, customer service, feedback via ratings sites and social media, etc.) Figure 1: Risk Assessment and Risk Map for Infrastructure Risk register for "back office" technology applications Risk Assessment ID Risk Category Root Cause 1 Privacy External Data hacked - intentional theft of customer data; inadvertent sharing of customer data 2 Fraud - customer specific External Stolen identities Fraud - credit card 4 Data breaches 5 Website outages 6 Spoofing 7 Website vandalism 8 Malicious code Trigger Poor security around customer data; intentiuonal or unintentional data leaks improper or inadequate validation of customer identity Strategy Response Plan Risk Probability Risk Event Impact Accept & Mitigate Communicate with customers in timely manner Implement customer communication plan; offer credit-lock type services Medium Medium Low V. High Purchase insurance coverage where possible; work with 3rd party vendors to validate credit card data Low V. High Implement adequate cyber security or contract with 3rd party provider to assess and implement; provide employee training to reduce issues Low V. High Implement adequate cyber security or contract with 3rd party provider to assess and implement; provide employee training to reduce issues; implement a cloud-based DDoS protection service Low High Implement adequate cyber security or contract with 3rd party provider to assess and implement; ensure adequate router/firewall protection Low Medium Implement periodic/continuous system testing to identify and remediate system vulnerabilities Low Medium Medium High Transfer & inactivate accounts; legal action Purchase insurance coverage where possible; work with 3rd party vendors Mitigate if possible to validate customer identity inactivate accounts; legal action improper or inadequate Transfer & if possible; notify credit card External Stolen/fraudelent credit cards validation of credit card Mitigate companies and appropriate data authorities Hire appropriate resources to Cyber attack; cyber Intentional hacking; unintentional leaking of Transfer & address - whether internal IT Internal/External security issues; technology data by employees/vendors Mitigate personnel or contracted; train failure employees Hire appropriate resources to Cyber attack; cyber Inadequate technology infrastructure; Transfer & address - whether internal IT Internal/External security issues; technology malware; viruses; malicious code Mitigate personnel or contracted; train failure; DDoS attack employees Hire appropriate resources to Cyber security issues; Accept & External Intentional hacking, hiding of true identity address - whether internal IT technology failure Mitigate personnel or contracted Hire appropriate resources to Cyber attack; cyber address - whether internal IT Intentional disrupting, defacing or destroying Accept & External security issues; technology personnel or contracted; test a site Mitigate failure systems to identify and remediate vulnerabilities External Intentional threats to system integrity worms, viruses, Trojan horses Cyber attacks, cyber security issues; technology failure Accept & Mitigate Implement and routinely update Implement adequate cyber security or contract with 3rd party provider to virus protection software; test assess and implement; ensure adequate router/firewall and virus software system; raise awarenes by protection training employees VH H Probability 3 Contingency M 1 8 L 6,7 5 2,3,4 M H VH VL VL L Impact ID 1 2 3 4 5 6 7 8 Risk Privacy Fraud - customer specific Fraud - credit card Data breaches Website outages Spoofing Website vandalism Malicious code Figure 2: Average Online Shopping Cart Abandonment Rate (Smith C. , 2015) Figure 3: Reasons for shopping card abandonment (Monetate Inc., 2016) Figure 4: Attitudes to mobile commerce (PriceWaterhouseCoopers, 2015) Table 2: ShopFoodEx SWOT Internal External Strengths Weaknesses       No local delivery  Cluttered, antiquated website with poor navigation  High shipping costs  Too much variety of products?  No fresh produce  Limited customer service options for customers – email and phone only  Online ordering only Strong existing business Variety of products Excellent BBB rating Wide delivery area Provides services to military Opportunities Threats  Create a “customer experience”  Provide excellent customer service  Large potential market and unmet need for niche online grocery  Expand military deliveries  Implement improved distribution by building warehouse capabilities in key geographic locations  Provide fresh produce  Expand customer service options to include Live Chat and phone ordering  Competition – lots of it!  Supply chain disruptions  Lack of availability of necessary products/resources  Changing customer preferences and tastes Figure 5 Dos and Don’ts of Social Media Figure 6: Wait Times (Li, 2015) Table 3: Comparison of ShopFoodEx and Selected Competition ShopFoodEx NetGrocer Instacart Safeway Wal-Mart Online Only Online Only Online Only Physical Physical Primary Market Target Consumer Convenience Seeker Convenience Seeker Convenience Seeker Physical Physical consumers consumers with with online convenience online convenience Website Tools Yes Yes Yes Limited Cities Limited Items Yes Yes Yes Yes Yes No No Yes No Yes No No Yes No No $11.99 $12.79 $9.67 $10.99 $11.98 (16 Ct.) Nature's Own Bread - Honey Wheat (24 oz.) $7.99 $4.25 (20 oz.) $3.06 $2.49 (Oroweat Brand 24 oz.) $2.68 (In store only) Cheetos Cheddar Crunchy (9 oz. bag) $5.19 $4.49 (8.50 oz.) $3.28 $3.89 $2.88 $8.99 - $293.99 $9.99 - $624.99 Free - $5.99 + ** $9.95 - $12.95 free-$4.97+ ** Yes Yes No No No Cust. Responsible Cust. Responsible Online Order & Tracking Email Live Chat Customer Service 24/7 Contact Availability Product Cost Comparison Starbucks Breakfast Blend K-Cups (10 Ct.) Shipping Fee * International Shipping Available Website www.shopfoodex www.netgrocer. www.instacart www.walmart. .wordpress.com com .com www.safeway.com com * Varies on local store options and selection ** Varies on delivery time request, cart amount, and if Express Member Table 4: Team Contributions Paper* Website Houman Website Design and Consumer Relationship and Supporting Internet Communication Activities Overall theme, design and structure, FAQs; How it Works Miriam Discussion of Supply Chain Activities, Product Distribution and Marketing Consideration, Sales and Consumer Interactions Contact Us, social media Patty Infrastructure considerations (back office, security, shopping cart) + editing Customer testimonials, company history, Community involvement Chris Company info + editing and formatting Shipping, About us (main page) Vidal Company physical and Products internet integrated strategy issues * Everyone assisted in creating Table 1: Current vs Proposed Strategy.