E- Grocery Case Study

•Submitted By : Samarth Yadav | 2011144

PGP 2020-22 | IIM Bangalore
Present Situation and The Problem:

A market leader traditional grocery store in Boston

A traditional competitor entering e-commerce

New Competitors : A chain with no grocery stores but only internet delivery

To device a Market Entry Strategy for traditional grocery store

 Market and It’s Attractiveness:
Client’s Customers:
• Given the city of Boston, existing customers :
• Middle & Upper Middle Class
• Customers to Aim : Upper Middle Class (Since e-commerce)

Market for E-Grocery:

• As observed world-wide, e-grocery market is showing growth*
• Approved by the fact that:
• Existing stores are entering this space
• New stand-alone companies are coming up
• It is safe to assume that internet connectivity is everywhere
• and is on the rise constantly

Deduction: The market is attractive

*The global online grocery market size was valued at USD 189.81 billion in 2019 and is projected to register a CAGR of 24.8% from 2020 to 2027 (grandviewresearch)
 Considerations for Market Entry:
Is the present human resource pool capable to handle new market?
• Assuming that current employees have only worked in traditional setup, following
will have to be done
• New hires that are accustomed to operations for e grocery
• Cross functional training to existing employees

Is the grocery store, although being a leader in traditional market, may lack
infrastructure to address operations on internet?
• As the market as well the competitors are growing,
• The store should invest in developing infrastructure for internet-based operations.
• Improve distribution capability
• Decide whether
• to improve existing infrastructure
• or develop a completely new setup for online grocery
 Considerations for Market Entry:
What are the requirements for new/developing infrastructure?

A study and scrutiny of Customer demographic to understand better

• What is being bought more online
• Who is buying more online
• And from where are they buying ( their location as well competitors)

Develop an inventory management system that is capable of tracking

• Supplies and Suppliers
• Stocks
• Deliveries
• Storage variety may need improvement as perishables may need storage for
longer now
 Final Thoughts:
The grocery store should plan on venturing into digital space as is the
need of the hour.

The following points must be considered:

The new customers
would expect similar
standards as that of If standards aren’t met, The new venture may
traditional store, hence customers have an easy cannibalize on the
quality standards must switch in case of e-grocery. traditional store
be attained before
launch.