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