This company is the leader in online retailing of groceries. It is the ideal service for those
individuals who are simply just to busy to physically go into the stores and purchase their
groceries, so what they do is order it online and it gets delivered to them in under 90
minutes. It is also convenient for those who are physically unable to go shopping as well.
Grocery gateway has over 100000 registered users, and is available 24/7. According to
research, grocery gateway saves a consumer roughly 136 hours a year of grocery
a) What are its products and services
Grocery gateway provides delivery service of grocery goods to customers
homes, through the ordering processing using the website and mobile app.
Their business model is Business to Consumer (delivering goods to
homes), and Business to Business (delivering groceries to offices) Grocery
gateway operates entirely online making it an ecommerce. The online
website and application for your phone, allow the consumer to select what
products they want and how much of it, for a simple fee of $6 delivery.
b) Describe the supply chain
Longo Brothers Fruit Market Inc. purchased grocery gateway in 2004.
Since there are so many Longo’s locations in the GTA, this makes
deliveries easier and quicker as the groceries are stored in bulk at those
locations. Grocery gateway uses the Descartes Systems Group, an on
demand logistics management solutions provider, to optimize GG’s routes
and distributions. GG purchases all of goods in bulk, stores them in their
distribution centers, then drivers are instructed a list of orders and
locations in real time, and proceed to deliver these items within 90
minutes. With the help of GPS enabled mobile phones, Descartes’ Fleet
Management Solution can account for traffic jams, last minute customer
requests and cancellations, and provide the appropriate driver with the
appropriate solution to ensure customer satisfaction. With the help of
Descartes Systems Group, FF has improved its on time delivery
performance by 14% and is exceeding its yearly stops per hour by 12.4%.
c) Who are their competitors?
Online grocery shopping is becoming more and more popular as the use of
online shopping through the Internet and mobile phones increase. Grocery
Gateway’s competitors include WalMart, Thrifty Foods, Safeway, and
Michael Angelo’s. In terms of organic groceries, GG’s competitors include
Front Door Organics, Mama Earth Organics and Green Earth Organics.
These three companies provide “baskets” of organic selection for a cost of
roughly $37, unlike GG, which allows customers to customize their
orders. Since all of these businesses deliver groceries, Grocery Gateway
must maintain competitive prices and delivery fees. Regardless of their competition, GG remains the leader in Canadian online retailing of home
and office delivered groceries.
What is their strategy to compete
d) Grocery gateway has many competitive advantages. Firstly, they promise a 90
minute window of the time of order to time of delivery. Their competitors do not.
Secondly, they have over 7500 items on their website to offer. This wide variety
includes popular food items, organic items and specialties. Just like any
supermarket, they have a weekly online flyer, which promotes sales for that
week. Their prices are competitive with local grocery stores, and their fixed
delivery rate per order (which is about $611 according to research), is still lower
than other online grocers. Not online do they have an application for mobile
devices, which allows for ordering to be made anywhere conveniently and
quickly. They also have a rewards program. This program is call “Thank You
Reward Points”. This system works by earning a certain number of points per
dollar earned, which eventually will be redeemable for money. This app provides
suggestions for the customer according to past preferences, ingredients,
preparation instructions, and nutritional information.
GG operates completely online by using ecommerce. With the help of e
commerce, customers can make an account online and make their
selections wherever and whenever they want at
www.grocerygateway.com. Not only can they pay using their credit card
over the Internet, but they can also view their past purchases, select their
preferred time of delivery, cancel their order or add to their carts. Since
GG is all about being accessible to everyone, their website uses a software
called “eSSENTIAL Accessibility” which allows those with physical
disabilities to work their websites despite their disability. This can
include : voice commands, touch screens etc. On their website they
provide contact information such as customer service response telephone
numbers (both for local and long distance customers), email address, and
location of corporate headoffice.
Database, data warehouse and BI
GG uses databases for many things. Firstly, GG uses data bases to
store customer info. For example, prior to checking out, customers must
have signed in by using a username and password. This account allows
customers to input their payment information if they choose online. When
they do so, databases save this information and use it for future checkouts
so the customer does not keep having to input their credit card numbers,
expiry dates etc. Also, with the help of databases, prior purchases and
selections are saved so if a customer continues to buy the same things, they can do so easily. Based on their past purchases, databases are always
updated, so suggestions can be relative. The databases they use save
customer information such as delivery address and telephone numbers. On
the inventory side, gg uses databases to manage their inventory levels at
their distribution centers so no customer will run into a problem where
there good is “unavailable or out of stock”.
As mentioned previously, GG is focused on the convenience for their customers,
hence the whole point of delivered groceries. In order to maintain convenient for their
customers, GG saves all of the customers’ purchases and payment information, so when
they make purchases in the future, they do not need to repeat their steps, whereas they
can just choose the option to use their saved selections and credit card. Suggestions are
also made based on their behavioral patterns. To do all this, GG requires the customer to
make an account. GG also has a loyalty program, which gives discounts to those
customers who collect points per dollar. GG provides customers with 2 different types of
phone numbers, an email address, and corporate office location so that if the customer
ever needed personal interaction with a representative, they can easily. They also provide
the option of selecting your own delivery time so that you are ready to receive the goods,
and the option to pay at the door if you do not want to use a credit card. These options are
to optimize customer satisfaction.
Internet and collaboration technologies
GG has collaborated with Apple Store and Google Play in order to create an
application, which would be available to mobile users via Internet. Without the internet
GG business processes would not be possible. The Internet allows anyone in the GTA to
access the website to place their order. The Internet also allows people on the go to place
an order through their mobile device. Grocery Gateway is also in collaboration with
Longos. Since the same company owns them, most items available at Longos grocery
stores will be available online so customers can receive the same great quality and
freshness as they would instore.
Shell is one of the nation’s largest integrated petroleum companies and is a leading
manufacturer, distributor and marketer of refined petroleum products. There is about
1800 Shells in Canada. The first shell gas station opened in Montreal in 1911. Today,
shell has over 90 000 employees in over 80 countries and territories. Shell made over $46
billion in net cash from operating activities in 2012 alone. Not only does shell provide
petroleum and gas for consumers, but it has now become a onestop shop for customers
looking to buy goods such as s