This master thesis starts out with exploring the development within the online grocery sector throughout the last decade, both foreign and domestic. On this basis the thesis identifies the attractiveness of the market in Denmark and deduces a strategy for the three largest grocery retailers to successfully access the online grocery market. The three largest grocery retailers are: • Coop Danmark A/S • SuperBest A/S, who co-owns Dagrofa S-Engors A/S • Dansk Supermarked A/S The technological development and the change in consumer behavior over the last decade has made online shopping growing rapidly. UK retailers have utilized this development and have had great success in the online grocery market. This indicates and demands not only that the consumers are willing to make their purchases online, but also that the technological infrastructure is fully in place, both on the retailer side and the consumer side. The thesis, therefore, concludes that the market for online groceries is accessible and ready, but that there are still obstacles which the three largest grocery retailers need to overcome. The online grocery market is still quite small, and the knowledge of this way of shopping amongst the consumers is still low. All three retailers are fighting for the same consumers and, therefore, there is a high level of rivalry within the industry meaning that the consumers have a lot of power. In order for the retailers' online shop to be successful the thesis deduces that the retailers need to spread awareness about online shopping of groceries among consumers and abide by their high standards when it comes to quality, convenience and price. Price is an important factor and in order to keep the price level down retailers must use their already established infrastructure, and utilize existing supermarkets as a basis for distribution. In order to spread the knowledge of online shopping of groceries retailers must use not only traditional TV campaigns, but also the marketing opportunities that the internet and the social media provide. As for convenience, retailers must focus on making their websites easy to access, delivery must be fast and on time and the quality of the goods must be high. As far as the designing of the website functionalities is concerned, retailers need to look into various actions, such as switching costs because of customized offerings and switching costs resulting from customer incentive programs, in order to increase consumer loyalty. In order to reduce the conflict between online and offline shopping possibilities retailers must implement different actions for each of the two ways of shopping and market them to different consumer segments. The thesis concludes that the optimal strategy for retailers' online supermarkets is an outpacing strategy. The outpacing strategy focuses on lowering the costs whilst offering the consumers convenience through differentiation. Therefore, an outpacing strategy makes retailers capable of incorporating the above-mentioned factors and by using in-store picking retailers will be able to keep the price level down.
|Educations||MSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis|
|Number of pages||126|