OCADO: A SUCCESSFUL

ONLINE GROCERY
BUSINESS MODEL?
Group 1
Aayoush Gupta - 2011002
Akansha Gangwar - 2011009
Harish Raut - 2011302
Komal Agrawal - 2011111
Mayank Mishra - 2011309
Pallavi Soni - 2011159
Piyush Tripathi -2011170
Sravan Kumar Rapaka -2011196
Whether consumer behaviour differ when shopping for groceries online
vs offline? If yes, how?

Online Ambiguity regarding product offerings

More time evaluating the prices and offers at multiple brands

More focused on brands to get assured quality and quantity

More focus on after sales support

Offline Clear understanding of the quality and quantity of the product

Planned purchases for a period of time

Importance of on-site customer support

Driven by personal relationships

What customers want from an online grocery store?

Attractive Offers
High Quality Products
Product Information
After sales support
Competitive Pricing
Convenient Delivery Slots
Analyze the pros and cons of the distribution model of Ocado

Pros Having a fulfillment center – Provides control on the inventory

Reduced food wastage and fresh product offerings

Automated sorting and picking stations to reduce human errors

Lower carbon footprint

Cons Low geographical reach

High setup costs because of where house and technology invetments

Need of highly trained staff to effectively manage the Information system

Increased mismatch in the delivery – either arriving too early or too late
Analyze the pros and cons of the distribution model of Tesco?

Pros Wider reach by using existing stores as distribution centers

Lower preparation time per order

Zoning helps to better match the customers expected delivery times

Cons Increased costs because of using the stores as DCs

Investment in the Information system to facilitate the information sharing

What should be the future strategy of Tesco online and Ocado?

Tesco

Ocado Pickup stores – To reduce the delivery costs and allow the customers to pickup at
convenience
More distribution centers to increase the area of their services

Purchase of non-perishable items in bulk to get attractive discounts

Live tracking of the orders for the customers