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Contents
Executive Summary ................................................................................................................... 2
Business Perspective................................................................................................................. 3
Description ............................................................................................................................. 3
E-commerce models............................................................................................................... 5
The e-grocery sales in US................................................................................................... 6
Revenue Model................................................................................................................... 9
Analysis of industry................................................................................................................12
SWOT analysis......................................................................................................................13
Competitors’ analysis.........................................................................................................13
CRM......................................................................................................................................16
Consumer behavior............................................................................................................16
Target audience.................................................................................................................17
Advertisement....................................................................................................................17
CRM ..................................................................................................................................17
Technological Perspective ........................................................................................................18
Framework.........................................................................................................................18
Main functions....................................................................................................................19
Recent technological innovations.......................................................................................20
Competitive advantage ......................................................................................................20
Website usability analysis ..................................................................................................20
Current issues and needs .........................................................................................................23
Future Vision.............................................................................................................................25
Conclusion................................................................................................................................26
Reference .................................................................................................................................28
Madinakhon Tursunboeva Tashkent 2017 2
Executive Summary
This academic report represents analysis of Peapod company, which is the largest e-
commerce grocery delivery business all over the US. The background information and
analysis of business perspective is described in the first part of the report. The second
part contains the analysis of technological side of the company. By accomplishment
both of the components, the issues and needs were identified by using Porter’s five
Forces, SWOT, Turban and other techniques. As a result, the major weaknesses
among direct competitors, such as delivery timing, pricing etc. were defined.
Furthermore, the threats of substitution and Peapod’ market share loose were
recognized. Thus, it is important for Peapod to take actions in order to prevent dramatic
impact. To do so, the possible solutions were proposed with a reference to the current
best practices. Moreover, the future vision of the company was identified in the last part,
and points that should be undertaken were listed. Finally, the short summary of the
report is provided in the conclusion part.
Madinakhon Tursunboeva Tashkent 2017 3
Business Perspective
Description
Peapod LLC is an Internet Grocer which operates in United States since 1989
(Bloomberg.com, 2017). The company was found by Parkinson’ brothers and became a
wholly owned subsidiary of Royal Ahold, which is international food provider (Peapod
LLC, 2017). Peapod is a B2C business, service provides delivery of groceries anyhow,
anytime and anyplace. The payment types exclude cash, but accept direct checks
(electronic method), gift cards, credit cards and debit cards (Peapod LLC, 2017).
Peapod works in partnership with Stop & Shop, Giant Food and other Ahold USA
supermarket companies (Csus.edu, 2017). Peapod has the following:
 Dream – To fundamentally improve lives by bringing interactive shopping to a
broad customer market (Csus.edu, 2017).
 Mission – To be the world’s leading and preferred provider of interactive grocery
shopping services (Csus.edu, 2017).
 Passion – To delight and amaze each one of the customers every single day
(Peapod LLC, 2017).
 Promise – To provide 100% Satisfaction (Peapod LLC, 2017).
The stages of company development are represented in Figure 1.
Madinakhon Tursunboeva Tashkent 2017 4
Figure 1. Peapod History (source: Peapod LLC, 2017)
Madinakhon Tursunboeva Tashkent 2017 5
Figure 1. Peapod History (source: Peapod LLC, 2017)
E-commerce models
Nowadays, different e-commerce companies use strategic variations within the
business models. However, the following business models dominate in the industry of
online grocery (Niu, 2017):
Madinakhon Tursunboeva Tashkent 2017 6
 Pure-play – e-grocers do business only online. Such companies run their website
and automate warehouses for order picking and delivery. This business model is
used by FreshDirect, Streamline and Webvan;
 Brick-and-mortar – groceries add online service. Traditional model of operating,
such companies hire designed pickers, who will assemble online orders. This
business model is applied by Albertson’s, Safeway and Tesco.
Peapod LLC pursues combination of both pure-play and brick-and-mortar models (Niu,
2017). In “Strategies for success in the e-grocery industry” dissertation, Niu provides the
following evidences: Peapod, as Royal Ahold subsidiary, works with most markets by
using brick-and-mortar model. Meanwhile, in Washington D.C. and Chicago, Peapod
runs two state-of-the-art freestanding warehouses for deliveries and order picking.
However, both of the strategies are different ways of communication with target
audience. Bloch et al. (2017) states that the merger of business models brings to
envision of new opportunities for business entities. As a result, the company surround
the most part of the market which will be beneficial for the company and vendors.
The e-grocery sales in US
Statista (2017) highlighted e-grocery shopping sales in US in 2012 and estimated until
2021. As it visible from Figure 2., the revenue in 2017 is increased by 2.2% comparable
to 2016, and grown up more than twice during 5 years. Moreover, Weinswig (2017)
claims that according to Kantar’ data, e-commerce’ market share will jump up more than
2%, however, only packaged products should be captured in these statistics. By this,
Weinswig means that fresh produce category has to be excluded from this chart, due to
the fact that customers prefer to buy fresh unpackaged goods in-person (2017). This
Madinakhon Tursunboeva Tashkent 2017 7
can be justified by Figure 3., where shopping preferences of customers are illustrated.
Nevertheless, the revenue of Peapod in 2016 is estimated at $864.3 million (Sweeney,
2017), which means that e-grocery with fresh produce still contributes to overall sales of
US.
Figure 2. US e-commerce sale statistic (source: Statista, 2017)
The Figure 4. displays the growth of e-grocery business among US and Europe in
summer 2016. Thus, it is clearly visible that e-commerce is becoming a global trend, it
annually increases in sales, but it cannot be concluded that companies with the e-
commerce main model will continue to grow successfully. Finally, Peapod is still the
largest and popular e-grocer in US which strives to compete in the industry by
introducing new features and qualified service.
Madinakhon Tursunboeva Tashkent 2017 8
Figure 3. US Shopping preferences in 2016. (source: Statista, 2017
Figure 4. E-grocery share in June 2016. (source: Weinswig, 2017)
Madinakhon Tursunboeva Tashkent 2017 9
Revenue Model
According to the research paper by Lucky (2017), business model of Peapod became
operational once client awareness and client acquisition resulted number of new clients
and number of repeat clients (Figure 5.). As long as the number of repeat clients and
new clients increase the number of orders and number of delivered orders, obviously,
the Back-End expenses start to grow, these dependency is illustrated in Figure 6.
Hence, Peapod revenue consists of components listed in Figure 7.
Figure 5. Front-End Cost Components. (source: Lucky, 2017)
In 1992-1996 Peapod started expenditure of this model in new geographical locations,
which led to increase of expenses. In result, the company added new revenue
components. Nevertheless, the cost structure was greater than revenue, therefore,
Peapod had to rely on external investment. In 1997-1999, Peapod started operation of
Madinakhon Tursunboeva Tashkent 2017 10
designed warerooms for efficiency improvement and indirect cost reduction. Though,
during these periods it was demonstrated how vital the initial model was for Peapod.
Thus, the Peapod’s model is still anchored to number of both clients, new and repeat.
Since Royal Ahold purchased controlling interest of Peapod, no partnership was actual,
hence, Peapod was instantly categorized as the Hybrid (Lucky, 2017).
To summarize, Peapod’s revenue model can be defined as subscription/membership
fees. Peapod charges $6.95 for orders above $100, $9.95 for orders above $60 (min
order size) and $2.95 pickup fee (Peapod LLC, 2017).
Madinakhon Tursunboeva Tashkent 2017 11
Figure 6. Back-End Cost Components. (source: Lucky, 2017)
Figure 7. Peapod’s Revenue Components. (source: Lucky, 2017)
Madinakhon Tursunboeva Tashkent 2017 12
Analysis of industry
In order to analyze the industry of Peapod, the Porter’s Five Forces method has been
formulated (Figure 8).
Figure 8. Porter’s Five Forces for Peapod
Threat of
Entry
• Requires huge capital investment (establishment of brand name)
• Food retail markets are already captured by existing e-grocers
• Requires product differentiation (at exceptional low price/high quality)
• Requires authorization from local government
• Requires managerial-know-how
• Takes long adjustment period in this industry
Threat of
Rivalry
• Diversity of competitors
• Declining industry growth
• Warehouse/Office/Location cost
• Low product differentiation
• Brand identity
• Exit barriers
Threat of
Substitudes
• Substitution of customer’ needs in different way
• Substitutes from outside an industry
Threat of
Suppliers
• Relativity of forward and backward integration by companies in the industry
• Lack of agricultural suppliers (area limitations, seasonal availability of products)
• Product differentiation (organic/non-organic)
Threat of
Buyers
• Customer concentration vs. company contration
• Consumer-sensitive industry
• Vertical integration (customers may shop by themselves/or hire someone)
Madinakhon Tursunboeva Tashkent 2017 13
According to the analysis, the optimal strategy for Peapod is to concentrate on
relationships with customers, try to remain on current market share and to increase
expand supplier’ coverage.
SWOT analysis
Figure 9. Peapod’s SWOT analysis
Competitors’ analysis
In order to identify competitors, Peteraf and Bergen’ mapping framework has been used
(Bergen et al., 2017). The Figure 10. shows identification of competitors by market
commonality and resource similarity. As a result, the direct, indirect and potential
competitors can be defined.
 Direct competitors, offer the essentially the same service as Peapod; Therefore,
such companies implement competitive advantages, for instance, Instacart
delivers the order in 1 hour;
STRENGTHS
• Free pickup service (S1)
• Cost advantages of
products (S2)
• 100% satisfaction
guarantee (S3)
• Partnership with 24
giant groceries (S4)
• Large Marketshare (S5)
• 24h service (S6)
• Brand recognition(S7)
WEAKNESSES
• Competitative Market
(W1)
• Lack of conviniet
features (next day
anytime delivery)(W2)
• Delivery cost (W3)
• Poor loyalty program
(W4)
OPPORTUNITIES
• New products and
services (O1)
• New Markets (O2)
• Worldwide expendature
of the company (O3)
• Branch into other
subsidiaries and
markets (O4)
THREATS
• Losing of market share
to competitors(Rapidly
expandature of Amazon
Fresh and other e-
groceries) (T1)
• Seasonal Changes (T2)
Madinakhon Tursunboeva Tashkent 2017 14
 Indirect competitors of Peapod, satisfy the customer need, but in different way.
For example, Whole Foods provides with only organic products; Wal-mart wide
range of products with low price etc;
 Potential competitors of Peapod serve different market, but has similar
resources. For instance, GrubHub and Uber eats deliver food from restaurants
and cafes; DoorDash and Postmates deliver any goods locally;
Figure 10. Mapping the competitive terrain (Bergen et al., 2017).
Direct competitors Indirect competitors Potential competitors
Amazon Fresh Whole Foods GrubHub
FreshDirect Wal-mart DoorDash
Instacart Kroger UberEats
Safeway Tesco Postmates
Table 1. Peapod’ competitors.
Peapod
(Peapod
LLC,
2017)
Amazon
Fresh
(Amazon.com
, 2017)
Instac
art
(Instac
art,
2017)
FreshDirect
(Freshdirect
.com, 2017)
Safeway
(Safeway.
com,
2017)
Category Grocery Grocery/amaz
on.com
Grocer
y
Grocery Grocery
Madinakhon Tursunboeva Tashkent 2017 15
Table 2. Peapod direct competitors’ assessment.
The direct competitors’ analysis has been performed using criteria taken from
developed SWOT analysis. As a result, advantages of Peapod are clearly visible, as
well as the following disadvantages:
 Expensive service fee; Client pays almost $10 for one-time order under $100,
meanwhile Instacart charges $5.99, FreshDirect $6.99; AmazonFresh $7.99;
1Followers and reviews on Facebook (Owler.com, 2017)
2 Based on yelp reviews (Yelp, 2017)
Service Delivery/Pi
ckup
Delivery/Picku
p
Deliver
y
Delivery Delivery
Mobile version
of app
Yes No Yes Yes Yes
Service fee $9.95 for
min order
$60; $6.95
for $100<;
pickup
$2.95;
$7.99 one
time; $50<free
orders
$5.99
one
time;
min
order
$35<fr
ee
orders
$6.99 one
time; min
order $40
$12.95 for
<$150;
Min order
$50
Membership $99/year $299/year; $99/ye
ar
$129/year; n/a
Same day
delivery
No (next
day)
Yes Yes No (next
day)
Yes
Loyalty
programs
Yes No No Yes Yes
Option to
change order
Yes Somewhat Yes Yes Yes
Brand
recognition1
High Low Low Medium Low
Warehouses/In
ventory
Yes (24) Yes No Yes Yes
Owned Trucks Yes Yes No Yes Yes
Customer
Service2
3.5 (265
reviews)
3.5 (2 reviews) 1.5 (69
reviews
)
3 (603
reviews)
2.5 (556
reviews)
Madinakhon Tursunboeva Tashkent 2017 16
 Minimum order requirements; Peapod’s min order is $60, meanwhile Instacart
requires $35, FreshDirect - $40, Safeway and AmazonFresh requires $50;
 Delivery timing; Peapod delivers only on next day, whereas AmazonFresh,
Instacart and Safeway deliver on the same day;
Please refer to Current Issues and Needs Part of Peapod for continuation of analysis’
outcomes.
CRM
Consumer behavior
Nowadays, consumer behavior and marketing are changing up the technologies, as
people are living more faster and more productive lifestyles. Therefore, people are
looking for instant gratification solutions. According to Carrie Bienkowski, Chief
Marketing Officer of Peapod, basket size and frequency of purchase are vital factors of
any e-commerce company (eMarketer Retail, 2017). This was already mentioned in
Revenue Module Part. Thereby, Peapod is trying to follow the industry trends and
features which result its clients to spend more. Thus, Peapod introduced reordering
functionality by simple scanning a barcode. For example, if some certain food is almost
out, a client scans the code which automatically is added into the next order delivery
(Internationalconsumerbehavior.com, 2017). Also, in Spring 2017, Peapod’s website
filtering feature was expanded. Now, filter includes:16 specific nutrition preferences,
sugar-free, non-GMO, Vegetarian, Vegan, etc. (Prnewswire.com, 2017). In Summer
2017, “Ask Peapod” was launched by Peapod. This feature enables a user to hand-free,
voice-ordering of weekly specials (Prnewswire.com, 2017).
Madinakhon Tursunboeva Tashkent 2017 17
Target audience
According to Gupta (2017), Peapod’s target audience is:
 35 years old;
 Married with children;
 College-educated, professional;
 Family income $100,000;
 Suburban metropolitan area;
Advertisement
Currently, Peapod is targeted on out-of-home advertisement, which encourage
customers to download the app:
 Banner advertisement; Peapod places banners with products and barcodes,
which enables customers to shop on-the-go (Outfrontmedia.com, 2017);
 Digital display vehicles; Peapod introduced interactive mobile truck which
displays video explanation of the service, partner brands and HQ codes
(Emcoutdoor.com, 2017);
CRM
Peapod build the customer service on exceeding expectations of clients and providing
superior and friendly service for each client (Csus.edu, 2017). Peapod stands for 100%
Satisfaction Guarantee, which means if something goes wrong about shopping
experience or order does not correspond to a client’s likings, the company will make it
right. Thus, Peapod offers terms “how, when, where” allowing 24-hour service, free
pickup locations for on-the-go customers that takes less than 5 minutes (Loyalty360.org,
Madinakhon Tursunboeva Tashkent 2017 18
2017). Currently, Peapod has 4,600 employees/associates all over the US, in order to
provide qualified and timely service (Peapod LLC, 2017). Thus, Peapod employs the
following elements of CRM (Peapod LLC, 2017):
 Customer Care/Inquiries by call - Mon-Fri: 8am-11pm | Sat-Sun: 8am-4:30pm
ET;
 Customer Service by call – 24/7;
 Customer support by email;
 Customer review on products, orders, delivery;
 Clever ways to save money; weekly specials, coupons, shop by price, PodPass
etc.
 Smart shopping; order genius (autofill cart, shopping history);
 Express shop; (quick locate and shop);
 Sort and filter features; (based on customer requests);
Technological Perspective
Framework
Peapod started operation as web application platform, but with the age of changing
technologies the mobile platform has been launched as well (Peapod LLC, 2017).
Nowadays, both of the platforms are widely used, although, Peapod is more
concentrated on promotion of mobile application, which is designed for both iOS and
Android. According to Turban et al. (2015), in order to perform an e-commerce
application, every company needs a right structure, right information and proper support
services. Thus, the overall framework of Peapod is as follows:
Madinakhon Tursunboeva Tashkent 2017 19
 People:
o System: System Administrator, Design Administrator, Content Manager,
Listers (those who post products with description);
o Service: Call-center associates, Delivery people, Order pickers, Packaging
personnel;
 Policy: the US Constitution;
 Marketing: Times Direct Marketing Inc.;
 Support services: Visa, Mastercard, American Express;
 Business Partnership: Subsidiary of Royal Ahold, partnership with Stop & Shop,
Giant Foods, McLane Group (logistics) etc.;
Main functions
 Filter by category, products, brand, nutrition etc. (overall 16);
 Search engine with filtering by product name;
 Browse items/specials/discounts/sales;
 Register/login/view/edit profile;
 View order history/basket/search history/nutrition;
 Order view/placement/replacement;
 Select type of service delivery/pickup;
 Schedule delivery/pickup;
 Select type of payment Visa/MasterCard/gift cards etc.;
 Validation and confirmation of inputs;
 Refer friend via email/Facebook/Twitter;
 Save favorites;
Madinakhon Tursunboeva Tashkent 2017 20
Recent technological innovations
 2017 - Ask Peapod; voice-ordering feature;
 2017 – 16 nutrition preference filters;
Competitive advantage
According to Parkinson, the co-founder of Peapod, the competitive advantage of the
company are suburbs (Dallke, 2017). The CMO Carrie Bienkowski stated that: “…there
is myth that e-grocery will be driven by urban millennials, but Peapod’s numbers
disprove this statement.” (Dallke, 2017). Thus, suburbs are the only powerful advantage
that helps Peapod to survive in this competitive industry during almost 30 years.
Currently, only AmazonFresh introduced voice-ordering feature, thus, it is an advantage
of Peapod among other direct competitors. Considering 16 nutrition filters, only Peapod
has such amount of preference filtration and the number continues to grow.
Website usability analysis
Turban et al. (2015) proposed the important criteria for website usability assessment,
which were used for Peapod’s website:
 Navigation. Navigation of peapod.com website is classic, logical and
understandable for user. Peapod’s logo navigates a user to the home page, the
navigation bar is static and responsive to mouse. Above the bar, the search input
field, login button and order information button are located. These components
make navigation effective and efficient.
Madinakhon Tursunboeva Tashkent 2017 21
 Consistency. All design elements are following one style which corresponds to
logo of the company throughout the website. Terminology compliance with the
industry and language.
 Response time. According to Developers.google.com (2017), the web
peapod.com has a long response time and needs to be optimized (60 from 100),
as well as mobile version which has only 44 out of 100. The mobile version of
peapod.com took more than 2 min to display the website (3G connection).
 Appearance. The design of website is very elaborate. The colors are visually
pleasing and corresponds to the brand image. The fonts are readable even if to
perform 50% zoom out. The overall appearance is harmonic.
 Quality insurance. All functionalities are working properly. The price is correctly
added when the item is picked for order and vice versa. The delivery cost is
changing when the user exceeds $100. All the links are navigating
correspondently.
 Availability. During the development of this academic report the peapod.com
was always available to access from PC and mobile devices. Although, for the
usability analysis, the website.grader.com, dareboost.com and
nibbler.silktide.com has been used, BUT peapod.com was not available for them.
Which means that peapod.com does not allow external websites to use and
analyze their data.
 Interactivity. The interactivity is poor, only photo slider has hover interaction,
other elements of the website does not response on mouse. However, the
buttons are hovered when clicked. The contact types are provided and divided
Madinakhon Tursunboeva Tashkent 2017 22
into email and phone contacts. However, no online conversation is added. A user
is allowed to leave feedback through the website or Facebook. The phone
numbers are provided with working hours.
 Content. peapod.com contains only order-related information, but on
about.peapod.com a user can find any information related to the business:
history, description of business flow, blog etc. So, the contents are relevant for
every category. Every item is descriptive, has image and nutrition facts. Thus, the
content is informative and written in understandable way (spoken, friendly
manner).
 Usability. The website is understandable, there are “Add to cart” buttons under
each product, so there is no need to go to item profile for adding it. The cart
button is located in navigation bar, so it is easy to check what is already chosen
and perform edit/delete operations. For those, who did not understand how to
use the app, Peapod provided manual “How it works” on the home page.
Moreover, there is a video on Peapod YouTube channel.
 Security. Peapod provides security of customer’ personal information via
VeriSign™. All terms and conditions are provided in Policies section. Peapod
guarantees security of stored data. The http protocol is secured when proceeding
the order.
 Scalability. During 28 years the peapod.com has been modified plenty of times,
which means that the structure has been adopted for the new adding of features.
Royal Ahold considers Peapod as innovative and customer oriented business,
therefore, the company is prepared for any development of an application (Dam,
Madinakhon Tursunboeva Tashkent 2017 23
2017). Moreover, the web application tool Developers.google.com (2017), did not
suggest any enhancements on scalability.
Current issues and needs
This part is dedicated to analysis of issues with which Peapod may face in the nearest
future, the current problems and needs identified during this report and potential
responses to them.
In order to interpret this weaknesses and threats into Peapod strength, it is suggested to
introduce fast-delivery service by following the concept of Amazon Restaurant,
GrubHub and Postmates (Carson et al., 2017). The concept is as follows:
1. the company deploys application via which freelancer/driver registers into the
system by providing SSN3 , driving license, car insurance and other documents;
2. the company provides a freelancer/driver with a fixed salary per hour;
3. all orders and order information are provided in the application, so client and
freelancer/driver have contact information of each other and delivery details;
4. the company gets percent of each sale;
Advantages of this proposal is that Peapod will cut fuel and car insurance expenses.
The company will continue own business model, meanwhile providing customers with
additional service. Basically, Peapod’s staff is operating similarly, but drivers are
recruited in-person and trained. Also, Peapod won’t pay taxes for personnel and
overtime rate, due to the fact that freelancer/driver will work hourly and part-time, so
3 SSN- Social Security Number
Madinakhon Tursunboeva Tashkent 2017 24
he/she will be responsible for tax payroll. Disadvantages are in capital investment for
app development and customer service will be at risk, due to training absence. Another
way of weakness exclusion is to make a partnership with Postmates or GrubHub. Thus,
application development expenses will be avoided and both of the companies will
benefit. By implementing this solution:
 Market share will be increased (T1);
 Partners’ competitive advantage will be obtained (W1);
 Delivery expenses will be reduced (W3);
 Fast-delivery service will be added (W2, O1);
 New market will be discovered (food delivery) (O4);
The performed analyses in Business Perspective Part identified that Peapod is under
threat of loosing market share, probability of which is high. This was mentioned by
Sweeney (2017) and justified that in recent decades Peapod market share went down
due to new e-grocers, especially AmazonFresh. As far as Peapod is highly depended
on its customers (Revenue model part) it is crucial to keep repeat customer loyal and
discover new ones. Therefore, it is suggested to Peapod:
 To revise loyalty program and enhance “earn and redeem” awards. According to
Forbes article “The Best Loyalty Programs Go Beyond Rewards” customers
choose particular service or product due to opportunity to gain some points
(Hyken, 2017). Hyken states that this practice used by Starbucks and Walgreens,
helps to keep the applications ‘on top of customers minds’.
Madinakhon Tursunboeva Tashkent 2017 25
 To introduce seasonal promotions, such as service free-trial as Blue Apron did
(Harwees, 2017). This experience helped to Blue Apron to engage new
customers with company’s service, which significantly increased customer’s
awareness.
According to Developers.google.com (2017), for the better usability of Peapod’ website,
it is suggested to optimize:
 Images;
 JavaScript and CSS;
 Cookies and cache;
 Landing page redirects (minimize);
By implementing Developers.google.com’ proposed guidelines, the website’s usability
will be significantly increased.
To conclude, it is suggested to Peapod to introduce same-day delivery, to enhance
customer loyalty programs in order to meet the company’s promise, mission and
passion, and to optimize the application.
Future Vision
According to Royal Ahold (Ahold Delhaize, 2017), the parent of Peapod company, the
following components are key to the future:
 Customers’ savings: better quality, smarter operation, less wastes;
 Fund growth in key channels: eCommerce, supermarkets, smaller formats;
Madinakhon Tursunboeva Tashkent 2017 26
 Investment in customer proposition: affordability, best own brands, healthier and
fresher, local and personal service;
In correspondence with above mentioned strategy, Peapod has launched Peapod
Propulsion Labs in order to restore the scrappiness and innovation which were lost over
the years (Sweeney, 2017). As it was mentioned before, presently, Peapod is oriented
on m-commerce in order to reinforce brand identity, encourage impulse shopping and
provide with the niche of e-commerce – convenience (Reed, 2017). By this, it is obvious
that the company is focused on delivering great service and smart growth, which were
justified by CMO Bienkowski (Dallke, 2017). Presently, Peapod is trying to get smart
with logistics and as CEO Parkinson stated: “Our competition still struggles with that,
and I think we’ve figured that out over the years” (Dallke, 2017). Which means that in
the nearest future Peapod will definitely work on that. Thus, Peapod undertook first
steps towards the mission and vision of the company. Additionally, the following actions
are suggested to be taken into consideration:
 Improvement of loyalty program;
 Enhancement of the applications;
 Partnership with potential competitors;
 Advancement of delivery service;
Conclusion
To summarize, Peapod is the largest and experienced e-commerce company in the US,
which has already achieved brand recognition and successful combination of e-
commerce models. During the decades, Peapod continues to survive the competitive
Madinakhon Tursunboeva Tashkent 2017 27
industry by provision of qualified and friendly service in suburb areas. Year by year,
Peapod introduces best practices and innovations common in the sphere. However, the
company still has threats and weaknesses, which were identified during the report by
using different analyses tools. Based on outcomes, problems and needs such as
delivery timing, fees and loyalty program were identified and possible solutions were
described. Finally, the enhancements of previous points will lead to Peapod’s mission
achievement.
Madinakhon Tursunboeva Tashkent 2017 28
Reference
1. Ahold Delhaize. (2017). Strategy. [online] Available at:
https://www.aholddelhaize.com/en/strategy/ [Accessed 19 Nov. 2017].
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Peapod Research and Analysis of E-commerce by Madinakhon Tursunboeva

  • 1. Madinakhon Tursunboeva Tashkent 2017 1 Contents Executive Summary ................................................................................................................... 2 Business Perspective................................................................................................................. 3 Description ............................................................................................................................. 3 E-commerce models............................................................................................................... 5 The e-grocery sales in US................................................................................................... 6 Revenue Model................................................................................................................... 9 Analysis of industry................................................................................................................12 SWOT analysis......................................................................................................................13 Competitors’ analysis.........................................................................................................13 CRM......................................................................................................................................16 Consumer behavior............................................................................................................16 Target audience.................................................................................................................17 Advertisement....................................................................................................................17 CRM ..................................................................................................................................17 Technological Perspective ........................................................................................................18 Framework.........................................................................................................................18 Main functions....................................................................................................................19 Recent technological innovations.......................................................................................20 Competitive advantage ......................................................................................................20 Website usability analysis ..................................................................................................20 Current issues and needs .........................................................................................................23 Future Vision.............................................................................................................................25 Conclusion................................................................................................................................26 Reference .................................................................................................................................28
  • 2. Madinakhon Tursunboeva Tashkent 2017 2 Executive Summary This academic report represents analysis of Peapod company, which is the largest e- commerce grocery delivery business all over the US. The background information and analysis of business perspective is described in the first part of the report. The second part contains the analysis of technological side of the company. By accomplishment both of the components, the issues and needs were identified by using Porter’s five Forces, SWOT, Turban and other techniques. As a result, the major weaknesses among direct competitors, such as delivery timing, pricing etc. were defined. Furthermore, the threats of substitution and Peapod’ market share loose were recognized. Thus, it is important for Peapod to take actions in order to prevent dramatic impact. To do so, the possible solutions were proposed with a reference to the current best practices. Moreover, the future vision of the company was identified in the last part, and points that should be undertaken were listed. Finally, the short summary of the report is provided in the conclusion part.
  • 3. Madinakhon Tursunboeva Tashkent 2017 3 Business Perspective Description Peapod LLC is an Internet Grocer which operates in United States since 1989 (Bloomberg.com, 2017). The company was found by Parkinson’ brothers and became a wholly owned subsidiary of Royal Ahold, which is international food provider (Peapod LLC, 2017). Peapod is a B2C business, service provides delivery of groceries anyhow, anytime and anyplace. The payment types exclude cash, but accept direct checks (electronic method), gift cards, credit cards and debit cards (Peapod LLC, 2017). Peapod works in partnership with Stop & Shop, Giant Food and other Ahold USA supermarket companies (Csus.edu, 2017). Peapod has the following:  Dream – To fundamentally improve lives by bringing interactive shopping to a broad customer market (Csus.edu, 2017).  Mission – To be the world’s leading and preferred provider of interactive grocery shopping services (Csus.edu, 2017).  Passion – To delight and amaze each one of the customers every single day (Peapod LLC, 2017).  Promise – To provide 100% Satisfaction (Peapod LLC, 2017). The stages of company development are represented in Figure 1.
  • 4. Madinakhon Tursunboeva Tashkent 2017 4 Figure 1. Peapod History (source: Peapod LLC, 2017)
  • 5. Madinakhon Tursunboeva Tashkent 2017 5 Figure 1. Peapod History (source: Peapod LLC, 2017) E-commerce models Nowadays, different e-commerce companies use strategic variations within the business models. However, the following business models dominate in the industry of online grocery (Niu, 2017):
  • 6. Madinakhon Tursunboeva Tashkent 2017 6  Pure-play – e-grocers do business only online. Such companies run their website and automate warehouses for order picking and delivery. This business model is used by FreshDirect, Streamline and Webvan;  Brick-and-mortar – groceries add online service. Traditional model of operating, such companies hire designed pickers, who will assemble online orders. This business model is applied by Albertson’s, Safeway and Tesco. Peapod LLC pursues combination of both pure-play and brick-and-mortar models (Niu, 2017). In “Strategies for success in the e-grocery industry” dissertation, Niu provides the following evidences: Peapod, as Royal Ahold subsidiary, works with most markets by using brick-and-mortar model. Meanwhile, in Washington D.C. and Chicago, Peapod runs two state-of-the-art freestanding warehouses for deliveries and order picking. However, both of the strategies are different ways of communication with target audience. Bloch et al. (2017) states that the merger of business models brings to envision of new opportunities for business entities. As a result, the company surround the most part of the market which will be beneficial for the company and vendors. The e-grocery sales in US Statista (2017) highlighted e-grocery shopping sales in US in 2012 and estimated until 2021. As it visible from Figure 2., the revenue in 2017 is increased by 2.2% comparable to 2016, and grown up more than twice during 5 years. Moreover, Weinswig (2017) claims that according to Kantar’ data, e-commerce’ market share will jump up more than 2%, however, only packaged products should be captured in these statistics. By this, Weinswig means that fresh produce category has to be excluded from this chart, due to the fact that customers prefer to buy fresh unpackaged goods in-person (2017). This
  • 7. Madinakhon Tursunboeva Tashkent 2017 7 can be justified by Figure 3., where shopping preferences of customers are illustrated. Nevertheless, the revenue of Peapod in 2016 is estimated at $864.3 million (Sweeney, 2017), which means that e-grocery with fresh produce still contributes to overall sales of US. Figure 2. US e-commerce sale statistic (source: Statista, 2017) The Figure 4. displays the growth of e-grocery business among US and Europe in summer 2016. Thus, it is clearly visible that e-commerce is becoming a global trend, it annually increases in sales, but it cannot be concluded that companies with the e- commerce main model will continue to grow successfully. Finally, Peapod is still the largest and popular e-grocer in US which strives to compete in the industry by introducing new features and qualified service.
  • 8. Madinakhon Tursunboeva Tashkent 2017 8 Figure 3. US Shopping preferences in 2016. (source: Statista, 2017 Figure 4. E-grocery share in June 2016. (source: Weinswig, 2017)
  • 9. Madinakhon Tursunboeva Tashkent 2017 9 Revenue Model According to the research paper by Lucky (2017), business model of Peapod became operational once client awareness and client acquisition resulted number of new clients and number of repeat clients (Figure 5.). As long as the number of repeat clients and new clients increase the number of orders and number of delivered orders, obviously, the Back-End expenses start to grow, these dependency is illustrated in Figure 6. Hence, Peapod revenue consists of components listed in Figure 7. Figure 5. Front-End Cost Components. (source: Lucky, 2017) In 1992-1996 Peapod started expenditure of this model in new geographical locations, which led to increase of expenses. In result, the company added new revenue components. Nevertheless, the cost structure was greater than revenue, therefore, Peapod had to rely on external investment. In 1997-1999, Peapod started operation of
  • 10. Madinakhon Tursunboeva Tashkent 2017 10 designed warerooms for efficiency improvement and indirect cost reduction. Though, during these periods it was demonstrated how vital the initial model was for Peapod. Thus, the Peapod’s model is still anchored to number of both clients, new and repeat. Since Royal Ahold purchased controlling interest of Peapod, no partnership was actual, hence, Peapod was instantly categorized as the Hybrid (Lucky, 2017). To summarize, Peapod’s revenue model can be defined as subscription/membership fees. Peapod charges $6.95 for orders above $100, $9.95 for orders above $60 (min order size) and $2.95 pickup fee (Peapod LLC, 2017).
  • 11. Madinakhon Tursunboeva Tashkent 2017 11 Figure 6. Back-End Cost Components. (source: Lucky, 2017) Figure 7. Peapod’s Revenue Components. (source: Lucky, 2017)
  • 12. Madinakhon Tursunboeva Tashkent 2017 12 Analysis of industry In order to analyze the industry of Peapod, the Porter’s Five Forces method has been formulated (Figure 8). Figure 8. Porter’s Five Forces for Peapod Threat of Entry • Requires huge capital investment (establishment of brand name) • Food retail markets are already captured by existing e-grocers • Requires product differentiation (at exceptional low price/high quality) • Requires authorization from local government • Requires managerial-know-how • Takes long adjustment period in this industry Threat of Rivalry • Diversity of competitors • Declining industry growth • Warehouse/Office/Location cost • Low product differentiation • Brand identity • Exit barriers Threat of Substitudes • Substitution of customer’ needs in different way • Substitutes from outside an industry Threat of Suppliers • Relativity of forward and backward integration by companies in the industry • Lack of agricultural suppliers (area limitations, seasonal availability of products) • Product differentiation (organic/non-organic) Threat of Buyers • Customer concentration vs. company contration • Consumer-sensitive industry • Vertical integration (customers may shop by themselves/or hire someone)
  • 13. Madinakhon Tursunboeva Tashkent 2017 13 According to the analysis, the optimal strategy for Peapod is to concentrate on relationships with customers, try to remain on current market share and to increase expand supplier’ coverage. SWOT analysis Figure 9. Peapod’s SWOT analysis Competitors’ analysis In order to identify competitors, Peteraf and Bergen’ mapping framework has been used (Bergen et al., 2017). The Figure 10. shows identification of competitors by market commonality and resource similarity. As a result, the direct, indirect and potential competitors can be defined.  Direct competitors, offer the essentially the same service as Peapod; Therefore, such companies implement competitive advantages, for instance, Instacart delivers the order in 1 hour; STRENGTHS • Free pickup service (S1) • Cost advantages of products (S2) • 100% satisfaction guarantee (S3) • Partnership with 24 giant groceries (S4) • Large Marketshare (S5) • 24h service (S6) • Brand recognition(S7) WEAKNESSES • Competitative Market (W1) • Lack of conviniet features (next day anytime delivery)(W2) • Delivery cost (W3) • Poor loyalty program (W4) OPPORTUNITIES • New products and services (O1) • New Markets (O2) • Worldwide expendature of the company (O3) • Branch into other subsidiaries and markets (O4) THREATS • Losing of market share to competitors(Rapidly expandature of Amazon Fresh and other e- groceries) (T1) • Seasonal Changes (T2)
  • 14. Madinakhon Tursunboeva Tashkent 2017 14  Indirect competitors of Peapod, satisfy the customer need, but in different way. For example, Whole Foods provides with only organic products; Wal-mart wide range of products with low price etc;  Potential competitors of Peapod serve different market, but has similar resources. For instance, GrubHub and Uber eats deliver food from restaurants and cafes; DoorDash and Postmates deliver any goods locally; Figure 10. Mapping the competitive terrain (Bergen et al., 2017). Direct competitors Indirect competitors Potential competitors Amazon Fresh Whole Foods GrubHub FreshDirect Wal-mart DoorDash Instacart Kroger UberEats Safeway Tesco Postmates Table 1. Peapod’ competitors. Peapod (Peapod LLC, 2017) Amazon Fresh (Amazon.com , 2017) Instac art (Instac art, 2017) FreshDirect (Freshdirect .com, 2017) Safeway (Safeway. com, 2017) Category Grocery Grocery/amaz on.com Grocer y Grocery Grocery
  • 15. Madinakhon Tursunboeva Tashkent 2017 15 Table 2. Peapod direct competitors’ assessment. The direct competitors’ analysis has been performed using criteria taken from developed SWOT analysis. As a result, advantages of Peapod are clearly visible, as well as the following disadvantages:  Expensive service fee; Client pays almost $10 for one-time order under $100, meanwhile Instacart charges $5.99, FreshDirect $6.99; AmazonFresh $7.99; 1Followers and reviews on Facebook (Owler.com, 2017) 2 Based on yelp reviews (Yelp, 2017) Service Delivery/Pi ckup Delivery/Picku p Deliver y Delivery Delivery Mobile version of app Yes No Yes Yes Yes Service fee $9.95 for min order $60; $6.95 for $100<; pickup $2.95; $7.99 one time; $50<free orders $5.99 one time; min order $35<fr ee orders $6.99 one time; min order $40 $12.95 for <$150; Min order $50 Membership $99/year $299/year; $99/ye ar $129/year; n/a Same day delivery No (next day) Yes Yes No (next day) Yes Loyalty programs Yes No No Yes Yes Option to change order Yes Somewhat Yes Yes Yes Brand recognition1 High Low Low Medium Low Warehouses/In ventory Yes (24) Yes No Yes Yes Owned Trucks Yes Yes No Yes Yes Customer Service2 3.5 (265 reviews) 3.5 (2 reviews) 1.5 (69 reviews ) 3 (603 reviews) 2.5 (556 reviews)
  • 16. Madinakhon Tursunboeva Tashkent 2017 16  Minimum order requirements; Peapod’s min order is $60, meanwhile Instacart requires $35, FreshDirect - $40, Safeway and AmazonFresh requires $50;  Delivery timing; Peapod delivers only on next day, whereas AmazonFresh, Instacart and Safeway deliver on the same day; Please refer to Current Issues and Needs Part of Peapod for continuation of analysis’ outcomes. CRM Consumer behavior Nowadays, consumer behavior and marketing are changing up the technologies, as people are living more faster and more productive lifestyles. Therefore, people are looking for instant gratification solutions. According to Carrie Bienkowski, Chief Marketing Officer of Peapod, basket size and frequency of purchase are vital factors of any e-commerce company (eMarketer Retail, 2017). This was already mentioned in Revenue Module Part. Thereby, Peapod is trying to follow the industry trends and features which result its clients to spend more. Thus, Peapod introduced reordering functionality by simple scanning a barcode. For example, if some certain food is almost out, a client scans the code which automatically is added into the next order delivery (Internationalconsumerbehavior.com, 2017). Also, in Spring 2017, Peapod’s website filtering feature was expanded. Now, filter includes:16 specific nutrition preferences, sugar-free, non-GMO, Vegetarian, Vegan, etc. (Prnewswire.com, 2017). In Summer 2017, “Ask Peapod” was launched by Peapod. This feature enables a user to hand-free, voice-ordering of weekly specials (Prnewswire.com, 2017).
  • 17. Madinakhon Tursunboeva Tashkent 2017 17 Target audience According to Gupta (2017), Peapod’s target audience is:  35 years old;  Married with children;  College-educated, professional;  Family income $100,000;  Suburban metropolitan area; Advertisement Currently, Peapod is targeted on out-of-home advertisement, which encourage customers to download the app:  Banner advertisement; Peapod places banners with products and barcodes, which enables customers to shop on-the-go (Outfrontmedia.com, 2017);  Digital display vehicles; Peapod introduced interactive mobile truck which displays video explanation of the service, partner brands and HQ codes (Emcoutdoor.com, 2017); CRM Peapod build the customer service on exceeding expectations of clients and providing superior and friendly service for each client (Csus.edu, 2017). Peapod stands for 100% Satisfaction Guarantee, which means if something goes wrong about shopping experience or order does not correspond to a client’s likings, the company will make it right. Thus, Peapod offers terms “how, when, where” allowing 24-hour service, free pickup locations for on-the-go customers that takes less than 5 minutes (Loyalty360.org,
  • 18. Madinakhon Tursunboeva Tashkent 2017 18 2017). Currently, Peapod has 4,600 employees/associates all over the US, in order to provide qualified and timely service (Peapod LLC, 2017). Thus, Peapod employs the following elements of CRM (Peapod LLC, 2017):  Customer Care/Inquiries by call - Mon-Fri: 8am-11pm | Sat-Sun: 8am-4:30pm ET;  Customer Service by call – 24/7;  Customer support by email;  Customer review on products, orders, delivery;  Clever ways to save money; weekly specials, coupons, shop by price, PodPass etc.  Smart shopping; order genius (autofill cart, shopping history);  Express shop; (quick locate and shop);  Sort and filter features; (based on customer requests); Technological Perspective Framework Peapod started operation as web application platform, but with the age of changing technologies the mobile platform has been launched as well (Peapod LLC, 2017). Nowadays, both of the platforms are widely used, although, Peapod is more concentrated on promotion of mobile application, which is designed for both iOS and Android. According to Turban et al. (2015), in order to perform an e-commerce application, every company needs a right structure, right information and proper support services. Thus, the overall framework of Peapod is as follows:
  • 19. Madinakhon Tursunboeva Tashkent 2017 19  People: o System: System Administrator, Design Administrator, Content Manager, Listers (those who post products with description); o Service: Call-center associates, Delivery people, Order pickers, Packaging personnel;  Policy: the US Constitution;  Marketing: Times Direct Marketing Inc.;  Support services: Visa, Mastercard, American Express;  Business Partnership: Subsidiary of Royal Ahold, partnership with Stop & Shop, Giant Foods, McLane Group (logistics) etc.; Main functions  Filter by category, products, brand, nutrition etc. (overall 16);  Search engine with filtering by product name;  Browse items/specials/discounts/sales;  Register/login/view/edit profile;  View order history/basket/search history/nutrition;  Order view/placement/replacement;  Select type of service delivery/pickup;  Schedule delivery/pickup;  Select type of payment Visa/MasterCard/gift cards etc.;  Validation and confirmation of inputs;  Refer friend via email/Facebook/Twitter;  Save favorites;
  • 20. Madinakhon Tursunboeva Tashkent 2017 20 Recent technological innovations  2017 - Ask Peapod; voice-ordering feature;  2017 – 16 nutrition preference filters; Competitive advantage According to Parkinson, the co-founder of Peapod, the competitive advantage of the company are suburbs (Dallke, 2017). The CMO Carrie Bienkowski stated that: “…there is myth that e-grocery will be driven by urban millennials, but Peapod’s numbers disprove this statement.” (Dallke, 2017). Thus, suburbs are the only powerful advantage that helps Peapod to survive in this competitive industry during almost 30 years. Currently, only AmazonFresh introduced voice-ordering feature, thus, it is an advantage of Peapod among other direct competitors. Considering 16 nutrition filters, only Peapod has such amount of preference filtration and the number continues to grow. Website usability analysis Turban et al. (2015) proposed the important criteria for website usability assessment, which were used for Peapod’s website:  Navigation. Navigation of peapod.com website is classic, logical and understandable for user. Peapod’s logo navigates a user to the home page, the navigation bar is static and responsive to mouse. Above the bar, the search input field, login button and order information button are located. These components make navigation effective and efficient.
  • 21. Madinakhon Tursunboeva Tashkent 2017 21  Consistency. All design elements are following one style which corresponds to logo of the company throughout the website. Terminology compliance with the industry and language.  Response time. According to Developers.google.com (2017), the web peapod.com has a long response time and needs to be optimized (60 from 100), as well as mobile version which has only 44 out of 100. The mobile version of peapod.com took more than 2 min to display the website (3G connection).  Appearance. The design of website is very elaborate. The colors are visually pleasing and corresponds to the brand image. The fonts are readable even if to perform 50% zoom out. The overall appearance is harmonic.  Quality insurance. All functionalities are working properly. The price is correctly added when the item is picked for order and vice versa. The delivery cost is changing when the user exceeds $100. All the links are navigating correspondently.  Availability. During the development of this academic report the peapod.com was always available to access from PC and mobile devices. Although, for the usability analysis, the website.grader.com, dareboost.com and nibbler.silktide.com has been used, BUT peapod.com was not available for them. Which means that peapod.com does not allow external websites to use and analyze their data.  Interactivity. The interactivity is poor, only photo slider has hover interaction, other elements of the website does not response on mouse. However, the buttons are hovered when clicked. The contact types are provided and divided
  • 22. Madinakhon Tursunboeva Tashkent 2017 22 into email and phone contacts. However, no online conversation is added. A user is allowed to leave feedback through the website or Facebook. The phone numbers are provided with working hours.  Content. peapod.com contains only order-related information, but on about.peapod.com a user can find any information related to the business: history, description of business flow, blog etc. So, the contents are relevant for every category. Every item is descriptive, has image and nutrition facts. Thus, the content is informative and written in understandable way (spoken, friendly manner).  Usability. The website is understandable, there are “Add to cart” buttons under each product, so there is no need to go to item profile for adding it. The cart button is located in navigation bar, so it is easy to check what is already chosen and perform edit/delete operations. For those, who did not understand how to use the app, Peapod provided manual “How it works” on the home page. Moreover, there is a video on Peapod YouTube channel.  Security. Peapod provides security of customer’ personal information via VeriSign™. All terms and conditions are provided in Policies section. Peapod guarantees security of stored data. The http protocol is secured when proceeding the order.  Scalability. During 28 years the peapod.com has been modified plenty of times, which means that the structure has been adopted for the new adding of features. Royal Ahold considers Peapod as innovative and customer oriented business, therefore, the company is prepared for any development of an application (Dam,
  • 23. Madinakhon Tursunboeva Tashkent 2017 23 2017). Moreover, the web application tool Developers.google.com (2017), did not suggest any enhancements on scalability. Current issues and needs This part is dedicated to analysis of issues with which Peapod may face in the nearest future, the current problems and needs identified during this report and potential responses to them. In order to interpret this weaknesses and threats into Peapod strength, it is suggested to introduce fast-delivery service by following the concept of Amazon Restaurant, GrubHub and Postmates (Carson et al., 2017). The concept is as follows: 1. the company deploys application via which freelancer/driver registers into the system by providing SSN3 , driving license, car insurance and other documents; 2. the company provides a freelancer/driver with a fixed salary per hour; 3. all orders and order information are provided in the application, so client and freelancer/driver have contact information of each other and delivery details; 4. the company gets percent of each sale; Advantages of this proposal is that Peapod will cut fuel and car insurance expenses. The company will continue own business model, meanwhile providing customers with additional service. Basically, Peapod’s staff is operating similarly, but drivers are recruited in-person and trained. Also, Peapod won’t pay taxes for personnel and overtime rate, due to the fact that freelancer/driver will work hourly and part-time, so 3 SSN- Social Security Number
  • 24. Madinakhon Tursunboeva Tashkent 2017 24 he/she will be responsible for tax payroll. Disadvantages are in capital investment for app development and customer service will be at risk, due to training absence. Another way of weakness exclusion is to make a partnership with Postmates or GrubHub. Thus, application development expenses will be avoided and both of the companies will benefit. By implementing this solution:  Market share will be increased (T1);  Partners’ competitive advantage will be obtained (W1);  Delivery expenses will be reduced (W3);  Fast-delivery service will be added (W2, O1);  New market will be discovered (food delivery) (O4); The performed analyses in Business Perspective Part identified that Peapod is under threat of loosing market share, probability of which is high. This was mentioned by Sweeney (2017) and justified that in recent decades Peapod market share went down due to new e-grocers, especially AmazonFresh. As far as Peapod is highly depended on its customers (Revenue model part) it is crucial to keep repeat customer loyal and discover new ones. Therefore, it is suggested to Peapod:  To revise loyalty program and enhance “earn and redeem” awards. According to Forbes article “The Best Loyalty Programs Go Beyond Rewards” customers choose particular service or product due to opportunity to gain some points (Hyken, 2017). Hyken states that this practice used by Starbucks and Walgreens, helps to keep the applications ‘on top of customers minds’.
  • 25. Madinakhon Tursunboeva Tashkent 2017 25  To introduce seasonal promotions, such as service free-trial as Blue Apron did (Harwees, 2017). This experience helped to Blue Apron to engage new customers with company’s service, which significantly increased customer’s awareness. According to Developers.google.com (2017), for the better usability of Peapod’ website, it is suggested to optimize:  Images;  JavaScript and CSS;  Cookies and cache;  Landing page redirects (minimize); By implementing Developers.google.com’ proposed guidelines, the website’s usability will be significantly increased. To conclude, it is suggested to Peapod to introduce same-day delivery, to enhance customer loyalty programs in order to meet the company’s promise, mission and passion, and to optimize the application. Future Vision According to Royal Ahold (Ahold Delhaize, 2017), the parent of Peapod company, the following components are key to the future:  Customers’ savings: better quality, smarter operation, less wastes;  Fund growth in key channels: eCommerce, supermarkets, smaller formats;
  • 26. Madinakhon Tursunboeva Tashkent 2017 26  Investment in customer proposition: affordability, best own brands, healthier and fresher, local and personal service; In correspondence with above mentioned strategy, Peapod has launched Peapod Propulsion Labs in order to restore the scrappiness and innovation which were lost over the years (Sweeney, 2017). As it was mentioned before, presently, Peapod is oriented on m-commerce in order to reinforce brand identity, encourage impulse shopping and provide with the niche of e-commerce – convenience (Reed, 2017). By this, it is obvious that the company is focused on delivering great service and smart growth, which were justified by CMO Bienkowski (Dallke, 2017). Presently, Peapod is trying to get smart with logistics and as CEO Parkinson stated: “Our competition still struggles with that, and I think we’ve figured that out over the years” (Dallke, 2017). Which means that in the nearest future Peapod will definitely work on that. Thus, Peapod undertook first steps towards the mission and vision of the company. Additionally, the following actions are suggested to be taken into consideration:  Improvement of loyalty program;  Enhancement of the applications;  Partnership with potential competitors;  Advancement of delivery service; Conclusion To summarize, Peapod is the largest and experienced e-commerce company in the US, which has already achieved brand recognition and successful combination of e- commerce models. During the decades, Peapod continues to survive the competitive
  • 27. Madinakhon Tursunboeva Tashkent 2017 27 industry by provision of qualified and friendly service in suburb areas. Year by year, Peapod introduces best practices and innovations common in the sphere. However, the company still has threats and weaknesses, which were identified during the report by using different analyses tools. Based on outcomes, problems and needs such as delivery timing, fees and loyalty program were identified and possible solutions were described. Finally, the enhancements of previous points will lead to Peapod’s mission achievement.
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