1. Davis Food & Drug
an eCommerce solution
LLINI
consulting
2. • The Problem
• The eCommerce Industry
• Company Details: Davis Food & Drug
• Our Recommendation: Four Step Plan
• Platform
• Marketing
• In-Store Changes
• The Future
Agenda
3. The Problem
What is the best way for Davis Food & Drug to introduce an
eCommerce solution while complementing their brick-and-
mortar stores?
Things to Consider:
• Who is the online customer?
• What is the best way to reach them?
5. eCommerce
Growth
• 2014 Deloitte survey expected 35% growth in online
grocery sales
• Consumers expect 67% growth in their own
shopping over next 3 years
• Currently, online purchases make up 1-2% of net
sales for grocery stores with eCommerce; future
projections predict 5%+
7. Who is the customer?
eCommerce
• Working and stay-at-home moms
• College students
• Adults with elderly parents
8. What do customers want?
• Images
• User friendly controls
• Product searches
• Personalized experiences
• Product history
eCommerce
Source: 2014 Food Industry Review
9. What are customer concerns?
• Expensive
• Inability to choose own products
• Limited availability
eCommerce
Source: Illini Consulting US Survey (n=370)
11. • Family-owned, community driven
business starting in 1988
• Brick-and-mortar locations:
• La Verkin
• Vernal
• Roosevelt
• West Valley
• 2014 Annual Sales $13.8 million
Davis Food & Drug
Davis
17. • Online Service Engine
• Phone App: available on iOS, Android
• Website: works on laptops, desktops, tablets
• Uses entire store data from start (organic products,
specialty products, etc. included)
• Has access to live store data
• Updates every 24 hours through store’s system
Rosie
Platform
18. Rosie
Everyone loves it!
“Convenient, user-friendly, and comes with the most
accommodating team” –Claire D
“Super easy and allows me more time in my kitchen with my
children and less time in the supermarket” –Blanca G
Customers
Businesses
“The advanced technology that Rosie has developed is the
main reason we chose them versus any of their competitors.”
–Mark, Dash’s Market
“Price is always a barrier and Rosie offered an affordable
solution compared to some other companies.”
–Jeff, Associated Food Stores
Rosie Facebook Page
Cart – Advanced Retailing
19. Rosie Costs
• $5,000 initiation fee
• $600 monthly fee
• Credit card transaction processing fee is 3% for Rosie
• Store pays 25% of this fee
• Rosie pays 75% of this fee
• Marketing is an additional fee
Rosie
20. Return on Investment
• More functionality than competitors
• Full loyalty integration
• Reduced labor expense by 33%
• Current partners make $100,000+ per month
Rosie
21. Store Set-Up
• Average set-up time is 60 days
• Training employees via phone
• Testing system
• Uploading data
• Weekly conference call with Rosie
Rosie
30. • Store front sign
• In-store posters
• Monitor screens
• Receipt footers
In-Store Marketing
Marketing
31. Marketing Internship
• Utah State University Uintah Basin Campus in Vernal, UT
• Offer internships through marketing program
• Benefits for Davis Food & Drug
• Cost effective solution
• Understands target market (Millennials)
• Community involvement
Marketing
33. Order Confirmation
Hi, Andrew! I will be filling your order for March 6, 2016.
Meet Your Personal Shopper
Chad Holmes
4 year Davis Food & Drug Employee
Hobbies: Skiing, guitar playing
Community: Born and raised in Vernal
Message to Shopper: I promise to always bag your groceries as I would bag
my own. I saw in your notes that you prefer the greenest bananas possible.
Your wish is my command! With my professional expertise and loyalty, you
will not be disappointed.
Marketing
Personal Responses
35. In-Store Pick-Up
• $1.99 customer fee
• Designated parking lot area for pick-up
• Order up to seven days in advance
• Minimum four hours ahead of time
• Section devoted to online product purchases
In-Store
36. • Two freezers
• Counter
• Phone
• Computer
• Marketing products
!
In-Store
Pick-Up Area
38. Vernal
• Rosie meetings
• In$store!set$up!
!
• Hire!marke1ng!
intern!
Vernal
• Rosie meetings
• In$Store!set$up!
• Employee!training!
Vernal
• Finalize!store!
changes!
!
• Employee!training!
!
• Release!marke1ng!
products!
Vernal
• Rosie!goes!live!
!
• In$store!pick!up!
Vernal
• Projected break-
even point
Company Wide
• Continue
expansion!
Company Wide
• Conduct market
research
• Plan Rosie
expansion into
La Verkin, West
Valley, Roosevelt
Goals
Timeline
39. Long-term Goals
• Implement Delivery
• Offer depot to long-distance customers
• Hire full-time marketing director
• Expand internship to other cities
Goals
