Online Grocery Market Analysis

This assignment delves into the dynamic world of the online grocery market, examining its trends, challenges, and opportunities. It analyzes successful marketing strategies employed by players in this sector, focusing on customer acquisition tactics and digital marketing techniques. The document also explores the importance of understanding target demographics and adapting strategies accordingly to thrive in the competitive online grocery landscape.

Running Head: Business Management 1
Business Management

Business Management 2
Executive Summary:
This report mainly highlights the online marketing plan for new product launched by
Wesfarmers in the market of India. Online marketing campaign is the complete and unique
procedure which includes various aspects of marketing in its ambit. Wesfarmers can target
various markets in India for launching grocery products in the market of india and for expanding
their business in new market.
Contents
Introduction:...............................................................................................................................................4
Product overview:.......................................................................................................................................4
Target market & value proposition:.........................................................................................................4

Business Management 3
Role of internet marketing vs. Traditional marketing:.............................................................................5
Internet Marketing Campaign Overview:....................................................................................................6
Target market segments:.........................................................................................................................6
Internet marketing customer acquisition strategy:.................................................................................7
Technological Infrastructure and Data Requirements:............................................................................7
Internet Marketing Campaign Design and Plan:..........................................................................................8
Internet Marketing Campaign Evaluation Metrics:....................................................................................10
Match metrics with marketing objectives:............................................................................................10
Collection & Analyze these metrics:......................................................................................................11
Budget Requirements:...............................................................................................................................11
Conclusion:................................................................................................................................................11
References:................................................................................................................................................12
Introduction:
Wesfarmers was originated in the year 1917 as a Western Australian farmers'
cooperative, and since that company shows the tremendous growth and become one the largest
listed companies in Australia. Headquarter of the company is situated in Western Australia and

Business Management 4
company conduct diverse operations which include supermarkets, liquor, hotels and convenience
stores; home improvement; office supplies; department stores. Wesfarmers also engaged in the
diversified industry which includes chemicals, energy and fertilizers, industrial and safety
products and coal.
Wesfarmers is considered as one of the largest company engaged in private sector and it
has almost around 220,000 employees and has a shareholder base of approximately 530,000. The
main objective of the company is to provide satisfactory profit to its investors and also providing
satisfactory services to its consumers (Wesfarmers, 2018; Wesfarmers, 2018).
Structure of this report includes product overview, Internet Marketing Campaign
Overview, Internet Marketing Campaign Design and Plan, Internet Marketing Campaign
Evaluation Metrics, and estimated budget requirements. Lastly, paper is concluded with brief
conclusion.
Product overview:
This report defines the internet marketing campaign plan for grocery items sold by
Wesfarmers, and for this various other aspects related to this product are stated below:
Target market & value proposition:
This section of the report defines the target markets for grocery sellers, and for capturing
any market it is necessary to understand the behavior and need of the consumers:
 Family feeders- it includes the parents and other adults of the family who generally
purchase the grocery for their families on the behalf of their families. This segment is
considered as main buyer of the grocery and it includes buyers with lower, middle and
upper income (Kurt Salmon, n.d.).

Business Management 5
 Variety seekers- it includes the customers who are loyal towards the particular brands
and such consumers enjoy the variety of products and also like to experience new things
in their food choices.
 Healthy and natural- this segment of the market includes the consumers who purchase
products from the environmental protective retailers (SN, n.d.).
Another targeted market for Wesfarmers outside Australia is the grocery market of India.
Grocery market of India is considered as 6th largest market of the world and also one of the
fastest growing markets in context of online groceries. On the basis of industry estimates, it can
be said that this country has almost $500 billion retail market and grocery items almost hold 70%
share in the market. It must be noted that grocery items is estimated to be around $12 billion and
growing at a compound annual growth rate of around 30%. It is estimated by experts, that
grocery market of India cross $20 billion by the year 2020 (Wharton, 2015).
Role of internet marketing vs. Traditional marketing:
Traditional marketing generally includes the advertising methods which are of non-
internet nature, and this type of marketing is used from decades as it includes print media, direct
mail, broadcast, and referral.
On the other hand, internet market define those methods of advertising which occur
online, and it includes Email marketing, Social media marketing, content marketing, search
engine optimization, pay per click advertising. Internet market now plays very important role in
the success of business (Webpage Fx, n.d.; Cave, 2016).
Generally, traditional marketing can be seen in newspapers, magazines, television, etc.
traditional marketing is used by number of business organization and it still works for such

Business Management 6
organization, but it must be noted that internet marketing provide better opportunities to the
business organization and also help in building the relationship with consumers.
Food and grocery market of India witnessed the entry of number of players in the online
market, but only few players are still operational. In the year 2017, various players entered in the
online grocery market of India such as Amazon and Flipkart and some existing players are also
there such as BigBasket, Grofers and Jugnoo. Recently, amazon plan to invest almost $500
million in the food sector on the India, and this type of proposal is also provided by the
BigBasket and Grofers also. It is estimated that food and Grocery market of India alone is
estimated almost $600 million and it might $ 5 billion by 2020 at a CAGR of 72%. Currently,
this market is mainly ruled by Amazon, BigBasket and Grofers (Kulkarni, 2017; Gara, 2014).
Internet Marketing Campaign Overview:
Target market segments:
Food and Grocery market is considered as most important market of retail industry in
India, and presently size of this market is estimated almost US$ 455 billion (INR 30,464 billion).
By the next decade, this market witnesses the growth of 15% per annum. Wesfarmers can
capture following markets in the India:
 Families- this segment is considered as the most loyal and biggest segment of the grocery
products in India. This segment includes the big families and small families and it also
includes the lower, medium, and higher income families. Wesfarmers can mainly target
this segment of the market because it is the only segment which is considered as most
loyal and biggest segment. In this primary buyers are women’s.

Business Management 7
 Students- it covers those customers who are living on rent for education purpose, and
presently this segment is also increased because of the increasing trend of metro station
jobs and education.
 Working segment- this segment is also considered as important segment as it includes the
people of working class with both high level of earnings and medium level of earnings
(Kazmin, 2015; IBEF, 2018).
Internet marketing customer acquisition strategy:
Internet marketing customer acquisition strategy is the most common used term in the
marketing industry and in this acquisition strategy of customer includes more than one channel
or tactic. It also includes the establishment of relationship with potential customers and also
helps the organization in addressing the needs of customer. Wesfarmers can use various channels
for the purpose of marketing their products and these channels include SEO, PPC, social media
platforms, content marketing, etc.
Technological Infrastructure and Data Requirements:
For the purpose of executing the new plan for marketing related to the new product,
Wesfarmers requires technological infrastructure and data requirement which work as further
guidance for the purpose of enhancing the efficiency of the marketing plan. Technological
infrastructure and data requirement required by the Wesfarmers is stated in detail below:
 Technological Infrastructure- infrastructure based on Wi-Fi for the purpose of
supporting the internet access in the organization. It also includes the efficient hardware
and software system.

Business Management 8
 Data requirement- Wesfarmers required information related to their competitors,
demands and needs related to customers, analysis of both internal and external
environment (Royle, & Laing, 2014).
Internet Marketing Campaign Design and Plan:
Internet marketing campaign strategy is already defined above and channels and
techniques related to this strategy are explained in detail below. This explanation also includes
the design and plan for each technique.
Search Engine optimization- this tool is considered as most important tool for acquiring the
customer. SEO helps the organization in making the relevant changes to their site which ranks
the site in search engine results for relevant keywords. In this organization mainly aims in
acquiring the broad audience. This method is completely different from the traditional methods
of advertising. The only drawback of this tool is that it takes some time to show the results.
PPC Campaigns- no matter whether person run the PPC campaigns or not, generally people are
aware with these advertisements. The most popular platform for this purpose is Google
AdWords, and in these ads published by the company shows on the top of the Google search
result.
Social Media- it is also considered as important platforms which are developed quickly in last
few years. This tool is considered as invaluable marketing tool. It includes the platforms like
Facebook, Twitter, etc (Lake, 2017).

Business Management 9
E-mail marketing- organization can reach the potential customers with this type of campaign,
but in this organization require permission to send the updates because of which it becomes
difficult for organization to initiate the new lead (Webpage FX, 2018).
Following is the design and plan for above stated techniques and all the factors of design and
plan are stated below:
Message- Health and Budget both at one place!!!!!!
Timing- it must be used for long period of time such as at last for the period of 3-4yeras, and
after that as per the requirement. Some of the above stated techniques required more time to
show the results such as SEO require few months to show the results. On the other hand,
technique like E-mail marketing also required to time to get evolved with customers because it
also require approval from customers before sending the updated e-mail.
Plan for testing- management of the organization required relevant and different information for
the purpose of deciding whether to go with the new product or not. For planning the
contemplating test marketing, these three questions must be considered by
the executive (Klompmaker, Hughes, & Haley, 2017):
 When management initiate the test of market?
 Things management learns from the market test?
 How management use the information from a test market?
Plan for testing includes following factors:

Business Management 10
 Wesfarmers must develop a model or description of the product or
services they offer to the consumer.
 Wesfarmers must decide the price on which they sell the product in the
current market place.
 Management must take steps to reach the potential customers with
the sample and prototype model and ask would they like to buy it.
 Organization must compare their products with the products of their
competitors.
 Wesfarmers can also visit the trade shows and exhibitions
(Entrepreneur India, n.d.).
Internet Marketing Campaign Evaluation Metrics:
Match metrics with marketing objectives:
Measurement is the concept which fall the marketing in the ambit of science rather than
the superstition. There are number of business owners for which marketing is an expensive
activity. In other words, an activity on which business can spend amount only there is flexible
and enough budget to accommodate it. Following are some of the online marketing metrics
which match with the marketing objectives of Wesfarmers:
 Total visits- in this company consider the total visits on the primary website of the
company, and company can also consider the total visits on any other location relevant to
their strategy such as landing page for a pay-per-click campaign.
 New sessions- this is the metric available in Google Analytics, and in this total number of
new sessions stated how many site visitors are new and how many are recurring.

Business Management 11
 Channel-specific Traffic- this is found in “Acquisition” section of Google Analytics, and
this metric ensures the segmentation your traffic based on their point of origin.
All these above stated metrics can be used by Wesfarmers for checking whether their marketing
objectives are met or not (DeMers, 2014).
Collection & Analyze these metrics:
 Total visits- for analyzing this metric Wesfarmers can check the number of visits on their
primary site, and in case numbers of one month falls down from last month then company
can take appropriate action.
 New session- it helps the organization in determining whether there site is sticky enough
for the purpose of encouraging new customers and it also considers the outreach efforts
of the site.
Budget Requirements:
In this Wesfarmers must consider all the regulated expenses required by their marketing
techniques, and organization must also consider the extent they want to reach through their
products. This is completely depends on the boundaries company wants to work. As stated
above, amazon plan to invest almost $500 million in the food sector on the India, and this type of
proposal is also provided by the BigBasket and Grofers also. Therefore, estimated budget for
Wesfarmers in this sector must be at least $500 million or more (Ingram, n.d.) .
Conclusion:
After considering the above facts, it can be said that online marketing plan is a complex
procedure and it requires lot of attention and resources. In this paper, Wesfarmers want to launch
grocery products in the market of India and this product includes number of food products,

Business Management 12
household goods and medicinal products. It can be said that marketing plan for grocery products
is unique and complex in nature and it includes various aspects which must be considered by the
organization before entering into the market.
References:
Cave, J. (2016). Digital Marketing Vs. Traditional Marketing: Which One Is Better?. Retrieved
on 9th January 2018 from: https://www.digitaldoughnut.com/articles/2016/july/digital-
marketing-vs-traditional-marketing.
DeMers, J. (2014). 10 Online Marketing Metrics You Need To Be Measuring. Retrieved on 9th
January 2018 from: https://www.forbes.com/sites/jaysondemers/2014/08/15/10-online-
marketing-metrics-you-need-to-be-measuring/#4acacb9e76c1.
Entrepreneur India. Market Testing. Retrieved on 9th January 2018 from:
https://www.entrepreneur.com/encyclopedia/market-testing.
Gara, J. (2014). The Difference Between Online Marketing and Traditional Marketing. Retrieved
on 9th January 2018 from: http://blog.inboundid.com/difference-online-marketing-
traditional-marketing.html.
Ingram, D. Marketing Plan for a Grocery Store. Retrieved on 9th January 2018 from:
http://smallbusiness.chron.com/marketing-plan-grocery-store-11428.html.
IBEF, (2018). India’s ecommerce groups target online grocery shoppers. Retrieved on 9th
January 2018 from: https://www.ibef.org/industry/indian-consumer-market.aspx.
Kazmin, A. (2015). India’s ecommerce groups target online grocery shoppers. Retrieved on 9th
January 2018 from: https://www.cnbc.com/2015/06/25/indias-ecommerce-groups-target-
online-grocery-shoppers.html.
Klompmaker, J. Hughes, G. & Haley, R. (2017). Test Marketing in new product development.
Retrieved on 9th January 2018 from: https://hbr.org/1976/05/test-marketing-in-new-
product-development.
Kulkarni, M. (2017). Online grocery market set for big action in 2017. Retrieved on 9th January
2017 from: http://www.financialexpress.com/industry/online-grocery-market-set-for-big-
action-in-2017/616867/.

Business Management 13
Kurt salmon. The Grocery Market. Retrieved on 9th January 2018 from:
http://www.kurtsalmon.com/en-mx/Retail/vertical-insight/938/The-Grocery-Market.
Lake, L. (2017). The Top Internet Marketing Strategies for Your Business. Retrieved on 9th
January 2018 from: https://www.thebalance.com/top-10-internet-marketing-strategies-
2295375.
Royle, J., & Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer
Model for the communication industries. International Journal of Information
Management, 34(2), 65-73.
SN. The targeted Market. Retrieved on 9th January 2018 from:
http://www.supermarketnews.com/archive/target-market.
WebpageFX, (2018). 7 Customer Acquisition Strategies & Tactics. Retrieved on 9th January
2018 from: https://www.webpagefx.com/internet-marketing/7-customer-acquisition-
strategies-and-tactics.html.
WebpageFX. Internet Marketing vs. Traditional Marketing. Retrieved on 9th January 2017 from:
https://www.webpagefx.com/internet-marketing/internet-marketing-vs-traditional-
marketing.html.
Wesfarmers, (2018). Who We Are. Retrieved on 9th January 2018 from:
http://www.wesfarmers.com.au/who-we-are/who-we-are.
Wesfarmers, (2018). Our Business. Retrieved on 9th January 2018 from:
http://www.wesfarmers.com.au/our-businesses/our-businesses.
Wharton, (2015). Online Groceries in India: Will Consumers Bite?. Retrieved on 9th January
2018 from: http://knowledge.wharton.upenn.edu/article/online-groceries-in-india-will-
consumers-bite/.