Ocado Marketing Strategy Report

This report examines a case study of Ocado, a UK-based online grocery delivery service. The report identifies key challenges faced by Ocado, including intense competition, the need for technological advancements, and low profitability. The main arguments presented highlight the need for Ocado to effectively target affluent customers who find home delivery affordable, while simultaneously managing technological infrastructure and logistics. The report proposes several remedies, including exploring alternative operating models through technology leasing, investing in technological advancements to outpace competitors, focusing on meeting consumer demands to increase delivery density, and improving facilities through investment and renovation. Additionally, the report suggests investing in grocery innovation, such as self-service options, to attract more customers and eliminate underperforming retailers. The recommendations aim to help Ocado improve its market position and achieve greater profitability.

Running head: MARKETING STRATEGY 1
Marketing Strategy
Name:
Institution:

Marketing Strategy 2
This paper aims to explore the case study on the UK-based Ocado which is the largest on
line grocery business which does home-delivery in the world. The main argument in the case
study is that the Ocado’s representation would be effective on the well-to-do work for
individuals who find the home delivery affordable. This argument arose since several customers
who used the home delivery services would acquire many things even after the delivery charges.
It was noted that the customer demand increased though it was not easy to expand the business.
The reason was that Ocado experienced a lot of competition from other home-delivery
businesses which were UK-based and outside the country. The second argument was that Ocado
was obliged to improve and maintain the model by monitoring the technology remotely. This
would be done by using various technicians who would operate on the site. However, the
business would experience challenges to hand the customer interface as well as the logistics
power to the third parties. The business would experience challenges during investments since
they needed the third party for development. Ocado needed to invest to reach a leading-edge.
However, the investment commitment was narrow hence Ocado had to take a step to renovate
the facilities within the business to project in the market. The business was experiencing low
profitability, and the losses were increasing day by day. Finally, based on the significant
arguments from the case study, Ocado has to embrace a sense in demand for consumers to
maintain the amount of delivery.
There are several remedies that Ocado would implement to overcome the main problems
which are identified from the main arguments of the case study. First, Ocado had to find an
alternative to replicate the operating model within the United Kingdom and to other countries.
The business should employ the approach of leasing the company’s technology. Therefore, the
business should offer services as well as maintain the market meeting the customers’ demands

Marketing Strategy 3
and enhancing the logistic infrastructure. For this reason, the retailers will appear in the markets
having the market tested systems. On the other argument, Ocado needs to use the best
technology to outdo the competitors. Ocado should focus on meeting the consumer demands to
maintain the customers as well as increase the delivery density. At the same time, they should
risk in investments to arrive at the leading edge. The business needs to make good use of the
engineers to renovate and overcome the physical problems to improve the facilities. Investing in
grocery innovation since it allows self-service to the customers. The self-service would attract
several customers hence the business would increase the sales. Also, it would be important if
Ocado eliminated the inactive retailers those who were drawing the business behind by not
supporting the development face.
The main arguments in the case study have been outlined which are associated with
various challenges. Therefore, the recommendations offered will help the business move to
another level if they focus to meet the customers’ demands as well as maintain their market.