Essay PreviewMore ↓
Nowadays, we are living in a changing world of consumption, where new trends are appearing, especially in Western societies. The most important of them are the growth of the service economy, the changes in purchasing methods, and the evolution of technology. The latter is quite important, because it involves the opening of new markets and niches for organizations, and especially in the food retailers and wholesalers industries.
For customers, this evolution implies new methods for acquiring things. According to the purchase model decision, the consumers will have to choose, among others things: the product category and the channel purchase decision. The recent evolution in the field of technology allowed the appearance of a new purchasing channel, namely the online shopping.
The goal of this report is to analyze the marketing strategy and the customer profile of the two main actors in the Swiss industry of online shopping, namely LeShop.ch and Coo.ch. Then, from the information gathered, conclusions and recommendations will be drawn. The reflections will mainly focus on the advantages and drawbacks of the strategies of the two leaders in order to determine a potential market or niche in the Swiss market for Bina.ch.
The actual situation in the online shopping industry in Switzerland
The Swiss market of online shopping is actually experiencing a fierce competition. In fact, six major actors are dominating the industry. However, two of them are clearly outstanding as the leaders: LeShop.ch and Coop.ch. The first of them has the biggest share of the market.
For a new business to enter in this market, it must be perceived by the customers as having a substantial differentiation in comparison with the competition. For this reason, I will try during this report to show you the major advantages and drawbacks of the two leaders. According to me, it is clearly possible to fulfil even more the expectations and needs of potential consumers by providing services than the competition do not, and to acquire a niche by creating customer loyalty and devotion.
The global consumer profile
A global consumer profile may already be drawn from logical reasoning, the people who are willing to go shopping online have usually the following characteristics: they are willing to discover new ways of purchasing, they are open to changes and to the introduction of new technologies, they also accept the principle of the anticipated consumption involved by shopping online, and finally they are willing to adapt themselves through experiencing and adopting new services.
How to Cite this Page
"Analysis of the Consumer Profile of LeShop.ch and Coop.ch." 123HelpMe.com. 20 Aug 2018
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The Chicken Coop Case Analysis Problem Statement Daryl Buckmeister, CEO of The Chicken Coop, must decide whether to invest in market research, how much money to spend, and which programs to fund. His two vice presidents (of quality and marketing) have presented very different proposals. Decline in sales For the first time ever, the "Coop" is experiencing a decline in sales by 6% in 20 of 76 "Coop" restaurants even though the overall growth rate was steady for the chain. These same stores were carrying about 32% of the company's retail sales.... [tags: Business Strategy Analysis]
1661 words (4.7 pages)
- Company Spotlight: Wella Wella is to sponsor Red Nose Day in March this year, introducing a limited edition red hairspray to coincide with the event, which takes place in the UK on March 11. With each sale of the spray, Wella will donate 50p to Comic Relief, which raises money for projects in both the UK and Africa. The company will no doubt be hoping the sponsorship will raise its profile as a charity-giving and fun-loving company, and follows a similar sponsorship in 2003, when Wella came on board as the official hair partner of Red Nos... [tags: Business Management Analysis]
1935 words (5.5 pages)
- INTRODUCTION In this assignment the author has broken down in detail consumer buyer and Organization behavior in the concept of marketing analysis on the basis of existing theory The subject will analyze the concept of consumers and organization buyer behavior with the aid of some example on the securities industry. Consumer Buyer Behaviour According to Armstrong and Kotler (2013) consumers buyer behavior means the purchasing operation of consumer for their final good and service for their kin and their personal household is used for consumption, consumers combine together to build up consumer market..... [tags: Marketing Theory, Consumer, Buyer, Organizations]
1682 words (4.8 pages)
- Consumer Research, Inc. is investigating whether there is any correlation between specific characteristics of credit card users and the amount these users charge on credit cards. Their objective is to determine if these characteristics can accurately predict the annual dollar amount charged by credit card users. Data was collected from a sample of 50 credit card consumers presenting information on the annual income (referred as Income), size of household (referred as Household), and the annual credit card charges (referred as Charges) for these consumers.... [tags: Consumer Research]
1372 words (3.9 pages)
- Organisational Profile INTO UEA is part of a rapidly growing network of university-based study centres. It provides new and higher quality standards of preparation for undergraduate and postgraduate study in the UK. Combining the resources of University of East Anglia with major independent investment, INTOUEA delivers a world-class educational and cultural experience for international students, with fast, effective and assured progression to university degree courses. Having students from all around the world and being responsible for their development for higher education, it is imperative of the establishment to be run effectively and efficiently.... [tags: Business Analysis]
1118 words (3.2 pages)
- Consumers all over the world will view information and process the same differently. It is thus of great necessity that businesses come up with effective mechanisms which will effectively and efficiently communicate their business to their clients. In understanding the consumer process for choice, various practices have been examined and affected. The methods of choice include monitoring of information, eye movement monitoring and issues to do with task analysis among others. The studying of such methods has demonstrated the characteristics of the consumer behavior and the implementation of such choices.... [tags: Consumer Studies]
1547 words (4.4 pages)
- Cultural Influences of Consumer Behavior Understanding consumer buying behavior entails marketing, relationships, and consumer behavior. Consumer behavior comprises all the consumer decisions and activities connected with the choosing, buying, using and disposing of goods and services. Marketers must pay very close attention to consumer behavior that occurs before the purchase and after the particular product has been used. Studying consumer habits is one of the steps in marketing search and analysis.... [tags: Marketing Strategy Consumer Behavior Study]
1294 words (3.7 pages)
- Pentair, Inc. Headquartered in Golden Valley, Minnesota, Pentair owns and operates fifty facilities throughout eleven different countries. Pentair’s Technical Products Group is a leader in global enclosures, thermal management products, and custom enclosures that house and protect sensitive electrical components. The Water Group manufactures innovative products used in the movement, treatment, storage and enjoyment of water. Pentair’s local ties include two manufacturing facilities. The Sheboygan operation molds plastic and extruder block water filters, while the Brookfield location manufactures custom enclosures.... [tags: Corporate Analysis Company Profile Pentair]
1976 words (5.6 pages)
- Consumer Privacy "The right to be let alone is indeed the beginning of all freedom."("Privacy Quotes and Quotations") The right to privacy and protection from the government becoming a Big Brother type character is a right that is greatly underappreciated by the people of the United States. However, as a consumer, the right to privacy of information and protection from outside sources is one which is not utilized to its full potential, and consequently consumers are being violated by companies and not taking any action.... [tags: Consumer Rights Business Ethics Analysis]
1988 words (5.7 pages)
- My advice to someone starting his or her coop would be to start as soon as possible. 150 or 250 hours is a long time, especially if you already have another job. This coop led to two and a half months of a very busy and hectic schedule. It is a very important part of the learning process and I don’t recommend rushing it. In my case I found it a difficult task remembering where I was supposed to be on a certain day, so I bought myself a day planner. I also advise future students starting their coops from trying to do things that you may not feel comfortable with.... [tags: essays research papers]
1524 words (4.4 pages)
The first important point is that this site is available in three different languages: French, German, and English. This is clearly a competitive advantage for LeShop.ch as it broaden the scope of potential consumers to the international community, which is really important in such a cosmopolitan country as Switzerland. The second point is that the site is designed in an attractive, easy-to-use, and timesaving manner, which is important to attract those consumers who are not familiar with computers. The site contains a “research product engine” which clearly facilitates the navigation in the supermarket.
The delivery process is very well organized. In fact, the products ordered are directly delivered to the door and are left there if nobody is here. The packaging methods differ according to the nature of the products ordered, which add quality to the service. This kind of details is very important in the marketing strategy of the company, as it can be crucial for consumers with high expectations standards and also for those who may be sceptical about these new services.
The payment systems are very convenient, since the consumers have the possibility to choose among several different methods of payment: credit cards, yellownet and billing.
The last point is about cigarettes and alcohol. Usually, the Migros stores do not sell this kind of products, however, they can be easily found on LeShop.ch. The logical explanation for this strategy is the need for profitability, as these products enlarge the scope of potential consumers for the company.
The main disadvantages in the marketing strategy of LeShop.ch are the following. First the company have limitations regarding the quantities allowed to order. By adopting this rule, the organization is limiting the scope of its potential clients to those who only want to buy less than a certain amount. We can conclude that LeShop.ch is only operating as a retailer and not as a wholesaler.
The second problem is the minimal limitation required to purchase, which is CHF 95. This clearly limits the scope of consumers to those who want or need to purchase above this price, and it may be a substantial part of the potential consumers.
Another competitive disadvantage (but may be an advantage for some people) is that LeShop.ch mainly advertise for Migros brands, which are products made directly by the company. According to me, this approach reduces the number of potential consumers, since some people are clearly attached to a particular brand such as “Red Bull” and would like to see it on their online shopping list.
Globally, all the advantages of LeShop.ch can also be found in Coop.ch. However, there are several crucial differences that need to be mentioned. The most important of them is that there is no limitation in terms of quantities ordered, which implies that the company is operating as a retailer and as a wholesaler, it clearly allows the organization to enlarge its market share by adding other potential consumers than simply individuals: restaurants, schools, hospitals and so on.
The methods of payment and the process of delivering differs also a little. For instance, you may pay with cash at the moment of the delivery, which is impossible with LeShop.ch. You may also choose the time of the delivery by checking the availability of your request in a grid.
The prices are higher than those of its main competitor, bur the products available include brands and high quality products such as the category “fine food products”.
The main disadvantage is that there is not the possibility to switch to English. In fact, only two languages are available: German and French. This is clearly a competitive disadvantage, because it limits the scope of potential consumers, by excluding a part of the international community, which speaks only English.
Another problem is that you have to be at home at the time of delivery, otherwise the order will be taken back to the store. For other products than common articles, such as wine, gifts, flowers and books: you have to wait several days before the delivery. In fact they will be delivered by postal services, this is why it will take more time.
The consumer profile
The general profile for consumers at LeShop.ch may contain the following elements. First, they would be mainly individual consumers and households. Secondly, given the fact that the prices are really cheaper than those of the competition, the company targets the working class, young adults, and students. In short, all those who care about the amount of budget allocated to food. The organization is also trying to create a customer loyalty; it means to attract to their site the actual consumers who go the malls, by giving them the possibility to use their M-Cumulus card when they are shopping online. Another important point, is that LeShop.ch try to charm the potential consumers who care about the environmental impact of such operations. In fact, the company tells that ordering online create less pollution than to take the car to go to the shop as usual.
All these marketing strategies are basically designed to broaden the scope of potential consumers by attracting them in a way or another to the site.
The general profile for consumers at Coop.ch is straightforward: the site is basically designed for consumers who are more looking for the quality of the products than for the prices. The aim of the company may to attract different social classes such as the working class but also the middle and upper-middle class.
The company also try to create a customer loyalty by giving the possibility to use the “Coop Card” while purchasing online.
An important point is that the scope of the potential consumers, as it was said before, is more extended since the company do not put any limit in the quantities you may order.
Conclusions and recommendations
According to the data that I gathered, the online industry is not a profitable business. For instance, LeShop.ch, which is actually the leader in this market, has an annual turnover of CHF 20 million, but the fact is that the company need to reach CHF 60 million to begin to be profitable.
Another important issue is the number of potential customers, which tends to be very low. Moreover, most of the actual online consumers already rely to one of the six competitors available in the Swiss market, and there is no reason for them to switch to a new one.
The biggest problem will be the operating costs involved to create the necessary infrastructure for these services. It will be particularly difficult to compete in this field with such giant industries as Migros or Coop.
To conclude this report, I would not advise you to extend the activities to the online shopping for all the reasons above. I’m afraid it will appear to be a very costly operation with no rewards at all. Nevertheless, we may take into consideration the marketing strategies used by Leshop.ch and Coop.ch, and see if we can apply them in our company. Thus, we may extend our core business and enlarge our market share, and may be after this, we may think about a diversification in the nature of our services.
Consumer Behaviour – Reading Material (Dr. Zamaros)