3.2 - Positioning

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Feb 20, 2024

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1 Product Differentiation and Product Positioning Online Grocery Delivery Service Marketing Management Product differentiation and Product Positioning Workshop 3 Positioning:
2 Positioning can be defined as “ when the product stands in relation to others offering similar products and services in the market place” (Górska-Warsewicz & Kulykovets, 2017). Positioning is an important marketing strategy as it helps the product to enter or remain in the market in a unique approach. A good product positioning will ensure that it is the Unique selling proposition and has unique options. In order to ensure of having a good positioning in the market, it is essential to understand the customer preferences, product and brand capabilities as well as how the competitor is positioning their product in the market (Górska-Warsewicz & Kulykovets, 2017). Furthermore, the required modifications for the product positioning strategy will follow after analyzing the key essentials mentioned above. Competitors Analysis: There are not many competitors in the market that provide the online grocery delivery service. In the current US market, during COVID-19, customers began using Amazon fresh and Instacart. Alternatively, DoorDash and Postmates also has the grocery delivery service, along with food delivery from restaurants. Instacart: The Covid-19 has played a major role that increased the user base for Instacart and Amazon fresh. Instacart has a different business model that provides a platform for retail stores and partners, also known as the economy-based. This business model is their unique selling proposition, and individual contractors accept the online order for delivery through their application. Their business model is very straightforward which also has many benefits. It permits Instacart to rapidly extend its geological impression without bringing about the
3 significant expenses of building brick-and-mortar stores. Also, the organization doesn't have to put resources into stock. Instacart creates income through month to month memberships, delivery expenses, gift vouchers, and commissions from its accomplices. Its application additionally charges promotion expenses for item positions and included items. By utilizing its scale and productive tasks, Instacart enjoys made a cutthroat benefit in the current market. Amazon Fresh Amazon is known to be a largest online retailer which provides all services and products. Subsequently, due to having strong financial, they always had the first mover advantage with a strong positioning in the market. Amazon has a wide range of networks and deals with whole foods and various amazon centers, allowing them to have an advantage in the market. Unlike Amazon, no other service has a strong financial strategy to pull out strings immediately. A major advantage for Amazon was the acquisition of whole food. Positioning Matrix: For this research project, the service name(brand) will be referred to as GroFast!
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4 The positioning map shows that the competitors have either high delivery fees or membership costs. Whereas, Grofast will be designed to have low cost delivery fees with flexible delivery system. Product Positioning: Grofast will be designed to have an online app, which will be user friendly and ensure that the delivery costs will be lower than the current competitors. This is a strategy that will ensure to increase the customer user base. The app will also be designed according to customer preferences and will include a catalogue of all the products. The requested groceries will be picked up by the Grofast delivery agent, who will be placed across all geographic localities. Membership cost Low Cost delivery fees Delivery Flexibility Instacart Amazon Door Dash GroFast
5 References: Górska-Warsewicz, H., & Kulykovets, O. (2017). Product placement as an effective tool for the brand positioning.  Advancing Insights on Brand Management . https://doi.org/10.5772/intechopen.69989