Analysis of the Consumer Profile of LeShop.ch and Coop.ch
Introduction
Actual trends
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 facts
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.
For a conclusion of this paper, it is within researched reasoning that this company needs to do something else to keep its competitive edge in the segment. There are many factors that could be considered for why this company needs to expand in this industry. Also there needs to be other attributes of the company that could be added to offer the consumer a better service. This could include services such as delivering directly to the home or having a pick up window or carry out service. The reasons for doing these things is to keep advantages over competitors, of which include bigger restaurant chains that are trying to enter the market.
The company can improve its channel strategy to enhance its current performance in one way. The company’s website is too reliant in the physical stores. The website has photos of the physical store ostensibly to help customers to connect with it. This idea seems well founded. However, the target market for any company that operates an online shopping system is not local. It transcends geographical boundaries. The company needs to consider how it can make the online shopping experience authentic and complete for customers who may never visit any of its physical stores. A website makes a company a global player. In this regard, the company needs to expand its channel strategy to take into account an expanded potential market. This shift in strategy will increase the sales the company makes.
When choosing to shop online or at a brick and mortar store, start by weighing the pros and cons of each established method of shopping. When shopping online a consumer is are able to browse multiple stores while sitting in their pajamas, no driving from store to store, and there is no need to deal with overcrowded stores. Time is not an issue, browsing online for a pair of shoes might start at three in the morning or five at night. Online shopping brings the global market place directly to a shopper’s front door. Under normal circumstances, the common person would not be able to browse and purchase from stores far away like China.
Competition is always a big threat looming over any business. Kudler wants to ensure they are a step above the market by providing their customers an exceptional shopping experience. The landscape has changed in terms of the competitive nature of business; quality customer experience and service can be the determining factor that keeps customers coming back and obtaining new ones. A solid marketing plan can attract ...
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
E-retailing presents a new way to shop. The store is open 24 hours a day. With a few clicks of the mouse, consumers can compare prices easily. The key rule for purchasing online is the same as for traditional purchases. That is, the best consumer is the best-informed consumer.
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According to Naik & Winer (2005), the characteristics of the product plays an important role in consumer choice for retail channels and depicts that various products are appropriate for marketing on Internet instead of considering effects of supposed transactions costs over the channel choice along with the experience of consumers. Consumer has shifted their decision making abilities towards Digital technology. At present time, the decision making process is dependent on other things, including brand name, advertising message, product positioning or context and their previous
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Since its comet-like boom in the nineties the internet has attracted myriads of companies to do business on this boundaryless media. And the boom does not seem to stop. eCommerceis a catchword, which stands for a whole branch of new types of businesses that mushroomed up in the last couple of years. Retailers, all sorts of companies, even law offices are using the web for their daily business. There seems to be no comparable other way to develop and exploit global markets. The internet is more and more used as a fast, innovative and cost-saving tool to gain and serve customers where they feel most comfortable and relaxed, namely right in their office or at home (Jonscher, 1999, p.204). In the following there are just three examples of companies, which base a significant fraction of their business on the web.
With the development of technology and the internet, online-shopping gradually comes into our lives, and it becomes more and more popular. Now, online shopping competes fiercely with traditional in-store shopping. The passage will analyze and compare the merits and demerits of each of the shopping methods. Their advantages are generally equal, and their strengths and weaknesses form a complementary relationship.
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