peapod-smart shopping for busy people

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Presented by group 5: 0742890,, 0738201, 0734937, 0742890, 0837822, 0738481

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Contents Number

Learning objectives 3 Introduction 4 Q.1. Where is the opportunities for bidirectional optimization at Peapod?

6 Q.2. How can Peapod manage its service perishability? 9 Q.3. How can peapod manage its productive capacity? 13 Q.4. Suggest reasons why Peapod has not yet become profitable. 15 Recommendations 18 Conclusion 19 Bibliography 20

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Learning objectives

Identify the opportunities for bidirectional optimization at Peapod?

Demonstrate how Peapod manage its service perishability?

Express the ways can peapod manage its productive capacity?

Analyse the reasons why Peapod has not become profitable.

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Introduction

Peapod is virtual grocery delivery service owned by Royal Ahold.

Peapod was founded in 1989 by Andrew and Thomas Parkinson.

The idea behind Peapod is to save customers time.

Peapod provides flexible delivery hours for customers

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The StrategicService Vision of Peapod

Service Delivery System

Operating Strategy Service Concept Target Market Segment

• To provide the world in providing local interactive grocery shopping service

• Allow time flexibility

• Offer customized service

• They aim to satisfy each customer

• Uses windows platform with pictures of various products and lists.

• Do peoples shopping

• Deliver to their door

• Change people s experience while shopping.

• Help customers save time

• Well educated

• Busy people

• Technically savvy

• Dual income families

James ,A and Mona, J Fitzsimmons (2008) Service Management: Operations, Strategy, Information technology. 6th ed. Mc-Graw-Hill Education

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Q.1. Where are opportunities for bidirectional optimization at Peapod?

Bidirectional optimization is feasibility of enhancing customer satisfaction at the same time providing what is most suitable for the company.

Customer-supplier duality

Customer duality is when customers become participant of the service delivery.

ServiceCategory

Customer-Supplier

>InputOutput>

ServiceProvider

Minds Student >MindKnowledge>

Professor

Bodies Patient >ToothFilling>

Dentist

Belongings Investor >MoneyInterest>

Bank

Information Client >Documents1040>

Tax Preparer

Peapod is a single-Level Bidirectional Service Supply Relationship

Customers have to make an order on the internet , phone, fax as well as choose their delivery time that suits them in order to receive a service.


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Q.1. Where are opportunities for bidirectional optimization at Peapod?...continued

Managing Productive Capacity

Service capacity is when services provider provides its services with minimum excess.

Peapod meet its service capacity by using high level of service duality that suits both customer and Peapod.

Customers supplied inputs can vary in quality

Peapod can give more choices on its time window so customers can chose how much the pay for their delivery.

For example Tesco allows customers to make orders a week in advance and request lees pay for it while people who want next day delivery pay more.


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Q.1. Where are opportunities for bidirectional optimization at Peapod?...continued

High customisation creates high service value

Busy customers can participate less and pay more for the service quality they receive.

For example Peapod can provide automated delivery order so customers can receive their weekly shopping with out having to make an order every week.

This will help Peapod prioritise their services and be organised.

The higher the customization the higher the cost so this benefits Peapod.


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Q.2. How can Peapod manage its service perishability?...continued

Perishability One of the factors used to distinguish

services from physical goods. Unlike physical products, services

cannot be stored for later sale so that a failure to sell at a time of creation results in a complete loss of the service.

Managing Pershability is the path peapod takes in the service management to limit the waste of productive capacity in distributing the work force.

Westburnpublisher,(2009)westpublisher,[Online www : http://www.westburnpublishers.com/marketing-dictionary/p/perishability.aspx)Sticky-market(2009)sticky-market[Online www] accessed on (25 of April 2009)


http://www.westburnpublishers.com/marketing-dictionary/p/perishability.aspx

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Q.2. How can Peapod manage its service perishability?.....continued

Ways for Peapod to mange it service pershability.

An effective use of time window

Dynamic schedule optimization software allow Peapod to allocate every worker to ever point of delivery.

Peapod have incorporated the ability to utilize the time in which their workers are seen to be constructively doing the tasks in which they have been given.

Workers are available to undertaken any task at any given time. This will enhance the infrastructure that has been created within peapod


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Q.2. How can Peapod manage its service perishability?....continued

The process of training, refining, extending skills and capacity.

Peapod train and enforce the skills and capabilities of their workers.

This allows for consumers to benefit from a personal shopper who will carefully select the produce and ensure that this is kept chilled until required.

Training given to workers at peapod ensures that expected to cut out long run costs ensuring the productivity of the organization


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Q.2. How can Peapod manage its service perishability?....continued

Peapod manage its pershability

Peapod is working with the Cube Route service across the entire organization which are located in 13 markets across the United States.

The Cube Route service is being used by Peapod for dispatch management and visibility into its delivery operations.

This allow customers track the status of each delivery in real time, and respond to customer queries quickly and efficiently.

“Cube Route, Inc offers information digitization, dispatch management, package tracking, and booking notification module service”

(LinkedIn, 2009)Linkedin, (2009) Linkedin [Online www] ttp://www.linkedin.com/companies/cube-route Accessed on(25 April 2009)http://findarticles.com/p/articles/mi_m0EIN/is_2005_Sept_19/ai_n15396276/?tag=content;col1Smartcomputing(2009)Smartcomputiong [Online www] (http://www.smartcomputing.com/Editorial/article.asp?article=articles/archive/l0507/20l07/20l07.asp&guid=Accessed on(25 April 2009)James ,A and Mona, J Fitzsimmons (2008) Service Management: Operations, Strategy, Information technology. 6th ed. Mc-Graw-Hill Education

http://www.linkedin.com/companies/cube-route%20(26

http://findarticles.com/p/articles/mi_m0EIN/is_2005_Sept_19/ai_n15396276/?tag=content;col1

http://www.smartcomputing.com/Editorial/article.asp?article=articles/archive/l0507/20l07/20l07.asp&guid=Accessed

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Q.3. How can peapod manage its productive capacity?

Productive Capacity The maximum output you could

achieve with your current production equipment when it is working for the maximum practical number of hours and with the maximum efficiency and minimum down and change over times.

(sticky-marketing,2009)

The Main deliberation of product capacity for mobile workers is the amount of the time spent between jobs and the distance between jobs.

James ,A and Mona, J Fitzsimmons (2008) Service Management: Operations, Strategy, Information technology. 6th ed. Mc-Graw-Hill Education Sticky-market(2009)sticky-market[Online www] http://www.sticky-marketing.net/glossary/productive_capacity.htm) accessed on (25 of April 2009)

http://www.sticky-marketing.net/glossary/productive_capacity.htm

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Q.3. How can peapod manage its productive capacity?.......continued

The strategy for Managing Productive Capacity

Transfer: make knowledge available.

Peapod can provide FAQ to guide them through their order and answer any enquiries they have.

Proving all prices of product on the website.

Replacement: substitute technology for server

Automated service that makes their order based on previous orders and deliver it on the usual time.

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Q.3. How can peapod manage its productive capacity?......continued

Embellishment: enable self-service by teaching

While delivering orders, deliver a guide to help with inconveniences that happens when using the website.

Allowing customers make a decision on when and where to receive their product


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Q.4. Suggest reasons why Peapod has not yet become profitable.

Reasons why Peapod has not become successful.

1. Their target market is very limited. As they only target Well educated, technically savvy, dual-income families. So they could target every one that want to use their service and deliver customised service.

2. Customers have to make their order before they receive the price they have to pay. People always want to know before hand how much it is going cost them so


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Q.4. Suggest reasons why Peapod has not yet become profitable......continued

strength

Weaknesses

Opportunity

Threats

Peapod SWOT analysis

•They don't have ambient condition on their side so they can not enforce impulse purchasing.•People are not comfortable on giving their details to a third party to use and store.

•Customers can access the services via internet, fax and phone.•They give customers

•Peapod has the opportunity to expand world wide because research shows 65% of people hate grocery shopping.

•Peapod does not stand a chance compared with click-and-mortar companies.


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Recommendation

Based on customers previous order Peapod can provide customers with their weekly shopping automatically.

Incorporate with local supermarkets that are trusted by the local people and deliver fresh products to their customers.

Expand their target market in to delivering their services for every one that wants to use it.

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Conclusion

Peapod achieves bidirectional optimization by highly customising the services it offers as well us creating value at the same time.

Peapod uses effective time keeping, the process of training, refining, extending employees skills and capacity to avoid pershability.

Peapod has limited target market that gives them the opportunity to miss out on untouched target market.

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Bibliography

Books:Fitzsimmons, J and Fitzsimmons, M (2008). Service Management: Operations, Strategy, Information technology. London: London. 315-335.

Journals:Alam, I. (2006). Service innovation strategy and processes: a cross-national comparative analysis. International Marketing Review, Vol. 23, Iss: 3 pp.234-254. Mathieu, V. (2001). Service strategies within the manufacturing sector: benefits, costs and partnership, International Journal of Service Industry Management, Vol. 21, Iss: 5 pp. 451-475.

Websites:Linkedin, (2009) Linkedin [Online www] ttp://www.linkedin.com/companies/cube-route Accessed on(25 April 2009)http://findarticles.com/p/articles/mi_m0EIN/is_2005_Sept_19/ai_n15396276/?tag=content;col1Smartcomputing(2009)Smartcomputiong [Online www] (http://www.smartcomputing.com/Editorial/article.asp?article=articles/archive/l0507/20l07/20l07.asp&guid=Accessed on(25 April 2009)Sticky-market(2009)sticky-market[Online www] http://www.sticky-marketing.net/glossary/productive_capacity.htm) accessed on (25 of April 2009)

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