Ocado, a popular online grocery store is a perfect example of a successful online grocery business model. It was just a few years ago, that a company called Ocado acquired a struggling family owned store in Notting Hill, London. The store had been owned and operated by the Haworth family since the 1940s. It sold to Ocado in 2020, at a great value, and they have continued to operate the business successfully, with excellent customer service and incredible prices.
Ocado exemplifies several qualities of an exceptional grocery store. First, they provide top of the line products and are always expanding to offer the best of ingredients, making it easier than ever to be the store of choice for health-conscious shoppers. Ocado is committed to offering healthy food choices that are low in sodium, with exceptional nutritional value for their customers.
Ocado is incredibly successful, with over two million shoppers every week. Customers love the wonderful customer service they receive, and the incredible products they are able to find. They give a small percentage of their sales to charity, because they believe in doing business in a sustainable way. They like the environmentally friendly policies and practices that they practice. And they do things the old-fashioned way: with direct contact with their customers, with both a friendly face and a knowledgeable voice.
In fact, one of the things that makeOcado so successful is the power of word-of-mouth. People just love shopping at Ocado and would tell others about it. This allows them to spread the word to others who want to learn more about their business. Not only do customers recommend their businesses, but also friends and family members who want to expand their lifestyle.
All of these things, together, create an excellent business opportunity for any retail or food service company, like Ocado. They fit into every style of retail location, and for every customer demographic. This makes them ideal for expansion opportunities. If you have an existing service provider or retail location, and are looking to do business, now is the time to explore the possibilities.
There are five steps to consider when considering the advantages of starting an Ocado grocery store. First, determine your business opportunity by understanding the needs of your current customers. These needs may include quality ingredients, a convenient location, a friendly service, a more environmental approach to business, or any combination of these and other needs that you feel are important to the success of your business.
Next, determine the number of customers you will need to serve with the amount of space you have available to serve them. Then, determine how you will utilize that space, in terms of building a market, keeping the customers you already have happy, and how much money you need to raise to start your business. Finally, evaluate your competition and determine what your needs will be. How are you going to compete?
The HBR Case Solutions we developed for Ocado cover each of these five steps, so your growth plans can be determined in a step-by-step fashion, from start to finish. Take a look at the details below:
Customer Satisfaction: How much of your existing customer base could you be serving with this location, and how willing would you be to expand? What kind of services could you provide?
Your Market: If you already have a service provider or retail location, what would you add or improve on there? What changes or enhancements would make that location better suited for Ocado’s offerings?
Your Needs: Can you meet those needs and meet them now. or later?