The undercurrents of
competition within the fresh food space have not reached such a tipping point
since the invention of refrigeration.
Yes, you have too harkin back to the day’s when fresh food was fresh to
find advances in the retail food model that we are seeing today. So, wait a just minute. We have a roll in this.
Let’s get started we know
that Amazon Fresh has been trialled
in Seattle for the last six years, and the service has recently expanded to San
Francisco and Los Angles. The service, which requires that you become a
$299-a-year member of Amazon Prime to use, delivers some food from local
stores, but most come from the company's own refrigerated warehouses.
In addition we know that Amazon
Spotlight a fresh hot meal delivery service again trialled in Seattle (as
regular readers know Spotlight has been well documented on our blog). Spotlight allows Amazon to position itself
for delivery of both groceries and hot fresh prepared meals to your home. Yes, Amazon is allowing you shop and eat the
same way consumer do daily buying both, Ready-2-Eat, Heat-N-Eat fresh prepared
food and groceries then mix and matching a perfect meal.
Harkin back once again to envision
Amazon’s model, it is to have a ‘milk-truck’ in your neighborhood twice a day
at minimum. So, you see what goes around
comes around. Amazon’s Fresh Food and
Meal delivery complements Amazon's stated goal to provide 50% of everything
your need to 50% of all households within 4 hours. With trucks in your neighborhood all day long
Amazon thinks it has found that ‘last mile solution’.
Google on the other hand remembers Webvan, monitors
everything via ‘search’ and believes that now is the time to invest more in
fresh food and delivery. They continue to test ‘Google Shopping Express’ a same
day grocery shopping delivery service. However they are positioning for more
much more. So, what new testing might they try?
We know that Googlers from Mountain View, Boston
and Turkey have targeted the Ready-2-Eat and Heat-N-Eat fresh prepared
grocerant niche as well as groceries. We know that Google is the preeminent
global source for Grocerant news, views, and information establishing and
extending Foodservice Solutions® Grocerant Guru™ blog with unique sites from
the Philippines, France, Germany, and the United Kingdom to name but a few
countries.
Googlers that reviewed Grocerant Guru’s Grocerant.com plan and have a template
for the most consumer focused, food focused last mile solution that retailers
have seen to date. A template that has the capabilities to create service,
delivery equilibrium if not stifle rivals. Is your positioning filled with
consumer relevance? If not call Foodservice Solutions®.
When you are the leader in search
globally you know that the consumer is dynamic not static. Googles self-driving cars will be on the
streets well before Amazons dones are in the air. Self-driving food delivery in urban markets
will complement food delivery software creating additional retail foodservice
disruption.
While these two industry titans are squaring off
against each other for advertising dollars, retail sales, cloud space and food
sales it is legacy food retailers the ilk of Safeway, Kroger, and Publix that
will be blindsided at the incremental success these non-traditional fresh food
retailers will have on their business.
Google is paying
attention to the success of AmazonFresh they know that Amazon is planning to
expand to 20 other cities, including some outside the US. Today online grocery
sales are still just 4% of the UK grocery market that is valued at £7.7bn in
2014, so it wouldn’t be surprising if British cities are top of Google and
Amazon’s Go-To markets. Again Google
self-driving cars would work great in London and can be there before Amazons
drones.
Success does leave
clues one clue is consumers move forward not backward, they are dynamic not
static. Google and Amazon are focusing
on Tomorrows customers while many legacy food retailers continue to focus on yesterday’s
customers today. Do you need Outside-Eye’s
for Inside Results? Googles Grocerant
Niche positioning can win and stifle competitors.
Interested
in learning how the 5P’s of Food Marketing can edify your retail food brand
while creating a platform for consumer convenient meal participation, differentiation
and individualization Visit www.FoodserviceSolutions.us or Facebook.com/Steven Johnson,
Linkedin.com/in/grocerant or twitter.com/grocerant
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