The Golden Knights Clarkson University Reh School
Description: The Golden Knights Clarkson University Reh School of Business John Molson MBA International Case Competition 2021 Case 3 Christina Chapman Willem Kurdziel Patience Robinson Abhi Tripathi Instacart, a digital grocery service, which
Related Topics
Download Presentation
"The Golden Knights Clarkson University Reh School" is the property of its rightful owner. Permission is granted to download and print the materials on this website for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentation Transcript
slide1. The Golden Knights
Clarkson University Reh School of Business
John Molson MBA International Case Competition 2021
Case 3 Christina Chapman
Willem Kurdziel
Patience Robinson
Abhi Tripathi ‹#›<br>
slide2. Instacart, a digital grocery service, which helped shift shoppers from supermarket aisles to smartphones, is now making a push into selling online advertising but the question is, will this new evolved business model be sustainable? Grocery Delivery Service Only Grocery Delivery Service & Online Ad Inability to turn consistent profits given continued rise in transportation and labor costs Squeezed profit margins Food and consumer brands spend on digital advertising is projected to continue to grow (~32% growth YoY 2021, further expected growth 17% 2022) Established footprint Significant Market Value Growth YoY
($265M new investment in 2021 driving a market valuation of $39M) Diversified Portfolio- More retail partners = larger product footprint and offers non-CPG brands a place to market their goods
(Over 500M products and expanded partnerships with new retailers beyond grocery) OPPORTUNITY!<br>
slide3. Europe is the most attractive market to penetrate next
Similar demographic as North America
Personal transport is common
Expands grocer customer base
Already well established in existing grocery stores and supermarkets:
ALDI
Walmart ‹#› Global Expansion<br>
slide4. ‹#› Instacart Shoppers as Business Owners Current State:
Customer places product order in Instacart app- limited to separate orders per store
Random shopper is assigned to shop order
Random individual is assigned to deliver order (could be different individual from shopper) Forward Looking Strategy: Empower Instacart shoppers to become their own business owners!
Every Instacart shopper sets their own fees, hours, and stores
Ability to select the same shopper again and again
Ability to receive multiple deliveries from different stores from one shopper Result Result Inconsistent delivery services
Unsatisfied customers/Potential for customer loss Consistent delivery services
Repeat customers/ Ability to build strong relationships between shoppers and customers<br>
slide5. ‹#› Smart Shopping Carts - Caper Acquistion More Efficient Shopping
Avoid Check Out Lines
In-Store Navigation
Check-Off Shopping Lists Better Customer Experience
More Trips per Day for Instacart Shoppers Data Acquisition
Shopping Behavior Additional avenue of data for Instacart
Better understanding of customers
Leverage digital ad business
Better lay out stores Cut Down Costs
Reduce labor costs
Better Manage Inventory Less front-end workers
Efforts can be allocated to store maintenance and customer service
Reduce carrying cost and waste from unused inventory Competition
Amazon Brick-and-Mortar
Stores with Similar Tech Smaller grocers will be able to compete in the future<br>
slide6. ‹#› Celebrity Endorsements Strategy Adding celebrity chef videos
Recipes will call for products with purchase link attached to the video
Ability to filter by famous chef’s recipes
Adding cookbooks
Provide ways to tell customers what to buy
Adding fitness experts
Meal prep for keto, vegan, etc. customers
Adding dieticians
Adding dietician support to select customized meals with pre-ordering links Gaining more clicks and purchase power:<br>
slide7. ‹#› Closing Statement In order for Instacart’s growth to continue post COVID-19, specifically within advertising, it requires the continued need to develop and maintain connections with consumers, shoppers and retailers in order to create and maintain the infrastructure needed to foster their success as an e-commerce service.<br>
slide8. ‹#› QUESTIONS<br>
Clarkson University Reh School of Business
John Molson MBA International Case Competition 2021
Case 3 Christina Chapman
Willem Kurdziel
Patience Robinson
Abhi Tripathi ‹#›<br>
slide2. Instacart, a digital grocery service, which helped shift shoppers from supermarket aisles to smartphones, is now making a push into selling online advertising but the question is, will this new evolved business model be sustainable? Grocery Delivery Service Only Grocery Delivery Service & Online Ad Inability to turn consistent profits given continued rise in transportation and labor costs Squeezed profit margins Food and consumer brands spend on digital advertising is projected to continue to grow (~32% growth YoY 2021, further expected growth 17% 2022) Established footprint Significant Market Value Growth YoY
($265M new investment in 2021 driving a market valuation of $39M) Diversified Portfolio- More retail partners = larger product footprint and offers non-CPG brands a place to market their goods
(Over 500M products and expanded partnerships with new retailers beyond grocery) OPPORTUNITY!<br>
slide3. Europe is the most attractive market to penetrate next
Similar demographic as North America
Personal transport is common
Expands grocer customer base
Already well established in existing grocery stores and supermarkets:
ALDI
Walmart ‹#› Global Expansion<br>
slide4. ‹#› Instacart Shoppers as Business Owners Current State:
Customer places product order in Instacart app- limited to separate orders per store
Random shopper is assigned to shop order
Random individual is assigned to deliver order (could be different individual from shopper) Forward Looking Strategy: Empower Instacart shoppers to become their own business owners!
Every Instacart shopper sets their own fees, hours, and stores
Ability to select the same shopper again and again
Ability to receive multiple deliveries from different stores from one shopper Result Result Inconsistent delivery services
Unsatisfied customers/Potential for customer loss Consistent delivery services
Repeat customers/ Ability to build strong relationships between shoppers and customers<br>
slide5. ‹#› Smart Shopping Carts - Caper Acquistion More Efficient Shopping
Avoid Check Out Lines
In-Store Navigation
Check-Off Shopping Lists Better Customer Experience
More Trips per Day for Instacart Shoppers Data Acquisition
Shopping Behavior Additional avenue of data for Instacart
Better understanding of customers
Leverage digital ad business
Better lay out stores Cut Down Costs
Reduce labor costs
Better Manage Inventory Less front-end workers
Efforts can be allocated to store maintenance and customer service
Reduce carrying cost and waste from unused inventory Competition
Amazon Brick-and-Mortar
Stores with Similar Tech Smaller grocers will be able to compete in the future<br>
slide6. ‹#› Celebrity Endorsements Strategy Adding celebrity chef videos
Recipes will call for products with purchase link attached to the video
Ability to filter by famous chef’s recipes
Adding cookbooks
Provide ways to tell customers what to buy
Adding fitness experts
Meal prep for keto, vegan, etc. customers
Adding dieticians
Adding dietician support to select customized meals with pre-ordering links Gaining more clicks and purchase power:<br>
slide7. ‹#› Closing Statement In order for Instacart’s growth to continue post COVID-19, specifically within advertising, it requires the continued need to develop and maintain connections with consumers, shoppers and retailers in order to create and maintain the infrastructure needed to foster their success as an e-commerce service.<br>
slide8. ‹#› QUESTIONS<br>