INDEX
SHOP OWNERS IN COPENHAGEN
CUSTOMER SEGMENT IN COPENHAGEN
Introduction Future of Retail What is the service about
Knowing the shop owner Key �indings Personas: Identifying the shop owners Service approach curve
THE SERVICE
STAKEHOLDERS
BETA TEST
Customer journey What will we offer to the customers? Basic service Premium service
Competitors Motivation matrix Business canvas
Prototype
Knowing our customer Key �indings Personas: Identifying the customers Service approach curve Service levels: Customers and the service
*PROJECT TIMELINE
The Future of Retail The majority of the small grocery stores in Copenhagen will close within the near future. This will have an impact on the community in several aspects.
Danish consumers are aware of food sustainability: in 2012 about 80% of Danes claimed to avoid wasting food and 70% claimed to prioritize seasonal fruits and vegetables. The supermarket chain Rema 1000 leads the �ield in social responsibility while other companies like Dansk Supermarked and Coop Danmark (the two dominating companies in the Danish retail market) are right behind it. In 2013 only 7 % of Danes preferred to shop online rather in the physical stores1 . The small independent grocers are up against huge competitors so in order to survive they need to distinguish themselves and offer the consumers something they cannot �ind in the mainstream supermarket chains - for instance unique imported products1.
Retailers in Denmark
Digitalization The digitalization of retail is growing rapidly, focusing mostly on three types of customer relations: 1) Interaction with customers. 2) Internal business process. 3) Interaction with suppliers.
Data collected through CRM is used to increase consumer loyalty and keep a track of customer data for example customer relations and transactions. The related term big data has negative connotations attached to it but it aids companies in analyzing consumer behavior and methods in addressing customers making it possible to live up to high consumer demands2.
The customer/consumer The segment of customers utilizing the small grocery stores consists of consumers between the ages of 18-25, parental singles or couples and consumers with a household income of 700.000 kr. per year. However, currently only 4 pct. of all purchases of staple goods occur through e-trade – so many consumers prefer to do their grocery shopping in the physical store2. Although, the interest of online shopping of staple goods is expected to increase. 38 pct. of Danish consumers are reported to buy at least some of their produce online. Around half of the e-shoppers are motivated by the fact that they can place their order from home – the other half because they can get the order delivered. The general motivation is for e-shopping is convenience2, so if the customer expe-
riences any type of inconvenience the company might lose that customer forever. However, for any purchase, physical or web-based, the price is always the main motivation: 32 pct. of the Danish consumers disclose that lowering the price on the products could persuade them into buying more of their groceries online2. Also, it’s worthy of note that the price of delivery is another big concern for the consumers. On the other hand, the consumer’s interest in purchasing food over the internet continues to increase so over time the market will grow substantially. However, consumers will only shop for groceries online if the offer is right. Also, the general consumer skepticism in Scandinavia could be a hindrance to growth.
Consequences The consequences of the increase of web-trade could be that the interest in physical shopping decreases alongside it and this could mean that the shops with no web-shop would lose revenue and perhaps in the end close their business. The physical shops in the larger urban areas will have the highest chances of survival – however, the amount of shops in the less populated areas will experience a severe decrease2.
The economics of pickup can be substantially more attractive.
There are distinct consumer segments for pickup and delivery, so a mixed model is advisable. Difference per model, best-case economics in high-density area with low labor cost. (€/order)
Users, %
Lessons learned · Trust and loyality is key. The service should depend on the loyal customer – not on the occasional one. · Customer density is everything*. · The consumer is not willing to pay more for their groceries in an e-grocer than in a normal supermarket. · Pick-up and delivery models will need to be continually improved, tested and innovated in order to succeed. · Replacing a product which is sold out can be challenging. However, user technology can aid in offering the customer groceries tailored to his/her needs. · E-grocery is not copying supermarket into the internet. · The greatest challenge is changing consumer behavior.
Nonusers, % Avarage basket size
Home delivery
Pickup
Value-added tax Net sales Cost of inventories recogonized Gross margin Margin adjustments Adjusted gross margin Marketing France
Spain United Kingdom
France
Spain United Kingdom
Prefer delivery Either delivery or pickup is ok Prefer pickup
Complaints/calls/refunds Picking and handing Transport to end client Gard-payment fees
Assumes pricing based on typicall willingness to pay - which is much higher for delivery than pickup
Delivery fee Variable margin
* Customer density: Number of potential customers within a certain unit of land area.
The demand
Omnichannel alchemy
The availability of the sustainable and local produce is an important factor. In Germany you can get a map disclosing where in the country (or the world) the products come from. Whole Foods in the US has a program offering quality checks on local farms and products. The consumers demand more local products – but freshness, quality and price remain the most important factors for the consumers in America and many other western countries3.
Delivery is problematic and requires a lot of logistics, while click-and-collect is a cheaper and more convenient option for users and company alike. Picking up the orders also makes it possible for the user to have a look in the physical store and extent the purchase if he or she wishes. Furthermore a good design can be a strong tool for creating customer loyalty and avoiding churn11. A positive experience is an important element for capturing occasional users and making them loyal.
1. Grocery Retailers in Denmark; Euromonitor International 2014; 2. Fremtidens Detailhandel; Konkurrence – og Forbrugerstyrrelsen 2014; 3. Ripe for Grocers – The Local Food Movement; A.T Kearney 2014; 4. The Way to Pro�itable Internet Grocery Retailing – Six Lessons Learned; Tanskanen, Kari etc.; International Journal of Retail & Distribution Management; vol.30; Emerald 2002. 5. Omnichannel Alchemy – Turning Online Grocery Sales to Gold; Biggs, Chris & Suhren, Julian; The Bostom Consulting Group 2013.
WHAT IS THE SERVICE ABOUT?
Foopla connects independent local and specialty food stores into a single digital market. It's a fresh, affordable and easy alternative for everyday grocery shopping.
Foopla provides users with an easy online interface, allowing to explore fresh and exotic products, recipes and dietary options. When customer makes an order it is sent via SMS to the shop owner, which begins packing it. By the time customer gets to the shop - it is packed and waiting for instant pickup. Thus making the regular shopping experience meaningful, simple and fast. Our solution allows customers to save time and money, and enjoy hand-picked quality every day.
EXPERIENCE
The service will focus on two different perspectives: the local customer and the shop owner as centers of the shopping process. The experience from the shop perspective will be supported by the ideal of business growth, thus the service will give him more regular customers and will improve their popularity inside the community. From the customer perspective the service aims to make the local shopping process convenient and adaptable to their needs, offering also quality products and later inspiring recipes that will guide the customer in the use of new ingredients in their daily meals.
OFFER
The service will offer to both of these actors bene�its around food, in the case of the shop owner a new way of approaching the user through digitalization by giving them enough support and assistance during the use of the service; and for the users a future service of delivery or pick-up, (depending on the case) of quality products that also give the user the chance to explore new options for cooking and greater in�luence on which products shops offer.
SHOP OWNERS IN COPENHAGEN
Shop Owners in Copenhagen
I love being independent
It is a family business.
If I’m happy, the shop will be a happy place
Center of social interaction.
This is not just about money
Motivation: Give a good service
Dream: Keep my shop open.
Key Findings
Shops don't maintain any rigid inventory system
Some of the shops have facebook pages, maintained by their children
Shop owners that are under 50 are more likely to �ind new options to diversify their business
TECHRELATIONSHIP
The products they have in the shop are hand selected by them Presentation is the key, successful shops pay attention to it when offering the products in the shop
PRODUCTS
Location of the shop is the key factor in forming community around it
They love their jobs, and don’t consider it only as a source of income
The popularity of the shop depends on its reputation
They are the service itself, they take care of their clients by being attentive and talking to the customers
LOCATION/ COMMUNITY
MINDSET
Is a family business where children get involved once a week, physically in the store or through the social media
When the shops are successful they are open to change
Personas
Shop Owner
Erkan is from a Midle-east country . He owns his shop for over 10 years in the same place in the city. Is 55 years old now and he speaks Arabic and some Danish.
Københavns Erhverv has middle-eastern employees who make cooperation easier. When he has problems with his business, he calls the business advisor of this area to ask for help. Cultural background affects his way of trusting or making a business.
He wants to keep his shop open to the public. and to deliver a good service to his clients, also to create a community out of this relationships.
Erkan is positive towards his business and open to make it better with the help of people he trust.
The job is my hobby
I love to serve and try to make my shop a happy place
Erkan
Shop Owner
Fakir is a shop owener who has a grocery store in Frederikesberg. He has been working in this shop for 20 years and the local community knows him. He likes his job and always stays attentive to new ideas to make it better. He is 59 years old and technology is not his strength.
Fakir is very apprehensive towards technology solutions for his business. He prefers other type of approaches. He belives creating a community with his clients is the way of success. He believes there are no competitors and threatenings in business.
Fakir wants his shop to continue being popoular and hopes to live from it 10 years more.
Fakir opens his shop at 8a.m everyday. He likes to talk with customers and gives the best service he can give.
Find new options that allows him to offer differet products types.
He has a group of shop assistants. They take tare of cashier and organize products.
He is very practical to take decision and choose the best option, but this also closes some doors to new opportunities for his business.
My business needs care and attention
I’m always searching for new possibilties for scaling my shop offer
Fakir
Shop Owner
Salim owns a shop in Amager. He is from Kazakhstan. He is a littlbe bit shy and he doesn’t speak good English or Danish, so he doesn’t talk to customers that much.
Salim has his way of business and he does not want to change. He has no idea of smart phones. The only device he has is an old nokia. Smart phone is too complicated for him.
Salim wants more customers but he has no idea what to do.
Everyday Salim opens his store at 9a.m. and normally he closes at 8p.m.
He stays in the store the whole day watching people come in and out. He sometimes makes very simple posters if he has some products on sale. That is the only way he promots his business. He noticed there are more and more supermarkets around his store and the amount of customers come to his store is less ans less.
The prices are all here
Salim
Shop Owner
Erkan Salim
non-successful shop owners
Fakir
succesful but open to change shop owners
succesful shop owners
The curve depicts the three representations from the shop owner user research. The shop owner in the top of the curve represents the group that should be approached �irst, due to their interest on working with our service concept and their responsiveness to improve their business. They perceive the relation with the service as an opportunity for delivering a better shopping experience to their local community that will help their business reputation.
CUSTOMER SEGMENT IN COPENHAGEN
Customer segement in Copenhagen
RELATION OPPORTUNITY Unique service experience
OFFER Unique and exotic goods
Unique physical space Explore healthy food options
Hand-picked fresh products Fair price
Perception: These shops offer a new shopping experience.
Motivation: Low cost and unique products.
Key Findings
Variety of stores and designs, plays an important role in creating unique experiences
Interface allows different styles of interaction from regular shopping to "inspire me" mode with recipe suggestions
Community around each shop makes it more unique and meaningful to shop there
INSPIRATION
Users appreciate the freshness of the products as well as its variety The physical space provides an special experience of interaction
“I need to feel inspired to go there” Some of the products are unknown so the user don’t feel attracted
BUYING EXPERIENCE
The quality is variable from shop to shop, and there's no certi�ication of products like "organic"
Allergies and special diet conditions are not easy to handle in these shops
Assortment of the shop isn't organized well - it's hard to �ind products, and or information about them
DISADVANTAGES
Small shops offer individual service and high degree of customization. Customers often make suggestions on what specialty goods shop owner should try to order.
This shops offer a variety of things that users cannot �ind in supermarkets
ADVANTAGES
Personas
Customer
He doesn’t want a ‘Deletable’ app, also he wants simplify all the process.
Christian is 31 years old. He works in an IT company as a project manager. He lives in an apartment with his wife in Amager. Both of them like cooking.
Christian likes to try new different food ingredients without making trouble at home.
Christian always goes to the small grocery store on his way back home, sometimes he �indes some vegetable he never saw before. He wants to buy them but he has no idea how to cook. Normally Christian just looked at the name tag. He wants to �ind some information online, however most of the times, he just forget the name after he arrives home.
He also wants to make sure all the food is fresh.
Let’s make something new today
Christian
Customer Frederik prefers to get half-cooked food. Then he doesn’t have to spend time to cleaning and preparing.
Frederik is a student from CBS. He lives with his roommates in Frederiksberg, close to his univeristy. He rarely cooks, because he hates to shop and to prepare food.
Frederik trusts more the quality of products in supermarkets. He always goes to the same supermarket because he is familiar with the stuff there, it’s easier to �ind what he wants. Besides, Frederik uses Just Eat a lot because it’s easy and fast.
He needs something fast and ef�icient.
I’ll not spend my time cooking, I want something fast.
Frederik
Customer Alina likes the variety of products and the freshness that is visible from the entrance. She feels home and has a good realation with the shop owner in the shop.
Alina is from Pakistain. She is a part-time worker in a folke pre-school. She is 50 years old now and has a family of two teenager kids together with her husband. She cooks for the whole family everyday and she likes to buy speci�ic fresh products for her meals.
The taste the �lavors of home, feeding her family with the best she can get.
She goes shopping once a week after work, She goes to two shops that are near home, where she can compare prices and products. She has a budget for food, so she tries to make it cheaper and ef�icient for her.
11.8%
There is a third store that she doesn’t like because it crowded and is dif�icult to �ind what she needs. She feels bad for not going because her friends had told her that shop has really good products, but for her, time is more important for cooking and doing the rest of her home duty.
I love to buy original products that make me feel home Freshness matters the most in the food we eat at home
Alina
Customer
Christian Frederik
seldom goes to buy
Alina
sometimes goes to buy
always goes to buy
The customers in the middle are the ones to approach �irst due to the shop offer is not new for them, rising their shopping frequency without pushing them for a radical behavioral change.
For the contrary, for the customers that never visit these shops the products and the experience are something totally new, so the approach should take a slower pace. The last customer segment will not be the principal focus for the sake of not delivering something new to them; they have a personal relation with the shop owner and familiarity with the products.
Service levels: Customers and the service
DAILY SUPPLIES
INSPIRATION
Grocery shopping
Inspiring recepies
11.8 %
31.8 %
INSTANT SHOPPING Time Saving
39.8 %
8% Instant Shopping
20% Inspiration Chart depicting strategy of prioritized market segments for the service.
Segments are differentiated based on the level of service they demand. The offer of the service grows in complexity as the customer demands more attractive features to �ind the service interesting.
60.2% Exploratory Market
* Percentages from Denmark stadistk.
11.8% Daily Supplies
IMPORTANT PLAYERS
Map of players in grocery-apps & services market
program yalty ms Lo
Rate about
mparing engin Co e
Wonday
C
Chaser
FooDoo
Dayfair
Ph
du
cts
eTilbudavis
p
O Meal Planners
l Stores ica s y
Let Køb
Your Local
ro
ni c rga
Nær Køb
Retnemt
Skagen
Irma
Kost
Aarstiderme
Nemlig
Gro cery
Lyoness
ing on p ou
Osuma
Delive ry
Grab and Cook
Qbuy
Foopla
P ic k - u p S er
vic
e
KBHFF
All Unite
Bownty
Pick-up services benchmarking
Social Value / Sustainability
Attractiveness / UI
Price premium
KBHFF Kost Grab and Cook
Broadness Assortment
Convinience / Time saving
Qbuy Foopla
THE SERVICE
The Service
The following customer journey is strati�ied along the customer segments. Each one of them uses a speci�ic scenario where the persona, which has speci�ic needs, �inds answers through the service and gets motivated to keep using it. The �irst one will present the basic service offer and the last two will depict the premium service that corresponds to the advances and demand of the market. The �irst one will describe a normal process of grocery shopping and pick-up whereas the other graphics will depict the additional features that the consumer can �ind engaging for keeping their loyalty within the service.
Customer journey
The basic service will correspond to the process of grocery shopping with pick up, where the user will be able to �ind the wanted products in the app inventory/list and will pick-up their bag with the corresponding elements. The service will allow the shop owner to have control over the process of packaging, storage and inviting users to join the service. The service PoS assistant, an important actor that will represent Foopla, will give the shop owner the chance to better understand the service process and will provide the shop owner with the different elements needed for the service as an inventory document, the service poster and the paper bags for packaging. The PoS assistant will also provide advice and deals for the customers, supporting the shop and the experience that the customers will have inside.
Customer journey : Basic Service
Browse items;
On boarding;
Get instruction and training;
Hang posters in the store;
Check and update the inventory;
Select items and put in the cart; Check order details;
Get information from the posters in the store; Download the app;
Select payment options; Get the order with name or code through SMS; Pick the items and pack;
Send a noti�ication of package is ready;
Place the package with handwritten tags;
Con�irm and pay;
Get the receipt with code; Get noti�ication of ‘Package is ready’;
Check the code of the package;
Go to the store and show the code;
Hand the package;
Pick the package;
Check the income;
Assistant helps check the inventory and control quality of products;
Check ranking, feedback and customer service;
Update the stock;
Get support from the assistant;
Posters
PoS Assistant
The assistant brings the posters and packages to shop owners; The assistant gives instructions about service; Create and upload inventory;
Metrics from posters and word of mouth sign ups; Line of visibility
Posters
Phone
The posters with QR code lead to download the app;
Phone
Package
PoS Assistant
SMS of order information and code; Receive assistant’s help; Organize packages;
Phone Clear information (pictures; stock and price) about products; Step by step responds; Receipt with code;
Phone
Bank
Package
Assistant
Assistant’s help;
Check the rating, etc; Customer feedback;
Rating and feedback; Tell potential users about this service;
Phone
App
Package
Good quality bag (with ‘foopla pant’); Rating/ reviews and customer service system;
SYSTEM MAP
Farms
Small Producers
Farming Collective
Vendors Market
The API is a software gatewar to connect expansions of the service, developed by foopla, and by 3rd parties.
Customer journey : Premium Service
The following two graphics depict the premium service offer and the way the service upgrades with attractive elements for giving added value to the user during the process of grocery shopping. This features will be included as part of the service as a possibility for expanding the market. The �irst one presents the unknown products discovery and how the service accompanies the process, guiding the user into the possible recipes and this product’s relevance in a daily meal.
The second graphic depicts a process of discovery from a user that never shops in this kind of retailer. The service will provide all the facilities for him to get attracted to purchase his groceries. In this case the facility is the delivery process and for keeping the user connected to the service it will provide bene�its in the experience if the user gives back the container for reuse.
On boarding;
Get instruction and training;
Hang posters in the store; Check and update the inventory;
Search on app;
Find the description of the unknown product and some recipes;
Ask the shop owner about the unknown product;
Get inspired, save the recipe and decide to buy;
Find the poster;
Download the app;
Search on App and �ind solutions;
Remind the customer about the bene�its of using the app; Immediate payment; Hand the package;
Poster
Assistant
The assistant brings the poster and packages to shop owners; The assistant gives instructions about service; Create and upload inventory;
Metrics from posters and word of mouth sign ups; Line of visibility
Phone
Shop owner
Poster
Unknown product
Poster offers information and leads to download the app;
Poster
Store maintenance;
Open the app, check the saved recipes; Cook the product;
Upload pictures to cooking community;
* Check-in the location; Pay;
Get the package;
Package
A poster with all the needed information; Packages with logo;
Buy the unknown product and some other ingredients mentioned by the recipe;
Assistant helps check the inventory and control quality of products;
Phone
Unknown product
Package
Recipes with clear information and ingredients are easy to get;
Notice of the bene�it of using this service; *Check-in con�irmation;
Assistant Assistant’s help;
Phone
Unknown product
Recipes with clear information;
Cooking community;
On boarding;
Get instruction and training;
Hang posters in the store;
Browse the website of the service;
Browse on Internet, with the keywords of grocery shopping and deliver;
Get inspired from different recipes and recommendations; Put products in the cart;
Compare and choose the service;
Check and update the inventory;
Check order details;
Select delivery option and input address; Receive the order information via SMS; Pick items and pack;
Give package to delivery man;
Send a SMS of delivery statement to customer;
Con�irm and pay; Get the receipt;
Assistant helps check the inventory and control quality of products;
Get the package from the delivery man;
Check the income;
Share experience with friends;
Check ranking, feedback and customer service; Maintenance of the store;
Rating and feedback;
Receive a noti�ication of delivery;
Bank Poster
Assistant
The assistant brings the posters and packages to shop owner; The assistant gives instructions about service; Create and upload inventory;
Metrics from posters and word of mouth sign ups; Line of visibility
Website Website of the service;
Assistant Delivery man
Phone
SMS with the order information; Assistant’s help;
Packages with logo;
Package
Website
Phone
Product information and recipes; Step by step respond
Assistant
Package
Assistant’s help;
Noti�ication of payment; Noti�ication of package delivery statement from delivery man;
Package
Delivery man
Good quality bag with handwritten card; Rating/ reviews and customer service system;
Foopla Motivation Matrix
Gives to
Customer
Groceries for daily consumption;
Customer
Recipes for various products; Good service that can make returning customers;
Shop owner
Assistant
Near location pick-up service;
Various good quality products; Ensure a quality buying experience from the shop;
On time delivery;
Delivery company
Neighborhood manager
Right package;
Satisfying delivery service; Ensure grocery stores exist in the market under the right regulation;
Shop owner
Assistant
Loyalty;
Revenue;
Community; Sustainable business;
Experience with a new way of business; Introduction and training; Help and support daily business;
Deliver packages and posters;
Receptive communication; Good working relation; Doubts and needs;
Business Advisor
Direct feedback;
Customer behaviour with the grocery stores;
Packages ready to deliver;
Problems to solve;
Customer’s address and phone number;
Needs to fultil; Problems;
Feeling of useful and helpful;
Information;
Achieve the goal of supporting and improving business of grocery stores;
Support; Advice; Pro�it;
Delivery service;
Simple distribution chain to local places;
Training;
Experiences of previous work;
Update new laws and new rules;
Store information;
Business advice;
Delivery company
Advices;
Updated information;
New solution for supporting these shops;
FOOPLA BUSINESS MODEL CANVAS 2015
KEY PARTNERS
KEY ACTIVITIES Assistant trains the shop owner
Shop owner’s participation in the service Inventory digitalization
Delivery service
KEY RESOURCES
Buying local: constructing community
Making shopping at local stores faster and easier than shopping at supermarkets or online shops.
CUSTOMER RELATIONSHIP
Product packages Assistant
COST STRUCTURE Assistance’s salary
App development and maintainance Branding: Posters and �lyers
Exotic products that inspire
USER SEGMENT
Shop owner
Shop Assistant
Usual customers
CHANNELS
App development and maintianance
Neigborhood manager
Packages production
VALUE PROPOSITION
Web site / App
Often customers
Grocery store
REVENUE STREAMS Percentage from customer’s grocery shopping
BETA TEST
Project Timeline
Foopla registered for VAT
First idea of a price comparing app
Participation in Startup Sonar, PIVOT
Finalist in Social IvĂŚrksĂŚtterpris 2015
10 shops registered
UkendtBy followers reach 40,000
Trial and Error
30 shops registered
First sale Closed-beta-test