15fen’s Strategic Progress

1. What does the traditional Fresh Food market compete on? Please identify the important attributes that define the market behavior.

First is freshness, the consumers would like to see, smell and touch the freshness in the marketing before they buy.

Secondly, able to choose among multiple suppliers in one market to compare

Third, cost efficiency, people especially in elder age group prepare the lower cost product

Fourth, convenience, house wife who live near by the market may prefer to shopping in the traditional fresh food market

2. What are the customer segments of Traditional Fresh Food market? What are the three-tiers of noncustomers? What are the pain points and preferences of three-tiers of noncustomers?

The consumer segmentation are including:

 Smart shopper, like Older generation, who always want to pay less with best quality

 Large package shopper: Larger household family: shopping at wholesale market with more price bargaining power.

 Convenience seeker: this group of people are busy every day and looking for the most convivence way for grocery. For example: young couple who both working and only shopping in the nearby market

 Freshness seeker: for this segment, freshness is the top one standard to choose fresh food, they even want to smell, touch the freshness. Example, housewife who want to bring the best quantity fresh food to her family

The three tiers of noncustomers are:

 First tier: soon-to be noncustomers-buyers who are on the edge of your market ready jump ship. For example, the smart shopper and freshness seekers.

 Second tier: refusing noncustomers-buyers who consciously choose against your market. The people who concerns a lot on organic and food safety

 Third tier: unexplored noncustomers-buyers who are in a market distant from yours

The people never cook themselves and feel frustrated on preparing cooking materials

The preference for this model is: the price is still very competitive compared with other merging channel, to say, supermarket or c-store. Also the diversely on the category and comparable on price is still very attractive to some “price sensitive shoppers”

The pain point: the change on life-style and the increasing trend on “pursuing quality and health life” may cause hard to make the traditional fresh market be more attractive to better income shoppers.

3. Use ERIC framework to identify the potential blue ocean for Fresh Food market.

 Eliminate: Which factors that the industry takes for granted should be eliminated?

Less offline investment on stores to spend to much on expend the logistic: currently fresh food market is competing on speed. From the case, not only 15fen but also lots of local big players are also keep building the logistic network to make the delivery more time-efficient. On one hand, it will for sure increase consumer experience, but on the other hand, it will also increase lots of fixed cost to make the business low profit

 Reduce: Which factors should be reduced well below the industry standard?

Instead of well-covered all category of fresh products, it may be better to be focus on top 20 best sell products. The reason on doing it is, even people consider the “product diversity” as one of the top criteria, however most choice not only make shopper hard to make decision but also increase lots of cost on logistic.

 Increase: Which factors should be raised well above the industry standard?

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