Online Shopping Facility of Chocolate For Ever - Coursework Example

Topic: The factors that ‘Chocolate For Ever’ needs to consider before launching their online shopping facility. Contents: Contents Introduction: 1 Factors Affecting Online Chocolate Shopping: 2 Advantages: 6 Risks Involved: 7 Factors Need to Consider for Maximising Profit: 7 Conclusion: 9 List of References: 10 Introduction: Right from times unknown, chocolates have been one of the most favourite gift items that are appreciated by people irrespective of age, taste and across geographical boundaries. Anybody staying at Windsor in United Kingdom is familiar with the name of ‘Chocolate For Ever’, for their unique and delicious chocolates. They have been satisfying local people and the tourists with their unique delicacies in chocolate. Apart from selling chocolates in the shop, the company is also quite efficient in supplying orders to a variety of weddings and parties. However, while thinking of expanding their business through online selling facility, it is necessary for ‘Chocolate For Ever’ to consider both the pros and cons, before stepping into the business of selling chocolates, online. Factors Affecting Online Chocolate Shopping: Research reveals that the market for grocery shopping through Internet is gaining interest in Europe, especially in the Central European countries. With the availability of cheap computer equipment and the ongoing popularity of Internet, customers are now interested in opting for more easy as well as convenient alternative in place of regular shopping, especially in the urban areas. In order to analyse the market potential for the grocery shopping through Internet, a study was carried out in Vienna. Primary objectives of the study were to find out whether there was any relation in between demographics and shopping habits of the customers, the amount of Internet experiences in the households and the market potential as well as the online shopping plans for the urban people in Vienna. As Internet is the crucial prerequisite for online shopping, figure 1 shows that in the year 1997, only ten percent people of Vienna were Internet users and eleven percent people had plans to get Internet access, within one year. (Schuster A. and Sporn B., n.d.) Figure 1: Internet Access In The Households In Dec 1997 (Source: Schuster A. and Sporn B., n.d.) Figure 2: Intention Of Shoppers To Buy Products Online (Source: Schuster A. and Sporn B., n.d.) When the people were asked to list services they were keen to buy through Internet, only ten people were willing to buy groceries online and about ten percent people were interested to buy gifts online. The results are displayed in figure 2. Since buying chocolates can be considered both a grocery and gift item, it can be inferred that in the year 1997, about ten percent people were willing to shop chocolates online. (Schuster A. and Sporn B., n.d.) Security issues are also primary concern to the consumers as the consumers need to transfer financial and personal information for shopping online. So, the company should ensure that the information will be kept confidential. Some of the consumers have said they are not interested to shop online as they prefer to see the products in their own eyes and they have often experienced inconvenient delivery time and methods. Studies also reveal that the most popular food product is dry foods, so consumers will be interested in buying chocolates. Figure 3 reveals that most people prefer to buy food products through online means than any other products. (Kempiak M. and Fox M. A., n.d.) Topic: Groceries Purchased Online (Source: Kempiak M. and Fox M. A., n.d.) Advantages: It is quite necessary to analyse the advantages of online shopping to decide that whether a particular product can bring profit to the company through online selling facility. One of the major benefits of buying chocolates online is that it saves time and as the customers do not have to visit the marketplace or move from one shop to another, to choose a particular product. It also offers independence to the customers from fixed store hours. It is much more convenient option than physically shopping for a chocolate gift or buying chocolates as a food item. It is quite convenient and easy to compare prices through Internet and settling with the best option. The consumers can also easily update their knowledge regarding the products, without even visiting a single store. (Schuster A. and Sporn B., n.d.) Another major advantage for ‘Chocolate For Ever’ if they offer online selling facility will be that they will be able to target those customers, for whom, visiting the shop is not possible. The aged persons as well as the handicapped persons can also buy their preferred chocolate item for themselves as well as gift others, easily from the online shopping facility. (Kempiak M. and Fox M. A., n.d.) Online grocery stores are able to provide organised information, as consumers value information only when they are presented in a useable form. So, the company needs to present each category separately with proper pictures. As chocolate is also considered as a popular gift item, it is necessary to present the picture of the chocolates that the company is promoting for gift purpose. It is also necessary to rank the items according to their nutritional value, so that it is easier for consumers to decide. (Jones A., 1999) The stores with brand recognition and reputation perform better in the online market. So, it is advantageous for ‘Chocolate For Ever’, as it is already a reputed name, so people will be interested to avail the online facility. (Kempiak M. and Fox M. A., n.d.) Risks Involved: One of the primary disadvantages is that one needs to be computer and Internet friendly to use the online facility. So, it is necessary to find out whether most of the targeted customers are Internet friendly or not and whether they prefer to order chocolates online more than shopping it from the supermarkets. Chocolates being food products, they are perishable after a certain time; so, it is necessary to deliver the product within stipulated time. Also, it is quite necessary that the consumers get quality items every time, when they shop online; as otherwise, consumers will not prefer it over buying it from the stores and it will be a bad advertisement for the company. Factors Need to Consider for Maximising Profit: Food Marketing Institute or FMI has identified the consumer’s motives, who prefer to shop online. Study reveals that about 86% consumers access their computers on a daily basis, out of which, 70% people use Internet for shopping purposes. Research puts forward the fact that people in between ages 25 and 34 are more keen to use online shopping facility. So, if ‘Chocolate For Ever’ plans to launch online shopping facility, it is better to target the people belonging this age group and also to display products that will interest these people. It has often been noticed that there are five elements that the consumers analyse before ordering anything online. They look for ambiance, price, convenience, variety of products offered and the service. (Kempiak M. and Fox M. A., n.d.) Any company should pay attention to build long term relationships by directly addressing the needs of the customers. This can be achieved by providing general and product support, shopping support, offering transaction support, providing solutions to problems and delivering within stipulated time. The company also needs to ensure the quality of the product. (Hooker N. H. and Ernst S., 2002) The company can also promote the advantage of chocolate through their website. Chocolates are known to uplift mood and cure depression; they are also helpful in curing some diseases. The company can advertise these benefits of chocolate online that can in turn can make people more interested to buy chocolates from the website. (Chocolate Records and Novelty Chocolate Gifts, n.d.) It will be helpful for the company if they introduce money back facility. Consumers will be more interested to avail online shopping facilities, if they know that they can get their money back, if the item is not in good condition or they fail to receive what they have ordered for. This company can also offer specific chocolates on some special days like Valentine’s Day and New Year’s Day. People can just place their order and the gift items in the form of chocolates will reach their special people, without any hassle. Moreover, offering discounts online can also attract more and more customers to avail online shopping facility. (Nguyen L., February 2009) The success of Peapod, a famous e-grocery store can be discussed in this regard. Apart from meeting consumer demands and offering quality products, Peapod offered one additional facility. After ordering the products online, the consumers could pick up and choose the ordered products from the stores and could also receive the delivery at home, the next day, if they opted for it. Peapod also had alliance with local supermarket chain in order to develop their grocery business. (Xie K., 1996) Conclusion: After analyzing the advantages and the risks involved in the business, it can be inferred that it will be profitable for ‘Chocolate For Ever’ to expand its business online. In this way, it will be able to reach more customers, for whom, visiting the supermarkets for shopping is not possible. The customers can also place their order anytime they feel like, just by visiting the website and making their choice. However, the company needs to ensure quality and delivery time in order to maintain a long term relationship with the customer, which can maximise their profit in the long run. Total: 1416 words List of References: Chocolate Records and Novelty Chocolate Gifts, (no date), University of Southern California, Retrieved on February 16, 2009, from Hooker N. H. and Ernst S., (2002), E-Groceries, Fact or Fiction: Will we ever shop for food online?, Retrieved on February 16, 2009, from Jones A., (1999), Online Grocery Stores, Retrieved on February 16, 2009, from Kempiak M. and Fox M. A., (no date), Online Grocery Shopping: Consumer Motives, Concerns, and Business Models, Retrieved on February 16, 2009, from Nguyen L., (February 2009), Chocolate Art at Joseph Schmidt, Synapse – The UCSF Student Newspaper, Vol. 51, No. 15, Retrieved on February 16, 2009, from Schuster A. and Sporn B., (no date), Potential for Online Grocery Shopping in the Urban Area of Vienna, Retrieved on February 16, 2009, from Xie K., (1996), A Strategic Analysis Of Online Grocery And Its Future Outlook, Retrieved on February 16, 2009, from Read More