Case Study: Non-Store Grocery Store

Q3a
Selling products through non-store grocery retailer provides minimization or elimination of additional costs such as “slotting fees”. These costs are incurred as the store grocery retailer charges for the holding of the products in their warehouse and outlet stores. Additionally, for most store grocery retailer, different products will have to compete for a good shelf position in the store so that more consumers can notice the product. Non-store grocery retailer will decrease these costs and problems as they will not be charged as much due to the absence of a physical store. Consumer will also be able to browse the products directly online without any obstruction unlike in the physical store due to placement. It is also a convenience way for consumer to make purchases at their comfort zone without the need to squeeze with the crowd or queue at the check-out lanes for payments.

However, by having the products sold through non-store grocery retailers decrease the opportunity for cross-selling as there is almost no opportunity for the seller to strike a conversation with the consumers and market their other products. For example, if the products are sold in grocery retailers with a store, the

By matching the price with these competitors, you are able to attract the consumer in trying out your product and subsequently win them over. With going-rate pricing, the price will not result in the Haitai having a competitive detriment and Haitai will be able to attract the consumer with the different flavors of the product they have. A good use of this pricing method will be for the cracker product that Haitai will be introducing here as there are other crackers available in the current market. To allow for consumer to give Haitai’s crackers a try, it would be best that the prices are set with the competitor’s price in