4-1 Assignment: Business Model Canvas

New Product: e-commerce service

Name

Institution

Course

Instructor

Date

Introduction

The proposed service for this presentation an ecommerce service by Trader Joe’s. Currently, the company has little online presence in terms of ecommerce and largely relies on its traditional mortar strategy to sell groceries to its customers. The company has more than 540 stores in different locations in the United States. With no ecommerce presence or curbside pickup, the company missed the pandemic driven e-grocery surge during the COVID-19 pandemic and it does not seem to mind about the missed opportunity. E-grocery service by Trader’s Joe will play a critical role in boosting overall profits and revenues of the company (Ryan, 2020).

How it fits

Currently, Trader Joe’s has over 540 stores in different parts in the United States. What this implies is that the company can easily integrate e-grocery service into its operations. The stores can be used as fulfillment centers for customer orders as well as pickup points. The company will not need to build more warehouses unless it wants to expand its operations within the United States.

Justification

Trader Joe’s has not been spared by the covid-19 pandemic and it was the high time the company had to strategize to remain in business. The limited-assortment grocer experienced significant challenges during the pandemic because of its small stores that made it hard for the store to reconfigure to accommodate the social distancing protocols. According to Placer. IA, Trader Joe’s customers dropped by 44.4 percent in 2020 April (Ryan, 2020). This shows how physical stores were significantly affected by the pandemic. According to research, the pandemic influenced the shopping behaviors as majority of shoppers shifted to online shopping (Gregory, 2021). The trend is expected to continue after the pandemic as people have realized how convenient it is to shop online and have their orders delivered to their door steps saving the time. The company tried delivery in New York City in 2019 but ended the service because it wanted to keep operational costs down. However, this has costed the company a great opportunity that could been leveraged during the pandemic. By implementing an e-commerce service, the sales by the company are projected to double in the next financial year since majority of customers are looking to shop online than visiting stores to purchase groceries.

Enhancing mission

The mission statement of the company is ‘to give our customers the best food and beverages values that they can find anywhere and to provide them with the information required to make informed buying decisions.” By implementing e-commerce service, Trader Joe’s will enhance customer shopping experience by making it convenient for customers to have their orders delivered to their door steps. The pandemic has impacted how people do shopping and traditional mortar strategies by retail stores are being phased out by online stores.

References

Ryan. T. (2020). Can Trader Joe’s continue thriving without delivery and curbside pickup? https://retailwire.com/discussion/can-trader-joes-continue-thriving-without-delivery-and- curbside-pickup/

Gregory, G. J. (2021). The ultimate disruption. https://www.epsilon.com/us/insights/core- content/how-covid-19-affects-consumer-behavior-and-marketing-trends