Grocery Delivery Software

Understanding Competition in Grocery Delivery: How to Penetrate the Market?

Starting a grocery delivery business or penetrating a new grocery market is challenging and can be done with 360-degree attention, strategy planning, and perfect execution. When you’re planning to enter into a new market, competitor analysis is a common thing every entrepreneur must do. 

This blog will be helpful if you’re one such an entrepreneur as it details the minute strategies and winning features of front runners of the grocery delivery market. 

As a leading grocery delivery app solution provider, we at SpotnEats have an acute knowledge of the grocery delivery market. The blog also encloses our expert’s voice regarding the same. Now let’s get into the blog.

What’s Going on in the Grocery Delivery Market?

In many editor’s picks, editorials, and feature journals you may read above advanced modes of delivery like drone delivery, AI-powered delivery, so and so. But are all these true?

Yes! But not today. All these are the possibilities for the future world. As an entrepreneur in the grocery delivery industry, you should know the flow of trends; but you must pay more attention to real-time ongoing and very-near future trends in the industry to penetrate the market. 

Just move the pile of articles regarding the future trend for a while. Let’s take a detailed look at the current scenario. 

  • As far now, all front runners in the market are serving their customers through a mobile application. 
  • They’re focusing on rapid delivery, premium delivery, and standard customer service. 
  • U.S, Canada, U.K, Germany, France, China, and India are having a high scope for the grocery delivery market.
  • Walmart, Instacart, Kroger, Amazon, and FreshDirect are well-known competitors in the market. 

Let’s check how they’re doing. 

Walmart – The Front Runner

As a frontrunner who has great brand visibility Walmart is familiar to anyone, no matter what location they are in. So, you should extract important strategies and minute marketing tactics by analyzing each move. 

In recent days, Walmart experienced growth in its online shopping revenue. As per its official finance report, Walmart’s US eCommerce sales grew 11.0% and 90% on a two-year stack. 

The firm achieves great heights even more than the estimated sales level by many firms. For instance, Statista estimates its online sales in 2022 as “ 38.7 billion U.S. dollars.” But the firm’s eCommerce net sales were $73.2 billion in the financial year 2022. The eCommerce sales contributed 21% of the net sales of the firm in the same financial year as the official report. From this report, you can abstract the fact, Focus on Online Sales can Boost Your Income

What’s New in Instacart?

Followed by Walmart, Instacart is also a well-known competitor in the grocery delivery market. As we talked about revenue-focused strategy already in the case of Walmart, let’s approach the case of Instacart in a different dimension; for instance, user engagement. 

In this approach, Instacart played very well in 2022. It launched new updates and features nearly two times a month in 2022. So, repeatedly the firm stimulated talks about it on social media, in business magazines, and by word of mouth. 

As the highlight of its updates, Instacart launches “Community Carts” in November 2022. 

From November to December 31, 2022, the consumers who participate in this crowdsourced program through its app can be part of donating groceries to many local Feeding America member food banks across the US. It increased the brand’s value and customer engagement.  

Like these, the firm introduces many customer engagement programs like Instacart Health, Connected Stores, and others. 

From Instacart you should learn the lesson to “Engage Your Customers while Increasing Brand Value.”

Build Your Brand like “Kroger”

Usually, in the supermarket industry, selling your own products can help you to increase your brand visibility, recognition, and awareness. In addition to this, when you sell your own products you can follow a competitive pricing strategy to compete in the market. So, in all aspects, selling your own brand products is the best!

Exactly it’s the strategy of Kroger. It sells more than 50% of products with its own label. Meanwhile, the brand also focuses on loyalty programs. For example, “Kroger Boost” is an upgraded loyalty program that benefits loyal customers to get 2X fuel points and free & fast delivery benefits. 

Through this loyalty program, the board increased its delivery sales by 34% over the last year with the help of Customer Fulfillment Centers. 

So, from Kroger, what do you learn?

Exactly, Proper Branding, Marketing, and Execution

FreshDirect Has a Plan for 2023

Like other front runners, fresh direct also has its unique strategies. In recent times, it deploys a cross-merchandising campaign for New York’s food obsession, and other marketing & selling strategies. 

The brand also has a plan to launch a new brand campaign and platform called, “Food That Delivers You”. The same is also the new tagline of the brand from 2023 that aims to reflect the new brand purpose: deliver the highest quality, freshest food, create food experiences and drive simple healthy solutions. It’ll also be rolling out a new FreshDirect website. 

Overall, the recent activities of FreshDirect denote that the brand is planning for great change in the year 2023. Simply, it’s evolving concerning the recent trend! 

So, “Be Alive with Current Trends” like FreshDirect is the lesson you can take away from this part. 

Amazon’s Strategy Behind Making Revenue

Amazon is also a tough competitor in the grocery delivery market and has a strong marketing-selling strategy for both online and offline modes of sales. That’s why the revenue of the firm is stable and high in most cases. 

The financial report from Amazon revealed that the net sales increased by 15% to $127.1 billion in the third quarter of 2022. The net sales increased 19% compared with the third quarter of 2021 when excluding the $5.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. So, it also reserves a place in the competitive market of grocery delivery. 

Considering consolidated balance sheets and other financial press releases of Amazon, we can find the online store of Amazon plays an important role in its business. 

These five front runners have some common things like the Grocery delivery app. All of them have unique mobile applications to enable their customers to order and get groceries at their convenient place. 

“Grocery Delivery App – A Primary Thing that You Should Focus on”

It’s the lesson you can abstract from the above examples. Now, let’s conclude.

How to Penetrate a Grocery Delivery Market?

When you’re planning to penetrate a grocery delivery service market, you have to plan your strategy, working plan, operational flow, business plan, backup ideas, financial support plan, and others.  All these can be done with the help of a business consultation team. 

Then you must focus on marketing and selling strategies to penetrate a market. For instance, referral programs, ads, pricing strategies, and others. However, you need to pay more attention to grocery app development as the mobile application will be the face of your brand for the end users. 

When you have an attractive, sleek, and seamless mobile application for your grocery delivery service, you can easily penetrate the grocery delivery service market. But at the initial time, investing money in custom grocery app development is not advisable. So, you can go with readymade scripts and app solutions.

A Customizable Grocery Delivery App Solution

SpotnEats is a flagship product of Uplogic Technologies which includes customizable grocery delivery software and app solutions. By availing of this, you can boost your penetration rate instantly. 

As it is a white-label customizable solution, you can rebrand it for your business legally. To know more about our product contact our experts now!

About the author

Steven Smith

I am Steven smith interested in writing blog contents related to the on-demand industry. I am currently working as a senior technical content analyst at SpotnEats. I am having keen interest to explore new advances in on-demand delivery business startup, app-development. I found a chance to gain more attention in the public forum of new startups.

Comments are closed.

Request for Similar Product

    Get your Free Demo