The undercurrents of competition within the fresh food space have not reached such a tipping point since the invention of refrigeration. Yes, you have too harkin back to the day’s when fresh food was fresh to find advances in the retail food model that we are seeing today. So, wait a just minute. We have a roll in this.
Let’s get started we know that Amazon Fresh has been trialled in Seattle for the last six years, and the service has recently expanded to San Francisco and Los Angles. The service, which requires that you become a $299-a-year member of Amazon Prime to use, delivers some food from local stores, but most come from the company's own refrigerated warehouses.
In addition we know that Amazon Spotlight a fresh hot meal delivery service again trialled in Seattle (as regular readers know Spotlight has been well documented on our blog). Spotlight allows Amazon to position itself for delivery of both groceries and hot fresh prepared meals to your home. Yes, Amazon is allowing you shop and eat the same way consumer do daily buying both, Ready-2-Eat, Heat-N-Eat fresh prepared food and groceries then mix and matching a perfect meal.
Harkin back once again to envision Amazon’s model, it is to have a ‘milk-truck’ in your neighborhood twice a day at minimum. So, you see what goes around comes around. Amazon’s Fresh Food and Meal delivery complements Amazon's stated goal to provide 50% of everything your need to 50% of all households within 4 hours. With trucks in your neighborhood all day long Amazon thinks it has found that ‘last mile solution’.
Google on the other hand remembers Webvan, monitors everything via ‘search’ and believes that now is the time to invest more in fresh food and delivery. They continue to test ‘Google Shopping Express’ a same day grocery shopping delivery service. However they are positioning for more much more. So, what new testing might they try?
We know that Googlers from Mountain View, Boston and Turkey have targeted the Ready-2-Eat and Heat-N-Eat fresh prepared grocerant niche as well as groceries. We know that Google is the preeminent global source for Grocerant news, views, and information establishing and extending Foodservice Solutions® Grocerant Guru™ blog with unique sites from the Philippines, France, Germany, and the United Kingdom to name but a few countries.
Googlers that reviewed Grocerant Guru’s Grocerant.com plan and have a template for the most consumer focused, food focused last mile solution that retailers have seen to date. A template that has the capabilities to create service, delivery equilibrium if not stifle rivals. Is your positioning filled with consumer relevance? If not call Foodservice Solutions®.
While these two industry titans are squaring off against each other for advertising dollars, retail sales, cloud space and food sales it is legacy food retailers the ilk of Safeway, Kroger, and Publix that will be blindsided at the incremental success these non-traditional fresh food retailers will have on their business.
Google is paying attention to the success of AmazonFresh they know that Amazon is planning to expand to 20 other cities, including some outside the US. Today online grocery sales are still just 4% of the UK grocery market that is valued at £7.7bn in 2014, so it wouldn’t be surprising if British cities are top of Google and Amazon’s Go-To markets. Again Google self-driving cars would work great in London and can be there before Amazons drones.
Success does leave clues one clue is consumers move forward not backward, they are dynamic not static. Google and Amazon are focusing on Tomorrows customers while many legacy food retailers continue to focus on yesterday’s customers today. Do you need Outside-Eye’s for Inside Results? Googles Grocerant Niche positioning can win and stifle competitors.
Interested in learning how the 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization Visit www.FoodserviceSolutions.us or Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant