Ocado Life Brief: Research - Overall Delivery Service Comparison

I decided to research and compare a number of popular supermarkets to Ocado.

"This statistic illustrates the market share of grocery stores in Great Britain from August 2012 to August 2018. In the 12 weeks to August 12, 2018, Tesco's market share stood at 27.4 percent. Compared to a corresponding period in previous years, Tesco has progressively lost its share, while the discounters Aldi and Lidl have both gained share every year over the same 12 week periods. Prior to the popularity of the discounters, the grocery retail market was dominated by the 'big four' supermarkets: Tesco, Sainsbury's, Asda and Morrisons. On the back of the economic recession and an inflation, however, consumer behavior has shifted in favor of cheaper alternatives and discount supermarkets. The resulting 'price wars' has led to supermarkets lowering their prices and the highest share of food volume sales on promotion in Europe. Crucially, this has caused increased volatility in the grocery retail market and, as of January 2017, Aldi overtook the Co-operative to become the fifth largest supermarket in the UK." (Statista, 2018)


(Statista, 2018)
After discovering which companies had the highest market shares, I then compared the delivery services for each of these popular supermarkets to gain a better insight on what Ocado's delivery service offers in comparison to their competitors.

Once this research was completed, I discovered comparisons and many similarities between these supermarket's online shopping systems.

Delivery Passes
Tesco, Sainsbury's and ASDA all advertised some type of delivery pass system where delivery would be free or at a discounted rate if an upfront monthly subscription cost was paid. I noticed that Ocado also had a Smart Pass system which includes the same benefits that are given to those with a delivery pass (Tesco, Sainsbury's and ASDA) and more. For example with Ocado, you'll always save at least 10% on your favourite brands.

The subscription fee for Sainsbury's Anytime pass was: 6 Months = £35.00 (£5.83/month). 
However Tesco's Any Day pass was: 6 Months = £41.94 (£6.99/month). 
These two passes offer the same benefits however Tesco's was surprisingly more expense than Sainsbury's per month. This could be due to the difference in product price between these two competitors however on branded products they seem to charge the same price or may have a small price difference. Moreover the difference could be due to the prioritised Christmas delivery slots that Tesco offer that Sainsbury's nor ASDA offer. ASDA's anytime pass for 6 Months = £35.00 or £6.00/month which is the same as Sainsbury's meaning that the Christmas delivery slots must have increased the price of the subscription. However Ocado's anytime smart pass for 6 Months = £49.99 (£8.33/month) is the most expensive, this is due to the additional benefits you receive from purchasing a smart pass which includes:
  • Saving at least 10% on your favourite brands.
  • Priority access to Christmas deliveries.
  • Front of the queue for product samples.
  • A subscription to ocadolife magazine.
  • Exclusive offers and discounts via e-mail.
  • Special anniversary gifts.

Chicken Fingers from Tesco
Chicken Fingers from Sainsbury's

Checkout?
Tesco allows you to checkout but includes a £4 basket fee if the order is not over £40.
Sainsbury's requires a £25 minimum order to checkout.
ASDA requires a £40 minimum order to checkout.
Ocado requires a £40 minimum order to checkout.

Bags
Tesco & Sainsbury's - Additional fee of 40p per order is included.
ASDA - No additional fee.
Ocado - No additional fee, bags are given to customer to re-use and/or if bags are returned when ordering again customers receive a discount on the order.

Bibliography
Statista (2018) Market share of grocery stores in Great Britain from August 2012 to August 2018. [Online] Available at: https://www.statista.com/statistics/300656/grocery-market-share-in-great-britain-year-on-year-comparison/. [Accessed: 20 October 2018].

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