Fresh Direct

Subject Code: MKTG 10001 | Subject Name: Principle of Marketing |

Student ID Number: 391290 | Student Name: Steven Cahyadi |

Tutorial Day/Time: Thursday, 2pm | Tutor Name: Andrew Zur |

Assignment Name or Number: Assignment 1 |

The online grocery industry was volatile around a decade ago. The story about how Webvan’s uncontrolled growth that eventually leads to its bankruptcy had shaken the industry and yet it doesn’t stop FreshDirect from starting an online grocery business (Bruder, 2010). Bruder (2010) continue by explaining how FreshDirect were able to come out of the crisis of the time. The main marketing tool behind FreshDirect’s success is customer orientation. This essay will start by discussing the concept of customer orientation and what it means to customers. Then it will contine to discuss the ways that FreshDirect strengthen its customer service and its impact to the business.

Rohit, Farley and Webster (1993) defined customer orientation as a set of beliefs that emphasize on customer’s needs, while including the interest of the stakeholders such as owners, management and employees in order to construct a long-term profitable business. It argues that a business can benefit from creating goods and services that are in line with what customers want. Using this concept FreshDirect decided to start an online grocery, because around the time when Freshdirect started its business, a decent supermarket was scarce. The supermarkets were filthier, more cramped up and less well staffed compared to other cities (Moskin, 2005). Also by using the Internet as a mean of selling their products, FreshDirect don’t need many physical stores that should provide convenience and require a larger space. Due to reduced costs from physical locations they are able to sell their products cheaper than most local supermarkets (Leonhardt, 2006) while providing a convenient grocery shopping that customers can do virtually anywhere and anytime. Additionally, Freshdirect also...