When retailers simply copy what the other guy does there isnever any lasting excitement encompassing the brand or its products. Founded in2007 and served its first customer in 2009 Relay Foods continues to grow andnow is operating in Virginia, Maryland,Washington, D.C., and Philadelphia markets.
With a focus onlocally grown and better for you food delivered; Relay Foods focus is fresh,organic locally grown foods for urban markets. In an interview with The HartmanGroup Relay Founder and COO detailed Relay’s point of differentiation in thefood deliver marketplace this way when asked “How would you compare Relay toPeapod or FreshDirect?”
Peapod is selling mass-market CPG brands as a luxury service due to their homedelivery fees and the economics of home delivery. It’s a different valueproposition. They are competing on price and selling the same things you canget at any grocery store.
One of the inhibitors of growth for Peapod, at least in my view, is that homegrocery delivery is a luxury service. They're asking people to pay a $10delivery fee on top of the grocery order to deliver to a customer’s home. YetPeapod is trying to position itself as the market leader in price, so the twofacts presented together—luxury service and price focus—don’t work.
Relay is a brand that is improving people's lives by making their livessimpler, better, healthier and happier. We are not about selling CPG items andmoving them as quickly and cheaply as possible. We are about making people'slives better. Our success is attributed to our customers, not to the brands wecarry on our virtual shelves.
FreshDirect is a company we admire, and they are perfectly positioned to meetNew York City’s online grocery demand. Their current business model won’t workas well in suburban cities such as Atlanta, Dallas and Los Angeles. But theymay still figure it out—they are a young company, after all.” You can find thefull interview by The Hartman Group at: http://www.hartman-group.com/hartbeat/relay-foods-interview-growth-of-online-local-grocery
How close are you toyour customers? Do you have defined differentiation in the ready-2-eat andheat-N-eat fresh food space? Non-traditional food retailers are simultaneouslyassisting your customers in consumer relevant ways are you? Copy-cat menu and positioning will notprevail long term. Need help?
Interestedin learning how the 5P’s of Food Marketing can edify your retail food brandwhile creating a platform for consumer convenient meal participation, differentiationand individualization contact us via Email us at: grocerant@q.com or visitFacebook.com/Steven Johnson, Linkedin.com/in/grocerant ortwitter.com/grocerant
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