Le Shop Case Study 2015

M.Sc in Marketing and Communication
Case Study
LeShop
July 15, 2015

Contents
LeShop OverviewA
KPIs EvolutionB
Success FactorsC
Upcoming Marketing ObjectivesD

Zoe Zygogianni • Andreas Marinis • Zoi Sfyri • Dimitris Tzanos
M.Sc in Marketing and Communication • AUEB • LeShop Case Study • July 2015
4
LeShop
The company in brief
LeShop OverviewA
LeShop.ch is the leading Swiss online supermarket. The company
counts 50’000 regular customers and achieved a turnover of 165
million CHF in 2014.
The supermarket offers a unique assortment containing Migros
products as well as branded goods. Groceries including frozen foods
and other essentials, articles for home and hobby are delivered
directly to the customers’ door. Deliveries cover almost all Swiss
regions (95% of all households).
The great majority of customers are young families and
professionally active people. Above all, they appreciate the time
saving service and convenient online shopping experience because
it makes their everyday life much easier.
Source: Official LeShop Website

5
LeShop
Mission
LeShop OverviewA
Our mission is to offer you a simple and user-friendly shopping
experience, a unique assortment in Switzerland, a flexible delivery
and pick-up service and an excellent customer care.

6
LeShop
Vision
LeShop OverviewA
LeShop.ch strives to be Switzerland’s favourite supermarket.

8
LeShop Turnover Evolution
Financial Year 2014 closed at a turnover of CHF165M;
LeShop turnover is increasing FY over FY with a 15-year CAGR of ~28%
KPIs EvolutionB
165
158
150150151
132
112
92
65
47
33
151312
64
90
0
30
60
90
120
150
180
Turnover
(in million francs)
20001999
90
20142013201220112010200920082007200620052004200320022001
1795%
92%
28%
44%
43%
2015
CAGR
Note: CAGR stands for Compound Annual Growth Rate
Half 1 - 2015
Projection for
Half 2 - 2015

9
Product LifeCycle
Currently LeShop seems to be in the boundaries of Growth and Maturity phase
KPIs EvolutionB
Exponential
Logarithmic
Linear

10
LeShop Turnover Projection
Applying crisis CAGR (~5%) for the next 5 years, we conclude that in 2020, LeShop
turnover will equal >CHF210M
KPIs EvolutionB
214
205
198
192
185
90
165
158
150
0
30
60
90
120
150
180
210
240
Turnover
(in million francs)
2020
5%
201920182015
180
201420132012 2016 2017
90
CAGR
Actual Projection

11
Average shopping basket/year Evolution
Continuous increase in the cost of average shopping basket per year now standing at
~CHF250
KPIs EvolutionB
250
225
200
175
150
0
2013
244
248
Average shopping
basket/year
(in francs)
20122011
235
2010
235
2009
228
2008
224
2007
213
2006
213
2005
214
2004
204
2003
193
2002
165
2001
158
2000
142
2%

12
Average shopping basket per year vs. total turnover
Average shopping basket per year and turnover are correlated
KPIs EvolutionB
100
120
140
160
180
200
220
240
260
280
300
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
Average shopping
basket/year
(in francs)
Turnover
(in million francs)
2013
2012
2011 2010
2009
2008
200720062005
2004
2003
2002
2001
2000
R^2= 80,7%
Number of baskets per year

13
Unique orders per year
Highest number of unique orders was achieved at 2010;
Consistently >610K orders since then
KPIs EvolutionB
600
550
500
450
300
250
200
150
100
50
0
650 638
615
2011
638
2010
643
2009
579
2008
500
2007
433
2006
303
2005
220
2004
160
2003
79
2002
78
2001
73
2000
42
Unique Orders
(10^3)
20132012
4%

14
LeShop Team Evolution
All time high with ~300 collaborators at the beginning of 2015;
~25% annual growth rate since foundation
KPIs EvolutionB
292
257
243
200
220
207
167
134
7469
60
40
25
7
July
2011
December
2011
April
2013
January
2014
January
2015
October
2007
Dece
mber
2002
February
2005
October
2006
April
2002
April
1998
April
2000
April
2001
14%
24%
22%
81%
50%
25%
Dece
mber
2009
CAGR

15
Turnover vs. number of collaborators
These two metrics are highly correlated, as Rsquared is nearly ~1
KPIs EvolutionB
0
50
100
150
200
250
300
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
Collaborators
Turnover
(in million francs)
2013
2011
2009
2007
2006
2005
2002
2001
2000
R^2= 96,0%

16
Contribution per collaborator evolution
CHF0,75M the highest contribution per collaborator achieved in 2011
KPIs EvolutionB
300
400
600
800
500
700
0
2009
638
2007
553
2006
481
636
2002
213
2001
288
2000
240
2005
Contribution
per collaborator
(in 10^3 francs)
2013
651
2011
750
-13%
Resource
Optimisation

17
Marketing Details of 2014
LeShop being the market leader with 61% share; Driven at some extent of the
extensive usage of digital devices
KPIs EvolutionB
Part of turnover achieved
via …
Estimated market share
39%
iPhone/iPad &
Android smartphones
61%
Other
61%
LeShop
39%
Other e-shops

18
Mobile Orders Evolution
KPIs EvolutionB

19
LeShop Positioning
LeShop with clear focus on repeat customers and those preferring ordering fresh
products
KPIs EvolutionB
Customer Retention
Percentage of customers
ordering fresh products
91%
Repeat Customers
9%
Other
92%
customers ordering fresh products
8%
Not ordering fresh products

20
Customer Experience
Fully satisfied LeShop’s customer with a 100% coverage within Swiss households
KPIs EvolutionB
Complaint Resolution Delivery Area - Coverage
Customer Satisfaction Guarantee
100% 100%
Swiss households
due to
partnership
with
PostLogistics

21
LeShop Delivery Service
KPIs EvolutionB

22
Awards
KPIs EvolutionB
Best e-commerce website, European Biarritz Festival1998
Best e-commerce website, Swiss Multimedia Award1999
Best e-supermarket website in Switzerland, test made by Sonntagszeitung.ch2001
Strategis Strategy Award, Bilan/HEC Lausanne1999
Best grocery shopping website in Switzerland according to “anthrazit2005
Best e-supermarket website in Switzerland, test made by Beobachter.ch2001
“Best sustainable development partnership” award2007
Most convenient grocery shopping website in Sw/nd according to “anthrazit”2005
One of the 10 best e-shops of the eating/drinking category2008
Best of Swiss Web prize2009
“App Store BEST OF 2012” category in Switzerland2012
Bronze at „Best of Swiss Web Award“2013
Bronze medal for iPad app at “Best of Swiss Apps 2013”2013
2nd place at the “Swiss E-Commerce Award 2014” in the category Mobile2014

24
Success FactorsC
External Success Factors
•Limited opening hours in grocery stores
•Parking problems
•Small stores, narrow aisles, limited assortment
•Family spend 150-200 hours a year doing grocery
•Targeted working women with young children (free themselves
from stressful and tedious household replenishment duties)

25
Success FactorsC
•Big amount of product offered (5,500 food and non-food products)
•Focus on fresh products (meat, fruits, vegetables etc)
•Premium items (700 products)
•Cooperation with leading manufacturers (P&G, Nestle, BestFoods)
•Easy & secure online transaction, satisfying needs assortments,
customer care
Internal Success Factors
Products

26
Success FactorsC
•Family Line (bigger size packs)
•Value Line (20% to 30% below)
Price

27
Success FactorsC
•Credits to a customer who invited a new one
•Telemarketing, direct mainly, print ads and partnerships with
women’s magazines
•Emails (inform about new products or services and promotion)
•Price promotion campaigns
•Free product samples
•Moneyback 100% guarantee
•Prompt handling and communication of quality issues
Promotion

28
Success FactorsC
•Simple (make shopping grocery fast & easy)
•3 Languages
•User friendly online catalogue
•Product categorization
Website

29
Success FactorsC
•Use of scanner system
•Own logistic center (1st e-commerce fulfillment center in
Switzerland)
•Fulfill orders fast
Logistics

30
Success FactorsC
•Fast delivery (order before midnight delivered next day)
Delivery

32
Upcoming Marketing
Objectives
D
Marketing Objectives
Part I
•Evolution of internal processes in order to improve eliminate the
delivery time.
•Spread to new target group such as hard workers and university
students.
•Increase repeat customers by 6% per quarter.
•Partnership with more local services.
•Decrease promotion costs by site ads of new products.
•Decrease customer acquisition costs by 10% for the next year.
•Actions such as point system to ensure the customer loyalty.

33
Upcoming Marketing
Objectives
D
Marketing Objectives
Part II
•Online campaigns in social media so as to give emphasis to ‘word
of mouth’.
•Investments in new technologies in order to solve technological
problems which affect commercial processes.
•Increase the average shopping basket
•Increase the frequency of online grocery shopping
•Educate Swiss market on online grocery shopping through
presentation on public places
•Optimize every possible procedure to reduce the cost per order
•Invest further to quality and customer relationship

34
Upcoming Marketing
Objectives
D
Priority Activities to meet Marketing Objectives
Marketing Mix
1) PRODUCT
•3 kinds of customers
oby necessity
oby comfort
oTesters
2) PRICE
•3 price levels based on 3 baskets with a potential purchase of a
subscription which increases the frequency of customers.
3) PROMOTION
•brand awareness activities
•customer acquisition activities
•customer retention
4)PLACE
•Interfaces: PC, smartphone, tablet

35
Upcoming Marketing
Objectives
D
SWOT Analysis
Strengths
•Large landscape of proposed products.
•Well established MIGROS.
•3 kind of proposed services.
•Smartphone app.
•Le shop has the highest market share.
•Quick delivery time.

36
Upcoming Marketing
Objectives
D
SWOT Analysis
Weaknesses
•Needs to manage 2 stocks (conventional and leshop stock)
•Depends a lot of the technology.

37
Upcoming Marketing
Objectives
D
SWOT Analysis
Opportunities
•Word of mouth process.
•Important landscape of possible customers.
•Development of partnership with local services such as La poste.

38
Upcoming Marketing
Objectives
D
SWOT Analysis
Threats
•Energy price evolution. (Higher costs)
•Concurrent.
•Web payment.
•Administration frame evolution.
•Threat of new entries
•The competitor(Migros) has the highest national awareness
•The quality of service is very difficult to maintain

39
For further information please contact
Zoe Zygogianni
E-Mail: zoizyg@gmail.com
Andreas Marinis
E-Mail: andreasmarinis@hotmail.com
Dimitris Tzanos
E-Mail: tzanostzanos@gmail.com
Zoi Sfyri
E-Mail: sfyrizoi@gmail.com

40
Thank you!

Le Shop Case Study 2015

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