Wawa, Inc., is a Pennsylvania-based chain of over 750 convenience stores along the East Coast. Wawa started
Question:
Wawa, Inc., is a Pennsylvania-based chain of over 750 convenience stores along the East Coast. Wawa started from humble beginnings as a dairy delivery service in the early 1800s and eventually became a food market in the 1960s, as consumer demands shifted. Wawa has been able to avoid the negative stereotypes of gas sta-tion food because it was first a food retailer. In 2015, a Market Force Information study of consumers named Wawa "America's Most Beloved Convenience Store." The results of a 2018 Market Force consumer survey showed Wawa as a top choice for sandwiches in the quick service restaurant (QSR) categorybeating the likes of Jersey Mike's, Jimmy John's, and Jason's Deli. This is the first time in history that a convenience store won the QSR category! The two studies also highlight the rapid increase in mobile ordering using an app. Over a three-year period, usage rose from 11 percent (2015) to 39 percent (2018). Wawa had a 67 percent mobile app awareness, the high-est of any of its competitors within the sandwich QSR category. This is due to its app features with relatively novel benefits. Consumers can pay in-store with the app through registered gift cards, engage in the Wawa Rewards program, check hours of operation, find direc-tions to the nearest Wawa, check real-time fuel prices, and view nutritional information. However, perhaps the most popular feature of Wawa's mobile app is that it offers the capability of mobile ordering. Consumers on road trips or routine commutes can order and pay for their sandwiches and coffees from their smartphones and have their orders freshly made and waiting for them when they arrive at the store. According to Jim Morey, Wawa's executive vice president:
To use the mobile ordering feature, customers must join the Wawa Rewards loyalty program and load a refill-able gift card to their app for payment. Once a customer has completed the initial setup, he or she is more likely to repurchase within the next 60 days than an in-person customer due to the convenience and ease of acces-sibility. According to Marcus Higgins, VP of sales at EatStreet (an online ordering provider):The use of the mobile app enables Wawa to track customer information, such as demographics, buying behavior, and preferences to provide a better experience through targeted marketing strategies. Providing direct communication with customers is used to develop brand loyalty, offer promotions, and integrate Wawa into con-sumers' routines. For example, the Wawa app can send a notification with a coupon to a customer based on previous order history (e.g., for someone who typically buys a breakfast sandwich around 7:15 a.m., a scheduled reminder with a coupon for a breakfast sandwich will be sent via the app as an incentive to place a mobile order for pickup on the way to work). Research has shown that deals and promotions in digital and mobile order-ing make consumers more than twice as likely to place an order. As shown, Wawa is on the right track to continue to satisfy customers and encourage loyalty. Mobile order-ing is rapidly growing in popularity as an industry trend. A milestone was reached in 2016 when, for the first time, the number of digital orders at restaurants surpassed the number of orders made over the phone. Between 2016 and 2017 alone, digital ordering through mobile apps, text messages, and the Internet at restaurants grew by 18 percent to 1.9 billion food service visits. In 2018, one out of every 10 apps on consumers' mobile phones was a restaurant app and 58 percent of consumers had placed a food order through either a website or a digital app in the previous 12 months. By 2020, mobile ordering is projected to be a $38 billion industry.
Question 1. Chapter 17 discusses how mobile apps are often used in omni-channel shopping. Brainstorm some ideas about how the Wawa app could be used to encourage more in-store purchases, as well as those made on mobile ordering from other places?
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr