Peapod is a grocery company that sells its products over the internet. Customers make their orders on-line and the orders are delivered to their doorsteps. It was founded in 1989 by two brothers, Andrew and Thomas Parkinson. The goal behind the establishment of this company was to make shopping easy for all types of customers. In July 1990, Peapod began testing its market by allowing customers in Evanston to place orders on-line. It also provided software to the customers and sold modems to them in order to make ordering easy. By that time, the two brothers did not have a vehicle for the company and deliveries were made using their own cars. Family members and friends came in to help them in the picking, packing, and delivery of the products to the customers. By 1998, demand for Peapod’s products had increased substantially and the company expanded to other markets such as Chicago and also opened its own website. Its mission is to provide friendly and quality services to all its customers as it strives to exceed customers’ expectations (Peapod-Online Grocery Shopping, 2005). Peapod’s largest market is in Chicago area. It has managed to expand its services to other states including but not limited to New Jersey, Boston, New York, and Baltimore. To make marketing easy, Peapod has partnered with big companies in the food industry in the respective state of its operation. For instance, in Chicago, it has formed a partnership with Jewel Food Stores and Randall’s in Texas. Peapod is the leading e-retailer in the grocery industry and this has been made possible by the partnerships it formed with Royal Ahold, an international food company based in Netherlands (Peapod, 2010). Today, 75% of Peapod’s services are targeted to the single parents and families with young children (Peapod-Online Grocery Shopping 2005). These are the people who are believed to have less time to go to the grocery stores and would prefer shopping from their houses. However, this is a very narrow market considering the growth in the online market. In addition, it has only been able to expand on specific geographical areas especially along the East coast. I believe Peapod target market will change with time when it starts to put other things into consideration. Apart from time issues, other factors that can be considered in designing the target market are physical constraints such as inability of the elderly to jump from one vehicle to the other while going to the grocery stores. Just like other on-line groceries, Peapod has been experiencing the problem of customers questioning the quality and freshness of its products. To curb this problem, the company has introduced a delivery system called Stay Fresh that keeps all products at optimal temperatures before they are delivered to customers. With this system, customers are able to receive their products when they are still fresh and this has led to an increase in the company’s sales. Another problem that is experienced by the company is that many customers are not quick to make orders for products they cannot see. Although the website may contain much information on the nutritional value of the products, the pictures displayed on the website do not offer a good basis for customers to make comparisons (Bretagne, 2010). Other people argue that purchasing over the