Peapod Launches Online Research Service

Skokie, IL-based Internet grocer Peapod Inc. launched Consumer Directions, an
online research service designed to provide consumer goods companies with
information about the potentially large Internet grocery “consumer direct”
channel.

Initial subscribers include Colgate-Palmolive Co., Kraft Foods Inc., Nestle
U.S.A. Inc. and Ralston Purina Co.

Consumer Directions is structured as a two-year learning cooperative.
During the term, Peapod will design and execute research projects regarding
the effectiveness of various marketing tactics unique to the Internet
distribution channel.

Research topics will include optimal product assortments, virtual point-of-
sale displays, Web advertising, the use of targeting technology to customize
products and
promotions, and the appropriate mix of online and off-line marketing to build
sales.

Subscribers pay an unspecified fixed fee for their participation in both
cooperative and customized research. Peapod said it is in a unique position to
provide these research services due to its dominant share of the Internet
grocery market, and its Web site
technology that allows it to generate customized stores, promotions and
test environments.

“Recent forecasts of the potential size of the
consumer direct channel are in the tens of billions of dollars,” said George Douaire, Peapod’s vice president and general manager of interactive
marketing services. “We believe we
can offer significant
learning to consumer goods companies that will assist them in effectively
participating in this channel growth.”