Strategic Marketing and Analysis of Amazon Assignment Sample

Strategic Marketing and Analysis of Amazon Go: PESTLE, SWOT, and Marketing Insights

Task 1

The purpose of strategic marketing

Amazon Go's marketing strategy customizes its initiatives to attract proficient in technology, time-conscious consumers whilst fostering an image of a brand synonymous with creativity and effectiveness. This is done by painstakingly analyzing market trends, customer behaviour, and the competition environment (Paul, 2020). First, it encourages public knowledge and embrace of the ground-breaking technology that underlies Amazon Go while highlighting its distinct value proposition and distinction from traditional retail (David and Damien, 2020). In order to maximize consumer engagement, strategic marketing constantly adapts, harmonizing communication, advertisements, and user interfaces to attract and keep a devoted following.

Marketing planning process

Planning procedure for Amazon Go's marketing entails a thorough strategy to capitalize on its revolutionary cashier-less shopping idea.

First, Amazon Go does an in-depth examination of the current scenario, considering its internal capabilities like its technological expertise and substantial customer base as well as external elements like market developments and competition initiatives (Amazon.com, 2023). This study helps in the creation of specific marketing goals that match the company's larger aims to improve customer comfort and transform shopping experiences.

Amazon Go then meticulously divides its intended audience into urban, tech-savvy people wanting economy and comfort (Lopes and Casais, 2022). With the use of customized content and well crafted promotions, this segmentation directs the creation of a specialized marketing plan that emphasizes the special advantages of frictionless shopping. Furthermore, the approach calls for presenting Amazon Go as a revolutionary disruptor and emphasizing its technical advantage and practical benefits over established stores.

For retailers to provide a smooth and engaging shopping experience, the tactical execution phase makes use of an omni-channel tactics, leveraging the internet, mobile applications, and retail aspects.

Critical review of marketing models and theories

Amazon Go, through its revolutionary cashier-less retail idea, intersects with multiple strategies for marketing, models, and theories that are integral to its strategic planning procedure:

• Segmentation, Targeting, and Positioning (STP): Amazon Go presents itself as an innovative disruptor, using its technology to reimaging conventional purchasing, which is highlighted by its marketing approach. With the help of the above methodology, Amazon Go's marketing remains customer-focused and effective at reaching the appropriate people.
• SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): SWOT analysis emphasizes advantages like modern technology and an enduring brand, disadvantages like possible issues with confidentiality, growth prospects like accessing new markets, and risks like rivalry from created shops. This study guides Amazon Go's campaigns, enabling the business to capitalize on its advantages, address its shortcomings, seize possibilities, and foresee future risks (Benzaghta, et. al. 2021).
• Technology Adoption and Diffusion Theory: Technology Adoption and Diffusion Theory emphasizes the value of focusing on tech-savvy urban customers that are more inclined to accept unique purchasing experience in the context of Amazon Go. Recognizing this, Amazon Go's marketing strategy emphasizes the ease of use and efficiency features of the technology in order draw in early adopters and quickens the acceptance curve.

To achieve its objectives, Amazon Go strategically applies these concepts and hypotheses to the marketing planning process:

• Adapted Marketing Strategies: By grasping the acceptance curve for emerging technologies, Amazon Go customizes its marketing initiatives to hasten acceptance and ensure early success.
• Personalized Messaging: STP guides the development of personalized message for Amazon Go that appeals to the selected target segment and raises interaction and rate of conversion.
• Innovation Emphasis: To retain its competitive edge and take advantage of these possibilities, Amazon Go uses the SWOT analysis to steer ongoing innovation and differentiation of its offers (Kalam and Kalam, 2020).
• Competitor Analysis: By analyzing rivals' strategies and positioning, resolving possible risks, and bolstering its distinctive unique selling point, Amazon Go's marketing strategy is strengthened.

Critical discussion of the significance of branding

Amazon Go established itself as an imaginative disruptor in the retail industry due to its branding approach. The cashier-less shopping model defies existing conventions, helping it stand out from other businesses and becoming quickly recognizable. Amazon Go's branding benefits from its solid reputation for dependability and customer focus. Customers link the brand to reliable services, which facilitates a smooth movement of confidence from the underlying brand to this unique idea (Tarsakoo and Charoensukmongkol, 2020).

The branding of Amazon Go inspires emotions of comfort and sophistication. Urban customers who are time-pressed and looking for answers connect with the brand's goals. The branding of Amazon Go paints a vivid picture of the future of shopping. The brand's story emphasizes using modern technology to eliminate checkout lines and revolutionize the way people shop. The Amazon Go's branding emphasises the company's status as an industry pioneer and innovator. By continually pushing the limits of comfort and technology, the brand comes to be associated with innovation. For instance, cross-promoting and cooperation with Amazon Prime improve the value offer for current clients of Amazon, spurring a rise in the use of Amazon Go's offerings.

Demonstrate the concepts of ‘brand pyramid, positioning and management', and how and incorporate these concepts into marketing planning

Efficient marketing planning includes the ideas of "brand positioning," "brand management," and "brand pyramid." Incorporating these ideas into Amazon Go's environment improves its overall approach and guarantees an authoritative and enduring brand presence.

Brand Pyramid: A brand's image and image may be broken down into several levels using the brand pyramid, which is a hierarchical structure. It is composed of four levels such as attributes, benefits, values, and brand personality.

Brand Positioning: Creating a distinctive and appealing location for the company's name in consumer opinion relative to rivals is known as the positioning of the brand.

Brand management: To maintain continuity and strengthen the brand's intended image, brand management include strategic monitoring of the brand's many parts.

Incorporation into Marketing Strategy (Amazon Go):Including these concepts in the marketing planning for Amazon Go guarantees a well-rounded and effective approach.The business pyramid guides messaging and content creation, allowing Amazon Go to successfully express its features, advantages, values, and personality. The management of brands makes ensuring that Amazon Go continually delivers on its brand commitment, retains customer loyalty, and adjusts to shifting market dynamics. Brand positioning aids Amazon Go in building out its own space in the retail landscape, allowing it to stand out and draw in its intended demographic.

Task 2

Performing a PESTLE analysis and reviewing Porter's 5 forces relevant to Amazon Go.

Pestle for Amazon go:

Porter's 5 Forces for Amazon Go:

• New entrants pose a threat: Amazon Go's prospects for rivalry are very unlikely due to the unique and imaginative ways it may find problems. Amazon's new venture needs to do a little study if it wants to fend off the risk of other upstart companies.
• Supplier's bargaining power: This pressure makes it simpler to figure out how much electrical companies have increased prices while demeaning the quality of their goods. This aspect is significant since Amazon Go will be the newest business on the marketplace, while established companies currently have agreements with vendors and are sufficiently solid to establish prices for items with greater profit margins.
• Buyers' bargaining strength: Considering other companies currently sell products for the exact same price. Therefore, it would prove difficult for Amazon Go to please or attract its consumers (Iljin, 2022). As it is a human tendency to buy items from individuals who are offering them for considerably cheaper than others, Amazon Go has to offer consumers the lowest price goods according to the marketplace in order to draw in an extensive market.
• Substitute product threats: Electronic commerce and traditional retailing provide attractive alternatives. The frictionless purchasing procedure provided by Amazon Go stands as different from the traditional online marketplace.
• Competition among enticing rivals: Competitiveness for market share in the UK retail market is intense, with traditional stores and online companies battling. The original concept behind Amazon Go might give these individuals an edge over their competitors, but it's important for knocking out imitation competition.

Examining SWOT analysis and stakeholder analysis of Amazon Go

SWOT analysis of Amazon Go is as follows:

A Stakeholder Analysis of Amazon Go

• Consumer: They are the primary stakeholders and require simple-to-use, perfect purchasing situations and excellent products. Purchases and ongoing relationships are driven by their sense of fulfilment.
• Staff Members: When cashier-less technologies remove the requirement for conventional checking employees, unemployment could be affected. Possibilities for education and professional development become important (Watanabe, et. al, 2021).
• Governments and Administrative Bodies: Responsible for managing compliance with employment, and competitors, safeguarding information and regulations regarding privacy. The decisions they make might affect both growth and operations.
• Providers: Provide products that can be purchased in the Amazon Go stores. Establishing a foundation of confidence is essential to discovering goods of superior quality and guaranteeing that supplies remain plentiful.
• Competitors: The marketplace's trends are influenced by conventional merchants and other-the-moment businesses and present opportunities for constant advancement and uniqueness.
• Investors: Concerned in the economic condition and prospective growth for the retail establishment. It is essential for achieving achievement in regard to profits, earnings, and share of the market (Polacco and Backes, 2018.).
• Press and Popular: The public's perception and judgment of cashier-less technologies and their repercussions for society are influenced by the impression and promotion of businesses.
• The local account Communities: The reception and profitability of the shop is determined by its impact on the local economies, the development of jobs and contributions to the community.

Developing SMART strategic objectives for Amazon Go.

In order to create an approach, Amazon Go requires initiating certain steps in an emerging market. To accomplish a specific objective, it is helpful to break down tasks into smaller steps using the method known as SMART. The above strategy will assist Amazon Go to maintain its objectives structured and accessible. A target can be turned SMART in order to render it a greater probability for it to be achieved. Furthermore, it may assist to keep the on the company's openness. The primary goal of the Amazon Go project is to use "Just Walkout" and simulated buggies to integrate technologically advanced and augmented realities into the real world. Measuring Decreased expenses associated with acquiring customers as a result of increased brand recognition and exposure. Reachable Throughout the span of time, gradually builds up the market share to gain control over an important portion of the UK supermarket business. Build expertise in providing rapid support using cutting-edge technologies.

Objectives:

• To increase market share by 8% at the end of third quarter.
• To enhance sales by 10% within 12 months.
• To build distinct position at competitive marketplace.

Amazon Go intends to grow as an important player in UK convenient market for retailers. The growing number of Amazon's Go facilities across major cities in the United Kingdom is a mentioned objective. Over the two years that follow, increase in the number of outlets is the main objective of Amazon Go. The achievement of this goal is possible through the use of its present-day technological foundation and its customer base (Joseph Aamidor. 2016.). Increasing market share and importance correlate with this development. Advancement will be accomplished throughout two additional years given to the limited in time component.

The objective of setting up an incentive scheme at Amazon's Go store is to promote customer devotion and returning customers. The specific purpose is to increase the number of customer loyalty program sign-ups by 20% throughout the duration of six months. This goal might be accomplished through the use of cashier-less technology to facilitate programming connections. Increasing client interaction is obviously essential and its limited-in-time nature promises quick acceptance and advantages.

Amazon Go's target is to cut packaging that is only used once about 20% throughout every store throughout the following 18-month period, considering sustainability concerns. Evaluations and reporting are going to be used to figure out the reductions (Aamidor. 2016.). This goal can be achieved by collaborating with vendors for alternate options for packaging. Sustainability is important since it is compatible with customer preferences and market movements. Quick adoption and advancement are endorsed by the time-bound character.

Evaluating the market segment

Segmentation of the market is an important technique utilized by Amazon Go to effectively attract and fulfill an array of customer desires and interests. There are mainly four bases of market segmentation such as geographic, demographic, behavioral and psychographic. Based on this, Amazon Go segments its customers on the basis of demographical aspects such as income, price and occupation. To maximize consumer engagement and performance in general, the company Amazon Go may modify its products and advertising campaigns by aimed at specific segments of the market. It may personalize its range of goods, pricing guidelines, and advertising strategies by using segmenting the market in order to comprehend the consumers it serves. Amazon Go may better meet the requirements of its consumers by categorizing the customer base into different divisions, which will improve their levels of happiness and commitment. Urban professionals were recognized as appealing specialists for Amazon Go.

Individuals, who are researching for ease, effectiveness and excellence, when it comes to their purchasing recognized as the main customer segment of Amazon Go. Given their employment promises, professionals in cities usually have little spare time. They seek out simple purchasing possibilities that proceed along with their work schedules. People look for convenient purchasing possibilities that proceed well with their busy lives. Generally comfortable with technological advances, this target demographic embraces developments. Their need for smooth, technologically sophisticated encounters fits completely with Amazon Go's cashier-fewer technologies. Urban workers typically earn higher salaries compared to those in rural regions, which means they tend to be prepared to shell out for premium convenience items such as Amazon Go. For this category, dependability is paramount. Consumers appreciate having the ability to access an extensive range of excellent quality, current, and healthful beverages and food other options, something Amazon Go is capable of providing.

Contemporary concepts are appreciated by urban workers. These tech-savvy customers can be attracted to and captivated with the cashier-less supermarkets offered by Amazon Go (Hassan and Craft, 2012.). Because of the constant buying specifications, developing familiarity with urban residents could result in more trips and greater value to the customer over time. Amazon Go might offer an individualized purchasing experience that meets urban workers' needs for simplicity, technological advancement, effectiveness, and scheduling economy by emphasizing this consumer sector. This group of customers is easily and efficiently addressed with personalized promotional materials highlighting the advantages of monetary reductions, the novelty of cashier-less purchasing goods, and newly released and high-quality products. While focusing on a certain customer base is advantageous, Amazon Go ought to additionally take into consideration the opportunities of additional financial markets, including learners, travellers, and individuals who prioritize health, and change its approach properly. Segmenting the market permits Amazon Go to customize its products and advertising approaches to satisfy the different requirements across different client sections. By concentrating on the metropolitan corporate market, Amazon Go presents itself as the ideal solution for its active schedules and tech-focused demands.

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Proposing and justifying a brand positioning for the targeted market segment

The statement "Amazon Go: improving Municipal Effectiveness with Smooth Purchasing" Urban workers are the intended consumers of Amazon Go and the business's strategy for this demographic concentrates on enhancing simplicity and effectiveness whilst providing a smooth purchasing journey. The phrase "seamless shopping" emphasizes how Amazon Go's cashier-less technology effortlessly fits with the proficiency in technology lifestyles that characterize urban workers (Coronado, et.al, 2021). The store's imaginative use of AI and sensing for eliminating registration problems is emphasized in the business's positioning, and this falls exactly compatible with this segment's excitement for innovation.

Workers in urban areas prefer efficiency and are willing to spend on extra products that can be squeezed into their hectic schedules. According to the business's positioning as well as the Amazon Go service offers a high-end buying experience where consumers can immediately gain items of superior quality while conserving their precious time. The brand's positioning additionally brings attention to Amazon Go's collection of strict-quality, organic food and beverages, that meet the demands of urban professionals for alternatives that conform to strict requirements for wellness. In other words, Amazon can develop distinct image in the mind of customers by highlighting aspects related to price, quality and availability of varied products. This falls in line with the way they shop for goods of superior quality, making sure that their need for flexibility does not end up resulting in an improvement in the standards of the goods consumers buy.

The brand's positioning additionally draws focus on Amazon Go's collection of strong-quality, organic food and beverages, that satisfy the requirements made by urban professionals for alternatives that conform to stringent requirements for wellness. This falls compatible with the way they shop for goods of superior quality, making sure that their need for convenience does not end up resulting in an improvement in the level of quality of the products that consumers buy. The advertising strategy tries to build commitment among these age groups by delivering toward the particular requirements encountered by urban professionals. It indicates that Amazon Go is mindful of and reactive to the new innovations. Modern workers use technology to make their daily tasks easier. The marketing strategy of Amazon Go, for example, makes advantage of all this by emphasizing the effortless incorporation of the latest technologies.

The expression "seamless shopping" describes the cashier-less approach employed by Amazon Go, which blends properly into the knowledge about technology lifestyle among urban people. The location of the company highlights the higher level of convenience that Amazon Go provides. Urban professionals have confidence that their comfort is of the highest importance, and that's in keeping with the willingness to spend cash on products that assist with their busy schedules. The position promotes commitment to the business community by fulfilling certain requirements. Urban job seekers are reassured that Amazon Go understands their requirements, promoting repeat business and bringing together Amazon Go as their first choice for quick and exceptional buying.

Urban specialists favour creative thinking. The headline, "Amazon Go: improving Urbanized Productivity with Smooth Buying" successfully conveys the positive aspects of Amazon Go to urban residents. By emphasizing efficacy, smooth technological advances, convenience, superior craftsmanship, creativity, and customer orientation, this approach makes Amazon Go an essential element of the everyday routines among urban employees.

Analyzing the significance of marketing mix

In the context of Amazon Go, the marketing mix is highly significant which helps in aligning long or short term goals with organizational sales & profitability. By drafting and undertaking a competent marketing mix firm can execute its strategies in right direction. In other words, with the help of a suitable marketing mix organization can persuade and attract customers about the products or services offered by it.

"Putting the right item in the correct spot at the proper moment" is a description of the mix that makes up marketing. Internally analysis of the company is done using the 4Ps modules. That comes in 4 different sizes. Internal elements of the item, including the product, pricing, location, and marketing, are assessed by the module in question. Pricing, promotion, and distribution plan.

• Products: Amazon Go will offer an assortment of products, including baby care and other collection under all categories for both men and women. Along with this, equipment, food stores, pharmaceuticals, and other items. Amazon will definitely be able to satisfy every one of its consumers' requirements using its inventory of products.
• Pricing strategy: The "Ready-to-Eat Dishes" category's pricing approach at Amazon's Go location is influenced by perceptions of value and its competitive position. The cost is going to be established at an expensive price because of the urbanized expert segment's tendency to shell out for comfort. It's going to continue to contend against other quick-service food options in towns.
• Distribution strategy: For better exposure as well as simple availability, position the ready-to-eat food department next to the store's doorway. That responds to urban employees' demand for expediency. Collaborate alongside food delivery companies to increase the selection of cooked meals besides supermarkets and benefit from the growing popularity of food delivery (Goncharova, 2019). To create an impression of immediacy and encourage repeated appointments, add revolving, limited-time offerings to the menu.
• Promotion Strategy: Use the social networking networks' broad reach and customized online advertisements to establish relationships with professionals in cities wherever they tend to be engaged. As customers approach the store, digital monitors and visually appealing displays at Amazon Go locations are going to highlight the range, freshness and simplicity of meals that are prepared beforehand. The incentive scheme for Amazon Go participants will be connected with the advertising approach. Participants of the loyalty scheme are going to get exclusive offers and free gifts, motivating them to invest in more purchases and develop loyalty to the brand. Collaborate together with local food preparation bloggers to provide delivery services in order to broaden the popularity associated with advertising efforts. These partnerships promote the evolving online behaviors of urban professionals whilst additionally boosting visibility for businesses.

The advertising strategy is of greatest importance in Amazon Go's quest for UK success in the marketplace. Amazon Go boosts its popularity to urban consumers looking for effortless, exceptional prepared food by means of a price point that strikes equilibrium between outstanding value and competitive pricing (Ramadan, Farah and Essrawi, 2021). Combining each of these variables strengthens Amazon Go's worth proposition, generates a distinctive presence in the marketplace, and generates an appealing offering that is well suited to the expectations of the desired customer.

References

Books and Journals

• Benzaghta, M.A., Elwalda, A., Mousa, M.M., Erkan, I. and Rahman, M., 2021. SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), pp.55-73.
• Coronado-Hernandez, Jairo R., Andrés F. Calderón-Ochoa, Ivan Portnoy, and Jorge Morales-Mercado. "Comparison between Amazon go stores and traditional retails based on queueing theory." In Applied Computer Sciences in Engineering: 8th Workshop on Engineering Applications, WEA 2021, Medellín, Colombia, October 6–8, 2021, Proceedings 8, pp. 347-361. Springer International Publishing, 2021.
• David, A.A. and Damien, M., 2020. Strategic market management: global perspectives. Wiley.
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• Rodrigues, M.M.M.L.A., 2020. Competitive advantage in the age of digital platforms: the case of Amazon. com (Doctoral dissertation).
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• Tarsakoo, P. and Charoensukmongkol, P., 2020. Dimensions of social media marketing capabilities and their contribution to business performance of firms in Thailand. Journal of Asia Business Studies, 14(4), pp.441-461.
• Ting, D.H., Abbasi, A.Z. and Ahmed, S., 2021. Examining the mediating role of social interactivity between customer engagement and brand loyalty. Asia Pacific Journal of Marketing and Logistics, 33(5), pp.1139-1158.
• Watanabe, C., Akhtar, W., Tou, Y. and Neittaanmäki, P., 2021. Amazon's initiative transforming a non-contact society-Digital disruptionleads the way to stakeholder capitalization. Technology in Society. 65.p.101596
• Works, H.I. and Orders, M., Next PESTLE Analysis| Next Plc

Online

• Amazon.com. 2023. Amazon Go is a new kind of corner store. Online. Available through. :https://www.amazon.com/b?ie=UTF8&node=16008589011.
• Aamidor J. 2016. What Amazon Go teaches us about opportunities in smart buildings. Online. Accessed from <https://medium.com/@jaamidor/what-amazon-go-teaches-us-about-opportunities-in-smart-buildings-c7c48b704385> Accessed on 10/08/2023.