Introduction of Strategic Marketing Plan Report Assignment
Get free written samples from subject experts and online assignment writing service in UK.
The online merchant Amazon operates an Amazon Go convenience store chain in the United Kingdom. Customers can buy things without even being checked out by a cashier or via a self-checkout station because the business is cashier-less and hence mostly automated. In Chicago, Seattle, San Francisco, London, and New York City, there are 29 open as well as announced retail locations by 2020. Amazon Go stores were designed and tested by a group of Amazon employees who built a 15,000-square-foot fake market in a leased warehouse in Seattle before exposing their discoveries to Amazon CEO Jeff Bezos in 2015.
Strategic marketing can be defined as the concept of the deployment of the promotional discipline in order to attain the corporal objectives by building as well as administering the supportable cutthroat benefit. Strategic marketing also highlights the utmost-degree thought for example what business sector to target which amenities to provide as well as in what manner to fix the cost as well as advertise them. The main purpose behind conducting this study is to show how Amazon Go uses the concept of strategic marketing and deals with the competition within the UK market with other retail giants like Tesco and Sainsbury. The main purpose of the strategic marketing in the case of Amazon Go in the UK is listed below:
- Attaining the focus of the actual target market
- Encouraging a client to buy the items
- Offering the client with a definite, inferior-threat action which is simple to accept
A diagram of the marketing planning process
Marketing Planning Process
A critical review of at least three marketing theories and how they relate to the marketing planning process
The three marketing theories which that will be applicable in the case of Amazon Go and how it is related to the marketing planning process are described in detail below.
The Marketing Mix: The marketing mix is a type of underpinning model for business chronologically focussed on the item, costing, place as well as advertising. It can also be defined as the set of advertising tools which a company makes use of to attain its advertising goals within the selected target market (Išorait? 2016). The marketing mix is related to a marketing plan because having a proper plan and mix will help the company in identifying its targeted customer and it will also show in what manner the item and amenities might provide an advantage (Thabit 2018)
SWOT Analysis: SWOT analysis can be defined as the tactical designing as well as tactical administration Process deployed to assist the firm in the identification of the power, weak points, prospective as well as the risk associated the business rivalry (Galea 2015). SWOT analysis is identified to be one of the main elements of the marketing plan and is strongly related to each other. With the help of SWOT analysis, a company identifies the important issues which a business might confront in creating a marketing plan (Thabit 2018).
Stakeholder Analysis: Stakeholder analysis can be defined as the technique of evaluating a system as well as prospective transformation to tit as they associate with the pertinent as well as interested entities (Brugha 2000). Stakeholder analysis is related to marketing planning because it assists in ensuring that everybody initiates the venture with an open mission of what winning will look like and in what manner they might make a payment to that winning result (Merrilees 2005).
The significance of branding
The term branding can be defined as the technique of providing meaning to some definite firm, item, or amenities by generating as well as giving shape to a gran in the mind of the customer. The main purpose of branding usually assists in developing client trustworthiness as well as it is promoted by the marketer beneath their own brand. As Amazon Go will have to compete with the other retail giants in the UK like Tesco and Sainsbury as a result using a strong branding will help the company is targeting the exact audiences (Bastos 2012). With the help of using proper branding, Amazon Go will get a chance to brand notoriety in the world's most famous commercial centre. Additionally grounded brand identity will provide Amazon Go with greater deceivability which further assists the company with ruling their specialty in a cutthroat business sector. Using a proper branding approach Amazon will be able to showcase its products and their amenities and will help people understand the use of the invented approach. Overall the branding will also assist in creating a brand idea in the mind of the segmented customer that will help them in understanding the purpose of “Just Walkout Technology” (Maurya 2012).
The concepts of the brand pyramid, brand positioning and brand management
Brand Pyramid: A brand pyramid is a sort of pictorial structure which responds to the basic queries concerning a particular brand along with the business sector positioning. With the help of the brand pyramid Amazon Go will able to position its brand selecting the proper segmentation procedure (Ma 2012).
Brand Pyramid Source: Google
Brand Positioning: Brand positioning is the technique of positioning the selected brand within the mind of the clients. An excess of a tagline or just a catchy logo, brand positioning is a sort of tactics deployed to set the business apart from the rest. Using the concept of brand positioning Amazon Go will be able to properly position its item based on client selection (Unsupported source type (InternetSite) for source Bas21.).
Brand management: Brand management can be defined as the role of advertising which make use of the process to expand the observed worth of the item line or the brand as the time goes. Effectual brand administration will facilitate the Amazon Go’s to set proper costing of the service and finally assist in building trustworthy clients by means of prospective brand relation (Thabit 2018).
How and why these concepts should be integrated into marketing planning
A few of the important reasons the concept of branding might be executed within the marketing planning are discussed in detail below:
- A properly interacted brand situating explanation including the objective client and the brand embodiment, guarantee, and character.
- Directing a brand situating workshop with association top executive if important to create an agreement
- The concept of branding should be implemented into the marketing plan because it will help in creating the long term strategic marketing goals.
- It will additionally help in executing product design with the corporal tactical design
- In addition to this proper branding and marketing plan also assist in proper allocation of finance by identifying proper business sector segments as well as other marketing essentials.
PESTLE analysis Porter’s 5 forces
1. POLITICAL FACTORS
How or to what extent a government gets involved in the economy is one of the political issues. Several measures of political stability in the area can affect Amazon Go's supply chain, which could also affect the supply chain of Amazon Go. Along with that, one possibility can be new taxation strategies that are implied by the government, are going to have an impact on the complete revenue generation structure of the business. As the key business of Amazon Go is to deal in food, it must stick to government-issued health guidelines to avoid any sort of legal issues arising.
Consumers can buy the things they desire with a better economy, rather than focusing on their needs only. However, as the cost of living in the UK has increased, people now prefer to not waste their money on pointless products. The economic concerns for Amazon Go are jobs, wages, as well as consumer sentiment, and according to the world economic scenario, the retail industry is expected to grow to $23 trillion by 2020, which will be advantageous to Amazon Go..
3. SOCIAL FACTORS
The demographic norms, norms, traits, and beliefs of the consumer group in which the business operates are demonstrated by the social element. The majority of the population in the United Kingdom is digitally savvy, which is a major advantage of Amazon Go's automated store. The feedback mechanism is also a social factor, and Amazon Go may collect data from its consumers to identify which things people have bought, leaning over, or completely left out. Letter, this information is used to shape their products in a consumer-friendly method. That's an endless process.
4. TECHNOLOGICAL FACTORS
The aspect is concerned with technological innovation that has the potential to affect industry operations, as well as a thorough examination of current market technological awareness. As Amazon GO introduces a new model of automated store that includes sensors and cutting-edge virtual reality conceptions, there may be issues such as goods not being charged properly, smartphone compatibility, and sensor detection errors. Amazon Go must conduct a thorough examination of the technology that must be implemented to be free of defects and system faults.
5. ENVIRONMENTAL FACTORS
Because of the shortage of raw materials and the need to meet carbon and pollution limits, the environment has become increasingly essential. Amazon Go sells ready-to-eat food, which necessitates the use of block chain technology, that allows makers to input product information in real-time. In terms of meeting all environmental standards for clients, Amazon Go also must consider environmental issues within the stores.
6. LEGAL FACTORS
There are certain regulations governing the business climate in the country, as well as some firm policies. A legal examination was conducted from both perspectives. Without manpower, the store's security may be jeopardized. It also has the potential to entice shoplifters. Customers' security may ultimately pose a threat to Amazon. If the customer's security is jeopardized and Amazon fails to provide security measures, the legal authorities have the authority to shut down a business.
PORTER’S 5 FORCES
1. THE THREAT OF NEW ENTRANTS
Although the thought of a "picks and go" grocery store may look groundbreaking, technical barriers have kept it from becoming generally adopted. To pose a serious threat to Amazon, a competitor must be able to use computer vision, machine learning, and monitoring devices. Even Amazon battled to get everything right, postponing the full distribution of Retail Locations across Seattle.
2. THREAT OF SUBSTITUTE SERVICES
It is, on the other hand, the only grocer that allows consumers to pay the bill at the register. The only other option now available is to go to a traditional grocery store. Shoppers still may love to purchase at existing grocery chains due to nostalgia or unacceptability, notwithstanding Amazon Go's convenience of swift entrance and leave. Amazon Go, like any technological advance, will experience an adoption curve.
3. BARGAINING POWER OF BUYERS
There's no surprise that whenever the stores open, swarms of excited and enthusiastic customers will rush to the venues. Due to the enormous consumer ratio and the scarcity of competing services, buyers' negotiating power is constrained. Furthermore, Amazon Go may charge higher prices because it can give a level of convenience to its customers that no other grocery store can.
4. BARGAINING POWER OF SUPPLIES
As a consequence of the Amazon-Whole Foods merger, Whole Foods' operations have also changed. Amazon has now made it a crime for brand employees to pitch their brands and products in-store. This is especially concerning for small-town companies that rely on such techniques to establish a brand and continue expanding across the country.
5. THE RIVALRY BETWEEN EXISTING FIRMS
Amazon hasn't been hesitant to make strides. Amazon slashed product prices for consumers after the acquisition, pleasing customers but scaring opponents. The market environment for Amazon/Whole Foods and its rivals is fast evolving, and we'll soon understand how the system plays out. Existing companies are present in moderate and high demand.
SWOT analysis and a stakeholder analysis
Amazon Go's biggest asset has always been its radical idea of automatic stores with virtually no checkouts, which is crucial for attracting as many potential consumers. Similarly, Amazon is one of the major e-commerce companies in the world, popular because of its low, high-quality goods. Shoppers will have no trouble trusting Amazon Go because of its well-known reputation. This cashier-less innovation enabled Amazon Go in achieving massive market acceptance..
The downside of Amazon Go could be the massive price of sustaining popular solutions, as interactive digital concepts are used in stores, requiring extensive testing as well as maintenance, which is a costly way. Another fault could be people's lack of understanding of the purchasing process, as well as concerns about device compatibility. It's also possible that managing the availability of fresh, locally produced goods or livestock is a problem. Overall, this could result in a poor customer experience, resulting in a negative brand image..
Amazon Go has been an automated store which created a lot of hype in the market. Bringing the automated customer experience, the store got a huge customer base. A little more innovation to the Amazon Go can attract the leftover customers and it can easily occupy the market of other superstores like Walmart and others. Making the services quick, Amazon Go is going to broaden its domain and get more products in the Go store and achieve a broad customer base..
In recent times, both retailing and artificial intelligence technologies have increased rivalry in the market. The firm could face a threat from the AI-based system's trustworthiness, as they make technological advances centered on virtual reality, thus glitches and faults might arise at first, culminating in client loss. Because of changes in customer buying behaviors, changing demographic trends can also be a danger to Amazon Go. Along with this, the stores can also lead to currency devaluation which is going to be a major issue. Also, it can lead to huge competition domestically as well as internationally, and leaving a single opportunity can cost a million.
1. Internal Stakeholders
Amazon Go's key internal stakeholders include the company's directors, workers, and shareholders. The company's top officials include the President, CEO, Chairperson of the Company, and also senior vice presidents as well as chief executive officers of Amazon web services and overseas customers. It also has a huge fan base. Jeffrey P. Bezos is the founder of the company, President, as well as Chairman of the Board of Directors.
2. External Stakeholders
External stakeholders for Amazon Go comprise customers, online vendors, rivals, impacted councils, as well as the government. Every month, a lot of customers visit the Go stores to take full advantage of the fantastic experience. Amazon Go stands here, because of its customers and the cashier-free retail experience. Clients’ problems are treated with exceptional seriousness by the brand, which sets it apart.
SMART strategic objectives for the organisation
In order to develop a proper tactical plan few of the important work needs to carry out by Amazon Go within the targeted business sector. SMART is a useful tool that will assist the company in getting the works in a streamline to attain the objectives. Each objective might be created as SMART with an intention of bringing it closer to the actuality. It will additionally assist in maintaining the openness amongst the firm. Amazon Go’s SMART goals are listed in detail below.
- Specific: Considering the specific option the most important goals of Amazon go is to implant the high end technology as well as virtual reality notions within the actual world. The main objective behind considering this specific objective is to make the shopper understand the importance of virtual reality as well as to create a different target audience which are also known as Smart Shopper.
- Measurable: The second objective of the SMART strategy is to make the specific objective measurable by identifying the definite criteria. As discussed earlier the definite objective is to introduce the virtual reality in the actual world as a result the progress of the technology can be measured by identifying the number of target audience using the “Just Walk Out Technology” in reality. This particular objective will additionally help the Amazon go attract more customer apart from the smart shopper as this will automatically reduce the time waiting in front of line which most customer don’t like to do. Reducing the wait time will also help in delivering more products at a time.
- Attainable: When any objective is set by any firm its prime motive is to attain the objective while keeping in mind the client satisfaction. In case of Amazon it has been seen that they are implementing a technology in which they will reduce the wait time of the customer at the cash counter for paying the bills. Now objective of “Just Walk Out” objective can be attained by using a cutthroat virtual augment reality within their process. It can also be attained by identifying the number of Smart Shopper using the technology and getting proper benefit of that technology.
- Relevant: The technology used in the Amazon Go can be identified as relevant because it will actually help the people in getting their product with an easy which most of the shoppers want these days.
- Time Bound: The main outcome of using this technology will take some time to give the exact result as apart from the smart shopper other people also will use the technology and they might take some time to understand its importance.
The market segment
How market segments could be used for the organisation
The business sector segmentation can be defined as the tactics of segregating the market within pieces of attainable sets. The main aim of the segmentation is to provide focal point on the sets with the maximum likely to purchase an item. It will be a bit tough for the Amazon Go to provide the focal point on each client devoid of appropriate segmentation that might impact the affectivity of the advertising. Amazon Go items segment comprises the entire of the products needed in day to day living as well as the most important focal point is delivering these items to client with the AI system of buying in addition to business sector segmentation might assist the Amazon Go giving their centre point to focus on the Smart Buyer
Select one or more market segment(s), justifying the decision
Smart Shopper is a sort of business sector segment that shows the set of individual who likes simple buying over costing. They usually look for increasing the marketing worth as well as decreasing the savings on endeavour as well as times. Following the proper study on this particular segment, the group research found out three sorts of smart shoppers which mainly comprises of impulsive, indifferent as well as participated smart buyers. These sorts of smart buyer vary from one another due to the fact that the client traits, generational associates, buying worth as well as assessment carried out following the buying. Smart buyer segment is appropriately suited for Amazon Go marketing process.
Propose and justify a brand positioning for the targeted market segment
Brand positioning can be defined as the strategy that helps in placing the brand in the mind of the consumers. The core asset of Amazon Go is branding which is one of the essential reasons for the success and profitability gained by the company in the competitive business environment. One of the major strengths of the company is the loyalty of the customers towards the products of the brand and its popularity in the competitive business environment which makes it successful for the brand to focus on innovating new products and reliable services (B?l?sescu, 2021). Amazon Go focused on creating unique products and utilising the differentiation strategy that will help the company in finding out several ways to establish and preserve their unique selling proposition in the business environment. This has been beneficial for the organisation in building a sustainable comparative advantage in the global market. There are several other aspects that are considered to be the strength of the organisation which includes brand sustainability and the efficiency shown by the organisation towards the environment (Athauda et al., 2018). The major difference is that the organisation focuses on providing greater value to its customers by combining several aspects which includes instant access to the products and services offered by the company to its customers, extra ordinary convenience and comprehensive selection of the product and services offered by them.
These differences have been beneficial for the organisation in terms of building a competitive advantage in the marketplace. In addition, they also added valuable differences to the product by offering them at a low price range to its consumers that enhance their loyalty and satisfaction towards the brand’s products and services (Gielens and Steenkamp, 2019). One of the major reasons that have offered the brand a positioning advantage in the global market is that they provide both low price and value to their customers. Hence, it can be stated that the brand positioning strategy of Amazon Go was its extraordinary convenience, low price, instant access and comprehensive selection options provided by the company to its customers. Brand ranking is another crucial factor which is important in terms of helping the business grow and in this context Amazon Go is one of the most innovative names across the globe that focuses on providing competitively priced products to its customers (Leng et al., 2019). Amazon Go has promised the customers to offer them with innovative products and latest technology so that it can be implemented within the business organisation to facilitate unique features from their past experiences. It cannot be denied from the past experiences of the company that Amazon has delivered the best products and services to its customers and has always remained on the top of the competitive price range by maintaining its quality and services in the global market. As Amazon Go has introduced the concept of ‘Just Walk out Technology’, these automated stores have been beneficial for the customers in terms of providing them with easier access to shopping which can be done anywhere (Preuss, 2019).
A section concerning the marketing mix
Significance of the marketing mix for Amazon Go
Marketing mix has been beneficial for Amazon Go as it has been able to design an innovative service to the customers who are beyond 50 years old. Having a significant marketing mix plan has helped the organisation in putting all the P’s compatible to one another as it is required that the pricing aspect of the service offered by the company should be compatible with the product placement (Furnelli, 2021). Marketing mix application has been helpful for Amazon Go to create a strong chain of bonds between all the elements of the marketing mix. It has also been beneficial for the organisation in terms of improving the overall operational activities of the company by optimising people and processes. It is a well-known fact that implementing a marketing mix is one of the most excellent strategies and guides if someone is willing to improve their business operations and is focused on doing that analysis. Marketing mix application has also been able to differentiate the services of Amazon Go from its competitors. This turned out to be advantages for the organisation (Jarek and Mazurek, 2019). It has also helped in making the company and its operational activities dynamic in nature and also preparing them when the disaster strikes.
Pricing, promotional and distribution strategy
- Pricing strategy: Pricing strategy is one of the crucial elements that should be focused on by the business in the process of making its marketing plan as it helps in determining the profit in survival of the company in the competitive business environment. The pricing strategy of the company is created on the basis of its competition as it is very important for Amazon Go to consider its competitors in the market (Chen et al., 2016). Therefore the company focused on implementing a competition based pricing strategy. Amazon Go has focused on implementing and imposing high virtual reality technology in its stores which requires the company to regularly maintain its costs. This is one of the reasons that the company should consider setting its pricing strategy in accordance to the overall cost incurred by the organisation and the several resources required by them.
- Promotional strategy: Amazon Go has implemented a powerful promotional strategy that has been beneficial for the organisation in terms of easily adopting it because of a network of customers and popularity in the market. They can adopt best advertisement and communication practices which will help them in introducing and raising awareness for their automated Store along with promoting the company through effective communication (Grewal et al., 2021).
- Distribution strategy: Amazon Go is focused on direct distribution strategy as they are selling their products and services directly to the consumers without having to use any other entities or third parties (Cui et al., 2021). They are often in need of a warehouse where they store their product and follow a significant delivery process to get their products to the customers.
So, it can be concluded from the whole report that with an intention to attain the competitive position with the UK business sector, on-going work is needed on the strategic marketing to create superior items and amenities with maximum class as contrasted to the other rivalries in the UK business sector like Tesco and Sainsbury. The strategic marketing plan recommends that the entire of the prospective tactics as well as the approaches for Amazon Go advertising is working as per the framework selected. The SWOT evaluation conducted to identify he inner strong points as well as the shortcoming in addition to exterior occasion as well as the risks. With performing the overall study that final outcome which has been identified is that within the UK business sector, amazon go will have to go after using all the mentioned tactics as well as need to make deployment of the tool effectually in order to attain the cutthroat benefit in front of its competitors.
Athauda, T., Marin, J.C.L., Lee, J. and Karmakar, N.C., (2018). Robust low-cost passive UHF RFID based smart shopping trolley. IEEE journal of radio frequency identification, 2(3), pp.134-143.
Bastos, W 2012, 'A history of the concept of branding: Practice and theory', Journal of Historical Research in Marketing, vol 4, no. 3, pp. 347-368.
B?l?sescu, M., (2021). INNOVATION IN RETAIL. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 14(2), pp.129-134.
Brugha, RF 2000, 'Stakeholder Analysis: A Review', Health Policy and Planning, vol 15, no. 3, pp. 239-466.
Galea, D 2015, 'SWOT Analysis', University of Malta.
Išorait?, M 2016, 'MARKETING MIX THEORETICAL ASPECTS', International Journal of Research, vol 4, no. 6, pp. 25-37.
Ma, H 2012, 'Brand Pyramid: An Exploratory Study on Brand Culture', Peking University.
Maurya, UK 2012, 'What is a brand? A Perspective on Brand Meaning ', European Journal of Business and Management, vol 4, no. 3.
Merrilees, B 2005, 'Marketing stakeholder analysis: Branding the Brisbane Goodwill Games', European Journal of Marketing, vol 39, no. 9.
Thabit, TH 2018, 'The Evaluation of Marketing Mix Elements: A Case Study', International Journal of Social Sciences and Educational Studies , vol 4, no. 4, pp. 100 - 109.
Leng, J., Feng, Y., Wu, J. and Li, J., (2019), December. Overview of cashier-free stores and a virtual simulator. In Proceedings of the 2019 7th International Conference on Information Technology: IoT and Smart City (pp. 393-399).
Gielens, K. and Steenkamp, J.B.E., (2019). Branding in the era of digital (dis) intermediation. International Journal of Research in Marketing, 36(3), pp.367-384.
Preuss, M., (2019). Amazon and the US food retailing industry in 2018 (Doctoral dissertation).
Furnelli, A., (2021). Amazon Go convenience stores: skip the lines. The CASE Journal.
Jarek, K. and Mazurek, G., (2019). Marketing and Artificial Intelligence. Central European Business Review, 8(2).
Chen, L., Mislove, A. and Wilson, C., (2016), April. An empirical analysis of algorithmic pricing on amazon marketplace. In Proceedings of the 25th international conference on World Wide Web (pp. 1339-1349).
Grewal, D., Gauri, D.K., Roggeveen, A.L. and Sethuraman, R., (2021). Strategizing retailing in the new technology era. Journal of Retailing, 97(1), pp.6-12.
Cui, Y.G., van Esch, P. and Jain, S.P., (2021). Just walk out: The effect of AI-enabled checkouts. European Journal of Marketing.