Cuatro Burros
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Cuatro Burros






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Cuatro Burros Cuatro Burros Presentation Transcript

  • Phillip Duffy, Nathan Fisher, Brett Huey, Hillary Joiner
  • • Amazon has been at the forefront of internet innovation since its conception in 1995. • Now Amazon is venturing into our next frontier: AmazonFresh.
  • • AmazonFresh is a grocery delivery service that allows our customers to conveniently order their groceries online using a computer or a smartphone. • We initially offered our service to the residents of Seattle in a beta-test in 2007. • On June 10, 2013, AmazonFresh expanded to Los Angeles.
  • • This industry has been around since the dot- com bubble, but died when the bubble burst. • AmazonFresh is in the midst of reviving this dead industry. • Imagine our world in the future. It seems inevitable that brick-and-mortar grocery stores will be a thing of the past.
  • • AmazonFresh requires that a customer have internet access. • Based on our research, the highest percentage of the U.S. population with internet access are college graduates between the ages of 25-40. • We also see a market for elderly. People age 55 and older are increasing their connectivity.
  • • AmazonFresh offers products from all areas of a traditional grocery store. • We have 18,000 items for purchase. Including household name brands, as well as farm-to-store specialty products. • We buy our goods directly from manufacturer.
  • • The grocery store is a physical experience. • The grocery store is a social experience. • These experiences are difficult to replicate online.
  • • The last minute shopper • Time constraint for delivery • Competitors using Click & Connect
  • • Razor thin margins on grocery items • Industry giants driving down already low prices • Will users be willing to pay a membership fee? • Can we profit from groceries alone? And how large must orders be? Some shoppers go 2-3 times per week.
  • Industry Competitors Potential Entrants Buyers Substitutes Suppliers
  • Strengths -Experienced decision makers -Kiva Systems robots -Solid Triple Bottom Line Weaknesses -Lacks physical experience -Lacks social experience -Last minute shopper Opportunities -Delivery density -Membership fees -Social media Threats -Slow expansion -Low profit margins -Substitutes
  • We have three different solutions to three different problems in order to push the success of AmazonFresh forward. •AmazonFresh Farmers Market •AmazonFresh Stow and Go •AmazonFresh Neighborhood Association
  • • Partner with American Express to create the AmazonFresh Farmers Market, much like the American Express “Small Business Saturday.” • Addresses problems facing the perception of freshness and physical and social events that are associated with brick-and-mortar stores. • Focus on neighborhood central points that are easy for customers to get to. • Helps sell the membership fee requirement to unsure potential customers.
  • • Pros • Products are already centrally located so moving them to the area is quick and easy. • The locations (Santa Monica Pier and Seattle Waterfront) are popular destinations for customers and potential customers. • Encourages social and physical interaction with neighbors and individuals that are utilizing AmazonFresh creating a • Cons • Foot traffic is not only constant by locals but visitors are present as well. • Identifying AmazonFresh Customers- there must be an expensive way to ensure that they are treated and thanked for being members. • Mother Nature can easily call off the entire event- requiring relicensing to utilize the area and event planning.
  • • Partner with our Kiva Systems Robots to address delivery time issues by building efficient and customer friendly store-front kiosks. • Addresses problems with inconvenient AmazonFresh delivery times • Environmentally friendly and cost conscious.
  • • Pros • Many customers find that AmazonFresh delivery times can be inconvenient for their area. • Orders can be fulfilled the night before and placed at the kiosk for pick up in a convenient neighborhood area. • Cut cost of spending on gas with delivery trucks (emissions) and saves money by not requiring a driver. • Cons • Property Cost: Although we utilize a space the size of a delivery truck, the property cost could be astronomical (areas served). • Last Minute Shopper: This solution still does not address the last minute shopper who ultimately might need a product. • Technology: While store front kiosk in Asia are popular, we must address kinks that may potentially arise in the system.
  • • AmazonFresh Neighborhood Association addresses the $299.00 price tag behind AmazonFresh Services. • Utilizes social media to show the cost benefits of becoming a member of AmazonFresh.
  • • Pros • Named for bringing people together through social media to address the cost of AmazonFresh. • Provides a membership to the premium services provided by AmazonPrime. • Attracts new and potential customers by breaking down the cost to $25.00 a month. • Cons • Unsatisfied customers might not find value in the service that we offer against the cost • Can be seen as trying to cut down a local business with the identification of Amazon.
  • Do you agree? What are your thoughts, suggestions, and questions?