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Amazon Alpha presentation


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Amazon Alpha presentation

  1. 1. Case Study: Amazon
  2. 2. Agenda •  Product Feed (14) •  Media Feed (16) •  Free Amazon Prime (17) •  Marketing Plan (18) •  Advertising Strategy (20) •  Direct Marketing Strategy (23) •  Financials (30) •  Sales Promotion (31) •  Public Relations (32) •  Environmental and Social Program (33) •  Secured Service Program (34) •  Social Media Strategy (35) •  Who Is The Smartphone User? (Slide 3) •  Who Is The Mobile E-commerce user? (4) •  Who Is The Ebook/tablet User? (5) •  Who Is The Amazon User? (6) •  Smartphone Market Share Distribution (7) •  iPhone (8) •  Samsung (9) •  HTC (10) •  Blackberry (11) •  Nokia (12) •  Amazon Alpha (13)
  3. 3. Who Is The Smartphone User? •  Smartphone market share is 91.6% •  Tech savvy •  Age 11-74 •  Income $15,000+ •  Uses: text, email, and photo sharing •  Users 35-44 low brand loyalty
  4. 4. • Mobile sales are non-competitive to desktop computer sales • Majority of purchases are familiar items • 24-35 year old smartphone purchases • 35-44 tablet purchases • Missing opportunity= Big ticket items 50%  of  mobile  phone/tablet   owners  have  placed  a  purchase   on  their  mobile  device Who Is The Mobile E-commerce User?
  5. 5. Who Is The E-reader/Tablet User? •  Increased portability & multi- tasking capabilities •  Tablets ages 17-44 •  E-readers ages 35-44 •  70% for tablet users and 35% of e- readers •  61% of e-reader owners use their devices while in bed
  6. 6. Who Is The Amazon User? •  “Began as Earth’s biggest book store and grew into Earth’s biggest everything store.” •  Target demographic: 25-64 with an income of $50,000+ •  The overall E-commerce user •  Tablet user: •  Kindle •  Kindle Fire •  Kindle Paperwhite
  7. 7. Smartphone Market Share Distribution •  Windows Mobile •  Nokia •  Android •  HTC •  Samsung
  8. 8. iPhone
  9. 9. Samsung
  10. 10. HTC
  11. 11. Blackberry
  12. 12. Nokia
  13. 13. Amazon Alpha Carrier: AT&T Manufacturer: Quanta Operating System: Android Price: $639.99 (without contract) Main Features •  Product Feed •  Free Amazon Prime •  Amazon Media
  14. 14. Product Feed •  We want to emphasize on making the “Amazon Alpha” an Amazon based phone •  By that, we mean, creating an Amazon “news feed” as a secondary homepage. •  Creating the Amazon news feed will prevent people from using their Web browser and downloading the Amazon mobile application. •  The phone will be set up so that it’s already apart of the phone so all the customer will have to do is set up their account info
  15. 15. Product Feed •  The product feed will all be based on our customer’s preference •  For example. If our customer shops for watches, we would have him/her indicate his/her preference •  Brand •  Material •  Case Shape •  Movement •  Band Width •  Color •  Case Diameter & etc. •  By doing this, we’ll be able to have a customized news feed dedicated to our customer •  He/She will have the choice to keep their interests separated (which will be organized within tabs/folders) or combined so that everything is under one news feed •  Based on click-through and past orders, we’ll put their “most likely” to buy products on the top of the news feed
  16. 16. Media Feed •  Like the product feed, we want to create another section of the homepage dedicated to media (movies, music, and ebooks) •  In this section one is able to •  Stream movies •  Set up a music playlist •  Download ebooks
  17. 17. Free Amazon Prime Amazon Prime includes: •  Unlimited FREE Two-Day Shipping with no minimum order size •  FREE Release-Date Delivery on videos, games, and more •  Unlimited instant streaming of thousands of movies and TV shows with Prime Instant Videos •  A Kindle book to borrow for free each month from the Kindle Owners’ Lending Library The Math •  Normally when a customer upgrades to Amazon Prime, they pay a one time $79 fee for one-year of Amazon Prime service. •  We want to add the $79 yearly fee into the customer’s phone bill so that both the consumer and Amazon will benefit from this. •  If we make the $79 fee part of our customer’s bill, it comes out to an additional $6.58 a month. •  The customer wont notice because they aren’t paying an additional fee, instead, this will be part of the phone services fee.
  18. 18. Marketing Plan Objective: •  Cohesive message •  Create awareness •  Smartphone sales Strategy/ Tactics: Intertwine data from multiple marketing strategies: •  General advertising- awareness •  Direct marketing- immediate transaction •  Sales promotion- short-term sales boost •  PR- to influence consumers’ attitudes, opinions and values •  Social media to create buzz and recruit fans
  19. 19. •  Coordinating marketing efforts improves analytics and helps us better understand our customer journey •  Quantify marketing mix- what affect ads have on consumers and the bottom line •  Allocate ad dollars in the most profitable and affective manner •  ‘What-if’ scenarios based on the based on manipulating inputs •  Ability to manipulate marketing efforts in real-time based on ad performance Rationale
  20. 20. Advertising Strategy Objective: Increase awareness of Amazon Alpha & create buzz around the product launch Strategy: Digital campaign with a strong ad presence on all social media channels Tactics: Display ads endorsing our sales promotion and educating viewers about the features and benefits of our new smartphone Rationale: Vast amount of users and extensive reach capabilities are vital to our goal of creating awareness and generating buzz
  21. 21. Display Ad Tactics
  22. 22. Direct Marketing StrategyObjective: Utilize several advertising tactics across multiple marketing channels to derive an immediate response/ transaction from prospective customers *End Goal= Sell 1 million Amazon Alpha smartphones Strategy: Several databases and information sources will be utilized to accomplish our direct marketing goals including but not limited to: •  Amazon’s in-house databases •  Kindle user data •  E-commerce customer data •  AT&T’s in-house database •  Profiles of cell phone users •  Additional external research *By focusing on our in-house resources, we are able to obtain prospects in the most cost efficient manner.
  23. 23. Tactics •  From our in-house database we’re able to extract consumer data that exemplifies characteristics of our target market •  Overlay with AT &T subscribers and the profile of a mobile phone user •  Profile for prospective Amazon Alpha users as well as segment which customers are likely to generate an immediate response to our ads These ads include: •  Acquisition e-mails •  Display ads •  Search ads •  Banner ads
  24. 24. Tactics First use in-house database to identify prospective buyers based on: •  Click-throughs •  Shopping patterns/purchasing behaviors •  Customer profile (demographics, psychographics, geographics) •  RFM data Information will be overlayed with profiles from AT&T’s database to segment prospective customers who are, or will soon be: •  Eligible for a phone update •  Renewing a contract •  Looking to purchase a new phone for various other reasons *Based on this information, ads will be specifically targeted towards those users.
  25. 25. Search Ad Tactics Keyword searches such as ‘smartphones’ that reflect potential purchasing behavior *By correlating our ads with these key word searches, we are able to optimize the marketing impressions made on prospective customers.
  26. 26. Tactics Amazon’s RFM data in conjunction with additional customer management systems will also be utilized to segment avid Amazon customers. Characteristics of these individuals are: •  Dedicated to Amazon •  Purchase from Amazon frequently •  Valuable life-long customers •  Perfect candidates to transition to Amazon’s mobile branch *We will use our advertising efforts to target these individuals and transition them into the new mobile branch of Amazon Alpha.
  27. 27. Tactics Acquisition E-mail
  28. 28. Rationale •  Using data and advanced analytic software to segment prospects provides valid insight to individuals who are potential Amazon Alpha users •  Produce immediate transactions through call-to-actions and promotional incentives •  Optimize our marketing mix •  Ability to manipulate marketing efforts in real-time based on ad performance
  29. 29. Sales In order to sell one million Amazon Alpha smartphones we must send out 100,000,000 “messages” at a 1% conversion rate regardless of the marketing channel. When the ad is seen by a viewer, this is considered an impression. We must make two billion impressions to achieve 100,000,000 click-throughs at a 2% click-through rate; therefore, achieving our goal of selling one million smartphones. This will cost roughly $2 million dollars based on cost per click. The Math: •  Conversion Rate: 1% •  1,000,000 phones sold/1% CR= 100,000,000 messages sent •  Impressions/click-throughs= 2% CTR •  100,000,000 click-throughs/ 1,000,000 phones sold= 2 billion impressions •  Impressions/click-throughs= 2% CTR •  Cost per thousand: 2 billion impressions/1,000 =$2 million
  30. 30. Sales Promotion Objective: Generating short term sales in the span of 3 months Strategy: We want to offer customers a $25 Amazon gift card when he/she purchase the “Amazon Alpha” Tactic: With this specific gift card, we’ll be able to track whether our promotion will be effective or not by a track able number on the card. Rationale: Because “Amazon Alpha” is an based phone, we want to give our potential customers a reason to buy the phone, as well as shop on using their new $25 gift card.
  31. 31. Public Relations Objective: •  Influence a favorable attitude towards the launching of the Amazon Alpha through our environmental, social programs and because of our secured web service. Strategy/ Tactics: Launch “Alpha Series”, a video collection which allows customers to see first hand: •  Testimonials of customers and distributors who use the phone •  Workers and Developers who assisted with the manufacturing of the Alpha •  Social and environmental impact that the Alpha has. •  Touring of Amazon’s secured data facilities Alpha Series will be featured on major social media networks like Facebook, Twitter, and LinkedIn Alpha Series will be featured on major social media networks like Facebook, Twitter, and LinkedIn
  32. 32. •  Amazon Alpha is made from post consumer materials •  Longer battery life to reduce Carbon Dioxide emissions per hour. •  Our manufacturers are monitored by Amazon representatives to ensure that child labor laws are enforced. •  Workers are paid a livable wage •  Our environmental impact is monitored by a third party organization, Carbon Fund. •  We sponsor several charities that fight pollution and issues that plague individuals everyday (water, food, lack of technology amongst the poor) Environmental and Social Program
  33. 33. Secured Service Program •  Our web service delivers on reliability and availability through our cloud computing platform •  Secured data centers •  Our service is secure for both distributors and consumers •  We have and will continue to complete all reports and certifications as required by third party entities
  34. 34. Amazon Alpha Media Platforms Social Media Strategy •  Our goal is to introduce our PR campaign through a cohesive social media strategy across different social media platforms. •  We will express this through our Alpha Series which will be featured on different social media networks to create a buzz: •  Facebook •  Twitter •  LinkedIn
  35. 35. Amazon Alpha Facebook
  36. 36. Amazon Alpha Facebook