Amazon launched in 1994 selling books online and has since expanded into many other product categories. Jeff Bezos originally envisioned Amazon as an "everything store." Key expansions included adding DVDs and CDs in 1998, toys and electronics in 1999, and third-party sellers in 2000. Amazon also launched services like Amazon Prime in 2005, Amazon Air in 2010, and Alexa in 2014. The document discusses Amazon's history, leadership, financials, and business units. It analyzes the Amazon Echo product and examines the target market, segmentation, marketing objectives, and promotional strategies for the Echo aimed at busy mothers.
Separation of Lanthanides/ Lanthanides and Actinides
Amazon Echo
1.
2. History
Early vision of rapid growth and
dominating e-commerce
Bezos’ initial intention was to
be an “everything store”
THE ORIGINAL
GOALS
3. Expansion
2005: Amazon Prime
Officially Launches
The Start
1994: Amazon launches in
Jeff Bezos’ garage
The Next Step
1998: Amazon adds
DVDs and CDs
Originally Bezos want to
name it “Cadabra”
Started with the name
Amazon.com Books
1999: Amazon adds toys
and electronics
2000: Amazon expands
into 3rd party sellers
2010: Amazon Air
Officially Launches
2014: Amazon’s Alexa is
introduced to the world
History (Cont.)
7. Brian Oslavsky
Chief Financial Officer
Jeffrey Blackburn
Vice President of Business Development
Andrew Jassy
Chief Executive Officer of Amazon Web Services
David Zapolsky
Senior Vice President, General Counsel
Werner Vogels
Chief Technology Officer
Neil Lindsay
VIce President of Prime and Chief Marketing OFficer
8.
9. “To be earth's most customer-centric
company; to build a place where people
can come to find and discover anything
they might want to buy online.”
Mission Statement
10. “To leverage technology and the expertise of
our invaluable employees to provide our
customers with the best shopping experience on
the internet.”
Vision
12. BCG Portfolio
?
-Prime Video
-Prime Music
Star
-Echo
-Kindle
Dogs
-Handmade Products
-Amazon Dash
Cash Cow
-AWS (cloud/web service)
-Amazon Prime
+
-
MarketGrowth
Market Share- +
13.
14. What is the Amazon Echo?
PRODUCT
DESCRIPTION
“Alexa, what is the Amazon Echo?. . .”
15. “
Amazon Echo
Amazon Echo Dot
Amazon Echo Spot
“Hands-free speaker you
control with your voice…
play music, ask questions,
send and receive
messages… all you have
to do is ask”
“Hands-free voice
controlled device, with
a small built in speaker”
“Just ask to see the
weather, get news with a
video flash briefing, set
up an alarm, see
lyrics…”
16. Features Benefits
● New Alexa Enabled Devices
○ Microwaves, Wall Clocks, etc.
● Alexa Hunches
○ Smart Home suggestions based off of
certain statements
■ Ex: “Alexa, Good Morning” would
have Alexa activate your coffee
maker
● Whisper Mode
○ Alexa will talk in a quieter and softer
tone
● FreeTime- Kid Friendly Setting
○ Provide child friendly responses
○ Disables the ability to shop & listen to
the news
● Multiple Timers and Alarms
● Smart Home Devices
○ Now work with other companies and
household products
■ Philips (lights), Haiku Home
(Fans), Nest (Thermostats)
● Integrates all home devices through one
system
● Make routines simpler and quicker
● Will allow to still use Alexa with no
disruption at any time
● Will provide comfort to parents who
worry about their children using Alexa
● Allows Alexa to provide hand- free
timers and alarms to make tasks such
as cooking easier
● Integrates Alexa into household features
Amazon Echo has not established itself
in yet
18. Trends in Voice
Humanization: The ability
to hold a conversation
Chatbots: adding voice
to its systems
Hybrid Systems: will receive a human
created response when the voice
assistant cannot answer
Go beyond mobile devices:
integrate voice into all
aspects of life. Ex:
Refrigerators, thermostats,
etc.
Security : Focus on voice
payments and improving
speaker verification and ID
Individualization:
generation customized
user experiences based
on their voice
Voice Notifications:
Voice services will not interact
with the consumers
According to Adobe Analytics, “71% of
owners of smart speakers use voice
assistant at least daily and 44%
multiple times a day”
“76% of smart speaker owners
increased their usage of voice
assistance in the last year.”
19. SWOT
Strengths
● Affordable
● Small & Compact
● Connected to Amazon Services
w/ ease
● Live Updates
Weaknesses
● “Stuck at home”
● Need phone/tablet app to
manage settings
● Must take back-seat on other
devices
Opportunities
● Alexa for Hospitality
● Increase Home Integration
● Increase interaction between
outside services and home
● Allow more exposure into the
work environment
Threats
20. Segmentation
The Amazon Alexa
target market favors
simple interactions,
including skills with
fewer conversation
steps or those that
perform a single, clear
function
Amazon’s micro-level
segmentation targets, as
far as age is concerned,
the ideal user is under 44
years old. The largest
Amazon Echo market
segmentation is 18-29
years old at 24%; 30-44-
year-olds make up 20% of
the user base.
21. Types of Segmentation (Amazon’s Echo/Echo dot)
Type of Segmentation Segmentation Criteria Amazon target customer segment
Geographic Region and Density Region: United States and over 80
countries
Density:
Urban and Rural
Demographic Age, Gender, Occupation Age: 12(kids) and older
Gender: Males and Females
Occupation: Children, Students, Professionals, Employees
Psychographic Social Class Social classes: working class, middle class and
upper class.
Behavioral Benefits sought, Personality, User-Status Benefits sought: Efficient, Convenient
Personality: Easy Going, Friendly, Resourceful
22. Target Market
Echo
Echo Dot
Echo Spot
29 - 34 year old suburban moms
who are active on social media outlets
and continually look for ways to cut
time out of their routines
18 - 24 year old males who are current
college students and recent college
graduates in urban areas from medium -
large schools who are very technologically
connected
55 - 61 year old recent retiree
males from suburban areas who
enjoy simple transitions into the
technology world
25. Ease of Use
Price
For the backbone of the household, the Amazon Echo is the time-saving
device that imbues ease into everyday tasks in a superior manner to that
of other voice assistant devices due to its convenient and familiar
platforms.
26. Brand Story
The satisfaction of an easier and more efficient life is something many strive for. Those
who raise families, go to school, work at companies, or have gone through unfortunate
circumstances that limit his/her movements would benefit greatly from such a life. The key
to the future of efficiency in our lives is through voice. Amazon is leading the charge for
such innovations. Amazon’s Echo built in with Alexa, the voice-activated personal
assistant, allows for seamless integration into our households and daily life which lets us
to not worry about the small things and enjoy life.
27. ● 30 year old mother of two
children
● Uses Echo: has a lot of space
● Uses her Echo to create schedules,
listen to podcasts, do phone calls
and buy necessities for the house
Susan Tod
● 22 year old college student
● Echo Dot perfect for small dorms
or apartments
● Easily integrate Alexa into his
daily life and tries to use Alexa’s
features: alarms, reminders, music,
etc.
Chip
● 60 year old and retired
● Uses Echo Spot: can use all the
the features the echo has
● Can use camera to reach
relatives through video chat
● Perfect to be set by the bed
Personas
28. Product Life Cycle Stage
Growth
Voice is still on the rise and has yet to reach its
peak. There is much more innovation to come
31. Advertising Funnel
Awareness
Consideration
Trial
Purchase
Loyalty / Retention
Advocacy
TV commercials during
prime time shows
Increase special promotions
such as holiday promos
Bring more benefits to those who have
Amazon Prime & Echo. Send
personalized promotions
Utilize influencer to showcase all
new Echo features and products
Increase Online Ads
32. Social Community
Social E-Commerce
Social Publishing
Social Entertainment
Facebook- 28.7 million likes
Often answer as many people as they can
Very responsible
Twitter - Content Marketing & Encourage Prime
Membership
Amazon’s Database of Users
Lifestyle bloggers
Review system
Interactive Comments &
Ratings
Tech / Home Decor Reviewers
Amazon
Pinterest is an extension of Amazon’s
store
Ways to pay- PayPal
Integration with Spotify
Amazon bought Twitch in 2014 (most
popular streaming platform)
Fire TV streaming app
Deal with Sony and Paramount
35. Jessica Shyba
Has a presence on
YouTube:Not strong,
but we can work with
her to grow it
Has a full family: falls
under the busy mom
lifestyle
Has a very reputable
image: TODAY, Business
Insider, etc.
Active on her
blog: Momma
Gone City
Has a very current
style: The use of
the Echo is natural
“Momma” is in her
@ : She will come
up more in mom’s
searches
Instagram:
@mommasgonecity
Twitter:
@mommasgonecity
Blog:
mommasgonecity.com
Facebook:
Momma’s gone city
36. Creative Ad Strategy
Show the Echo as a need in Susan’s life, not a luxury. The
central idea will be that parenting without the Echo is a thing of
past due to how easy and convenient the system is.
37. ACTION
THINKING
FEELING
OPPORTUNITY
AWARENESS FAMILIARITY CONSIDERATION PURCHASE LOYALTY
➔ Follows mom
influencers on
Instagram
➔ Read Facebook
comments
➔ Look at Blog posts for
time management for
moms
➔ Watch Talk Shows*
➔ Coupons*
➔ How can I help get tasks
done sooner?
➔ How much do I value
this?
➔ What makes this brand
different?
➔ Frustrated
➔ Confused
➔ Overwhelmed
➔ Curious
➔ Talk show segments
➔ Starting a vlog channel
for new moms
➔ Sponsor Instagram
influencers
➔ Goes to the store to see the
products and different
options*
➔ Researches the best types
for a busy mom*
➔ Watches more influencer
content on voice assistants*
➔ How will I know which
brand will integrate best
into my lifestyle?
➔ How important are the
difference in the brand?
➔ Are they kid friendly?
➔ Inquisitive
➔ Stressed
➔ Indecisive
➔ Questioning
EXPERIENCE ➔ Has a smartphone,
laptop, kindle
➔ Use SEO to become a top
option in search
➔ HIghlight kid friendly
features in store
advertising
➔ Emphasize the help it has
with everyday tasks
➔ Increased use of the voice
assistant on her phone
➔ Looks for a good deal/
holiday specials*
➔ Opens different ads on
their Facebook*
➔ Looks further into
Amazon’s Product
specifically *
➔ Notices an increase in
productivity
➔ Contributes to the
blog she reads
➔ Comments on the
facebook posts
➔ Explores new types to
involve voice in her
home*
➔ Debates on purchasing
through Amazon or Best
Buy
➔ Takes a last
comparison between
the different brands*
➔ PIcks the specific type
of the Echo Series*
◆ Echo Gen. 2.
➔ Do I want to wait 2- days
for shipping?
➔ Will my Prime
Membership do
anything for me?
➔ What type do I need?
➔ Is this the right choice?
➔ I think it will be cheaper
during the holidays
➔ This ad keeps coming
up on Facebook, I
should look
➔ Wow the FreeTime
feature is great!
➔ I am so happy with this
product
➔ I never realized how
easy it is to use
➔ I wonder if the other
options will help as well
➔ Interested
➔ Increased curiosity
➔ Excited
➔ Determined
➔ Relieved
➔ In control
➔ Satisfied
➔ Eager
➔ Committed
➔ Promote holiday and
themed specials
➔ Create a strong online
presence (Facebook)
➔ Cater to the specific
benefits the Echo has
for moms
➔ Make Prime benefits
clear and grow them
➔ Offer one-day shipping
➔ Make different types
clear
➔ Send personalized
promotions
➔ Offer coupons and
giveaways on blogs
➔ Give exclusive access
to new products
➔ Starts to use voice
assistant on phone daily
➔ Ready to integrate the
Echo into her everyday
life
➔ Fairly dependent on
voice assistant
* = Touch Points
38. Promotional Channel Strategy
The pull promotional strategy will work best with the Amazon
Echo. Susan is perceived to already by a Prime Member, so
pulling her to Amazon.com to purchase the Echo will be simple
and effective.
39. Media Strategy
Help Build Jessica
Shyba’s YouTUbe
presence by
introducing blogs for
technology and
motherhood sponsored
by the Echo
Increase the number of engaging
commercials during Ellen’s
daytime talk show due to her
high number of daily viewers in
the target market
Utilize the hashtag #MomSaver to
engage young mothers into the
community and the benefits
40. ROI Measurement and Optimization
Our desired ROI to optimize our investment
would be 5:1. For every $5,000 spent we
expect 1,000 new customers
Strengths: Affordable compared to competitors is relatively more affordable $65.95 - $117.16 vs $79.99 - $149.76(Google Home)
Small/compact can fit well in any living space at home
Easily access Amazon Prime services such as online shopping, music, audio books
Updates do not come in cycles but as soon as they are created
Weakness: Stuck at home/ wifi + plugged in, Alexa is rarely used outside the home due to mobile devices’ built in personal assistant,
Opportunities: Hospitality: make hotel concierge easier to do and integrate with amenities, Introduce the echo to more countrie (Asia last fall in India)
Threats: We have data/privacy, afraid that Alexa is listening on our conversations. Competition and their own version to smart speakers ( Google is known for its high reputation in tech and has more resources than Amazon)