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Amazon Echo
- 2. History Early vision ofrapid growth and dominating e-commerce Bezos’ initial intention was to be an “everything store” THE ORIGINAL GOALS
- 3. Expansion 2005: Amazon Prime OfficiallyLaunches 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.)
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- 5. Jamie Gorelick Wilmer CutlerPickering and Dorr, LLP Tim Alberg Madrona Venture Group, LLC Daniele Huttenlocher Dean, Cornell Tech Judith McGrath Astronauts Wanted (Multimedia Joint Venture) Jonathan Rubinstein Bridgewater Associates, LP Thomas Ryder Starwood Hotels, Virgin Mobile, Reader’s Digest Patricia Stonesifer Martha’s Table Wendell Weeks Corning Incorporated
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- 7. Brian Oslavsky Chief FinancialOfficer 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
- 9. “To be earth'smost 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 technologyand the expertise of our invaluable employees to provide our customers with the best shopping experience on the internet.” Vision
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- 12. BCG Portfolio ? -Prime Video -PrimeMusic Star -Echo -Kindle Dogs -Handmade Products -Amazon Dash Cash Cow -AWS (cloud/web service) -Amazon Prime + - MarketGrowth Market Share- +
- 14. What is theAmazon Echo? PRODUCT DESCRIPTION “Alexa, what is the Amazon Echo?. . .”
- 15. “ Amazon Echo Amazon EchoDot 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 ● NewAlexa 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
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- 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 targetmarket 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 EchoSpot 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
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- 24. Marketing Objectives Qualitative Position Amazon Echoas the most convenient brand for the “Susan” target Market Quantitative Increase sales from this particular target market by 35% by next year
- 25. Ease of Use Price Forthe 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 satisfactionof 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 yearold 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 CycleStage Growth Voice is still on the rise and has yet to reach its peak. There is much more innovation to come
- 29. Early Majority Susan Tod EarlyAdopter Chip Early Majority Adoption Curve
- 30. Target Market Focusedon Susan30 year old mother of two children
- 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 SocialPublishing 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
- 33. Amazon Echo: Susan Influencer:Jessica Shyba
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- 35. Jessica Shyba Has apresence 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 Showthe 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 CONSIDERATIONPURCHASE 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 Thepull 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 BuildJessica 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 andOptimization Our desired ROI to optimize our investment would be 5:1. For every $5,000 spent we expect 1,000 new customers
Editor's Notes
- #3 https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4
- #13 Whats the cash cow, etc
- #20 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)