Strategic Marketing Analysis and Plan for Introducing Amazon Go to the UK Market

Unit Aims

The aim of this unit is to develop learners understanding of the concepts, methods and
technical aspects of strategic marketing and the challenges associated with marketing in
todays business environment, including how a strategy combines product development,
promotion, distribution, pricing, relationship management and other elements.

Scenario

Amazon Go supermarkets in the UK. (Data from 2016)
The cashier-less supermarkets use technology to allow customers to pick up items and walk
out with them, instead, charging their Amazon account so they don't have to stand in a
checkout queue.

According to The Sunday Times, the retailer is looking for a significant number of
sites sized between 4,000 square feet and 5,000 square feet across the UK.
Amazon initially launched the concept back in 2016, allowing Amazon staff to trial
the new technology. Since then, it has opened five stores in the US across Seattle and
Chicago.

Customers download an Amazon Go app before entering the store. They have to use the
app to enter the store, which registers their Amazon account, and then they can put their
phone away and start shopping.

Amazons Just Walk Out Technology uses computer vision, sensor fusion and deep
learning to detect when products are taken off a shelf, or later returned.

The technology keeps track of all the items in a virtual cart so there is no scanning involved.
Once customers are done shopping, they can leave the store and Amazon will charge your
account. Amazon now has five Amazon Go locations across the US.

There is a difference between having the no checkout stores strictly for Amazon
customers and allowing the general public in to try them out. In 2017, the Wall
Street Journal reported that the technology faced problems when there were more than 20
people in the store, something Amazon has been working to correct and, as a result, has
delayed the expected roll out of further locations.

At the moment, its unlikely that Amazon Go will arrive to compete with your local
Tesco or Sainsburys. The stores stock ready-to-eat items for breakfast, lunch and dinner,
with some grocery essential ranges too, however, stock varies depending on which store
you are in.

But, when it does arrive in the UK, it will no doubt be celebrated by busy Londoners. The
idea of being able to pick up some lunch and walk out of the door without queueing is a
dreamy one, we admit.

Task 1 of 1 Business Presentation and Briefing Report (AC 1.1, 1.2. 1.3. 4.3,
5.1, 5.2, 5.3)

Instructions:

Your local small business association has read about Amazon Go and is concerned
about the potential competition. They wish to offer strategic marketing advice to local
businesses, have asked you to prepare a presentation in which you should analyse and
evaluate key marketing concepts as well as the marketing planning process by using
Amazon Go as an example.

Prepare a presentation with speaker notes and a briefing report in which you should include:

An introduction, evaluating the purpose of strategic marketing
A diagram of the marketing planning process.

A critical review of at least three marketing concepts/models/theories and how they
relate to the marketing planning process.
A critical discussion of the significance of branding using Amazon as an example.
Illustrate the concepts of brand pyramid, brand positioning and brand
management, and how and why these concepts should be integrated into marketing
planning.

Task 2 of 2 Marketing Plan (AC2.1, 2.2, 2.3, 3.1, 3.2, 3.3, 4.1 & 4.2)

Instructions:

Co-incidentally, a representative of Amazon attended your business association presentation
and was impressed.

The Amazon manager responsible for the introduction of Amazon Go to the UK has asked
you to prepare a strategic marketing plan addressing the following:

• A section in which you perform a PESTLE analysis and review Porters 5 forces relevant
  to your organisation.
• A section with a SWOT analysis and a stakeholder analysis of your organisation
• A section in which you should develop SMART strategic objectives for the organisation
  • A section concerning the market segment. This section should
  • Discuss how market segments could be used for the organisation
• Select one or more market segment(s), justifying your decision.
• Propose and justify a brand positioning for the targeted market segment
  • A section concerning the marketing mix. This section should:
  • analyse the significance of the marketing mix for the organisation
  • contain a pricing, promotional and distribution strategy for one of its product ranges
    or categories.

Submission and Delivery:
1x Marketing Plan (3000 words)

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