FINAL Amazon Brand Audit Keynote

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Information about FINAL Amazon Brand Audit Keynote

Published on April 24, 2014

Author: elliot_friar


Elliot Friar, Stephanie Gulmantovicz, Alara Icten and Amanda Horton Brand Audit

Amazon Quickly Expands 1994–95 • Founder Jeff Bezos identified and fulfilled need for online bookstore • Company name strategically selected • Company went public 1998 2000 • Expanded product line beyond books • Iconic arrow logo debuted • Added other retailers • Started selling used products • Amazon Prime launches • AmazonFresh • Launch of Amazon “Kindle” • Launch of Amazon “Kindle Fire” tablet • Amazon Instant Video • Drone delivery announcement • Amazon Original programming 2005–07 2010 2011- Present

Variety And Quality At A Low Price Positioning Statement: For people who use the internet who want a wide selection of quality, affordable items, Amazon is an online marketplace that provides reasonably priced items. Unlike Walmart that doesn’t focus on customer satisfaction, Amazon offers affordable pricing while still focusing on customer centric values. Target Audience: All internet users

Earth’s Most Customer-Centric Company “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”

Amazon On The Rise Most Trusted US Corporation (American Customer Satisfaction Index, 2009 and 2011) (2013 Harris Poll RQ Study) of American Consumers regard Amazon as a threat in privacy terms (Ad Age) 52 Fulfillment centers in North America offer high Availability 7% BROAD selection of products at the lowest prices on easy-to- use website interface. #1 In Customer Satisfaction #1

Brand Equity Increases • Brand equity has increased over the past five years, shown in goodwill. Amazon has built its brand equity on excellent customer service and a wide range of quality items. 0 750000 1500000 2250000 3000000 2010 2011 2012 2013 Goodwill (Yahoo Finance) (Yahoo! Finance)

Rising Profit, Increasing Operating Expenses • Amazon Inc.’s Gross Profit has almost tripled from 2010–2013. • Amazon’s expenses have risen leading to a decreasing trend of its overall net income. • Amazon Inc. – 331.80 (Yahoo! Finance)

Amazon Leads Competitors Competitors Price Selection Customer Centric Quality X X X X X X X X X X

-12.5 0 12.5 25 37.5 50 Dominating The Online Shopping Market • Amazon is the leading online retailer in a $225.5 billion market (US) • Amazon is growing faster than the other top online retailers. • Increase from $24.51B (2009) to $74.45B (2013) in worldwide revenue. (Mintel and MarketWatch) 0 7.5 15 22.5 30 STAPLES AMAZON APPLE WALMART DELLSTAPLES AMAZON APPLE WALMART DELL 2011 US Sales of Top 5 Online Retailers % Change in Sales from 2010–2011 for Top 5 Online Retailers

Amazon’s Six Pillars of Marketing It freely offers products and services. It uses a customer-friendly interface. 1 It scales easily from small to large. 2 3 (MarketingPlan.Net)

Amazon’s Six Pillars of Marketing It exploits its affiliate’s products and resources. It uses existing communication systems. 4 It utilizes universal behaviors and mentalities. 5 6 (MarketingPlan.Net)

Amazon Relies On Online Advertising • Google Pay-Per-Click advertising • Major reductions in offline advertising. 1999: $80 million 2009: $9.4 million • $2 Billion in advertising spending in 2013. • Amazon hires an offline advertising agency for its products (Kindle) while it deals with online advertising internally.

An Amazon America Amazon also has distribution centers in UK, Germany, India, Japan, China, Czech Republic, Italy, Poland and France.

Expanding Distribution • Amazon’s almost $13.9 billion spending binge on fulfillment expenses – including 50 new facilities – since 2010. • Products can be ordered online and then be delivered to a customer’s door or a nearby store within hours. • Amazon Prime and Student programs. • Manufacturer – Retailer Relationship Other Suppliers

Amazon Extends and Innovates From A-Z

The Few Challenges • Confusing slogan • Growth risks brand identity • Corporate Life

The Amazonians Attack • “Escalation Emails” – How Jeff Bezos deals with complaints. • Rigorous promotion processes. • Corrupt corporate governance.

The Counterattack • Diversify and spread out shares throughout the board. • Pay To Quit • Less stressful environment to work.

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