Amazon's Drone Delivery System: A Revolutionary Change in E-commerce Industry
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This article discusses Amazon's drone delivery system, its objectives, target audience, and platform and content. The article highlights the advantages of social media marketing and evaluates the reachability and engagement of the content on different platforms.
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Digital Media Entrepreneur1|P a g e ASSESSMENT ONE NAME: STUDENT NUMBER: PART 1: PROJECT PROPOSAL INTRODUCTION Globalisation is the integration of people, business entities and governments of different bodies. Due to globalisation, various industries, sectors and companies have grown up. Globalisation has widened the boundaries for business organizations in order to expand their functionalities from domestic to international level. With respect to this, internet is another platform which has brought drastic changes in the functionalities of business. Along with the businesses, internet has also set up its effective place in the individual’s lives and today on an average, an individual uses internet for approximately 5 hours in a day. With the increasing number of internet users, opportunities for e-commerce companies is also increasing and in relation to this, some of the giant players of this industry like Amazon, Alibaba, eBay, etc. are offering millions of products and services over internet. Introduction of e-commerce companies have been a drastic change in the whole business industry because large part of the customer segments have preferred online shopping over offline shopping (Hong, Kuby & Murray, 2017). Amazon which is one of the largest e-commerce companies has invented various new and innovative services for satisfying its target audience's demands and wants. Amazon sells millions of products over its website and to retain customers' interest as well as to build customers' engagement with the company, they always seek for innovative and creative measures. Recently, Amazon's CEO has announced the introduction of "drone delivery" system in order to speed up their delivery services. With the help of drone delivery, customers will be able to get their orders within 30 minutes. Apart from this, the organization is already offering one day, two-day delivery options which could be selected by the customers while placing their orders as per their requirements (Amazon Inc., 2018). Introduction of drone delivery will be another revolutionary change in the e-commerce industry and with the help of this innovative idea, the organization would be able to attract various other customer segments through which organizational performance would be enhanced in terms of increasing revenues, profitability as well as huge customer base. Drone
Digital Media Entrepreneur2|P a g e delivery will not only bring revolutionary change in the organizational functionalities, it will also bring changes to the whole e-commerce industry because other companies are still practicing on common delivery schedules. The new invention will help Amazon to acquire a large part of the target market through which its market share in the e-commerce industry will be enhanced. Along with this, organization would easily be able to approach to those market segments in which company is not yet present. Thus, brand value for the organization will be enhanced which will ultimately help the organization to acquire the market share of Alibaba Group which stands on the leading position in the worldwide e-commerce industry (Amazon Inc., 2018). BACKGROUND INFORMATION Amazon Inc. is a behemoth player of e-commerce industry and a major reason behind company's success and growth is its CEO's innovative thinking and creative leadership style. The company is selling millions of products over its websites and company has separate retail websites for United States, United Kingdom, France, Ireland, Italy, Germany, Netherlands, Spain, India, China, Japan, Mexico, etc. Apart from this, the organization recently launched Dutch, Polish and Turkish languages have also been introduced. The organization also offers international shopping in order to satisfy consumer's wants and demands. With regards to this, currently, the organization is offering international shopping only for certain products whereas, after the introduction of drone delivery program, various other products will also be offered under international shopping (Silver, 2016). Jeff Bezos, CEO of Amazon has adopted three elements for organizational success: •Consistent learning; •Sustained growth; and •Overall development. With regards to these elements, the organization is constantly focusing on introduction of new products as well as services in order to match up with the business trends, compete with the offline business industry as well as to match up with the dynamic consumer's demands and wants. In relation to this, the organization always tries to bring new and unique products and services in order to grab the attention of new customer segments as well as to retain existing as well as potential customer segments. Amongst their revolutionary innovations, organization has introduced various options in their delivery program in order to deliver the
Digital Media Entrepreneur3|P a g e products and services to the consumers on a quick basis. The company introduced Amazon Prime services with the motive of introducing fast delivery options. Amazon is currently offering one day, two day and normal delivery options and for these fast delivery options, consumers are required to pay certain extra amount whereas subscribers of Amazon Prime get these fast delivery options at no cost as they are required to pay a fixed amount to avail the services (Hickey, 2013). Initially, Jeff Bezos revealed plans for Amazon Prime Air in an interview on 1stDecember 2013. The primary objective of this delivery system is to deliver the package to the customer within 30-45 minutes from the time of placing the order. After taking permissions from various authorities, in July 2016. Organization announced the partnership with the UK Civil Aviation Authority to test some of the technologies which will fit best with the Amazon Prime Air in the coming future (Amazon Inc., 2018). In relation with improving their delivery services, organization is developing a future delivery system which is safe, environmentally sound, and enhances the services organization is already providing to millions of its consumers. Amazon is investing the huge part of their earnings into their research and development laboratories for successful launching of their new innovation i.e. Amazon Prime Air. The primary focus of the organization is to introducing Amazon Prime Air as a next-generation delivery system. In this regard, the organization is working to convert their vision into reality. Although this innovation is a bit unique as well as difficult too organizational vision is to launch the Prime Air services and as today, vehicles running on the road seem to be normal, in future, Amazon's drones in the air will also look normal. This service is currently under processing and it is going through beta testing in the United States, Austria, United Kingdom, Israel, and France. In the initial stage, Amazon Prime Air will deliver only those packages which weigh up to 5 pounds at a minimum distance of 10 miles or more and Amazon's 90% products are of this weight only (Silver, 2016). OBJECTIVES On December 1, 2013, Amazon's CEO Jeff Bezos revealed plans for the introduction of Amazon Prime Air services in an interview. Amazon Prime Air was planned to use a multirotor Miniature Unmanned Air Vehicle (Miniature UAV) technology in order to autonomously fly individual packages to customers within 30 minutes of ordering. In order to
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Digital Media Entrepreneur4|P a g e claim the air delivery, package's total weight must be less than 5 pounds and should be of a decent size which could easily be shipped in a box. Apart from this, drones will work for minimum 10 miles radius from the Amazon fulfillment centers. In 2014, Amazon expanded its lobbying practices as it prepared to lobby the Federal Aviation Administration in order to approve its drone delivery program. One of the primary objectives in relation to prime air services are: Instant delivery within the radius of 10 miles within 30 minutes from the time of placing an order. Prime Air seems to use octocopter aerial drones to deliver packages up to 5 pounds. Enhancing customer satisfaction Enhancing customer base Approaching the large customer segments (Amazon Inc., 2018). With the help of Amazon Prime Air services, the organization would be able to enhance its customer base as the number of people who prefer to offline shopping just because they can get whatever they want anytime. In order to attain organizational goals and objectives, the organization continuously invents new products and services. However, Prime Air project is in its initial stages and before it could be introduced in the market, it is facing several regulatory issues. Amazon CEO's vision is to introduce a revolutionary change in the delivery system and with the help of drone delivery system; e-commerce industry will be able to acquire the market share of offline business as well. In relevance with this, the introduction of drone delivery system will help the customers to get their orders within a short time period along with the services of Amazon (Lection, et. al., 2018). TARGET AUDIENCE When Jeff Bezos revealed the plan for introducing drone delivery system in the near future for the objective of speedup their delivery system as well as to satisfy their target customer's segments, people did not believe because it is a part of disruptive innovation. But Jeff's vision is crystal clear and their primary objective behind the introduction of any new product or service is customer satisfaction and this is the reason, the organization is known as the only customer-centric company across the globe. Although, a project of drone delivery is still in progress and it is being tested in company’s research and development laboratories so that adequate and optimum utilisation could be made from the available resources (Shavarani, et.
Digital Media Entrepreneur5|P a g e al., 2018). With regards to their new project of drone delivery, the target audience for the organization will mainly be those customer segments who prefer offline shopping over online shopping as in offline shopping; customers could get the required products from the stores directly after checking the quality of product and after checking other features. In relation to this, organization has introduced a drone delivery system so that these types of customer segments could be targeted as a drone delivery system will be sufficient enough to deliver the products within 30 minutes. Apart from this, the organization would also target their existing and potential customers in order to retain their interest in the organization. As organization is offering millions of products over their website and in relation to this, organization has adopted numerous advertising and promotional activities. With regards to this, Amazon Prime Air services will help the organization to target approximately all types of customers which will ultimately help the organization to gain competitive advantage (Kohli, Mastercard International Inc, 2017). PLATFORM AND CONTENT Website
Digital Media Entrepreneur6|P a g e An organization adopts various mediums to promote its products and services in the market. Promotional and advertisement campaigns’ primary objective is to spread awareness amongst the target audience regarding the new products and services. On December 1st, 2013, Jeff Bezos, CEO of Amazon Inc. revealed the plans for the introduction of drones into their delivery programs in an interview which held long for approximately 60 minutes. In December 2016, Curtis Silver posted an article on "Amazon Prime Air Delivery Drones Fly into Our Hearts With a package of 5 pounds or less". This article was printed by Forbes Magazine in their magazine as well as on their official website in order to spread awareness amongst the public. Drone delivery system will help the organization to engage customers along with approaching to the new customer segments. This article helped the organization to spread awareness amongst the public in the following ways: Reachability:As article's reachability is less in comparison to the other platforms because when a person will search for adequate keywords, then only he/she will be able to reach to the article. Along with this, those users will get the instant notification who has taken subscription (Xiang, et. al., 2016).
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Digital Media Entrepreneur7|P a g e ï‚·Frequency:Once article will be posted, making amendments in the same article is not possible and if the author wants to share additional information on the same article, a separate article needs to be posted. ï‚·Engagement:Although, engagement with the article is bit high because an article includes a lot of information in comparison to the other platforms. Above article includes whole information about the drone delivery system i.e. since the plan has been made till its latest progress (Kimchi, et. al., 2017). Above article posted by the author at the website of Forbes has sufficient information through which an individual could settle down his/her curiosity level. Currently, the project is in beta testing because government authorities have not given approval yet but in 2016, the organization announced the progress update regarding drone delivery project. Amazon announced their partnership with the UK Civil Aviation Authority in order to complete the project as well as to make it ready for the purpose of its introduction. Social media
Digital Media Entrepreneur8|P a g e Social media is another effective as well as an important and effective source of marketing and promotion and in today's business environment; social media marketing is one of the crucial elements of marketing and promotional campaigns of every business organization. Social media marketing is an effective element of digital media marketing. In 2016, CNN posted on Facebook which one of the largest social media channels is regarding the drone delivery system introduced by Amazon. There are various advantages of promoting through social media such as low cost, easy to amend and regular interaction could be made with the target audience. Following are ways through which social media marketing could be evaluated: ï‚·Reachability:Internet users are increasing rapidly and so companies are mainly using the internet for branding their products and services. When CNN posted on Facebook regarding the drone delivery system in 2016, approximately 1000 people viewed the article and approximate 17,000 people liked that post with 1000 comments and 6500 people shared that post. Thus, social media post could easily reach to the target audience through which primary objective of spreading awareness amongst the target audience could be fulfilled easily (Siegel, et. al., 2016). ï‚·Engagement:Social media channels are effective in terms of engaging the consumers. Huge content is daily shared and viewed on social media platforms which regularly keep a social media user engaged. Social media channels are also known as a type of addition and taking the advantage of this, companies use this platform for branding and promotion of their products and services. In this post, CNN has also shared a video regarding the drone delivery system which is another element for targeting and engaging the target audience (Zhou, Zhou & Zhou, 2014). ï‚·Frequency:There is no expiry date for a post over social media platform until the time the post is deleted. On social media platforms, companies could amend their post anytime along with sharing new posts. Cost of posting on social media platforms is also low, thus, it could be used on a random basis. Thus, it could be said that organizations could promote its products and services through social media platform effectively in comparison to the other promotional tools (Farris & William, 2016). Comparison between two platforms Criteria of comparisonWebsite (Forbes.com)Social Media (Facebook) AestheticsLack of attraction but huge information On social media platforms, images, content as well as
Digital Media Entrepreneur9|P a g e videos could be shared. This helps the organizations to approach large part of the target audience. InterfaceIn terms of interface, the website is a bit difficult because users are required to navigate more on search engines (Murray & Chu, 2015). Over social media platforms, social media users directly get the notification from the companies when they post a new update over their official page. Thus, it is more users friendly. ContentIn terms of content, the website provides rich and adequate content as it well researched by an author who is posting an article or by the website only. The information provided by a website is a fully reliable source of information. Making amendments in the content shared over the website is not possible except the website operator, thus, website share rich and well-researched content. Social media pages are transparent and here, users and companies both could post their reviews regarding the content posted by the organization. Due to both negative as well as positive comments, it is a bit difficult to analyse the reliability of information shared on the post (Walsh & Falesch, 2015). Social media accounts are easily hackable, thus, reliability over content shared over social media is less. OriginalityThe website contains clear and wise information on which users could easily rely. An authorised person is only allowed to share the Although, official social media pages are handled by authorised people as both company and users could share their reviews over the
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Digital Media Entrepreneur10|P a g e content over website which reduces the chances of unclear and wrong information. shared content which could affect the social media users in positive as well as in a negative manner. Audience engagementAudience engagement is less in website promotions because the audience needs to search particular content. For example, If I want to gain information on Drone Delivery System introduced by Amazon, then I'll go with websites (Welch, 2015). Social media platforms are more engaging because content shared is more attractive in comparison to the other platforms like websites. I am following Amazon’s social media pages on all social media platforms as I am one of the active customers of Amazon. As soon as possible updates are shared over social media accounts of Amazon, I got the notification immediately. Thus, I do not need to put many efforts to gain information about the drone delivery system as regular updates are being shared by Amazon on their social media accounts. SKILLS ASSESSMENT My avid interest in the field of digital marketing can be drawn from the fact that I belong to the millennial generation. The generation which is the flag bearer of the current technology, digital disruption and the largest consumer base for social media. I am a social media and
Digital Media Entrepreneur11|P a g e digital media enthusiasts who consume as much information as possible leveraging the power of digital and internet technologies. In order to give an impetus to my learning abilities and to be recognized as a project or campaign manager, I enrolled myself in the Google certification program. The certification program of Google gave me a theoretical and practical understanding of the landscape of digital marketing. In particular, I learned the nuance of web designing, web architecture, creative content production, blogs writing, SEO & SEM, social media monitoring and marketing, data analytics and many more. After completion of the 12- month course, I was ready to pursue my dream of being a digital marketing manager or a project/campaign manager (Ganesh, Menendez & Qualcomm Inc, 2016). My skills in site creation and content production are related to my learning of HTML language which helps me to create functional sites for my small clients. I have been creating websites right from my college days and I have done my mastery on Wordpress. I am easily able to identify the aesthetics, usability, interface, and audience of a web page/website/social media page by having a thorough look at it. My skills in content writing can be drawn from my ability to research, identify the keywords to expedite my search, understanding of the SEO and meta tags, adaptability to new content and constant reading to know the current trends in the content creation. I have been using a different form of content such as Rich media, Gif, the creation of Blogs and postings on Quora to boost y skills further in the area of content creation (Koster, 2015). The second skill set of creative content production can be drawn from my professional learning, college projects, internship and freelancing projects. I have written content for multiple tech companies; I frequently write blogs on Amazon's innovation and creativity and update the social media page of a few of my friends business. In terms of content production, I not only go through different literature available on the web organically, I practically try a hands-on experience with various projects surfacing on the web. I have also been learning the art of photography to make my posts and content engaging, and increase the conversation on the page (Mourelo Ferrandez, et. al., 2016). My third skill encompasses my experience in the media studies and media production. I enrolled myself in a minor course wherein I developed my skills in examining and understanding the cultural, social and ethical dimension of communication practices, along with that I also learn the operation process of Youtube and Facebook when it comes to uploading and analysing the data and broadcasting the films. My combined learning of the digital and online ecosystem makes me a right fit to work on the project of drone delivery by
Digital Media Entrepreneur12|P a g e Amazon. My focus in the campaign lies on: ï‚·Building awareness of drone delivery through the creation of engaging post and content on social media and other digital channels (Manitta, 2016). ï‚·Market the Project through Affiliate, social media, web marketing and generate the required number of impression and Clicks for the campaign. ï‚·Increase the Reach of the campaign by focussing on the target audience. ï‚·Do a frequency mapping for the campaign, for optimum utilization of resources (Hoareau, et. al., 2017).
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Digital Media Entrepreneur13|P a g e PART 2: PITCH DEVELOPMENT UNIQUE PROPOSITION Drone delivery system introduced by Amazon will not prove as an advantage to the customers of the organization but it will also help other sectors as well. The primary advantage of using drone delivery system in e-commerce industry will ultimately help the organizations to move towards sustained growth and overall development. Following are certain USPs of drone delivery system: ï‚·Fasten up the delivery process ï‚·Customers will get their ordered products on the quick basis ï‚·Better for the environment because drones are operated through one battery whereas trucks and other vehicles lead to the emission of pollution ï‚·The customer base for the organization will be enhanced (Pandit & Poojari, 2014). Drone delivery project is well structured and it has the efficiency to attain support from the government, public as well as private sector. This is because there are huge advantages linked with this project which will help the organization to enhance their customer base along with raising their revenues, profitability, and sales. The project is evaluated on the basis of aesthetics, interface, content, originality, and audience engagement and on the basis of these criteria; it could be evaluated that drone delivery project will be proved as an effective and it will be efficient enough to grab the attention from investors through which funds appropriated funds could be raised (Goossen & Goossen, 2011). Apart from this, the drone delivery project is effective enough to grab the attention of all industries because drones could be used in any circumstances and that too at low operating cost. Governments could use drones for distributing food packets and other necessary items at the time of natural calamity. Till the time, helicopters are being used for this purpose which leads to high cost and it also a time-consuming process whereas if drones will be used in the circumstances of natural calamity, all parts of the affected area will be served at once (Dorling, et. al., 2017). FUNDING Amongst the various options available to raise funds, crowdfunding will be used as the primary source of arranging funds for drone delivery project. In relation to this,
Digital Media Entrepreneur14|P a g e organization will advertise and market the USPs, primary features and advantages of the drone delivery system in order to grab the attention of the public. Apart from this, it is not necessary that every investor will show his/her interest in the organizational project, in this case, the organization will present its financial statements in order to provide an idea in relation to the rate of return to the investors. This will also help the organization to raise funds for their new project (Nicholas & Carswell, 2014). Apart from this, drones could be used in every industry, thus, raising funds from the private sector will also be another great option for the organization for the successful launching of their new project. Amazon is one of the largest e-commerce companies around the globe and in relation to this; their brand value is high enough to seek funds from different sources. The organization could also take out certain part of their earnings in order to arrange funds for the introduction of new project because with the help of drones, organization will be able to approach to the new customer segments which will lead towards increasing revenues, profitability, market share and huge brand value (Martin, 2016). FORECASTING Impact of drone delivery system over target audience as well as over other sectors such as private and public will be huge. This delivery system will be proved as a revolutionary change not only in the e-commerce industry but the introduction of drones will also help other industries like medical for rendering urgent medical facilities, government for approaching to the affected people during a natural calamity, transport industry, etc. Drones could be regulated by a single battery i.e. environment will be saved whereas other transport mediums lead to the emission of pollution. Thus, there would be only possible impacts of the drone delivery systems over the target audience and over other sectors (Scott & Scott, 2017). Apart from the impact of drone delivery system, lot of benefits and opportunities are also linked with this project and some of them are as follows: According to the survey, drone delivery system has already got an approval from the public. With the help of drones, e-commerce companies will be able to acquire offline market’s share.
Digital Media Entrepreneur15|P a g e Companies will be able to satisfy their consumer’s demands and wants. As trucks and other vehicles running on the road looks common, in the near future, drones flying in the sky will also look common (Yates & W Morrison Consulting Group Inc, 2018).
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Digital Media Entrepreneur16|P a g e REFERENCES Amazon Inc. 2018. Amazon Prime Air [online]. Available at: https://www.amazon.com/Amazon-Prime-Air/b?ie=UTF8&node=8037720011. [11/08/2018]. Amazon Inc. 2018. Prime Air [online]. Available at: https://www.aboutamazon.com/innovation/prime-air. [11/08/2018]. Dorling, K., Heinrichs, J., Messier, G.G. and Magierowski, S., 2017. Vehicle routing problems for drone delivery.IEEE Transactions on Systems, Man, and Cybernetics: Systems,47(1), pp.70-85. Farris, E. and William, F.M.I., 2016.System and method for controlling drone delivery or pick up during a delivery or pick up phase of drone operation. U.S. Patent Application 14/814,501. Ganesh, S. and Menendez, J.R., Qualcomm Inc, 2016.Methods, systems and devices for delivery drone security. U.S. Patent 9,359,074. Goossen, E. and Goossen, K., Honeywell International Inc, 2011.Autonomous Payload Parsing Management System and Structure for an Unmanned Aerial Vehicle. U.S. Patent Application 12/576,583. Hickey, M. 2013. Meet Amazon Prime Air, A Delivery-By-Aerial-Drone Project [online]. Available at:https://www.forbes.com/sites/matthickey/2013/12/01/meet-amazon-prime-air- amazons-delivery-by-aerial-drone-project/#7b9495d479b2. [11/08/2018]. Hoareau, G., Liebenberg, J.J., Musial, J.G. and Whitman, T.R., International Business Machines Corp, 2017.Package transport by unmanned aerial vehicles. U.S. Patent 9,731,821. Hong, I., Kuby, M. and Murray, A., 2017. A deviation flow refueling location model for continuous space: A commercial drone delivery system for urban areas. InAdvances in Geocomputation(pp. 125-132). Springer, Cham.
Digital Media Entrepreneur17|P a g e Kimchi, G., Buchmueller, D., Green, S.A., Beckman, B.C., Isaacs, S., Navot, A., Hensel, F., Bar-Zeev, A. and Rault, S.S.J.M., Amazon Technologies Inc, 2017.Unmanned aerial vehicle delivery system. U.S. Patent 9,573,684. Kohli, M., Mastercard International Inc, 2017.Systems and methods for using network data in an automated delivery system. U.S. Patent Application 15/168,761. Koster, K.L., 2015.Delivery platform for unmanned aerial vehicles. U.S. Patent Application 14/560,821. Lection, D.B., Rakshit, S.K., Stevens, M.B. and Wilson, J.D., International Business Machines Corp, 2018.Methods and systems for multiple drone delivery system. U.S. Patent Application 15/290,215. Manitta, S., 2016.Unmanned Aircraft Systems Ground Support Platform. U.S. Patent Application 14/793,708. Martin, J., 2016.Unmanned Aerial Delivery System. U.S. Patent Application 14/481,456. Mourelo Ferrandez, S., Harbison, T., Webwer, T., Sturges, R. and Rich, R., 2016. Optimization of a truck-drone in tandem delivery network using k-means and genetic algorithm.Journal of Industrial Engineering and Management,9(2), pp.374-388. Murray, C.C. and Chu, A.G., 2015. The flying sidekick traveling salesman problem: Optimization of drone-assisted parcel delivery.Transportation Research Part C: Emerging Technologies,54, pp.86-109. Nicholas, F.C. and Carswell, I.B., 2014.Method and system for product delivery. U.S. Patent Application 13/937,148. Pandit, V. and Poojari, A., 2014. A study on amazon prime air for feasibility and profitability: A graphical data analysis.IOSR Journal of Business and Management,16(11), pp.06-11. Scott, J. and Scott, C., 2017. Drone delivery models for healthcare. Sage. Shavarani, S.M., Nejad, M.G., Rismanchian, F. and Izbirak, G., 2018. Application of hierarchical facility location problem for optimization of a drone delivery system: a case study of Amazon prime air in the city of San Francisco.The International Journal of Advanced Manufacturing Technology,95(9-12), pp.3141-3153.
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