Amazon Go: A Strategic Marketing Analysis of Traditional Retail Sector

This case study provides a strategic analysis of Amazon Go's venture into traditional retail, examining brand, market, customer, product, and owner insights. Amazon's marketing strategy leverages its strong brand awareness and innovative technology. The company prioritizes customer needs, offering a wide range of products at competitive prices. The analysis highlights Amazon's transition from online retail to incorporating offline markets, emphasizing the importance of adapting its online strengths to the challenges of physical retail to maintain profitability and growth. Desklib provides access to past papers and solved assignments for further study.

Marketing
Strategic analysis

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In this modern era, Insights is defined as something which is totally different from other. It can
also be said as something which is very innovative by nature. The word “consumer insights” has
been interchanged with the “market research”. However, insights can be defined as innovation,
the basis of corporate marketing and growth. Enhancing the products and services of the
business is the main focus of the entire process of insights. There are majorly nine different
types of insights i.e. Customer, Cultural, Future, Product, Brand, Market, Purchase, Usage, and
Owner Insights (Montague, 2018). The figure mentioned below describes the types of insights.
Thus, the five insights will be explained based on the case (Amazon Go- Venturing into
Traditional Retail).
Figure: Types of Insights, 2018
Brand Insights: Amazon’s marketing strategy depends on its powerful brand awareness.
According to the case study given by Bezos, “Brand names plays an important role in the online
world as compared to the physical world”. He also stated that the role of communicating the
story of Amazon’s brand signifies that one can have best technology and best model, but if one
does not have best storytelling, no one will watch it. In order to enhance brand image, the
company is involved in various free gifts and samples as well. Today, the company is known as
one of the largest global online retail market because of the brand value it can created in the
minds of customer (Edelman, 2010).

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Market Insights: The company focused on the innovative marketing technology and enhanced
the customer views towards its product and customers. Amazon Go successfully developed a
buzz in the market among its general public and the competitors also began to react. In 2015,
the company invested $2.8 billion on marketing through digital media and introduced
partnerships with online celebrities to market its products and services. Amazon focused on
online marketing instead of offline promotion. However, the creation of Amazon Go, the
company has started focusing on offline retailing as well (Rothaermel & McKay, 2015).
Customer Insights: Amazon has always focused on the customer needs and demands. Fulfilling
customer needs and demands has always been the major priority for the company. The
company is stuck with the three major ideas with the last 18years behind its success. The first
idea is the customer i.e. customer is the first priority and they are considered as king. Second
one is Invention and third one is patient. It minimized its delivery time to gain happy customers
and the company also offered same day delivery in few cities. In addition to this, the company
aims at customer-focused approach and offered huge number of products to satisfy its
customer needs (Grewal, Roggeveen & Nordfält, 2017).
Product Insights: The company aim at selling huge number of products at highly competitive
prices. However, the main aim of the company is to offer various products so that customers
can easily find all their needs at a single platform. Amazon entered household sector, electronic
sector as well as grocery sector and earned a huge profit margin. Amazon element products are
also easily available to its prime members and few other loyal customers (Rothaermel & McKay,
2015).
Owner Insights: In the year 1995, Jeff Bezos, a 30 year old engineer who was graduated from
Princeton University started to develop an online platform in Seattle. He introduced online
bookstore platform for the very first time and started selling books, videos, computer hardware
and discs. The demand of books kept on rising and the main aim of Bezos was to provide huge
varieties of online books as compared to offline stores. Amazon competitors were Barnes and
Noble and another book seller. With the help of Partnership with Ingram Book Group LLC, the
company started accessing books at wholesale price and sold those books at low price online. In

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the first 2months, the sake enclosed higher than 45 countries with US$20,000 per week (Chen
& Leteney, 2000).
Thus, it can be concluded that the company has earned huge amount of profit with huge
customer demands. The development of Amazon Go and Amazon Elements has created a
separate view for the company to focus on both online as well as offline market. This is one of
the best oppurtunity for the company to grab and earn profit in bulk. The company has fully
demonstrated its skills and capabilities in the area of online segments by building a strong
supply chain and customer centricity. In addition to this, the company should now focus on
offline market and influence its online assets and capabilities into offline assets and capabilities.
The company will have to face lots of difficulties to grow its offline market and but ultimately,
the company will earn high profit margin if it will be capable of creating a successful offline
retail market (Kittilaksanawong & karp, 2017).

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Chen, S. & Leteney, F., (2000). Get real! Managing the next stage of Internet retail. European
Management Journal, 18(5), pp.519-528.
Edelman, D. C. (2010). Branding in the digital age. Harvard business review, 88(12), 62-69.
Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). The future of retailing. Journal of
Retailing, 93(1), 1-6.
Kittilaksanawong, W. & karp, A., (2017). Amazon Go- Venturing into Traditional Retail. Ivey
publishing.
Montague, M., (2018). What are Insights? My Favorite 7 Definitions. Available at:
https://boltgroup.com/insights-definition
Rothaermel, F. T., & McKay, M. (2015). Amazon. com, Inc. McGraw Hill Education.