Strategic Marketing Report: Amazon Go's Market Analysis and Planning

This report provides a comprehensive strategic marketing analysis of Amazon Go, focusing on its market position and strategies. It begins with an introduction to strategic marketing, outlining its purpose and the marketing planning process. The report then delves into a detailed examination of Amazon Go, incorporating PESTLE analysis and Porter's Five Forces to evaluate the external environment. A SWOT analysis and stakeholder analysis are presented to assess the company's internal strengths and weaknesses. The report further develops SMART strategic objectives, explores market segmentation options, and proposes a brand positioning strategy for a targeted market segment. The significance of the marketing mix is analyzed, with a focus on pricing, promotional, and distribution strategies. The report concludes by summarizing key findings and providing references to support the analysis. The report covers concepts such as brand pyramid, brand positioning and brand management. Overall, the report offers insights into Amazon Go's strategic marketing approach, providing valuable information for understanding its market strategies and competitive positioning.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Purpose of strategic marketing ..............................................................................................3
Marketing planning process ..................................................................................................3
Marketing models/ theories ...................................................................................................4
Significance of branding.........................................................................................................6
Concepts of brand pyramid, brand positioning and brand management. ..............................6
TASK 2............................................................................................................................................7
1 Evaluate PESTLE analysis and review Porter’s 5 forces relevant to your organisation.....7
2 SWOT analysis and a stakeholder analysis of your organisation........................................9
3 Develop SMART strategic objectives for the organisation...............................................11
4 Discuss how market segments could be used for the organisation and select one or more
market segment to justifying your decision..........................................................................11
5 Propose and justify a brand positioning for the targeted market segment........................12
Analyse the significance of the marketing mix for the organisation....................................13
Analysing pricing, promotional and distribution strategy of one of the product category ..14
CONCLUSION..............................................................................................................................16
REFERENCES:.............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Strategic Marketing is a process by which business organisation sets itself different from
other companies in competitive market with the help of their strengths and capabilities. They
provide better customer values and satisfaction in order to gain competitive advantage. Strategic
marketing has main goal to provide business a positive response by its customers despite of high
competition in market. Strategic marketing help business in evaluating the external environment
and plan marketing strategy accordingly which will lead to companies growth and fulfil their
objectives. In this task of report, there is strategic marketing plan including PESTLE analysis and
Porter's five forces in given organisation context. Amazon go is chain of convenience stores in
UK and US operated by Amazon retailer. These stores are cashier less and partially automated
with self services. This report discuss the companies strengths and weaknesses through the
SWOT analysis and also specifies their SMART objectives. Further it evaluates the different
market segments that could be useful to Amazon go. In last report includes the justification
behind brand positioning in target market.
MAIN BODY
TASK 1
Purpose of strategic marketing
There are various marketing strategies which can be used by the organisation in order to
become more competitive with the changing scenario. They facilitate to attract the customers
with the help of new and unique products and services. There are various resources which can
be used in order to achieve multiple targets in the market. Organizations are able to set their
advertising budgets in advance when they have a sound strategy in place. This implies that the
marketing strategy also impacts how much money will be made from the advertising campaign.
A marketing strategy provides a succinct explanation of how a company can accomplish its
stated goals and objectives (Hansen and Juslin, 2018).
Marketing planning process
The main strategy of the firm is to analyse multiple goals which they want to attain in the
market. They need to formulate the new methods which will make them more superior in the
desired industry. The advertising technique a company will use to market and sell its goods or
services is called a marketing plan. The target market, the best way to reach them, the price point

at which the good or service should be sold, and the method by which the business will evaluate
its performance will all be determined by the marketing strategy (Beirman, 2020). A systematic
techniques uses certain components which includes planning, organisation and other perspectives
which can be used in order to carry out the tasks effectively. There are various departments
which needs to work in a coordinated manner and due to the diversified situation the
organisation needs to become more productive and provide quality goods to customers. The Four
Steps to Success in the Marketing Planning Process
1. Setting objectives and goals.
2. Examining the present circumstances.
3. Writing the Plan and Strategy.
4. Implementing and overseeing the plan.
Marketing models/ theories
According to a fundamental marketing principle, a business must position its goods or
services in the market in such a way that consumers perceive them as having a need for them or
as having a specific advantage in order to maximise sales (Abratt and Bendixen, 2018).
There are various types of theories/models and concepts of marketing from which some of
are mentioned below.
Marketing mix
Businesses and marketers use the marketing mix as a tool to determine a product or brand's
offering. The Marketing Mix has been linked to the 4 Ps.
 Product- This is the stage in which the organisation provide the products to the
customers and they clarify what the products is which the audience needs to buy.
 Place- The target customers needs to buy the products and services which si of superior
quality in order to maintain the diversity in the market.
 Price- The product's price should always be viewed as offering good value for the
money. One of the core principles of the marketing concept is that customers are
typically willing to spend a little bit more for something that performs exceptionally well
for them. This does not necessarily imply that it should be the cheapest option.
 Promotion- In this new changing era there are various techniques which can be used by
the organisation in order to sell the products and services in an effective manner. There

are new tools which includes social media platforms like Instagram and Facebook in
order to promote the products.
Ansoff matrix
Igor Ansoff created the Ansoff matrix in 1965, and businesses utilise it to create strategic
options. Due to its simplicity and convenience of use, it is one of the most often used tools for
this kind of study.
 Market Penetration- This strategy focuses on boosting existing product sales to the
organization's current market.
 Product Development- The goal of this strategy is to introduce new products to the
existing market.
 Market Development- The goal of this strategy is to expand the portfolio's existing
products into new markets.
 Diversification- This approach focuses on introducing new products to untapped
markets. Diversification may or may not be connected (Sahaf, 2019).
Porter’s Five Forces
This is the theory which is been used in order to analyse various forces which can impact
the business operations in a negative manner. The five forces are as follows:
 Competition- This includes how many rivals there are in the market it is seeking to break
into, what resources they have, how devoted their clients are, and their own competitive
approach.
 New Entrants- This is the stage which will help the organisation to modify their
products and services in order to minimise the threat of new entrants.
 Substitution- In this instance, the term "substitution" actually refers to a completely new
product rather than the usual meaning of replacing a product with something comparable.
 Suppliers- Without suppliers, the product wouldn't be possible. The organisation needs
to maintain the healthy relationship with the suppliers. The products the essential raw
materials which is necessary in order to provide the goods and services.
 Buyers- The one force that has the most impact is the customers. They will decide if the
product is reasonable in price or whether it is overpriced (Thrassou, Vrontis and
Bresciani, 2018).

Significance of branding
The main focus of branding is to initiate with the mindset of the people and help them to
understand that what is the products which they use in order to perform their day to day
activities. There are multiple measures which can be taken by the company in order to promote
the products and services in the market. The organisation can brand their products with the
changing customer needs and they can build the healthy relationship with the customers by
provd8ng the enhanced services and goods.
 With this strong brand story Amazon has implemented the new variations and providing
the effective services to the customers which will help them to maintain the dominant
position in the market. They are significantly taking the new measures in enhance the
quality of their services. They are capable of doing the changes simultaneously within the
given period of time. They can use various other factors to become more competitive and
achieve the desired goals and objectives.
 Many factors, like the product range, the focus on the consumer, and the prices, set
Amazon apart from other online stores. The company witnessed exponential growth and
expanded product lines one after another, earning the title of "the largest internet store in
the world." One of the most important aspects of Amazon's brand uniqueness is its large
product range. The broad assortment and affordable prices on Amazon play a significant
role in their positioning, branding, and marketing. Because of this, they are continuously
coming up with new ideas to improve the shopping experience for customers (Chiweshe
and Ellis, 2019).
Concepts of brand pyramid, brand positioning and brand management.
Brand pyramid
The Brand Pyramid aids businesses in better understanding how customers feel about their
brand and product, as well as how devoted they are. They get more devoted as they move up the
pyramid.
Brand positioning
It is a marketing technique developed by brands to communicate their value proposition,
or the reason why a buyer should choose their brand over rivals, while also establishing their
brand identity. Comparative, differentiating, and segmenting are the three fundamental forms of
product positioning strategies that brands should take into account. By addressing the appropriate

people and crafting the most effective message, marketers may use these tactics to make their
product stand out (Chernev, 2019).
Brand management
Building and maintaining closer relationships with one's audience is made easier by a solid
brand management plan. The ability of a business to accomplish three crucial components—
brand equity, brand loyalty, and brand awareness—is crucial to effective brand management.
Customers cannot perceive these three components, in contrast to the brand's emblem or colours.
TASK 2
1 Evaluate PESTLE analysis and review Porter’s 5 forces relevant to your organisation.
PESTLE Analyses
PESTLE analyses is framework which describes the macro environment factors used in
strategic management (Nazariani and Et. AL., 2018). This method used to identify the risk factor
involved in expansion of business as well as with profit generating sources. Factors of PESTLE
in relevance with Amazon go company has been discussed below -
Political factors – These factors are driven by government with their actions, policies
and regulations. Political factor includes the corporate tax, tax policies, trade tariffs and
disputes. Amazon go should evaluate the each policies and regulations imposed by UK
government in order to make smooth operation in country.
Economical factors – This force of PESTLE analyses refers to the economical
conditions of country including inflation rates, interest rates and employment rates also. Amazon
go companies future will depend on the condition of their economy (Riwayadi, Deliabilda and
Panahatan, 2021). With the service of cashier-less departmental stores in UK will promote high
level of living standard among customers and make less time consuming for the business
professionals for their day to day purchases.
Social factors – This element of PESTLE reflects how social trends and culture affects
the business environment and its growth. Social factors includes the life style trends, consumer
beliefs and their preferences (Rześny-Cieplińska, Szmelter-Jarosz and Moslem, 2021). Amazon
go should follow the social trends and their customers beliefs in order to sustain their position in
new market.

Technological Factors – This force is related to the technological changes and their
advancements related to the corporate world. Amazon go can adopt the strategy of reducing cost
of production and can increase the use of internet in their stores.
Legal Factors – Legal aspects of country affects the function process of business which
can lead to a loss. Health and safety laws, consumer protection laws and their trade practices
included in the Political factor. Amazon go can research the market before entering regarding
consumer and protection laws, so they will make marketing strategies according to that.
Environmental Factors – This last force of analyses is more concern with the
environment and surroundings of business which have impact on the ecological aspects. It
includes the climate change, global warming, waste management and the effect of green house
gas emissions. Amazon go should consider the requirement of effective waste management and
apply tactics accordingly in direction to manage their waste in offline stores.
Porter's Five Forces
Porter's five forces model has been used in analysing the competitiveness in market that
helps in identifying their strengths and weaknesses (Sahaf, 2019). This frame works has been
applied to understand the level of competition in same industry and should implement efficient
strategies accordingly to gain long term sustainable profit. Here's the detailed of porter's five
forces in Amazon go's company are explained below -
1. Competition in the industry – This first force of porter's five refers to the competition and
their power to increase the competitiveness in market. Amazon go does not have much
competitors in market who serves the cashier less service in market. This reflects the
competition to Amazon go company is low comparatively to others.
2. Potential of new entrants into the industry – Companies power and strategies also get
affected by the new entry in the industry. Amazon go comes with the unique and
individual new strategy that would help them in achieving the advantage and makes
barrier to enter new company with same service.
3. Power of suppliers – This factor of porter five model focuses on how easily suppliers
affects the cost of final product in to market (Sahaf, 2019). Amazon go does not have
much suppliers and in result they will not get affect the cost imported in operating their
cashier less stores in market.

4. Power of customers – This factor represents the ability of customers and how they drive
cost low in market. Amazon go has strong customer base which gives them a power to
negotiate with the price and gets better deal on products.
5. Threat of substitute products – In last force of porter's factor explains the threat related to
the substitute product available in market. Amazon go serves customers with more
convenience factor of cashier-less stores which gives them a power to increase the price
of the products. If substitute products are available then there is threat to company.
2 SWOT analysis and a stakeholder analysis of your organisation
SWOT Analysis
SWOT analyses is management tool used for identifying organisation's strengths,
weaknesses, opportunities and threats related to the business competition and its future planning
(Schiavone and Simoni, 2019). This method help business to grow more and analyse the
strategies used for becoming successful. Here's the SWOT analyses of Amazon go with detailed
information is as follows -
Strength Weaknesses
 Brand Name – Amazon has strong
brand value which shows the strength
of company. This factor works in
positive direction in launching new
feature at their stores in UK.
 Convenience Factor – Through the
service of cashier less stores in UK,
Amazon go provides the more
convenient feature to its professional
customers and it does not take too
much time involved in queues.
 Tech Maintenance – Highly technical
procedure involves in the setting the
systems at each store and after that to
maintain them is huge task and contains
huge cost maintenance.
 Loss of Jobs – Adopting a new
technology will impact the employment
rates. Many skilled people will lose
their jobs such as cashier and baggers.
This will increase the rate of
unemployment in UK.
Opportunity Threats
 Advance Technology – Amazon go will  Cyber crime – Technology

move in direction to achieve more
success from the technology factor.
Advancement in software and data
security will help them in grow more.
advancement at their stores in UK will
increase the risk of cyber crime in
company.
Stakeholder Analyses
Stakeholders refers to the people who has interest in company and does not get affects by
the business (Schiavone and Simoni, 2019). Investors, employees, customers and suppliers can
be considered as stakeholder in company. Stakeholder analyses is the process of identifying the
potential people before the starting of project. It includes the dividing the groups according to
their level of participation, interest and have power to influence project. Stakeholders must be
engaged and satisfied from the goals and objectives of project. Some of the factors of stakeholder
analyses has been explained below -
 High power and High Interest – These stakeholders are important for the project and
should be treated accordingly with prioritizing their work in business (Stead and
Hastings, 2018). Investors, government participation in the project of Amazon go can be
considered as their high power, high interest stakeholders.
 High power and Low Interest – These stakeholder have enough powers to influence the
business operations, while they have least interest in the project of company. This
includes the committee members or board of directors in Amazon go company.
 Low power and High Interest – In this type of stakeholders people are more interested
and should checked on regularly to ensure they are not facing problem in project. These
includes the employees and managers of the Amazon go company and have power to
affect the functioning of project.
 Low power and Low Interest – This factor consists of those people who are less
interested as well as less powered. This factor involves the suppliers of the Amazon go
company.
Above analyses of stakeholders reflects the key factors that government regulatory laws,
investors, board of directors and committee managers play important role in the function of any
project assigned. These stakeholders will affects the project and had influence in the decision
making process in Amazon go.

3 Develop SMART strategic objectives for the organisation
SMART Objectives
Objectives of every organisation plays important role and provides the direction in which
company has to move (Teoli, Sanvictores and An, 2019). Goals must be of clear, specified and
be trackable which allows managers and employees to get motivate and clearly mentions the
importance regarding the existence of company in market. SMART Objectives of Amazon go are
-
Specific – This term explains that goals should be well defined, clear and understandable
by the employees. Amazon go has goal to launch more ready to eat food products and grocery
items with cashier less stores in UK.
Measurable – This factor shows the criteria in which goals should be measurable. This
technique is used to track the progress in direction to achieve your goals. Amazon go has
objective to build numbers of stores in single financial year which can be easily measured.
Achievable – This includes the objectives should be attainable and achievable for the company.
Amazon go company has goal to develop more retailer stores in UK with high technology
advancement using and this is achievable for the company.
Realistic – In this, goals should be real or must be achieved in the given resources. Amazon go
has goal to launch more advanced retail stores and that is possible with the use of advance
technology.
Timely – This factor explains the time limit set by company to achieve planned objective.
Amazon Go also have objectives which can be achieved in upcoming four to five years with full
pace in market.
4 Discuss how market segments could be used for the organisation and select one or more
market segment to justifying your decision.
Segmentation -
Market segmentation is process in which creating a groups of large customers or huge
market on the basis of their potential of customers (Thrassou, Vrontis and Bresciani, 2018). This
includes the formation of large customer base in to different categories such as demographic,
psychographic, geographic and behavioural needs. Some of these types has been explained -
Geographic – This segment is based on the location, state or region in which customers
lives.

Demographic – This segment make groups based on age, gender, their incomes and
occupation in customers.
Behavioural – In this segmentation customers are divide in to groups according to their
interacting behaviours like how mush they use websites, apps or store.
Psychographic – In this segment, customers was divided on the basis of their life styles,
habits and activities.
Targeting
Target marketing involves the group of customers with in market which considers as the
target for their marketing strategies.
Amazon go has chose the psychographic market segment for their marketing strategy (Wacker
and Samson, 2021). The reason behind choosing this segment as the customers involved in this
target market involved a person with busy life styles and activities. Because of their busy
schedule they don't have enough time to purchase thing then wait in queue for the payment
section. This new technology of bringing the cashier-less stores in the market of UK will reduce
the time consuming factor related to the grocery shopping in corporate professionals.
Positioning
Market positioning refers to the strategy in which company establish their brand image or
product in the mind of customers.
5 Propose and justify a brand positioning for the targeted market segment.
Positioning
Market positioning reflects the process in which companies decides the strategy to build a
positive image of the product in the customers eyes. Brand positioning is process of owning a
unique position in the mind of target customer. Positioning has many types from which Amazon
go can adopt a suitable one. Explanation of these are -
Symbolic – This positioning is more concern with image of that has to be presented to
customers.
Functional – In this positioning reflects the specific function of the product and conatins
information how they make easy to use.
Experimental – This refers to the experience and emotions related to the products and service
offered by company.