For Office Use:

Grade

Retail Marketing
Case: Amazon Fresh
Group 13
Submitted to: Dr. Sapna Parashar
Section A
MBA-FT 2019-21

Name Roll No.

Divyesh Jain 191222
Namit Maheshwari 191233
Ankesh Jain 191314
Kajal Baid 191428

Institute of Management, Nirma University

Date of Submission: August 31st ‘2020
 AMAZON FRESH

OBJECTIVE OF CASE
The main objective of the case is focused on why this business was very risky and why the
earlier organization failed to sustain their business. It also focused on why Amazon able to
differentiate itself from the rest and able to get success. The case describes the business
model along with their strategy and end on finding the best future strategy Amazon Fresh
should go for.

RETAIL MIX OF AMAZON FRESH

 Price
It has marked itself as convenience centre. But later on they move to the low pricing
model in order to capture the market share and conquer this market. Amazon Fresh priced
its offerings at prices comparable with those one will find at grocery stores.

 Promotion
Amazon showcased Amazon Fresh as a convenience store. Its special endeavors featured
the site as store with " great selection and great price and really convenient experienceAs
a method of advancing the administration, the conveyance was complimentary and clients
were offered free examples with orders.

 Place
The market of Amazon Fresh is currently in the Seattle.

 Product
Amazon Fresh offered new basic food item items as its prevailing variety. With its
expanded mix with its parent site as the administration developed, almost 500,000 items
from the parent site could be requested from Amazon Fresh.

 Presentation
For delivery purpose, Amazon uses a green coloured trucks in which the products are
stored in reusable coolers and totes. It also used frozen bottles and ice packs for their
deliveries

 Personnel
The administration likewise gave the clients to arrange from nearby retailers from Seattle.
In light of the client input, the drivers drove gradually and turn-off motors and headlights
during early morning conveyances, so as to forestall noise creation.
BUSINESS MODEL OF AMAZON FRESH

CHALLENGES
 Own logistics infra to keep food at appropriate temp
 Sufficient customer density
 Customized delivery trucks sat idle at much of the time
 Delivering perishable goods
 Customers had to be at home to collect orders

KEY PARTNERS
 Local merchants (notably to sell fish)
 Currently third party logistics( UPS, Us Postal Service, FedEx)
 Food Supplier (Restaurants, other retailers)

KEY ACTIVITIES
 Inventory Management
 R&D on digital solutions for shopping experience
 Outsourcing of delivering activities

KEY RESOURCES
 Integration with Amazon.com
 Advance IT tools and robots
 Warehouses with computerized and automated tools
 Seasoned executives with experience in both e-comm and retail ops

VALUE PROPOSITIONS
 10,000 self-stable staple and gourmet items (2015) – main website
 100,000 grocery items
 Digital basket
 Delivery – either on th
 e same day of next day
 Great selection, great prices and convenient exp
 Temp controlled totes
CUSTOMER RELATIONSHIPS
 No-questions-asked refund
 Amazon Prime
 Product Ads for sellers
 Additional services for final consumer
 Info about quality, ripeness and appearance
 Track past purchase, coupons section

CHANNELS
 Cross channel – pick up option (later discontinued)
 Scan barcodes and add products online from anywhere
 Own website

CUSTOMER SEGMENT
 Less price conscious and time starved customer
 Consumer interested in less shopping times

COST STUCTURE
 Information Technologies, warehouses, sortation centres, transportation costs

REVENUE STREAMS
 Commission from suppliers
 Sales of food, Grocery and fresh products
 Subscription fees for membership programs: Amazon Prime

COMPETITORS
 Safeway
 Wal-mart To Go (Asda)
 Peapod - Stop & Shop
 Instacart (Crowd-sourced model)