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Four (4) P's Marketing Mix

Analysis
Four (4)P's of AmazonFresh:
Rekindling the Online Grocery
Market Marketing Mix Analysis
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Overview
More than a decade after the high-profile failures of several early online
grocers, grocery remains the largest single U.S. retail category
and one of the few that has not yet migrated online. Amazon began testing
its grocery-delivery service, AmazonFresh, in Seattle, in 2007;
five years later, the company has made significant progress. The case
traces the evolution of AmazonFresh's business model and
describes the operating capabilities necessary to compete with
brick-and-mortar supermarkets like Wal-Mart and Safeway and with new
digital
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grocery startups. Now Amazon needs to decide on AmazonFresh's next

step. Should the company continue refining its business
model in Seattle or expand to another city? What factors should it take into
account when planning its next move?
Mix
fi​eld. Four ​&
Authors :: Rory McDonald, Clayton M. Christensen,
Robin Yang, Ty Hollingsworth
Category :: Technology & Operations
Key Words :: Emerging markets, Innovation,
Internet, Supply chain
Marketing Mix of AmazonFresh:
Rekindling the Online Grocery
Market – Definition &
Explanation
Neil Borden of Harvard Business School first used the term “Marketing Mix”
to explain the set of activities that a firm uses to execute its
marketing strategies. According to Neil Border, organizations blend the
various elements of marketing mix into a marketing strategy that
helps the organization to compete and developed a differentiated
positioning in the market place.

The 12 core elements of Neil Borden ​1 -

Promotions,
2 - Marketing Research – Fact Finding and Analysis,
3 - Servicing,
4 - Display,
5 - Physical Handling - Logistics,
6 - Personal Selling,
7 - Channels 8 - Branding,
9 - Merchandising 10 - Advertising 11 - Pricing,
12 - Packaging ​You can ​Rekindling CONSOLIDATION ​of

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also ​Distribution, , ​T​the ​check ​ –​ Product ​ Online

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- ​5C Marketing Analysis OF MARKETING
ACTIVITIES of AmazonFresh: INTO 4PS OF

MARKETING ​MIX
Jerome McCarthy consolidated the 12 elements of marketing mix and other
critical component into a simplified framework – 4Ps of
Marketing Mix.

What
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are the 4P’s of Marketing Mix

The 4Ps of Marketing Mix are -
1. Product – The products Grocery Amazonfresh is making or are in the
pipeline to capture potential markets.
2. Price – Pricing strategy that Grocery Amazonfresh is pursuing in various
customer segments it is operating in.
3. Place (Channels of Distribution ) – Distribution mix of Grocery
Amazonfresh has taken a new dimension with the emergence of Online
Retailing & domination of players such as Amazon.
4. Promotion (Communication Strategy of Grocery Amazonfresh) – The
emergence of social media and online advertising has changed
the landscape of Grocery Amazonfresh communication mix and
communication strategy.

Products – 4Ps in AmazonFresh:

Rekindling the Online Grocery
Market Case
In marketing strategy, product is not viewed as a tangible product,
customers of Grocery Amazonfresh can be delivered in numerous name,
installation and repair services, word of mouth references, and pre
purchase education provided by sales staff, point of These numerous ways
to understand product concept provide differentiate its overall value
proposition from that of the competitors.

Stages ​Identification Amazonfresh Design can Grocery Grocery

management, Product life cycle deliver. and Amazonfresh Amazonfresh

Life of the The Testing ​of ​Cycle of can and product key ​ T​ Opportunity

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Product ​cater Management ​ building – consideration ​

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Product ​C​ skills Product to through ​ with ​ and

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infrastructure – ​ is Market Launch ​ its ​Management

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designed resources, its of ​ present regarding Grocery
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various ​ research ​ – It ​ based and includes

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opportunities to ​ stages Amazonfresh product ​ provide

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acquired ​ and ​ on ​ such ​ decision the customer design

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post ​ value as ​as ​resources. for products ​ purchase – ​ sale

s​ h​ a​ re​
part ​marketing ​ equity ​ financing ways but ​ of ​ the etc.

d​ v​ i​ a
such ​ Marketing ​ managers source plans ​ as ​ – ​
to convenience of purchase value of to be delivered to the customers.
Value to the
of availability , quality assuring brand
the products, physical product , priming
Grocery Amazonfresh an opportunity to

Process
research is done to identify the needs of the customers that Grocery
proposition that customers are seeking and one that Grocery Amazonfresh
and testing are – customer value proposition, regulatory requirements,
differentiated positioning, and profitability.
regarding pricing, communication strategy, distribution channel
services.
– Once the product is launched the company needs to manage the
introduction, growth phase, cash cow stage, and finally decline stage.
For more research on "Company Analysis and
Internal Analysis" you can checkout the ​SWOT
Analysis of AmazonFresh: Rekindling the Online
Grocery Market ​and ​VRIO Analysis of
AmazonFresh: Rekindling the Online Grocery
Market
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PRODUCT LINE PLANNING DECISION

There are three major product line planning decisions that Grocery
Amazonfresh can take – Product Line Breadth decision,
Product Line Length decision, and Product Line Depth decisions.
Some of the considerations that marketing managers at

companyname 1. the 2. of 3. example the hardware ​ Product ​As using

Product ​The niche Does How Will the the firm. reason decision space
 complimentary present the position the the often products. product new

why product available regarding brands ​ Line Line ​launching of need

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Apple product ​ T​ Grocery will ​ launch ​ to in ​C​ by products

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stopped be ​Breadth Length ​product take the brand a ​ a

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viewed Amazonfresh new or no ​ market while product ​ frill

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from line ​ completely ​ product making ​ place. has ​ of ​ other
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Decision ​its extension will ​ in to ​Grocery ​ plastic

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Amazonfresh ​impacting between decisions satisfy as the

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potential ​ existing at ​ complexity are the present ​ equity –

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image it ​ impacted value products customer can ​

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Amazonfresh ​of Grocery ​ of the expand of out ​ the the ​

Grocery of the of needs Amazonfresh present company the the to image

the firm products. and Amazonfresh products adjacent of and wants as the
an should how company innovator in segments and much a present way
stick service is that as in with the where brands a the required, deliverer
can risk the field. deliver the present
of and cannibalization This customers and of products. profits superior is
available one to For
of
are
merchandise mix rather than launching new products to expand the product
line.

Product Line Depth of Grocery

Amazonfresh
These are decisions regarding how many different Stock Keeping Units
(SKU) of a given product. For example Apple has its iPhone in
various colors even though the hardware and software is the same.
For ​of
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AmazonFresh: ​more research ​Rekindling ​on

"Customers ​the Online ​and Value ​Grocery ​Chain"
Market
you can checkout the ​Value Chain Analysis
Product - Broad Recommendations
1. Grocery Amazonfresh can stop selling the products that are either not
profitable or not creating enough differentiation from the existing 2. Grocery

increasing 3. Grocery 4. Grocery ​ Place Rekindling

Place or Distribution customization products, product products. assortment

Distribution logistics, Amazonfresh Amazonfresh Amazonfresh their & ​ –

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Marketing options ​ T​ market ​ Distribution ​ providing

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using Channel ​ C​ at position.
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can can can channels ​ the ​ the ​product ​ try think

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introduce customers point ​ is ​ to a ​ set reposition of fulfill

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Online ​of line ​ ways ​ of sales, ​ a – processes

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information various new ​ breadth, ​ -​ reducing how the

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brand ​Channels ​ purposes ​ features products

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length, through ​
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Grocery ​in about purchase ​ the and and such ​ from

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existing which the ​ value depth,and lot ​ products as the ​ Grocery

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– size product ​ easy can existing ​ -​ thus ​ Market

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4Ps ​be availability , providing ​ after Amazonfresh added

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enabling line brands ​ sales ​ or ​

in ​to it product of within can services existing opportunities the

AmazonFresh: Case ​delivers strive products
one quality and brands to line. its establish installation for products
assurance. to that end individual help consumers a them in consolidating
and whole new product line.
to the customers.
, enabling product
customers to buy
services, providing extensive
DESIGNING CHANNELS OF DISTRIBUTION FOR
GROCERY AMAZONFRESH
There are two major Channel of Distribution related decision criteria –

1. Channel Design
Grocery
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Amazonfresh needs to choose whether it wants to implement a distribution

system which is – Direct, Indirect, or Both. The
channel design decision involves - understanding of customer value
proposition, current customer convenience points, length breadth
and depth of Grocery Amazonfresh product line, and competitors’
distribution systems.
Direct Distribution System – Grocery Amazonfresh putting its own direct
distribution channel and reach directly to the customers. It can
be through opening its own stores or just selling all the products online.
Indirect Distribution System – Grocery Amazonfresh including channel
partners such as wholesalers, retailers, logistics companies, and
distribution agents.
Hybrid Distribution System – Grocery Amazonfresh should implement a
hybrid model where the critical aspect of distribution system are
managed by Grocery Amazonfresh, and secondary functions such as
logistics, warehousing, store management etc are delegated to
various channel partners.

2. Channel Management
Channel management is about managing various power centers within the
delivery system and managing them based on bargaining
power of each player in the value chain. The channel management from
marketing perspective can be done considering three critical
aspects –
Per Unit Cost of Stocking – If the cost is high then Grocery Amazonfresh
needs channel partners which can pool in resources. Otherwise Grocery
Customer awareness Market needs new ​For ​Porter
Promotion ​Promotion Amazonfresh. Grocery price markets.
more ​of higher Development the Amazonfresh Amazonfresh ​5
​ arket ​research T​ hey or brand
Willingness and Mix product, ​Forces m

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various willingness ​ channel ​ partners ​

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communicate can ​Online p
then company has a strong brand vis a vis channel partners.
market development. If Grocery Amazonfresh
who have know how and skills to expand into
Strategy" you can checkout the
Grocery Market
tools that are at disposal of Grocery
and Direct Marketing.
to customer – existence of the product,
the products, and finally how consumers can
effectively use the products or services.

6M Model of Marketing
Communication Strategy for
Casename
With the increase importance of online advertising and social media role in
product promotion, 6M Model of marketing communication
has become a critical marketing tool in hands of marketing manager and
promotion strategist to measure marketing efforts impact. The 6M
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of Marketing Communication Strategy Model are –

Market – The target segment – current or potential, at which the marketing
communication efforts are aimed at.
Mission – What are the goals and Key Performance Indicators of the
marketing communication strategy.
Message – What are the specific aspects – brand awareness, product
features etc, that Grocery Amazonfresh wants to communicate to
its target customers.
Media – Which are the most effective media vehicle that Grocery
Amazonfresh can use to convey its message to its target market.
Money – Like all other organizations, Grocery Amazonfresh has limited
marketing resources so it has to figure out how it needs to spend
to get the best outcome based on specified objectives.
Measurement – How is the promotion campaign impact is measured. It can
vary from brand to brand within the organization. For
example – new product campaign can be measured on spreading brand
awareness, while existing product marketing campaign can be
measured on repeat purchase or product recall.

Pricing – 4Ps of Marketing

AmazonFresh: Rekindling the
Online ​Pricing pricing customer ​Cost ​Under profit losses long
Value ​Value and ​Market ​Grocery foothold intangible term it Base
in cost depends is wants Amazonfresh ​Base b ​ illions in a is ​Base
strategy. highly the Pricing based willing ​Penetration e ​ arn. benefits

T​Grocery ​
segment. ​ can upon ​ Pricing ​pricing complex

h​ is ​
is to ​Pricing ​In provide a ​ pay ​ C​ can a the pricing with

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highly ​ strategy ​ for employ other activity ​ lower a Grocery
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strategy clear competitive ​ 3Ps ​ Pricing ​– this prices

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and ​ Market ​ Grocery understanding of ​ Amazonfresh

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pricing ​ marketing which we ​ and ​ will strategy

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Amazonfresh ​ sustain is strategy cover ​ based ​ –​

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launch ​ individual demand pricing given and ​ perception out

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product strategy of ​ of competitive takes service ​ what value.

Conceptually context. to either may goes provider produce It inculcates not

pressures. into at loss be who perceived pricing the feasible. or put product
is at not decisions. the very value backed For number and low example is
margin put To the by a on a private maximum large markup Uber both to
get extend equity running
tangible
a based price and on a

Market Skimming Pricing

For certain well established brands, Grocery Amazonfresh can increase the
prices as customers can pay higher price.

Good Value Pricing

Offering right mix of product features, quality, and service combination at
fair price. For example offering a limited frill option - customers
can
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have initial product experience at an accessible price. GoPro use this
strategy extensively.

Competition Based Pricing

The pricing strategy is based on the competition in the market. Under this
strategy Grocery Amazonfresh focus is to match the prices of
the competitors and focus on reducing the cost of operations to increase
profitability.
PRICING RECOMMENDATION
Based on the evidences at hand – we can choose the following pricing
strategy
High Brand Awareness – The brand of Grocery Amazonfresh is well
respected in the market so it can fetch a slight premium over the
other competitive brands.
Innovative Product – With advanced features the product is perceived as
innovative in the current market context. A slight premium price
will not only emphasize the features of the products but also stops other
players entering into the present segment. A high premium
price may attract new entrants and thus lower the profitability.
For more research on "Bargaining Power of
Suppliers & Buyers" you can checkout the ​Porter 5
Forces Analysis of AmazonFresh: Rekindling the
Online Grocery Market
Email ​Email Email using ​Search ​Another advertisements
relevant regarding ​For ​Analysis ​more ​its Marketing Marketing
advertising popular kiosks, it.

AmazonFresh: ​Engine r​ esearch ​ Marketing

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interested ​Market b can ​

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References for AmazonFresh: Rekindling the Online

Grocery Market Four (4) P's of Marketing Mix
Analysis
AmazonFresh: Rekindling the Online Grocery Market , Harvard Business
Review Case Study. Published by HBR Publications.
Kotler & Armstrong (2017) "Principles of Marketing Management
Management", Published by Pearson Publications.

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