DIGITAL MARKETING

DIGITAL ASSIGNMENT-2

SUBMITTED BY,

RAMYA JB (19MBA0015)

SABARISHH M (19MBA0018)

MUTHU KUMARASWAMY M(19MBA0056)

PAVITHRA G (19MBA0091)
What is the main decision problem in the case and other secondary decisions?

The administration had confronted various difficulties since the commencement

of this online basic food item gathering however there has been nobody in the
market that has been successful here on a public scale. Amazon Fresh had been
started by Amazon in the year 2007 and just about five years have passed since
the administration of the organization has tried the plan of action of this online
merchant.
This basic food item online retail had been tried by the organization in Seattle
and in the course of recent years the organization has gained huge ground. This
case accentuates over the working abilities and the plan of action of the
organization which have been the strength of the organization to contend with
the monster players Safeway and Wal-Mart. Notwithstanding, the following
stage should be chosen by the administration of the organization.

The organization has two choices that are both to refine the current plan of
action and revise its centres zones and the second option accessible to the
administration of the organization is to extend the retail basic food item
business into another city. A scope of elements have been considered to
examine the following move of the organization, for example, the area
procedure, measure methodology, quality administration, stock administration
and inventory network the executives.
           
What are the different courses of action to solve the main problem and the
secondary problems?
Model A
People still aren’t even aware of Amazon Fresh despite of the work done by
Amazon. To make it better, they'll want to think about some creative tactical
changes to their model to form it easier to use. For instance, if Amazon Fresh
wants to usher in more business, they might combine their Prime and Fresh
subscriptions supported a monthly or yearly basis to assist consumers save and
drive them to get hooked on more of Amazon’s services. Having an inherent
value added for the customer through core aspects of the Fresh service will help
them usher in more customers and keep the old ones. Fresh could also offer free
shipping with orders over a set amount, or maybe partner with a web coupon
site like Groupon to market Amazon Fresh deals. To go ahead with this kind of
options, Amazon should hit the books and find out what people like to pay. This
is an unavoidable native issue with subscription services, as Amazon has got to
quantify what proportion their relationship to the customer is worth. Too high
and they’ll be missing out on an honest portion of the market, too low and
therefore the more affluent families won’t think it’s worth their time and
money. Otherwise, getting the message out there for Fresh are some things that
must happen- and shortly if they need to form a profit. Getting those coupons
out there's just one of the various ways Amazon can use marketing to reinforce
their retailing. They currently offer same day and next day delivery, which
could even be extended through their new Amazon Dash Buttons. Having
something that targets consumer habits just like the Dash button could integrate
their services more into consumer’s lives.

Model B
Amazon Fresh should expand into NY city because there's an incredible amount
of opportunity there. Within the short run, locating in LA. would decrease initial
costs, being a couple of states far away from Seattle Washington. However,
they’d be missing a fantastic opportunity if they didn’t. NY is sort of potentially
the worst city to travel shopping in. large stores and fancy places to travel
makes leaving your home a nightmare. There would be incredible amounts of
individuals lining up to use Amazon’s grocery service. The congestion of
the latest York City is world-renowned, however, there are other ways than
simply sitting through-traffic during a big refrigerated truck all day to urge
groceries from place to put, Amazon could employ the utilization of messengers
for smaller orders urging things going, faster. Larger orders would require a
much bigger vehicle, which Amazon could switch to a hybrid, or electric cars to
save lots of on gas and promote the environmentally friendly business at an
equivalent time. Amazon has got to specialize in some factors to urge them to
get into NYC. One important factor is competition. Competitors would be Fresh
Direct, Peapod, and Instacart. However, Bloomberg Business did a comparison
of all four services and determined that Amazon Fresh would actually be the
most cost-effective within the area. They also got to get their delivery system so
as, because handling traffic also will be a problem. As stated earlier, they can
use messengers and hybrid/electric vehicles, or they will have local delivery
stations all around the city to attenuate delivery time.

Model C
First, the pros, and cons for Amazon Fresh are analyzed if it stays in Seattle and
amends its Business model or launches in another city like L.A. and NY. 
Staying in Seattle
The corporate had many advantages by launching Amazon Fresh in
Seattle. It had been possible for the corporate to partner with the local
merchants to sell the products of the corporate and therefore, the purchases were
motivated by the affluent customers of the corporate as they were ready to
source the food locally. Furthermore, the corporate had established operations
like distribution centres, suppliers, delivery, routing, and scheduling. Over five
years of time, the corporate had achieved great profitability and so, the business
model of the corporate had been successfully tested with impressive results.
However, the negatives related to this feature are that the corporate wouldn't be
ready to grow because the margins are relatively low. The threat of competitors
like Safeway and Walmart also are increasing within the area. Furthermore, the
corporate has been also facing an equivalent fay delivery deadline recently.
Therefore, long-term survival won't be possible if the corporate does not work
on its business model if it plans to remain in Seattle. 
Expanding to Second City
There are many advantages for the corporate to expand to a second city. By
doing this, the management of the corporate would be ready to design different
market-specific aspects that the corporate could transfer to the new market
during which it enters. The corporate would be ready to use the secondary
market to check the experimentation that has been performed by the corporate
in Seattle. In this way, the management of the corporate would be ready to
analyze the impact upon the business. The market share of the corporate would
also expand; when it expands into another city and therefore, brand awareness
would also enhance. However, the negatives related to this feature are that the
corporate will need to build up its operations from the scratch, and it's getting to
take around 1 year for the corporate. The corporate also will need to lease a
grocery warehouse near the town centre. Finally, the establishment of the
operations during a completely different city would require an outsized capital
investment. The choices available to Amazon Fresh are NY and LA, which are
traffic-congested and far large cities.

What is the best course of action? Why?

They’re one of the world’s largest online retailers, and grocery was a naturally
subsequent step. With consistently good customer review ratings and an ever-
increasing market reach, Amazon is probably going to continue expanding from
here into god knows where. The management of the corporate is suggested to
enter another or maybe third city like NY or LA. to determine its operations.
Currently, the margins of the corporate and its market share are low in Seattle
and therefore, the company has been ready to achieve just a 5% of the entire
household market in Seattle. Therefore, to grow and broaden the dimensions
and market share of the corporate, it must enter another city and test the
business model there. This is often getting to cause increased sales for the
corporate.  NYC will bring an excellent test city to point out Amazon’s market
resilience and creativity. This basically means Amazon may need a troublesome
go of it within the short run with traffic/delivery obstacles and competition, but
determinedly and with artistic strategies, they will roll in the hay. These
practices will help Amazon in entering more markets, as other cities nationally
with similar issues. Fresh has done well in Seattle so far, so it had been
definitely time to diversify to other market areas.