The Amazon Echo Final Project · Douglas Hofstadter (Amazon, 2014). The company’s mission...

TheAmazonEcho

AdvertisingStrategySpring2016

Group2

KaraBraun,AlexCarter,RileyCollins,MaxwellSanders,BryanaTianga

AdvertisingStrategy:AmazonEcho 2

TableofContents

CoverLetter………………………………………………………………………..3

ExecutiveSummary…………………………………………………………….4

ProblemStatement……………………………………………………………..6

SituationAnalysis……………………………………………………………….7

ProblemsandOpportunitiesAnalysis……………………………......24

OpportunitiesRecommendation………………………………………..27

MarketingObjectives………………………………………………………...28

BrandMarketingStrategy………………………………………………....28

TargetMarketProfile………………………………………………………..29

ProductPositioningStatement…………………………………………..32

PositioningStatementJustification…………………………………….33

CommunicationObjectives……………………………………………......34

CommunicationStrategy…………………………………………………...34

IMCStrategy……………………………………………………………………..35

PromotionsTactics…………………………………………………………...37

MeasurementandEvaluation…………………………………………….42

CreativeBrief……………………………………………………………………44

Bibliography……………………………………………………………………..45


CoverLetterAMAZON.COM,Inc.ATTN:Mr.JeffreyP.Bezos,Chairman PresidentandCEO410TerryAveNSeattle,WA98109-5210DearMr.Bezos,GreetingsfromtheUniversityofFloridainGainesville,Florida,andtheundergraduateclassinAdvertisingStrategy!InJanuary2016,ourcourseinstructorpresentedherclasswiththechallengeofproposingaplanforbuildingsharefortheAmazonEchointheinteractivepersonalassistant(IPA)industry.Atthetime,themajorityofusknewlittleabouttheproduct,butovertimewehavebecomemoreknowledgeableaboutitscapabilityandpotential.Wehavededicatedthespring2016terminseriousconsiderationofstrategicdirectionstheAmazonEchobrandcouldpursue.OursuggestionsarefocusedontakingbetteradvantageofthestrongbrandpowerandconsumertrustinAmazontodrivesalesoftheEchoandhelpAmazongrowtheirmarketsharewithintheIPAcategory.Inaddition,weincludedsuggestionsforapromotionalstrategywehopeyouwillconsiderimplementingfortheEcho.Asprofessionals-in-training,weareproudofthestrategicdirectionsproposedintheplanandbelievethattheyhavepotentialmorebuildingmomentumforthemarketingandpromotionoftheAmazonEchoanditsfamilyofproducts.Thankyouforgivingustheaudiencetoshareourinsightswithyou.Ifyouoryourteamwouldliketodiscussanyoftheideasincludedintheplansbookinmoredetail,Dr.CynthiaMorton([email protected])intheUFDepartmentofAdvertisingwillfacilitatethearrangements.Sincerely,KaraBraunAlexCarterRileyCollinsMaxwellSandersBryanaTianga


ExecutiveSummary

Ourclient,Amazon,islookingtogrowtheirmarketshareintheIntelligent

PersonalAssistantindustrythroughincreasedsalesoftheAmazonEcho.Ourteam,

theRK-BAMGroup,wasassignedwithdesigningastrategycampaignandcreative

brieffortheAmazonEchotoaccomplishthatgoal.Webeganourstrategyby

conductingextensivesecondaryresearchforAmazon.Thissecondaryresearch

includedanalysisofthecompanyAmazonitself,theIPAindustryandits

characteristicsasawhole,theproduct/brandcomponentsoftheEcho,competitors

oftheEcho,consumerbehaviorsandhabitsandtheenvironmentsurroundingthe

Echo.Followingoursecondaryresearch,weusedthosefindingstocreatealistof

observedproblemsandopportunitiesforAmazon.Aftercompilingthatlist,we

recommendedthatAmazontakebetteradvantageofthealready-existingstrong

brandpowerofAmazontopositionitselftoanarrowertargetmarketandinturn

drivesalesoftheEcho.Withinthatrecommendation,wesuggestedAmazon

continueitsintegrationwithoutsidecompaniessuchasUberandSpotifytogivethe

EchoanevengreatercompetitiveadvantageoverotherIPAs.Aftersolidifyingour

problemsandopportunitiesandconductingfurtherresearch,wecompiledalistof

strategicmarketingobjectivesandconstructedatargetmarketprofilebasedonthe

informationwehadgathered.Ourproposedtargetmarketconsistsof25-50year

oldworkingprofessionalsinthemiddletoupperclasswhoaretech-savvy

individualsandefficiencyseekers.Afterestablishingthetargetmarketprofile,we


createdtwopositioningstatementsaimedtowardsthetargetmarketandchosethe

alternativewefeltbestsuitedourobjectives.Followingourpositioningstatement,

wecreatedcommunicationsobjectivesandanintegratedmarketing

communicationsstrategytocomplementthoseobjectives.Wedetailedalistof

promotionaltacticsthatwesuggestedAmazonimplementaspartofasuccessful

campaign.Wethenwrappedupourmediastrategybyexplaininghowwewould

evaluateandmeasuretheeffectivenessofourmediatactics.Inconclusion,we

completedacreativebrieftosummarizethehighlightsofourproposedcampaign

thatwefeelwouldhavegreatsuccessinaccomplishingAmazon’sgoalofincreasing

marketshareintheIPAcategory.


ProblemStatement

Ourclient,Amazon,hasrecentlyenteredtheintelligentpersonalassistant

(IPA)industrywiththereleaseoftheAmazonEcho.WhileAmazonhasalready

establisheditselfasamarketleaderintheonlineretailindustry,itistryingto

expanditsmarketsharewithintheIPAcategory.Inordertobecomeamore

competitivebrandinthisindustry,Amazonneedstodevelopanddifferentiatethe

Echofromtheothercompetitiveproductsinitscategory,suchasApple’sSiri,

Microsoft’sCortanaandGoogle’sGoogleNow.ThegoalisforAmazontoutilizeits

brandpowertoexpandintotheIPAmarketwhilemaintainingloyaltytoits

companyvalues,customersandoverallbusinessplan.


SituationAnalysis

IndustryAnalysis

TheAmazonEchofallsintotheindustryofdigitalassistantsthatisstill

evolvingtothisdate.FromthedigitizationofthecalendarontheoriginalPersonal

DigitalAssistant(PDA)camethetrendofanartificiallyintelligentdigitalassistant

thatkeepstrackofmorethanjustacalendarwiththeuseofIPAtechnology.The

IntelligentPersonalAssistant(IPA)technologythattheEchoutilizesismadeupby

combiningartificialintelligence,userinput,localizationcapabilities,anda

connectiontotheInternettocarryoutservicesforindividuals.

IPAtechnologystartedasatrendthatevolvedovertimeintoanexpected

productfeaturewithnewpersonaltechnologythatisbroughttothegeneralpublic.

TheelectronicsindustryconcerningIPAshowed1.4percentgrowthin2014

reachingavalueof$95,553.8million(MarketLine,2015).Thisgrowthrateis

expectedtoincreaseto19.3%by2019astheindustryhasyettoreachthemature

phaseoftheindustry'slifecycle.ThisgrowthratereflectstheimportanceofIPA

softwarepresenceinconsumertechnologyinregardstoproductinnovationand

differentiationintherapidlygrowingmarket.ThetopindustryplayersareApple

Inc.,GoogleInc.,andMicrosoftCo.withtheirIPA’sSiri,GoogleNow,andCortana,

respectively.ThesethreecompaniesandAmazonarecompetingalongthesame

geographiclevelwithastronginternationalreach.Themarketthatthesefour

companiesshareinregardstotheirIPA’sisonethatiscurrentlyundergoinggrowth


andestablishingitselfasaseparateentityfromthesmartphone/tablet/computer

market.

Siri’sparentcompanyAppleInc.boaststhebestbrandnamerecognitionof

thefourasithasmadeitswayintoeverydayvernacularandhasbecomeapartof

everydayinteractions.Afewfactorsthatcontributetothissuccessincludethe

extensiveproductlinesthatfeatureSiriaswellasbrandloyalty.Siriisalso

consideredtobeenteringthematurationstageoftheproductlifecycleas“she”has

beenonthemarketthelongestandisusedbythevastamountofAppleproduct

owners,alsomakingherthemostadvancedplayerinIPAtechnology.GoogleNow,

theIPAunderGoogleInc.hastheabilitytobeusedacrossseveralplatformswhich

makesitonestepaheadoftheIPAtrendofcreatingaubiquitousexperienceforthe

user.WhilebeinghostedbytheparentcompanyofAlphabetInc.theattention

drawntoGoogleNowislessthanSiributmorethanCortanaandAlexa.Cortana,the

builtinartificialinterfaceinnewMicrosoftWindowsoperatingsystems,

fallstowardstheendofthetopthreeindustryplayersfromthesimplefactthat

“she”isdistributedbyamajoroperatingsystem.Themaindifferencebetween

CortanaandtheotherIPAinterfacesisthatshetakestheinformationtheusergives

herandcreatesadatabaseofpreferences.

TheAmazonEchoiscurrentlythefirstIPAtobeitsownstandaloneproduct

(speaker)thatisattemptingtofindanicheasahandsfreehouseholdaccessory.

Thisproductdifferentiationgivesitacompetitiveadvantageasitattemptstocreate


consumerawarenessaswellasaidthetransitionintohomeautomation

(Technologytell,2016).

CompanyAnalysis

Amazonhasbeenmakinghistorysincethemid-1990s,whenfounderand

CEOJeffBezosdecideditwastimetorevolutionizethewaypeopleshoppedand

readbooks.AmazonheadquartersbeganoperatingfromBezos’garagein1995,

wherehesoldthecompany’sfirstbook:FluidConcepts&CreativeAnalogiesby

DouglasHofstadter(Amazon,2014).Thecompany’smissionstatementontheir

websitereads“ourvisionistobeearth'smostcustomercentriccompany;tobuilda

placewherepeoplecancometofindanddiscoveranythingtheymightwanttobuy

online.”JeffBezosconsistentlyreferstothemissionstatementandusesitasa

guidelinewhenmakingmanyofthebusinessdecisionsforthecompany.Amazon

hasbaseditsleadershipprinciplesonworkinghard,astheydescribeitscommunity

asagroupofpioneerswhoare“continuallyraisingthebaranddrivingtheirteams

todeliverhigh-qualityproducts,servicesandprocesses”(Amazon,2014).

Bytheendof1995,Amazonhadshippedorderstoall50U.S.statesand45

countriesworldwide,andcontinuedtoexpandrapidlyasacompany.Inthesame

year,thenumberofpeoplewhousedtheInternetwasroughly16million

(Wasserman,2012).Attheageof31,Bezosalreadyunderstoodthepowerofthe

Internet,itsimpactonconsumerbehaviorandhowimportantitwastoappealtoa

massaudienceofconsumers.Today,morethan1.7billionpeopleconnectdailyto


theInternetandroughlyoneoutofeveryfourhumansontheplanethaveaccessto

onlinemediastreaming(Wasserman,2012).

Asanentrepreneurandinnovator,JeffBezosunderstoodtwofundamental

concepts.ThefirstonebeingthattheInternetmadeitpossibletoreachanaudience

fargreaterthantheaudiencestoreretailingcouldreach.Geographywasnotan

issuewhenanInternetconnectionandacomputermadeitpossibleforanyonein

theworldtopurchaseanitemfromthecomfortoftheirhome,anadvantagethatan

in-storelocationcouldneverencompass.ThesecondconceptBezosunderstoodwas

howtheInternetallowedmerchantstobettercategorizeindividualcustomers

throughtheirshoppinghabits.

Bytheyear1999,Amazonhadservedtenmillionclients.InDecemberofthat

year,JeffBezoswaschosenasTimemagazine's“PersonoftheYear”(Amazon,

2014).Thebeginningofthe21stcenturymarkedatimeinwhichAmazonwould

expanditscapabilitiesbyintroducingtheKindleFireandKindleTouch3G.In2002,

itlaunchedAmazon.cainCanada,followedbytheintroductionofthewell-known

AmazonPrimein2005,whichallowedcustomerstoreceivefreeexpressshipping

bysubscribingtotheprogram.

Twoyearsafterthenewprogramwasintroducedtoitsclients,Amazon

Primewentinternational,becomingavailableinJapan,GermanyandtheUnited

Kingdom,aswellastheUnitedStates.Amazonhadnowestablisheditselfasaleader

intheecommerceworld,andin


2013PresidentObamaconfirmedthatwhenhevisitedtheAmazonCenterin

TennesseetopraiseAmazonas“agreatexampleofwhat’spossible”(Amazon,

2014).In2014,AmazonlaunchedasetofnewdevicesincludingtheFireTV,FireTV

StickandFirePhonetocompetemorecloselywithcompaniessuchasAppleand

Google.ThelatestmajortechnologyproducttobereleasedbyAmazonisthe

AmazonEcho–arevolutionaryartificiallyintelligentpersonalassistant(IPA)

releasedin2014,launchingAmazonintothedigitalvoiceassistantindustry.

Theextensivevarietyofservices,productsandprogramsthatAmazonoffers

toitsconsumershavecontributedtoAmazonbeingamarketleaderintheonline

retailindustryinseveralmajorcategoriesacrosstheboard.Inthelastquarterof

2015,thestockmarketvalueforAmazonrose2.6%andsurpassedWal-mart,its

biggestcompetitor,whosestockmarketvaluedeclined0.42%overthesameperiod

(Hoovers,2015).Inaddition,whileexactmarketsharenumbersareunavailable,

Amazonprovedtohavethelargestrevenuegrowthin2015aswell.Amazon’s

20.26%revenuegrowthforthe12-monthperiodexceedsthatofitscompetitors,as

Wal-martsawa0.05%growthandApplesawa17.68%growth(Hoovers,2015).

Lastly,whileWal-martexceedsAmazon’soverallcompanysalesfor2015with

$485.65billion,theyhadonlyjustover$1billioninonlinesales,comparedto

Amazon’s$107.01billion(Hoovers,2015).However,Jet.comisasubscription-based

onlinewholesalerthatisontheriseandwillsoonbegintakingmarketshareaway

fromAmazonasthecompanyplanstohave15millionpayingmembersby2020

(Tuttle,2015).


Amazonhasemergedasthelargeste-commercewebsiteintheUnitedStates

thatimportsandexportsgoodsallaroundtheworld(Bollinger,2015).The

company’sfocusiscustomerserviceandcustomersatisfaction,withdistribution

locationsin28statesintheU.S.alone,allowingAmazontostayloyaltotheir

promisedquickshippinganddeliverytimes(Amazon,2014).Inaddition,Amazon

continuestobuilduponthevarietyofproductsandservicestheyoffer.The

companyhasnowintroducedane-storefrontplatform,whichallowspeopleand

companiestoselltheirproductsthroughAmazon’swebsite,aswellas

entertainmentcontentlikee-books,musicstreaming,movies,TVshowsandtheir

ownappstore.Thekindofproductstheyproviderangesfromgeneralgoodssuchas

batteriesandworkoutequipmenttomobilephonesandtablets,andevenhas

branchedintothegrocerycategoryinrecentyears.

ThecurrentU.S.headquartersforAmazonconsistsof14buildingslocatedin

Seattle,Washington.ThemajorityofallAmazonoperationsareconductedonline,

buttheyhaveestablishedhundredsoffulfillmentcentersacrossthenationin

additiontothe28U.S.distributionlocations.Thesecentersprovidewarehousingfor

productsandorder-fulfillmentoperationsforthird-partysellers.Eachwarehouse

hashundredsofemployeesthatareresponsiblefortaskssuchasunpackingand

inspectinggoods,placinggoodsinstorageandrecordingtheirlocationandusing

computerrecordedlocationstopackageandprepareproductsforshipping

(Amazon,2014).


Beinganonline-onlyretailer,Amazonhasonlyafractionofthenumberof

employeesthatmanyofitscompetitorshave.However,thesuccessthatAmazonhas

hadasacompanybeginswithjustasmallhandfulofpersonnelthatworkclosely

withCEOJeffBezo.Bezos'sright-handmanisVicePresidentBrianT.Olsavsky.He

hasbeenservingasVP,FinanceandCFOfortheGlobalConsumerbusinesssince

2014,whichrequireshimtooverseeAmazon’soverallfinancialactivities(ex:

controllership,tax,treasury,analysis,investorrelations,internalauditandfinancial

operations).Additionally,heoverseesthefinanceteamsupportingAmazon.com

websites,merchantplatforms,andfulfillmentoperationsandsubsidiaries

(Bloomberg.com,2016).OthernotablepersonnelincludeRichWilliams(Executive

VicePresident),LesKruger(MarketingDirector),AndrewDickinson(Brand

Director)andJean-LucNahon(Director,MarketingAutomationandGlobalBrand

Marketing)(Amazon,2015).

Product/BrandAnalysis

Inatimewhentechnologyisadvancingsorapidly,it’snosurprisethat

Amazonhascomeoutwithitsnewdigitalvoiceassistant,theAmazonEcho.Amazon

islookingtopositiontheEchoasanall-aroundpersonalassistantthatcanbe

incorporatedintoallaspectsoftheuser’slife,andismorecomparabletoa

householdappliancethanatypicalsmartphoneaccessory.TheEchoisasteptoward

atimewhenelectronicscancompleteanytaskforusattheclickofabutton(orin

theEcho’scase,thecallofaname).TheAmazonEchoisasleekblackcylindrical


speakerthatstands9.25inchestall.Itisadvertisedtoanswerto“Alexa”,“Amazon”,

or“Echo”fromanywhereinaroom.Amazonhascreatedafreecompanionappthat

allowsitsuserstoconnecttheirsmartphonetotheEchoandmaketheirexperience

evenmoreconvenient(Amazon,2016).

TheEchocanplaymusic,reporttrafficandweather,giveinformationon

nearbybusinesses,accessGooglecalendar,createlists,controllights,providesports

scores,orderpizza,andevenrequestanUber.TheEchousesnoise-cancelling

technologytobeabletohearitsnamebeingcalledevenwhileitplaysmusic.

Amazon.comissellingtheEchofor$179.99,anditisalsobeingsoldbyover3,000

retaillocationssuchasToysRUs,QVC,Sears,andStaples.Amazonhasalsorecently

addedtheDotandTaptoitslistofAlexa-enableddevices(Amazon,2016).

AsfortheAmazon’smarketingstrategy,ithasusedtheInternetformostof

thepromotionoftheEcho,releasingavideooftheAmazonEchobeingusedbya

suburbanfamily,demonstratingitsfeaturesandcapabilities,andduringthe2016

SuperBowl,Amazonpaidanestimated$8millionforaone-minutecommercial.

CompetitiveAnalysis

AccordingtotheWallStreetJournal,“AlexaisAmazon.com'sanswerto

Apple'sSiri,GoogleNowandMicrosoft'sCortana,whichallcomestandardwith

differentsmartphones”(2016).TheAmazonEcho’sdirectcompetitorsareother

deviceswithintheIPAcategoryincludingApple'sSiri,Google'sGoogleNow,and


Microsoft'sCortana.Whilethemarketisstillrapidlyexpanding,theEcho’sbiggest

threatcanbenarroweddowntoApple’sSiri.

AmazonEcho’sgreatestdirectcompetitorisAppleInc.withSiri,anIPAthat

answerstovoice-activatedcommands,controlsnumerousAppledevicesandassists

withtheusageofvariousappswithatouchofabuttonthathasbeenincludedin

everyiPhoneiterationsincetheiPhone4s.ReleasedinOctober2011,Siribecamean

integralpartinseveraliPhoneusersday-todaylives.Sirimadesuchanimpactthat

duringSpring2015CommencementattheUniversityofFlorida,PresidentKent

Fuchsawarded'her'anhonoraryBachelorofArtsinHumanity.Sheexcelsin

understandingvariouslanguagesandisconnectedtootherAppleproducts.AP’sBig

Storystates“thenewAppleTVcouldserveasahubforSiritocontrollamps,

thermostatsandother"smart"appliances,usingApple'sHomeKittechnology”

(2015).

AppleTVrequiresremoteactivationinwhichtheusermustuseaphysical

remoteorphoneapplicationinordertocontroltheprogram.Withtheremote,Siri

isabletoperformclosetoalloftheactionsAlexaisabletoperform.Thedifference

betweenAppleTVusersandEchousersisrequestsphysicallytakeplaceonascreen

forAppleuserswhiletheAmazonEchousesaBluetoothconnectionwithan

applicationonadevice.

WhiletheyarenotfromlargeparentcompanieslikeGoogleorApple,there

areothercompetitorsthatarealreadyinthesmarthomeIPA.IveeVoiceandLG’s

SmartThinQHubarebothtargetingthesoftwareproblemsthattheAmazonEcho


failedtoinclude.Forexample,multi-roomsupportandcontactingemergency

servicesarebothfeaturesthatarebeingadvertisedasbeingavailablewhentheIvee

Voiceisavailableforpurchase.

ConsumerAnalysis

Baseduponananalysisofthedata,individualsaged35-50intheupper

middleclassthatareadaptabletonewtechnologiesshouldbethefocusinthe

Echo’spositioning.ThesedemographicsareenforcedbaseduponAmazon’s

previousrelationshiptothissegmentofconsumers.

AccordingtocomScore,62%ofPrimebuyersareage40andolder(Smith,

2015).Atthesametime,75%ofNon-Primebuyersare30orolder.Thechartofthis

dataisillustratedabove.AlongsidetheagedataistheHHI,whichindicatesthat

mostofAmazon’scustomersresideintheupper-middleclass.Accordingtothe

ShullmanResearchCenter,theaverageHHIofcustomersis$89,000,whilethe

nationalaverageis$71,000(MarketingCharts,2013).

InthemostrecentSuperBowl,Amazonairedaone-minuteadthatpromotedthe

newAmazonEchowithitscapabilitieswithinapartysetting.Becausethebest

potentialdemographicisage35andabove,thecelebritieschosenintheadseemed

tofitwell.AlecBaldwin,DanMarino,andMissyElliottareallcelebritiesthatwere

relevantduringthe90sandearly2000sthattheolderagedemographiccanrelate

to.However,thevarietyofcelebritiesshowedaninabilityforAmazontodefinetheir

targetaudiencewithinthe35andolderdemographic.


Amazonhasthe#1perceivedbrandaccordingtobrandindexessince2013.

Amazonhasanimpeccablereputationandshouldutilizethisinformationinthe

brandingoftheEcho(YouGovBrandIndex,2015).ThetaskforAmazonEchoisto

linkitselfasbothaecommercedistributorandatechnologydevelopmentcompany.

TheEchocanserveasasmarteco-systemthatgivescontroloverthedigital

platformssuchascars,computers,appliances,homefixtures,andotherdevices,

whileatthesametimeconnectingtoAmazon’sonlineabilitiesofallowingeasy

purchases.Thisisanattractiveoptiontothosetryingtosimplifytheirdaily

routines.Thepeopleassociatedwiththisattemptatsimplificationwouldbe

workingprofessionalsthatwanttooptimizetheirdowntime.

AsmoreconsumerspossesssmartphonestheEcho’sabilitytoreachmore

marketsbecomesareality.Thereare1.6billionsmartphonesworldwide,whichis

expectedtogrowto1.9billionby2020(Luk,2015).Thisisimportantbecause

smartphonesarecrucialinthedailylivesofconsumers,andneedtohave

synchronizationwiththeEcho.

Macro-EnvironmentalAnalysis

Legal

Undersection102oftheCopyrightAct,names,titles,phrases,and

expressionsarenotprotected,whichincludesthename“AmazonEcho.”Thisisalso

preventsAmazonfromcopyrightingtheAmazonEchoasatalkingdevice

(copyright.gov,2015).Onlyoriginalauthorshipofideas,liketheproductitself,


includingitsshapeandfeaturesoftheEcho,areprotected.Thetermsandconditions

ofuseforconsumersisissuedbyAmazonDigitalServiceLLC,andwhoseservice

legalagreementrequiresuserstohaveawirelessinternetconnection,thatusers

controltheAmazonEchowithhumanspeech,andthattheAmazonEchoistobe

referredtoasAlexa.Additionally,Amazonreservestherighttochange,suspend,

anddiscontinueanyEchosoftwareorhardwarepartswithoutnotifyingtheuser,as

wellasterminateauser’srighttousetheproductiftheyviolatethetermsand

conditions.Inregardtodisputesandbindingarbitration,“anydisputeorclaim

arisingfromorrelatingtothisAgreement,andAmazonEcho,ortheEchoSoftware

issubjecttothebindingarbitration,governinglaw,disclaimerofwarranties,

limitationofliability,andallothertermsintheAmazon.comConditionsofUse.”

(Amazontermsandconditions,2016).

Amazonsofarhasfiledagainst1,114individualsforpostingfalseproduct

reviewsorfalsewordsthatwhichareclaimedtobeharmingtheirbusinessand

underminingthetrustandcredibilityofthecompany(Tuttle,2015).InOctoberof

2015,alawsuitwasfiledagainstAmazoninregardtowhetheron-demanddelivery

workersareemployeesofAmazonorindependentcontractors(Besinger,2015).In

Decemberof2013,aclassactionlawsuitwasfiledagainstAmazonbyseveral

publishingcompaniesoverthepricesofeBooksofferedforKindledevices(Amazon

“InformationforeBooksAntitrustSettlement,”2013).


Economic

IntheU.S.,GDPhasrose2.5%sincethebeginningof2016,whilebusiness

spendingisupfromgoinginto2016.Thesefigures,combinedwithfalling

unemploymentratesandgasprices,couldpointtoincreasingconsumerspending

(Kiplinger’sEconomicOutlooks,2016).Byexpandingintothepersonalassistant

category,AmazonisfacingstrongcompetitionwithApple’sSiriandAndroid’s

Cortana,whicharevoiceassistantsfeaturedoncellphonesandtabletdevices.

However,withAmazon’sunveilingoftheirSoftwareDevelopmentKit,developers

nowhavethefreedomtocreatenewservicesbasedaroundhumanspeech

technologies.This$100millioninvestmentfund,knownastheAlexaFund,isgiving

developers,manufacturers,andstart-upstheresourcestocreatetheseinnovative

ideas(Ciaccia,2015).

Tobeunveiledatalaterdate,theAmazon“Fox”willbeasmallerandmore

portablemodeloftheEchotobeofferedatalowerprice,butwithlessofEcho’s

features.OneoftheEcho’smorenotablefeaturesisthemusicstreamingservice

Spotify,whoistheglobalmarketleaderinmusicstreaming,andisadirect

competitorofrivalApple’smusicservices(Lunden,2016).

Social

ThecurrentsocialatmosphereintheUnitedStatessupportstheuseof

integrated,smarttechnologythatisrapidlychangingandevolvinginwayswenever

imagined.GrowingsocialnormsamongAmericanstodaythatinvitethiskindof


technologicalinnovationthattheAmazonEchohastoofferincludeself-isolation,

instantgratification,andrapidadoptionofnewtechnology.Anincreasingnumberof

Americansareusingtechnologyasabufferagainsttheoutsideworldfromthe

comfortoftheirownhomeorresidence.Technologyallowspeopletolimittheir

face-to-facesocialinteractionwithothersasitprovidesameansforentertainment

andthesharingofideasdigitally,aswellasthroughtheautomationofservices.

Consumersarecapableofmakingmoreconnectionswithothersthroughtechnology

thaneverbefore,butareatthesametimemoreisolated(Hampton,2009).

Anothercommonthemeistheideaofhavingeverythingonedesiresallin

oneplace,orall-in-one.CellPhonescontainanappforjustaboutanything,andlarge

companieslikeApplewithcellphones,tablets,computers,andwatches,are

diversifyingandextendingtheirportfoliosintomoreproductlines.Thismakesit

easiertoseeabrandasaone-stop-shopforallyourneedsasaconsumer(Goodson,

2012).

Lastly,thethemeofinstantgratification,especiallyamongmillennialsasthe

one-clickawaygeneration,givestheAmazonEchoaspecialappeal.Itispossibleto

nowtap-to-paytomakepurchases,andtoreceivenews,entertainment,andother

communicationsanywhereviasatellite.Timeshiftingandon-demandlet’s

Americansconsumecontentwheneveritisconvenientforthem.Shippingservices

likeUPSandFedEx,soondronetechnology,allowconsumerstoreceivethese

productsthatsatisfytheirneedsinwithinaday(bostonglobe.com,Muther,2013).

America’sfascinationwithartificialintelligence,andhowitiscapableoflearning


andmakingdecisionsonitsown,makesAmericansopentoitscontinuedevolution,

withthelatestinnovationbeingtheAmazonEcho(“FromScienceFiction…,”2016).

Political

AmazonEchoisthenextstepintechnologythatismoreintegratedinour

personallivesandinourownhome.Thereareconsumerconcernswithprivacy

issuesaboutdatathatitcollectedaboutthemwhileusingAmazonservices(Carroll,

2015).ConsumersmaybehesitanttopurchasetheEchoduetoquestioningwhether

itisaninvasionofprivacy.(inquisitr.com,Croto,2014).Amazonreceivedsome

negativepublicitybecauseoftheirclaimsthattheEchodoesnotinvadeprivacyor

eavesdrop,yettheEchoisalwayslisteningforcuewords(Heyes,2015).

InformationcollectedfromtheAmazonEchoisnotanonymousduetoit

beinglinkedtoaspecificAmazonaccountholder.Theamountoftimethe

informationisstoredisunknown,butbycomparisonApple’sSiristoresinformation

foruptotwoyears;however,aftersixmonthstheaudioisdisconnectedfromthe

accountholderusername(McMillan,2013).Informationisusedforimprovingthe

wayEchounderstandsyou,makinglessmistakeswheninterpretingyourvoice.Itis

capableofrecordingyourplaylists,music,titles,radiostations,andZIPcodefor

unconfirmed“thirdpartyservices.”(Davies,2014).Additionally,itcanrecord

snippetsofconversationasecondbeforeandduringtherequestprocessing,and

thereisnowaytopreventtheEchofromrecordingaudio(Carroll,2015).Oneway

togetaroundthisbyphysicallypressingthemutebuttononthetopoftheEchoto

shutoffthevoiceactivatedtriggersystem(Davies,2014).


Technological

TheEchoiscompatiblewithmusicstreamingservicesacrossallplatforms,

includingthemostrecentadditionofSpotify,butexcludesiTunesandApple

Music.However,theEchocanplaymusicfromtheiTuneslibraryfromaseparate

devicethatisconnectedviaBluetooth.Throughthecloud,Amazoncanremotely

upgradetheEchowithnewfeaturesandvoicecommands.Otherthirdparty

applicationssuchasWeMo,PhilipsHue,Samsung,SmartThings,Wink,Insteon,and

othersarecapableofintegratingtheEchointoyourhomebyadjustinglightsand

switches(Davies,2014).Amazonisevenbringingthisintegrationtotheautomotive

industrywhentheyintroducedtheircollaborationwithFordAutomotivetoletyou

controlyourhousefromyourcarattheCES2016inLasVegas(Goodwin,2016).For

theyoungerdemographicofcollegestudents,Amazonwithalsopartneringwith

Domino’sPizzaandUbertoletyouordertheirservicesjustbyaskingtheEcho

(Eadicicco,2016).

MarketAnalysis

Atrendtowardscloud-basedprocessingcombinedwithtechnologicalproductsthat

canperformtasksoncommandgivestheAmazonEchoauniqueopportunity.The

Echocancapitalizeonincreasedinterestofartificialintelligenceandvoice

recognitionsoftware,increaseduseofstreamingmusicservices,andincreased

desireforhands-freetechnologicalproducts(Horrigan,2008).Inspringof2014,the

electronicsaudioequipmentandaccessoriesindustrycanbeagoodindicatorof


salesfortheAmazonEcho,whichAmazonconsiderstobeinthehomeaudio

speakercategory.Forthiscategory,bothmenandwomenshaveshownaboutthe

samelikelinessofowningelectronicaudioequipment.Byregion,U.S.censusdata

hasshownthatoutofpeopleintheMidwestregion,50.8%ofhouseholdsown

electronicaudioequipment,whichtheisthehighestpercentagejustabovethe

NorthEastat50.3%.Inregardtoincome,ofhouseholdsthatearn$150,000ormore,

66.5%ownelectronicaudioequipment(MRIhandout).


ProblemsandOpportunitiesAnalysis

Problems

1. Privacyconcernsoverhowmuchinformationisactuallycollectedbythe

Echoandhowthatinformationisstored;trustissuesforthoseconsumers

whoaren’ttechnologicallysavvyandarenewadoptersofproductsintheIPA

category.

2. Inabilitytopinpointtargetmarkethasledtoinefficientadvertisingand

productawarenessfortheEcho,whichwasapparentbytheirinabilityto

reachanyspecificsegmentintheirSuperBowlad.

3. TheEchoiscompatiblewithallothermusicstreamingplatformsexceptfor

iTunesandAppleMusic,potentiallyeliminatingalargesegmentofthe

marketthatconsistentlyusesthoseplatforms.

4. CustomerscanonlyunlockalloftheEcho’scapabilitiesiftheyareAmazon

Primemembers,prohibitingnon-Primeusersfromexperiencingthebenefits

oftheEchoinfull.

5. Thereisstrictcompetitionwithinthedigitalvoiceassistantindustryfrom

companieslikeApplewithSiri,MicrosoftwithCortanaandGooglewith

GoogleNow.Additionally,Amazonisfacingdirectcompetitionfromtech

companiesLGandIveewiththeirSmartThinQandIveeVoiceproducts,

whicharesmarthomedevicesjustliketheEcho.Also,Googlereportedlyhas


theirownin-homedigitalassistantintheworks,presentingaformidable

competitortotheEcho.

6. Amazonisoftenviewedsolelyasane-commercecompanyratherthana

technologydevelopmentcompany,whichcanmakeitdifficultforsome

consumerstotrustAmazon’snewfamilyofproductsinaproductcategory

thatisoutsidetheboundsoftheKindleandAmazonFireTV.

Opportunities

1. UtilizingAmazon’sexistingbrandpowerandimageasatrustworthyand

reliablecompany,theirreputationasbeinginnovative,andtheirabilityto

disruptmarketswithnewproducts/servicestopushsalesoftheEchoandits

familyproducts.

2. Increasedinterestin,andacceptanceof,artificialintelligence(AI)

technology,voicerecognitionsoftwareandcloud-basedprocessing

applications;thishasgiventheAmazonEchoamorefavorableand

welcomingreceptionasauniqueproductthatisaculminationofallthree.

3. ContinuedinvestmentinintegratingwithoutsidecompanieslikeUber,

Samsung,FordandDomino’smakestheEchomoreofa“doall”productin

comparisontootherIPA’s.

4. IntegratingtheEchowithmorein-homedevicessuchasgaragedoors,

electronics,appliances,etc.toremaincompetitivewithothersmarthome

devicesenteringthemarket.


5. Developingbrandloyaltythroughsynchronizationofproductsandservices

thatAmazonoffers(AmazonEcho,AmazonPrime,PrimeMusicstreaming,

FireTV,etc.)tocompetewithothertechnologycompanies,suchasAppleand

Microsoft,whoofferthesamesynchronizationabilitiesacrosstheir

platforms.

6. TakingadvantageofthefactthattheEchoisthefirstofitskindamongmajor

techcompetitorstobeastandalonespeaker.


OpportunitiesRecommendation

InorderforAmazontogrowitsmarketsharewithintheintelligentpersonal

assistantcategory,werecommendthatthecompanytakebetteradvantageofthe

already-existingstrongbrandpowerofAmazontopositionitselftoanarrower

targetmarketanddrivesalesoftheEcho.Basedonoursituationanalysis,thereare

opportunitiesthatAmazoncouldcapitalizeontogivethemthisedgeover

competitors.

ForAmazontoemergeasaprimaryplayerintheIPAcategory,we

recommendthatthecompanycontinuetointegratewithexclusiveoutside

companiestomaketheEchoaunique“do-all”product.Bypartneringwith

companieslikeUber,SpotifyandDomino’s,whoalreadyareestablishedbrands

withinayoungerpopulationofusers,Amazonhasalargeopportunitytofurther

engagewithayounger,tech-savvymarketandpositiontheEchotothissegment.

Amazon’shugecustomerbaseandbrandpowerattractstheattentionofoutside

companiesandcreatestheopportunityforbothpartiestomutuallybenefitfroma

partnership.

Whileutilizingtheirbrandpowertointegratewithoutsidecompanies

createsagreatopportunityforAmazontopositiontheEchotothemillennialand

youngerbabyboomermarket,therearerisksthatcomewiththisstrategy.These

risksincludealienatingpotentialusersoftheEchothatusecompetingservicesto

theservicesAmazonchoosestopartnerwith.


MarketingObjectives

1. Toincreasesalesby20%withinayearofthecampaign’slaunch.

2. Toincreasemarketshareby5%intheIPAmarketbytheendofthefiscal

year.

3. ToincreaseAmazonPrimemembershipby10%withinthetargetmarket

duringtheoneyeartimeperiodofthecampaign’slaunch.

BrandMarketingStrategy

Basedonourproblemsandopportunitiesanalysis,Amazonshouldtakefull

advantageoftheirstrongbrandpowertocontinueintegratingwithoutside

companiesandpositionthemselvesmoretowardstheoldermillennialandyounger

babyboomerpopulations.ThetrustworthinessandreliabilityofAmazonasabrand

intheeyesofconsumersalreadycreatestheplatformforsuccessintheIPA

category,andutilizingthatpowertopartnerwithotherpopularcompaniescreates

theopportunityforAmazontoincreasesalesoftheEcho,appealtoawider

customerbaseandultimatelygrowmarketsharewithintheintelligentpersonal

assistantindustry.

Intermsofpricingandproductdistribution,weagreethatAmazon’scurrent

strategiesareoptimalatthispointintime.Beingtheleaderinonlineretailing,

AmazonalreadyprovidesthemostefficientplatformfordistributionfortheEcho,

andonlyaddstothatefficiencybyhavingtheEchoavailableforpurchaseinbrick

andmortarretailerssuchasHomeDepotandSears.Inaddition,thecurrentpricing


AmazonhasforthefamilyofAlexaenabledproductsisoptimalandisapricethat

wewouldnotchangewithourproposedstrategy.

TargetMarketProfile

Therecommendedtargetmarketencompassesmiddletoupperclass

workingprofessionalsbetweentheagesof25to50whoarehighachieversandare

alwayslookingfornewwaystomaketheirbusylivesmoreefficient.Theyuse

innovativetechnologyconstantlyinsearchofnewandbetterwaysofcompleting

dailytaskslikemakinglists,keepingupwiththelatestheadlines,orstreamingtheir

favoritemusicplaylists.PossessinganaverageHHIof$89,000comparedtothe

nationalaverageof$71,000,thismarkethasahigheramountofdiscretionary

incometospendonmoreexpensiveconsumerelectronics.Theseindividualslikethe

ideaofconvenienceandgettingmoredoneinlesstime,andareoftenloyaltoa

smallgroupofbrandsfortheproductsthattheyuse.

Inaddition,whilemanynewtechnologyproductsaredirectedsolelytowards

millennials,researchhasshownthatyoungerbabyboomersareresponsiblefora

largepercentageofonlinetechnologysales(AdAge.com).AsstatedbycomScore,

62%ofAmazonprimemembersareaged40orolder,despitethecommon

misconceptionthatthisgroupisnottechsavvy.Thesestatisticsprovethatthe

youngerboomersegmentofourproposedmarketisalsoimportanttotarget,

especiallybecauseitisPrimeuserswhowillreceivemorebenefitsoftheEcho.


TargetMarketFirst-PersonProfile

“Hi,mynameisTom.Iama30-year-oldcollegegraduatefromtheUniversity

ofFlorida,andIamcurrentlyafinancialadvisorforalargefinancialfirminChicago.

Ihaveaveryhecticschedulebetweenbalancingmynear-60hourworkweek,

maintainingasociallifeandleadingahealthylifestyle.Itisimportanttometostay

onscheduleandbeontimeforwhateverIamdoing,fromanearlymorningwork

meetingtoadinnerwithfriends.Onweekdays,Iwakeupat5:30a.m.tomyalarm

clockandgetinamorningworkoutbeforehavingcoffeeandgettingreadytogointo

theoffice.Duringmymorningtraincommute,IenjoylisteningtothelatestNPR

newsreportfollowedbysomeofmyfavoriteSpotifyplaylists.

Ontheweekends,Ienjoygoingoutwithmyfriendsandco-workersand

occasionallygoingondates.Although,sinceIdonotownavehicle,Ioftenrelyon

Uberformymainmodeofeveningtransportation.Iamsingleandliveonmyownin

aonebedroomapartmentdowntown,andIenjoycookinghealthymealsformyself.

Togetmygroceries,Ioftenuseanonlinedeliveryservicethatbringsmyitemsright

tomydoorstep.However,whenIhavecompanyoveranddon’tfeellikecooking,

orderingapizzaisalwaysthenextbestoption.

AlthoughIdon’tusuallyhavethetimetowatcheverygame,Iamvery

interestedinsportsandlovetokeepupwiththeChicagosportsteamsandmyalma

mater,theFloridaGators.Sincemyworklifeisoftendemanding,itisimportantthat

ImakenotesinmyiPhoneandupdatemycalendarwithworkdeadlines,meetings

andappointmentswithclients.Bothinsideandoutsideofwork,Iconsidermyselfto


beabitofatech-nerd.Iamveryattentivetothelatesttechnologytrendsandalways

wanttobeoneofthefirstonestoadoptanewproduct.WhenIwasincollege,Iwas

fortunateenoughtobeabletoattendtheConsumerElectronicsShowinLasVegas,

andeversincethenIhavehadaninterestinanynewgadgetsonthemarket.Atthis

pointinmylife,Iamveryfocusedonmycareerandreachingmycareergoals,butin

thefutureIcouldseemyselfsettlingdownandstartingafamilyoutsideofthecity.”

PhotobyNanagyeionFlickr.com


ProductPositioningStatementAlternatives

1. To24-50yearoldtech-savvyindividualswhoneedtosatisfyayearningfor

efficiencyintheirhomes,theAmazonEchoistheintelligentpersonal

assistantthatprovideshandsfreetechnologywithinyourhousehold.The

reasonisthatithascloud-based,artificiallyintelligentsoftwarethat

integrateswithyourmobiledevicesandotheroutsidecompaniestoassist

youwithanytaskfromcallinganUberridetoupdatingyourbusycalendar.

Thebrandcharacterisinnovative,uniqueandmodern.Thevalue-based

payoffisconvenienceandsatisfaction.

2. Totheoldermillennialandyoungerbabyboomerpopulationswhoare

lookingforin-homeconveniencefromatrustworthybrand,theAmazon

Echoistheuniqueintelligentpersonalassistantdevicethatprovidesthe

interactivetechnologytoconnectyourhousehold.Thereasonisthatitsvoice

controlled,artificiallyintelligenttechnologygivestheEchotheabilitytohelp

youwithhundredsofdaytodaytasks,suchasorderingyourfavorite

Domino’spizza,addingitemstoyourgrocerylistorstreamingyourlatest

Spotifyplaylist.Thebrandcharacterisintelligent,innovativeandall-

inclusive.Thevalue-basedpayoffisefficiencyandfulfillment.


JustificationforProposition

Wechosetomoveforwardwithourfirstpropositionstatement.Wefeltthat

thisstatementwasthebetterchoicebetweenthetwobecauseitpresentsthemost

importantbenefitsoftheEchotothetargetmarketinaclearandconcisemanner.

Thesecondoption,whilesimilartothefirst,presentsthebenefitinawaythatwas

toogeneraltobepresentedtothetargetmarket.Ourfirstpropositionstatement

makesitclearwhothetargetmarketis,andexplainshowhelpfulthehands-free,

artificiallyintelligentproductcanbeinbringingefficiencytothehousehold.While

thetargetmarketmightbefamiliarwithotherIPAproducts,ourstatement

emphasizeshowtheAmazonEchoisuniqueamongitsclassbyprovidingtheability

tostreamavarietyofmusicplatforms,callanUber,ororderapizzathrougha

simplevoicecommand.Thesupportandattributesinourstatementdescribethe

componentsoftheEchothatwefeelbestappealtothetargetmarketandtheir

needs.


CommunicationsObjectives

1. ToincreaseawarenessoftheEchoby25%tothetargetmarketwithinone

yearofthecampaignlaunch.

2. ToinformthetargetmarketthattheEchoprovidesauniqueabilityto

integratewithotherproductsandmakehomelifemuchmoreefficientforits

users,leadingtoa20%increaseinexposureandbrandrecallwithinone

yearofthecampaignlaunch.

3. Toremindtargetconsumersofthestrongbrandpower,reliabilityand

positivenatureofAmazonasacompany,resultingina15%increasein

consumers’intenttobuywithinoneyearofthecampaign’slaunch.

CommunicationStrategy

ToConvince-25-50yearoldworkingprofessionalswhoneedthelatest

technologyproductstomaketheirhecticlivesmoreefficient

That-theAmazonEchoistheintelligentpersonalassistantthatprovidesthe

ultimatehands-free,artificiallyintelligenttechnologytosatisfyyourin-home

needs

Because-ithasauniqueabilitytointegratewithyourmobiledevicesand

outsidecompaniestoassistyouwithavarietyofhouseholdtasksfrom

callinganUbertostreamingyourfavoriteplaylist.


IMCStrategy

1. ToincreaseawarenessoftheEcho,werecommendAmazonplaceaTVspot

advertisementonmajornetworksthatarecommonlywatchedbyourtarget

market.

• Frequency:Thespotwillruninaprimetimespotonweekdaysanda

late-nightspotonweekends.

• TimeofYear:November1st-April30th,thelastsixmonthsofour

campaign;thisrangeincludestheHolidayseason,whichalsoincludes

BlackFridayandCyberMonday,wherealargepercentageofEchoswere

purchasedlastyear.

2. TobetterinformthetargetmarketabouttheEchoandgenerateinterestin

theproduct,werecommendAmazonpartnerwiththeOlympicstocreatea

videominiseriesonYouTubestarringmajorOlympicathletesandrunning

overthecourseofthe2016SummerOlympicsinRiodeJaneiro.

• Frequency:1-2newvideosperweekoverthecourseoftheOlympics

• Timeofyear:August5th-August21st;thistimerangerunsfromthe

openingceremonyfortheOlympicstotheclosingceremony

3. TostimulateinterestandawarenessoftheEcho,aswellasremindpeopleof

thereliableandpositivenatureofAmazonasabrand,werecommend

Amazonhostanexperientialeventwhereconsumerscanpersonallycome


andtestouttheEcho,interactwithotherconsumersandenjoyfood,prizes

andfun.ThiseventwillgiveconsumersachancetoseehowefficientAlexa

canbethemselvesandwillalsogeneratebuzzabouttheproduct.Inaddition,

wewillrunasalespromotionattheeventtoencouragenewpeopletojoin

PrimeandalreadyexistingmemberstocomplementtheirPrimeexperience

bypurchasinganEcho.

• Frequency:Onedayeventheldinseveralpopularlocationsacrossthe

UnitedStates

• Timeofyear:September-abouthalfwaythroughourcampaign;toraise

awarenessbeforetheholidayseasonbegins

4. Tofurtherincreasebrandconsciousnessamongthetargetmarket,we

recommendAmazonplaceanadintheWallStreetJournalpublication.

• Frequency:eachSaturdayissue

• TimeofYear:May1st–October31st;thefirstsixmonthsofourcampaign


PromotionsTactics

1.TVSpotAdvertisementonNBC,CBS,ABCandFOX

• WerecommendAmazonplacea30-secondtelevisionadonthe“bigfour”

nationalnetworksinaprimetimeslotonweekdaysandalatenightspot

onweekends.Thecommercialwillfeaturefootageofa30-40yearold

askingAlexawhatplacesarehavinggooddrinkdealsthatnight,using

AlexatostreamapartyplaylistwhilegettingreadyandthenusingAlexa

tocallanUbertotakethatpersonouttomeetsomefriends.Theadwill

showtheEchoseveraltimesandwillhaveAmazon’slogoonthescreenat

theend,alongwiththeAmazonwebsiteURLwhereconsumerscan

purchasetheEcho.

o Explanation:WechosetouseaTVspotbecauseitremainsagood

mediumforconsistentlyreachingalargeportionofourtarget

market.ThefourmajornetworksofABC,NBC,CBSandFOXreach

acrossthenationandshownightlynewsreportsandevening

showsthatareviewedbyasignificantsectionofourtarget

audiencethroughouttheweek.Thistacticwillhelpaddressour

firstandsecondcommunicationobjectives,toincreaseawareness

oftheEchoandtohelpinformconsumersoftheunique

capabilitiesoftheEcho.


2.YouTubeMiniVideoSeriesPartneringWithThe2016SummerOlympics

• WerecommendcreatingavideoseriestoaironYouTubeoverthecourse

ofthe2016SummerOlympics.ThisserieswillrunfromAugust5th

(openingceremonies)untilAugust21st(closingceremonies),andwill

featurefootageoffamousOlympicathletesutilizingAlexaindifferent

waysintheirpreparationfortheOlympicgames.Therewillbetwonew

videosreleasedeachweekoverthe17-dayperiod,withatotaloffive

videos.Thevideoswillreflectacomedicandcasualtone,butshowcase

themanywaysAlexacanbeused,evenbythebiggeststarsinsports.

o Explanation:WechosetocreateaYouTubevideoseries

partneredwiththe2016SummerOlympicsbecauseitwillbeone

ofthemostfollowedandwatchedeventsoftheentireyear.

YouTubeisapopularplatformamongourtargetmarket,and

combiningthatwiththefamiliarfacesofsportswillcreateaway

forconsumerstoconnecttheEchowithsuchahighprofileevent.

Theappearanceofsomepeople’sfavoriteathletesusingtheEcho

willestablishconsumertrustinAmazonasabrandaswell.In

addition,theserieswillcreateexcitementaroundtheproductand

inturngeneratebuzzandproductawareness.

3.AmazonEchoExperientialEvent


• WerecommendAmazonhostanexperientialeventatvariouspopulated

citiesaroundtheUnitedStatestohelppromotetheEchoandgive

consumersanopportunitytotryouttheEchobeforepurchasingit.This

eventwillfeatureboothappearancesfromseveralcollaboratorsonthe

Echo,suchasUber,Domino’sandSpotify,whowillsupplycollateral

media.Theeventwillincludefood,drinks,prizesandmorefun,

interactiveactivitiesforattendingconsumers.Inaddition,theeventwill

includesocialmediainteraction,withahashtagonTwitterandInstagram

referencingthelocationofspecificevents(#EchoExperienceOrlando)for

consumerstotrack,andaSnapChatfilterpromotingtheEcho.Toprovide

incentiveforbothPrimemembersandnon-Primemembers,wewillruna

salespromotionattheevent.Fornon-Primemembers,wewillgivethem

aone-timeopportunitytoget$50offofayearPrimemembershipifthey

placeanorderfortheEchoattheevent.ForexistingPrimemembers,we

willalsogivethemaone-timeopportunitytoreceive$50offoftheirnext

yearofPrimeiftheyplaceanEchoorderattheevent.

o Explanation:Theseeventswillhelpaddressallsegmentsofour

communicationstrategy,includingbuildingbrandawareness,

stimulatinginterestintheproduct,informingconsumersofthe

uniquebenefitsoftheEchoandremindingconsumersofthe

strongbrandpower/positivenatureofAmazon.Theywillbe

strategicallyheldincitieswithadensepopulationofthetarget


market.WiththeEchoprimarilybeingane-commerceproduct,

thiseventwillgiveconsumersachancetoexperiencetheEcho

themselvesbeforepurchasing.Inaddition,theopportunityfor

discounts,promotionsandprizeswillprovidefurtherincentivefor

consumerstocometotheeventandjoinPrime.TheTwitterand

Instagramhashtagswillallowindividualstoseeotherconsumers

intheareaattendingtheirevent,andwillalsoallowindividuals

notattendingtotracktheeventandlearnabouttheproduct.The

buzzandthepublicitysurroundingtheeventswillincrease

exposureoftheproductandwillhopefullyencouragemore

membersofthetargetmarkettopurchasetheEcho,oratleast

bringawarenessabouttheproducttoconsumersinthepre-

Holidayseason.

4.WallStreetJournalAd

• WerecommendAmazonplaceanadfortheEchoineverySaturday

publicationoftheWallStreetJournalforthefirstsixmonthsofour

campaign.ThebanneradwillfeatureaphotooftheEcho,theAmazon

URLandtheAmazonlogo,andthepriceoftheproductalongwitha

simplecatchphraseaboutin-homeefficiency.Theadwillappear

followingthebusinesssectionofthenewspaper.


o Explanation:TheWallStreetJournalisanewspaperthatisread

byagoodportionofourtargetmarket,especiallythoseinterested

intechnologyandbusiness.Itisapublicationthathasanational

reach,andsendsoutitslargestpaperonSaturdaymornings.The

ad,thoughsimple,willcatchtheeyeofthosewhoarereading

aboutthelatestbusinessandtechnewsthroughtheword

“efficiency.”Inturn,theadwillstimulateinterestintheproduct

andgeneratebrandawareness.


EvaluationandMeasurement

Werecommendthatanevaluationbeconductedbefore,duringorafterforeach

mediacomponentinourstrategytodeterminetheeffectivenessofeachtactic.

1.ABC,NBC,CBSandFOXTVSpotAd

• WeproposedoingaconcepttestpriortotheTVspotbeingrun.Thiswill

allowustoevaluatetheaccuracyofthecommercialcontentandensure

thatthebenefitsbeingshowcasedareusefulandrelevanttothetarget

market.

• Followingtheairingofthecommercial,weproposeconductingapost-

testtoviewthedifference(ifany)inbrandconsciousnessandmeasure

thelevelofbrandrecallamongthetargetaudience.Inaddition,wewill

comparetheresultsfromthepost-testtotheresultsfromourWallStreet

Journalad,whichranbeforethisinthefirstsixmonthsofthecampaign.

2.YouTubeMiniSeriesDuringthe2016SummerOlympics

• Weproposedoingaconcepttestpriortocreationofthevideoseriesto

gatherwhichathleteappearancesandwhichbenefitswouldresonate

betterwiththetargetaudience;concepttestissuggestedtoalso

determinebudgetallocationandensurethatproductionispossible


• Duringthetimethatthevideosarebeingreleased,weproposedoinga

concurrenttestoftheseriestoevaluateandmeasurehowthetarget

audienceisrespondingtothevideos,ifthereisexcitementsurrounding

theupcomingreleasesandhowmanyviewseachspotisgenerating.

3.EchoExperientialEvent

• Priortotheeventshappeningacrossthecountry,werecommend

conductingaconcepttesttogaugetheconsumerinterestintheeventand

gatherideasthatconsumersmightwanttoseeattheevent.

• Duringtheevent,weproposeconductingaconcurrenttesthalfway

throughtheevent’scompletiontoevaluateconsumerattitudestowards

theproductandintenttobuyaswellasmeasurereach,buzzand

responsesonsocialmedia.

• Followingtheevent,weproposerunningapost-testtoevaluate

consumerperceptionoftheevent,salesnumbersincomparisontobefore

theeventandconsumerattitudestowardsAmazon.

4.WallStreetJournalAd

• PriortotheadrunningintheWallStreetJournal,weproposerunninga

concepttesttoevaluatewhetherthesimplicityoftheadissomethingthat

willbeeffectivetothetargetmarket.


• Aftertheadhasrun,weproposeconductingapost-testtomeasurethe

exposure,effectivenessandrecallofthead,andevaluatehowwellthead

fortheproductworksintheprintmediumcomparedtoothermediums.

CreativeBrief

1. Product/Service:AmazonEcho2. Objective:ToincreasesalesandawarenessoftheEchoandinturnincrease

Amazon’smarketshareintheIPAcategory3. TargetMarket:25-50yearold,middletoupperclassworkingprofessionals

whoaretechsavvyandefficiencyseekers4. Strategy:BycapitalizingonthestrongbrandpowerofAmazonand

positioningtheEchoasahands-freesmartdevicethatcanintegratewithoutsideproductsandbringefficiencywithinthehome,Amazoncansuccessfullyappealtothetargetmarket.

5. Proposition:AmazonEcho—ExperienceEfficiency6. Support:

1. Increasingtrendtowardsartificiallyintelligentandcloud-basedtechnology

2. Uniqueabilitytointegratewithothermobiledevicesandoutsidecompaniestoincreaseefficiency

3. Standalone,hands-freeusegivescompetitiveadvantageoverotherIPAs

7. Competition:OtherproducersofIPA’s,likeApple,Google,Microsoft,Ivee,LGSmartThinkQhub,UbiandMycroftvoicerecognitionsoftware.

8. MandatoryElements:Price,AmazonlogoandEchoproductname,productpicture,productbenefits.

9. ToneofVoice:Convenient,intelligent,innovative,fulfilling10. DesiredConsumerResponse:Wewantourtargetmarkettofeelexcited

abouttheEcho;wewantthemtothinkabouthowinnovativetheEchoisandhowhelpfulitcouldbeinthehome.Wewantthemtotakethesethoughtsandfeelingsfromtheadvertisementsandusethemto‘do’--bylookingupmoreads,visitingAmazon.comtofindoutmoreabouttheEchoandhowtogoaboutpurchasingone.Ultimately,wewantthemtofeelcomfortableandconfidentchoosingtheEchooverotherIPAproductoptionsonthemarket.

11. MediaRequirement:Digitalads,printads,experientialmedia,video,salespromotion,collateralmedia


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