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Strategic Marketing for Online Distribution

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The Discussion explores online distribution. First, check out the following news articles on Amazon's online grocery service.
http://www.cnbc.com/id/100916844
http://www.canadianbusiness.com/companies-and-industries/a-new-threat-for-big-grocery-2/
Then, answer the following questions:
1. What do you think of Amazon's move to online grocery delivery? Does it give the company a competitive advantage?
2. Identify one of your favorite grocery stores. What attracts you to it? Can you think of anything the store has done to draw your patronage and stop you from buying online? Is there anything further they could do to retain your loyalty?

A survey from MARC Research found that among a variety of holiday specials and shopping tactics, store coupons and free-shipping offers were the two incentives most used by shoppers during the fourth-quarter 2009 holiday-shopping season.
Read more: http://www.marketingprofs.com/charts/2010/3542/shoppers-seek-coupons-and-free-shipping-offers#ixzz28gf7i57W
In addition, read the article below on the importance of "free" in online commerce:
http://www.marketingprofs.com/short-articles/2555/the-importance-of-free#ixzz28gdt7f4u
Based on these articles and other readings you may find, what do you think of the "free" offers used by online retailers or marketer? Do you think the "free" offers would be more effective than coupons? Use some concepts you learned from this module, as well as other modules to discuss these issues.

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Solution Preview

Then, answer the following questions:
1. What do you think of Amazon's move to online grocery delivery? Does it give the company a competitive advantage?

It doesn't give the company a competitive advantage in regard to competing against grocers but it does give them more opportunities to gain access to consumers who otherwise may have not traditionally shopped online. The objective for Amazon isn't to "compete" with grocers but to gain a foothold into the households of grocery shoppers who are nontraditional online shoppers, and this will allow Amazon to potentially sell more higher-end products such as electronics and other items sold by Amazon to these customers. Amazon could ...

Solution Summary

Strategic marketing for an online distribution is examined. Amazon is analyzed.

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