Modeling Marketing Giants Series: Product Strategy
Amazon’s marketing planning began with one thing in mind, BOOKS. Twenty-seven years late, it has considerably evolved to become a case study itself of immeasurable magnitude.
Now a multinational “technology” company, Amazon has surely become a worldwide leader in supply chain logistics, delivery, and returns not just for books, but practically everything from desk lamps to automobiles and their own product of voice-powered home devices.
New horizons have them looking at artificial intelligence, healthcare, and space travel to name a few. To top this off, today, Amazon is publicly trading with a single share price of roughly $3,350 and a market capitalization of $1,690,000,000,000.
Our take: Amazon knows what they’re doing.
You’re looking at a brand that clearly identified customer value and service differentiation, prioritized software interface design, and saw the value of product line length.
Prime – Differentiation
Amazon Prime offers users a unique subscription service which includes 2-day shipping on all Prime items on Amazon’s online store. It combines small discounts and promotions at local Whole Foods Markets as well.
The ordering ease through a Prime subscription is commendable. Between web, mobile, and third-party device checkout, the process is lightning fast even on 3G. Ordering and receiving a delivery from Amazon the next morning has become standard with their volume of distribution centers near major metros and cities.
Delivery and shipping are provided at a top of the line level. Market-leading to say the least. Returns are always accepted with haste as refunds are provided immediately into your account or back onto the customer’s credit card.
The top of the line Prime-customer service is accentuated by their unique value proposition and service differentiation.
amazon.com – Design
Amazon’s website interface has come a long way from its early days as well. Originally consisting of simple checkout and a shopping cart filled with new and used novels, or school textbooks, the amazon.com of today is a more dynamic machine.
The product-review component of Amazon has become the beacon for a majority of online shoppers. It is truly something to model-after. Even those customers choosing to spend their dollars elsewhere will venture to Amazon’s website for the sole purpose of their customer review transparency and millions of active reviewers.
The reviews combined with a smooth design provide the user with a complimentary shopping experience that has gone mostly mobile in 2021. Amazon has capitalized on this by improving its cross-platform accessibility and omnichannel presence.
The website of today is constantly feeding off the interactions and impressions of its visitors. Thus, the amazon UX (user-interface) is improved daily through customer shopping habits and data metrics.
Product Line _____________________________ Length
Lastly, we look to Amazon’s product variation at an ENORMOUS scale. The product line length at Amazon is contributing a large percentage of itself towards global climate change. Now, this is nothing to cheer in actuality, but in theory, we look at the sheer impact one company has on the globe.
It started with their two-way stretch strategy the company undertook by moving both up-market, to more luxury products and higher margins, while simultaneously engulfing down-market products and all of their unique customer segments.
This was a strong growth opportunity for Bezos and co. identified and pioneered betting against the archaic conventions of companies past.
We too often forget this was a time when nobody, competitors, nor Amazon’s own investors, saw value in spreading an online store so broad. So thin, they warned!
Safe to say the spread paid off and paid out.