The Amazon Echo Advertising Strategy Spring 2016 Group 2 Kara Braun, Alex Carter, Riley Collins, Maxwell Sanders, Bryana Tianga

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1 The Amazon Echo Advertising Strategy Spring 2016 Group 2 Kara Braun, Alex Carter, Riley Collins, Maxwell Sanders, Bryana Tianga

2 Outline Part I: Part II: Problem Statement Problem & Opportunity Analysis Opportunity Recommendation Marketing Objectives Marketing Strategy Target Market Profile Brand Proposition Statement Part III: Communication Strategy IMC/Promotional Tactics Measurement & Evaluation

3 Problem/Challenge Statement Develop an advertising strategy for the Amazon Echo to assist Amazon in growing its market share in the Intelligent Personal Assistant industry.

4 Problems & Opportunities Problems 1. Inability to pinpoint a definite target market with segmented advertising 2. Strong competitors in the digital voice assistant industry 3. Only Amazon Prime users can experience the full benefits of the Echo Opportunities 1. Utilizing Amazon s brand image and equity as a platform for penetrating the IPA market 2. Continued integration with outside companies to make the Echo a more efficient product in comparison to other IPAs 3. The Echo is the first of its kind among major tech competitors to be a standalone, hands-free speaker

5 Opportunities Recommendation A. Utilize Amazon s brand power and consumer reliability to drive sales of Echo and increase market share B. Continue to collaborate with exclusive outside companies: I. Reach younger, more tech savvy population of users II. Amazon s large consumer base can be shared with other businesses, vice versa C. Risks Include: I. Alienating potential consumers who use competitors of Amazon Echo s partnering brands II. Alienating potential consumers who fall outside of the projected target age range

6 Marketing Objectives 1. To increase Echo sales by 20% within a year of the campaign s launch 2. To increase market share by 5% in the IPA market by the end of the fiscal year 3. To increase Amazon Prime membership by 10% within the proposed target market by the end of the fiscal year

7 Marketing Strategy A. Use Amazon s established brand power to... I. Continue integrating with outside companies II. Position the Echo to older millennials & younger baby boomers B. Trustworthiness and reliability of the Amazon brand creates platform to successfully insert itself in the IPA market C. Continue current pricing and product distribution strategies of Amazon

8 Target Market Profile Middle to upper-class working professionals between the ages of 25 to 50 Additional emphasis on converting non-prime users within the target market to Prime Members 25 to 35 need more incentive to join Prime 35 to 50 are the most likely to already have Prime memberships Tech savvy individuals looking for efficiency

9 Introducing Tom

10 Brand Proposition To year old tech-savvy individuals who need to satisfy a yearning for efficiency in their homes, the Amazon Echo is the intelligent personal assistant that provides hands-free technology within your household. The reason is that it has cloud-based, artificially intelligent software that integrates with your mobile devices and other outside companies to assist you with any task from calling an Uber ride to updating your busy calendar. The brand character is innovative, unique and modern. The value-based payoff is convenience and satisfaction.

11 Communication Objectives 1. Increase awareness of the Echo by 25% to the target market within one year of campaign launch. 2. Inform the target market that the Echo provides a unique ability to integrate with other products and make home life much more efficient for its users, leading to a 20% increase in exposure and brand recall within one year of the campaign launch. 3. Remind target consumers of the strong brand power, reliability and positive nature of Amazon as a company, resulting in a 15% increase in consumers intent to buy within one year of the campaign s launch.

12 Communication Strategy To Convince year old working professionals who need the latest technology products to make their hectic lives more efficient That - the Amazon Echo is the intelligent personal assistant that provides the ultimate hands-free, artificially intelligent technology to satisfy your in-home needs Because -it has a unique ability to integrate with your mobile devices and outside companies to assist you with a variety of household tasks from calling an Uber to streaming your favorite playlist.

13 IMC Tactics 1. TV Spot Advertisement on NBC, CBS, ABC and FOX To increase awareness and to inform 2. YouTube Mini Video Series Partnering With The 2016 Summer Olympics To create buzz and excitement as it goes viral 3. Amazon Echo Experiential Event To touch on awareness, interest, informing, and reminding 4. Wall Street Journal Ad To increase awareness among tech and business professionals

14 Measurement & Evaluation 1. TV Commercial a. Before: concept test to evaluate the accuracy of the commercial content and ensure the benefits being showcased are useful and relevant to intended target market b. After: post-test to measure the reach of the ad, evaluate the difference in brand consciousness and measure the level of brand recall among the target audience 2. Olympics Video Series a. Before: concept test prior to creation of video series to determine which athletes and benefits would better resonate with target audience; budget b. During: concurrent test to measure the views of each video and to evaluate/track how the target audience is responding to the video series

15 Measurement & Evaluation (continued) 3. Echo Experiential Event a. Before: concept test to gauge consumer interest in the event and gather ideas that consumers might want to see at the event to maximize interest and attendance b. Before: copy test to determine expectations for the event c. During: concurrent test halfway through to evaluate consumer intent to buy, and to measure reach, buzz and responses on social media d. After: post-test to evaluate consumer perception of the overall event, attitude towards Amazon and sales numbers in comparison to before the event 4. Wall Street Journal Ad a. Before: concept test to evaluate usefulness of ad and determine if simplicity of ad will be effective b. After: post-test to measure exposure and recall, and to evaluate ad effectiveness in print medium compared to other promotional mediums used

16 Close the Sale (Outro) (Riley) Questions? ADV3001 Group 2 Spring 2016

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