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How amazon is getting into the business

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Amazon to Take on Biggest U.S. Grocery Chains with Fresh Food Delivery

This article examines how Amazon is getting into the business of delivering groceries in order to compete with the largest supermarket stores in the United States. The following three marketing ideas may be used in the analysis of this news story:

The segmentation approach is the first notion in marketing. Amazon is carving a niche for itself in the grocery industry by catering to consumers who prioritize convenience and speedy delivery. Amazon is targeting a certain demographic of customers-those who are prepared to pay more for greater levels of convenience-by offering delivery services for groceries.

The second key notion in marketing is called product positioning. Amazon is capitalizing on its already-established brand image to elevate the status of its grocery delivery services to that of a luxury product. Amazon is hoping to attract consumers to its newly launched grocery delivery services by capitalizing on the company's well-established reputation as a dependable and high-quality online retailer.

Pricing is the third important idea in marketing. Amazon is increasing its market share via the use of its grocery delivery services by giving pricing and promotions that are comparable with those of other retailers. The goal of this approach is to expand market share while also attracting new clients.

To summarize, Amazon is entering the market for grocery delivery by focusing on a certain niche of consumers, presenting its services as a premium product, and providing pricing and discounts that are comparable with those of its competitors. This news article illustrates how Amazon is using three different marketing techniques in its effort to increase its market share in the grocery delivery business.

The article includes the following marketing concepts:

Segmentation: Segmentation is the process of dividing a market into distinct groups of customers with similar needs and wants. Amazon is segmenting the grocery market by targeting customers who want convenience and fast delivery. By offering grocery delivery services, Amazon is appealing to a specific segment of customers who are willing to pay for convenience.

Product Positioning: Product positioning is the process of creating an image of the product in the customer's mind. Amazon is using its existing brand image to position its grocery delivery services as a premium product. Amazon is leveraging its reputation for being a reliable and high-quality online retailer to draw customers to its new grocery delivery services.

Pricing: Pricing is the process of setting a price for a product or service. Amazon is using its grocery delivery services to gain market share by offering competitive prices and discounts. This is a strategy to attract customers and increase market share. By offering competitive prices and discounts, Amazon is making its grocery delivery services more attractive to potential customers.

Reference no: EM133343097

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