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Amazon Go supermarkets in the UK.
The cashier-less supermarkets use technology to allow customers to pick up items and walk out with them, instead, charging their Amazon account so they don’t have to stand in a checkout queue.
According to The Sunday Times, the retailer is looking for “a significant number” of sites sized between 4,000 square feet and 5,000 square feet across the UK.
Amazon initially launched the concept back in 2016, allowing Amazon staff to trial the new technology. Since then, it has opened five stores in the US across Seattle and Chicago.
Customers download an Amazon Go app before entering the store. They have to use the app to enter the store, which registers their Amazon account, and then they can put their phone away and start shopping.
Amazon’s “Just Walk Out Technology” uses computer vision, sensor fusion and deep learning to detect when products are taken off a shelf, or later returned.
The technology keeps track of all the items in a virtual cart so there is no scanning involved. Once customers are done shopping, they can leave the store and Amazon will charge your account.
Amazon now has five Amazon Go locations across the US.
There is a difference between having the no checkout stores strictly for Amazon customers and allowing the general public in to try them out. In 2017, the Wall Street Journal reported that the technology faced problems when there were more than 20 people in the store, something Amazon has been working to correct and, as a result, has delayed the expected roll out of further locations.
At the moment, it’s unlikely that Amazon Go will arrive to compete with your local Tesco or Sainsbury’s. The stores stock ready-to-eat items for breakfast, lunch and dinner, with some grocery essential ranges too, however, stock varies depending on which store you are in.
But, when it does arrive in the UK, it will no doubt be celebrated by busy Londoners. The idea of being able to pick up some lunch and walk out of the door without queueing is a dreamy one, we admit.
Your local small business association has read about Amazon Go and is concerned about the potential competition. They wish to offer strategic marketing advice to local businesses, have asked you to prepare a presentation in which you should analyse and evaluate key marketing concepts as well as the marketing planning process by using Amazon Go as an example.
Please prepare presentation with speaker note and you should include:
An introduction, evaluating the purpose of strategic marketing
A diagram of the marketing planning process.
A critical review of at least three marketing concepts/models/theories and how they relate to the marketing planning process.
A critical discussion of the significance of branding using Amazon as an example.
Illustrate the concepts of ‘brand pyramid’, ‘brand positioning’ and ‘brand management’, and how and why these concepts should be integrated into marketing planning