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Amazon Prime Family

Ogulcan Yildiz

Innovative Offering

Innovating Prime

Introduction

TheThe following presentation will propose an innovative new service, or service level for Amazon Prime members.

Introduction

Need for Change

• Innovation and creativity are critical in any business. Amazon, as an increasingly large online sales platform, has successfully used Amazon Prime, as a creative offering, to attract new customers and maintain customer loyalty.

Need for Change

Appeal of Expansion

• However, this program can be innovated to offer more services at a higher price, and to appeal to a wider market. This is why Amazon Prime, Family Plus is being recommended as a new expansion of the line of services.

Appeal of Service Expansion

Background

Amazon was established in 1994, as one of the earliest electronic commerce brands in the business. As a front runner in the e-commerce market, the company rapidly rose to become the world’s largest internet retailer and the provider of streaming technologies.

Services

Not only does the company sell and ship physical products, they also provide access to digital content, including games, books, and films which can be streamed or downloaded for private use.

Prodcuts

Products

The brand has, over time, developed its own electronics line, including phones, tablets, and a line of apps, with a cloud infrastructure for data storage.

In order to provide loyal customers with enhanced access to these products and services, while also generating a creative new revenue stream, the company began providing “Amazon Prime” services in 2005. Members pay for a subscription, and as a result, receive benefits including: two-day shipping, same day delivery in serviced locations, access to video and music streaming, prime photo services, pantry services which offer a reduced price on household and food items, and more. These benefits, however, are generic, and could be innovated to appeal to families, rather than individuals.

Amazon Prime Features

Innovating Existing Programs

Innovating Existing Programs

Incremental innovation

-Currently both Amazon Prime and Amazon family services are offered. This will not only combine, but also build upon their services.

- It will expand the educational services offered, and provide greater control

- This will allow not only greater appeal to family, but also increased loyalty among current members with growing families.

Understanding Relationship with Existing Services

Understanding Relationship with Existing Services

Industry Life Cycle

Amazon's Innovations

1994 Company founded

2007 Kindle Launched

2014 Fire TV

Amazon Innovation

2002 Amazon Web Services Launched

The Proposal

The Proposal

Oppertunity

• The Opportunity: Family members are often at different life stages and have separate needs, but are in the same Amazon Prime household. The opportunity is to make services more customized, and so well suited to every member of the household, in a way that is age and need appropriate.

Main Competitors

Main Competitors

There are a variety of competitors, depending on the services offered. The most notable are Netflix for movie streaming, Google Scholar for book access and academic research, and Walmart.com for physical product purchasing.

Competition Overview

Target Market

• Target Market: Parents with children of multiple ages, who are starting to use the internet for research or who routinely read on the kindle. The idea is to replace other movie and academic subscriptions services with an updated prime service.

Target Market

Customer Needs

Broader access to research, and online literature. Greater storage of research, notes, and help with citation. Educational support for children of multiple ages. Greater focus on providing family friendly entertainment and guidance.

Purpose

Purpose

To make the use of Prime membership, including current and added benefits more customizable to various members of the household

- To provide academic support to household students, from elementary to collegiate levels

- To provide parents with greater understanding of their student’s educational progress

- To provide greater parental control over access

- To provide enhanced educational and entertainment opportunities.

- To provide a greater level of separation between family members, who share an account, or more user-friendly sharability or large families, with greater per-person customization of their individual prime usage.

Service Offerings

The new Amazon Prime Family Plus, will offer expanded access and member benefits for family subscribers.

Service Offerings

Educational Member Benefits

Educational Member Benefits

Free Academic Library, with save and note taking features, and citation generation

- Kindle Unlimited access, with individual shelves for multiple family members, and tracking features for children reading. For example, mom could review Child #1’s time spent reading, pages read, reading level, etc, based on what they have been reading via Kindle.

Shopping Benefits

Shopping Benefits

10 free 1-day shipping purchases a year, in addition to

The ability to move between two separate shopping carts for developing separate orders

Entertainment Benefits

Access to 2 premium entertainment cannels (like Showtime and Starz) as a part of the larger package.

Establishment of movie rating filters for children, with individual watch lists.

Business Canvas

The Business canvas is critical to understanding the importance and development of the brand's key assets

Business Canvas

Key Partners

Key Partners

Book Publishing Companies

Universities

Prodcut companies

Indivdiuals sellers

UPS Shipping Services

Key Activities

Key Activities

Market Research

Development of Delivery Platform

Curating articles/ books/ digital media for inclusion

Development of Tracking software/ component

Sales/ Prodcut delivery

Key Resources

Key Resources

Website Development

App Development

Technolgoy capability

Brand Imagining

Exclusive Access

Value Proposition

Value Proposition

Offering families a variety of entertainment and educational services, consolidated into a single subscription, and controlled by households adults, at a low cost, and with increased convenience will be appealing to the target market

Continuing to offer innovated service in the e-commerce sector, while utilizing tools Amazon has already developed, and challenging key competitors in parallel markets

Customers

Customers

Customer Relationships

  • Long Terrm
  • Multifacited
  • Reaching both desire and need based interaction

Customer segmentation

  • Parents
  • Those with mutliple family members/ children
  • Single and multi-generational households

Marketing And Delivery

Marketing And Delivery

In order for delivery to be effective, it is critical that Amazon not only reach the target market for the innovation, but also develop a variety of effectively delivery channels for the associated service.

Promotion

Promotion will occur over a variety of platforms including:

-Through targeted promotion emailed to members whose purchases indicate they have families with members of multiple ages

- Via free trial memberships offered via the website.

- In parenting magazines.

-Via social media

- Via customer referrals

Delivery

Delivery

Via Online Apps

- Website

- Social Media

- Mobile App

Via Offline Services

- Kindle Downloadability

Cost Structre

Cost Structre

Pricing is critical to marketability. The idea is to charge a slightly higher price for Amazon Prime Family, and its added benefits, while maintaining the attraction of the target market, because of the low cost/ cost savings associated with membership.

Amazon Prime

Amazon Prime

Basic Amazon prime is currently $99 per year, if paid for annually, or $10.99 a month if paid monthly.

Members can cancel at any time.

New Service Pricing

New Service Pricing

The expanded family price is, as such, has a recommended subscription rate of $150.00 per year if paid annually, or $17.99 a month, if paid monthly.

Members can still cancel at any time.

References:

References:

Amazon Prime Info. (2018). Prime Membership Information. Retreived from https://www.amazon.com/gp/help/customer/display.html?nodeId=200444160

PTC: Streaming Services Lack Robust Parental Controls. Retreived from http://www.broadcastingcable.com/news/washington/ptc-streaming-services-lack-robust-parental-controls/167765

Consumer Report (2017). Pros and Cons of Amazon Prime. Retreived from https://www.consumerreports.org/shopping/pros-cons-amazon-prime/

Eggerton J. (2017).

Jopson, B. (July 12, 2011). "Amazon urges California referendum on online tax". Financial Times.

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