A company’s marketing mix consists of their 4 Ps:
- Product – What is the company’s product?
- Price – For how much will the product be sold?
- Place – Where is the company selling their product?
- Promotion – How is the company raising awareness for the product?
Amazon started as an online bookseller back in 1994 but has diversified its marketing mix quite a bit since then. In 2014, the company introduced Amazon Lockers in Seattle, New York City and London. The idea of Amazon Locker is to provide a secure, self-service location where customers can pick up their packages for no extra cost.
Now, you may be thinking: Why would I want to go out to get my package instead of getting home delivery? One of the moments when these lockers can come in handy is if your package requires a signature of acceptance. Alternatively, if you’re not home, you’d have to queue up at the post office to recuperate your package. Also, if you live in a large city and your apartment building frowns on packages, you might send your packages to a PO box. However, first, that’s a waste of money if you’re not using it regularly and, secondly, you would still be going out of your way. Instead, Amazon is giving you the option to send it to these lockers which are in more convenient locations, like grocery stores. Because everyone has to eat, the online retailer is giving you the option of combining two trips into one. In this way, everyone wins: Amazon continues to provide its high-quality service; the grocery store gains extra traffic; and the consumer can pick up their package in a convenient location.
Moreover, Amazon lockers can also be used for returns. This is a great feature as it saves you the waiting in line at a post office. Additionally, it saves you from having to abide by the nine to five post office hours.
Clearly, Amazon is succeeding in finding the optimal marketing mix. It attracts customers thanks to its wide product offering and low prices. Amazon is also consistently expanding its place offerings. With its recent purchase of Whole Foods, I’m curious to see what else the company will come up with. Given that I found this Amazon Locker in the Safeway in my neighborhood and Whole Foods is one of Safeway’s competitors, do you think this might impact the relationship between the two companies?
Thank you. Quite a lot of information.