New Project – 1059968 Table of Contents Brief overview 3 Repositioning Strategy 3 References 4 Brief overview Amazon Prime is a membership service related to the Amazon online store. The unique features of the service is that it offers free two day shipping on the items purchased in the online shopping stores along with access to Amazon Prime’s video service. Currently, the price of the service is $99 on an annual basis (Kline, 2014).
Repositioning Strategy
The customers availing the Amazon Prime service provides a strong focus on the value associated with it. With the price hike of $20 in the recent times, the subscribers for the service will have to place a total of 25 orders annually from the Amazon store in order to reap the value associated with it (Comeau, 2014). So, in order to generate value for the customers, frequent purchases on the online store is necessary.
For repositioning the service, a multi step strategy can be implemented. The first one is to create awareness about the service among the loyal customers, who have high shopping frequency. The second step will be to highlight the benefits of faster product delivery during the holiday seasons, which are the prime shopping seasons (Rao, 2013). The third step can be to pitch the service to consumers, who has a high movie watching tendency. The final tactic will be to offer attractive price rate for consumer electronics and books, since they have the highest purchases in the online stores (Nanji, 2013). By offering attractive prices, the purchase frequency of the consumers can be increased and this will create a pull demand for the Amazon Prime Service.
References
Kline, D. (2014). Is Amazon Prime Still Cost Effective With a $20 Price Increase? Retrieved from: http://www.fool.com/investing/general/2014/04/17/is-amazon-prime-still-cost-effective-with-a-20-pri.aspx
Comeau, M. (2014). Minyanville: Is Amazon Prime worth the money? Retrieved from: http://www.usatoday.com/story/tech/2014/04/16/is-amazon-prime-worth-it/7772549/
Rao, L. (2013). eBay And Amazon On This Year’s Marketplace Holiday Shopping Trends. Retrieved from: http://techcrunch.com/2013/11/24/ebay-and-amazon-on-this-years-marketplace-holiday-shopping-trends/
Nanji, A. (2013) Online Shopping Trends 2013: Most Popular Categories, Top Purchase Drivers. Retrieved from: http://www.marketingprofs.com/charts/2013/12195/online-shopping-trends-most-popular-categories-top-purchase-drivers

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