APAN 5800 proposal Sample docx

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School

Columbia University *

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Course

5800

Subject

Marketing

Date

Feb 20, 2024

Type

docx

Pages

5

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Sample Proposal To: From: Date: Introduction (Description/Background) : Amazon Prime and Amazon Fresh provide local delivery to consumers. but although Amazon has added several retail grocery stores to improve its fast- growing chain of physical stores before, the join of Whole Foods certainly furthered Amazon the ability to distribute products more freshly and locally. Most importantly, Whole foods incorporate the grocery chain to the current delivery system of Amazon. Challenge/Opportunity : Amazon is facing increasing competition from Whole Foods. Whole Foods focuses on offering organic and premium products for wealthy people. But the inequality between its high price and quality made its operating margin to decrease. And we have not seen any changes since the acquisition happened. Meanwhile, we found the biggest challenge Amazon now facing is about data utilization. It is crucial for Amazon to conduct a customer behavior analysis. Rationale : To help Amazon improve sales and promote upselling, it is necessary to collect and utilize data from WFM.  First, we will devise a scheme from a geographic view. Currently, only 479 WFM stores exist in the US. Amazon can improve its operational strategies through analyzing customers’ demographic and geographic features, including customers' age, gender, income level, location, and Online-or- Onsite preference. Opening new stores can benefit multi-channel retailing for both Online and Onsite. Increasing physical stores also help Amazon achieve 2-hour- delivery aim and provide after-sales service stations, improving competitive advantage.   Secondly, we will provide a scheme from a marketing view. We will collect consumers' previous shopping habits, like frequency, time selection and preferred product combination. Through analyzing individuals' shopping habits, we can
provide accurate recommendations and one-time or automatic orders for consumers, which not only improves consumers shopping experience but also increases the sales of goods. Knowing the purchasing time selection, we can provide flash sales to stimulate the sales in off-peak hours or enlarge the sales during peak hours. Furthermore, we can utilize this data to design more sales strategies with efficient promotion ways and price setting. Thirdly, we will move on to the management and logistic view. After the acquisition, the biggest change for WFM is Prime memberships. This is the first time WFM adopt memberships model and offer discounts. Through analyzing the number of Prime memberships and the users in WFM, we plan to discover the best way to balance the discount cost and the membership revenue, trying to increase WFM’s sales as well as Prime memberships. Considering vendors, we need to compare the prices of goods in WFM and other food markets, to make sure of competitive advantage in organic foods. Figuring out the out-of-stock rate and inventory turnover ratio can also ensure the success in logistic chain. Besides, through the qualitative questions in customer’s surveys, Amazon can get a thorough understanding about the expectations of customers and its strengths from customers’ view. Therefore, the strengths can be advertised in Amazon’s slogan to attract more potential customers and achieve upselling strategies. Cost Analysis : It is important to identify any potential costs related to this project to see if this analysis is worth conducting. Major costs are identified and generalized into three categories include consulting costs, software license costs and survey conduction costs. The consulting costs include fees paid to the consulting firm that covers all members’ salary as well as the cost on travel reimbursement expenses. The consulting team sent by Third-Party-Consulting Firm is formed by one experienced project manager, two senior level analysts and four junior associates. Referring to
the industry average, the total salary expenses for this three-month project is around $130,000 (please refer…). Also included in the consulting costs is the expected traveling reimbursements. This project expects moderate traveling from the east coast to the west coast. So the amount is assumed based on seven round trips from JFK to SFO with a total air fare of $2100 and hotel costs around $900.    (Wage References) https://www.glassdoor.com/Salaries/consulting-project-manager-salary-SRCH_KO0,26.htm https://www.glassdoor.com/Salaries/management-consulting-senior-analyst-salary- SRCH_KO0,36.htm https://www.glassdoor.com/Salaries/junior-analyst-salary-SRCH_KO0,14.htm https://www.google.com/flights?newwindow=1&lite=0#flt=JFK.SFO.2019-11- 10*SFO.JFK.2019-11-15;c:USD;e:1;sd:1;t:f   Position Annual Average Income Three Month Salaries Salary Consulting Manager(1) 120000 30000 30000 Senior Analyst (2) 80000 20000 40000 Junior Associates (4) 60000 15000 60000 Totsl Funding Requrdted $130,000   Students, please see the Gant-style Tasks/Cost chart below. Additional detail can be added to describe the timeframes for the various phases of the project, including funding requirements and the due data.
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