Shopper Marketing - April 2016 - 36


FEATURE: DRONES

delivery culture may cross over. At a higher
level in the model, brands and retailers can
look at how drones augment or modify the
delivery game. Bynum sees two new modalities:
n	 Intra-chain. A shopper visits his local Best
Buy, but "Deadpool" on Blu-ray is out of
stock. The salesperson can "drone" one
over from the store 10 miles away.
n	 Inter-chain. Best Buy has "Deadpool" on
Blu-ray, and guess what, through a partnership with the Kroger down the street,
here's a free bag of popcorn that will be
"droned" over after purchase.
Bynum further riffed on the idea of a customer being able to leverage a drone as a market aggregator. What if, online, a shopper has
a drone pick up multiple items at different
locations? It makes five stops to complete a
recipe or project and brings items to a single
location. It's an example, if anything, of the last
step in the model: to reinvent. He says brands
and traditional stores that reinvent will win.

Greg Grudzinski, Director of
Insights and Analytics, at Catapult
Ecommerce
Catapult is one of a
few, select agencies
to be named a Trusted Creative Partner
of Amazon. It's a
role that makes it a
functioning liaison
between Amazon
and brands to leverage advertising and Amazon Media, so the agency knows Amazon and
e-commerce. And so to Grudzinski, forget the
36

y SHOPPER MARKETING APRIL 2016

legal issues and whether or not a drone will
crash into commercial aircraft. Real threats?
Yes, but how will drones solve the last mile for
Amazon? "What has to happen for a drone to
be more efficient than a UPS truck," he asks.
"The basics of delivery have to do with root
density, which is how many deliveries am I
making on a trip, and how many items am I
dropping at each stop. So for a drone that has
to go out and back for each delivery, it's going
to be an expensive proposition."
Grudzinski says Amazon took a big hit in
Q4 on delivery costs, so it's obvious why it is
looking at a more efficient way. He has seen
estimates reported at around $10 to $20 for
a drone delivery. Amazon has tremendous
resources to iron out the legal complications,
he says. "It's good for their brand to be seen
as, 'we're out in front of this and we're doing
everything we can to get product out to you
faster.'" In the meantime, Amazon will take
the help. "If Amazon paves the path for this
kind of last-mile distribution, and opens it up
where a lot of startups and venture capitalist
dollars get attracted to the opportunity, that's
a huge advantage to them, even if they aren't
running the fleet of drones."

Scott Lachut, President, at PSFK Labs
Less is the vision
of a drone copter
lowering a package to a front yard
than it is of a drone
copter shut tling
from distribution
center to different
nodes scattered throughout a city, according



Table of Contents for the Digital Edition of Shopper Marketing - April 2016

Contents
Shopper Marketing - April 2016 - Intro
Shopper Marketing - April 2016 - 1
Shopper Marketing - April 2016 - 2
Shopper Marketing - April 2016 - 3
Shopper Marketing - April 2016 - Contents
Shopper Marketing - April 2016 - 5
Shopper Marketing - April 2016 - 6
Shopper Marketing - April 2016 - 7
Shopper Marketing - April 2016 - 8
Shopper Marketing - April 2016 - 9
Shopper Marketing - April 2016 - 10
Shopper Marketing - April 2016 - 11
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