Shopper Marketing - August 2017 - 28

SPECIAL REPORT

Amazon Marketing Services (AMS) and
Amazon Prime membership fees. "Amazon finds creative ways to deliver the two
things needed to grow its shopper base:
a seamless shopping experience and an
endless assortment," says Julie Crabb,
account supervisor at Catapult. "Those
two things, along with the best pricing
in the marketplace, make it hard for consumers to shop anywhere else."

Building Dedicated Teams
Now more than ever, it is critical for CPG
marketers to develop an e-commerce
strategy that focuses exclusively on Amazon. By purchasing Whole Foods' 460
stores (which are mostly in the U.S.),
the company will create an extensive
new network of distribution centers and
pickup locations for AmazonFresh, Pantry and Prime Now services. (Amazon
Prime currently has more than 65 million subscribers, or about one in every
five U.S. households.) "We expect both
delivery of groceries and essentials and
click-and-collect purchasing methods
to expand dramatically," says Edwards.
"CPG companies will have to ensure that
they maximize assortment and achieve
full distribution under Pantry and Fresh,
and invest appropriately to ensure strong
platform visibility for their brands."
Working with Amazon has always involved distinct challenges that set it apart
from the traditional retail model, and that
will not change in the new landscape. For
one thing, Amazon's objectives don't al28

y SHOPPER MARKETING AUGUST 2017

ways align with the goals of marketers. It
continues to grow its private-label program and urges all manufacturers to support the lowest possible prices for their
products. Amazon's open online marketplace also attracts a significant number
of third-party sellers, which present a potential threat to sales and brand equity for
many manufacturers. To overcome these
challenges and maximize new opportunities, experts say brands must dedicate
resources to Amazon and develop teams
with specific knowledge and expertise in
working with the company.
"Every brand must make critical decisions about its investment priorities with
Amazon. There are many different levers to pull," says Edwards. For example,
some brands may choose to supplement
initial search results on Amazon.com with
"below the fold" detail pages that include
more product information and marketing
content.
In general, a winning strategy at Amazon requires the marketer to pay close
attention to the fundamentals of distribution, assortment and content, says Tom
Murphy, sales director of e-commerce at
Barilla USA. "A key factor in Barilla's success has been our ability to gain distribution across all of Amazon's shopping platforms, which enables us to maximize our
presence and sales with the company."
For some marketers, part of the challenge stems from an organizational approach that assigns e-commerce to other
"specialty sales" teams (e.g., club mer-



Table of Contents for the Digital Edition of Shopper Marketing - August 2017

Contents
Shopper Marketing - August 2017 - Intro
Shopper Marketing - August 2017 - 1
Shopper Marketing - August 2017 - 2
Shopper Marketing - August 2017 - 3
Shopper Marketing - August 2017 - Contents
Shopper Marketing - August 2017 - 5
Shopper Marketing - August 2017 - 6
Shopper Marketing - August 2017 - 7
Shopper Marketing - August 2017 - 8
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