amazon

prime student

American Marketing Association

International Collegiate Case Competition
2021 - 2022
 Table of Contents
Executive Summary................................................ 1

Situational Analysis............................................... 2

Competitive Analysis.............................................. 4

Market Research..................................................... 5

Target Market......................................................... 7

Persona Profiles...................................................... 8

Positioning.............................................................. 9

Marketing Strategy................................................ 10

Marketing Objectives & Tactics............................ 11

Tactical Budget & Timeline................................... 14

Metrics..................................................................... 15

Appendix................................................................. 16

Bibliography........................................................... 17
 Executive Summary
Case Challenge
Amazon has quickly become not only a leading brand across a variety of industries,
but a household name. Specifically, Amazon Prime currently serves about 150
million users in the United States that rely on their fast delivery, wide variety of
products, and more (Coppola). Always looking for ways to better serve and expand
their customer base, Amazon offers Amazon Prime Student accounts for college
students. Amazon Prime Student offers all the benefits of Amazon Prime plus more
at a discounted rate of $6.49 a month, being a great option for students looking to
save extra money. Targeting Generation Z individuals ages 18-25, Amazon Prime
Student is looking for a comprehensive marketing plan to increase:
1. Prime Student trial membership signups
2. Prime Student benefits engagement

Time Period: 3-year span from August 1st, 2022 - August 1st, 2025

Budget: $20 million per year

Primary Target Audience: Generation Z individuals aged 18-25 years

Campaign Goals
1. "Provide a path to acquire 75% of incoming freshmen through a 6-month trial
of Prime Student, while using marketing tactics to encourage new Generation Z
adult customers to engage with at least one benefit."
2. "Include recommendations to have Prime Student members engage with more
than one benefit and shop across multiple categories (Amazon Music Prime,
Prime Gaming, Amazon Fashion, etc.)"
3. "Communicate the value of students having their own membership instead of
account sharing with their family or friends."
4. "Make recommendations to encourage members to transition into a core Prime
membership post-Prime Student membership."

1
 Situational Analysis
Product Description
"Prime Student is a membership program with all the benefits of Prime, specifically
designed for higher education students. Prime Student offers members relevant
deals and benefits that make college life easier at a discounted membership price.
Prime Student is available to students attending vocational schools, community
college, traditional colleges/universities, and graduate schools. Students value the
Off-to-College discounts, fast and free shipping on college essentials, and tons of
entertainment options. Students can even try out Prime Student for six months at
no cost, courtesy of Sprint."

SWOT Analysis
Strengths Weaknesses
Convenience for students (such as Lack of awareness among target
variety of products at your fingertips, market, particularly Prime Student
one-click purchasing, fast shipping, exclusive benefits
easy returns with UPS/Kohl’s/etc.) Want to account share
Unique student-focused benefits Lack of tangibility (especially for
Well known brand that customers are clothing)
loyal to Inconsistency in delivery times for
User-friendly platforms (app and web) certain items
& great customer service Item doesn't always match the image
Strong system analytics or what is promised

Opportunities Threats
Promoting idea of independence and Loyalty to other subscription services
privacy by having your own account Lack of student income
Increase in online ordering due to the Other companies producing the same
COVID-19 pandemic products for cheaper
Promoting the idea of a centralized Struggles with distribution of goods
system for all subscription services following the COVID-19 pandemic
for students Negative public perception of Amazon
Partnering with additional student- executives
focused organizations Movement to buy local & dislike of
Eco friendly and/or Amazon Prime monopolistic factor of Amazon
Student packaging
Movement to services working in
tandem with products to provide
further competitive advantage
Collaboration with on-campus mail
rooms to provide a more convenient
return process.

2
 Macro Environmental Factors
Economic factors that influence Amazon Prime Student are the lack of
disposable income among students and the rise of online ordering. Students
aged 18-24 years old are within the age range that typically do not have Economic
much income to spend. A large portion of Amazon Prime Student’s target
market, freshmen, are amongst those with the highest budgetary
constraints. Furthermore, Generation Z is statistically known for being very
budget-conscious. Secondly, the increase in online ordering is beneficial, as
Amazon has contributed greatly towards the development of fast and easy
delivery of products. Online ordering offers many perks that customers are
valuing more and more as the world becomes increasingly digital (Law).

Amazon Prime Student is influenced by social factors including social

movements, DEI, and the Bandwagon Effect. These movements prioritize
Social financially supporting companies that support consumers' personal values.
This is important for Amazon Prime Student to manage since their primary
target market, Gen Z, are among the most vocal about these movements.
Furthermore, Amazon Prime Student needs to prioritize diversity, equity, and
inclusion because of the strong social push for increased education and
programs surrounding DEI. Just like the previous social movements
discussed, if DEI programs are not implemented, many customers will take
their business elsewhere. Lastly, trends are very influential in steering
customers to purchase certain products or services. The Bandwagon Effect is
strong amongst students because nobody wants to be left out of the
conversation or trend, especially during their early college years (Forbes).

Technological advances are becoming increasingly crucial for a companies Technological

success. Although Amazon is currently a technology leader, is it necessary to
make continuous and innovative improvements to stay ahead of the game.
There are many perks of drone delivery, some of which include improved
delivery time, efficiency, and convenience. With this being said, automation
jeopardized job security and is something to be cautious of. This fear of losing
your job to a machine is not beneficial to employee morale and needs to be
something addressed by Amazon to their employees (PRNewswire).

Environmental
Amazon Prime Student is influenced by various environmental factors. Gen Z
is much more environmentally conscious than other generations. Unnecessary
packaging waste and vehicle pollution can turn customers away. This can
include things such as large packaging for a small product or failure to
consolidate multiple items into one package. Being that environmental
consciousness is a priority in the target market, taking action to limit pollution
and minimize the environmental footprint the company makes will have a
positive impact on business with this group (Petro).

3
 Competitive Analysis
Service Description
Walmart engages in Chegg is a “leading After verification,
retail and wholesale student first students will receive
business. The company interconnected learning 20% off their entire
offers an assortment of platform". Chegg offers a purchase coupons until
merchandise and services place where you can buy the end of September.
at daily low prices. It is and rent textbooks for a After September 30th,
one of the world's largest reasonable price and if users can also receive
companies and serves you buy their monthly discounts via Bed Bath
many different wants study subscription you and Beyond emails and
and needs. can also get homework their app.
answers and extra help.

Competitive Advantage
Walmart can offer lower Amazon has textbooks Deals specifically target
prices than amazon in that you can rent or items that college kids
most cases and you don’t purchase, but doesn’t give may need. Bed Bath &
have to wait 1-2 days to you the option to sign up Beyond has also created
get your products. for homework help for an lists of College Dorm
extra charge. Although, Essentials.
Chegg’s return policy is
harder and you have to
pay for shipping.
Price
You don’t have to pay to Chegg is around Free, just have to sign-up
get access to Walmart $14.95/month (including through their website.
like you do for Amazon homework help) plus the
Prime Student which is cost of your textbook.
$6.49/month.

Ease of Use
Walmart stores are easy to Amazon is easier to Program is not well-
navigate and have sales navigate compared to advertised, and you have
associates in stores that Chegg but does not offer to dig around on their
can help you find what you the benefit of homework website to find. Parents
need. However there's an help. can also create an account
inconvenience of having to for their students, so they
leave your home to shop. can utilize the discount as
well.

4
 Market Research
In order to gain further insight into the perception of Amazon Prime Student amongst
our target market, we conducted an online survey which we distributed to college
students.

In the 15 questions asked, the goal was to measure awareness, preferences, purchase
behaviors, and popular incentives amongst the target market. Out of 132 responses
generated by the survey, approximately 70% of respondents were freshman, and other
30% were sophomores, juniors, or seniors.

To start, we asked students the question “What do you most frequently buy online?” to
understand purchasing behavior in hopes of better defining our target market.

When asking students what types of subscription services they had, music and video
were the top two types, with Amazon Prime in third place. 92.4% of students have some
type of Amazon Prime account, but 73.5% of respondents said they have an account
they share with their friends or family. A hurdle Amazon needs to overcome is account
sharing.

5
Survey respondents rated their awareness level of Amazon Prime Students on a 1-5
scale (1 being completely unaware and 5 being very aware). About 42% of respondents
rated their awareness level at either a 1 or 2, while 12% rated it at a 5. When asked
about what benefits Amazon Prime Student offers, 33% of students answered they were
not aware of them and 50% knew that the service offered Prime Video and Music. The
familiarity and awareness of Amazon Prime Student is relatively low, especially with
Amazon being a household name. 7.6% of survey respondents did not have any type of
account.

When measuring student preferences and willingness to use the benefits offered, the
percentages increased on every aspect compared to their awareness. Prime Delivery
rated the most popualar and Prime Video was the second. The next most popular was
the GrubHub+ benefit with 60.6% intended use, followed by 1 month free of the Chegg
service. These results portrayed what benefits are most desirable among the target
market, as well as when they are aware of the services, the willingness to use them
increases.

With account sharing being a main obstacle Amazon Prime Student will have to
overcome in order to increase membership and benefit engagement, we asked students
what would deter them from account sharing. Order privacy and/or independence
would be a deterrent for 88.6% of students. Additionally, a majority of the students said
that the extra benefits and cost reduction compared to a regular Amazon Prime account
would incentivize them to sign up.

Finally, we asked respondents to rate their willingness to sign up for a 6 month free trial
on a scale of 1-5, with 5 being "Very willing". Although some hesitance was shown from
the students, these results are fairly high given the lack of awareness stated previously.
With the proper marketing strategy, these numbers will increase tremendously.

Survey Link: https://forms.gle/rdD6NMZzuG97YmXA6

6
 Target Market
Primary
For our primary target market, we will be targeting college/university
students who fall in the 18-25 age range, belong to Generation Z. These
individuals are uniquely looking to take advantage of the endless Amazon
products, services, and partnership benefits while saving money in a
typically price-conscious phase of life such as college.
Psychographic: These students are looking for ways to minimize the
stress and uncertainty that naturally comes with the transition of
pursuing a college education. Factors such as newfound independence
after leaving home, maintenance of academic workload, social
adjustment, and acclimating to a new environment.
Behavioral: Students are looking for a simplified and convenient way to
fulfill everyday needs and activities (hobbies such as watching
movies/TV, listening to music, eating food) which are all able to be
satisfied through Prime offerings. These students are budget conscious
and have limited disposable income to spend.

Secondary
For our secondary market, we are targeting the parents of
incoming or current college students. This group can be seen as an
extension of their children who are likely moving out of the house
for the first time.
Demographics: According to the New York Times, the average
age of parents with a 17-year-old child, or one that would be
approaching freshman year of college, is 45 years old. Parents
of 17-year-old children are additionally making an average of
$87,000/year, meaning that there is enough disposable income
to be purchasing items from Amazon Prime. Statista reports
that in June of 2020, 68% of adults from the ages of 35-54
years old were using Prime.
Geographic: We are targeting all of the United States.
Psychographic: The most common product categories for adults
aged 35-54 on Amazon Prime Day in the United States in 2021
was Consumer Electronics at 40%, closely followed by Clothing
and Accessories and Home Goods at 35% (Chevalier).

7
 Prime Persona Profiles
Savannah is an 18-year-old girl who is a freshman at a medium-
Savannah sized university studying media arts and design. She is originally
from Boston, Massachusetts and does not have a car at school,
so she has very limited access to things outside of campus. She
is very close with her family and with being so far away from
home, she is nervous about feeling comfortable at school. She is
trying to transform her dorm room so that it feels like a home
away from home. Savannah does not currently have a job since
she wanted to focus on school her first year and is constantly
looking for convenient ways to save money while still getting
the things she needs to be successful. She is very creative and
big into fashion trends so her buying habits most often revolve
around these hobbies.

Brett is a 19-year-old freshman at a large state university where

Brett he is studying computer science. Brett is very excited to start his
college journey and is looking to gain independence and new
experiences outside of his small hometown of Johnstown, PA.
He is interested in gaming and all things technology related; he
is very tech savvy and is constantly looking for the next cool
gadget. Brett also has a lot of streaming subscriptions that his
parents previously paid for, but now that they will not pay for
them anymore, he is looking for an inexpensive way to continue
to have access to a wide variety of music and videos. Brett does
not cook often since he has limited capability in his dorm and is
not very fond of the school dining hall food so he often orders
food from nearby restaurants to his dorm.

Karen is a 45-year-old mom of 5 who lives in Leesburg, VA.

Karen Being a mom of 5 and having a full time job, Karen is constantly
on the go and always has a full plate. She often relies on
Amazon to make many of her purchases because it saves her a
lot of time not having to go to different stores to fulfill her
needs and she loves the quick delivery services. Karen's oldest
daughter, Julia, will be a freshman at a medium sized university
in the fall. Since this is her first child going to college and she
has never done this before, Karen is nervous about Julia not
having everything she needs when she goes to school. Karen has
thought about giving Julia access to her Amazon account when
she leaves for college, but she wants her to be more
independent and pay for things on her own, while also having
her own privacy.

8
 Positioning

On the perceptual map above, Amazon Prime Student is in the top of two market
attributes compared with competitors. Amazon Prime Student includes customer
goods and services as a low priced, bundled offer. The attributes for positioning
include levels of pricing and variety of goods and/or services and the level of
convenience for customers. Amazon Prime Student stands out among competitors
because it offers the highest variety of products/subscriptions with the lowest over
all price. Most of the competition falls within the higher price but lower solution
section; however customers trust these brands due to brand recognition of their
specialty/expertise of goods or services.

9
 Marketing Strategy
Increase brand awareness and engagement of Amazon Prime Student and
product offerings amongst incoming and current college students.

"Life moves fast, keep up with Prime Student"

The strategy slogan above encompasses nearly every aspect of Amazon Prime Student
we want to shine through in the marketing campaign. The first part, "Life moves fast"
embodies the fast-paced lifestyle college students experience, while the second part,
"keep up with Prime Student" ensures that this product/service will meet each
individual's unique needs every step of the way. This slogan also represents the
convenience Prime Student is able to provide through fast delivery and an all
encompassing subscription option. Lastly, it plays on the idea of students being able to
"keep up" with trends and simplify their lives by eliminating common stressors and
confusion that comes with daily life through a subscription that offers products and
services.

10
 Marketing
Objectives & Tactics
Objectives & Tactics
Objective 1:
Achieve 82% brand awareness amongst all college students living on campus within
1 year through various on-campus advertisements and events.
Tactics:
Provide flyers and promotional materials around campus during move-in time
urging students to sign up for Prime.
Show Amazon Prime Student advertisements during various collegiate sports
games via the jumbotron:
Pick a college sport team with high student attendance rates to sponsor
Increase advertisements and outreach facilitated by the student campus
ambassador program:
Bedroom makeover event: host a raffle where the winner is awarded a fully
furnished dorm room utilizing items only from Prime.
Place flyers in all student mailboxes which will highlight the 6 month free
trial and benefits included.

11
 Objectives & Tactics
Objective 2:
Increase engagement on digital and social platforms by 50% after 3 years by
creating more points of interaction about the benefits associated with Amazon
Prime Student.
Tactics:
Utilize comparative advertising with a side-by-side comparison between the
price of a cup of coffee and a monthly Prime Student subscription.
Highlight product offerings/benefits through deliverables with identifiable logos
side-by-side focusing on Prime delivery, Prime Video, GrubHub+, and Course
Hero.
Increase awareness of various offerings by utilizing TikTok in a more personal
way such as dorm tours with giveaway winners or relaxation techniques with
Calm.
Have student ambassador “takeovers” for Instagram and TikTok accounts for
them to create relatable college/university specific content.

12
 Objectives & Tactics
Objective 3:
Capitalize on existing Amazon Prime members by promoting Prime Student to
families of current or incoming college students through direct marketing and
display ads to increase awareness by 45% over the course of 3 years.
Tactics:
Utilize banner ads on both Amazon and Facebook by suggesting family members
gift Prime Student as a high-school graduation present to prepare for
Put promotional inserts inside of packages being sent to the secondary target
market.
Implement Amazon Prime Student registration buttons when users purchase
student-related items on Amazon.com

13
Tactical Budget & Timeline
Budget

Timeline

14
 Metrics
Campaign Wide Metrics
The primary metric we will be measuring is the number of sign-ups for the free trial
of Amazon Prime Student that occur over the course of the campaign. Due to the
fact it is the overall goal of the campaign, it is the most important metric to
measure the effectiveness of our campaign.
Our secondary metric is the percentage of Amazon Prime Student members who are
utilizing each of the various additional benefits of the program will aid in achieving
each of our objectives. This objective aligns with Amazon's goal to achieve a higher
usage rate of the additional bonus options accompanying Amazon Prime Student.

Objective Specific Metrics

To complement our first and third objectives, we will conduct surveys on various
campuses as we did at the beginning of our campaign to confirm that our campaign
reach is sufficient in creating better awareness. This will aid us in making sure that
all of our objectives are directly met and can allow adjustments to the
implementation plan.
To address our second objective, we will be monitoring the click through rate of our
digital advertisements in order to increase knowledge on the benefits of Student
Prime. Additionally, we will focus on site stickiness and the time users are spending
on Amazon Prime Student social media and other digital sites.

Measurements
In order to measure these objectives, Amazon will use an in-house metric
management system to keep track of these metrics over the course of the
campaign. For digital metrics, our team recommends that they utilize a social media
management platform such as Hootsuite, to keep all posts, scheduling, and
analytics in one centralized location.

15
 Appendix
Deliverables
Objective 1

Objective 2

Objective 3
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