To overcome these issues Amazon fresh focused on building of the existing brand image. Brand image is the intrinsic intangible that is associated with the brand. Companies use this notion of brand image to expand their target markets. The brand should resonate with the values and objectives of the company. The brand was able to provide quality services for the consumers in the other sectors. The online sales of the company were in general very good.
Amazon fresh offered services in the limited range. They were able to cater to the people that they had initially sent invitation. Then they built a stronger brand image. There was greater understanding of the consumer preferences and the taste of the consumers. The target market demography was analyzed in detail by the company. They then decided to expand operation based on the consumer preference and gaining the resources to maintain the service quality standards.
Online grocery companies face more challenges, they need to ensure that the service delivery is prompt and the aesthetical view of the products are similar to the ones found in the retail store shelves. There should be superior supply chain operations that the companies should develop in the case of online grocery stores. Amazon had managed to form strategic alliances with the local companies to cater towards the needs. There should be local community membership and alliances that the company should form. This would increase the stakeholder relationship and improve the persona and the brand image of the company. An online grocery shop should have the supply chain distribution where they work with the local vendors. There should be better liaisons formed with the local companies. The online grocery store should build on the existing brand image of the companies and develop slowly. Rapid expansion should be avoided. There should be slow expansion of the services provided.
To conclude, maintaining proper supply chain distribution, strategic alliances with the local companies, slow expansion and building on brand image are some of the ways in which the Amazon was able to gain customers. The online grocery companies should also focus on the intangible elements such as brand image and consumer patronage to gain a strong foothold in the markets. The companies should analyze the requirement of the target market demography.