Marketing Plan for Amazon

Amazon.com will look for ! 1 out of ten existing customers to make a purchase of $50 or more at the online grocer. New customers, ones that are not already making purchases from the Amazon.com stores, will be measured against making 20 purchases at $20 each within a 2-year period. Distribution Management Distribution management will be controlled and measured against two key indicators. First, a reduction in on-hand inventories. Amazon.com will review inventory-carrying costs monthly and will attempt to drive costs down by $800,000 in 1 year. The company will pursue this action plan by migrating to a just-in-time inventory management program and a supplier managed inventory program. The just in time program will allow Amazon.com to purchase products from its suppliers on an as needed basis and provided consumers a consolidated shipment (i.e. one package with books, toys, and games). The second inventory program, supplier managed inventories, will require Amazon.com's suppliers to own the inventory in Am! azon.com's warehouses without Amazon.com taking ownership of the inventory until the point of sale. An inventory management team will be created and over see the management of the inventory programs on a regular basis. The second, metric for ensuring the success of this action plan is the deployment of a Supplier Managed Inventory deployment team. The team will be chartered to migrate half of the existing Amazon.com suppliers to a supplier managed inventory program or a just-in-time inventory strategy within two years.…