Tag Archives: positioning

Amazon Drones get U.S. Approval for Delivering Packages

Drones seem to be ready to take over the skies, but are they really ready for prime time? Can they deliver the goods? And how does this change delivery services around the globe? We may soon find out the answers to some of those questions.

Amazon is the latest company to receive FAA approval to operate a fleet of delivery drones. The approval gives Amazon Prime Air broad privileges to “safely and efficiently deliver packages to customers.” Amazon will test its drones with the goal of achieving 30-minute deliveries for packages of up to five pounds within a 15-mile radius of a warehouse. The company has been working on using drones for deliveries since 2013, continually innovating the drone models. The FAA approval gives Amazon permission to operate a fleet and is not tied to a specific model of drone.

Amazon isn’t the only game in town though. Last April, Wing (owned by Alphabet) received FAA approval for commercial deliveries. UPS also received approval to operate a fleet of drones as an airline last year. However, in all these cases, widespread use is likely still years in the future as the FAA needs to establish new, automated air-traffic systems as drone operations will exceed what human air controllers can handle.

Ready for your drone delivery?

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Show Amazon drone video: https://youtu.be/3HJtmx5f1Fc
  3. Optional: Here is an older version of the Amazon drone model: https://youtu.be/MR9PoBAssw0
  4. Show competing drone services:
  1. Discuss which industries and services will be most impacted by drones. Why these?
  2. Will drones benefit consumers? How?
  3. Divide students into teams and have each team develop a positioning map for drone delivery services. What will be most important to consumers?

Sources: Associated Press; CNBC; New York Times; Wall Street Journal; other news sources

 

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A&W Canada: No more plastic straws

Look at the photo above. What do you notice about? Yes, it states that “Change is good.” That’s a good thing of course. But, notice what the entire sculpture is made out of – plastic straws! These are the last of A&W Canada’s stock of plastic straws. The Canadian chain has been moving to paper straws over the last few months, and to celebrate the transition, it used its last 140,000 plastic straws to make the 35-foot sculpture.

Last summer, A&W Food Services of Canada promised to reduce landfill by eliminating the plastic straws. It was the first quick-service restaurant chain in North America to make such a bold promise to improve the environment.  The company estimates that the change will keep 82 million plastic straws from littering the oceans and land.

The ban on the plastic straws is one part of the company’s environmental initiatives which include food sources, packaging, energy, water usage, and waste.

Indeed, change IS good.

Group Activities and Discussion Questions:

  1. Discuss the impact of environmental concerns on companies.
  2. What are companies doing about these concerns?
  3. View A&W Canada’s Web site values section: https://web.aw.ca/en/our-values
  4. What does this move do for the company’s brand?
  5. Divide students into teams. Have each team research the environmental values of a competing fast-food restaurants (e.g., McDonalds’, Wendy’s, etc.)
  6. How does A&W’s commitment impact its positioning in the marketplace?

Source:  Griner, D. (11 January, 2019). A&W Canada used the last of its plastic straws to make a sculpture announcing the change. AdWeek.

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Sam’s Club Now Goes Cashier Free

Amazon isn’t the only company working on reinventing the retail experience. While the Amazon Go stores have captured consumers’ attention and shoppers at its cashier-less grocery stores, it’s not the only retailer interested in using technology to improve the customer shopping experience. Walmart recently announced that it is opening Sam’s Club Now, also cashier-less, in Dallas. The company describes its new store as a “technology lab that doubles as a live, retail club.” At 32,000 square feet it isn’t quite a compact store, but it is significantly smaller than the typical Sam’s Club store.

Similar to Amazon Go, in order to shop at Sam’s Club Now, members will need to use a Sam’s Club app that allows customers to scan UPC codes as they shop and check themselves out when done shopping. The app also includes smart shopping lists, in-store voice search and maps, augmented reality for new in-store experiences, and one-hour pickup.

Employees don’t go away – they instead shift to a new role called the Member Host. These associates are the face of the company and will use technology to help them serve Sam’s Club members better. Sam’s Club stated that the “future of retail is as much about people as it is about technology.”

If you’re in Dallas, check it out.

Group Activities and Discussion Questions:

  1. Discuss the use of innovation throughout retail.
  2. Review Sam’s Club Now announcement and video: https://corporate.samsclub.com/blog/2018/10/29/sams-club-now-reimagining-the-future-of-retail
  3. Compare this with Amazon Go: https://www.amazon.com/b?ie=UTF8&node=16008589011
  4. What are the similarities, and differences, between the two services?
  5. How should the two companies position against each other?

Source:  Advertising Age, New York Times, other news sources

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