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Two major events happened for the online retailer recently that make us think Amazon’s about ready to take over not just online retail, but also the world.
In June, Amazon bought Whole Foods in a huge deal that is rumored to change the way Amazon, Whole Foods and retail in general does business. When the ink is dry on this one, we might see changes in AORs, media strategy, and the structure of marketing departments in both organizations. But it also has us asking: what other mergers we might see among the online big box elites and grocery stores. If the Whole Foods deal was about Amazon acquiring the grocer’s distribution network, what would access to WalMart’s distribution network be worth, and to whom?
Amazon also hosted its second annual Amazon Prime Day. On this magical day, Prime members get exclusive deals on all sorts of goods (but mostly kindles) from the delivery website. As Amazon offers more events like this one (Black Friday and Cyber Monday have been on the books for several years), agencies and media sellers should look out for ways to help promote not just the events, but the brands the sale will feature.
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It seems like change is in the air for Lyft, the ridesharing company and competitor of Uber. Lyft has changed up their creative and digital AORs with Wieden + Kennedy, NYC, and Publicis’s DigitasLBi, SF, respectively. The company will most likely try to capitalize on Uber’s nightmarish succession of PR scandals – and that likely means W+K-led campaigns. So far, the company has revealed that it’s new marketing strategy will try to drive awareness with new customers and markets, using “video-driven work.”
The new campaign and drive to remain competitive in the market means that media sellers should be on the lookout to take some of Lyft’s advertising budget, as it may increase the budget from the $30 million spent in 2016 to get closer to Uber’s $76 million in TV ads alone. In particular, traditional and digital sellers in urban markets that can appeal to a wide variety of people should have the leg up. Look for even more changes in the near future as Lyft tries to position itself as a more friendly and progressive alternative to a now-controversial Uber.
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Kroger, the grocery store many Americans know and love, may be getting a run for its money from German-favorite grocery chain Lidl. In late July, a federal judge denied a Kroger lawsuit against the other Lidl. (It was a fight over whether Lidl’s “Preferred Selection” could confuse shoppers looking for Kroger’s “Private Selection” products – the judge said “no.”)
With Lidl set to open 100 stores along the East coast by next summer, in addition to the already existing 10,000 stores around the world, the grocer is looking like a serious competitor to American stores. This means Kroger, along with other grocery stores with an East coast presence, will most likely be looking to up their game to squash the new competitor. Agencies should be on the lookout to pitch grocers looking to freshen up their AORs, and those with a track record of translating overseas culture into American consumption should also reach out to Lidl to try to win the German company’s business as they look to enter the US market.
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