Boston University Amazon Echo Dot Abstract Paper

  

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Abstract
Literature Review
Introduction
Statement of the Problem
What is Amazon’s Echo dot(3rd generation)
The Amazon Echo dot is a speaker with so much more. The speaker is small enough to fit
in your hand but powerful enough to be heard. The speaker offers a variety of features but the
most famous feature is the voice assistant known as Alexa. The Echo Dot allows a user to ask
trillions of questions and commands without even touching the device. Some common
commands users ask include “Alexa what is the temperature today?” “Alexa what team one the
football game today the Pats or..” the list of questions goes on forever. Not only does Alexa
answer your questions but she also listens to your commands and does anything she is capable of
to assist you. One feature includes saying “Alexa add (a grocery item) to my grocery list” and
then being able to log onto the Amazon Alexa App and seeing the groceries you need without
having to bring in a paper into the store. The Echo Dot not only will keep track of your groceries
but it has the ability to order products from the amazon store by voice command. With the
command ‘order item, and “checkout”, Alexa will order any product anyone desires off the
amazon store. This is a key component that separates it from competitor siri of apple, their other
competitor “Google Voice” has similar features. The speaker, of course, plays music but the
variety doesn’t just stop at only using Apple Music. The device is also a partner with Spotify,
SiriusXM, and other platforms such as podcasts and your favorite television show audios. Alexa
is currently limited to few options when it comes to offline capabilities, she can control all
connected and compatible smart home devices such as lights, plugs, heat and air conditioning,
and laundry and dishwashing devices. The Amazon Echo Dot currently retails for $49.99 and
comes in three colors, black, white, and silver. The top of the device has a light built-in so when
a user asks Alexa to co something the device lights up showing that it hears your command.
Research Motivation
Amazon offers various ways to increase exposure for their Alexa Echo with an already
active user base of their multi-millions of customers who shop on Amazon.com every day. A
Global Web index search said that 27% of overalls consumers currently say that they use some
form of voice search on their cellphones 34% confirmed that they are interested in having voicebased smart assistants in their homes. That’s on top of the nearly 53 million American adult
consumers who already use some form of smart voice at home. This creates a huge market with
its already existing platforms for marketing. Of the 25 million Echo smart speakers in use which
people use to engage with its AI assistant Alexa, and that number is expected to more than
double in 2 years. In 2017 The Amazon echo launched in 80 countries. Each device depending
on the country was given the local language Alexa Voice Service to program but most of the
program’s language range was also fairly limited — to English, German and Japanese. They
approached the global market, unfortunately, guns blazing, and failure to program more than 3
languages even though they introduced the product to 80 different countries. As of today, it
speaks 40 different languages as opposed to its initial launch in 2017. In comparison, Apple’s
voice assistant speaks 21 languages. Google Assistant had only 15 languages when it launched
18 months after Alexa with its Home Assistant. Amazon rolled out that Alexa had learned to
speak Mexico-specific Spanish; the experience was built in a way “that honors Mexican culture,”
Amazon Alexa Vice President Toni Reid said, “This experience has been custom-made for
Mexico, and we cannot wait to hear what our customers think”. Amazon realizes that emerging
markets and growing nations are the way of the future when the middle class in the United States
continues to shrink while developing nations like India grow 8% each year. The Amazon Alexa
starts as $49.00 and depending on the generation 1st-3rd increases between $40.00$100.00. With all this being said the potential to sell the Amazon echo in emerging markets is
high. As the amazon echo continues to develop regarding the amount of languages being
incorporated it’s widespread sale can only increase. As for making the Echo available affordable
nation by nation the answer lies in Amazon’s ability to produce and profit while still appealing to
these emerging markets. Whether that is making Echos solely for specific countries which may
decrease production cost or taking away certain features to again lower the price.
Country/Regional Analysis
Amazon as a whole already has a large distribution network and continues to expand each
year. As of two years ago in 2018, Amazon was made up of 333 buildings spanning a distance of
127.8 million feet between them all. In 2018 the company had 1,000 fulfillment centers spread
worldwide reaching 185 countries. The idea of expanding the Amazons Echo Dot in those
reached countries would be great. Amazon can also develop unique capabilities in serving the
needs of low-income customers by continuing to make Amazon’s online shopping center known
as “Amazon Prime” more affordable for different countries. For example, the cost of Amazon
prime in the United States is $119 per year or $12.99 if paying on a monthly basis. The cost of an
amazon subscription yearly is a lot cheaper in developing markets such as Australia. The yearly
cost of Amazon prime in Australia is $38.30. The question of “why such a drastic price change
comes into play? The reason Amazon as a company is willing to lower the yearly cost of a
subscription is to gain more customers not just regionally in America but spread the online
shopping subscription globally. This growth globally will go as far as the country of Australia
and more. The increasing amount of amazon Prime users will result in more customers buying
Amazons original products such as the Echo Dot and then purchasing more products off amazon
using the amazon Echo. Amazon can use their platform to advertise the Echo Dot in hopes to sell
more of the item world wide. Lowering prices to emerging markets is a genius marketing move.
Due to the company being used through technology, the existing challenges in the region are
categorized as being a soft infrastructure. Though this seems to be a stretch and a potential
money hole, again, adaptations to products can be made in order to make this growth.
Nature of the Study
The second-largest study design includes a collection of secondary data. Our group has
not and will not be gathering information first hand such as surveys and phone calls to
customers, this is a qualitative method. We instead plan to use the scholarly resources already
available to complete our study. Our study will include mainly secondary data. Our study will be
mixed with global and regional research. Based on the demographics the largest age group that is
purchasing Amazon’s Alexa is 18-30-year-olds. People who are purchasing the product have an
understanding of how the technology works and does not have an issue using it and adapting to
it. Alexa allows people to be hands-free. Most people either put the device in the living room or
the kitchen. While mobile technology such as the cell phone and laptop/tablet has dominated the
market for the last 10 years, voice search is still an emerging field and has significant room to
grow soon typing searches could be a thing of the past and the Amazon Alexa Echo is the
pioneering product leading the world with voice search technology. In 2016, Google revealed
that roughly 20 percent of mobile queries were voice-activated. Fast forward 5 years that number
has doubled in size with people using tools such as Alexa Echo. This is a quantitative nature of
study. This growing trend means that marketers will have to adapt to a new voice-controlled
territory, at the forefront of which resides in tools like Amazon’s Alexa Echo. Alexa also offers
features like music and functions that are essentially the equivalent of apps for a smartphone that
are voice commanded as opposed to typing each search out. Finding case studies showing 6
examples of how products introduced to emerging markets can be made and 6 examples of how
products brought to emerging cannot be made will be completed through our study . With
essential evidence throughout our findings this will be put together to show the realistic outlook
on how the Echo Dot can be grown through emerging markets. The pros, cons and evidence
found will be crucial to completing this study. Without proof of past failures and successes of
other products proven to be flourishing in emerging markets, our study cannot be presented
accurately. Both qualitative and quantitative methods are used in the nature of study.
Amazon Management Strategies on Echo Dot
Echo Dot is a smart device that has a voice-controlled speaker. This speaker uses Alexa
to control smart home devices, music, make calls, set timers, answer questions, as well as setting
alarms. The product is produced, marketed, and distributed by Amazon. This paper will analyze
how the Echo Dot can serve low-income consumers and how Amazon can ensure that this
product is available to all consumers and more so, those emerging from developing countries.
Motivation of study
One of the factors that make the Echo Dot one of the products that can be used by a wide
demographic margin is that it is relatively priced. At Amazon, the product is priced at just $17,
and this means that even potential consumers from emerging and developing markets such as
countries in Africa and Latin America can afford the product (Leigh & Pershing, 2019). These
consumers can use this product to listen to music and listen to video sounds as they watch the
video from a different output. It is imperative to mention that televisions of music systems that
have complete good sound systems are very expensive in today’s market and this means that
people from low and economically emerging countries might find it hard to afford these
products. These individuals need to listen to good music sound, and this is the gap that Amazon
tries to cover the gap by producing and distributing high-quality products such as Echo Dot.
Echo Bot users can call and message friends and family handsfree (Leigh & Pershing,
2019). This is an essential feature in this device that can help all consumers irrespective of their
economic background to make use of regular phone applications such as messaging and calling
in a very safe and convenient way. For example, if an individual is driving, then they can use the
Echo Bot as a hands-free-device to make calls safely.
Amazon is one of the most significant retail stores in the world, and it has been able to
achieve this feat by selling its merchandise over the internet. This is the same strategy the
organization should use to promote the sale of Echo Dot in all targeted markets, especially the
developing markets. This strategy has been proved to be successful over the last ten years due to
the increased and advanced use of technology in all countries over the world (Leigh & Pershing,
2019). Today, billions of people located in different countries across the world can make
purchases over the internet and be assured that their products will be delivered to their doorstep
within the agreed timeframe.
To reach more people, Amazon can start using social media marketing to ensure that their
targeted consumers know that Echo Dot is in the market as well as understanding all the services
they can get from the products. Social media marketing is an essential aspect of e-commerce
because these are sites that are visited by billions of people on every single date. Social media
sites such as Twitter, Instagram, YouTube, and Facebook can be used effectively to market and
to sell products such as Echo Dot to the targeted market in the most effective, efficient, and costfriendly manner (Leigh & Pershing, 2019). The organization can also open up stores in these
developing nations that can be stoking the Echo dot as well as other products from Amazon.
These stores should cater to the people that do not want to buy products over the internet.
Literature review
Product energy efficiency
The Echo Dot series three consumes between 2W and 4W of power which is less than
$.13 cents a month and less than $5 over the course of a year in the United States. (KingsleyHughes, 2020)
The speaker could improve by using a charging dock included that you can shut off when
it doesn’t need power. Having a charging dock included would be more affordable for the users
especially in low-income places in India struggling to pay their bills. The clock currently would
shut off and not allow commands when it isn’t plugged into a power source, so if the device held
a charge it could still do everything it can do being plugged into the wall and not spend a penny
unless it’s charging. Not only would having a doc included be more energy efficient but the price
would be cheaper to run it.
Product affordability
Today, Amazon’s Echo Dot series three sells for an average cost of $35- $50 in the
United States. According to research conducted by InfoScout, the average customer purchasing
an Echo Dot has a yearly income of $80,000 or higher. The product currently is not in the price
range for low-income economies but, there is always room for change. In order for the device to
be more affordable in India, Amazon could remove certain features of the item to reduce the
cost. The average yearly income in India is A good portion of India is still dealing with poverty
today. Some people don’t have electricity
Marketing Orientation Amazon Echo Dot
In order to expand further into emerging markets such as India. Amazon needs to
promote the “everyday” benefits of Alexa that improve people’s lives. It will be crucial in the
sales promotion of the product to promote the everyday benefits that, Alexa provides with its
plethora of useful day-to-day applications to assist with increasing the convenience in your life,
from making a payment on your credit card to checking the wait-time at your terminal prior to
your flight, or alexa showing the wait times and cash availability at atms in India. Alexa is
capable of providing very useful assistance to all types of people in almost every situation. But it
can significantly elevate people’s everyday tasks. According to the India Economics Times the
average wait for ATMS around major cities such as Deli, Mumbai and Chennai have waits
upwards of 50 minutes just to withdraw cash. Finding an ATM in India is harder to find even as
dependence on cash persists, thanks to tighter regulations and demonetization of India as of 2020
that make it more costly to run the machines. According to the International Monetary Fund
India has the fewest number of Atms per 100,000 people in the world. That accorded with India
being one of the most populous counties on the planet. Cities like Delhi having close to 19
million people within the city is a recipe for chaos. Atms in major cities only 60% of the Atms in
major cities such as Deli and Mumbai only report 50% cash availability meaning half of the atms
in the city have zero cash on hand. A product Amazon Alexa Dot is portable and would have the
ability to inform its users of wait time at ATMS through app data like CashOrNoCash
throughout cities such as Mumbai with a simple question. Potentially saving Indian citizens
hours of waiting time and travel times before they visit ATMS.
Amazon Alexa Dot is plagued with having a single primary competitor. This results in
the pricing of the Alexa products being based around the price of the Google Home Assistant.
According to a 2019 consumer intelligence research report Amazon’s Alexa products maintain a
70% market share. CIRP says Google Home now has 25% of the market and Apple HomePod
has 5%. This shows that Amazon’s Alexa dot products are superior to goggles home assistant and
apples ihome. Google’s Home Assistant has been plagued with failed marketing campaigns and
low sales numbers similar to google glass but less innovative. Amazon’s real strength is its
supply chain and distribution access that it has to Amazon’s network. This is how it will
penetrate India’s emerging market faster than its competitors like google or apple. This July
Amazon has announced that it will add 10 new warehouses this year to bolster its count of over
60 warehouses across 15 different Indian States. The new warehouses will be built in places like
Mumbai and Delhi where the majority of the growing population is located. They were able to
build there after having to face regulatory hurdles from the Indian government prior its entry to
the market years ago that companies like google and apple have yet to really face. Amazon for its
Alexa Echo product has consistently and aggressively discounted its Echo Dot to maintain and
grow its share of the smart speaker market especially during prime days. During those days
Amazon’s Echo dot was the top seller. Google has yet to do anything special such as special
discount days to its smart speaker the google home assistant even domestically. Amazon’s Alexa
dot is the only smart speaker that has both the distribution in palace and following to have any
shot in an emerging economy like India.
Amazon Echo Dot and Ansoff Matrix Marketing Model
Huang & Lin, 2017 examined the level of competitiveness and cooperation in the field of
IoT with three tech giants, including Amazon, Samsung, and Google. According to the article,
Amazon has established a strong marketing foundation to promote its products’ awareness across
the different markets, including low-income countries. Besides, the product is making entry into
low-income countries with the aid of third-party applications such as Uber. The company also
offers a subscription deal of $99 per year, allowing free shipping to reach more customers, even
those in low-income countries. Furthermore, Amazon is making use of physical stores to improve
its sales in low- income countries. According to Huang& Lin (2017), physical stores play an
essential role in creating an impulse to purchase Echo devices and even other home auxiliary
devices.
The article authors use several marketing theories to assess the Amazon Echo dot. The
critical model that stands out is the Ansoff Matrix Marketing tool. This marketing model uses a
2×2 matrix structure representing a company’s choices in making a profit or income. As such, the
literature examined the Amazon Echo dot using four main components, including; market
penetration, product development, market development, and diversification. In the case of market
penetration, Amazon has utilized the Christmas holidays and prime membership to increase its
sales. For product development, Amazon has launched a new generation of the Echo at a low price,
making it more affordable in low-income countries. As such, the lower price allows the lowincome earners to experience the smart home. In terms of market development, Amazon uses
physical stores and third-party auxiliary vendors to sell to the product in low-income countries.
The company also uses the concept of diversification to open Alexa’s API to allow the application
of other smart devices, including the Echo Dot.
Amazon Echo Dot Network Marketing Model
When looking at the Amazon Echo Dot there are many ways this product can be marketed.
When specifically looking at spreading it through emerging markets the opportunity to spread
through network marketing is promising. By giving customers incentive to recommend the
Amazon Echo Dot to their friends or family, Amazon store credit will be given. This is an example
of a referral program which is a type of network marketing. Other companies like uber and dropbox
use referral incentives to spread products through present customers. Uber gives every customer a
referral code and when someone’s code is used that customer will receive uber ride credit. For
every customer that executes a recommendation purchase a $50 credit will be given to them to use
on their Amazon prime account. Word-of-mouth through social circles are big Factors when
executing network marketing. When consumers talk about their experience with the Amazon Echo
Dot it’s appeal to more consumers will grow. When the product is recommended to more
customers by customers, store credit will be given. This is giving the customer more incentive to
purchase products off of the Amazon website. This is especially important throughout emerging
markets because of the lack of financial security within them. This is giving consumers an
opportunity to expand the amazon echo dot product for amazon, while the customers who do these
recommendations are getting store credit to help pay for living essentials. (Marner, 2017)
When looking at Other companies that use network marketing and specifically customer
referrals major corporations such as Uber and dropbox offer similar incentives. We’re looking at
Uber, they give their customers incentives to share a referral code that will credit their account for
more Uber rides. Dropbox offers a similar method as they offer their customers 500 mg of extra
storage space for every customer referred to their software. Again both methods are very successful
when trying to use network marketing to spread their product. The company acorns also uses this
incentive program as for every customer recommended five dollars will be invested into their
account. All three examples are ways that network marketing allows companies’ product expansion
to flourish. Many times companies will look past how beneficial word of mouth marketing and
incentives can help bring revenue to a company. (Marner,2017)
Product multipurpose
The device cant change but the features are accessible and allow the user to decide what
they want whether it is the weather report, radio, music or to set an alarm. You can access the
podcast and listen to talk shows such as Jimmy Fallon all by just telling to device what you want
by saying “Alexa” and then your demand. The voice command makes the user’s life easier by
not having to do the command themselves. One common use is to command the app to set a
timer or alarm so say a user was in the process of cooking with their hands all dirty, they don’t
have to touch anything they just could say “Alexa set a timer for twenty minutes.”
Product portability
Inside the Echo Dot series, three box include the echo dot, the cord for charging, and the
quick start guide booklet. The device has to always be plugged in and the only way to make it
portable and not plugged in is to buy add ons such as special batteries or a holder that keeps a
charge so that you can take it outside but, it still needs to be within wifi range and have some
form of power to operate. The echo dot in the original package would not be suitable for
traveling using outdoors such as hiking or at the beach. The device itself is great for inside
householders to use but not so much outdoors.
Product quality
The quality of the device is very well constructed. One major flaw that makes it less
available to use outside say near the swimming pool plugged into an outlet is it’s not waterresistant. Most speakers today have a water-resistant shell that makes it easy to be portable but
this one is not. The Echo dot has a clock on the face with a thin cloth mesh covering over. The
rest of the device is made from sturdy hard plastic with four buttons on the top making it very
simple to use.
Product simplicity
The buttons are not only a simple feature but also the charging and setting up the clock
and connecting the speaker to a smart device such as a phone, computer and tablet are not too
complex. The first step after opening the box is to plug the Echo Dot into an outlet using the
cord provided inside the box and then downloading it to the Alexa app to either a smartphone or
tablet connected to wifi. Once the light-up ring once a user says “Alexa” will appear and give
instructions to connect the user’s device to the Echo Dot.
After the app is downloaded you must create an account and attach what form of music
using either Spotify, Amazon Music, Apple Music, Sirius XM radio, and other apps such as
podcasts and the news and weather reports. The light-up ring once a user says “Alexa” will
appear
how the institutional theory will allow the amazon echo dot to flourish in emerging
markets.
The Amazon Echo Dot is a small smart speaker that forms part of Amazon’s new and
popular collection of smart home devices. Over the last few years, smart home devices have
emerged owing to the rapid evolution of technology particularly in the Internet of Things (IoT).
Smart home devices have been developed to cater to the rising demand for smart homes.
Seamless integration of smart devices such as televisions, fridges, automatic gates among others
has necessitated the use of a voice-controlled device such as the Amazon Echo dot. The device
has been designed to enable users to control smart homes using voice commands, as well as
make calls and stream music.
This device has seen success in developed markets. However, in emerging markets, the
narrative is somehow different. Emerging markets are those economies that are on the transition
from a developing economy to a developed economy (Marquis & Raynard, 2015). These markets
are characterized by market volatility, growth and investment potential, economic growth rates,
and increasing income per capita. In such markets, for a product such as the Amazon Echo Dot
to thrive, Amazon needs to adopt strategies and theories that support such. This paper focuses on
how Institutional Theory can be instrumental in ensuring the success of the device in emerging
markets.
Institutional Theory from an organizational point of view asserts that the environment in
an organization has the potential to heavily influence the development of prescribed structures in
an organization (Tina Dacin et.al, 2002). This is as opposed to relying on market conditions to
institute effective strategies for the organization’s structures. For the organization to maintain
success, the institution’s environment requires new strategies that will shape it to accommodate
the needs of emerging markets. In essence, a product such as the Amazon Echo dot requires the
organization to constitute changes and strategies within itself to create a conducive environment
for the strategies to succeed. The theory proposes the strategic shaping and leveraging of sociopolitical and cultural institutions within an organization’s external environment (Marquis &
Raynard, 2015).
According to Marquis and Raynard (2015), emerging markets are projected to account
for half of the world’s GDP based on purchasing power. In this sense, with the emerging markets
having a high purchasing power, products such as the Amazon Echo dot have the potential to get
more market. This creates opportunities for Amazon to effect strategies within itself that will be
tailored to expand into such markets and compete with similar products in the market.
Institutional theory focuses on defining legal, moral, and cultural boundaries while
distinguishing acceptable and unacceptable behavior (Scott, 2014).
Emerging markets, as stated earlier, have several political, legal, socio-cultural, and
technological factors that constitute a different environment as compared to the developed
markets (Marcus & Raynards, 2015). The institutional theory proposes a holistic approach for an
organization to accommodate these factors in its operations to expand seamlessly into these
markets. The political factors include political stability, government interventions all of which
affect the operation of Amazon in these markets. The socio-cultural factors relate to the cultural
beliefs and cultures across these markets. These factors consider how certain products,
functionality, and features are perceived and embraced by these emerging markets. In so doing,
Amazon will be in a position to streamline its operations in a manner that respects and considers
the socio-cultural dynamics of a particular market. Technological factors include access to
reliable internet, communications infrastructure, and availability of compatible devices and
appliances. By considering these factors, Amazon will be laying a foundation that will help its
efforts to expand into these markets. By considering these factors, Amazon will be in a position
to tailor its approach to sell the Amazon Echo in these markets.
Amazon aims at globalizing its operations and this is seen by its efforts to expand into
emerging markets. However, these markets have their own unique rules and norms. For an
organization to expand into these emerging markets, organizations such as Amazon need to
conform to the rules and belief systems prevailing in the environment (DiMaggio & Powell,
1983). In so doing, the company will be in a position to tailor their approach to ensure it sells the
Amazon Echo Dot in these emerging markets.
Consumer taste and preferences are determined by various factors such as price, quality,
and product simplicity. Consumers are attracted to the art of simplicity attached to products.
According to Dieter Rams “Good design is as little design as possible”. The art of creation
involved in designing the Amazon Echo Dot include simplicity and highlights important aspects
that the customers consider when buying the product (Neil & Tobias, 2018). The Amazon Echo
Dot has achieved a continuous thinking concept since its introduction which has helped in
creating a successful product. Moreover, it has gone through several redesigning which includes
animal prints and designs. The Amazon Echo Dot has a voice-controlled feature that uses Alexa
which offers smart assistance. The feature helps in playing music, news reminders, skills lists,
and alarms. The launch of kids Edition was a milestone because it created a kid-friendly.
Besides, Alexa offers to support children in reading hence encouraging them to be better and
expand their experience through games music, and skills. The Amazon Echo Dot is a standalone
device that has various features that grant a wide range of options aimed at bringing fun to life.
However, it would be easier for customers if the device would allow them to directly access the
options they want without going through to other applications.
Product Portability
The portability of electric appliances weigh less is an important consideration for
customers. Customers prefer a more portable appliance due to the convenience they bring about.
In developing economies the demand for simple unique devices is on the rise; however,
customers look at the basics such as can the devices operate independently without being
plugged in the charge or does it have peripheral accessories that can store charge. The Echo Dot
comes with a portable battery base which helps its mobility since it has no power storage. The
battery base contains one Lithium-ion battery and has an intelligent power management system
which makes it possible for users to plug in the Echo Dot for long hours without damaging it.
Moreover, the battery base is charged using the Echo Dot adapter and has up to five hours of
charge time (Yang, & Lee, 2019). With the advancement in technology and an increase in
internet connectivity in developing economies through the easy access of smartphones, the
customer can create their WI-FI Hotspot which is used on the Echo Dot. Creating an in-built
battery will reduce the cost customers have to spend on buying the power attachments making it
affordable for developing economies. Moreover, enabling the gadget to work offline would
reduce its maintenance cost by cutting the cost for WI-FI hence increasing its demand in
developing economies.
Conceptual Model Section
Product Quality
The quality of the device is a very important part in serving the needs of low income
customers in emerging and developing economies. Most of the customers we are targeting are
living in harsh conditions such as not having a lot of money and sometimes not having
electricity. In these environments, the product must be durable but doesn’t have to be made out of
the highest quality of plastics, just able to be reasonably made. These specific customers aren’t
looking for luxury items, they are looking for something basic that fulfits their wants and needs.
The product’s current physical features have a thin mesh covering around the sides and the top
and bottom of the item. The mesh is not a deal breaker for people in emerging and developing
markets so our group advises Amazon to remove the mesh, this will also result in lowering the
cost. The top and bottom of the Echo dot is mainly made out of a thick plastic, along with four
buttons. At the top there is also a light built in that lights up when it hears “Alexa.”In
undeveloped economies, having a light built in is not necessary and could be taken away. Instead
Amazon could just keep the feature of hearing a command and making a noise so the user knows
the device detected their command. Taking away the light will also reduce the price and make it
more affordable. One of the benefits of the device is it having the ability to operate just by
demands making it very simple to use.
Product simplicity
The simplicity of Amazon’s echo dot is in its feature that the experience of using it is
almost entirely hands free. Although it has a volume and power on buttons the users experience
is entirely voice based. The set up is also very simple after the package is opened all one needs to
do is charge the product to use it. You wait for the light-up ring to appear and once a user says
“Alexa” will appear and give instructions to connect the user’s device to the Echo Dot.
After the app is downloaded you create an account and you’re ready to go. Consumer electronics
have witnessed a stark leap forward in technology in the last half century. In this time period,
computer microchips have become exponentially more powerful and some can even compute
billions of operations per second. This sharp increase in processing power has allowed computer
microchips to tackle incredibly complex tasks. With this we have entered an era of AI driven
technology. Amazon now has access to technology to simplify products such as the Echo dot.
With a more simple product it is easier to sell the Echo dot in forgien markets such as India. For
example if you integrate an AI to learn the behavior habits and routine of people so it can
simultaneously predict users patterns. This would give the user the ability to work independently
of the applications. For example instead of having to pull up daily applications such as spotify
for a daily gym routine. You could say “Alexa, gym routine”. It would automatically pull up
spotify and any other applications such as a step counter etc without having to independently
access them. With the use of AI driven technology it could greatly simplify its process and make
it easier to use for users in emerging economies.
Product portability
In low income developing economies, people are grateful for having the basics of a
product. If a family doesn’t have much money, the chances they are looking for the Echo dot are
slim to none. The device has to always be plugged in and the only way to make it portable and
not plugged in is to buy add ons such as special batteries or a holder that keeps a charge so that
you can take it outside but, it still needs to be within wifi range and have some form of power to
operate. The echo dot in the original package would not be suitable for traveling due to it only
functioning when plugged into an outlet and connected to wifi. One way the product could be
more portable is using a different way to charge the battery; making it more mobile.
Product energy efficiency
The Echo Dot series three consumes between 2W and 4W of power which is less than
$.13 cents a month and less than $5 over the course of a year in the United States. (KingsleyHughes, 2020) The speaker could improve by using a charging dock included that you can shut
off when it doesn’t need power. Having a charging dock included would be more affordable for
the users especially in low-income places in India. The clock currently would shut off and not
allow commands when it isn’t plugged into a power source, so if the device held a charge it
could still do everything it can do being plugged into the wall and not spend a penny unless it’s
charging. Not only would having a doc included be more energy efficient but the price would be
cheaper to run it. The option to place a small solar panel on the top of the Echo dot is a viable
option. This not only would eliminate the use of power from a charger and or battery but recreate
the long-term power source by using sun energy. Simply placing the echo dot on your window
will allow it to be powered up efficiently. Not only will the solar panel charge the echo dot the
charge will be held for a longer period of time. Longer lasting battery life will limit the amount
the Echo needs to be in the sun, resulting in a short amount of time to charge. Another option
that will maintain energy within the Echo Dot is having wireless charging. Portability is crucial
in emerging marketing as some households may not have outlets. By including a wireless
charging station the amazon echo Dot will hold charge.
Product multipurpose
The Amazon Echos device features are accessible and allow the user to decide what they
want such as play music, check the weather, make to do lists, sport and news in realtime and
playing audiobooks.You can access the podcast and listen to talk shows through is unique
command such as “Alexa play Joe Rogan”. It works off of wifi and it must be connected to it in
order to function. One common use is to command the app to set a timer for example when
cooking when a user hands are dirty, they don’t have to touch anything they just could say
“Alexa set a timer for twenty minutes”. Each amazon echo dot is made out of a special polymer
plastic material. Derived from materials like coal, gas, oil, and different minerals and plants.
Echo Dot is a multitude of simpler finished products working together to make a final product. It
is a combination of two circuit boards, a metal base plate, a speaker, and an outer plastic
housing. The circuit boards are composed of different chips, including a digital media processor,
SDRAM, flash memory, wifi and bluetooth chip, digital audio convertor, LED drivers, lowpower stereo ADC, and dual positive-edge-triggered D-type flip flops. This brings us to the
question: how can Amazon make this already simple product cheaper and still multipurpose?
For Amazon to lower the cost of the unit and still maintain its multi purpose usefulness is simply
to make it cheaper. Eliminate some of its components for emerging markets. Such as take off the
metal base plate, lower the SDRAM chip to 10 RAM and take off the LED drivers and use a
cheaper lightweight material plastic non polymer based plastic for its construction. We would
recommend using synthetic thermoplastic material vs a polycarbonate. It’s cheaper and easier to
get especially when producing in China. Taking away these very western luxuries will lower the
cost for cheaper access to emerging markets.
Product affordability
Today, Amazon’s Echo Dot series three sells for an average cost of $35- $50 in the
United States. According to research conducted by InfoScout, the average customer purchasing
an Echo Dot has a yearly income of $80,000 or higher. The product currently is not in the price
range for low-income economies but, there is always room for change. In order for the device to
be more affordable in India, Amazon could remove certain features of the item to reduce the
cost. The average yearly income in India is A good portion of India is still dealing with poverty
today. Some people don’t have electricity. By changing the material to a cheaper more affordable
plastic, the amazon echo Dot can be purchased by many throughout emerging markets. This will
not only bring the production costs down, but by the product becoming more available it will
allow for an increase in sales throughout these emerging markets. This strategy of making it
more affordable is highly recommended. Not only by changing the materials of the Amazon
Echo Dot, but taking some of the functions away too will allow the cost to decrease. Instead of
having the Dot as a luxury Item that provides music and online purchasing, make a dimmed
down Amazon Echo Dot that only provides vital information like weather, time, and news. This
will appeal more to the needs of these emerging markets rather than a luxury item.
Research Methodology
Our case study is about the Amazon Alexa Echo Dot series three. Our group chose this
product for our study because we are all located around the United States and one of our
groupmates is located in China and we all had a good understanding of Amazon as a brand.
Amazon is one of the leading employers in the state of new hampshire and it is one of the worlds
fortune 500 companies.Over the last few years Amazon’s Alexa products have been a huge hit,
so our group thought it would be a great opportunity to conduct market research on them.
Currently the product is popular in developed economies so our group came up with
recommendations on how Amazon could target undeveloped economies for a more affordable
price.
Product Quality
The quality of the device is a very important part in serving the needs of low income
customers in emerging and developing economies. Most of the customers we are targeting are
living in harsh conditions such as not having a lot of money and sometimes not having
electricity. In these environments, the product must be durable but doesn’t have to be made out of
the highest quality of plastics, just able to be reasonably made. These specific customers aren’t
looking for luxury items, they are looking for something basic that fulfils their wants and needs.
We would recommend using synthetic thermoplastic material vs a polycarbonate. It’s cheaper
and easier to get especially when producing in China. Taking away these very western luxuries
will lower the cost for cheaper access to emerging markets. In an article from Quartz Africa the
country was having problems with its pavement system as much of the cities are dirt roads. It
looked for new ways to produce a cheap effective payment. It turned its attention to a young
untrained engineer. Using knowledge learned informally from engineers he had worked with, he
came up with a production process that mixes sand with shredded thermoplastic to make onesquare foot pavement blocks. Essentially he was turning thermoplastics into roads because they
had ample supply from recycled bottles. Gravel and payment were too expensive so
thermoplastics were used to pave Accra the city’s capital. We observed that thermoplastics are so
readily available such in the case it was used to make roads in Africa when they couldn’t afford
gravel, plus our data shows that cutting the polymer based plastics for thermoplastics would
lower the cost to make the Echo more marketable to emerging economies.
Product simplicity
Consumer taste and preferences are determined by various factors such as price, quality,
and product simplicity. Consumers are attracted to the art of simplicity attached to products.
According to Dieter Rams “Good design is as little design as possible”. The art of creation
involved in designing the Amazon Echo Dot include simplicity and highlights important aspects
that the customers consider when buying the product (Neil & Tobias, 2018). The Amazon Echo
Dot has achieved a continuous thinking concept since its introduction which has helped in
creating a successful product. Moreover, it has gone through several redesigning which includes
animal prints and designs. The Amazon Echo Dot has a voice-controlled feature that uses Alexa
which offers smart assistance. The feature helps in playing music, news reminders, skills lists,
and alarms. The launch of kids Edition was a milestone because it created a kid-friendly.
Besides, Alexa offers to support children in reading hence encouraging them to be better and
expand their experience through games music, and skills. The Amazon Echo Dot is a standalone
device that has various features that grant a wide range of options aimed at bringing fun to life.
However, it would be easier for customers if the device would allow them to directly access the
options they want without going through to other applications.
Product portability
The portability of electric appliances weigh less is an important consideration for
customers. Customers prefer a more portable appliance due to the convenience they bring about.
In developing economies the demand for simple unique devices is on the rise; however,
customers look at the basics such as can the devices operate independently without being
plugged in the charge or does it have peripheral accessories that can store charge. The Echo Dot
comes with a portable battery base which helps its mobility since it has no power storage. The
battery base contains one Lithium-ion battery and has an intelligent power management system
which makes it possible for users to plug in the Echo Dot for long hours without damaging it.
Moreover, the battery base is charged using the Echo Dot adapter and has up to five hours of
charge time (Yang, & Lee, 2019). With the advancement in technology and an increase in
internet connectivity in developing economies through the easy access of smartphones, the
customer can create their WI-FI Hotspot which is used on the Echo Dot. Creating an in-built
battery will reduce the cost customers have to spend on buying the power attachments making it
affordable for developing economies. Moreover, enabling the gadget to work offline would
reduce its maintenance cost by cutting the cost for WI-FI hence increasing its demand in
developing economies.
Product energy efficiency
The Echo Dot series three consumes an average of 2W and 4W of power a day, which
might not seem like much but adds up in price over time(Kingsley-Hughes, 2020). Our group
suggests that Amazon should include a charging dock that you can shut off when it doesn’t need
power or consider also adding a small solar panel on the top of the Echo dot is a viable option.
This not only would eliminate the use of power from a charger and or battery but recreate the
long-term power source by using sun energy. In an article published by National Geographic, a
motivated woman named Ajaita Shah discusses her company “Frontier Markets” and how she
created a safer and more affordable energy source that provides light for low income individuals.
Her idea stuck from a young age growing up in Jaipur, India and seeing first hand how
dangerous kerosene candles are and how they create many fires throughout low income areas.
After she graduated from Tufts University she invented a solar powered LED lantern that can be
used for cooking, reading and working out in the field at night. She also mentions how the
feature of solar power allows citizens with light even with the high number of frequent power
outages they face. Shah sold over 85,000 solar powered lanterns as of 2015 with half of her
customers having no access to the grid. Hearing about Shah’s success of using solar power to
generate products, supports our group’s advice that adding a solar panel to the Amazon Alexa
would be more energy efficient for low income countries like India.
Product multipurpose
The Amazon Echos device features are accessible and allow the user to decide what they
want such as play music, check the weather, make to do lists, sport and news in realtime and play
audiobooks and an alarm/timer. Our advice for Amazon to create more multipurpose in low
income economies such as India would be to add necessary tools such as reading, writing and
learning languages. Features Amazon already includes such as a shopping list is not necessary to
these low income consumers. Throughout the study “Learning English language through mobile
phones” Dr. Shoddhudhan, discusses the benefits of how listening can enhance one’s ability to
learn the English language. He says “if students can listen carefully then he or she will learn
pronunciation of the words, construction of the sentences, vocabulary skills etc. “ By Amazon
adding a feature that provides free audiobooks to learn the English language this could be a
major attribute for the Amazon Echo Dot and its popularity to emerging markets specifically
india. As the English language is becoming more and more of a universal language this would be
very appealing to parents for their children throughout India and more of need versus a necessity.
By amazon using this as a way to market to such emerging markets we suggest they stress the
many benefits of learning through audio.
Product affordability- Micheal
Today, Amazon’s Echo Dot series three sells for an average cost of $35- $50 in the
United States. In India the average income $2,187 is according to a study by
tradingeconomic.com. In order for the device to be more affordable in India, Amazon could
remove certain features of the item to reduce the cost. When looking at how the Amazon Echo
can become more affordable taking some features away from it. A great example of product
simplification that is proven to work is the cell phone jitterbug. Jitterbug has become a popular
cell phone for elderly people because of its simplicity. It is especially popular amongst elderly
people because of the simplified menu. Features that are left out in traditional smart-phones are
left out. The easy to read buttons and extra loudspeaker are key features that make the cell phone
simpler. The jitterbug is only 74.99$. Our group suggests that amazon echo dot takes away
features like music and such as a shopping list. And keeps the product to strictly news feeds,
browser and educational .
Writing Findings & Analysis
Introduction
After much research and analysis of how the Amazon Echo Dot from Amazon can appeal
to emerging markets a summary and analysis of whether the country is a right fit for not only the
product itself but for the company is crucial to know. In order to know if this product will be the
right fit for this country much information is needed. The first thing that will be covered
throughout the findings and analysis section will be India’s demographics. The demographics
include the country’s population, income, economic growth etc. The next summary of
information covered will be the product level findings. This will state whether or not the
Amazon Echo Dot is already sold throughout the country of India, and identify also the products
demand and interest will be thoroughly reviewed. The next section will cover the country level
findings this includes the business regulations and policies that are held within India. And the
final piece in our case study findings will be our review of whether or not the information
present supports our argument of why Amazon should make adjustments to the Amazon Echo
Dot in order to appeal to the emerging market of India.
Study demographic findings
In our research work we used India as a country of our study. Based on our study we found
that India is the second largest country based on population in the world. . After conducting
intensive research our group discovered that India’s population has grown .99% since last year in
2019 and the population is expected to keep growing at an increased rate (macro trends,2020). The
Coronavirus has of course caused many losses in the number of deaths, but their population is still
growing persistently. Our group discovered that the average age in India is 29 years old, which is
the perfect age group to target the Amazon Echo Dot series 3. The economy on the other hand
has been hit very hard due to the lockdowns enforced to keep the virus in control, shrinking their
economy by 23.9%(Yasir & Gettleman, 2020). Although their shrinkage percentage is drastic,
India is expected to bounce back as the country reopens and the virus is better controlled leading
to the economy opening up more. There are growing middle income consumers in the market even
though it is still an emerging market, and still has a lot of growing to be done. India’s income per
capita was $6,829 in 2011(world population review,2020) and today is expected to increase which
will help develop the country in future years to come.
Product level findings
Amazon is continuously seeking market dominance in technology which is evident from
the growing global presence. The company has expanded its Echo Dot line up, the demanded
speaker range, in India in 2017 (Kharpal, 2017). The launch of the Echo speaker in 2017 in India,
along with Japan, marked Amazon first foray into Asia with these products. Amazon’s entry into
the Asian market was primarily attributed to the increasingly growing crowd of the smart speaker
and intense competition from Apple Homepod and Google Home (Kharpal, 2017). Besides, the
choice of India as the first market for the Echo family in Asia is attributed to its huge demand for
Amazon products (Jonnalagadda, 2017).
Following the launch of the Echo dot in 2017, the product received positive reactions from
the consumers leading to huge demand and high revenues from the sale of the product. Following
the success of the product in the country, Amazon has recently launched a variety of its Echo
products in the country. The recent launch has added a twist of customization where the product
is precisely tailored for the Indian market. Ideally, the company has recognized India as one of the
biggest opportunities for its growth hence deciding to fulfill the needs and demands of over 1.3
billion customers in the country. The new Echo dot products launched in the country have
addressed the most demanded need, which is portability (Koksal, 2020).
The introduction of the portable Echo dot products in the country proves the high demand
for the Amazon speakers in the country. With the company fulfilling the requested portability
feature, it has a better ground at attracting more customers in the country and also gaining a huge
market share in the smart speaker market ahead of Google and Apple. As such, a continued focus
on the Indian market would increase the chances of the company’s success globally.
Country level findings
When looking at India it is best for it to be understood as several interconnected markets
where regulatory and investment policies vary from one to the next. Among those regions there
are 29 states and seven other territories so it’s hard to be perceived. When it comes to creating a
business throughout India it can be done through a speedy process that involves binding the
application of the permanent account number and the tax account number with the act of
bringing the ministry of corporate affairs along with it. This entire process takes several weeks
which include many fees depending on the scale of each business. Foreign investors have
several options to enter depending on the type of business. Many of those include representative
office branch office, liaison office, private Limited company, limited liability company. If the
company is private or public companies can be formed with limited or unlimited liability.
Though the preferred form into India is the limited liability coverage. Foriegn companies can set
up offices in india selling or buying products, finding affiliate research companies in india, for
working with india companies, and being product into the country and out of the country.Two
different types of offices can be set up one being a project office that complete various tasks and
a liaison office that can do written business but not promote a product or service. (Mehta,2019)
Case Study Findings
Our case study is about the Amazon Alexa Echo Dot dealing primarily with the emerging
market in India. The Case study supports our arguments that changing the Echo’s product
quality, portability, multiproupus, simplicity and energy efficiency can help market the product
to India. By changing the product quality from the plastic that is currently used to thermoplastics.
The product must be durable but doesn’t have to be made out of the highest quality of plastics,
just able to be reasonably made. Making the product of chinese cheap thermoplastics will lower
the cost for emerging markets. Even consumers in emerging markets are attracted to product
energy efficiency. We suggested in this part of the case study that Amazon Echo add a small
solar panel for the charging dock. In places like India access to efficient power supply is an issue
for very many. This would eliminate the use of power from a charger and or battery but recreate
the long-term power source by using sun energy which is plentiful in most of India.By Amazon
adding additional product multipurpose, a feature that provides free audiobooks to learn the
English language this could be a major attribute for the Amazon Echo Dot and its popularity to
emerging markets specifically india. As the English language is becoming more and more of a
universal language. The majority of the propositions in our case study are significant.
Conclusion
Research Recommendations
With recent advances in technology social conversational agents are becoming
more prevalent such as the Echo dot. Our group Amazon Alexa Echo dot was able to
find other research articles that were similar to ours. One of the case studies we have
found conducted by Indian Institute of Foreign Trade, New Delhi that shows an
American Company penetrating the emerging market in India was Kellogs cereal.
During the mid 1990’s Kellogg’s was the market leader in cereals worldwide and they
decided to capture a largely untapped market – India. They spent months conducting
qualitative research in order to be one of the first American companies to target India.
The concept of having cereals for breakfast was alien to non westerners and Kellogg’s
tried to change that. Their flagship product Corn Flakes was very successful in other
markets and they wanted to replicate that success in India. They ran many series of
marketing campaigns to build brand awareness and convey to the consumer that
cereals make a great breakfast. But with all their campaigns their introduction of cereals
to the Indian market failed. The marketing teams failed to see that milk was not a part of
the Indian diet as was consumed more by western cultures in addition the indian
breakfasts depending on the region was traditionally a hot breakfast. They changed
their strategy and changed their pricing strategy and cut down the cost on materials to
change from premium pricing strategy and emphasizes how important it was to start
your day healthy by advertising campaigns showing dancers and yoga instructors eating
cereal which made their campaigns in india turn from stagnant to profitable. In 5 years
market share grew from 150 million to 600 million. We can parallel this to our Amazon
attempt to penetrate the market for smart speakers in India. While Amazon has not
failed to enter the Indian market we suggest that they run a series of campaigns similar
by using public figures in Bollywood and lower their product quality by cutting down on
material cost like Kellogs did in order to more easily enter and capture the Indian market
to be the next kellogs of smart speakers.
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%82%AC%E2%84%A2S%20JOURNEY%20IN%20INDIA%20FROM%20BEING%20B
LAND%20TO%20SCRUMPTIOUS%20IN2/KELLOGG%C3%A2%E2%82%AC%E2%84%A2S%20JOURNEY%20IN%20INDIA%
20FROM%20BEING%20BLAND%20TO%20SCRUMPTIOUS%20IN-2.pdf
Study limitations
:Explain the existing limitations in your study including geography, market size, research
methodology, time duration & financial challenges for field research.
Although our group was able to gather scholarly studies and conduct intensive research
to create our study, we did have to adapt and work around our handful of limitations that came
our way. Our major limitations were our time duration, financial challenges, working remotely and
not being able to conduct primary research in our test country; India. Our study took place over
the course of only a few months adding up to one college term semester. The course normally
meets in person and allows groups to bounce off ideas and meet up on campus to complete the
sections of their research paper, but this year was very different. Due to the global pandemic
occurring known as COVID-19, we all had to work remotely which was a big adjustment. Our
group consisted of four students at Southern New Hampshire University; Gabriella, Peter, Micheal
and Cheng. Each of the four teammates was located in different states and one member was
even collaborating from another country. Having to conduct intensive research and having to work
around time zones was not easy to say the least. We also were not able to physically go to our
chosen country to gather feedback and hear first hand what our targeted population wants and
needs. The country we wanted to test our study on to see how we could make the Amazon Echo
Dot series three accessible to low income communities. India today is suffering from lack of
education, limited resources such as clear water and some homes don’t have electricity. We were
limited to connecting with people from India and had to base our entire research paper off of
scholarly sources that connect to our recommendations to make our product more accessible in
India. Next, we had no form of income to sponsor our research, everything we had was found
from what our university; SNHU offers through our database and only free databases and relevant
research that was free of charge. Lastly, we had to use secondary data because it was not
possible to travel to India and conduct our own research especially during the pandemic.
Reflection:
The research provided an insight into the device Amazon Echo Dot. I gained the
knowledge of Amazon Echo Dot-controlled voice that operates on Alexa to offer smart guidance
that is useful in playing songs, the remainder of news, art manual, and alerts. The device is
powered by lithium batteries which are rechargeable by an adaptor. I found out the experiment
still needs some modification on the power system which is not well developed making it a
necessity of improving it in a future experiment. The target is based on the developing world,
therefore, there is a need to ensure that the gadget is fitted with a cellular network system to
improve internet connectivity to combat the insufficient internet coverage of these regions. The
development of the one for young children should come with urgency since it can help children
to develop their talent. I am convinced beyond a reasonable doubt of the simplicity it comes
with. On group research, the work often comes with good quality if the teamwork is well
incorporate here. In the building of the Amazon Echo Dot, the teamwork contributed to the
splendid result that was obtained. The starting from the instructors and the supervisors guided on
the practical framework that needed vast knowledge and experience than anything else. The
financiers who are still part of the team made a great contribution as well. Feeling thankful and
not showing is compared to packing a gift and fail to present it. I am grateful to the family
members and friends who supported me in my research. The supervisor for the best guidance to
see the success of the project. The institution for providing us with equipment and other useful
resources. The fellow students and the financiers who funded the project.
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