Back in the early days of e-commerce, retailers timed their sales push to coincide with seasonal sales patterns to drive consumer spending and boost revenue.
Retailers typically helped spring promotions and holiday season discounts, making summer a quiet period where spending and sales slowed.
This rhythm, for the most part, seemed to be set in stone… until Amazon disrupted the norm in 2015.
Instead of treating summer as an afterthought in the sales calendar, the e-commerce giant transformed that season into one of the most anticipated shopping periods of the year, leading to what’s now known as Amazon Prime Day!
So, who was the person behind this successful strategy?
Diego Piacentini!
Photo from GovInsider
Piacentini is a seasoned executive who has held multiple leadership positions throughout his decades-long career.
He currently serves as a board member, chairman, and advisor to various companies in a variety of industries like logistics companies, venture capital firms, financial services, and publishing.
Piacentini also has a track record in civil service as he took on a two-year term as the Italian government’s commissioner for digital transformation from 2016 to 2018.
Prior to his Amazon stint, he served as vice president of sales and general manager of Apple ’s Europe operations from 1987 to 1999.
After a successful stint at Apple, Piacentini joined Amazon in 2000 and served as senior vice president of its international consumer business group until 2016.
Pitching Prime Day
Photo from Unsplash
As Amazon made inroads in the global market during the late 2000s and early 2010s, it sought ways to generate consumer interest and improve subscription numbers for its Prime service outside the U.S.
Piacentini headed the company’s international business at the time so the responsibility fell on him to achieve those goals.
To meet his objectives, Piacentini looked elsewhere for inspiration… which he found in China.
Alibaba, the Chinese e-commerce giant held an annual sale for Singles’ Day, an unofficial holiday in China for those who weren’t in a relationship. The celebration is held on the 11th of November each year.
Seeing an opportunity to shore up consumer spending, Alibaba, in 2009, offered online shopping discounts each time the unofficial holiday rolled around.
Alibaba’s strategy was a success and it led to billions of sales each year.
Having heard of this, Piacentini pitched the concept to Jeff Bezos as long as it could drive sales for Prime, Amazon’s subscription service.
Once his blessing was secured, the next step was to figure out when to hold Prime day, leading to numerous discussions between Piacentini and other executives.
Instead of competing against Alibaba’s Singles’ Day promotions held in November, Amazon’s leadership team decided to hold Prime Day during the summer months.
Back then, summer was considered a slow season for sales in retail. Despite that being the case, this presented an opportunity for Piacentini and Amazon.
Since sales were slow during this period, warehouse space was ample, shipping capacity ran well enough, and customers had money to spend.
Given all those factors, it made sense to offer big promotions during that period and generate high sales figures.
The very first Prime Day was launched on July 15, 2015 across nine countries.
… and despite technical hiccups and mixed reception, the numbers showed Prime Day was a success, as over 34 million items were sold and Prime gained over a million new members in just a single day.
Fast forward to now, Prime Day has generated billions of dollars in sales for Amazon globally and has been taken advantage of by consumers to meet not only their wants but also their needs.
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So, what can we learn from Piacentini’s story?
First, as a marketer or a business leader, you should always look for creative ways to fulfill your target audience’s unmet needs and wants.
Prime Day’s success isn’t just about timing; it also has to do with the fact that it has enabled—and enables—customers to get what they want and need at significantly lower prices.
Second, you should always take note of and be aware of the latest trends in your industry regardless of where you are in the globe.
As Piacentini has shown, taking a close look at what the competition is doing could help you come up with ideas that elevate the brand you’re working with or the business you’re leading.
If you’re looking for inspiration, Piacentini’s story is definitely worth looking into!
His elegant and simple solution to a business problem enabled him to revolutionize how Amazon and other retailers approach sales and help people get what they want.
About The Dynamic Marketing Communiqué’s
“Mondays: Marketing Marvels”
Too often, industry experts and the marketing press sing the praises of some brand or company’s marketing strategy.
… only for the audience to later find out that its product was a flop, or worse, that the brand or company went bankrupt.
The true ROI in marketing can’t be separated from the business as a whole.
What good is a marketing case study if one can’t prove that the company’s efforts actually paid off?
At the end of the day, either the entire business is successful or it isn’t. And the roles of marketing and communication are always paramount to that success.
Every Monday, we publish a case study that highlights the world’s greatest marketing strategies, marketers, and communicators.
However, the difference between our articles and the numerous ones out there is that we will always make certain that the firm really did generate and demonstrate earning power worthy of study in the first place in keeping with a person’s leadership skills in the area of marketing and/or communication.
We’ll also study the greatest marketing fails and analyze what they did wrong, or what they needed to improve. We all make mistakes, but better we learn from others’ mistakes—and earlier, rather than later.
Hope you find this week’s topic interesting and helpful.
Stay tuned for next Monday’s “Marketing Marvels!”
Cheers,
Adrian Kyle Vergara
Content Writer
Valens Dynamic Marketing Capabilities
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