Marketing Strategies of Amazon Australia

This article discusses the marketing strategies of Amazon Australia, including the use of marketing mix strategy to distinguish their products from competitors. It also explores future marketing strategic options for Amazon. The article provides a background of the company, market analysis, and the various marketing strategies used by Amazon.

Running head: Marketing
Marketing

Marketing
Executive summary
Marketing is an empirical tool to satisfy the needs and requirements of the customers. Marketing
is a forward looking and long term approach to attain a sustainable competitive benefit. A brief
information about operations and activities of Amazon Australia is elaborated in the task.
Amazon Australia is a leading internet retailer who provides ample of retail products to the
customers. The paper future discusses that how marketing mix strategy provides various benefits
to the customers. It explains the marketing strategic options that are taken by Amazon Australia
to maintain a strong and unique position in near future.
2

Marketing
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Background of the company........................................................................................................................4
Market analysis...........................................................................................................................................4
Marketing strategies of Amazon..................................................................................................................5
Strategic marketing options.........................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
Appendix...................................................................................................................................................10
3

Marketing
Introduction
The main motive of this task is to discuss about the business functions and operations of Amazon
Australia. Amazon Australia is a leading company that provides online products and services to
the customers. The marketing strategy is adopted by Amazon Australia has been discussed in the
task. Marketing strategy is a significant part of Amazon to survive its functions and activities
internationally. Furthermore, the paper outlines that what kind of strategic options can take
Amazon Australia to boost profitability in near future.
Background of the company
Amazon is an American electronic commerce and cloud computing Corporation that was
incorporated in 5th July 1994 (Finder, 2018). It is one of the biggest internet retailers across the
world evaluated by market capitalization and revenue (Aboutamazon, 2018). The company sells
its low end products under its in house brand Amazon basics. In today’s era, the firm has
invested over $160 billion in the U.S. to generate fuel, jobs, growth and drive innovation. The
organization empowers medium and small sized businesses to attract millions of the customers
across the world. Amzon’s Australia has launched a huge and innovative opportunity for anyone
who wants to make money online (Aboutamazon, 2018). Most of the businesses could sign up to
sell ample of products and services through Amazon marketplace. The company’s marketplace
is a route that permits third party sellers to sell their products and services through Amazon. The
vendors or seller are accountable for pricing their own services and products. Currently, the
company has approx 300 million customers in the competitive market. Amazon Australia do
have ample of choices in the market and it can sell enormous products such as clothing, TV,
movies, lighting, toys, games, baby products, software, stationery products (Finder, 2018).The
company has opened a store in Melbourne’s Dandenong South for shipping of products around
Australia.
Market analysis
Marketing analysis is essential to gain competitive benefits and further it is needed to meet the
long term needs and requirements of the business. No company can grow and flourish its
4

Marketing
business activities without analyzing market effectively and efficiently. In today’s modern era,
the company manages all of its customer sales via an account that is completely free to establish
and incurs ongoing charges (Dudovskiy, 2018).
Marketing strategies of Amazon
Marketing strategy is significant for each and every company to stand out against the competitors
in the international market. There are ample of marketing strategies used by the company to cope
up with rivalries in the international market. One of the important strategies that adopted by
Amazon is marketing mix strategy. The marketing mix strategy is an effective and dynamic
strategy to make a good image in the minds of the target audience. By using this strategy, the
firm is able to render its products for the customers at reasonable prices (Dudovskiy, 2018). The
marketing mix strategy for Amazon Australia has been discussed below.
Product: Amazon is a global ecommerce Corporation, using connections to the internet from
enormous gadgets like tablets and mobile phones to permit its customers for buying the products
immediately. The company has developed and enhanced its product base and sells it among the
customers. The firm sells its wide range of products such as Kindle, DVD’s, mobile phones,
Jewellery, gardening equipment and books. Amazon constantly expands and explores its product
base in Australia in a large extent. By using this strategy, the firm has been able to uplift
profitability and revenue in Australia (Bhasin, 2017).
Price: It is stated that Amazon uses competitive pricing strategy to attain rivalries benefits
globally. As the various kinds of services rendered by the company its pricing strategy is also
unique and different. The company uses innovative and advanced technology to its benefit in
establishing the prices. Amazon sells its products at lower rate to distinguish its products from
the competitors. Apart from this, the organization also provides value added services to the
customers for maximizing the operating income and returns in the international market.
Place: The company is a global brand and has its existence all over the world. The target
audience buys the goods and services from the Apps and website of Amazon.com. Once a
customer place the order for the products, the ample of distribution channel of the firm comes
into picture where the products are secured and stored at company’s fulfillment centers. The
company operates and manages its business activities in various countries such as Germany,
5

Marketing
India, Australia, United States, Spain, Italy, Brazil, China, Netherlands, Singapore, Mexico and
Turkey.
Promotion: It has been found that Amazon uses marketing campaigns and programs to promote
its products and services in the global market. Advertising through prints ads and newspaper are
done by the company to capture entire target audience. Public relations exercises to enhance and
improve the brand image like introducing Amazon smile which donates to charity companies.
Direct marketing is also done by the firm to increase and enhance the sale of the goods and
services in Australia (Mbaskool, 2018).
People: The Company has dynamic and strong workforce to perform tasks and duties greatly.
Along with this, Amazon also offers its workers a great deal of training and development actions
and activities. Aside this, organization provides ample of benefits include assistance programs,
financial and health to the customers (Mbaskool, 2018).
Process: Amazon is a global player in ecommerce and web services and it further has got a
strong and unique process oriented business. It is seen that the company has categorized its
fulfillment centers and warehouses for operational effectiveness and efficiency. It uses excellent
technologies to provide support its day to day activities in its promotions and advertisements
(Mbaskool, 2018).
Physical evidence: Amazon Australia largest and unique physical presence is its website. As
Amazon is an online retailer that provides products and services through apps and websites and
further it has ample of stores and warehouses in all the countries. Physical evidence is significant
for striving with rivalries in the international market (Mbaskool, 2018).
By using marketing mix strategy, the firm has been able to accomplish long term mission and
vision widely. Furthermore, it also helps in satisfying the needs and demands of the customers in
a great extent (Evans, 2010).
6

Marketing
(Source: https://voicebot.ai/2018/03/08/amazon-echo-maintains-large-market-share-lead-u-s-
smart-speaker-user-base/)
Strategic marketing options
It has been analyzed that current position of Amazon is unique and dynamic that helps in gaining
rivalries advantages in the international market. The company emphasizes platforms that each
serves its own customers in the excellent and effective possible way (Treanor, 2010). Amazon is
an effective and single enterprise who comes in most suitable and innovative companies list
because it has constantly to be quick even as it has attained enviable scale. Apart from this, the
firm is raising its market share to attain competitive edge internationally. It is further keeping an
eye on the performance and plans of the competitors to compete with rivalries globally
(Robischon, 2017).
There are various strategic options for the company such as Pestle analysis, SWOT analysis,
porter five forces analysis, STP strategy and value proposition strategy that help the company to
build and improve the brand image in the market. Some of the future oriented marketing strategic
options for Amazon have been discussed below.
Market penetration strategy: It is one of the significant strategies that can be used by the
company to attract maximum number of customers widely. By using this strategy, the firm could
able to know and understand the tastes, preferences and choices of the customers (Curty and
Zhang, 2013).
7

Marketing
Product development strategy: It includes developing and introducing new and innovative
products to sell to existing market. By implementing this strategy, Amazon can launch
innovative and attractive products for the customers globally (Roberts and Zahay, 2012).
Market development strategy: This strategy is interconnected with finding new markets for
existing products and services. Although, Amazon uses this strategy to penetrate entire market
but some changes still are needed. With the help of market development strategy, the firm can
identify and analyze the future risks and challenges of the market (Piercy, 2014).
Diversification strategy: It can be one of the significant options for Amazon to increase and
enhance the outputs and returns in coming future. By initiating diversification strategy, Amazon
would able to operate and manage its business operations at various stores also. This strategy is
also beneficial to differentiate its products from the competitors (Baker, 2014).
(Source: https://globenewswire.com/news-release/2018/02/02/1332405/0/en/Cloud-Growth-
Rate-Increases-Amazon-Microsoft-Google-all-Gain-Market-Share.html )
Conclusion
On the above mentioned analysis it is concluded that Amazon is one of the biggest brands which
provides ample of products and services to the customers through website and apps. Marketing
strategies are essential for growing the business activities globally. The above analysis shows
that how Amazon Australia uses marketing mix strategy to distinguish its products from the
8

Marketing
competitors. Apart from this, marketing strategic options that can be taken by the firm in near
future also have been explained in the task briefly.
9

Marketing
References
Aboutamazon.2018. Working at Amazon[Online]. Available from
https://www.aboutamazon.com/ [Accessed as on 22nd September 2018].
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Bhasin.H.2017. Marketing mix of Amazon [Online]. Available from
https://www.marketing91.com/marketing-mix-amazon/ [Accessed as on 22nd September 2018].
Curty, R.G. and Zhang, P., 2013. Website features that gave rise to social commerce: a historical
analysis. Electronic commerce research and applications, 12(4), pp.260-279.
Dudovskiy.J.2018. Amazon marketing strategy: a brief overview[Online]. Available from
https://research-methodology.net/amazon-marketing-strategy/ [Accessed as on 22nd September
2018].
Evans, L.L., 2010. Social media marketing: strategies for engaging in Facebook, Twitter &
other social media. Pearson Education India.
Finder.2018. How to sell products on Amazon Australia [Online]. Available from
https://www.finder.com.au/selling-products-amazon-australia [Accessed as on 22nd September
2018].
Mbaskool.2018. Amazon marketing mix[Online]. Available from
https://www.mbaskool.com/marketing-mix/services/17022-amazon.html [Accessed as on 22nd
September 2018].
Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Roberts, M.L. and Zahay, D., 2012. Internet marketing: Integrating online and offline strategies.
Cengage Learning.
10

Marketing
Robischon.N.2017. Why Amazon is the world’s most innovative company of 2017[Online].
Available from https://www.fastcompany.com/3067455/why-amazon-is-the-worlds-most-
innovative-company-of-2017 [Accessed as on 22nd September 2018].
Treanor, T., 2010. Amazon: Love them? Hate them? Let’s follow the money. Publishing
Research Quarterly, 26(2), pp.119-128.
11

Marketing
Appendix
12

Marketing
13