Marketing Strategies of Amazon Australia: A Theoretical Approach

This paper analyzes the marketing strategies of Amazon Australia with a theoretical approach, highlighting its brand equity and strategic options for future growth. It also discusses the challenges faced by the company in the Australian market.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Executive Summary
Market competitiveness projects the significant role in the expected sustainable development of
the organization. The global or the international organizations who are executing their
programme in the domain of the market for the proper enhancement of the outcomes of the
organization must constantly evaluate both the internal and the external environment together
with the competitive actions for the proper investigation of the preferences of the consumer so
that the organization can initiate development for the improvement of its marketing strategies.
The paper gives a far-reaching comprehension of the properties of Amazon Australia as the
marketing strategies by featuring its equity of the brand in the Australian Marketplace with some
of the theoretical approaches.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
The Background of the Company................................................................................................4
The Marketing Analysis..................................................................................................................5
The nature of Amazon Australia’s Marketing Strategy or Strategies since its commencement. 5
Strategic Marketing Options for Amazon Australia moving forward.........................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendices....................................................................................................................................11

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Introduction
One of the fundamental determinants in the international market is the increasing access
of the rising markets with high level of competitiveness(Naamanzhou 2018). These determinants
stimulate the organizations for seeking highly effective ways for the conquer of the market place
in the global level and furthermore initiate development of the internal market base. In case of
the business enterprises that are willing to engage effectively in the market, it is highly expedient
for the firms to effectively organize their activities of marketing which furthermore results in the
requirement of the marketing strategies(Datta, Ailawadi and van Heerde 2017).The appropriate
identification of the marketing strategy is highly important and the importance of it does not end
within the organization since it is furthermore essential for the analysis of the identified
strategies and effective regulation in a basic constant manner. The control and the planning of the
marketing strategy are typically ranked among the most critical platforms in the business sector.
In case of attaining of the objectives and the strategies of the marketing in an effective and
successful manner, it is important for the companies to establish in a systematic and purposeful
way for solving and adjusting the issues for the achievement of the expected outcomes and the
targets of the business. The report highlights the marketing strategies of Amazon Australia with
proper analysis of the theoretical approaches and the effective ways and measures for the
expansion of the organization in a successful manner.

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Discussion
The Background of the Company
Founded in the year 1994, the e-commerce business enterprise, Amazon stated its
business in the digital bookstore a furthermore initiated expansion of its business operations with
the introduction of wide product ranges through the platform of multilevel e-
commerce(Amazon.com.au 2018). The statistical data of the organization till the year 2016
revealed that more than 367,899 individuals have been employed in the company for full time
employment as well as in the category of the part time employment in the international level.
Amazon Australia recorded a gross sales figure of 120 billion dollars that have been on increase
from the year 2015 by the rate of 27%. This further include the effect of the exchange rates of the
foreign currency. In the current scenario, Amazon currently holds a base of 1000 employees on
the Australian market and the domain of the business. The first line of business of the
organization deals with selling of the goods to the consumer in a direct basis through the basis of
the web services(Lovelock and Patterson 2015). The company furthermore owns and executes
the operation in the name Amazon Marketplace that enables the traders of the third party to
initiate selling of the new and the used products.Amazon , the company holds the successful
trademark over 11 of the market places situated across the continent of Asia, North America and
Europe. The marketplace of Amazon is not currently operating n Australia but it has been
reported that various Australian trade and commerce has been trading there products on a daily
basis in the current overseas market places. It has furthermore been revealed that in the year of
2017, after much of the speculation and conjecture, Amazon has announced the news of its
expansion of its products that includes a wide range of services and retail products in the home

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market of Australia. $20 billion have been spend over the digital platforms by the Australian
which furthermore signifies over 7% of the spending in the Brick and Mortar shops (Avramova,
De Pelsmacker and Dens 2017). According to some of the researchers approximately 80% of the
financial resources that are spent on the digital platforms are through the domestic
retailers(Amazon.com.au 2018). However proper evaluation of the market place of Australia
with the US and the UK and the market of the e-commerce has been widely considered to be
undersized in the economy as a whole.
In the recent years, according the statistics, the increasing growth of the market place of
Australia has been blooming with small appliances, groceries, homewares and major proportion
of the digital e-commerce of the retail industry(Insideretail 2018). The online retailing is
expected to expand for growing along the business expansion of the Amazon in the market of
Australia.It has been normal that the Amazon Marketplace will at first underscore on general
stock, for example, toys and the electrical merchandise andthen will additionally grow its
business to look for its imprints in Australian commercial center(Xu, Gao and Hammond 2017).
Amazon Australia posed indications in its first public forum that the organization aims towards
the expansion of the market domain for the entailing of both the propriety goods also with the
ones from the traders of the third party.
The Marketing Analysis
The nature of Amazon Australia’s Marketing Strategy or Strategies since its
commencement
According to the marketing analysts, the company, Amazon might be facing some of the
major challenges from the players of the dominant market place residing in the business sector of

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Australia.One of the major playersin the marketplace of Australia is the Bricks and mortar
retailers who have an exclusive digital presence and will furthermore initiate shifting of the
consumer preferences and perceptions (Mortimer and Grimmer2017).Note that the
accomplishment of Amazon as an e-commerce business depends incredibly on the level of
buyers' tendency towards the tendency of the online shopping in Australia.A few Australian
purchasers still display the inclination to keep away from online shopping as regardless they
relate to create worry about frauds and the fakes in the digital forum, the quality and the
reliability of the product purchased and the exchange or the return policies offered by the
organizations (Mortimer and Grimmer 2017). According to the researches, the company pays
relevant taxes to the jurisdictions and the policies since the business model of the supplying
investment regarding the revenue is valid for the ventures of the global business (Naamanzhou
2018). According to the evaluation report by the financial revenue retail summit, there has been
proficient regulation by the federal government for the effective regulation of any sort of
indications that the company or the organization has been intentionally executing at a very
diminishing rate and seek high level of the sales along with the share of the market for the
maximize of the status of the market for top global brands(Masters 2018).
As an established brand,Amazonpossesses a distinct understanding regarding the equity
of its brand. It has been facilitating the preferences of the consumer of Australia. Besides these, it
alsoprovided sustained revenues for the organization(Lovelock and Patterson 2015). The notion
of the equity of the brand that has been considered as an essential theoretical approach by the
strategies of the market serves as one of the added values that is attributed to the services of the
e-commerce business by the customer of the Amazon.

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Gill-Simmen et al. (2018) record as one brand value factors. On the other hand the
channels of Amazon has assumed a critical job in venturing into the marketplace of Australia.
These systems have additionally encouraged a few activities of the brand of Amazon by capably
giving extra information sources, excitement and experience is furthermore identified with the
organizational trademark (Pash 2018).
Subsequently Amazon fundamentally supplements its items which they offer in the
Australian market with extra data and detailed review analysis. Such extensive brand value has
upgraded the organization’s awareness levelfor the effective maintenance of some positive and
uncommon connection with the consumer base of Australia. Amazon.com.au (2018) has
heightened its market estimate inside two months and is relied upon to extend its space to more
than 50,000 brokers before the year of 2018. This intense advertising condition has presented
some of the basic difficulties for the development of a fruitful item index as items with minute
aggressiveness and high net revenues.
Strategic Marketing Options for Amazon Australia moving forward
According to the current position of Amazon in the Australian market, the organization is
expected to significantly disrupt the retail stores and the sectors of Australia by the means of
multiple marketing strategies (Adamopoulos and Todri2015).Amazon has been putting forth
extensive economic costs for comparative item that powers the Australian retailers to limit their
value in the market. Furthermore multiple competitors of the company has been forced by the
company for investing in the stores and the services related to the e-commerce for the sustenance
of the competitive advantage over Amazon Australia (Shea, Turner and Nerad2018).In 2016 the
organization's net overall revenue has been around 7% in contrast with a portion of the real

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retailers of Australia who contained gross income edge of 20% or as a rise around 20 to 45%.
Amazon has maintained the norms of high confidentiality regarding their aims, their strategies
together with the list of the services they are intending to offer in the near future(Pash 2018).
However according to the recent and the current reports, the company is aiming towards the
relative approach in the market place of Australia and aims towards the purchasing of the small
grocery outlets as the distribution sector for the delivery of the grocery foods, mostly named as
Amazon Fresh. This new initiative by the company is recognized as the same day delivery of
fresh food and the services which is an example of competitive retail services in the country of
Australia which includes low density of population together with high rate of wages(Haucap and
Heimeshoff 2014). It has furthermore been expected that the company has been projecting
towards using the country as the main test market among the few years apart from the renewed
emphasis on the production of the fresh foods in the marketplace.
Conclusion
To finish up, it can thus be expressed that promoting marketing strategies executed by
Amazon Australia has been one of the practical techniques for the organization which in total
made the overall business system. The imperativeness of Amazon's strategy of the marketing in
its general business approaches has been broadly high in view of its control of key promoting
relationship with the Australian retailers outside of the support functions that is the conveyance
of items to the Marketplace and deals. The entry of Amazon in the Australian Marketplace have
been considered as a confident one with respect to the price range that is mostly economic and
the quick conveyance services, the company has offered to the Australian purchasers. Apart from
all the facts, the general population of Australia has additionally thought about the basic areas of

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concern which many of the competitive retailers would experience because of the long
significance of Amazon in the retail market of Australia.

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References
Adamopoulos, P. and Todri, V., 2015, August. The effectiveness of marketing strategies in social
media: Evidence from promotional events. In Proceedings of the 21th ACM SIGKDD
International Conference on Knowledge Discovery and Data Mining (pp. 1641-1650). ACM.
Amazon.com.au 2018. Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books,
DVDs & more. [online] Amazon.com.au. Available at: https://www.amazon.com.au/ [Accessed
22 Sep. 2018].
Avramova, Y.R., De Pelsmacker, P. and Dens, N., 2017. Brand placement repetition in a
fictional text. International Journal of Advertising, 36(1), pp.38-59.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
Gill-Simmen, L., MacInnis, D.J., Eisingerich, A.B. and Park, C.W., 2018. Brand-self
connections and brand prominence as drivers of employee brand attachment. AMS Review, pp.1-
19.
Haucap, J. and Heimeshoff, U., 2014. Google, Facebook, Amazon, eBay: Is the Internet driving
competition or market monopolization?. International Economics and Economic Policy, 11(1-2),
pp.49-61.

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Insideretail, 2018. Amazon to push Australian retailers into ‘segment-specific’ focus. Available
from https://www.insideretail.com.au/news/amazon-to-push-australian-retailers-into-segment-
specific-focus-201801 Accessed on 22 September 2018.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Masters, K. 2018. Amazon's Slow Burn In Australia Is Still On Pace To Heat Up. Available from
https://www.forbes.com/sites/kirimasters/2018/08/07/amazons-slow-burn-in-australia-is-still-on-
pace-to-heat-up/#122cc57d67d0 Accessed on 22 September 2018.
Mortimer, G. and Grimmer, L., 2017. Why retailers want you to ‘click and collect'. The
Conversation, (30).
Naamanzhou, 2018. Australian retailers resilient as they face down 'Amazon effect'. Available
from https://www.theguardian.com/technology/2018/feb/14/australian-retailers-resilient-as-they-
face-down-amazon-effect Accessed on 22 September 2018.
Pash, C. 2018. A new wave of threats points to another supermarket price war primed to break
out in Australia. Available from https://www.businessinsider.com.au/australian-supermarkets-
kaufland-threats-ibisworld-analysts-2018-9 Accessed on 22 September 2018.
Shea, K., Turner, S. and Nerad, M., 2018. Globalization and Strategies for the
Internationalization of Higher Education: A Comparative Study of Brazil and Australia.
Xu, J., Gao, X. and Hammond, J., 2017. E-tailing in Australia: A preliminary analysis of David
Jones. International Technology Management Review, 6(4), p.149.

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Appendices
Marketing Strategy Outline of Amazon Australia