Analysis of the Marketing Assignment

Running head: FORMATION OF CASE STUDY RELATED TO AMAZON UK
FORMATION OF CASE STUDY RELATED TO AMAZON UK
Name of the Student
Name of the University
Author Note

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Executive Summary
The case study is based on the analysis of the marketing concepts that are implemented by an
organization and the role played by these concepts in increasing their revenues. The
organization that is taken into consideration for this analysis is Amazon UK. Amazon is a
multinational organization of the American origin. The organization operates in the area of
online retailing of various products. The huge variety products provided by the organization
and their expansion policies are analysed in the case study. The marketing concepts that are
implemented by Amazon are analysed in the study. These concepts include, distribution
strategy, customer analysis related strategy, strategy for creation of competitive edge in the
industry, strategy of creating brand equity. The case study has been concluded by stating that
Amazon has been able to implement the various strategies in a successful way to increase
their loyal customer base and expending their operations. However, the company has not
been able to gain profits in the years of their operations. Amazon therefore has to formulate
strategies to gain profitability in the market and further creating long-term sustainability.

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Table of Contents
Introduction....................................................................................................................3
Problems in the organization..........................................................................................4
Market segmentation theory used by Amazon based on marketing mix.......................6
Reviewing the implementation of the segmentation based marketing strategy.............8
Evaluation of the segmentation strategy and its implementation.................................12
Conclusion and Marketing related questions...............................................................14
References....................................................................................................................16
Appendices...................................................................................................................24
Appendix 1...............................................................................................................24
Appendix 2...............................................................................................................25
Appendix 3...............................................................................................................25
Appendix 5...............................................................................................................26

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Introduction
The purpose of this study is to analyse the marketing theory of strategy that has been
implemented by Amazon to ensure its success in the industry. Amazon.com is an
international business organization of the American origin which operates in the industry of
cloud computing. The company was established in the year 2004 by Jeff Bezos and the
headquarters of Amazon is located in Seattle, Washington. The organization has been able to
acquire the position of the largest internet-based retailer in terms of market capitalization and
revenue. The organization had started its operations as an online bookstore and further
expanded their operations by selling videos and other products. Amazon has now been able to
sell products and devices belonging to any category (Ashley and Tuten 2015). The products
which are sold by the organization include fashion apparel, food, furniture, toys, electronics
and jewellery. Amazon also produces consumer electronics related products like Fire tablets,
Echo, Fire TV and kindle e-readers. Amazon has been trying to increase its consumer base by
selling low-end products under the category of Amazon Basics.
The organization has individual retail websites for the various countries where they
have their operations including, the United Kingdom, the United States, France, Canada,
Italy, Germany, Spain, Netherlands, Brazil Japan, Australia, India, China and Mexico. The
company also the provides the facility of international shipping for some of its products.
Amazon was able to surpass a giant organization like Walmart and became the highest valued
retailer of the United States (Batra and Keller 2016). The study will be mainly based on the
operations of Amazon in the United Kingdom and the position that the organization holds in
the market. The organization had reached a sales figure of 6.3 billion Euros in the United
Kingdom even in the tough times of the British market. Around 40% of the total amount that
is spent online comes from the sales of Amazon. The advertising and promotion related

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spending of the company is quite high. They have been heavily spending in the promotional
activities related to the launch of grocery service in UK. The new services that have been
launched by Amazon in the United Kingdom include, services like, Amazon Prime and
Amazon Pantry. Amazon is also planning to add fresh products to their pantry related items
under the service named Amazon Fresh. The various offers and discounts that are provided
by Amazon help in attracting customers towards the company (Amazon.co.uk. 2018).
Problems in the organization
The overall spend of the consumers in UK related to the services and products of
Amazon have been steadily increasing over the years. Many surveys have also detected that
the customers are much more likely to spend on the products that are marketed by Amazon
Prime, rather than the retailer’s direct online store. Amazon has been able to set a standard
related to the services that are provided to the consumers (Kilgour, Sasser and Larke 2015).
This has further led to the rise of competition from other organizations in the market to
provide the services like same day delivery to the customers. Amazon has been leading the
digital retail market according to the surveys that have been conducted in the United States
and the countries like Belgium and UK have also ranked Amazon as the leader in the
ecommerce market. Amazon has received the position of the most influential retailer in the
United Kingdom (Blakeman 2018).
However, in spite of this position in the market the organization has been unable to
gain profits in the market of UK. The other retailers who have their operations in the country
have been trying to maintain customer base by competing with Amazon with the help of
various marketing strategies. The retailers in the country who operate in the areas where
Amazon is still not active, are quite worried about the competition levels which will be faced
by them is the organization starts its operations in these fields as well. The stakeholders of

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Amazon have been providing back-up to the company with the expectation that the huge
growth of the company will lead to profits for them. The founder of the organization however
has different views related to the short-term profitability of an organization (Chari et al.
2014). Jeff Bezos has emphasized on the continuous growth of the organization instead of
working for just the short-term profits. Amazon had entered the UK market in the year 1998
with the help of their bookselling platform. The organization has been able to change the
ways by which the customers have been shopping. The distribution network and the
technology used by the company is admired by the rivals (Holliman and Rowley 2014).
However, in spite of such a good position in the market Amazon has been not been able to
earn huge profits in the market. The personalization of the online retail website is another
major factor that relates to the success of Amazon in the industry. The issue related to the
lack of profit suggests that the business model that has been implemented by Amazon has
been effective for the operations and profitability of the company (Cross, Belich and Rudelius
2015).
The major steps that can be taken by Amazon to increase their profits would be
decrease capital expenditure and increase the steps that are required to be taken for the
purpose of cost-cutting. The investments made by Amazon are increasing on a continuous
basis and this has a major effect on the profitability of the company. The company is
expanding its business operations continuously, however, they have not been able to increase
the levels of profit that has been the major issue with the organization since its inception. The
competition of the organization in the online retail market is increasing on a continuous basis
and this will further affect the operations of Amazon and the ways by which it will maintain
its position (Cuadros and Domínguez 2014). The profitability related issue needs to be taken
care by Amazon before they think of further expanding their operations related to the delivery