Marketing Analysis of Amazon Australia

This research is based upon the Amazon Australia. The researcher has attempted to identify marketing strategy of Amazon to penetrate in Australia. Hence, the researcher has presented the company background and then analysed the Australian market through the market segmentation strategy and marketing mix strategy. At the end, the researcher concluded the entire research.

Marketing Assignment on Amazon Australia
Institute and Affiliation
Student Name
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Executive Summary:
This research is based upon the Amazon Australia. The researcher has attempted to identify
marketing strategy of Amazon to penetrate in Australia. Hence, the researcher has presented the
company background and then analysed the Australian market through the market segmentation
strategy and marketing mix strategy. At the end, the researcher concluded the entire research.
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Table of Contents
Introduction:....................................................................................................................................4
Background of Amazon Australia:..................................................................................................4
Marketing Analysis:.........................................................................................................................4
Nature of Amazon Australia’s Marketing Strategy:........................................................................4
Strategic Marketing Options for Amazon Australia:.......................................................................6
Conclusion:......................................................................................................................................6
References:......................................................................................................................................6
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Introduction:
Amazon is the largest retail e-commerce brand of America. It has been doing business globally
with its great customer base. Its annual revenue was USD 135.99 in the last year. Australian e-
commerce business runs very well. Australian customers spend maximum on homeware,
groceries and media. Amazon’s entry in Australia is the most significant step for their business
development. E-commerce sector in Australia has achieved significant growth in last few years.
Present research is based on the Marketing strategy of Amazon Australia since its expansion.
The researcher will analyse Amazon’s marketing strategy in Australia.
Background of Amazon Australia:
Amazon is the ecommerce giant and it was founded in the 1994 by Jeff Bezos as bookstore.
Presently it is the fourth most valuable company which is publicly traded behind the Apple,
Alphabet and Microsoft. In the logo of Amazon, an arrow is pointing from the A to Z. It means
they are not only selling books but everything and the arrow in the logo is like a smile
(Rothaermel, 2015). It is basically known for its business services. Amazon, entered in Australia
in a mission to expand its customer base. It is very difficult to mention the actual day of the
Amazon’s entry in Australia but they have launched their website in Australia in the year 2012
and the main centres are Melbourne, Brisbane and Sydney. Later it has opened a Kindle store in
their e-commerce platform. Presently sales of Amazon in Australia is about $1 billion through
the overseas shipment. According to the research it has been identified that ten thousands
customers visited the website of Amazon and it was during the launch of Amazon in Australia
and the customers placed the orders in almost all 23 categories. Amazon has been capturing the
Australian ecommerce market with its diverse product range.
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Marketing Analysis:
Marketing analysis of Amazon can help to reveal their entry strategy in Australia. The researcher
will analyse elaborately about the marketing strategy of Amazon Australia below:
Nature of Amazon Australia’s Marketing Strategy:
In the present study the researcher has analysed the segmentation strategy and marketing mix of
Amazon to enter in Australia.
Market segmentation strategy of Amazon:
Market segmentation strategy helps to identify the market and potentiality for the development
of their business (Ritala et al. 2014). Through market segmentation strategy organisation tries to
identify the growth of the product in the market along with how much the market can ensure
benefit to the organisation. Amazon’s entry in Australian market is really a great threat for its
competitors (Team, 2017). Research shows that Amazon uses unique segmentation strategy
while entering in a new market. They usually set up the bank account first while entering the
other country so that it can assure them about the payment logistic (Adhikari, 2016). Through
market research and market survey Amazon has observed that Australia is the $4 billion market
but now the ranking is rising tremendously due to the purchase of the Australian customers. They
have targeted the 7,630,000 customers of Australia with age group 14 and above (Adhikari,
2016). They are also focused on the purchasing behaviour of the customer and their target
groups are upper class and middle class people. Amazon is much focused on their vision “ to
become a most customer centric organisation where customer can get all the necessary thing
which they can buy online.” It has been observed that 50% of the customers of Amazon are
repeat buyers.
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Marketing mix:
Marketing mix helps to identify the marketing strategy of the organisation. In Australia, Amazon
has used the customer centric marketing mix strategy.
Product: Amazon is the largest international ecommerce brand and uses internet through phones
and laptops to help its customers to purchase and browse products. In Australia they have tried to
attract the Australians through the online Books, Kindle, Mobile Phones, DVDs, Games,
Clothes, and many more. Very recent, they have released several sportswear brands like Rebel
Canyon, Goodsport, and Peak Velocity etc (Cleeland, 2017). This move has challenged the
Australian Wool innovation approach also.
Price: Product price of Amazon is very cheap compared to its competitors. For an example, if
somebody buys book then Amazon offers new book or used book along with condition and price.
Even for faster delivery they provide option of premium account. Through pricing strategy they
have been able to attract the global customer’s especially Australian customers.
Place: In Australia, various ecommerce sites are closed due to the authenticity of the sites.
Amazon is the international and most reliable brand. They use massive R&D effort to secure its
websites not only in USA but in Australia also. They think that Australian customers are too
much internet friendly and their ecommerce site can easily attract them. Thus they are able to
establish as global brand.
Promotion: Amazon uses various promotional tools to advertise its products and services. They
mainly use web based advertising and SEO to keep their site always on the top in the search
engine. Australians are thus fascinated with the service and product range of Amazon.
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Strategic Marketing Options for Amazon Australia:
Through the analysis of the marketing strategies of e-commerce companies, it has been observed
that the e-commerce companies of Australia have acquired various changes within the context of
the online business. In that context, it is observed that in the year 2018, a rapid changes has
occurred within the e-commerce business world of Amazon that are discussed below.
CRM
In the present context, of the e-commerce business world, it can be noted that the e-commerce
services of the Amazon Australian is automated with the development of the technologies.
Therefore, due to the automation of the services the customers as well as the company can be
able to get the positive result of the e-commerce business and that helps in case of acquiring
success to the e-commerce company Amazon in the year of 2018 (Lorenzo, 2017). Furthermore,
it can be noted that in case of the business of the Amazon, the customer relation management
tool plays a major role as the CRM tool is the usage of the database software. It can help the
company in order to gather and to optimise the relationship of the customers with the products of
the company. In that context, it can be noted that through the help of the customer management
tool the Amazon Australia can be able to access the management of the service programme
through the detailed view of the demands of the customers. Furthermore it can be noted that in
case of holding the success factors within the business context the e-commerce company of
Amazon is using the CRM tool that can provide the opportunity to the e-commerce company to
go through the selling process of the products on the basis of the requirements and demands of
the customers (Yadav and Sagar, 2018).
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Development and integration of social media into e-commerce
In the last two years, the usage of social media has skyrocketed in the country which has resulted
in better revenue generation for Amazon Australia as more and more people are getting involved
in online shopping and social media (Sánchez-Amboage, et al. 2017). From the last year records,
it has been seen that the social media usage led to nearly half of the generated data to the site, but
only thirty per cent of it was converted into a sale. This makes the social media a very accessible
platform.
Thus it should come as no surprise that social media has emerged as the new technique for
promotion and brand strengthening of any company or organisation. Some of the social media
channels through which Amazon Australia can stay more than relevant and powerful in the
decade to come are Facebook, Youtube, Instagram and Twitter. At the same time, the seamless
integration of social media platforms and tools are also required in the apps of Amazon to
provide a more social experience while browsing products or just checking out. This would
result in more user engagement and would also provide a more fulfilling experience for the users
of the app. But at the same time the social media platforms mentioned are just some of the most
popular ones and there are other tools and platforms as well for the purpose of brand promotion
(Reilly, 2017). The social media platform can also be used for spreading across promotional
messages and communications all of which can prove to be immensely profitable and help for
Amazon Australia. The use of social media is not just limited to transactions of goods but the
customers can also use this platform to communicate their problems and grievances with the
official customer care of Amazon, thus bridging the communication gap easily.
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Conclusion:
Australia is highly competitive market. Australians love to buy online products and accessories.
Throughout the discussion it has been identified that Amazon is successful due to its focus on
customers experience. Australia is the best market for Amazon with very ecommerce growth. It
should get steady revenue.
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References:
Adhikari, S. 2016. Amazon ready to pull trigger. [online] Theaustralian.com.au. Available at:
https://www.theaustralian.com.au/business/technology/amazon-targets-aussie-market/news-
story/ca333f66565e7c07c31d827edff2e35b [Accessed 20 Sep. 2018].
Cleeland, A. 2017. Amazon challenges AWI marketing strategy. [online] Farm Online. Available
at: https://www.farmonline.com.au/story/5092238/amazon-challenges-awi-marketing-strategy
[Accessed 20 Sep. 2018].
Lorenzo, L., 2017. Targeting International Customers in Japanese E-commerce: A Web Content
Analysis of the Marketing Mix in Rakuten and Amazon. co. jp.
Reilly, M. and Bowman, T., 2017. The power of feeds: How to build strong underlying data to
drive successful digital marketing programmes. Journal of Digital & Social Media Marketing,
5(3), pp.236-245.
Ritala, P., Golnam, A. and Wegmann, A., 2014. Coopetition-based business models: The case of
Amazon. com. Industrial Marketing Management, 43(2), pp.236-249.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sánchez-Amboage, E., Mora-Jácome, V.L., Ramírez-Coronel, R.L. and Martínez-Fernández,
V.A., 2017, June. Ecuador's" four worlds" restaurants: Coast Region, Highlands, Amazon
Region and the Galápagos Islands on TripAdvisor. com. In Information Systems and
Technologies (CISTI), 2017 12th Iberian Conference on (pp. 1-6). IEEE.
Team, T. 2017. Here's Why Amazon Is Expanding In Australia. [online] Forbes.com. Available
at: https://www.forbes.com/sites/greatspeculations/2017/05/09/heres-why-amazon-is-expanding-
in-australia/#6baf111e1043 [Accessed 20 Sep. 2018].
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Yadav, N. and Sagar, M., 2018. Amazon India’s “Apni Dukaan”: branding strategy. Emerald
Emerging Markets Case Studies, 8(3), pp.1-15.
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