Marketing Strategy for Amazon Australia

The report focuses on the existing marketing strategy of the Amazon Australia since the foundation of the company in the year 1995. It recommends a suitable marketing strategy that can be used by the company for a long-term period. The report provides insights on the nature of Amazon Australia’s marketing strategy, strategic marketing options for Amazon Australia moving forward, and recommended marketing strategy.

Running Head: MARKETING
MARKETING
Students ID:
Name of the University
Authors Note

2
MARKETING
Executive Summary
The report focuses on the existing marketing strategy of the Amazon Australia since
the foundation of the company in the year 1995. Since the birth of the company, they have
been highly maintaining a low pricing and fast delivery service to satisfy the immediate needs
of the customers. It is for their successful strategy of marketing in worldwide boundaries the
tech giant retailer is known as the largest e-commerce platform after Alibaba.com in terms of
total sales and market capitalisation.
However, in the Australian market, the company has not expanded much. Therefore,
based on the past marketing strategy used by the organisation the report provides a
recommended strategy for marketing in Australia. It has been recommended that the
company needs to improve their SEO and ad words related marketing service to maintain a
front page attraction in Google.

3
MARKETING
Table of Contents
Introduction................................................................................................................................4
Background to the Company......................................................................................................4
Marketing Analysis....................................................................................................................5
i) The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.........5
Lower price.........................................................................................................................6
Shipping advantages...........................................................................................................6
Digital marketing................................................................................................................6
Positioning..........................................................................................................................6
Promotion............................................................................................................................7
ii) Strategic Marketing Options for Amazon Australia moving forward...............................7
Recommended marketing strategy......................................................................................7
Shipping..............................................................................................................................7
Search traffic.......................................................................................................................8
Developing a relationship with the customer.....................................................................8
Conclusion..................................................................................................................................9
Reference list............................................................................................................................10
Appendix..................................................................................................................................12
Appendix 1: Revenue of Amazon........................................................................................12

4
MARKETING
Introduction
Marketing strategy is the philosophy that leads to the process by which organisational
groups and individuals are able to obtain their identified value, communicating it and by
offering it to others. The basic concepts of marketing and its strategies are underlying the
needs, wants and values of the customers by building relationships. However, marketing is
strategically concerned with the direction and scope for developing long-term activities
performed by the organisation for achieving a competitive edge.
Therefore, for the business that is seeking a successful and sustainable participation
within the growing market, they are required to choose an effective marketing strategy. Based
on the marketing strategy that is used by Amazon since their birth the report highlights the
existing marketing strategies of the company. Moreover, it recommends a suitable marketing
strategy that can be used by the company for a long-term period.
Background to the Company
Amazon is the world leading online e-commerce retailer selling more than forty
categories of products taking from electronics to groceries along with jewellery and auto
parts. The company also has an internet and e-commerce platform and complete logistics
platform with a broad internet advertising platform provided with internet start-up incubator
settings. The head-quarter of Amazon.com is located in Seattle, Washington founded by Jeff
Bezos in the year 1994 (Amazon 2018).
The tech giant retailer is known as the largest e-commerce platform after Alibaba.com
in terms of total sales and market capitalisation. The company has different business retail
websites for various location including the United States, the United Kingdom, France,

5
MARKETING
Australia, China and India. The operating income of Amazon in the year 2017 was AU$4.106
billion with a market revenue of AU$177.86 billion in the year 2017 (Amazon 2018).
Marketing Analysis
i) The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began
Since the beginning of Company Amazon Australia has never developed any
marketing strategy focusing on the status of any of the competitors. Amazon operates
following its well-established vision of earth's most effective strategy of customer-oriented
strategy. The current online market size in Australia is almost 7.3% in comparison to regular
retail business that makes the majority of the majority of the retail industry in Australia.
Before, launching is Australia Amazon had a limited Australian site (Wensley 2016, p.22).
However, Australian customer had been buying their required products from the US
site for several years. In this context, a current report highlighted that Amazon US
transformed the site for about 49% of the Australian visits. According to Luxton et al. (2015,
p.38), Amazon's unique selling proposition tactics incorporate with the broadest choice of the
products and services that help them to offer competitive prices on their product, fast delivery
of services and innovative customer services. In addition to this, the organisational marketing
communication strategies consist of print and media promotion technique, sales promotion,
events, public relation activities and direct process of marketing.
In this context, it has been found that the organisation specifically focuses on print
and media promotion technique and sales promotion method to enhance marketing
communication networks. As stated by Mistilis et al. (2014, p.779) from the decade of its
conception in the year 1995, Amazon has successfully outgrown many competitors in its
field. Since then Amazon has been using a customer-oriented marketing strategy following
different trends: they are:

6
MARKETING
Lower price
Amazon offers lower process on the products compared to other retail stores and e-
commerce platform. They also offer a huge number of special discounts and packages for the
consumers (Hunt 2014, p.24).
Shipping advantages
Amazon has been offering free shipping and fastest delivery service that is an
attractive marketing service for the customers. Although Amazon prime not yet much popular
in Australia but delivering local products through marketing within one or two would not be
difficult for them (Weerawardena et al. 2015, p. 221).
According to an evaluation report published by Brain and Company, it has been found
that Amazon will be the sixth largest retailer in Australia within the period of 5 to 10 years
due to the effective marketing strategies. On the contrary, Helm and Gritsch (2014, p.419)
stated that another study by UBS reported that Amazon will have a high influence on the
earning of major Australian retailers in near future,
Digital marketing
Amazon initial digital business is dependent on SEO initiatives and Ad words
operations that target millions of keywords provided with a clear set of experiences through
testing and learning capabilities (Liu et al. 2014, p.326). Apart from these activities the
company uses personalisation to make a relevant suggestion and a clear checkout procedure
that is currently replicated by many organisations.
Positioning
In the recent past, sites such as India plaza and Allshoolstuff were forced to be closed
owing to the lack of trust while purchasing goods online. However, Kumar et al. (2016) state

7
MARKETING
that, it is the marketing strategy of Amazon that enables them to provide a far and wide
presence within the bottom-line of the company that helps them to secure their websites.
Promotion
Amazon has a huge broadcast television commercials that are mostly present in the
Australian market. Amazon uses mostly web-based advertising by which they make use of
the billboard and smaller methods of promotion. Apart from these, promotional strategy
Amazon also uses advertising networks in an online way, so that whenever a customer’s
check the updates for the product, there is another advertisement on the similar thing on
another website (Li et al. 2016, p.19). Moreover, search engine marketing is getting high on
the company that helps them to provide smart promotional tactics.
ii) Strategic Marketing Options for Amazon Australia moving forward
Presently, several Australian businesses are not aware of the expansion of Amazon in
Australia. According to Commonwealth Bank report, it has been found that only 70% of the
retailers are aware of the plans made by Amazon for the purpose of Australian expansion
(Woodside & Sood 2017).
Recommended marketing strategy
Amazon needs to lower down the prices of their products so as to undercut the local
retailers for their products. The online giant needs to be perspired to post losses in return for
obtaining a threshold in the market. Therefore, a price cut for other retailers will help them to
maintain competitiveness in the market.
Shipping
Amazon is popularly known for providing prime service in the current days with free
shipping on numerous items that can be fast delivered to the specific location. However, in
order to enhance the service, the company needs to expand their prime service in a broad area

8
MARKETING
of the network to improve their supply chain management and level of automation process in
their system of logistics.
Search traffic
The Amazon domain name is one of the most secured and authorised domains on the
internet. However, expansion of marketing strategies in Australia will trigger new and
smaller e-commerce retailers to compete with the domination organics search on Google
(Valos et al. 2016, p.48). Therefore, to address these issues, Amazon Australia needs to
improve their SEO, ad words strategy to dominate the front page of Google.
Developing a relationship with the customer
Amazon is a large corporation and its six shows that they are not able to provide
personalised customer service. Therefore, the organisation needs to act in a more corporate
way to give a robotic feel to the customer. There are several creative ways that may help
them to enhance communication through social media platform while allowing them to
respond faster to customer enquiries (Gottlieb & Bianchi 2017, p.18). These will help them to
keep their customer base in loops with regular updates, promotional message and regular
deals.
Apart from these, the organisation in terms of marketing tactics needs to focus on the
over and beyond of providing customer service by over delivering the promises. Therefore,
the company needs to adopt stellar customer service by creating a strong identity for the
brands that are necessary for creating a loyal customer base.
In order to do so, Amazon can engrave their customer names on the product to allow
the customer to stick to Amazon. They can provide the customer to customise and personalise
products that may differentiate them from their growing competitors in the niche market.
Moreover, launching personalised products and the campaign can be an effective strategy for

9
MARKETING
boosting productivity and marketing sales while providing a friendly relationship with the
customers. According to Woodside and Sood (2017, p.98), content and email marketing can
also provide a huge value for the audience on different social media channels through sharing
of informative and relevant content, like writing daily blogs, creating infographics and
intersecting creative content.
Conclusion
Therefore, from the above study, it is evident that Amazon Company is the largest
online retail market has been depending on customer-oriented strategy for a long period. In
most of the cases, it has been seen that Amazon enjoys providing low prices and fastest
delivery service. Apart from these, Amazon has limited restrictions on the selling of the
products. People are able to buy everything including groceries, cooking appliances, movies,
books and many other electronic and fashion products. Considering the larger Amazon
market in the UK and US Australia retail market is much smaller.
However, to improve the sales and productivity through marketing provision, Amazon
needs to take some new strategies on marketing for enhancing the service and to retain
increased customer base. The company will have plenty of opportunities in Australian.
Therefore, they need to enhance and improve their digital marketing and traditional
marketing strategies to attract increased customers from all age group and locations.

10
MARKETING
Reference list
Amazon 2018. Home: Amazon Australia Finder, viewed 12 September 2018.
<https://www.finder.com.au/amazon-australia >
Gottlieb, U. & Bianchi, C., 2017. Virtual trade shows Exhibitors' perspectives on virtual
marketing capability requirements. Electronic Commerce Research and Applications, vol. 21,
no.1, pp.17-26.
Helm, R. & Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review, vol. 23, no. 2, pp.418-428.
Hunt, S.D., 2014. Marketing Theory: Foundations, Controversy, Strategy, and Resource-
advantage Theory: Foundations, Controversy, Strategy, and Resource-advantage Theory.
Abingdon: Routledge.
Kumar, V., Dixit, A., Javalgi, R.R.G. & Dass, M., 2016. Research framework, strategies, and
applications of intelligent agent technologies (IATs) in marketing. Journal of the Academy of
Marketing Science, vol. 44, no. 1, pp.24-45.
Li, Z., Zhang, H., O’Brien, L., Jiang, S., Zhou, Y., Kihl, M. & Ranjan, R., 2016. Spot pricing
in the Cloud ecosystem: A comparative investigation. Journal of Systems and Software,
vol. 114, no. 2 pp.1-19.
Liu, C.Z., Au, Y.A. & Choi, H.S., 2014. Effects of freemium strategy in the mobile app
market: An empirical study of google play. Journal of Management Information Systems, vol.
3, no.3, pp.326-354.

11
MARKETING
Luxton, S., Reid, M. & Mavondo, F., 2015. Integrated marketing communication capability
and brand performance. Journal of Advertising, vol.44, no. 1, pp.37-46.
Mistilis, N., Buhalis, D. & Gretzel, U., 2014. Future destination marketing: the perspective of
an Australian tourism stakeholder network. Journal of Travel Research, vol. 53, no. 6,
pp.778-790.
Valos, M.J., Haji Habibi, F., Cassidy, R., Driesener, C.B. & Maplestone, V.L., 2016.
Exploring the integration of social media within integrated marketing communication
frameworks: Perspectives of services marketers. Marketing Intelligence & Planning, vol. 34,
no. 1, pp.19-40.
Weerawardena, J., Mort, G.S., Salunke, S., Knight, G. & Liesch, P.W., 2015. The role of the
market sub-system and the socio-technical sub-system in innovation and firm performance: a
dynamic capabilities approach. Journal of the Academy of Marketing Science, vol. 43, no. 2,
pp.221-239.
Wensley, R., 2016. The basics of marketing strategy. The marketing book (pp. 75-107).
Abingdon: Routledge.
Woodside, A.G. & Sood, S., 2017. Vignettes in the two-step arrival of the internet of things
and its reshaping of marketing management’s service-dominant logic. Journal of Marketing
Management, vol.33, no. 1-2, pp.98-110.

12
MARKETING
Appendix
Appendix 1: Revenue of Amazon