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Marketing Strategy Assignment | Marketing Planning Assignment

   

Added on  2020-05-16

22 Pages4738 Words98 Views
Running Head: Marketing Strategy and PlanAMAZONMarketing Strategy andPlan

Marketing Strategy and PlanP a g e | 1Executive SummaryAmazon was founded in the year 1994 by Jeff Bezos and since then the company has been reaching new heights of success and is quickly shaping up the online shopping landscape. The below report highlights the strategies the company should go forward with in order to achieve sustainability in revenue and growth. The pillars of success for Amazon are based on Technological advancement, increase penetration of Amazon web services, heavy digital marketing promotion and increase the product offering in the category of consumer electronics. Amazon should also focus on establishing an offline presence in certain developed markets to give a strong competition to its biggest competitor Walmart.

Marketing Strategy and PlanP a g e | 2Table of ContentBrief Introduction..................................................................................................................................4Online Shopping and E-commerce worldwide: Market Size..................................................................5Micro Environmental Analysis...............................................................................................................5Porter 5 force model.........................................................................................................................5Bargaining power of Customers....................................................................................................5Bargaining power of Suppliers.......................................................................................................6Threat of Substitution....................................................................................................................6Threat of a new entrant.................................................................................................................6Competitive Rivalry........................................................................................................................7BCG Matrix........................................................................................................................................7Cash Cows......................................................................................................................................8Stars...............................................................................................................................................8Question Mark...............................................................................................................................8Dogs...............................................................................................................................................8Macro Environmental Analysis..............................................................................................................8SWOT Analysis.................................................................................................................................10STP of Amazon.....................................................................................................................................10Marketing Objectives identified for Amazon.......................................................................................12Marketing Mix Strategy.......................................................................................................................13Strategic plan of Marketing Mix-3 Years..............................................................................................15

Marketing Strategy and PlanP a g e | 3Product strategy..............................................................................................................................15Price Strategy...................................................................................................................................15Place................................................................................................................................................15Promotion........................................................................................................................................16Tactical Plan for Amazon.....................................................................................................................16Budgets and Target for the Marketing Plan.........................................................................................17Conclusion...........................................................................................................................................17References...........................................................................................................................................18

Marketing Strategy and PlanP a g e | 4Brief IntroductionAmazon was founded in the back of the Garage by one of the leading visionaries of the present world Jeff Bezos in the year 1994. Amazon is the world’s largest online marketplace for sellers and buyers across the globe(Bhatt, Patel, Chheda & Gawande, 2015) The company was incepted when Jeff realized lacunae in the current shopping practices, he had a futuristic thinking and he knew it strongly that the landscape of shopping will be change In the near future, thus with this strong faith in himself, he opened the first online book store for the people, which in the later years got converted into a full-fledged online shopping marketplace(Chou, 2016). The company currently operates through three segments; North America, International and Amazon web services. It has forayed into manufacturing consumer electronics like Firefly and Alexa; also it is one of the biggest names in the cloud services. Infact, latest data shows that Amazon earns more from its cloud services than its online business (Kaur & Wadera, 2017) The year 2006 saw company coming up with an online portal for streaming popular entertainment content on the web, the strategy of the company was to capture the growing online demand for content and give a competition to Netflix, the market leader in the category. It was Amazon which was pivotal in pushing the envelope of lighting fast deliveries; it came up with Amazon prime services, which assures delivery of product with a guarantee of 1-2 days. It can be said that Amazon was the innovator and creator of the online shopping marketplace, which is certainly one of the biggest contributors to the GDP of the nations and is consistently putting in efforts to push the envelope of the services higher(Schein, 2017)

Marketing Strategy and PlanP a g e | 5The purpose of the report here is to create a detailed three year marketing plan for Amazon with a tactical plan for implementation in the coming year for the organization, the plan will include extensive market research, using strategic models to understand the market scenario and so on. Online Shopping and E-commerce worldwide: Market SizeE-commerce companies are being created on a daily basis to satiate the unsatiated needs of the customers across the globe; Internet has a global penetration of 51% (Approx. 3.65 Billion) out of thetotal population of 7 Billion (Lee, 2017). Hence it makes sense to understand the current market and the future of the e-commerce industry. E-commerce primarily caters to the audience segment of B2C, which includes online retail or online shopping. According to study conducted by Rauken in 2016, an estimated 1.61 Billion people across the globe purchase good online, the global retail sales in the same year accounted over 1.9 Trillion USD, and if the projections are to be believed by 2020 the market shows a growth up to 4.06 Trillion in the year 2020(Gerpott, May &Nas, 2017) Amazon itself earned revenue of 136 Billion in the same year and the rest was divided among the other players. The projected data clearly shows the enormous growth in the e-commerce market in the world, certainly a lucrative deal for Amazon to increase its pie in the existing market share (Nisar & Prabhakar, 2017)Micro Environmental AnalysisUnderstanding the business environment is highly important as it helps to ascertain the factors and forces which affect the ability of the firm to build and maintain successful customer relationship (Kotler & Keller, 2017) Micro environmental factors are the internal forces within the company which affect the ability of the company to serve its customers. Porter 5 forces and BCG matrix will beused to analyse the Micro environmental forces of Amazon (Greenspan, 2017)Porter 5 force modelIt is one of the most relevant models which is highly appreciated and used in the marketing ecosystem; Porter’s model helps in determining the market profitability and its attractiveness.Bargaining power of CustomersAmazon is highly customer-centric in its approach and all its processes and policies are diverted towards enhancing the customer shopping experience.

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