Amazon Australia Marketing Strategy Analysis

This assignment provides a detailed analysis of Amazon's market entry into Australia, focusing on the company's marketing strategy. Using Ansoff's growth vector matrix model, the report examines Amazon's market penetration, product development, market development, and diversification strategies. The analysis reveals that Amazon's market penetration was the primary strategy used to emerge in the Australian market. Additionally, recommendations are provided for Amazon to enhance its shipping services, offer low-price products/services, and introduce Prime Services to sustain its brand image in Australia.

MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND OF AMAZON AUSTRALIA.............................................................................1
MARKETING ANALYSIS.............................................................................................................2
The nature of Amazon Australia’s Marketing Strategy..............................................................3
Strategic marketing option for Amazon Australia to move forward...........................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8

INTRODUCTION
Marketing plays an important role in every business. It is a process that is used to
promote company's products and services or those promotional services which are opted by an
organization such as advertising, direct sales etc. The report deals with Amazon which is one of
the leading companies at national as well as international level. Quoted company is a retailer
firm which deals with variety of different products such as furniture, games, food, toys,
electronic gadgets etc. The main purpose of this report is to apply different theories to analyze
strategies of Amazon. It describes meaning of marketing strategy and provide what scheme are
opted by a company to expand its business in Australia. Further, it presents different marketing
options taken by listed company to become successful in this country for next decade.
BACKGROUND OF AMAZON AUSTRALIA
Amazon is one of the most leading and brand companies of USA and recently expanded
its business in Australia too. It is an online store which has variety of products such as toys, food,
electronic gadgets, furniture and many more at low and affordable prices. It is considered as the
second mostt competitive company in the world who earns the largest profits by means of
revenue. It offered its products and services in more than 30 countries with net operating revenue
of $ 106 billion with more than 566000 employees in all online stores.
To expand business in Australia, this is a great opportunity for Amazon and initially it
faced some major testing phases that was encountered and as a result, it took lot of time to grew
there. This firm provides the best tools for small as well as medium sized merchants to sell their
products through online mode. That is why, Big Commerce launched Amazon in Australia with
managing price strategy and allow customers to take advantages. Initially at the time of
emergence, it spent lot of money but after sometimes, it became a branded company in Australia
(Hanssens, 2018). Quoted company is a public sector company and is the fastest growing entity
in Australia that offered low rate of products as compared to their rivals.
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As per the performance data of Australia, it has been analysed that listed company has
provided the best quality of products while competing with other branded companies such as
Myer, David Jones etc. and even Kogan which is an online shopping company is also no match
to Amazon in terms of comparing marketing strategies and prices. From last many years, visitors
got also increased which proved that this company had good marketing strategy to attract wide
range of customers (Andrews and Shimp, 2017).
MARKETING ANALYSIS
Marketing analysis is a study to identify which special market is benefited for particular
industry. For Amazon’s emergence in Australia, it needed a different strategy to develop its
business’s success point and to raise their profitability as well as productivity (Charter, 2017).
Marketing is a process to promote products and services in market by using different
promotional techniques such as advertising, direct sales, billboards, word of mouth etc.
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Illustration 1: Australia Amazon - Oct 2017- March 2018
(Source: Amazon Australia Left Myer, Kmart, 2018)

The nature of Amazon Australia’s Marketing Strategy
Amazon adopted low cost marketing strategy as a tool to expand its business in Australia
and by using Ansoff's growth vector matrix, Amazon can easily expand its business at global
level and the following model is mentioned below:
Ansoff's Growth Vector Matrix Model
Market penetration: It refers to sell Amazon’s existing products in existing market
only. This strategy helps a company to expand its business in current market only. In the context
of Amazon, the company provides the best quality of products to people in the best and
affordable prices and by using market penetration, the company did not require any extra
spending to incurred losses while setting up new business. While on the other side, Amazon used
different marketing strategies to promote their existing products into Australia’s current market
(Armstrong and 2015).
Product development: This strategy refers to developing new products to sell it in
existing markets. It is one of the core strategies used by Amazon. Recently, quoted company
started to sell Jeff Bezos’s book as the only physical online book that is offered by Amazon
exclusively. This will help to occupy large market share to attract wide range of customers.
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Illustration 2: Ansoff's growth vector matrix
(Source: Ansoff's growth vector matrix, 2018)

While on the other side, it has to invest lot of amount for distributing, advertising, and displaying
(Lovelock and Patterson, 2015).
Market development: This strategy is related to finding new markets for existing
products and Amazon deals with it in a systematic manner such as it started its business only in
USA but currently, it is a global level company which deals with 13 countries. It has been
critically evaluated that marketing strategy is quite riskier because some investment needs to be
done when entering into new market and uses different and innovative promotional activities.
And while emerging in Australia, Amazon uses social media as a promotional tool to raise
company's brand image (Tuten and Solomon, 2017).
Diversification: It is one of the most riskier strategies among all because it is used when
completely new product is introduced in new market and listed company used this strategy up to
some extent only such as Amazon uses diversification in media, hardware and its advertising
business segments. Moreover, it can be sued when a company has strong financial status because
it requires lot of investment and if not successful, then bear heavy losses which cannot be
afforded by small businesses. That is why Amazon uses this in particular cases only (Möller and
Halinen, 2018).
Among all, it has been concluded that amazon uses market penetration strategy because it
is one of the simplest methods which needs a growth strategy in existing market. By using
market penetration, Amazon can easily expand its business because it requires no extra cost to
spend and with its best promotional activities, it can raise its brand image among the people of
Australia. Being an online company, it uses social media as a promotional tool because today’s
generation is completely connected to internet and social media; that is why, choosing social
media is a good option for Amazon to emerge in Australia (Charter and Polonsky, 2017).
Strategic marketing option for Amazon Australia to move forward
There are so many options which help Amazon to move forward in positive direction that
will help them to raise their brand’s image for next decade. The current market situation of
Amazon Australia is up to the mark and it also shapes up the retail market of Australia. The
Australian Financial Review Report shows that Amazon’s marketing strategy will be more
effectual to enter into Australian market. While some observers see Amazon's arrival as a good
thing which help to generate more revenues for their country but its rivals were in threat of
losing their market share with good customers.
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Initially, a quoted company's share is in between 1-25 percent in market and it alone
raises 50% of its online sales growth. Another marketing strategy which can be taken is forced
Amazon to raise its prices. It offers such low rate products that benefit to raise its image and
maximizes its profit.
Some marketing strategies which a firm must use to continue its brand image for next
decade are mentioned below:
 Amazon is an online retailer store, so it must reduce its shipping time for non- prime
members too. By doing so, it will help to build a good reputation on the platform and as a
result, it will help to increase its customer base. Moreover, Amazon must keep
monitoring its offers as they have a fast and efficient delivery, return policy as well as the
best customer services (Amazon recommendation, 2018).
 A company must take feedback from customers related to their price offering, quality of
offered products and try to improve those because it will help to build trust with
Australian consumers.
 Company must use all latest data and smart technologies to communicate effectively with
customers that will help them to generate positive impact upon its sales.
 Amazon must use new promotional tools that help to let people know about new offers
by social media platforms like Facebook, Twitter or display advertisement can help to
enhance its brand image in market (Olson and et.al., 2018).
 It has been analysed that listed company uses its online platform to build loyalty by
subscription style name as 'Amazon Prime Services' where people enjoy its benefits such
as free 2-hour delivery, quick services and easy to return policy etc. This loyalty
subscription style makes Amazon superior among all online companies.
 Company must use different discount offers that makes an organization unique from
others and as a consequence, it will aid to attract wide number of customers. On the other
side, it should provide some shipping benefits such as Amazon's free shipping with quick
delivery as an attractive feature.
 Having such a strong financial status, it has been also realised that only 41 percent of
retailers founded the quoted company as a threat and 11 percent of them see them as an
opportunity for Australia and only 5 percent of them have a strategy to cope up with it.
This shows that market of Amazon kept raising and to maintain its current market share,
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they must use new and latest digital technologies to increase its e- commerce market raise
in Australia as well as in near countries too (Goldberg, Fishbein and Middlestadt, 2018).
 By introducing loyalty cards and membership will help to get fastest delivery to maintain
the loyalty of customers’ base. To cope up with advance technologies and uses variety of
promotional tools will also help company to build new customers base.
 By focusing on quantitative result, it will also help Amazon to raise its growth in current
market as this company has to target some market or place where listed company can
easily earn or generate profits which raises the current financial status.
By using these recommendations, Amazon will definitely enhance its brand image in
market and can foster its services for further years.
CONCLUSION
By summing up the above report, it has been concluded that Amazon used the best
marketing strategy to emerge into Australia and as a result, it raised its productivity with good
profit. This report built an understanding of this company’s marketing analysis by using Ansoff's
growth vector matrix model.
Amazon Australia easily determined its marketing strategy in which market penetration
helped to emerge and keep its current market up in the listed country. Present project also
described different marketing options such as by enhnacing its shipping services, offering low
price products/ services and introducing Amazon Prime Services to be used to sustain its brand
image for next decade.
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REFERENCES
Books and Journals
Andrews, J. C. and Shimp, T. A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Armstrong, G. and et.al., 2015. Marketing: an introduction.
Charter, M. and Polonsky, M. J. eds., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Goldberg, M. E., Fishbein, M. and Middlestadt, S. E., 2018. Social marketing: Theoretical and
practical perspectives. Psychology Press.
Hanssens, D. M., 2018. The value of empirical generalizations in marketing.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Möller, K. and Halinen, A., 2018. IMP thinking and IMM: Co-creating value for business
marketing. Industrial Marketing Management. 69. pp.18-31.
Olson, E. M. and et.al., 2018. The application of human resource management policies within the
marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Tuten, T. L. and Solomon, M. R., 2017. Social media marketing. Sage.
Online
Amazon recommendation. 2018. [Online]. Available through:<https://www.ireckon.com/customer-
experience/amazon-australia-threat/>.

APPENDIX
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