Digital Marketing Strategy for Amazon

This essay discusses the development of a digital marketing strategy for Amazon. It includes a situational analysis, micro and macro environment review, digital business model canvas, SOSTAC model, multichannel strategy, and key performance indicators for each online channel. The goal is to improve Amazon's market share in the e-commerce industry.

Msc- digital marketing
strategy and analytics

Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Brief of the company..............................................................................................................3
Planning to improve the market share by investing in Digital Marketing.............................3
Marketing proposal..........................................................................................................................4
Situation analysis for digital marketing..................................................................................4
Micro and macro environment and systematic review of the environment...........................4
Digital business model canvas (BMC) for the selected company provide brief summary on the
various elements.....................................................................................................................6
SOSTAC model to develop successful digital marketing strategy........................................7
Multichannel digital marketing strategy.................................................................................8
Strengths of digital marketing strategy...................................................................................8
KPIs for each online channel..................................................................................................8
Company’s international marketing mix................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Present essay is going to be enclosed with a digital marketing strategy in order to enhance
the overall performance level of the company and in order to grab huge potential based
consumers from all over the world. Company that has been taken into consideration is Amazon
which is B2B and b2c organisation that is conducting business at international level (Symons and
et. al., 2019). Report will be conducting situational analysis for developing a digital marketing
strategy, micro and macro environment analysis is also going to be conducted. Digital business
model Canvas, SOSTAC model and lastly a multi-channel digital marketing strategy is also
going to be developed considering the different KPIs of it.
Main Body
Brief of the company
One of the most famous business organisation which is Amazon based in Seattle consist
with more than 750000 staff, which is focusing on cloud computing, e commerce, artificial
intelligence and digital streaming. It is considered to be the largest B2B and b2c organisation that
serves to both customers and businesses (Chaffey and Ellis-Chadwick, 2019). Basically, this
organisation is known for its destruction strategies considering mass scale, technological
innovation among different aspects which helps them in sustaining in the market and giving good
rivalry two different business companies like eBay, Alibaba, and many more. Recently, company
has faced decline among its performance which it wasn’t because of the weak digital marketing
strategy that company has adopted in the past.
Planning to improve the market share by investing in Digital Marketing
Currently, Amazon consists of 10% of the market share within global e-commerce and
planned to enhance these numbers in order to gain competitive advantages, to give good rivalry
two different business organisations that are dealing with an E-Commerce and other industries in
which Amazon is performing its operations. In order to do so company has decided to improve
its digital marketing strategy to investing in it and focusing upon different channels through
which digital marketing can be done.

Marketing proposal
Situation analysis for digital marketing
Basically, situation analysis consist of different elements like micro and macro
environment which needs proper review so that an effective digital marketing strategy can easily
be developed by a business organisation like Amazon (Thomas, 2017). In order to analyse the
overall situation of the company SWOT analysis and PEST analysis are conducted in order to
evaluate the existing performance that company has already reforms in the past and to look
among future opportunities which will help company in sustaining and to improvising the market
share at international level.
Micro and macro environment and systematic review of the environment
SWOT analysis
Strengths:
Solid brand name, As a worldwide web based
business goliath, Amazon has a solid position
and effective brand picture in the market. Brand
valuation, According to Interbrand's Global
Brand Ranking 2019, Amazon is positioned at
#3 position (after Apple at #1 and Google at
#2), with a brand estimation of $125 Billion.
Client situated as Amazon takes into account
countless clients for ordinary needs at
reasonable costs. This has made it a client
arranged brand.
Weaknesses:
Losing Margins in Few Areas where im
hardly any territories, for example, India,
Amazon has confronted misfortunes. It's
free delivery to clients can be one reason
that uncover the dangers of losing edges in
certain business sectors. Item Flops and
Failures where, its Fire Phone's dispatch in
the US was a major disappointment while
its Kindle fire gadget didn't develop well
(Hall, 2017).
Opportunities:
Amazon can pick up the chance to enter or
extend its activities in creating markets. Also by
growing physical stores, Amazon can improve
seriousness against large box retailers and draw
in clients with the brand.
Threats:
Barely any debates have caused a scratch in
Amazon's image picture. Individuals
fundamentally responded and boycotted
Amazon locales in 2010 when they found
that it's selling the book "The Pedophile's
Guide to Love and Pleasure. Also,

Government guidelines can likewise
compromise the business procedures of
Amazon in some basic nations. Amazon
doesn't transport Sudan North Korea, and
Styria.
PEST Analysis
Political: Endeavours of Governments on Cyber-Security, where expanding incorporation
of web and web based items and administrations into different parts of individual and expert
existences of individuals has provoked the development of digital wrongdoings in different
structures. Simultaneously, governments are battling digital violations through different
measures, despite the fact that the stretch out of scope of measures utilized and the reach out of
viability of their application change from nation to nation.
Economic: Changes in Currency Exchange Rates where in 2017, net deals from global
business represented 28% of Amazon united revenues. The business is exposed to cash trade
dangers as it were. This could be understood with a good example where U.S. Dollar debilitates
year-over-year comparative with monetary standards in Amazon global areas, its combined net
deals and working costs will be higher than if monetary standards had stayed consistent
(Naumov and et. al., 2020).
Social: In present time, public wouldn't trust Amazon is contrarily affecting the general's
wellbeing, Also, Stoutness is expanding among grown-ups and youngsters like never before
previously. The legislature is feeling the squeeze to improve the ways of life by presenting new
bills and changing how inexpensive food chains oversee dietary data. Including this, with
Amazon acquainting more ways than any time in recent memory with get your items without
leaving the sofa, they've experienced harsh criticism.
Technological: They depend intensely on changing degrees of innovation to disseminate
their items to clients. They're trying different things with new and imaginative ways for clients to
get their bundles. In 2017, Amazon started testing their new activity: ramble conveyances. It's
not as simple as it sounds. They should conform to government guidelines to permit the
utilization of drones along these lines. In any case, a significant snag is the manner by which
these drones or automatons can really convey these bundles to the client.

Digital business model canvas (BMC) for the selected company provide brief summary on the
various elements
Key Partners: In present context, delivery providers, IT hardware suppliers, merchandise
suppliers are said to be some of the crucial partners that would help company in developing an
effective digital marketing strategy.
Key Activities: Technological research and development, fulfilment and inventory
management are said to be some of the crucial activities that are already been done by Amazon
in order to improvise their operations management so that they can sustain in the market.
Value Proposition: In order to develop an effective digital marketing strategy, Amazon has
already captain its focus on different elements like online retailing, Amazon Prime, Amazon
Web services, fulfilment by Amazon and many other aspects which specifically helps company
in enhancing value proposition in front of its customers.
Key Resources: Data centres, innovative system for managing the inventory and many other
are said to be some of the key resources of Amazon (Zantedeschi, Feit and Bradlow, 2017).
Channels: Mobile applications, affiliates, APIs are said to be some of the existing channels
that are used by Amazon in order to conduct business at international level.
Cost structure: IT infrastructure cost, content cost, marketing cost, fulfilment cost and more
are said to be some of the budgeting related cost structure that are followed by Amazon.

Customer relations: AWS, personalized recommendations considering the search engine
optimisation and other tools Amazon helps its customers to you look among different aspects
based and their needs and requirements.
Customer Segments: Content creators, entrepreneurs, consumers at global level are said to
be some of the segments to which Amazon targets.
Revenue Streams: Subscription fee of Amazon Prime, sales margin, commissions are said to
be some of the revenue generated for Amazon.
SOSTAC model to develop successful digital marketing strategy
Situation: This is the primary stage of SOSTAC model where, if it is talk about Amazon
then company has around 10% of market share at the international market within e commerce
industry. in order to enhance this it will be required by company to take decisions right on time
so that market share can be improved.
Objectives: Amazon is looking forward to expand its business with the help of digital
marketing strategy and company has made an objective to gain 20% of the market share within
E-Commerce industry at international level. This can be done by the company through adopting
a multi-channel digital marketing strategy.
Strategy: Amazon has decided to take into consideration of search engine optimisation and
social media as their crucial channel for enhancing their customer base. This will be done by
performing an effective multi channel digital marketing strategy.
Tactics: Promoting the brand itself of Amazon considering different channels like email,
social media, content marketing and different other channels will help Amazon in grabbing the
attention of most of the customers and it will directly help company in enhancing its market
share and much effective and efficient manner (Shareef, Dwivedi and Kumar, 2016).
Action: Bringing modifications among the existing digital marketing strategy, focusing
upon fulfilling the innovative needs and requirements of customers and delivering them the
appropriate information about what innovative products and services are offered by Amazon as it
will directly help company in in reaching to the ultimate goal which is to expand market share at
international level.
Control: If the market share of Amazon will increase in a certain period of time which has
been desired by company then it can considered to be one of the measurable tool that will help

company in taking right decisions at correct time in order to attain the desired goal if anything
wrong takes place.
Multichannel digital marketing strategy
Multichannel marketing is the implementation of a single strategy across multiple channels
or platforms, thus maximizing opportunities to interact with prospective customers. If it is talked
about Amazon then the company has taken into consideration of blogging, email, social media,
SMS, and other channels which are used by public mostly in a daily routine. This is where
Amazon will be targeting the customers with the help of search engine optimisation which is a
crucial system that will help company in in gaining the detailed information about customer
needs and requirements. This will help company in developing the loyalty rewards program for
the customers which is considered to be multi channel digital marketing strategy for Amazon.
Strengths of digital marketing strategy
If it is talked about the strength of digital marketing strategy that has been developed by
Amazon then it will help company in enhancing the revenue in between the percentage of 5 to
10. Also so it will help company in developing the loyalty members buy 5 to 20% rather than
non members which are considered to be the average deliverables. Also, it will help Amazon in
in enhancing the purchasing capacity of loyal individuals buy 5 to 20% which is more frequent
than non members. Therefore, these are said to be some of the strength of multi-channel digital
marketing strategy which will help Amazon in reaching to its ultimate goal of gaining 20% of the
market share within e commerce industry at international level (Chaffey and Smith, 2017).
KPIs for each online channel
 Key performance indicators of social media will be the redemption rate, where if it will
be low then it can easily be said that value which has been provided to customers by
Amazon is not that much effective in nature. It has been analysed that lack of awareness
of different aspects like current trends, needs and requirements of the customers and
many more are said to be the crucial reasons for low redemption rate for Amazon (Chou
and et. al., 2016).
 If it is talk about email which is an online channel, then repeat purchase rate is considered
to be one of the key performance indicator for this online channel at the time of following
the loyalty rewards program which has been developed by Amazon. It can be said that

negative response or low experience if received by customers that are targeted within the
crucial multi channel digital marketing strategy which is loyalty rewards program then it
will be impacting negatively upon overall performance level of the company and on the
investment done on digital marketing strategy by Amazon.
 Blogging which is another online channel, where the key performance indicator for this
channel will be customer lifetime value. Basically, this will help Amazon in looking
among different aspects of the customer and knowing the value of the individual based on
the consideration that are given over a particular innovative product that has been
launched by Amazon with the help of loyalty rewards program. Here, it can be said that if
appropriate value is not given to the customers then it will directly impact negatively
upon overall performance level of the company and it will also impact on the desired
goals and objectives of the future of Amazon (Hu and Tracogna, 2020).
Company’s international marketing mix
Products: Through proceeded with extension and enhancement, the organization's items
presently incorporate online retail, yet in addition an assortment of different items that address
advertise needs are Retail service, Retail goods, Amazon Prime, Consumer electronics, Digital
content distribution service, Amazon Video, Amazon Web Services (AWS) and many more.
Place: The settings used to arrive at target clients are distinguished in this segment of the
promoting blend. Amazon.com Inc. is a for the most part online business association. In any
case, the organization utilizes the accompanying spots to arrive at its online business clients:
Official e-commerce websites, Amazon Books and so on.
Promotion: Publicizing capacities as the essential methods for Amazon to speak with its
objective market. For instance, the organization has a subsidiary program for site proprietors or
online distributers to gain incomes by showing promotions and relating connections to items sold
on the Amazon.com site. This procedure augments the organization's market reach. Likewise,
Amazon.com Inc. applies sales promotion as an auxiliary system to pull in clients and convince
them to buy products and enterprises on the site (Sridhar and Fang, 2019).
Pricing: Amazon utilizes market oriented pricing as its essential valuing methodology. For
instance, the organization assesses contenders' costs as reason for estimating Amazon basic
items. The upside of this valuing methodology is that it makes selling costs progressively
serious, moderate and appealing to target purchasers.

Conclusion
With the help of above mentioned report, it can easily be said that considering a unique
digital marketing strategy in today’s market, a company like Amazon can easily improvise its
existing market share in much effective and efficient manner. Also, it is needed by the company
to keep on looking among different trends that are adopted by its rivals and also it is important
for the company to conduct proper analysis of the situation before reaching to a conclusion of
making decisions for building a unique strategy in relation to improve their customer base or
their market share.

References
Books and journals
Symons, M. and et. al., 2019. Multichannel digital marketing platform. U.S. Patent 10,332,042.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Thomas, I., 2017. Using multi-armed bandit experimentation to optimise multichannel digital
marketing campaigns. Applied Marketing Analytics, 3(2), pp.146-156.
Hall, C., 2017. Multichannel brand storytelling. Journal of Brand Strategy, 6(3), pp.237-241.
Naumov, V. and et. al., 2020. Methodological principles of forming multichannel digital
communication in the supply chains. In E3S Web of Conferences (Vol. 157, p. 05010).
EDP Sciences.
Zantedeschi, D., Feit, E. M. and Bradlow, E. T., 2017. Measuring multichannel advertising
response. Management Science, 63(8), pp.2706-2728.
Shareef, M. A., Dwivedi, Y. K. and Kumar, V., 2016. Exploring multichannel design: Strategy
and consumer behaviour. The Marketing Review, 16(3), pp.235-263.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Hu, T. I. and Tracogna, A., 2020. Multichannel customer journeys and their determinants:
Evidence from motor insurance. Journal of Retailing and Consumer Services, 54,
p.102022.
Sridhar, S. and Fang, E., 2019. New vistas for marketing strategy: digital, data-rich, and
developing market (D 3) environments.
Chou, S. Y. and et. al., 2016. Multichannel service providers' strategy: Understanding customers'
switching and free-riding behavior. Journal of Business Research, 69(6), pp.2226-
2232.