Report on Amazon Australia - Marketing Strategies and Future Growth

This report provides detailed information about the marketing strategies used by Amazon in Australia since its inception in the country. It also highlights the strategies that will enhance the growth of the organization in the coming future.

Running Head: REPORT ON AMAZON AUSTRALIA
Report on Amazon Australia

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Report on Amazon Australia
Executive Summary
This entire project has been done in a report format, which gives detailed information
about the marketing strategies used by the organization in Australia. The report starts with an
introduction to the topic that has been discussed throughout the assignment. Next, a vivid
description has been given on the background and the history of Amazon. This will give the
readers an idea about the core functions and the presence of the organization in the entire world.
Next in the report, analysis has been done on the marketing strategies used by Amazon in
Australia since its genesis in the country. Later the report deals with the strategies that will
enhance the growth of the organization in the coming future.
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Report on Amazon Australia
Table of Contents
Introduction......................................................................................................................................4
Background to the Company...........................................................................................................5
Marketing Analysis..........................................................................................................................6
The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began..................6
Strategic Marketing Options for Amazon Australia moving forward.........................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
Appendix........................................................................................................................................11
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Report on Amazon Australia
Introduction
Every organization needs to develop some marketing strategies in order to survive in the
market among the other competitors. Amazon being a goliath in the e-commerce sector has
recently opened up its operations in the continent of Australia (Jager, 2017). Being one of the
biggest e-commerce retailers in the world, Amazon took time to enter the market of Australia as
it faced hindrance from the other traders and the retailers of the entire continent. Amazon opened
up its operation in Australia last year in the month of April, 2017. Every organization needs to
have marketing strategies in order to fetch the potential consumers from the market. Marketing
not only means promotional activities for selling the products and. Marketing includes a wide
array of activities which includes researching the market for understanding the needs and the
psychology of the potential consumers and so on. In this project, a brief discussion will be
provided on the background of Amazon (Jager, 2017). In addition to this, marketing strategies
used by Amazon since its inception in Australia will also be discussed. In addition to this, the
marketing strategies that can be used by Amazon to attain growth in the future will also be
highlighted.
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Report on Amazon Australia
Background to the Company
Amazon is an e-commerce organization that caters to the different needs of the
consumers. The site has wide-variety of products that suffice the needs of the different
customers. Amazon was founded by Jeff Bezos in the year of 1994 and it was launched the year
after that (Amazon.com | History and Facts, 2018). The organization is based at Seattle but
operates in many countries of the world. Amazon started as an online bookstore and quickly it
had added products to its kitty like DVD’s, electronics, clothing and video games. In 1999, Jeff
Bezos was declared the honored as the ‘Person of the Year; by the Times Group because he was
hugely successful in popularizing and commercializing online shopping. Amazon now is the
largest e-commerce site in the world. It operates in UK, USA, Japan, China, Mexico, Singapore
and India and last year it has opened up its operation in the continent of Australia. Rocco
Braeuniger is the operating head of Amazon in Australia (Amazon.com | History and Facts,
2018).
The retail sector of Australia has a worth of 165 million pounds. Therefore, it can easily
calculated that Amazon is going to have large section of people to cater to. The name was chosen
as Amazon because it meant different and exotic. The growth of the organization was really
slow. In the first five years of operation that company did not make any considerable amount of
profit. It has almost 400 physical stores in Australia and recorded approximately 566,000
employees working for the organization all over the world. In the present times, it was added
Amazon Prime Video in its services which provides videos of various shows and films through
monthly subscription (Amazon.com | History and Facts, 2018). Amazon follows the 7P’s of
marketing. It majorly focuses on the product and the place element of the marketing mix
framework.
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Marketing Analysis
The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.
Every organization needs to have a set marketing strategy in order to taste success in the
market. In the same way Amazon has some marketing strategies to ensure that it get success in
Australia. All over the world and in Australia, Amazon uses the 4P’s of marketing mix in order
to enhance its marketing strategies (Ryan, 2016). Along with the marketing mix strategy, the
organization also used some market entry strategies in order to grab the potential in the
Australian market. There are no giant organizations in Australia that operates in the e-commerce
sector of the country. There are some sites; however the services and goods provided by them do
not suffice the needs of the consumers. Amazon focuses on faster deliveries, competitive prices
and huge range products as its secondary marketing strategies. Primarily the organization relies
on the 4P’s of marketing mix. The 4P’s of marketing mix of Amazon is given below:
Product:Amazon is an e-commerce site, which is international in nature. The consumers
visiting the site get to choose from a vast range of product and buy the ones that suffice their
taste. Various delivery companies are associated with Amazon who deliver the products at the
door-set of the customers (Wedel and Kannan, 2016). The marketing strategy of Amazon is, it
has a huge product base. It has product in high –range as well as in low-range. There are branded
products as well as non-branded products. The various types of products sold in the site are
books, every kind of electronic gadgets, jewelry, games, gaming soles. Beauty and hygiene
products and the list is endless. The organization has thrived on its product strategy from the
marketing mix.
Place:In the recent time, online sites such as eBay have been fraudulent in nature and the
services from the organization have detoriated by multiple folds. The organization is nowhere
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Report on Amazon Australia
seen or heard now. This occurred due to people lost in trust in buying goods online. The brand
image of Amazon is quite high among the other competitors it as in the e-commerce industry.
And this trust helps the organization improve the bottom line. Amazon has done a lot of research
and development to secure its site so that the customers have a hassle-free shopping experience.
In Australia the organization’s marketing strategy was to play on the good will it has earned
globally (Leeflang et al., 2014).
Promotion: The promotional strategies used by Amazon are either television promotions
or promotions through the website. The organization also stresses on various discounts to
promote its products and items available in the website. The other promotional activity that is
used by Amazon is the products that the consumer searched for in the site, he or she will pop-up
advertisements of related products in the other application it uses. This helps the organization to
promote the various products it has in its kitty. Search engine marketing is also being used by
Amazon in Australia to promote its website and its products (Babin and Zikmund, 2015).
Pricing: After the product strategy, pricing strategy is the marketing component that Amazon
concentrates on to thrive in the markets of Australia also earn a competitive advantage. Amazon
tries to keep the price of the products lowest among the other competitors. There are other
initiatives in the site as well. Like the premium members gets a free and faster delivery and for
this there is a yearly subscription charge (Pride and Ferrell, 2016). This keeping the price lowest
for the products is not just used in America or India, it is used in Australia as well. This strategy
of the organization has helped it to fetch more consumers in the market.
Strategic Marketing Options for Amazon Australia moving forward
The marketing strategies of every organization needs to change in order to survive in the
highly competitive market. Similarly for Amazon, the organization needs to bring some
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strategies in, so that it can remain as the most promising organization in the e-commerce sector
of Australia (Chaffey, 2015). The organization is facing threats from the local retailers present in
the country. Their extensive operation in the country can harm the business of the organization.
In such a scenario, it will be a wise decision for the head officials of Amazon to bring the
retailers inside the umbrella of the organization. In this way, the local retailers should be able to
perform their business and the threat from them will not ponder upon Amazon. This strategy
would help the organization grow in Australia in the next decade (Xu, Gao and Hammond,
2017). From the marketing strategies mentioned above, the organization should encash on the
pricing strategy and the product strategy as the organization is in the initial phase in the country.
Promoting the sites and increasing the area where deliveries can be done should be increased to
get more consumers for the organization.
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Conclusion
This report on Amazon has discussed the marketing strategies used by the
organization in Australia. It can be seen that, the marketing strategy it has used in America in its
initial phase is still applicable in the present day as well. The organization has various
opportunities to grow in Australia as the retail sector is huge. The people of Australia leads a
decent style of living which will fetch more consumers to the organization. In addition to this,
Amazon should be ready for future threats and uncertainties, which might crop up any moment.
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References
Amazon.com | History & Facts. 2018. Encyclopedia Britannica. [Online] Available at:
https://www.britannica.com/topic/Amazon [Accessed on: 20th Sept, 2018]
Australia - buying intentions Amazon 2017 I Statistic. 2018. Statista. [Online] Available at:
https://www.statista.com/statistics/878469/australia-buying-intentions-amazon/ [Accessed on:
20th Sept, 2018]
Babin, B. J., and Zikmund, W. G. 2015. Exploring marketing research. Cengage Learning.
Chaffey, D. 2015. Digital business and e-commerce management. Pearson Education Limited.
Jager, J. 2017. Amazon Australia: everything you need to know. The Sydney Morning Herald.
[Online] Available at: https://www.smh.com.au/technology/amazon-australia-everything-you-
need-to-know-20171121-gzphez.html [Accessed on: 20th Sept, 2018]
Leeflang, P. S., Verhoef, P. C., Dahlström, P., and Freundt, T. 2014. Challenges and solutions
for marketing in a digital era. European management journal, 32(1), 1-12.
Pride, W. M., and Ferrell, O. C. 2016. Foundations of marketing. Cengage Learning.
Ryan, D. 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Wedel, M. and Kannan, P.K., 2016. Marketing analytics for data-rich environments. Journal of
Marketing, 80(6), pp.97-121.
Xu, J., Gao, X. and Hammond, J., 2017. E-tailing in Australia: A preliminary analysis of David
Jones. International Technology Management Review, 6(4), p.149.
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Appendix
Figure 1: The items that consumers buy from the Amazon site in Australia
(Source: Australia - buying intentions Amazon 2017 I Statistic, 2018)
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