Revamping Marketing Strategies for Amazon's Fire Phone

This report discusses the revamping of marketing strategies for Amazon's Fire Phone, which was a failure product. It includes a description of the company and product, SWOT and PESTLE analysis, marketing mix evaluation, and methods to improve branding and reputation. The report suggests expanding the business to more developed markets, implementing a unique selling proposition, monitoring the market trend, and investing in promotions and distribution channels.

Marketing Management

Executive summary
Marketing management is a systematic tool used by various firm to manage the positioning of a
brand and its products that a firm sells to customers. This task is performed by marketing
managers of the company in order to attract the customers to purchase the company’s product.
The most important task of marketing is to raise brand awareness and adopt various methods to
promote product details to clients. Amazon is one of the most successful brands which deals in e-
commerce and cloud computing in UK. The company has given lots of options to their customers
by providing them varieties of products or service on its platform. But in recent times, one of the
amazon products falls under the category of “failure product” named as fire phone. Therefore,
the report has provided revamping of the product with respect to competitive organisational
environment by applying analysis tools in order to identify threats and opportunity. The firm
uses various strategy to improve the branding and enhance the image of product.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1.Description of organisation and its product for the revamping................................................4
2.Exploring the competitive organisational environment by applying environmental analysis
tools to identify opportunities and threats that impact on amazon..............................................5
3. Examining marketing mix , focusing on the 4Ps....................................................................7
4.Evaluating the methods to improve the branding and reputation of product...........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing management is the method to organise and manage positioning and
promotional activities of company’s products. Typically, marketing managers are the people who
are responsible for managing product’s image and they are more focused on attracting more
audience to purchase from the company. Amazon, UK, is a technology organisation which deal
in digital steaming, e-commerce and others. Amazon fire phone was one of the flop products
within the portfolio of the organisation. The present report will provide a brief description of the
company and the product along with revamping the marketing strategies. Further the case study
will give SWOT analysis and PESTLE analysis of company and its product. In addition to this,
report will examine marketing mix and provide suggestion on improvement. Finally, the study
will evaluate major steps to improve branding and reputation of product and its impact.
1.Description of organisation and its product for the revamping
Amazon is one of the top organisations in united states which deals in cloud computing,
artificial intelligence and e-commerce. The company also focused on selling electronic items,
groceries, music equipment’s, housewares, toys, books, clothing and many other products. The
firm is having big warehouses where the products are being stored and all the goods are being
managed here from start to finish ( Deepak and Jeyakumar, 2019). Here, the inventory comes in
from manufactures and is delivered directly to suppliers, vendors and customers. The firm has
excellent supply chain management in order to fulfil the needs and wants of clients. Amazon is
famous for varieties of products and giving opportunities for small business and local suppliers
where they can use company’s online platform. The firm provide chance to content creators so
that they can attract more audience to buy services or goods. They run a number of events and
programmes in order to help small scale business so that they can increase their productivity.
They provide practical support to employees working in the organisation and help to boost the
revenue and performance of the firm. They are working hard to protect environment with their
eco-friendly packaging method thus they have maintained sustainability.
In the year 2014, company has announced amazon fire phone in order to compete with
other smart phone in the market. But it was one the biggest flop product as it was discontinued in
the year 2015 after first launched. Features of the product- 3D face scanning technology, which
most of the clients found worthless and gimmicky. According to research, customers was not

happy with the phone’s bland industrial design and overpriced so, it was disappointing for them
(Hutt and Speh, 2021). Due to this, company has to cancel the project and it look a loss of almost
$170 million which is quite high amount.
2.Exploring the competitive organisational environment by applying environmental analysis
tools to identify opportunities and threats that impact on amazon.
SWOT analysis
Strengths- Amazon is one of the most popular brands for e-commerce with 350 million
goods for sale on its online and physical stores. The company is famous for best deals and
varieties of products or services. Its market position, marketing performance and its strategies are
their greatest strengths (Amazon SWOT Analysis, 2021). The firm is expanding its business
globally and this helped it enter new competitive markets and compete with many e-commerce
companies. On the fire phone side, the features of the phone seem to be a key differentiator with
new systems. Beyond this, the device emphasizes multimedia button for the camera and
unlimited storage for photos. Along with this, if clients would purchase a 2-year contract with
AT&T then they will get a free subscription of amazon prime for one year. All these features
make the product one-stop amazon purchasing experience for their customers.
Weaknesses- As the company provide free shipping to many its clients, it will impact profit
margins and hence, might not be able to do optimum utilization of resources and cost strategy.
Due to heavy competition in smart phones, the company lose almost $170 million for its fire
phone launch and created limited market share growth. As the firm is totally dependent on local
suppliers and stakeholders it will impact its business, distribution channels and the supply chain
management.
Opportunities- After covid-19, the people are more concerns about health and social
distancing so, they are now more interested in buying products online. This opportunity has
created benefit for the company to increase internet usage as it will boost the firm’s presence in
the competitive market. The firm can do partnership business with different corporations for bulk
selling of products or services. It will ultimately increase the sale of phones on the online
shopping website of amazon. With the help of small business acquisition in its phones selling
and inventing gaming in the phones feature, the company can explore its distribution channel and
networking.

Threats- Due to increase in online purchasing fraud related to online payment, the company
have high risk of negative brand image. Another biggest threat to the company’s success is the
increasing trend of online shopping because of hacking which can impacts privacy and security
of customer personal data. Because of high price of products and price strategies the firm has had
to face a lot of challenges in the retailing industry.
PESTLE analysis
Political Factors- Government support for new innovation and e-commerce business is one
of the biggest opportunities for the company. The firm has expanded its business in developed
countries and using its strategies in order to attract customers. On the other hand, because of
heavy competition in e-commerce market the firm may face challenges. Due to trade policy
made by UK government, currently threatens the existing market of foreign companies in the
country. So, amazon business operations may be threatened by reduction in the number of
imports and impacts tariffs.
Economic Factors- Due to economic stability, amazon and its products has attained success
in retail industry. As per the research, the increasing disposable income in competitive markets
can increase the organisation’s financial performance and improve its profitability. According to
reports, the company is providing employment to people of the country.
Social factors - As the company is offering high pricing strategy, increasing wealth disparity
is threat for the firm because it increases gap between the poor people and rich customers in
many areas. With respect to its product, the company needs to stands to benefit from increasing
trends in online shopping and buying behaviour of clients. Nowadays, people are more interested
in buying products through the internet which is famous as online shopping.
Technological factors - Due to increasing trend in technology and new innovative ideas has
affects amazon and its product. This has become opportunity and threat for the company, as it
imposes pressure on the e-commerce field to continuously develop its technology and use latest
version. Now the company has opportunities to improve its business performance and customer
base on the basis of rapid increase in information technology resources. As the firm is focusing
on threat of cybercrime it has benefited them to compete in this market. Moreover, the firm is
focusing on providing jobs in their research and development field in London, in order to
increase technological proposition.

Environmental factors - The firm has opportunities to develop its environmental impact by
adopting different methods to improve environmental programs. Such steps can be helpful to
eco-friendly environment such as energy consumption and management of wastage. On the basis
of this, an improvement and development in social responsibility strategy needs to be used in
order to enhance the environment impact of firm. For example- higher sustainability standards
with respect to product like fire phone can be further helpful to improve brand image.
Legal factors- The firm has opportunities to grow its online retail business and use its
website to launch new products. Amazon is constantly looking for better opportunity to develop
on products which is under the category of ‘failure product”. The firm is in hope that the fire
phone will make market position for profitability. Such efforts and contribution can improve
business competitiveness in this business world of e-commerce (Iacobucci, 2021). Based on
these aspects, the organisation can ensure long-term success through legal factors and regulatory
compliances which is beneficial for healthy business.
By evaluating the factors in order to understand opportunities and threat, it is suggested to
expand its business to more developed countries and markets. The firm needs to focus on
strategies made by phone competitors such as Samsung, apple and others and also who have high
e-commerce growth potential (Alshmrani, 2021). The firm must adopt method effectively to
make customer data private and providing them security and integrity. Due to failure of fire
phone, it has affected customer purchasing confidence thus, firm need to focus on needs and
preference of clients.
3. Examining marketing mix , focusing on the 4Ps
The company utilizing its marketing mix as a powerful technique in order to attract
clients to its business website. Amazon is focusing on price and place elements as major selling
points because this is the only concern about people. For example- people are more interested in
buying online rather than going to physical stores but some customers only prefer to purchase
physical store shopping. Due to heavy competition, in mobile phones failure of fire phone, the
firm continually faces many challenges, which can impact its global growth potential and overall
marketing position.
Product Mix- Nowadays, company is focusing on latest trends and top versions of its
products or services. There are many products that the company is offering to its customers
through online website and stores (Lim, 2021). The organisation has also expanded its products

mix such as electronics items of phones, kindle fire tablet, phones related equipment’s. This has
increased effectiveness of the firm’s marketing mix product strategy in order to achieve big
success in market share. This would help the firm to achieve its brand name again and achieve
competitive advantages in developing fire phone features.
Place mix- The firm can expand its business to developed markets with the help of suppliers
and small businessmen. Website named as amazon.com and application in the mobile phone is
famous as its primary places to interact with clients.
Promotional mix- The company uses this strategy as a powerful tool to communicate with
its clients (Mintz and et.al., 2021). There are many ways that amazon uses such as direct selling,
sales promotions, advertisements, public relations. On the fire phone side, the firm is now
focusing on investing in promotional activities through market campaigns in order to
communicate with customers effectively.
Pricing strategy- As per the research, the firm uses market-oriented method for pricing mix,
as they evaluate competitors’ prices for products. so, that they can set the price according to their
strategies (Pricing strategies to increase sales, 2021). On the fire phone side, the firm is utilizing
price discrimination strategy, it enables to adjust their price for the phone based on economic and
market conditions, customers need, preference and wants.
Recommendations-
 By evaluating the marketing mix, it is recommended to determine unique selling
proposition so that company can attract more customers to its product.
 The firm needs to keep track on customer and market trend and implement pricing
strategy as per market conditions and buying ability of clients.
 It is necessary to define detailed information about recent products to customers with the
help of promotional activities such as market campaigns, advertisements and direct
selling.
 It is also suggested to keep changing versions for mobile applications and make updates
for better featuring and smooth running of device.
 Always ask for feedback and customer suggestion to make improvements in device and
related equipment’s to support product mix. Feedback can be collected through surveys,
market campaigns, events and online video conferencing.

 Create a pricing strategy based on market conditions and trends going on in the e-
commerce field. As the firm is not a phone company, amazon needs to focus on strategies
used by mobile phone companies like Samsung, apple and other competitors.
 Always classify and segment customers according to their preferences, needs and ability
to purchase a product. Make budget to target market and use them for effective marketing
strategy.
 Invest more in promotions and distribution channels to smooth running of supply chain
and direct selling. Use different tools to measure product and company performance such
as key performance indicators, benchmarking and financial governance.
4.Evaluating the methods to improve the branding and reputation of product
Improving a positive brand image and reputation of product increase loyalty of customers,
boost productivity and helps increase confidence level in competitive market. There are many
factors that influence the reputation of amazon product such as social media review, online
review of customers, customer experience with device and others.
Use native advertising- It is necessary to use promotional activity to promote company’s
product and create brand awareness with the help of various steps such as newspaper
advertisement, social media advertising and digital marketing.
Monitoring brand on regular basis- It is important for company to keep track on
performance of product with the help of various tools like key performance indicators (Staniec
and Kalińska-Kula, 2021). It will help to evaluate the financial health and performance of the
company at individual level by comparing with competitors.
Maximizing social media presence- The company needs to focus on social media presence
and make sure their social network is positive reflection. A positive response from social circles
will increase brand image and reputation of the product.
Determine target audience- the firm needs to classify or divide their customers on the
basis of segmentation and targeting strategy. It is important for them to target market according
to customer trends, income, preferences, interest and ability to buy. Keeping buying behaviour or
habit of customers will be helpful during this task.
Talking directly to customers- surveys is the best options to understand the opinion of
customers about product features and their likes- dislikes about device. It is necessary to talk
directly to customers and provide them detailed information about brand. Creating brand

awareness would be helpful and solving device related issues will be great step in order to
improve reputation.
Customer feedback- In order to create brand awareness company is following face-to-face
interview and surveys to understand the mindset of clients. Responding to negative feedback and
solving issues is important part for the company (Reasons why feedback is important, 2021).
Make sure to collect detailed data or information about what customers likes about device, what
are the drawbacks of product according to customers and others should be taken into
consideration. By making questionnaire in an effective way and giving customers chance to
speak about brand will be helpful to make necessary changes in device. This should include
product design, product size, features, technical issues, software and others.
Understanding complaints raise by clients- The firm needs to understand complaints
about brand and its product. Firstly, the managers need to identify the key issues and then
provide clients a good solution to device related issue. After that it is important to adjust fake
review about product and social media response in order to create good image.
Setting market campaign goals- The best way to promote brand image is to arrange
campaigns about product. This will ultimately attract customer and increase interest level to
purchase company’s product. The company needs to provide some discount offers and coupons
to interact with new clients and keep old customers with the brand.
Analysing how this can impact the positioning of the brand
An effective and positive reputation will attract more customers, so that they can buy
more products online. If amazon effectively uses all the above-mentioned method to grow their
business and create product image, then it would be helpful to generate revenue. The major
drawback of fire phone: high pricing, so, the company needs to focus on lower marketing costs
and understand the pricing strategy of other company.
A good promotional strategy will promote good relationships with customers, suppliers,
investors and stakeholders. This will ultimately increase revenue and sales of product which will
be helpful to gain competitive advantages (Desai). A positive image will distinguish the
company from its competitors. Nowadays, customer is more concern about quality of product
and brand image, so company needs to invest in techniques and method to improve product
reputation. In today’s era, no one wants to pay for lower quality product, so if the company is
looking for business partnerships, product image affects bottom line of firm.

A positive reputation not only increase customer base but also helps company to make
money, save on marketing expenses and generate profit margins. It will impact customer buying
behaviour and the company need not have to spend a lot of money on advertisement, marketing
campaigns and other promotions. Because company’s loyal customers act as brand ambassadors
who promote business to their relatives, family, friends and office mates.
Product reputation is totally depended on how people see business image, so
communication and transparency need to be maintained. The company can also improve their
customer service in phone industry, by solving issues related to device.
CONCLUSION
To conclude, marketing management is all about a systematic process used by company to
plan and execute the pricing, promotion and distribution channels of products or services in order
to satisfy customers needs and achieve goals. The present report has concluded that amazon is
one of the top retail companies which provided wide range of products to its customers. But in
the year 2014, launches fire phone which was flop product and this has impacted the image of
brand. Further, the report has summarized that company is revamping the product and examining
its product mix, pricing, promotional and place. In addition to this, it is also concluded that to
improve brand positioning company needs to focus on marketing strategies of other competitors,
feedback from clients and surveys with the help of questionnaire would be helpful. The firm is
focusing on product features, promotional activities, market trends and keeping track on up-to-
date technologies and new innovations.

REFERENCES
Books and Journals
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Hutt, M. D. and Speh, T. W., 2021. Business marketing management: B2B. South-Western,
Cengage Learning.
Iacobucci, D., 2021. Marketing management. Cengage Learning.
Kim, K. H. and Moon, H., 2021. Innovative digital marketing management in B2B markets.
Aripin, Z., 2021. Marketing Management. Deepublish.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Alshmrani, H. M., 2021. An analytical view of amazon success in the worldwide. Life Science
Journal. 18(6).
Staniec, I. and Kalińska-Kula, M., 2021. INTERNAL EMPLOYER BRANDING AS A WAY
TO IMPROVE EMPLOYEE ENGAGEMENT. Management. 19(3). pp.33-45.
Desai, A., Amazon’s Business Analysis, Amazon Go–Case Study, & Jeff Bezos’s Leadership.
Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions. International Journal
of Research in Marketing. 38(1). pp.32-49.
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Amazon SWOT Analysis. 2021. [Online]. Available through:
<https://www.mbaskool.com/brandguide/it-technology/1293-amazon.html>
Reasons why feedback is important. 2021.[Online]. Available through:
<https://www.snapsurveys.com/blog/5-reasons-feedback-important/>
Pricing strategies to increase sales. 2021.[Online]. Available through: <
https://www.helpscout.com/blog/pricing-strategies/>