Amazon Australia: Target Consumer Analysis and Key Group Profiles

This report analyzes Amazon's potential target consumers in the Australian market, focusing on individuals with higher disposable incomes and access to smartphones. It highlights the company's strategy of targeting early adopters with attractive offers and discounts. The report identifies two key customer groups: new parents, who benefit from discounted diapers and convenient delivery, and tech-savvy early adopters, who are less price-sensitive and eager to try new products. By understanding and catering to these specific customer segments, Amazon aims to establish a strong presence in the competitive Australian online retail landscape. Desklib provides access to this and other solved assignments for students.

Introduction:
1. “Who are the potential target consumers that they could focus on”
Amazon has been relentlessly helping to increase sales by reaching new customers. The online
selling platform of Amazon extended its market to Australia to make the best use of new and
emerging markets. The site of Amazon Australia was launched overnight, right at the time of the
peak Christmas shopping period to motivate shoppers in making out the most of the festive spirit.
According to Chauhan (2015), 7,630,000 Australians are above 14 years of age and make up
almost 40% of the population of the nation. The company chiefly targets these individual who
are marked by a higher disposable income. With digitalization growing at rapid pace, most of
these potential customers have regular access to Smartphone which increases their chances of
shopping online. The company targets these early adopters who are ready to experiment by
purchasing new products from an online platform. The company provides attractive offers and
discounts to early customers and also gives them special benefits and access to newer products.
2. “Select two key target customer groups and profile their requirements and
characteristics?”
The US based company views Australia as a $4 billion attractive market that is rising up the
ranks in terms of online marketing. According to CEO Jeff Bezos, satisfying customer’s
expectations is the pillar of the company’s success in Australia. Accurate market segmentation
reveals that the company has developed a symbiotic relationship with the customers. Tthe key
target customers and their requirement profiles are as follows:
New parents: The Company targets new parents who are continuously requiring diapers for
their babies. The company reduced the price of diapers by 30% and benefitted by earning a sale
of $545 million (Haucap and Heimeshoff, 2014). New parents are often time starved, and try to
avoid the need to go to a store. These people are grateful to receive a regular supply of diapers
and other related products at their doorstep.
Early Adopters: The Company targets early adopters who are usually tech-savvy by nature.
These customers are enthusiastic regarding trying out new products and are less price-sensitive
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in nature. They also assist the company with word-of-mouth advertising and purchasing from a
diverse range of products.
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Reference List:
Chauhan, P., 2015. A Comparative study on consumer Preferences towards online retail
marketers-with special reference to Flipkart, Jabong, Amazon, Snapdeal Myntra and fashion and
you. IJAR, 1(10), pp.1021-1026.
Haucap, J. and Heimeshoff, U., 2014. Google, Facebook, Amazon, eBay: Is the Internet driving
competition or market monopolization?. International Economics and Economic Policy, 11(1-2),
pp.49-61.
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