Amazon Australia's Marketing Strategy: Analysis & Future Development

This report provides a comprehensive analysis of Amazon Australia's marketing strategies since its inception, examining its approach to the Australian market, including the introduction of Prime services and other strategic initiatives. It highlights Amazon's initial slow start, its subsequent strategic alignments, and its competitive pricing strategies. The report also explores potential future marketing options for Amazon Australia, considering factors like market trends, competitive landscape, and technological advancements. Key strategies discussed include online retail offerings, marketplace strategies, and the 'Prime Day Sale' concept. Furthermore, the analysis incorporates theoretical frameworks such as the Ansoff matrix and Porter's Generic Strategies to evaluate Amazon's market penetration and differentiation tactics. The report concludes by emphasizing the importance of continued innovation and customer-centric approaches for Amazon to maintain its successful trajectory in the Australian market. This document is available on Desklib, a platform offering a wide range of study resources for students.

Running head: MARKETING
MARKETING
Amazon Australia market situation
Name of the Student
Name of the University
Author Note

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Executive Summary
The paper has shed light on the marketing aspect of companies and their innovative ways to
develop the business. Amazon is the chosen company and their market development in
Australia is the key concern in that case. Amazon satisfies their customers with the huge
range of products and these products help them to strengthen the market in Australia. The
process of the paid subscription is another premium process for Amazon and customers get
benefitted by that process. The retail management is trying to improve their field during this
time and that initiated by the company itself. The process of prime service management in
Australia strengthen the business and provide an extra opportunity to have better market in
Australia. There are some innovations also highlighted that can be proceeded in future and
get a strong base of Amazon in Australia.

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Table of Contents
1. Introduction............................................................................................................................3
2. Background to the Company..................................................................................................3
3. Marketing Analysis................................................................................................................4
3.1 The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began......4
3.2 Strategic Marketing Options for Amazon Australia moving forward.............................6
4. Conclusion..............................................................................................................................9
References................................................................................................................................10

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1. Introduction
Amazon is one of the biggest internet retailers in the world and online marketing of
the company is on top of the world. The competitive market of online purchase is a new
tradition that every business try to introduce in their marketing process. However, the
processing is not that easy. There are some managing websites issues and easy buying
process will help to accumulate customers (Bergvall-Kåreborn and Howcroft 2013). The
basic objective of online marketing is to create a concerted approach in people and attract
them with the facility. The effective promotional approach of the company is vital in that case
and Australian people have that engagement to channelize with the work and use the
marketing channel for the development of online industry.
2. Background to the Company
Amazon has started their business in Australia in 2013. The major benefits that
Amazon delivers to Australian people are the cheap prices, the wide range of brands, a wide
range of products, quick and free delivery. The male customers are more aware than females.
62% of men are interested in Amazon and 38% of women in Australia are associated with
this (Amazon.com.au 2018). 67% electronic goods and 61% of books are ordered from
Amazon and most of the Australian use this online process for these two genres of products.
The new innovation from Amazon is the prime service and 73% people ordered through the
prime process (Amazon.com.au 2018). In 1995, Amazon goes live and started their online
business with books. The multi-layer distribution channels help the entire process and
Amazon gets a kick start in the market. Though Amazon has started their business in
Australia in 2013 and they have already made a good business over there (Amazon.com.au
2018). Amazon launched the Kindle store in 2013 and initially concentrated on that business.

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The number of the online shoppers was 17 billion i.e. 68% in 2017 in Australia. The
individual person using the internet for that reason was more than 90% and all they have the
instinct to place order and to choose the right thing for them (Amazon.com.au 2018). In 2017,
shopping service has started and promotional activities were high at that moment. There were
numerous recruitment and Amazon provided lots of employment opportunities as well.
260,000-foot fulfilment in Melbourne was the new building for Amazon. The announcement
of hundreds of new jobs makes a dimension of employment (Amazon.com.au 2018). The
introductory offers are exciting and most of the day this process has the same day or two-day
delivery. Free video streaming and process maintaining is the key issue in that case to deliver
the better opportunity for the Australian people.
3. Marketing Analysis
3.1 The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.
Online retail offering in Australia is the prime strategy that Amazon delivers to
Australian people. The products are from 23 categories like books, home improvements,
accessories, clothing, kitchen goods, music, computers, and baby products. On Christmas
Eve, products are delivered at free of cost, that means service charges are not included in that
scenario. Most of the edible foods are free of cost and most of them are delivered in one day.
The marketplace strategy of Amazon is tight-lipped strategy; which is a process of allowing
other business to sell through their websites (Cunningham 2012). There are thousands of
websites enter that and sell their products, and the global sale of the company increases.
Amazon is good for the consumers but not so good for incumbent retailers. There was a slow
start for Amazon in Australia. The prime service is a strong wakeup call for the Australian
people and product purchase platform is the main strategy is that case.

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Prime has the facility of free two-day shipping or better shipping process faster than
that and free release date delivery. The process is applicable for the pre-order cases and the
customer has to order the book before it executed in sellable list. The free 2-hour delivery,
free or flat rate household item delivery or grocery delivery, Alexa deals, whole food items
deals and benefits, and all these are acquitted by prime process. The unlimited video
streaming through prime process is another facility that people can access through this
process. Prime video is alike to Netflix and it offers movies, TV shows, and original contents.
Prime can be accessible through the laptop, desktop, mobile devices, stick and boxes
(Itnews.com.au 2018). Thus, the availability of this process is there. In 2017, Amazon
Australia has taken this step forward and develop in the Australian market. At $59 a year is
the deal for one year and with this deal, some of the better facilities company will deliver to
their customers (Itnews.com.au 2018). The market acceleration for Amazon is good and
people have that expectation to have quality product through prime service. The offers in
prime deliver some products at the low price range and all these have mass adaptation and
provide a strong base in competitive distribution channel (Williams 2018). As the price of
some high-end devices has become low in order thus, the situation of own loss is there but the
company has chosen the strategy to mass spreading rather than increasing the production
values. Ansoff matrix can be used in this application as the company has to penetrate in
different market and they have values to indulge in. The choice of people and their need from
the market is the key issue in that case.
Amazon tries to build a subscriber base for their prime process. The products are
mostly high-end and deal on those products make them cheap and affordable for people and
company produce the mass in number so that extra percentage of revenue will come and there
is no loss in that whole process. The strategy of ‘Prime day Sale', is one such concept that
allows a push in the Australian business market and retail market (Itnews.com.au 2018).

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Amazon has better chances in Australia as they have delivered their product cheaper than any
other market. Say, $US119 is a product price in the US, that will be 166.50 AUD in
Australia, but Amazon delivers the product lower than this also and there will be some prime
discounts as well (Itnews.com.au 2018). The product price will be 161 AUD. The same
situation persists in Britain also as £79 will be counted as 143.15 AUD but the product will
be accessible in 141 AUD in Australia (Itnews.com.au 2018). The cost-cutting option and
deliver products at the lower price range is the main concern in that case. The company
promised to deliver their products within 2 days to the 90% of the customers and they want to
make a productive market for them. After the slow start in 2013, the company changes their
strategic alignments and make them productive enough to get the better response from the
market and that will be an improved scenario for the Amazon Australia (Itnews.com.au
2018).
3.2 Strategic Marketing Options for Amazon Australia moving forward
Amazon operation in Australia was reluctant for the first six months. Even in 2017,
after the prime process has started, lukewarm response from people was not there. As stated
by Given, Curtis and McCutcheon (2012) the improvement of the situation and enthusiasm in
market after the competitive strategy of pricing is applied, Amazon hit the best place in the
market as well. Attractive segment ‘fulfilment by Amazon' is the way to cherish people
expectation form the company. The development of the marketing segment of the company
and their improvement in Australia is shown in this table.
Amazon’s movement in Australia
20th April 2017 The full retail market of Amazon has started in Australia and
different offers are there for the introduction of business.
3rd August 2017 The first warehouse of 24,000 square meters outside the
Melbourne is the new sign of market expansion in Australia. The

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business operation will be easier if the warehouse and logistics
department work together.
13th October 2017 There was an announcement from Amazon that 500 sellers have a
chance to pre-register to join the Australian marketplace.
13th November 2017 Seller summit in Sydney and encourage business to grow at their
level best and secure a platform that encourages the business
opportunities for the company.
5th December 2017 The first retail and marketplace offers were introduced at this
time. The first day orders are high in numbers and tens of
thousands of customer visited on the website during the first 24
hours and they placed their chosen products among 23 categories.
There were some third-party sellers as well after the first day of
trade (Fungglobalretailtech.com 2018). 2100 third part sellers and
half of them are from China. The business got a kick start at that
moment and most of the innovation and acceleration were
formulated at that moment.
18th January 2018 The innovation process has come to Australia in the way of
technology. Alexa-enabled, voice control speakers, Amazon Echo,
Echo Dot, Echo Plus all these devices were introduced at that
time. The pre-order availability was there and the shipping began
in early February. The innovative touch with advanced technology
is the main advantage of that process and Amazon introduced that
for the development of their marketing arena in Australia (Welch
2015). Large business giants like NAB, Westpac, and Qantas
divulge with the process of Alexa.

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27th February 2018 Fulfilment by Amazon (FBA) is a service development process
for goods and products by Amazon (Fungglobalretailtech.com
2018). The development of logistic is there any third-party market
seller is the key approach in that case.
21st March 2018 10,000 seller join Amazon’s marketplace to improve the business.
The process of joining help the entire process of marketing and
promotions.
3rd May 2018 Second FBA centre was started in Moore bank, West Sydney at
that time (Pandit and Poojari 2014). The operation process
strengthens through this, the marketing arena will expand for
Australia and that is the major reason for this second warehouse.
31st May 2018 The situation implementation of not using the original website and
use the different website for the different nation is helpful for the
civilians of that nation. They have an opportunity to check the
price of the product at their currency. "Amazon.com.au" is the
better way to search the process (Fungglobalretailtech.com 2018).
Porter’s Generic strategy is the key concept of Amazon. The quality of the product
and their nature of differentiation is the key issue that make difference in product culture. The
innovation and opportunity, company provides is the best in market and hat is the reason
better way of development in Australia happens through the company. In case of future
development, 50,000 more sellers will come at the end of this year. This will strengthen the
investment and marketing policy. The delivering innovation like ‘Drone facility' will be an
innovative step to be taken (Fungglobalretailtech.com 2018). This is one of the automation
that deliver products less than a day. Online payment will be done by the customer and the

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drone will deliver the product within 2 to 6 hours. The products availability and weight of the
product must be limited and automated voice message will confirm the delivery report of
product (O’Connor 2013). In retail management, ‘Amazon Go' will be another innovation
that Amazon Australia can take (Fungglobalretailtech.com 2018). This is the trendiest way to
the cashless transaction. The process has not needed any hard cash, rather a device will sum
up the entire bill that a person acquires from the Amazon store and after the entire shopping,
and the customer can pay the bill any time. Time-saving and mitigation of queue system are
there and those innovations will make Amazon special.
4. Conclusion
Therefore, it can be concluded that marketing in this competitive business arena needs
to be innovative and progressive so that business will get enough strength to formulate their
base. Amazon, in this case, spread their market in Australia. But the initial time market
development was not so good and business had some confrontations but after the strategic
innovations in business, better ways have come up and developed the business in Australia.

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References
Amazon.com.au 2018 Amazon retrieved from: https://www.amazon.com.au/ [Accessed on
19th September 2018]
Bergvall-Kåreborn, B. and Howcroft, D., 2013, December. Crowdsourcing and Open
Innovation: A Study of Amazon Mechanical Turk and Apple iOS. In ISPIM Innovation
Symposium (p. 1). The International Society for Professional Innovation Management
(ISPIM).
Cunningham, S., 2012. Emergent innovation through the coevolution of informal and formal
media economies. Television & New Media, 13(5), pp.415-430.
Fungglobalretailtech.com 2018 Deep Dive: The Amazon Invasion—A Timeline of the E-
Commerce Giant’s Global Conquest retrieved from:
https://www.fungglobalretailtech.com/research/deep-dive-amazon-invasion-timeline-e-
commerce-giants-global-conquest/ [Accessed on 18th September 2018]
Given, J., Curtis, R. and McCutcheon, M., 2012. Online video in Australia. International
Journal of Digital Television, 3(2), pp.141-162.
Itnews.com.au 2018 Amazon Prime launches in Australia retrieved from:
https://www.itnews.com.au/news/amazon-prime-launches-in-australia-494608 [Accessed on
19th September 2018]
O’Connor, S., 2013. Amazon unpacked. Financial Times, 8.
Pandit, V. and Poojari, A., 2014. A study on amazon prime air for feasibility and
profitability: A graphical data analysis. IOSR Journal of Business and Management, 16(11),
pp.06-11.

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Suzor, N.P., 2016. Amazon’s new Grand Tour series could be the next illegal download
victim. The Conversation, November 18.
Welch, A., 2015. A cost-benefit analysis of Amazon Prime Air.
Williams, C., 2018. The streaming arms race: Original VOD programming in
Australia. Metro Magazine: Media & Education Magazine, (195), p.116.
Yang, D., 2018. Has the arrival of Amazon altered the market structure for consumer
electronic goods in Australia?.