Marketing Strategies for Amazon Australia: A Detailed Analysis

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This report provides a comprehensive marketing analysis of Amazon Australia, examining its current market position and potential strategic options. It begins with an introduction to marketing concepts and a background of Amazon, including its customer-centric approach and expansion into various markets. The report then delves into a market analysis of Amazon Australia, discussing key elements like market size, growth rates, and industry trends, and highlighting the importance of marketing for achieving business objectives. It explores various marketing strategies using models like Ansoff's Matrix, including market penetration, market development, product development, and diversification. Furthermore, the report outlines strategic marketing options for Amazon Australia, such as studying market trends, creating video tutorials, utilizing user-generated content, and leveraging influencers to enhance brand value and customer engagement. The conclusion summarizes the key findings and emphasizes the importance of marketing for Amazon's continued growth and stability in the competitive e-commerce landscape.
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MARKETING
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Executive Summary
Marketing is concept that helps to define the product and services of company into
different segments of market. Present study will be explaining the marketing concept of Amazon
which is an electronic commerce and cloud computing company based in Seattle, Washington,
that was founded by Jeff Bezoz on July 5, 1994. It is a public company which is focused on the
customer satisfaction. It is the largest retailer company in world as measured by revenue and
statistical data. Furthermore, study will be describing new marketing strategies that company
could adopt for future stability.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND TO THE COMPANY.........................................................................................1
MARKETING ANALYSIS ............................................................................................................2
Australia's Marketing Strategies.............................................................................................2
Strategic Marketing options for Amazon Australia................................................................4
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7
APPENDIX......................................................................................................................................8
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INTRODUCTION
Marketing is the activity or foremost task that helps to meet the needs of customers by
providing valuable products to customers by utilizing the expertise of the company. Marketing
process is the most crucial function of every organization that connects customers with company
with help of product or services. In other words, marketing is the tool that generates interest
between customers. Place is where product is purchased and price is the amount a consumer pays
for product. Present study will be based on analyzing the Market of Amazon Australia in order to
analyze the current market situation and activity goals. Study will be explaining the marketing
scenario with the help of strategic marketing models. This study will be explaining about
background brief of company and also discuss about marketing analysis model to identify
current situation of the organization in Australian market. Furthermore, report also uses some
marketing analyzing models and tools to measure the best possible outcomes.
BACKGROUND TO THE COMPANY
Amazon is the best leading E-commerce company based in Seattle, Washington.
Company has been recognized as best or largest selling product and services company over the
internet. Jeff Bezos founded Amazon in 1994. They started their business from selling books
online and further expanded its business by entering into consumer products or fashion market.
Quickly they launched DVDs, music, video games, electronics and clothing. (Amazon Australia:
everything you need to know, 2017). In 1999, Jeff Bezos started their business very well and got
the best person of the year award. Amazon adopts customer centric marketing approach in order
to develop new consumer’s attraction towards the company’s approachable market. In other
terms Amazon adopted customer obsessed strategy to ensure buyers satisfaction approach.
Amazon has separate retail websites for United States, UK, Ireland, France, Canada,
Germany, Italy, Spain etc. Amazon adopts a customer centric approach in order to collect
different functional tours and make the best possible action plan.
In 2015, Amazon surpassed Walmart as most valuable retailer in the United States by
market capitalization (Armstrong and et.al., 2015). Market analysis is helpful to create new task
performing content and best opportunity goals.
Like it’s all competitors such as Barnes & Noble and Borders, Amazon.com carried only
about 2000 titles in its Seattle warehouse. Most of the orders has been placed directly through
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wholesalers and publishers. On the other hand, Amazon also provides different options for
customers to contact with company in case of such queries.
MARKETING ANALYSIS
Market analysis is the process of analyzing dynamism of market’s situation. Basically it
defines overview of business plan of the company. It deals with some new advancing goals and
objective level of performance (Dietrich, Rundle-Thiele and Kubacki, 2017). There is some
specific elements or tools to identify better market analysis such as Market size, growth rate of
the social class, marketplace profitability, distribution channels, industry cost structure, industry
trends etc. Marketing is very beneficial or vital for the company or for Amazon in order to
accomplish the better objective performance. Profit is largely based on sales which comes
through productive marketing strategies (Abratt and Bendixen, 2018).
Marketing analysis of Australia is helpful for company development process after
fulfilling customer needs and demands. Focus of marketing analysis is that to promote company
product awareness into the global market. After considering all factors or dimensions of market.
Amazon can easily make new strategies and market oriented process goals.
As per the Australia market analysis it has been seen that, Revenue in the e-commerce
market of Australia has been increased to US$12,060m in 2018. This would indicate that
Amazon Australia can make good profit in long term market. On the other hand, it would help to
discover the long term source full challenge and makes the best approachable goals. As per the
statistical analysis user penetration is 72.2% in 2018 and is expected to hit 74.7% by 2022. this
would help to control the business opportunity goal.
Sales marketing environment of Australia complaining about low quality leads, and
marketing team unhappy about the lack of sales follow up (Australia - Market Entry Strategy,
2018). In order to gain profit in US market Amazon required to gain understanding of the
Australia context for a product and services or its governmental policies, sales channel and
applications.
Australia's Marketing Strategies
It is very tough to survive in current competitive market for an organization. Company
must have some competitive advantage tools and techniques in order to analyze the market
situation and effective criteria to judge possible outcomes. There are different marketing tools
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through which company can easily get customer attraction as per the identification of actual
current market needs and wants (Lovelock and Patterson, 2015).
Ansoff’s Matrix Model
Ansoff's is the tool or technique for measuring strategic planning. It is the set framework
that helps company to identify competitive market strategies (Generic and Intensive Growth
Strategies of Amazon, 2017). This also helps to control the long term goal objective performance
task. This strategy will be useful for Amazon Australia to develop new strategical planning and
generate new revenue goals. This also helps to make the best and productive goal making task. It
will also help to basically a more important. Overall, it helps to collect the better resourceful
planning. Moreover, this would also very much helpful to take new challenges and make the
better resourceful planning tools.
Market Penetration
Market penetration is process of successful selling of product or services in the market.
This can be measured by commodity sales of company as compared to the total target market for
that channel. This strategy is more effective and challenging for the major goal objectives. This
is the best approach for company to adopt in order to move on best productive market
(Elsalamony, 2014). Overall, it helps to keep the long term goals and makes the long term
process that helpful for Amazon to launch new effective product and services in order to make
the company position stable.
Market Development
Market development is the process of company’s growth in order to identify the new
industry segments for current products. In this process company sells same products or services
into different markets. Amazon company deals with several numbers of products and services
across the world. Amazon adopts this market strategy in order to expand its company’s
expansion strategy. Apart from that, it also helps to control the best opportunity and growth for
future development (Goworek, McGoldrick and McGoldrick, 2015). Such as Amazon also
developed their market in many other countries also such as North America, European, Australia
etc. by investing major goal objective tasks and effective working conditions.
Product Development
Product development is focus of the company that enhances business approach and goals.
(Hair Jr and Lukas, 2014). However, from all of those products of Amazon, kindle was a major
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hit, fire could not be very successful among all other products. Product development is the
process or activity which generates new customer connections and market value for company in
the competitive scenario. Product development has to be a continuous process for company
growth. Apart from that, it helps to keep company productive and popular in the competitive
market (Lovelock and Patterson, 2015).
Diversification
Diversification is the process that helps to introduce new changes in management and
functional departments to introduce new productive working environment. Apart from that,
Amazon itself is providing the different diversified product & Services which helps to create
company’s brand value and results (Lovelock and Patterson, 2015). This process or strategy is
very helpful to introduce new changes in the company structure in order to meet needs of
customers.
Strategic Marketing options for Amazon Australia.
Strategies or new technologies will help company to become unique and different from
other companies. Marketing strategies has to be unique for target group of peoples (Malhotra
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Illustration 1: Ansoff Model
(Source: Generic and Intensive Growth Strategies of
Amazon, 2017)
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and Peterson, 2014). Marketing strategies would help to take new company oriented approaches
to attract customer identification and long lasting goals. From the given following challenges and
long term effectiveness this would help to control the market situation. Amazon is the world’s
most leading and powerful company after Alibaba in retail sector (Malhotra and Peterson, 2014).
In order to keep the position high and stable Amazon requires adopting some strategies and
marketing options to attract the large number of audience.
Study the trends
Customers are rational and dynamic in nature, in order to get over from this threat or
uncertainty Amazon needs to adopt knowledge of trend and current demanding of buyers in
order to ensure high sales and profit. Identifying new trends is the essential process to develop
high customer faith and loyalty (Petrovska and et.al., 2017). It also connects helps to enhance the
company’s brand value and growth. This also helps Amazon to make its possibilities of future
sustainability (Brown, 2016). Customers are very dynamic in nature; it is very necessary for
company to develop new managerial strategies to enhance product variety. It helps to make
company’s Brand value higher.
Create video tutorials
This is one of the major strategic option for Amazon to make good appearance in front of
market scenario. Get connected with audience through social media platform. Video tutorial
generates new information of company and bring better connectivity level with customers. This
strategy also helps company to get feedback from customers. (Najmaei, 2016).
User generated and fresh content
E-commerce businesses brings up the new concepts of marketing which is called user
generated content (Lovelock and Patterson, 2015). This is also known as customer reviews
services in order to keep the buyer’s attention and faith on company. Amazon can also adopt this
style or marketing strategic option for their further stability and growth. As per the Facebook
white paper, every day 350, a million photos are uploaded on social sites, this also helps to
rediscover the new channel and long term target group of performance (Petrovska and et.al.,
2017). This helps Amazon to keep the customers happy and satisfied in order to ensure
company’s stability in long time.
Brand Earns the customers
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It is very foremost activity or function that company needs to have in order to stable the
marketing value of organization. Company always needs go high to ensure new marketing
campaign for the business growth (Elsalamony, 2014). Also, Amazon needs to offer new quality
services or products to generate new policy goals and objectives.
Leverage influences
It is another strategic positioning target goals that affect the business possibilities and
goals. It makes the proper and leading sources goals (Xu, Gao and Hammond, 2017). Overall, it
helps to generate more visibility on social media without taking years to build audience.
Encourage diversity of ideas
Company needs to adopt some diversified strategic action plans in order to enhance the
long term target goals. This diversity is more crucial and productive in order to generate new
productive areas in the business (Xu, Gao and Hammond, 2017).
On the basis of above discussed strategies or tactics which become very crucial for the
company in order to enhance future stability. Market strategies promotes company’s brand value
by offering them with the best quality of products and services (Goworek and McGoldrick,
2015).
CONCLUSION
On the basis of above discussed section, it has been concluded that, marketing is the most
crucial and important process for promoting company’s activities or products. Marketing is
process through which organizations promotes its products and services in market on the basis of
customer demand. Present report been based on new market trends or the challenges that
company faced. Study discussed about the brief introduction of Amazon and explained different
tactics of marketing in development areas. Study focused on the Amazon’s market in order to
analyze the best possible outcomes and profitability ratio of company. However, present study
discussed theoretical approaches that helps to keep the company’s position uplifted and
profitable. Moreover, it also showed some new strategic tools and strategies that affects the
business goals and more productive thoughts. Amazon should incorporate all given strategic
tools of marketing in order to ensure the best profitable outputs.
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REFERENCES
Books and Journals:
Abratt, R. and Bendixen, M., 2018. Strategic Marketing: Concepts and Cases. Routledge.
Armstrong, G. and et.al., 2015. Marketing: an introduction.
Brown, S., 2016. Postmodern marketing: dead and buried or alive and kicking? In The Marketing
Book (pp. 43-58). Routledge.
Dietrich, T., Rundle-Thiele, S. and Kubacki, K., 2017. Segmentation in Social Marketing (Vol.
1). Singapore: Springer.
Elsalamony, H. A., 2014. Bank direct marketing analysis of data mining
techniques. International Journal of Computer Applications. 85(7).
Goworek, H. and McGoldrick, P. J., 2015. Retail marketing management: Principles and
practice. Harlow, UK: Pearson.
Hair Jr, J. F. and Lukas, B., 2014. Marketing research (Vol. 2). McGraw-Hill Education
Australia.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Malhotra, N. K. and Peterson, M., 2014. Basic marketing research. Pearson.
Najmaei, A., 2016. How do entrepreneurs develop business models in small high-tech ventures?
An exploratory model from Australian IT firms. Entrepreneurship Research Journal. 6(3).
pp.297-343.
Petrovska, L. S. and et.al., 2017. Marketing analysis of means for intimate hygiene on the market
of Ukraine. Recipe. 20. pp.36-41.
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.
Online:
Amazon Australia: everything you need to know. 2017. [Online]. Available
through :<https://www.smh.com.au/technology/amazon-australia-everything-you-need-to-know-
20171121-gzphez.html>.
Generic and Intensive Growth Strategies of Amazon. 2017. [Online]. Available
through :<https://www.cheshnotes.com/2017/07/generic-and-intensive-growth-strategies-of-
amazon/>.
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Australia - Market Entry Strategy. 2018. [Online]. Available through
:<https://www.export.gov/article?id=Australia-market-strategy>.
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APPENDIX
Ansoff Model
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