Report on Amazon Australia's Marketing Strategies and Future Options

This report provides a comprehensive analysis of Amazon Australia's marketing strategies since its launch, focusing on the e-commerce giant's approach to customer engagement, branding, and strategic marketing options. The report examines the marketing strategies employed, including comprehensive strategies, insightful monthly statistics, and deployment strategies. It also explores strategic marketing options for Amazon Australia moving forward, such as engaging with customers, starting Amazon stores, utilizing subscription services like Amazon Prime, personalized email marketing, and branding. The analysis highlights the importance of adapting to the dynamic e-commerce market, leveraging technology like voice search and mobile applications, and understanding customer segmentation. The report concludes with recommendations for Amazon Australia to compete effectively in the future by focusing on customer engagement, branding, and strategic marketing tools to navigate challenges in the sector, environment, and economy.

MARKETING

Executive Summary:
Amazon Inc. is one of the largest company involved in e-commerce business which is
selling all types of products in market through its online sites. The company was founded on 5th
July 1994 by Jeff Bezos that is operating on worldwide level. This particular report will cover
nature of marketing strategy used by company followed by strategic marketing options that are
available for Amazon Australia. The report focused that Amazon Australia should be
emphasising on all sort of marketing strategies which they are using so that their growth in
market is successfully tracked. Furthermore there are opportunities for the company to grow with
use of engaging with customers and branding. These will be helping in sustainable development
and gaining competitive advantage as well for Amazon Australia. It was analysed towards the
end that company must be ready for all the upcoming challenges and changes within sector,
environment and economy as well. So it was recommended that Amazon Australia must be using
strategic marketing tools to compete with their competitions in future and present time.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND TO COMPANY..................................................................................................1
MARKETING ANALYSIS.............................................................................................................1
Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.........................1
Strategic Marketing Options for Amazon Australia moving forward.........................................4
CONCLUSION................................................................................................................................6
REFERNCES...................................................................................................................................7

INTRODUCTION
Marketing is a process of targeting, deciding, planning, advertising and then distributing
products and services within customers so that brand image of company is improved and more
potential customers could be reached. This is the study of exchanging relationships between
company and customers with more extended efforts of management. So this project is based on
Amazon, which is an American electronic commerce and cloud computing company and is
world’s most valuable organisation as well.
Amazon Australia is operating in about all countries of world including its last year’s
launch in Australia as well. The company is having its own separate retail website in each of the
country where it is operating like that of USA, UK, Germany, Spain, India, Canada, Australia,
France, Ireland, Brazil, China, Mexico, Japan, Netherlands and Italy as well.
The report will be including to discuss on marketing strategy used by Amazon Australia
and also about various strategic marketing option for company to move forward in market of
Australia. Lastly, it covers marketing strategies of Amazon and provides better suggestions for
its further growth and development.
BACKGROUND TO COMPANY
Amazon Inc. is doing business in e-commerce field which is selling all types of products
in market through its online sites. The company was founded on 5th July 1994 by Jeff Bezos that
is operating on worldwide level. It is selling products of various other brands like that of Nike,
Adidas, Levis, Apple, Samsung and many more (Amazon Australia is coming, 2018). Other than
this, Amazon is also having its own products and service which they are selling under its brand
image only including like that of Amazon App-store, Amazon Echo, Amazon Kindle and
Amazon Prime as well. Then it is also offering international shipping to countries where it is not
having its retail website. Amazon started its online business in Australia on 24th November 2017,
after one failure attempt to get itself launch in country with promise to its customer to deliver
million of new products.
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MARKETING ANALYSIS
Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.
Amazon provide several things to its Australian customers such as promise to deliver all
types of products throughout the country from food to electronics that too without paying any
sort of international shipping fees. It was noticed that Amazon is dominating market of each
country from all around the world satisfying its customers with its quality of product and fast
delivery of service as well (Kaur and Wadera, 2018). As the company was launched on Black
Friday, customers already warned company that all products and feature must be very much up
to date including pricing and shipping details as well.
As an e-commerce company, Amazon Australia’s revenue and profits as per the data of
2018, was very high. So e-commerce marketing is that procedure which is helping and driving
sales for company in terms of raising awareness about the online website and application or
products which it is offering to customers (What Is Ecommerce Marketing, 2018). Since its
launch within the market of Australia, Amazon is using and utilising best market strategy which
is concerning upon the dynamic e-commerce market which keeps on changing all the time. There
are all new options, features and products which company needs to include so that they are been
able to give best to their customers.
So there are too many channels or tools which Amazon follows in terms of its marketing
strategy so that they could gain more and more customers in Australia. Apart from this, they also
need to look up into latest updates or trends within industry and what their competitors are
following (Retail giant Amazon finally launches in Australia, 2018). Since its introduction within
country, it was able to gather all local retailers within working of Amazon so that they are been
able to join company’s global marketplace over the coming years. The management of company
at starting, is searching or looking for distribution centre launching service like that of Amazon
Prime and Amazon marketplace then followed by some Amazon Pantry and fresh. Then,
Amazon planned to bring about many offering to its customers based on retail business or
products.
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Figure 1: Amazon Australia- category share estimate (%)
[Source: Retail giant Amazon finally launches in Australia, 2018]
As the above figure indicate that, management of Amazon planned that they will give
most share to its electronic segment which is about 44% within Australia with physical and
electronic media been second with 19%. So the ongoing marketing strategy since its introduction
within Australia which includes all the important points likes that of:
Comprehensive strategy- This will be implemented at time when goal of maximising the
performance and sales of company is set so that it could be achieved in Australia (Amazon
Marketing Strategy., 2018). Amazon requires that there must be consistency in its working and
performance in each of the country where it is operating.
Insightful monthly statistics- This shows monthly tracked performance of Amazon as per their
sales, profits and feedback of customers as well. This was the marketing strategy which company
used within Australia since it began to work within country (The best Amazon deals and sales in
Australia for September, 2018). These statistics included rating given to firm by its regular or
first time customers of products and services as well.
Deploying strategy- This is one of the most effective step which enable firm to work according
to what is been planned by its management and managing it all by themselves only. So that they
could include all sort of changes which are necessary as per their planning and delivering results
into strategy.
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There are more than 1000 other companies of Australia who are selling their products on
e-commerce website (Bhasin, 2017). Thus, giving them access to higher number of customers
overseas. Marking 50% of the revenue of company coming from these third party sellers only
and then they need to pay certain amount of fee and commission to Amazon and this is growing
at faster rate (Amazon breaks silence on Australian retail plans, 2018). Amazon Australia is
selling products on various medium such as mobile and computer application and also those
products which are not of international retailer’s like beauty, tech products, baby products and
video games.
Strategic Marketing Options for Amazon Australia moving forward
As Amazon is an e-commerce firm, it will be utilising many of the marketing strategies
like that of marketing mix and plan. In this context, management of Amazon in Australia is not
focusing on psychographic and demographic segmentation in order to divide their market based
on customers. So that as it is analysed that segmentation of Amazon in Australia is basically
dependent on the purchase behaviour of customers and but rather they must relay on interest and
expression of consumers (Venkatesan, 2017). Amazon Australia must be emphasizing on level of
segmentation of customer individually so that company is able to convert potential prospects into
customers. Segmentation in e-commerce industry will involve dividing person based on who will
be buying products and which type of product as well. Amazon Australia is mainly focusing on
their targeted customers who are upper class and middle class as they are using much advance
technology and don’t have time for proper type of shopping as well.
Amazon as an e-commerce company is able to position itself as market leader, where all
type and variety of brands are available with having delivery of products at remote locations as
well. Strategic marketing is a process under which companies could be easily differentiating its
products with other competitors with way of strengthening its market position so that they are
been able to provide better quality of products. So, Amazon Australia will be following certain
strategic marketing options making them more competitive in future markets like that of:
Engaging with customers- As it is included that customers are main and most important element
for any type of company who are main source of revenue and profits generation (8 Strategies for
Australian Retailers to take on Amazon, 2018). So, it is essential for Amazon Australia that they
are engaging with their customer obtaining their feedback and views which will be helping
company in knowing and analyse about them.
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Starting Amazon store- In Australia, Amazon must be starting its own store so that customers
are getting more attracted towards it with respect to its products and services (Smith, Rupp and
Offodile, 2017). In this context, the Amazon Australia is operating through its online application
and selling other brands products and allowing international shipping.
Taking advantages of subscription services- Amazon Prime will be the subscription service or
channel for company which they planned to launch in Australia as well. So, this service will be
having wider range of benefits for both, company and customers as well. With the help of this
subscription service launched by Amazon, customers will be able to watch videos and movies
anywhere and anytime.
Personalised email marketing- This is also another type of strategy which Amazon Australia
must be adopting to promote its products in country. Personalised email marketing allows
company to access the digital data of customers and message them on individual level. Thus, it
will enable customer to have knowledge of what current trends prevailing in industry or
company.
Branding- Amazon Australia must be spending more on its branding strategies so that it could
make its brand stronger with having higher brand equity. Promoting and campaigning for better
brand strategy so that they are able to gain number of customers, if they are targeting for better
prospects. For company like that of Amazon, brand is very much important and is having high
quality and luxury products reaching at door step of customers.
Currently in e-commerce various tools that are been used by Amazon Australia like that
of Voice search compatibilities, automation for online ordering and virtual or augmented reality.
These type of trends in 2018 within industry is also impacting Amazon Australia and they are
doing initial investments into new technology (Wieland, Hartmann and Vargo, 2017). Like
Amazon Echo will be growing voice search popularity and becoming more and more preferable
for these companies. Thus, it become much more important for company to optimise their
business in 2018 for more voice search or rather they would loss up their customers who are
shopping with use of voice activation.
Amazon having its different products category such as mobile application that must be
using its most prominently than desktop store as user of smartphone within Australia are known
to increase in coming years. Other than this, facial and fingerprint recognition must also be
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utilised by Amazon Australia in future as it will simplify payments and encourage customers as
well.
CONCLUSION
From the above research on Amazon Australia, it is concluded that there are many types
of changes which need to be implemented in coming future so that company could be involving
higher number of customers to purchase from online. This report concluded all possible
techniques and strategies by the marketing department of Amazon Australia. Lastly, it also
included Strategic Marketing Options for Amazon Australia for moving forward.
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REFERNCES
Books and Journals:
Bhasin, H., 2017. Marketing strategy of Amazon–Amazon marketing strategy.
Kaur, J. and Wadera, D., 2018. Affiliate Marketing Strategy of Amazon India. In Driving Traffic
and Customer Activity Through Affiliate Marketing (pp. 33-50). IGI Global.
Smith, A.D., Rupp, W.T. and Offodile, O.F., 2017. Amazon. com, Inc.: Retailing Giant to High-
Tech Player?.
Venkatesan, R., 2017. Executing on a customer engagement strategy.
Wieland, H., Hartmann, N.N. and Vargo, S.L., 2017. Business models as service
strategy. Journal of the Academy of Marketing Science. 45(6). pp.925-943.
Online:
8 Strategies for Australian Retailers to take on Amazon. 2018. [Online]. Accessed through:
<http://www.trulydeeply.com.au/2017/07/7-tips-australian-retailers-take-on-amazon-
branding/>.
Amazon Australia is coming. 2018. [Online]. Accessed through:
<https://www.illawarramercury.com.au/story/5074740/amazon-australia-is-coming-
everything-you-need-to-know/>.
Amazon breaks silence on Australian retail plans. 2018. [Online]. Accessed through:
<https://www.afr.com/business/retail/amazon-breaks-silence-on-australian-retail-plans-
20170419-gvnvlp>.
Amazon Marketing Strategy. 2018. [Online]. Accessed through:
<https://www.spiderscope.com/digital-marketing/amazon-ecommerce-services/amazon-
marketing-strategy>.
Retail giant Amazon finally launches in Australia. 2018. [Online]. Accessed through:
<https://www.news.com.au/finance/business/retail/amazon-australia-finally-launches-
after-months-of-anticipation/news-story/d6092b8bcdb60b7b9daf9145023a4a23>
The best Amazon deals and sales in Australia for September. 2018. [Online]. Accessed through:
<https://www.techradar.com/news/amazon-deals-australia>
What Is Ecommerce Marketing. 2018. [Online]. Accessed through:
<https://www.bigcommerce.com/ecommerce-answers/what-ecommerce-marketing/>.
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