Comprehensive Marketing Analysis of Amazon Australia (MKT00720 Report)

This report provides a comprehensive marketing analysis of Amazon Australia, examining its strategies and performance since its inception. It delves into the company's marketing approach, including the 5Ps of marketing, target market identification, and the role of effective marketing communication. The report explores Amazon's competitive advantages, such as wide product selection, affordable prices, and customer-centric services. It also discusses strategic marketing choices for future success, including innovation, diversification, and investment in promotional activities. The analysis references relevant marketing theories like the Ansoff matrix and highlights the importance of adapting strategies to the changing preferences of customers and the competitive landscape. The report concludes by emphasizing the need for Amazon Australia to remain innovative and customer-focused to maintain its success in the e-commerce industry.

Running head: MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Marketing Analysis of Amazon, Australia
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1MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Executive summery
The objective of drafting this paper is to shed light on the aspects, which have been
influencing the success of Amazon, Australia since the day of its beginning. Moreover, it will
elaborate the strategies that can be adopted to retain the success and achieve sustainability.
Considering the extremely competitive business environment and trend of businesses to make
a global approach, Amazon has decided to explore a new market place as it directly
contributes towards potential success.
This report has described marketing strategies with the help of several principles like,
understanding the 5ps of promotion, segmentation of market and role of effective marketing
communication. Further, acknowledging the current situation of Australian market
promotional and internal activities have been suggested to retain a successful market position.
This report can work as a set of principles to the e-commerce companies who have already
established a brand name and seeking for a new marketplace to explore.

2MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Table of Contents
Introduction....................................................................................................................3
Overview of the company: Amazon, Australia..............................................................3
Marketing analysis.........................................................................................................4
Nature of Amazon’s marketing strategy....................................................................4
5ps of marketing.........................................................................................................5
Target market.............................................................................................................5
Amazon’s USP...........................................................................................................5
Effective marketing communication..........................................................................5
Strategic marketing choices for future success..............................................................6
Innovation within business procedure........................................................................6
Diversification............................................................................................................7
Execution of services.................................................................................................7
Investment in promotional activities..........................................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9

3MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Introduction
The business market has become increasingly competitive where consumers can
choose from a wider variety of products and services. As described in Vanpoucke, Vereecke
and Wetzels (2014), in order to accomplish organisational goals and gain competitive
advantage in the market every organisation should identify and satisfy dynamic requirements
of the consumers. Creating a competitive advantage is not that difficult if an organization
knows the strategic ways to promote their business globally (Wu et al. 2014). This report
aims to identify the strategic directions, which Amazon Australia has been following since
their initial days of operations. Moreover, it will discuss current strategies, adopted by the
company to sustain a successful position throughout the next ten years and more. In the
course of applying such strategies several issues they had faced earlier and in future as well
they are going to face. However, the company can achieve sustainability with the application
of effective and appropriate marketing strategies, which are going to be suggested in this
following report.
Overview of the company: Amazon, Australia
Amazon comes with a mission of being customer oriented by offering right quality of
the product at affordable prices. Vision is to make best use of technology and provide a
decent shopping experience on the virtual field. The company deals in e-commerce and
computing services originated in Washington, America. The arrow in their logo (a - z) is an
indication of company’s versatile services (www.amazon.com, 2018). It was founded in the
year of 1994. It has been positioned in the market as one of the giant retailers of internet
services. Previously it presented themselves as online bookstore. Later, management had
diversified their products in relevant sectors of mp3 downloading, e-books, furniture,
apparels, packaged food products and many more.

4MARKETING ANALYSIS OF AMAZON, AUSTRALIA
The company provides the service of international shipping of goods to countries of
their choice (Skudiene, Auruskeviciene and Sukeviciute 2015). Recently, the number of
subscribers of Amazon Prime has reached 100 billion across the world. With such progress, it
is on the verge of becoming the second largest US Company after Apple in terms of
increasing trade. Gradual increase of popularity within a period of 25 years has been
observed, as it has become the second largest in terms of market share and sale. Therefore, it
can be understood that managers of the company are pragmatic enough to adopt marketing
strategies, which are turned out to be effective throughout in the case of Amazon. However,
considering the present business scenario, such strategies needs to be modified accordingly to
retain the success.
Marketing analysis
Nature of Amazon’s marketing strategy
Since the days of the beginning, the organisation has been concentrating on
demographic and psychographic segmentation to understand the global market. According to
the demographic areas the choices of the consumers differs. In order to make a better
approach, company started to segment the market as per psychographic differences as they
realised consumers are needed to be differentiated based on their individual interests, moral
values and traits. By doing that, as per O. Pappas et al. (2014), company has become
successful in retaining the premium customers for long term. It has successfully found a place
in global market as an e-commerce company with the motto of establishing the company
universally yet maintaining a native approach.
Before approaching the Australian market, Amazon was optimistic to earn a
considerable part of market share, as their focus was entirely on customers’ interest of low
price, wider range of options to choose from and delivery of the products in a timely manner.

5MARKETING ANALYSIS OF AMAZON, AUSTRALIA
As Australia is, a market place of several established e-commerce companies Amazon has to
confront with cutthroat competition. When Amazon started to perform the market research, it
has been observed that potential customers are aware enough of the brand name and excited
to have it in their own country. According to Ritala, Golnam and Wegmann (2014),
Australian retailers have taken this phenomenon of more as a threat than opportunity to
improve the figure of sale. The marketing strategies of Amazon are based on following
aspects.
5ps of marketing
As per the previous discussion, Amazon strictly focuses on product quality at
affordable price and preferences according to a certain place. Amazon offers the widest range
of products amongst both the virtual and physical retailers. Based on the online nature of
business operations, promotional activities hit the global audiences (Pickernell et al.2013). Its
entrance into Australian market ensures mass employment of people based on their capability
to work with Amazon.
Target market
According to the study of Klaus (2013), Amazon’s target market is consist of high
and middle class people who have minimum knowledge of technology or cannot afford the
time to go to a physical store for satisfying daily requirements. However, with the multi
segmentation policy like following the demographic, psychographic and geographic
segmentation; Amazon has positioned itself in the market targeting the widest range of the
consumers.
Amazon’s USP
The company has been successfully integrating wide range of choices with affordable
price competing with rivals since the day of beginning. Their USP lies at the strategies of
conducting effective market communication, exceptional service and timely delivery.

6MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Effective marketing communication
While promoting the brand across Australia, Amazon approaches the market with the
help of both media and print advertisements, promotional events and maintaining a
relationship of trust with the consumers (Vos et al. 2014). The elements of advertisements
consist of product and service specifications along with experiences of satisfied customers.
Therefore, based on these aspects, it can be said company’s marketing strategies are
as follows.
 Acknowledging the online nature of the business operations, offering wider range of
options to provide more variety than any physical store.
 Employees are trained to become extremely customer friendly yet professional to
ensure customer satisfaction (Ghosh 2013).
 Target market has enhanced from the previous decade due to the impact of
technological advancement, which has boosted Amazon’s market presence.
 Offering products based on the distinct understanding of consumers’ behaviour and
preferences.
 Effective use of marketing communication channels.
Strategic marketing choices for future success
Amazon’s business platform is closely linked with an electronic device and the
availability of technological services. Being the second largest e-commerce engine of
America Amazon should consider future options strategically in order to ensure success in
coming days too. Following strategies can be considered to make a sustainable approach over
success.

7MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Innovation within business procedure
Amazon is not only an established e-commerce company but also it has a practice of
introducing innovation in terms of technology. Companies may face difficulty by adopting
creative ideas into an existing successful scenario yet instance of Echo influences Amazon to
think in an innovative manner within the relevant sector. Echo, being the voice command
device is capable of doing multiple tasks like playing songs and checking weather updates
etc. The company has experienced immense profitability by selling Echo units within one
year. Such intelligent investments are expected from them in order to ensure success
throughout next one decade.
Diversification
The strategy of diversification can be considered to ensure future growth following
the academic theory of Ansoff matrix. According to Aditya and Acharyya (2013), Practice of
diversification encourages exploring new business market along with wider categories of
products. The company has already diversified their products widely within relevant sectors
starting from the grocery to designer shoes with purpose of increasing sale and market share.
Their versatile product line offers not only the consumers, but also the small entrepreneurs
who can contract with their network in search of IT support and A/V services.
Execution of services
Amazon’s efficiency in understanding the consumer’s preferences correctly helps
them to execute services without any complain from them (Wu 2013). The networks of
distribution channels is widespread which helps to deliver products timely manner (Popa,
Soto-Acosta and Loukis 2016). As far as new marketplace is concerned, the company needs
to choose their vendor and distributors wisely to maintain the brand name. The recruitment
process should be fair enough to appoint best employees around the universe to retain the
goodwill of customer service.

8MARKETING ANALYSIS OF AMAZON, AUSTRALIA
Investment in promotional activities
As far as current business scenario is concerned, Amazon needs to be highly
competitive to stand against the Australian e-commerce companies and retail stores. While
most of the customers prefer to shop from familiar vendors, a part of the market has a
tendency to shop from such s company with global market presence. Australian market has
been considering it as a threat mostly instead of an opportunity. According to Shih, Chen and
Chen (2013), considering the greater effect of globalization in future days capital must be
invested in SEO to reduce virtual traffic and it will surely attract more shoppers who wants a
hassle free and time saving shopping experience. Company’s growth is dependable on its
digital growth. However, the online nature of business will be saving the promotional cost
and time as well as generating the revenue (Klingebiel and Rammer 2014).
Conclusion
As Amazon is a global network dealing in e-commerce services, their strategies are
well known and rivals exploit their brand image occasionally by copying part of their
promotional activities. Although, it is not possible to imitate entire distribution infrastructure
yet the manner and location of shipping or prices and nature of discounts are imitable. Their
leadership in global market has not been established within a night, so Amazon Australia
considering the ever dynamic and highly competitive business environment should adopt
innovative business models such as Ansoff matrix to make a significant difference in
Australian e-commerce industry ensuring growth and success of their own. Simultaneously,
modification of strategies according to the changing preferences of customers and several
marketing variables would help to retain their success throughout next ten years.

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References
Aditya, A. and Acharyya, R., 2013. Export diversification, composition, and economic
growth: Evidence from cross-country analysis. The Journal of International Trade &
Economic Development, 22(7), pp.959-992.
Ghosh, A.K., 2013. Employee empowerment: A strategic tool to obtain sustainable
competitive advantage. International Journal of Management, 30(3), p.95
Klaus, P., 2013. The case of Amazon. com: towards a conceptual framework of online
customer service experience (OCSE) using the emerging consensus technique
(ECT). Journal of Services Marketing, 27(6), pp.443-457.
Klingebiel, R. and Rammer, C., 2014. Resource allocation strategy for innovation portfolio
management. Strategic Management Journal, 35(2), pp.246-268.
O. Pappas, I., G. Pateli, A., N. Giannakos, M. and Chrissikopoulos, V., 2014. Moderating
effects of online shopping experience on customer satisfaction and repurchase
intentions. International Journal of Retail & Distribution Management, 42(3), pp.187-204.
Pickernell, D., Jones, P., Packham, G., Thomas, B., White, G. and Willis, R., 2013. E-
commerce trading activity and the SME sector: an FSB perspective. Journal of Small
Business and Enterprise Development, 20(4), pp.866-888.
Popa, S., Soto-Acosta, P. and Loukis, E., 2016. Analyzing the complementarity of web
infrastructure and eInnovation for business value generation. Program, 50(1), pp.118-134.
Ritala, P., Golnam, A. and Wegmann, A., 2014. Coopetition-based business models: The case
of Amazon. com. Industrial Marketing Management, 43(2), pp.236-249.
Shih, B.Y., Chen, C.Y. and Chen, Z.S., 2013. Retracted: an empirical study of an internet
marketing strategy for search engine optimization. Human Factors and Ergonomics in
Manufacturing & Service Industries, 23(6), pp.528-540.

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Skudiene, V., Auruskeviciene, V. and Sukeviciute, L., 2015. Internationalization model
revisited: e-marketing approach. Procedia-Social and Behavioral Sciences, 213, pp.918-924.
Vanpoucke, E., Vereecke, A. and Wetzels, M., 2014. Developing supplier integration
capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal
of Operations Management, 32(7-8), pp.446-461.
Vos, A., Marinagi, C., Trivellas, P., Eberhagen, N., Skourlas, C. and Giannakopoulos, G.,
2014. Risk reduction strategies in online shopping: E-trust perspective. Procedia-Social and
Behavioral Sciences, 147, pp.418-423.
Wu, L., 2013. The antecedents of customer satisfaction and its link to complaint intentions in
online shopping: An integration of justice, technology, and trust. International Journal of
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Wu, L.Y., Chen, K.Y., Chen, P.Y. and Cheng, S.L., 2014. Perceived value, transaction cost,
and repurchase-intention in online shopping: A relational exchange perspective. Journal of
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www.amazon.com (2018). Amazon.com: Australia. [online] Amazon.com. Available at:
https://www.amazon.com/Australia/s?page=1&rh=i%3Aaps%2Ck%3AAustralia [Accessed
14 Sep. 2018].

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