Report on Amazon Australia's Marketing Strategy - MKT00720, 2018

This report provides a comprehensive marketing analysis of Amazon Australia, examining the strategies the company has employed since its inception. It evaluates the effectiveness of these strategies, relating them to core marketing theories and real-life experiences. The analysis covers Amazon's marketing mix, segmentation, targeting, and positioning practices, as well as its marketing communication techniques. Furthermore, the report explores strategic marketing options for Amazon Australia moving forward, including the potential for expanding into physical retail stores, enhancing branding efforts, and focusing on specific marketing channels to gain a competitive advantage in the Australian market. The report concludes by emphasizing the importance of adapting marketing strategies to maintain competitiveness and achieve long-term success.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of the Student
Name of the University
Author note

1MARKETING AND MANAGEMENT
Table of Contents
a. Executive Summary...............................................................................................................2
b. Introduction............................................................................................................................3
c. Background to the Company..................................................................................................3
d. Marketing Analysis................................................................................................................3
i. The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.............3
ii. Strategic Marketing Options for Amazon Australia moving forward...................................6
e. Conclusion..............................................................................................................................8
f. References...............................................................................................................................9

2MARKETING AND MANAGEMENT
a. Executive Summary
The report has tried in analyzing the various types of strategies related to marketing
which has been adopted by Amazon since they started their business. Furthermore, the
different kinds of strategic marketing options are essential to be examined in an active
manner which will be helpful in handling the diversestrategies in an effective and efficient
manner. Lastly, the different marketing theories and concepts have been used which helped in
managing the dissimilar kinds of processes in a well-organized manner.

3MARKETING AND MANAGEMENT
b. Introduction
The report helps in throwing a light on the entire marketing analysis of Amazon
Company which is situated in Australia. The different kinds of marketing concepts and
theories will be used in order to analyse and identify the position of Amazon Australia in the
entire competitive market. Additionally, the different strategic options are required to be
analysed for Amazon which will be helpful in gaining competitive advantage in the market.
c. Background to the Company
Amazon.com is doing business as Amazon which is an American electronic
ecommerce and cloud computing organization which is running as a franchise store in
Australia. The industry in which it is operating in the online shopping industry. The founder
of the company is Jeff Bezos and there are various kinds of products which are being sold by
the company in the entire worldwide(Amazon.com.au2018). Furthermore, in the present this
has been seen that Amazon has now opened a physical store named Amazon Go which is a
small format grocery store and the revenue earned by the company in the year 2017 has
increased to US$177.86 billion till the year 2017.
d. Marketing Analysis
i. The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began
Villeneuve and Pasquier (2017), has hypothesised that the marketing strategy is
defined as the aspect which should be drawn from the research of the market in an efficient
manner. The entire focus is on right product mix as this will help in achieving the maximum
potential of profit and helps in sustaining the business in an efficient manner. The different
marketing strategies of Amazon relies on different six pillars which are as follows:

4MARKETING AND MANAGEMENT
 Using the interface which is customer friendly in nature
 Using the communication system which is existing in nature
 Scaling easily from small to large (Villeneuve and Pasquier 2017)
 Using and exploiting affiliation of the different products along with services
In the figure below, this can be seen that the annual global expenses of Amazon have
been increasing in a consistent manner during the past seven years which is exceeding USD
10 dollars till the year 2017. This is inclusive of the different kinds of advertising along with
promotional costs which is being amounted to USD 3.8 billion to USD 6.4 billion in the year
2015 and 2016.
Figure 1: Amazon Annual Global Marketing Expenses
(Source: Lee and Kotler 2015)
Lee and Kotler (2015), commented that the marketing strategy of Amazon integrates
number of targeted online marketing channels such as different kinds of sponsored search
along with proper online advertising and the different other initiatives have been taken into

5MARKETING AND MANAGEMENT
consideration. Generally, the different marketing strategies in Amazon is based on the
following principles which are as follows:
The 7Ps of marketing strategy of Amazon is mainly focusing on the different place
and product elements of the marketing mix (Smith 2016). The company is offering more than
480 million products in USA and Australia, the range of Amazon is the widest among the
different kinds online and offline retail marketing and stores. Additionally, Armstrong et al.
(2014), commented that the respective organization is being able to offer the products for the
competitive pricing technique as there is massive cost funds based on the entire online kind
of nature of the business operations of Amazon.
The segmentation, targeting and positioning practices of the Amazon Company are
basically associated with the main aspect of targeting the widest range of the segment of the
different customers in the entire market. The retail giant Amazon.com tries to perform the
same with proper application of adaptive, anticipatory along with multi-segment positioning
techniques and strategies (Sargeant and MACQUILLIN 2016).
With the help of the STP process, this has helped Amazon in becoming more aware
about the other competitors such as Flipkart and eBay. With the effect of proper segmentation
techniques, the company tried to gain knowledge on their techniques and gained huge
competitive advantage in the entire market.
The unique selling proposition of Amazon helps in integrating the widest choice of
the different kinds of products along with the services which are being offered by them to the
different customers at the competitive price (Achroll and Kotler 2014). Furthermore, the
other USP of the company is inclusive of the different fast delivery along with the customer
service which is exceptional in nature. The e-commerce giant Amazon focuses on the core

6MARKETING AND MANAGEMENT
marketing communication techniques which is helpful for Amazon in being more competitive
in nature in comparison to the other competitors such as Flipkart (Kwiatkowski 2018).
Lastly, Armstrong et al. (2014) commented that the marketing communication mix
of Amazon tries to integrate the media and print advertising, events and experiences along
with maintaining public relations with the different customers in the entire market. Amazon
places a particular focus on media and print advertising along with sales promotion elements
of the marketing communication channels in an efficient manner (Kotler, Keller and
Opresnik 2017).
Furthermore, in order to become more competitive in nature, the company tried to
differentiate themselves, the company tried to acquire IT and e-commerce start-ups such as
Zappos.com, audible.com and Woot which helped and assisted them in providing value to the
different customers in the market in an effective manner (Lovelockand Patterson 2015).
From the different marketing strategies which have been used by Amazon in the past
and present are required to be followed in the same manner in the near future as this will be
gaining more competitive advantage in the future. Walmart is one of the biggest threats to
Amazon and in order to compete with Walmart, this is essential for Amazon to adopt the
differentiation strategy in the market which will be effective and this will be helpful for them
to be different from the other competitors.
ii. Strategic Marketing Options for Amazon Australia moving forward
There are variousstrategic marketing options which are available for Amazon
Australia for moving forward in the entire competitive market. As per the circumstances of
the recent years till 2018, this can be analysed and identified that there are few aspects which
is required to be adopted by Amazon in becoming more competitive in nature.

7MARKETING AND MANAGEMENT
Firstly, Amazon needs to start off with the different kinds of retail stores which will
be helpful in becoming more successful in their venture in the near future (Keller and Richey
2017). For instance- the one small retail store named Amazon Go has been started in
Australia which is a kind of physical store and this will be effective in nature for becoming
more competitive in nature.
This has been noticed that there are different kinds of individuals in the market who
are not at all capable of handling the different kinds of operations through online mode. With
the help of the offline physical stores, this will be beneficial for Amazon to target more
customers and gain more competitive advantage in the future as well (Chernev 2018).
Secondly, the Amazon needs to increase the sales of the company by establishing
their brand in a proper appropriate manner. Amazon needs to bring in new customers from
different kinds of income levels which will be effective in their operations and this will
increase the overall profitability of the organization in a positive and appropriate manner.
Thirdly, the branding is essential aspect with proper utilization of the different
resources is essential which will be effective in nature and this is required to be adopted by
Amazon. The branding tactics through proper delivering the goods and services to the
different customers at an affordable rate and be more competitive in nature.
The Amazon Company do not reveal much about the different kinds of marketing
approach in their annual reports, however this can be seen that the company needs to focus on
the different kinds of marketing channels which helps in becoming successful in the different
types of approaches in an appropriate manner. From the present circumstances of Amazon in
2018, this can be concluded that the company needs to change their focus towards the target
market in which the Amazon will be targeting all segment individuals and gain more value in
the near future.

8MARKETING AND MANAGEMENT
e. Conclusion
Therefore, this can be concluded that marketing strategies play a major role in
managing the different kinds of operations at Amazon. The different kinds of analysis of the
marketing strategies have been taken into consideration which helped Amazon in becoming
successful in their approaches.
Furthermore, the different types of strategic options have been taken into
consideration which has helped Amazon in becoming more competitive in their approach.
Lastly, the strategic options will be helpful and essential in the long run for Amazon as this
will enhance their competitiveness and the overall aspects of the marketing strategic options
have been taken into consideration.

9MARKETING AND MANAGEMENT
f. References
Achroll, R.S. and Kotler, P., 2014. The service-dominant logic for marketing. The service-
dominant logic of marketing: Dialog, debate, and directions, 320.
Amazon.com.au. 2018. Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books,
DVDs & more. [online] Available at: https://www.amazon.com.au/ [Accessed 24 Sep. 2018].
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Keller, K.L. and Richey, K., 2017. The Importance of Corporate Brand Personality Traits to a
Successful 21st Century Business. In Advances in Corporate Branding (pp. 47-58). Palgrave
Macmillan, London.
Kotler, P., Keller, K.L. and Opresnik, M.O., 2017. Marketing-Management: Konzepte-
Instrumente-Unternehmensfallstudien. Pearson Deutschland GmbH.
Kwiatkowski, C., 2018. SERVICE QUALITY MANAGEMENT MODEL AND
RELATIONSHIP MARKETING. ПРОГРАМНИЙ КОМІТЕТ, p.128.
Lee, N.R. and Kotler, P., 2015. Social marketing: Changing behaviors for good. Sage
Publications.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.

10MARKETING AND MANAGEMENT
Smith, B., 2016. Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education (pp. 47-64). IGI Global.
Villeneuve, J.P. and Pasquier, M., 2017. Marketing management and communications in the
public sector. Routledge.