MKT00720 Marketing: Analyzing Amazon Australia's Marketing Strategy

This report provides a detailed analysis of Amazon Australia's marketing strategy upon entering the Australian market. It evaluates the effectiveness of their initial two-pronged approach, which aimed to disrupt the retail industry, and examines their marketing mix, including product offerings, placement strategies, pricing tactics, and promotional activities. The report highlights that Amazon's initial strategies did not yield the expected competitive impact and revenue, and it suggests strategic marketing options for future improvement, such as refining promotional strategies, adjusting pricing policies, and expanding the distribution network. Ultimately, the report concludes that Amazon needs to enhance its marketing efforts to achieve its desired position in the Australian retail industry and compete effectively with existing players.

Running head: MARKETING STRATEGY OF AMAZON AUSTRALIA
MARKETING STRATEGY OF AMAZON AUSTRALIA
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY OF AMAZON AUSTRALIA
Executive Summary
The discussion that has been made in the report is based on the ways by which strategies are
developed by the global organizations in order to enter a new country. The company which
has been analysed in the report is Amazon which is a global online retail based organization.
The ways by which the company has been able to enter further operate in Australian retail
based industry has been analysed in the report. The analysis has been able to depict that the
Amazon has not operate in an effective way in the country and the levels of competition
which the company has provided are also quite low. The company is also recommended with
strategies which can improve its operations.

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Table of Contents
a. Introduction................................................................................................................3
b. About the organization...............................................................................................3
c. Analysing the marketing strategy...............................................................................4
i. The type of strategy used by Amazon Australia for marketing since it began.......4
ii. Strategic marketing based options for Amazon Australia in the future.................6
d. Conclusion..................................................................................................................7
e. References..................................................................................................................8
g. Appendices...............................................................................................................10
Appendix 1...............................................................................................................10
Appendix 2...............................................................................................................10

3MARKETING STRATEGY OF AMAZON AUSTRALIA
a. Introduction
The approach based on marketing which is implemented by the modern organizations
are mainly based on their long term plans in order to operate in the industry in a profitable
manner. The organizations thereby need to have an advantage over the competitors in order
to operate in the highly competitive industry in an effective manner. The initial stages of the
operations of organizations are thereby based on the ways by which strategic planning is
conducted effectively (Aghazadeh 2015). The competitive position can thereby be received
by the organizations in the industry with the proper achievement of the goals and objectives.
The report can provide a detailed analysis of marketing based approach which is
applied by an organization so that it is able to operate in a country effectively. The company
which has thereby been selected for the analysis is Amazon. The strategy related to marketing
which is applied by the company for its successful operations in Australia is the most
important part of the analysis.
b. About the organization
Amazon.com is an online retail and ecommerce based organization which has its base
in the United States. The services that are provided by the company are based effective cloud
computing based methods and processes. The headquarter of Amazon is situated in Seattle,
Washington. Amazon was established by Jeff Bezos in 1994, which has further started
growing into the largest online retailer by assistance that is provided by the services and
products offered to consumers (Amazon.com.au 2018).
The revenues and the market based capitalization of Amazon has been earned with the
help of its operations all over the world. The operations of Amazon were started by its CEO
as an online bookstore and the company further diversified its product line in order to fulfil
the different needs of consumers. The different types of products that were thereby offered by

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the company include, toys, video games, jewellery, electronics and food based items. The
basic products that are sold by the company which are capable of fulfilling the needs of
different types of customers (Amazon.com.au 2018).
The business based processes of Amazon in the online retail based industry has been
continued in an effective manner with help of diverse products and services that are offered
by the company. The different websites which are thereby developed by the company
according to the needs of customers have been an important part of the success that is earned
in the industry. The analysis in the report is thereby related to the operations of the company
in Australia (Amazon.com.au 2018). The different strategies that are implemented by the
organization are considered to be an important part of the analysis which will be made in the
report.
c. Analysing the marketing strategy
i. The type of strategy used by Amazon Australia for marketing since it began
The two pronged based strategy has been used by Amazon at the time of its entry in
the Australian market. The strategy was thereby aimed at the ways by which Amazon is able
to increase its impact on the revenues and operations of the other organizations in the retail
based industry. The levels of competition which have been provided by the company to
physical stores all over the world are quite high (Abc.net.au 2018). The company has also
aimed at the developing the operations in Australia in such a manner which can provide
similar levels of competition.
The strategy based on marketing that has been implemented by Amazon Australia was
quite different from that which was applied in other countries. The company has thereby
offered the services and products to the worldwide customers through its website. The proper
development of different physical stores is thereby an important part of the expansion based

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plans of the company. The differentiation based marketing strategy has been implemented by
Amazon in the Australian retail based industry (Cacciolatti and Lee 2016).
The value that is given by Amazon to the customers is important for the effectiveness
of the marketing based strategy. The various offerings of Amazon have been able to play a
major role in developing the position of the organization in the industry. The effective
marketing mix of Amazon is also considered to be a part of the strategy that has been created.
The marketing mix which is developed by Amazon in Australia is as follows,
 Product – The products that are offered by the company to the customers in
Australia are based on their needs and the demands. Amazon has been able to
develop a huge product line which include, DVDs, gaming consoles, books
and different clothing related items (Coyne and Coyne 2018).
 Place – The presence has been developed effectively all over the world and in
the different parts of Australia through the website. The company has thereby
developed an image in the industry which is helpful for its operations. The
online operations have thereby led to development of physical stores of the
company in order to serve a wider range of customers (Gummesson, Kuusela
and Närvänen 2014).
 Price – Amazon has always implemented competitive pricing based
techniques in order to operate in the industry effectively. The strategy related
to pricing that has is used by the company in Australia has been able to play a
major role in the developing a customer base. The premium group of
customers are thereby offered better offers and prices (Key and Czaplewski
2017).
 Promotion – The different promotional activities that have thereby been
implemented by Amazon in the industry have been effective for its operations.

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The major strategy based on promotions have been implemented by Amazon
in Australia and other areas of its operations is search engine marketing. This
strategy has proved to be quite useful for the promotional activities of the
organization and the ways by which it is able to reach the consumers as well
(Olson et al. 2018).
Amazon had started its operations in Melbourne where it had developed its first store.
The warehouses were also built outside the city in order to fulfil the different delivery based
needs of the consumers. The formation of an effective distribution strategy had thereby been
able to play a major role in the ways by which Amazon operates in the industry. The
company was also able to provide large amounts of employment to the people in the country
(Macarthy 2018). This has been able to play a major role in development of the position of
Amazon. Amazon is however still operating in its early stages in the country and the
company needs to develop in an effective way in order to operate in the industry in a
profitable manner. However, the levels of response provided to the company in Australia
have not been successful in maintaining the levels of profitability and revenues in an effective
way. The company thereby requires to implement new strategies to be successful in
Australia.
ii. Strategic marketing based options for Amazon Australia in the future
The organization has not received effective response from the customers and the
retailers based on their operations. The negative type of response has been provided by the
customers with the help of various social media platforms. The selection of the products and
pricing based strategies have also been criticised by the customers. The operations of the
company have not been able to increase the levels of competition in the Australian retail
based industry (Solomon et al. 2014). The operations of various local retailers are not
affected in a huge manner by the services and products that are offered by the organization.

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The changes need to be made in the promotional and advertising strategies of Amazon
in order to improve levels of revenues in an effective manner. The improvement of the
marketing based strategy implemented in Amazon can play a major role in developing a
position of the company (Webalive.com.au 2018). Changes also need to be made in pricing
based policies of the services and products which have been a major reason behind the lack of
revenues. The organization will thereby provide high competition to the physical retailers
with the help of development in the distribution based strategy (Song et al. 2018). Amazon
needs to increase the number of warehouses so that the company is able to manage the
customers and delivery based needs.
d. Conclusion
The discussion in the report can be concluded with the statement that Amazon was not
successful in developing its position in the retail industry. The company has thereby not been
able to live up to its reputation and brand image which is developed in the industry. The
improvement in strategies is important for the marketing of its services and products. The
different retail based companies which are already operating in the retail industry will be
provided effective competition based levels by Amazon. The physical stores of Amazon will
play a key role in the ways by which the company is able to provide competition in the
market. The company can then maintain its reputation which has been created in the whole
world with the help of proper advertising and the promotional strategies.

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e. References
Abc.net.au 2018. Amazon unveils next phase of Australian push. [online] ABC News.
Available at: http://www.abc.net.au/news/2018-02-27/amazon-rolls-out-next-phase-of-
australian-launch/9489078 [Accessed 22 Sep. 2018].
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences,
207, pp.125-134.
Amazon.com.au 2018. Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books,
DVDs & more. [online] Amazon.com.au. Available at: https://www.amazon.com.au/
[Accessed 22 Sep. 2018].
Cacciolatti, L. and Lee, S.H., 2016. Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation, marketing
strategy and organisational power. Journal of Business Research, 69(12), pp.5597-5610.
Coyne, A. and Coyne, A. 2018. Amazon launches online store in Australia. [online] iTnews.
Available at: https://www.itnews.com.au/news/amazon-launches-online-store-in-australia-
479134 [Accessed 22 Sep. 2018].
Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), pp.228-240.
Key, T.M. and Czaplewski, A.J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business horizons, 60(3), pp.325-333.

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Macarthy, A., 2018. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy
for Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R.,
2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.
Song, R., Moon, S., Chen, H.A. and Houston, M.B., 2018. When marketing strategy meets
culture: the role of culture in product evaluations. Journal of the Academy of Marketing
Science, 46(3), pp.384-402.
Webalive.com.au 2018. Australia's Ecommerce in 2018: How Amazon Challenges the Retail
Industry. [online] WebAlive. Available at: https://www.webalive.com.au/ecommerce-
australia-2018/ [Accessed 22 Sep. 2018].

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g. Appendices
Appendix 1
Appendix 2

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