Project Report: Analysis of Amazon's Global Marketing Performance

This project report provides an in-depth analysis of Amazon Inc.'s global marketing strategies. It examines the company's approach to expanding its market internationally, focusing on the marketing mix elements such as product, price, place, and promotion. The report evaluates Amazon's economic performance, including planning assumptions, sales forecasts, and cost-profit analysis. It also details the company's action plan, promotional budget, implementation, and control measures, as well as a contingency plan. The report highlights the importance of adapting marketing strategies to different global markets and provides insights into the financial and marketing factors influencing Amazon's success. The analysis includes financial statements such as profit and loss accounts, demonstrating the company's revenue, expenses, and net profit. The report concludes with a summary of key findings and recommendations for Amazon's continued global expansion.

Running Head: Global marketing
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Project Report: Global marketing

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Executive summary
In this report, Amazon inc. has been analyzed and it has been found that how this
company is managing its global marketing strategies and implementing them to reach over a
better conclusion. The marketing mix of the company has been analyzed to brief the company
about various new strategies which could be helpful for the company to manage the better
performance of the company. Financial and marketing factor have been evaluated in this
report. And lastly, an action plan and contingency plan has been given.

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Contents
Introduction.......................................................................................................................4
Marketing mix strategy.....................................................................................................4
Product..........................................................................................................................5
Price..............................................................................................................................5
Place..............................................................................................................................5
Promotion.....................................................................................................................5
Process..........................................................................................................................6
People...........................................................................................................................6
Physical evidence..........................................................................................................6
Economic evaluation........................................................................................................6
Planning assumptions...................................................................................................7
Forecast sales, market shares and cost and profit.........................................................7
Budget...........................................................................................................................8
Profit and loss a/c..........................................................................................................8
Promotional budget.......................................................................................................9
Implementation and control............................................................................................10
Action plan..................................................................................................................10
Contingency plan........................................................................................................11
Conclusion......................................................................................................................11
Appendix.........................................................................................................................15

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Introduction:
Global marketing is the part of marketing where an organization expands and
diversifies its market globally. Amazon Inc has been chose for this report. Amazon Inc is the
largest company in the online retail store and currently, it is running its business very
smoothly and enhancing the return of the company. This company has planned to diversify its
market into overseas (Amazon, 2017). Basically, this company is of US. It offers various
product and services to its customer through an online portal. Amazon deals with the seller to
sell out their product through Amazon and then it delivers the product to the customer and
charge commission from the seller. There are various competitors of the company in the
market but still company has managed to make its place into the market and currently it is
leading the e commerce business. The main mission of the Amazon is to enhance its market
base and the share through entering into the new market and satisfying the customers.
Various policies and strategies are used by the company to achieve its goals and targets. The
main product and services of the company are clothes, books, household stuffs, toiletry
products, kitchen products etc. services of the Amazon are quite satisfactory and the existing
customers of the company are quite satisfied with the performance of the company (Best,
2009).
Marketing mix strategy:
Marketing mix is the combination of various factors which could be controlled by an
organization to manage and influence the customers to buy a product. Amazon Inc. is
required to have a look over its marketing mix before entering into the new market. The
marketing mix of the company must be created in such a manner that company could achieve
its goal effectively. The marketing mix strategy of the company must be accordingly:

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(Doyle & Stern, 2006)
Product:
As Amazon is the online retail store, so it must offer entire products such as variety of
clothes, household stuff, appliances, books, beauty products, furniture, car, mobiles,
electronic products, gifts, grocery, pet suppliers, office essentials, watches, various tools and
home improvement etc so that the customers could attract more towards it in the overseas
market (Snyder & Davenport, 2013).
Price:
The prices of the Amazon Inc must be lower than other competitors, the current
strategy of pricing of Amazon is satisfactory and company must follow the same in global
market too (Peter & Donnelly, 2011). Company must directly buy the product from the
manufacture and sell is directly to the customers so that the price level of the company could
be lower than the market price.
Place:
This marketing mix is a contradicting issue for the company as the company would
offer all the products through its portal so individual could download it into their android, ios
mobile and order anything which is available at the store of the company. Website could
launch its web links on the web pages to enhance the market share (Stratton, SAS Institute
Inc., 2009).

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Promotion:
Company could take the help of various strategies to promote its product into the
global market such as coupons, sale, emails, offer etc. company could ask various questions
to the people and gift them a voucher (Weygandt, Kimmel & Kieso, 2015). Company could
also promote its business through print media, TV, radio, hoardings etc to promote its
business into the global market. This would help the company to enhance its market share
and it would also help the company to achieve its goals.
Process:
In order to buy the goods in the cart, a check out section is required to select. This
check out policy of the company follows 5 steps which starts from identifying the clients then
selecting the shipping address then select the payment method then the overview of the order
could be analyzed and the order could be confirmed and lastly the order is confirmed by the
company through an email (Saunders and Cornett, 2014). The above process of the company
is bit easy and thus the customers get attracted more.
People:
In Amazon, people are those who brings the customer product. Company must
identify the best courier company in the international market and take the help of that
company to deliver its products so that the product could be delivered on time to the
customer. It could also start the prime system in which the product would be delivered in next
48 hours after placing the order.
Physical evidence:
Company could put its links on various websites and other web pages which would
help the customers to know about the company and this company could also set its position
through various keywords that make it simple and easy for the individual and visitors to find
the website and purchase products from the website (Martani and Khairurizka, 2009).
Thus the above strategies would help the company to manage the marketing strategies
of the company and enhance the market share into the international market.
Economic evaluation:

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Economic evaluation is very crucial for every business. This part is prepared by the
company to identify the future changes and predict the future performance of the company. In
this part, various planning related to financial performance, cost of the company, total profit
of the company, sales etc are analyzed. Amazon’s economic evaluation has been done in this
report, on the basis of various strategies to identify the performance of the company and the
various financial consequences and the benchmark.
Planning assumptions:
Firstly, the planning of the company into the Australian market has been examined in
the context with the financial consequences. The sales of the company have been analyzed
according to the market population and market share of the company. The discount has been
analyzed on the basis of annual report of the company and historical data of the company.
Stock ratio of the company has been planned according to the consolidated profit and loss
account of the company (Bojadziev, 2007). Further, the various expenses of the company has
been forecasted according to the competitors expenses, Australian market, the labour cost of
the Australian market and various other factors.
Forecast sales, market shares and cost and profit:
The sales of the company have been analyzed according to the market population and
market share of the company. Market shares of the company have been predicted according
to the overall performance and competitive companies of the company, the main competitor
of the company is JB HI FI. According to the analysis, the market share of the company
would be 20%. The total population, market population, annual purchase, commission etc has
been analyzed to identify the total sales of the company:
Market share of the comapny 20%
Total population of the country 24.13 million
Total market populations 4.826 million
average annaul purcahse 25
per
customer
Estimated annual revenue 120.65 million
Further, the cost and profit of the company has been analyzed through considering
various aspects of the market, company and the competitors. The cost and profit analysis of
the company is as follows:
Profit and Loss Statement

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(Amt in $'000)
Month Oct 17
Income
Sales
Sale of goods/services
$
1,20,650.00
Sundry Income (e.g. Commission earned,
frachise fees etc.)
Etc.
Total Sales
$
1,20,650.00
Less Discounts/Commissions
Sales Discounts given
$
5,000.00
Sales Commissions paid $ -
Total Discounts/ Commissions
$
5,000.00
Total Net Income
$
1,15,650.00
Cost of Sales
Opening Stock
$
10,000.00
Stock Purchased
$
60,000.00
$
70,000.00
Less Closing Stock
$
500.00
Total Cost of Sales
$
69,500.00
Gross Profit
$
46,150.00
Expenses
General & Administrative
Bank charges
$
500.00
Credit card commission
$
300.00
Consultant fees $ 35.00
Office Supplies
$
100.00
Business insurance
$
100.00
Etc. $ -
Total General & Administrative
$
1,035.00
Marketing & Promotional
Advertising
$
1,500.00

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Promotion - General
$
1,000.00
Promotion - Other
$
500.00
Etc.
$
250.00
Total Marketing & Promotional
$
3,250.00
Operating Expenses
Newspapers & magazines $ 25.00
Parking/Taxis/Tolls
$
105.00
Laundry/dry cleaning
$
100.00
Cleaning & cleaning products $ 75.00
Sundry supplies
$
500.00
Equipment hire
$
250.00
Etc. $ -
Total Operating Expenses
$
1,055.00
Motor Vehicle Expenses
Fuel
$
750.00
Vehicle service costs
$
300.00
Tyres & other replacement costs
$
200.00
Insurance
$
100.00
Registrations $ -
Total Motor Vehicle Expenses
$
1,350.00
Website Expenses
Domain name registration
$
1,000.00
Hosting expenses
$
5,000.00
etc $ -
Total Website Expenses
$
6,000.00
Employment Expenses
Permanent $ -
Salaries/Wages
$
2,000.00
PAYE
$
1,000.00
Superannuation
$
1,000.00
Other - Employee Benefits
$
1,250.00
Recruitment costs
$
1,250.00
Total Perm. Employment Expenses $

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6,500.00
Casual
Salaries/Wages
$
1,800.00
Recruitment costs $ -
Total Casual Employment Expenses
$
1,800.00
Workcover Insurance $ -
Total Employment Expenses
$
8,300.00
Occupancy Costs
Electricity/Gas
$
312.50
Telephones
$
500.00
Property Insurance
$
150.00
Rates
$
100.00
Rent
$
150.00
Repair & maintenance
$
600.00
Waste removal
$
250.00
Water
$
250.00
Etc. $ -
Total Occupancy Costs
$
2,312.50
Other Expenses
Machineries
$
700.00
Vehicles
$
200.00
Equipment
$
700.00
Total Other Expenses
$
1,600.00
Total Expenses
$
17,552.50
Net Profit / (Loss)
$
28,597.50
Total Year to Date Net Profit / (Loss)
$
28,597.50
(David, 2011)
The above table depict that the total cost of the company is $ 1,75,52,500 whereas the
total gross profit of the company is $ 4,61,50,000.
Budget:

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Further, the study has been conducted over the budgets of the company. The budget
has been prepared for a year in which the total sales of the company, various expenses, cost
of sales, gross profit, net profit etc as been evaluated (Geraedts et al, 2012). The budgeting
information of the company is as follows:
Profit and loss a/c:
Profit and loss a/c has been prepared according to the basis of the above prediction.
The summary of profit and loss a/c of the company is as follows:
Profit & Loss
Statement
Month Sep 17
Income
(Amt in
$'000)
Total Sales 1,20,650
Less Total Disc/Comm 5,000
Total Net Income 1,15,650
Less Total Cost of Gooods
Sold 69,500
Gross Profit 46,150
Expenses
General & Administrative 1,035
Marketing & Promotional 3,250
Operating Expenses 1,055
Motor Vehicle Expenses 1,350
Website Expenses 6,000
Total Employment Expenses 8,300
Occupancy Costs 2,313
Other Expenses 1,600
Total Expenses 17,553
Monthly Net Profit /
(Loss) 28,598
Total Year to Date Net Profit / (Loss) 28,598
(Garrison, Noreen, Brewer & McGowan, 2010)
This depict that the net profit of the company would be $ 2,85,98,000, in case the
company would enter into the Australian market. Further, the shares and the revenue of the
company would be enhanced.
Promotional budget:

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Further, the study has been proposed over the total promotional expenses of the
company. Following amount could be spent by the company to conduct the promotional
techniques for the better positioning in the customer’s mind.
Amazon Limited
Promotional Budget as a Percentage of Total Sales
Estimated Total Sales 1,20,650
% of Gross Revenue for Promotion 2.69%
TOTAL PROMOTIONAL BUDGET
(in $)
3250
Promotional Activities
Television Advertising Campaign 1500
Newspaper & Magazine Advertisement 500
Social Media
Advertising
300
Flyer, Banner and
Billboard Advertising
200
Brand Promotional
Events &
Sponsorship
250
Charity for Health &
Wellness research
150
Public Relation
Campaigns
350
TOTAL 3250 3250
(Jouini, 2013)
The promotional budget table depict that the total 269% of the total sales would be
spent by the company for its promotion in the Australian market. Thus the total promotional
budget of the company would be 32,50,000. The company would spent its promotional
budget on various promotional methods such as television advertisement campaign, social
media advertising, newspaper, banners, public relations etc. It would help the company to set
its position into the Australian market (Higgins, 2012).