Detailed Marketing Plan: Amazon's VR Set for Entertainment Industry

This report provides a detailed marketing plan for Amazon's new VR set, focusing on its introduction and potential success in the virtual reality market. It begins with an overview of the business idea, highlighting the benefits of a VR set that streams content and Twitch events, aligning with Amazon's consumer-oriented strategy. The external analysis covers political factors like government interest in digital security and the anti-competition case against Amazon, as well as economic factors such as the impact of the COVID-19 pandemic on consumerism. Social factors, including the increasing acceptance of digital technology, and technological factors, like the rise in cybercrime, are also examined. The competitive analysis focuses on Reality Labs (Facebook), assessing its strengths, weaknesses, opportunities, and threats. The report also evaluates competitive rivalry, the bargaining power of suppliers and consumers, and Amazon's competitive advantage. The target market is identified as young consumers seeking VR technology for entertainment. The conclusion emphasizes the importance of a well-defined marketing plan for new product success, and students can find similar solved assignments on Desklib.

Marketing Plan
Introduction
Marketing plays an important role in
sporting success of new products by
promoting the benefits of new
products to the target audience in an
effective manner. This report poster
detailed marketing plan for new
business idea in context of the
multinational conglomerate Amazon.
Overview
• The proposed business
idea is of a VR set.
• It is beneficial for
Amazon as the company
will be able to move the
current streaming content
on virtual reality platform
and also stream twitch
events.
VR Set
• Amazon has created a globally
recognized brand through fast
expansion into international markets
and consumer oriented business
strategy.
• The e-commerce services offered by
Amazon along with innovative
technological products such as Amazon
fire stick and Amazon Alexa.
• The technological area which Amazon
has not entered is virtual reality
technology.
• There is huge scope for the growth of
virtual reality industry as virtual reality
technology has many application
including gaming and entertainment.

Marketing Plan
Political Factors
Positive Impact: Government investment and interest in improving digital security
can benefit Amazon as it will enhance consumer acceptance of new digital
technology such as Virtual Reality.
Negative Impact: The anti-competition case against Amazon by US government can
create long-term legal trouble for the company. The extra expenditure faced by
Amazon because of anti-competitive lawsuit filed by the US government can
negatively affect financial resources needed to venture into the Virtual reality
industry.
Economical Factors
Positive Impact: Vaccination roll outs and decrease in the number of COVID-19
cases have opened up the economy which can further economic development and
increase purchasing power of the consumer.
Negative Impact: Economic recovery in terms of better functioning supply chain
and efficient movement of goods is slow. This is because COVID-19 has not been
eliminated across the globe and enforcement of COVID-19 safety measures causes
delays in smooth functioning supply chain.
External Analysis
• Political Factors: Government
authority in United states has sued
Amazon in case of unfairly
eliminating competition.
• Economical Factors: COVID-19
pandemic has lowered consumer
confidence and purchasing power of
• the consumers in many countries.
• Social Factors: Consumerism is
increasing across the world.
• Technological Factors: The rise in
Cyber crime against companies and
consumers affects success of Amazon.

Marketing Plan
Competitor’s Analysis
Reality Labs (Facebook)
• Reality Labs is the Augmented
reality/ Virtual Reality division of
global social media and technology
conglomerate Facebook.
• It is leading name in the VR/AR
industry as it offers globally
successful technology products such
as Ray-Ban smart glasses, Portal
video-calling devices and Oculus
VR headsets.
• The company is also supporting
Facebook in increasing the
popularity of the Metaverse which
refers to virtual world where people
can socialize and play.
Strengths:
The primary strength of Reality Labs is its
diversified product portfolio which includes
different types of VR/AR products. This
includes smart glasses, VR gaming headset
and Video calling VR.
It connection with Facebook is another
strength as it provides Reality labs financial
and technological resources to succeed in
VR/AR industry.
Weaknesses:
Reality Labs does not have high brand
recognition across the world which can
slow down its global expansion.
In addition to this reality labs has to
face high expenses in Research and
Development because VR/AR is an
immature technology. This is major
weakness.
Opportunities
Reality Labs has the opportunity to
go global by expanding its
productising Asian markets.
The company has the opportunity to
lower price of its products and start
mass adoption of VR/AR
Threats
The main threat affecting Reality Labs is
the low consumer awareness about
VR/AR technology and its slow adoption
by general public.
Rising competitors such as Oculus, HTC,
Sony and Valve also pose a threat
SWOT
Analysis of
Reality Labs

Marketing Plan
Competitive Analysis
• Competitive rivalry: In case of the virtual reality
industry, the competitive rivalry between
existing firms is high.
• Bargaining power of suppliers The bargaining
power of suppliers in the VR industry is low.
• Bargaining power of consumers: In the VR
industry consumers have low bargaining power.
Target Market
.In case of the target consumer
segment of VR set proposed to be
offered by Amazon is the
demographic segment of young
consumers who need VR
technology for entertainment.
Conclusion
From the above poster it is
concluded that creating marketing
plan for specific business idea is
essential for achieving the success
in introduction of new product.
References
Klichandeang, N. and Singchai, K., 2018. Customer
satisfaction evaluation by using service marketing mix
model: A case study of budget hotel at Rayong
province, Thailand. The Journal of Social Sciences
Research, pp.104-109.
Kumar, J. and Nayak, J.K., 2018. Brand community
relationships transitioning into brand relationships:
Mediating and moderating mechanisms. Journal of
Retailing and Consumer Services, 45, pp.64-73.
Competitive
Advantage
Amazon has competitive
advantage over other companies
in terms of brand recognition and
credibility across the globe.