International Marketing Report: Amazon's Indian Market Strategies

This report provides a comprehensive analysis of Amazon's international marketing strategies, particularly focusing on its operations in the Indian e-commerce market. The introduction defines international marketing and highlights Amazon's entry into India. The main body of the report covers key concepts, the rationale for international marketing, and the various routes to market, including exports, partnerships, and acquisitions. It then evaluates criteria for market selection and different market entry strategies like exporting, franchising, and foreign direct investment, along with their advantages and disadvantages. The report further explores the global versus local debate in marketing, examining how product, pricing, promotion, and distribution strategies vary internationally. Finally, it analyzes the international marketing approaches organizations can adopt, comparing home and international orientations, and assessing competitors. The report concludes by summarizing the key findings and referencing relevant sources.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
P1: Analyse the scope and key concepts of international marketing..........................................3
P2: Explain the rationale for an organization to want to market internationally and describe
the various routes to market they can adopt................................................................................4
Task 2..........................................................................................................................................5
P3: Evaluate the key criteria and selection process to use when considering which
international market to enter.......................................................................................................5
P4: Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each...........................................................................................................6
Task 3...............................................................................................................................................7
P5: Present an overview of the key arguments in the global vs local debate..............................7
P6: Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts..................................................................................................8
Task 4...............................................................................................................................................9
P7. Explain and analyse the various international marketing approaches organisation can
adopt............................................................................................................................................9
P8. Compare home and international orientation and ways to assess competitors outline the
implication of each......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is a phenomenal concept and a process of planning and executing of the
pricing, promotion and distribution ideas of the products in order to generate a process of
exchange by satisfying need of customers and earning sales revenue. On the other hand
international marketing is merging of marketing tactics into multinational process in order to
satisfy customer need on global level, hence international marketing is all about marketing of a
international company that has business operations in a foreign soil. Amazon is a popular and big
name in the e-commerce industry which is a growing trend in the retail sector, it is US bases
multinational company that begun its operations in India by the 2013. India is count as the fastest
growing e-commerce industry in the world and Amazon is not far away to capture Indian e-
commerce marketplace (Schiavone and Simoni, 2019). So, in the light of Indian e-commerce
market and international marketing, following assignment determine the international marketing
tactics and strategies of the Amazon by understand how company's marketing strategies
contributes into business strategies in international respect by identifying the scope and basic
aspect of international marketing. Later on company. There is also critically evaluation entry into
Indian marketing by defining the basic success factor along with international marketing efforts
of the company.
MAIN BODY
Task 1
P1: Analyse the scope and key concepts of international marketing
International marketing is about the planning and designing marketing tactics and
strategies related to the exchange of goods and services of one country in the other, subject to the
rules and regulations were framed by the countries concerned. In other words international
marketing is a marketing for abroad that is trading and doing business on the far side the
governmental boundaries of the country. Amazon choose international marketing concept to
extends its business operations and skimmed market share of Indian e-commerce market which
seems high and fast growth in the recent time (Wilson, 2018). The scope of international
marketing includes the marketing activity associated in the multinational process of the exports
process and entering aspects therefore, international marketing has earned a great scope in

present date because no business can sue rive in the global marketing unless a marketing plan, so
following are the various scope of international marketing which are as- Exports and imports- International marketing is all about trading on one or more
countries and one of the foremost scope of its is export and imports of the goods.
Amazon in its multinational process opted for import and exports in order to trade in
international market. Channel of distribution- While trading on international soil company need to
recognising channel of distribution by which they going to make trade and transaction.
Amazon act as the third-party supplier in the Indian market.
 Marketing research- Market research is crucial activity when a business planning to
commence its business beyond its geographical area, Amazon conduct market research
on its target market area that is Indian e-commerce market.
 Owned warehouses units- Under this company setup there own warehouses, there are
about 20 warehouses unit of Amazon in India and they shipped products thorough its
India-centric program mainly known as Easy Ship and Seller Flex (Westjohn and
Magnusson, 2019).
P2: Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt
Rational motive of choosing Indian market
The main purpose of Amazon to enter into Indian e-commerce market is because as per
the research Indian e-commerce market has witnessed tremendous growth in the few years as per
the marketing report study the e-commerce market of India is work 30 billion by the 2016 which
further show huge growth by jumping into 45$ billions by the 2019 and it has estimated that it
would grow by 100$ billion by the 2024 and will further show a huge growth in about $200
billion by the 2027 (Palazzo, Foroudi and Siano, 2020). Other than this India too has a few
unique peculiarities that are quite differ from the countries like USA from where the company
was established. India has always been mobile-first company so nearly 65% population has
mobile and among them 75 are active on internet.
Various routes adopted by Amazon to market in Indian e-commerce marketplace Partnership and collaboration- Company has followed the partnership concept and by
2014, Amazon partnered with Catamaran Venture to form a business which is known as

Cloudtail India for selling books, phones and genuine products on Amazon.in and after
that rest is history and Amazon come out as the largest e-commerce seller in India. Creating a home domain of website and application- Amazon entered into the Indian
market through a domain i.e. Junglee.com where customer made purcahse on online later
company has launched its home domain website which is www.amazon.in.com for Indian
users. Later on company has touched the local feature in its website and application to
make it more convenient for the rural region people. Market entry by acquisition- Amazon is valuable brand in the world which expends its
business by the acquisition of small and its rival companies, to enter into the grocery
market, Amazon have acquired Aditya Birla group retail firm and also acquire nearly
49% share of Samara capital.
 Franchising the brand- Amazon franchise its brand in India and now operating nearly 21
store in Indian market territory.
Task 2
P3: Evaluate the key criteria and selection process to use when considering which international
market to enter
However, when a firm planning for multinational operations there are various key criteria
as well as pick-up process that need to be adopted , these key aspects are as- Step 1:Defining marketing objectives for international market: For a world renowned
brand Amazon in order to successfully trade into foreign market, it is important for them
to create international marketing objective in advance (Bocconcelli and et. al., 2018). In
context of Amazon, they are expecting to create SMART objectives which implies that
the generated marketing purposed should be simple, measurable, achievable, reliable and
timely. Step 2: Selection of country: Amazon is a company that believes in market expansion
and for that it made selected country which are developing and there is rapid growth
chances. In context to this Amazon has observed tremendous growth in the Indian
market and they are looking for the ways to enter into Indian territory market. Step 3: Selection of the target market and customers- After analysing the and selecting
country Amazon need to make judgement about the target market and customers.

 Step 4: Test marketing: At the beginning the market testing is launched and tested on
the small scale though commercialisation of the service, Amazon launched Junglee.com
in which it sales its book and retail products.
 Step 5: Commercialisation of services- This consider to be the final process, under
which company commence its business in the selected country and targeted marketed.
After the success of test marketing (junglee.com) Amazon launched its home domain
website which is amazon.in excursively for Indian and later on it leverage local touch by
installing local language and product search option with a tag-line “India ki apni dukaan”
which means India's owned shop.
P4: Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each
There are various entry strategies which company used to enter and trade in foreign soil,
which are as follows- Export- Export is a simple and specific market entry strategies which many company
along with Amazon are using to enter in international market. The advantage of export is
that is is fastest entry strategies for Amazon along with low risk associated (Hüttner,
2018). When launching junglee.com company used to export certain items in India to
fulfil order demands. The pitiful drawback of this as there is a little control and idea
fewer idea of local and there are major impact on environment because of the
transportation. Franchising- A franchising is a business entry strategy that business are using for
acquisition and keeping customers, it is a type of marketing system for developing an
image in the minds of current and future customers. Amazon give its franchise to the
various dealers who used its brand name to make trade such as there is office of amazon
delivery house and amazon pay office in the cities. One of the advantage of franchising is
that there is potential for rapid expansion with minimum capital expenditures and direct
and easier management that help in development of the brand image and brand equity in
the market. There are consequence of franchising strategies that is training and support,
Amazon launch its distribution franchising store program known as Seller Flex under
which it provide training to the sellers in order to support them in warehousing practices
to the level which were acceptable to Amazon.

 Foreign direct investment- foreign direct investment made it easy for the many company
to deal business but in context of India, FDI is strictly enacted policy which restricted
foreign brand to sell their product directly to consumer in India therefore Amazon
conduct its business as the third-party reseller for Indian products. Under FDI company
follow joint venture and acquisition policy as market entry strategies (Bajac, Palacios and
Minton, 2018). FDI increase the export level and also a vital tool for development of
backword areas so India is offering lucrative benefits and made 100% FDI to increase
foreign investments. The only drawback is that there are certain chances of amendment in
the FDI policy which can disrupted Amazon operations.
Task 3
P5: Present an overview of the key arguments in the global vs local debate
It has been evidence that all the abstraction are false including this statement also because
there is no universal truth of the debate until some beat another one. Local programme usually
beat the global program, but does it doing it in daily basis there is no proper evidence of the fact.
There is immense evidence about the fact that when creating advertisement campaign company
need to consider in the local campaign because company need to consider cultural, social and
believe and attitude of the people to make it more successful. Local market provide home
advantages to the business along with the political support but there also some kind of support
from the other country when country provide 100% FDI to the foreign company (Tower,
Hewett and Fenik, 2019). When a company set up its business in other country it used cost
leadership strategies which affect the business of existing local company for instance, Amazon is
proved to be disrupt for many traditional retail company and stores as it affect the traditional
business sytem of retail industry. Other than this positive implication of global operations
provide employment opportunities which is useful for both the country and nation. A
multinational brand first looking for trying and make the global strategy work first, yet
companies are changing the global campaign only when they organisations know for a fact that
local market is preventing.

P6: Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts
Amazon is a company which is using different marketing mix for its home and
international market business. The different approaches in a variety of international contexts are
as follows- Product- the product pricing is simple for Amazon in context to its home and
international product offering they try to offer quality of product to the customers that
meet local and global customer need and preference (Buccieri, Javalgi and Cavusgil,
2020). In USA company use skimmed market strategy for its product and whereas in
India it is using market penetration strategies for its product offering. Price: In pricing strategies company is stand with its business mission that is to being
affordable e-commerce brand. Amazon used customised pricing strategies when dealing
in abroad such as company is offering annual prime subscription to Indian user in
$14USd where in USA its home nation it receives $120 USD. This may not be count as
the driving success factor for Amazon but gain provide it competitive edge over its
competitors which are still struggling to offer the same within this price segment. Promotional: Amazon learn from its failure in the Chinese market where they do not
consider and involve local culture and social factors in its promotional activities. Amazon
used local attribute in its promotional activities in India which is commonly known as
India ki Apni dukan, which means India's owned shop. Therefore in its international
business it is using runner strategy to market its product.
 Distribution- Amazon distribution system is simple to become more quick and reliance,
in USA Amazon adopting centralized shipping platform which is known as Fulfilment by
Amazon in which seller transmit its product to its warehouses (Pegan,Vianelli and de
Luca, 2020). Where in India it launch Easy ship and seller Flex program for its product
distribution, it also partner with various delivery provide services search as Blue Dart and
India post and also establishes subsidiary in India called as Amazon transportation
services private limited.

Task 4
P7. Explain and analyse the various international marketing approaches organisation can adopt
The key international marketing approaches which Amazon can adopt are as following-
 Geocentric- This is a foremost approach which Amazon consider in its international
marketing approach by focusing on the company's global business mindset and which
serves global need and wants, Amazon offer prime membership of its Amazon prime in
which all geographical people can watch any show of their respective interest. Regiocentism – For a diverse country like India, regicentirsm is more suitable tool as it
focus on the cultural and social believes factor of the particular region and India is a
secular country so this approach is more appropriate in diverse culture regions (Gomes,
Sousa and Vendrell-Herrero, 2020). Poly-centric- Polycentirsm is a international marketing approach in which company
follow the strategies which is best suitable to the host market, Amazon chooses
customised pricing strategies to trade in India in which they are offering lower prices in
compare to its home market. It also render much importance to the Indian culture in its
promotional activities.
 Ethnocentric- It is an international marketing approach where the company approach is
demonstrated by its domestic market practices, Amazon used to sell books online in USA
and take this legacy to the world and now offering variety of services to the pope setting
anywhere. However, in context of Amazon ethnocentric approach is more suitable
because it is doing same thing in its international business operations which it doing in
USA market.
P8. Compare home and international orientation and ways to assess competitors outline the
implication of each
Operations Home orientation International orientation
Market
perception
Amazon is valuable company in its
home country with full government
support as it took active participation
in the society welfare program that
Amazon beg as the perfect
international market orientation
company in the marketing perception
in the international company as the

support it in developing positive
marketing perception for the brand.
company continuously adopting the
various ways to made its service more
convenient that satisfy global user
need and wants (Wadhwa, Vashisht
and Phutela, 2020).
Marketing
strategies
Marketing strategies in home is
simple as fact the skimmed the
market and eat the cream, company
Prime charge is marketing strategies
which is purely suitable for home
orientation.
Company follow customised strategies
and runner strategies in international
orientation, such as in India it offer
customised pricing and technological
service while using market penetration
strategies.
Recommendation
It is being recommended that in order to maximise the opportunities in an international
market, Amazon need to innovative, appealing and cost effective as the number of rivals are
growing day by day in both home and international marketing. In context to the Indian market,
Amazon rivals are working consistently to improve its internal problem and challenge Amazon
in future, for instance Flipkart has just launched loyalty service particular known as Flipkart Plus
where it is giving similar feature that Amazon (Samiee, 2020). So Amazon need to focus on
innovation and deliver its other services such as customer service, effective use of AL and
Machine learning which can confirm firm success in international market.
CONCLUSION
Therefore, as per the following conduct study it has been discussed that International
marketing is all about marketing planning and functional for a multinational operations, it has
been justify that a firm made international marketing to evaluate and investigate the key
approaches that need to consider while entering and skimming foreign market. Moreover,
company formulate marketing strategies to investigate how the marketing strategies need to be
adjusted as per the differ approaches for a multinational business process.

REFERENCES
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