Report: Evaluating Amazon Australia's Marketing Strategies (MKT00720)

This report provides a comprehensive analysis of the marketing strategies employed by Amazon Australia since its launch in the Australian market. It examines the company's approach to market penetration, including the use of lower prices, free shipping, and the Amazon Marketplace to attract customers and third-party sellers. The report evaluates these strategies, considering their effectiveness in a competitive retail environment, and relates them to core marketing theories. Furthermore, it identifies potential marketing options for Amazon Australia to thrive in the future, such as video product reviews, better ad targeting, new product launches, search optimization, and same-day delivery. The analysis considers the competitive landscape, including major retailers like Coles and Woolworths, and offers insights into how Amazon Australia can gain a competitive advantage and increase its market share in the coming years. The report uses theory, research, and frameworks to provide a detailed assessment of Amazon Australia's marketing efforts and future prospects.

Running head: MARKETING STRATEGIES OF AMAZON AUSTRALIA
Marketing Strategies of Amazon Australia
Name of the Student:
Name of the University:
Author Note:

1MARKETING STRATEGIES OF AMAZON AUSTRALIA
Executive Summary
The objective of this report is to analyze the strategies pursued by Amazon Australia after
leading retail giant Amazon decided to start their operations in Australia. The paper discusses
the various marketing strategies undertaken and adopted by Amazon Australia in order to
penetrate the market in Australia. However, in order to become successful in markets of
Australia considering the various giant retailers present in Australia, they need to adopt some
marketing options so that they can outpace some of the rivals in details present in Australia.
The paper discusses the various marketing options that Amazon Australia need to take in
order to thrive in Australian market.

2MARKETING STRATEGIES OF AMAZON AUSTRALIA
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Background of Amazon Australia..........................................................................................3
Marketing analysis of Amazon Australia...............................................................................4
Nature of Amazon Australia’s Marketing Strategies.........................................................4
Marketing options of Amazon Australia to thrive in future...............................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................9

3MARKETING STRATEGIES OF AMAZON AUSTRALIA
Introduction
Amazon is one of the leading e-commerce and cloud computing company found in
the year 1994. Jeff Bezos founded the company and it is headquartered in Washington, a state
in USA. Amazon expended its business in various parts of the world. Amazon decided to
launch its services of retail in Australia. This report gives background of the
company ,Amazon Australia .It analyzes and evaluates the various marketing strategies
undertaken by Amazon Australia .This paper gives special emphasis on two factors of
marketing analysis of Amazon Australia .The two factors includes nature of Amazon
Australia’s marketing strategies from the year it was established . The other factor involves
the strategic marketing operations for the growth of Amazon Australia .These marketing
operations are aimed to ensure that Amazon Australia continue their business operations
successfully for the next decade in Australia. This paper provides a detailed analysis of
Amazon Australia considering theory, research and framework.
Background of Amazon Australia
Amazon is an American organization headquartered in Seattle, Washington, which is
a state in USA. Jeff Bezos is the Chief Executive Officer and founder of Amazon .Jeff Bezos
is the major shareholder of Amazon. There are all total four shareholders of Amazon
shareholders of Amazon. Over the years, Amazon expanded its business in many parts of the
world. Presently, it is the fourth valuable company in the world behind Microsoft, Alphabet
and Apple. In the year 2017, they decided to start their retail business in Australia. The
objective behind launching their operations in Australia is to globalize their brand and to gain
a better foothold in the global markets. The office of Amazon Australia is in Melbourne, a
city in Victoria, Australia (Amazon.com.au. 2018). The centre opened by Amazon Australia
in Melbourne is spread over an area of 24,000 square metres. Because of its strategic

4MARKETING STRATEGIES OF AMAZON AUSTRALIA
positioning of location it would give access to many important highways in Australia. Then
second centre has been purchased in southwest Sydney, Australia. It will be the head office of
Amazon Australia. Mr. Rocco Braeuniger would be the manger of centre of Amazon
Australia in Sydney. He was previously associated with Amazon Germany.
Marketing analysis of Amazon Australia
Nature of Amazon Australia’s Marketing Strategies
Amazon Australia is offering a wide range of products that includes computers,
electronic gadgets and goods, clothing, stationary, books, games and various other
products. The main motive of Amazon to launch its operation in Australia is to make a
firm grip in global market and to globalize their brand (Brewster, Chung and Sparrow
2016).
After the entry of Amazon in Australia, they launched Amazon Market place. The
strategy of launching Amazon Marketplace in Australia will allow the third party retailers to
enlist the product in the website of Amazon and set their own pricing (Chen, Mislove and
Wilson 2016).To buy products from Amazon Australia one need to access their website.
To get a hold in the market in Australia, Amazon Australia is following some other
strategies as well apart from launching Amazon Marketplace. Some of the strategies are:
 Offering Lower price – Amazon Australia will be providing their products and
services at lower rates in comparison to other retail stores and e-commerce sites. They
will also provide for their customers various lucrative offer and packages.
 Benefits in Shipping – One attractive feature offered by Amazon Australia to
penetrate the Australian market is by providing free shipping to their customer

5MARKETING STRATEGIES OF AMAZON AUSTRALIA
(Becerril-Arreola, Leng and Parlar 2013). They will also provide their products in a
span of two days.
 Opportunity to sell their products –Amazon Australia is giving opportunity to the
business owners in Australia to sell their products on Amazon .This is an opportunity
for the local business owners that would like to grab it with both hands (Varley
2014). This will also provide an opportunity to the local businesses in Australia to
reach to larger audience with the help of Amazon.
 Wide range of products – Amazon is a leader in e-commerce retail
industry .Amazon Australia offer wide range of products, which can be availed from
their websites easily. They sell not only their branded products in Australia but also
sell products, which are manufactured by the local as well as international
manufacturers.
From the market research in Australia, it can be estimated that people of Australia
predicted the arrival of Amazon in Australia .The people of Australia mostly bought
electronic goods from the wide range of products offered by Amazon Australia.
Marketing options of Amazon Australia to thrive in future
According to the market analysis report, Amazon Australia is expected to become the
sixth largest retailer in Australia in the next decade. It is perceive that it would not be able to
outdo retail giants in Australia like Coles and Woolworths but it is expected that by the next
decade it will be able to beat retailers in Australia like Kmart, JB Hi-Fi and Harvey Norman
(Zhu and Liu 2016). By studying the market, it is expected that Amazon will have a major
influence on the earnings of Australian retail companies .The retail company JB Hi-Fi is
expected to affect the maximum.

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In order to become successful and thrive in the Australian market in the next decade in
Australia, Amazon Australia needs to follow certain marketing options to outpace the present
retail giants who enjoys a fair market share in Australia .Some of the marketing options are:
 Introduction of video product review – If the “video product review “ feature is
added in the Amazon Australia website it would be an unique experience for the
customers (Xu, Chen and Santhanam 2015). It would enhance the customer
experience of the customer .This feature would enable the customers give a review
which would be in more details after watching the video. This would help the future
buyers to be more aware and informed before buying a product as a result the number
of returns of products would be less. The customers will also be able to judge well
which would be the high quality product and low quality product by observing the
product video minutely.
 Better Ad targeting – Amazon Australia should improve their Ad targeting strategies
to have a better hold in the market of Australia. It is expected that, Amazon Australia
would follow using suite that includes Facebook and Google and use more advanced
approach-targeting methods, for their Sponsored product ads (Book and Wallach
2015). It would be better for Amazon Australia if they use latest technologies like
Geotargeting, Dayparting and Mobile bid differentiation to target their potential
customers (White et al. 2014). By using these features, Amazon Australia would be
able to target their ads with perfection and they will be able to earn more revenue for
Amazon Australia.
 Focusing on launch of new products – Amazon Australia, in order to become
successful in Australia for the next decade, they should innovate new electronic
devices for customers (Barringer, 2015). Products of Amazon like Amazon kindle
and Kindle Fire tablets have become very popular among the customers .They have to

7MARKETING STRATEGIES OF AMAZON AUSTRALIA
continue creating innovative products that appeal to the consumers in Australia in
order to be successful in the markets of Australia.
 More emphasis on Search optimization – Search Engine Optimization is very
important considering the Amazon’s competitive Search Engine Results Pages (Deb
2014). There are also certain other factors which would gain importance in the years
to come that includes experience of customers ,conversion rate and time on page .
Thus it is very important to put emphasis on feedback and experience of
customer .They also need to develop a feedback strategy that would aimed to target
the right customers in perfect time and also focus on getting more reviews.
 Same-Day delivery – When Amazon Australia entered the Australian market, they
ensured that the customers are receiving their ordered products within a span of two
days. This was a certainly good strategic move from Amazon Australia. However,
certain modifications can work wonders for Amazon Australia in order to get an edge
over the other competitors in Australian market, which include giant retailers like
Woolworths and Coles. Amazon Australia can ensure that the ordered products are
delivered to the customers on the same day of delivery with the help of delivery fleet
(Low et al. 2014). This would increase the variety of products that are stored in
Amazon Australia regularly.
Conclusion
After assessing and analyzing the marketing strategies of Amazon Australia it can be
concluded the primary objective of Amazon Australia to start its operations in Australia is
that, they want to penetrate the Australian market in order to get an upper hold in the global
market by expanding their business. They also want to globalize their brand so they expanded
their business operations in Australia. Amazon Australia undertook some market strategies

8MARKETING STRATEGIES OF AMAZON AUSTRALIA
after they started their operations in Australia. These marketing strategies were aimed to
penetrate the market in Australia and outpace the competitors present in the Australian
market. However in order to become successful in the Australian market in the next decade,
they need to follow some marketing options which would ensure their success in the
Australian market and make them one of the leaders in the retail market of Australia.

9MARKETING STRATEGIES OF AMAZON AUSTRALIA
References
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 19 Sep. 2018].
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Becerril-Arreola, R., Leng, M. and Parlar, M., 2013. Online retailers’ promotional pricing,
free-shipping threshold, and inventory decisions: A simulation-based analysis. European
journal of operational research, 230(2), pp.272-283.
Book, T. and Wallach, D.S., 2015. An empirical study of mobile ad targeting. arXiv preprint
arXiv:1502.06577.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Chen, L., Mislove, A. and Wilson, C., 2016, April. An empirical analysis of algorithmic
pricing on amazon marketplace. In Proceedings of the 25th International Conference on
World Wide Web (pp. 1339-1349). International World Wide Web Conferences Steering
Committee.
Deb, K., 2014. Multi-objective optimization. In Search methodologies (pp. 403-449).
Springer, Boston, MA.
Low, C., Chang, C.M., Li, R.K. and Huang, C.L., 2014. Coordination of production
scheduling and delivery problems with heterogeneous fleet. International Journal of
Production Economics, 153, pp.139-148.

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Varley, R., 2014. Retail product management: buying and merchandising. Routledge.
White, I., Caro-Bruce, T., Fazal, R. and Walker, N., Urban Mapping LLC, 2014. Generating
geographical keywords for geotargeting search engine-offered advertisements. U.S. Patent
8,825,683.
Xu, P., Chen, L. and Santhanam, R., 2015. Will video be the next generation of e-commerce
product reviews? Presentation format and the role of product type. Decision Support
Systems, 73, pp.85-96.
Zhu, F. and Liu, Q., 2016. Competing with complementors: An empirical look at Amazon.
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