Level 7 Strategic Marketing Plan: Amazon's Business Strategies

This report provides a comprehensive marketing plan for Amazon, encompassing a PESTLE analysis to understand the political, economic, social, technological, legal, and environmental factors influencing the company. It includes a SWOT analysis to identify Amazon's strengths, weaknesses, opportunities, and threats, along with a stakeholder analysis to assess the interests of customers, employees, and communities. The report develops SMART strategic objectives, discusses market segmentation and brand positioning, and analyzes the marketing mix, including pricing, promotional, and distribution strategies for Amazon's products. The analysis considers the competitive landscape, internal capabilities, and external market forces to provide a strategic overview of Amazon's marketing efforts. The report also highlights the significance of the marketing mix for the organization.

Running Head: MARKETING PLAN FOR AMAZON
Marketing plan for Amazon
Name of the Student
Name of the University
Author’s Note

1MARKETING PLAN FOR AMAZON
Executive Summary
The sole purpose of undertaking this report is to understand the dynamic nature in which the
Amazon is facing various key marketing challenges. This report also intends to carry out
internal as well as external business environment in order to understand the key challenges
that is being faced by the firm.
The various analysis undertaken are PESTEL analysis, SWOT analysis, and SMART
analysis. Besides, this report intend to discuss in brief regarding the various segments of the
market. Moreover, the paper intends to outlays the “Brand-Positioning” strategy for the
specific selected target market. On the other hand, this report intends to bring out the
“Marketing-Mix” strategy that would be suitable for the concerning firm. The paper also
intends to bring out the pricing strategy that has been undertaken by the firm, along with the
promotional strategy that the firm undertakes. The firm also undertakes distribution strategy
which will be discussed within this report. The paper aims to bring out the marketing traits
that is suitable for the concerning firm “Amazon”.

2MARKETING PLAN FOR AMAZON
What are the various favourable factors along with that of the unfavourable factors are well
elaborated within this report. Besides, there within the report much of the things are being
elaborated with regard to the marketing criteria of the concerning firm “Amazon”. The
market is positive for the brand as the brand has been successful for a longer period of time.
The brand has a huge market share in spite of the huge number of competitors. The brand
introduces an innovative product on a periodic basis. This makes the brand a positive unit.
Besides, the interest of the consumer keeps on increasing with the further expectation that
much more innovation will be seen. The change in the technological changes has brought
about a huge change within the consumer market and the business practices. Because of the
innovation within the latest technologies, efficiency has increased to huge extent. Cybercrime
rates have increased a lot. The stakeholder’s interest is a fair price, the convenience of service
and that of online security in undertaking transaction with the company. The company make
use of advanced IT platform that ensures the security of the payments that is being made.

3MARKETING PLAN FOR AMAZON
Also, to ensure efficient purchase and delivery system. The sole purpose of undertaking this
report is to understand the challenges that are being faced by the concerning firm. Besides,
the strategies that are being undertaken by the concerning firm to identify the areas of default.
The firm has been taking a number of steps to overcome the key challenges that are being
faced by the concerning business firm. Amazon CSR activity is the highest priority that they
give towards the employees. They aim to achieve their satisfaction and maintain a positive
long-term relationship in order to grow the industry to the heights. It is because of the
revenue that they receive from the customer base for which they are given immense priority.
The stakeholder’s interest is a fair price, the convenience of service and that of online
security in undertaking transaction with the company.

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Table of Contents
1. A section in which you perform a PESTLE analysis and your organisation.........................3
2. A section with SWOT analysis, and stakeholder analysis of your organisation....................5
3. A section in which you should develop SMART strategic objectives for the organisation.11
4. A section concerning the market segment. This section should,.........................................14
a. Discuss how market segments could be used for the organisation..................................14
b. Select one or more market segment(s), justifying your decision.....................................15
c. Propose, and justify a “brand positioning” for the targeted market segment...................16
5. A section concerning the marketing mix. This section should,...........................................16
A. analyse the significance of the marketing mix for the organisation................................16
B. contain a pricing, promotional, and distribution strategy for one of its products...........18
Pricing strategy:...............................................................................................................18
Promotional strategy:.......................................................................................................19
Distribution strategy:........................................................................................................19
References................................................................................................................................21

5MARKETING PLAN FOR AMAZON
1. A section in which you perform a PESTLE analysis and your organisation.
POLITICAL
- Government support the structure of
the e-commerce platform.
- There are positive efforts that are
being made by the government body
towards the cyber-security threat.
- The corruption that takes place in the
economy creates a barrier for the
firm.
- Change within the import and export
policies that are being formulated by
the government body (Mullins et al.,
2009).
ECONOMICAL
- The market stability of the
developing economy, such as that of
the U.S. and European countries.
- The economic reforms that keep on
changing with the pace of time.
- Within developing countries,
disposal incomes have increased a
lot.
- The economic conditions of the
economy, such as inflation or
depression.

6MARKETING PLAN FOR AMAZON
SOCIAL
- The difference between wealth
generation and distribution.
- Consumerism, within the developing
countries, has increased to a huge
extent (Mullins et al., 2009).
- The change in the consumer taste
and preference, the bulk of the
consumer market has shifted
towards the online e-commerce
platform.
- The firm makes use of the “laissez
free” leadership style. The firm
believes that each of the voice
should be heard so that a better
business perspective can be
achieved.
TECHNOLOGICAL
- The change in the technological
changes has brought about a huge
change within the consumer market
and the business practices.
- Because of the innovation within the
latest technologies, efficiency has
increased to huge extent.
- Cybercrime rates have increased a
lot.

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LEGAL
- The brand has shown a huge interest
in sustainability programmes.
- The brand has also contributed to
business sustainability.
- The brand has made a number of
commitments to enhance its
productions to reduce the extent of
carbon emissions (Mullins et al.,
2009).
ENVIRONMENTAL
- The company has taken part in
multiple CSR programmes.
- Amazon has taken a number of
measures towards sustainable
packaging, waste reduction, and
renewable energy.
- The firm is making the most of
renewable sources of energy
wherever it may be possible in the
production stage to contribute
towards the CSR programmes.
2. A section with SWOT analysis, and stakeholder analysis of your organisation.
SWOT analysis of the organisation,
- Amazon is having huge brand
presence and brand equity within the

8MARKETING PLAN FOR AMAZON
STRENGTH
consumer market.
- The brand has its root within the
international boundary as well.
Thus, this helps the firm to sustain
its position within the rival market.
Their business in diversified areas
enables the firm to obtain their
business cycle irrespective of failure
in one specific areas.
- The market is positive for the brand
as the brand has been successful for
a longer period of time.
- The brand has a huge market share
in spite of the huge number of
competitors (Palmer et al., 2009).
- The brand introduces an innovative
product on a periodic basis. This
makes the brand a positive unit.
Besides, the interest of the consumer
keeps on increasing with the further
expectation that much more
innovation will be seen.
- The brand is having a number of
rival firms.
- The brand is facing a number of

9MARKETING PLAN FOR AMAZON
WEAKNESS difficulties in terms of shipment
such that, imports and exports of the
orders get hampered because of the
changes in the policies in regard to
the shipment activity.
- The brand is serving free shipping
facility such that the profit margin
may get hampered if any
uncertainties take place (Palmer et
al., 2009). Hence, it might not be
able to optimise its costs because of
this specific strategy.
- Some of the professional marketing
experts claim that the brand operates
on a zero margin business model
that has an adverse effect upon the
profitability. Although the company
has been successful in generating
huge profits and earnings.
OPPORTUNITIES
- There are a number of opportunities
for the firm if they intend to make
use of the vertical marketing system
(VMS).
- If the firm makes use of their local
logistics body, then there lies huge

10MARKETING PLAN FOR AMAZON
business prospects for their firm as
much of the cost that is being
undertaken because of the third party
bodies will be minimised.
- By making use of the online
payment channel, the firm avails
convenience to the consumer. On the
other hand, it makes the consumer
secure in terms of payment transfer
as they can track down the status of
their transactions.
- Besides, having an online presence,
the brands also maintain a physical
store which is addressed as
“Amazon Go”, that is located within
the 11 distinct regions of the
country. It serves Seattle Chicago,
San Francisco, and New-York City
(Palmer et al., 2009).
- There is an immense threat to the
online database platform. Such that
data in regard to the consumer data
can be breached, and get into the
hands of the individuals who may
use it for their personal use or cause

11MARKETING PLAN FOR AMAZON
THREATS harm to the reputation of others.
- The company make use of the
“Aggressive Pricing” strategy such
that the firm has to face several
lawsuits from that of the publishers
and rivals within the retail industry.
- In the pursuit of global strategy,
Amazon cannot ignore the global
market strategy of the rival firms.
This strategy helps the firm to gain a
competitive advantage over the other
rival business firms.
A stakeholder analysis of the organisation,
CUSTOMERS
- Amazon CSR activity is the highest
priority that they give towards the
employees. They aim to achieve
their satisfaction and maintain a
positive long-term relationship in
order to grow the industry to the
heights. It is because of the revenue
that they receive from the customer
base for which they are given
immense priority.
- The stakeholder’s interest is a fair

12MARKETING PLAN FOR AMAZON
price, the convenience of service and
that of online security in undertaking
transaction with the company.
- The company make use of advanced
IT platform that ensures the security
of the payments that is being made.
Also to ensure efficient purchase and
delivery system (Winer et al., 2010).
- The fair pricing strategy is being
maintained by means of rival
competition that takes place within
the sellers on the company’s online
retail website, and by means of the
market-based pricing strategy.
EMPLOYEES
- The organisation lays huge focus
upon the internal employees of the
organisation such that the entire and
each of the employees is given
priority by listening to their voices,
and invites them to participate
jointly within the decision making
the process.
- On the other hand, it is the Jeff-
Bezos who believes that dividing the
entire team into small groups will

13MARKETING PLAN FOR AMAZON
enable the firm to contribute
efficiently, will eliminate any chaos
among the internal peer groups.
- Amazon makes sure that the interest
of the various stakeholders is
achieved by means of leadership
development, and an appropriate
compensation policy. This is based
upon the organization’s high growth
potential.
COMMUNITIES
- Amazon participate within the CSR
programmes; this helps the firm to
gain a positive image in the eye of
the consumer market.
- Amazon makes use of its primary
support arm, “Amazon Smile”. The
interest of the community is being
given priority by means of
education, development support,
health-care, and environmental
conservation (Winer et al., 2010).
3. A section in which you should develop SMART strategic objectives for the
organisation.
- There is a need for the firm to make
use of the physical store's presence

14MARKETING PLAN FOR AMAZON
SIMPLE
in order to avail opportunities for the
citizens that lacks knowledge in
regard to the e-commerce platform.
- In spite of the physical stores such as
the “Amazon Go”. These stores are
very limited such that there is a need
for more number of physical stores.
This will help the firm to gain the
market share in terms of the citizens
who lack or is not comfortable with
e-commerce shopping.
MEASURABLE
- In order to achieve the result with
the aim of gaining the above
mentioned specific criteria’s. The
firm can undertake a survey
programme to measure the feedback
and to obtain an estimation as of
what would be the success rate for
the physical store outlets.
- The use of the statistical metric will
be undertaken in order to measure
the result. The statistical measure
will be undertaken for the
comparison of the obtained reports
in order to identify the area of the

15MARKETING PLAN FOR AMAZON
gap that exists (bbc.co.uk, 2019).
ACHIEVABLE
- The use of the focus group can also
be undertaken in order to closely
watch the consumer’s behaviour
concerning the physical stores.
- The use of the professional
marketing and production manager
experts will be undertaken in order
to understand the dynamic
perspective of the consumers and to
understand the consumption pattern
and expectation of the consumer
market from the concerning brand.
REALISTIC
- By making use of the focus group,
and that of the professional experts,
the firm will get to know the gap
areas that are not been identified by
the brand previously. Besides, it will
also avail the brand to measure the
consumer expectations with that of
their projected estimations. This will
enable the brand to lead the business
operations in the right path of the
track (bbc.co.uk, 2019).
- In order to obtain the feedback of the

16MARKETING PLAN FOR AMAZON
TIME-BOUND
consumers, the time assigned for
these criteria would be for 1 week
and that too for the selected areas.
- The focus group will be present
within the physical stores and will
undertake the observed activity for a
time of 1 month.
- However, the data comparison will
be carried on for a longer time span.
4. A section concerning the market segment. This section should,
a. Discuss how market segments could be used for the organisation.
Since the brand is availing a number of commodities in order to target the broad
range of the consumer database. There is a need to diversify the entire consumer market
based on consumer traits. However, the entire market segmentation can be carried out using
Geographic, Demographic, Behavioural, and Psychographic.
GEOGRAPHIC
- In terms of the region basis, it has a
presence over more than 100
countries.
- In terms of density, Urban, and
Rural.
- In terms of age traits, their consumer
ranges from the age group of 18 and
older.
- In terms of the demographic traits,

17MARKETING PLAN FOR AMAZON
DEMOGRAPHIC
they target Males & Females.
- The household sector, Youngsters,
Business class, and professional
sectors are being targeted. They have
a diversified pool of product
offerings.
BEHAVIOURAL
- In terms of the degree of loyalty,
there exists “Hard Loyal, Soft Loyal,
and Switchers”.
- In terms of the benefits criteria,
users get a widest and broad range of
products, along with convenient
online purchasing, and competitive
pricing (direct.gov.uk/, 2019).
- In terms of personality, users are
easy going, ambitious, and
determined.
- In terms of the user’s status, there
are non-users, potential users, new
users, as well as ex-users of the
product.
- In terms of the social class traits,
there exists lower class, middle
class, upper class, and that of the
working class.

18MARKETING PLAN FOR AMAZON
PSYCHOGRAPHIC - In terms of the lifestyle, there exists
Resigned, Struggler, Mainstreamer,
Aspirer, Succeeder, and Explorer
Reformer.
b. Select one or more market segment(s), justifying your decision.
One of the targeted markets would be the household sector that mainly comprises of
the senior citizens of the country. The objective is to gain their interest and attention in order
to push the household products into the home of the consumers by means of pushing strategy.
The increase in the physical outlets will avail the firm to gain a major proportion of the
market share. This physical outlets beside will gain the hope of the consumer market that
there exists a physical outlet that will take care of the consumer query if any. Moreover, these
outlets will also help in addressing the consumption related queries if any faced by the
consumer market. This way, it helps in gaining the attention of the consumers.
c. Propose, and justify a “brand positioning” for the targeted market segment.
In order to position the product offering within the target market, the use of the
discount, and coupon scheme will be undertaken. This will help in gaining the interest of the
consumers. Besides, they will completely shift from the rival market and will be a loyal
consumer segment for the brand “Amazon”. The use of loyalty programmes will be
undertaken. This will be done to sustain the presence of loyal consumers (businessballs.com,
2019). The use of the time-frame should be used to make the consumer attracted towards the
promotional offer. This time frame is required to be changed on a frequent basis and should
be limited such that consumer is prone towards the product offerings.

19MARKETING PLAN FOR AMAZON
5. A section concerning the marketing mix. This section should,
A. analyse the significance of the marketing mix for the organisation.
The marketing mix strategy enables the firm to understand its business undertakings
concerning the product, place, price, and promotion strategy. This enables the firm to push its
product into the consumer market.
PRODUCT
- This is concerned with the nature of
the product and the broad range of
the products that will be the means
of trading activity for the firm.
- The product ranges from that of the
consumer goods to the household
goods, and that of the professional
commodities.
- It is the product design and the
labelling that enumerates the
necessary details in regard to the
product (marketingpower.com,
2019).
PLACE
- It is the choice of the market. The
chosen market where the brand plans
to introduce its product offerings.
- The manner in which the distribution
will be undertaken is another factor
which takes place in this segment.
- Identification of the areas where

20MARKETING PLAN FOR AMAZON
there is a demand for the specific
products is being determined under
this specific criteria.
PRICE
- It is one of the primary means and
serves as the principal means for
which the business operates.
- However, deciding the pricing
structure requires a lot of analysis
and market study. This is the phase,
where it is being carried on.
PROMOTION
- It is composed of the medium of the
channel through which the brand
aims to promote its product offerings
and services.
- The message (Slogan) that will
address the product offering is being
elaborated within this aspect.
- The kind of promotional medium to
be used such as the internet medium,
printing medium, or the other any
mode of a medium entirely depends
upon the market analysis and the
nature of the product, and the
consumer base-reaching ability
(marketingpower.com, 2019).

21MARKETING PLAN FOR AMAZON
Hence, it is one of the analysis and
predictive tool that is carried out in
this phase.
B. contain a pricing, promotional and distribution strategy for one of its products.
Pricing strategy:
Speaking in terms of the pricing strategy, the firm should make use of the price
skimming strategy. As this will help the firm to address the positive state of growth, and
rising economy. Price skimming strategy will also help the firm to generate its market share
among the vast proportion of the consumers, by forming up and building its own brand
equity. Besides, the use of the re-pricing strategy will be undertaken. This will be done in
order to reduce the extent of the competition. The use of automated re-pricing tools such as
that of the “Re-pricer Express” can be undertaken to automate the process and reduce manual
labour work.
Promotional strategy:
The promotional strategy of the firm would be to make use of the internet marketing
platform such as that of the “Digital Marketing” platform as in today’s generation each and
every individual has at least one social network account. By making use of the digital
marketing platform, it will enable the market to promote its products offerings in different
geographical areas within the same moment. On the other hand, the use of the printing as well
as a graphical medium, will be undertaken (marketingpower.com, 2019). Graphical medium
such as animation as this will enable the firm to entice the interest of the consumer market.
The use of the celebrity or any well professional personality is to be undertaken in advertising
activity as this will enable the firm to push its product offerings and gain a pool of prospects.

22MARKETING PLAN FOR AMAZON
Distribution strategy:
The distribution strategy would comprise of the local distributors, as the local
distributors are professionals in understanding the certain areas as of which would be the
quickest and safest means of transport and the cost-saving one. On the other hand, the use of
the local distributors will be undertaken as this is an e-commerce business; the same
commodity may be available within the consumer place. Therefore, instead of shipping the
items to the desired area the cost can be saved by availing the product to the end user by
transferring the goods that are available in the same area to the end user for consumption
(businessballs.com, 2019). The below-mentioned strategy can be undertaken for more
convenience business point; it is as follows,
Figure: Distribution strategy
Source: (Marketing91.com, 2019)
The indirect investment channel is to be followed, as the majority of the areas is not
possible to be served without the help of the indirect channels of distributions. However, the

23MARKETING PLAN FOR AMAZON
use of the direct channel of distribution will also be undertaken as the major proportion of the
consumers seeks for fast delivery that too at zero delivery charges (businessballs.com, 2019).
Thus keeping in account the interest of the consumer market, the use of the direct channel
will be undertaken to obtain the satisfaction of the consumers wherever it may be possible.

24MARKETING PLAN FOR AMAZON
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25MARKETING PLAN FOR AMAZON
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