Marketing Report: Amazon India Retail Market Analysis

This marketing report offers a comprehensive analysis of Amazon's operations within the Indian retail market. It begins with an executive summary and an introduction outlining the report's objectives, followed by a detailed overview of Amazon's background, including its global presence and product offerings. The report then delves into a market description, focusing on the dynamic and competitive landscape of the Indian retail sector, highlighting key trends and challenges. A SWOT analysis is presented, evaluating Amazon's strengths, weaknesses, opportunities, and threats within this market. The findings section elaborates on the SWOT analysis, providing in-depth explanations and insights. The report concludes with strategic recommendations, including a proposal for Amazon.in to introduce consumer electronics and digital products, outlining the target market, new product descriptions, customer value proposition, and justification for the chosen strategy. References are provided to support the analysis.

Running head: MARKETING REPORT
Marketing Report: Amazon India
Name of the Student
Name of the University
Author note

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Executive summary
This paper has presented a market report of a retail company named Amazon considering the
Indian retail market and the market environment. The report has discussed and evaluated the
existing business operation of the company globally as well as within the target market along
with SWOT analysis. Amazon offers wide range of products including general merchandise
products, books, apparel, electronics, instruments, domestic equipments, tools and others
products. After the market analysis, it has been found that the ‘Amazon.in’, which is the
Indian retail operator of the Amazon.com, can incorporate Electronics and Digital product
and medicine as their new distribution chain throughout the India. For marketing mix,
Amazon should focus on the packaging and the availability of the service as well in order to
sustain in this new market. Through this strategy, Amazon can have a new way to penetrate
the existing market in India through these Electronics products and accessories.

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Table of Content
Introduction................................................................................................................................4
Background of the company......................................................................................................4
Market description.....................................................................................................................5
SWOT table................................................................................................................................7
Findings (Explanation of Swat Table).......................................................................................7
Recommendation........................................................................................................................9
Target market.........................................................................................................................9
New Product description......................................................................................................10
Customer value proposition.................................................................................................10
Justification of the choice (S-O, W-O)................................................................................11
Reference:................................................................................................................................12

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Introduction
The market report of a company defines the current market analysis, internal and
external environmental analysis of a company in order to find better solution to develop a
sustainable growth for a company. This paper has presented a market report of a retail
company named Amazon considering the Indian retail market and the market environment.
The report has discussed and evaluated the existing business operation of the company
globally as well as within the target market along with Strength, Weakness, Opportunity,
Threat (analysis) of the company. The report also researched, defined and argued a business
case study in order to choose and justify new product for the particular market.
Background of the company
Amazon.com. inc. also known as Amazon is a global retail company based on their
online retail services. It is one of the largest online retailers, which was developed initially in
America (marketline.com., 2018). Amazon offers wide range of products including general
merchandise products, books, apparel, electronics, instruments, domestic equipments, tools
and others products. Though headquarter of Amazon is situated at the Washington, the
company operates across the Europe and Asia. The main website of this company is
www.amazon.com. However, the company has individual websites for its individual
operational countries. The per the forecasted report of the company in 2016, Amazon
currently have around US$136000 million revenue that has been increased by 27% from
2015 (marketline.com., 2018). As per the report of first quarter of 2017, Amazon has
US$35,714million revenue that is a decreased result from last year. Currently the revenue is
18.4% lesser compared to the revenue structure in 2016. As per the market prediction, with

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the existing global expansion and profit margin, Amazon can make the place in top 10 most
valuable brand within 2020 (marketline.com., 2018).
Amazon basically is an online retailer that mainly works as a e-commerce site.
Amazon purchases the product from venders and the third party sellers. Apart from that, the
company also manufactures and sales the Kindle devices. The business operation of the
company is subdivided in 3 sections namely North America, International and AWS
(marketline.com., 2018). The North America and International Amazon mainly involves in
the retail business and sales as well as subscription of international website. However, AWS
segment earn revenue from compute, storage, database services for government agencies and
academic institutions. As per the report AWS has the 10% of the total revenue. Amazon has
five primary consumer groups namely customer, sellers, developers, enterprises and content
creators (Kaur and Wadera 2018). Amazon sales products through the third party vendors.
For global expansion Amazon adopt a unique strategy for low price high quality product.
Geographically, the business operation of Amazon is classified into five major segment
segments, namely the US, Germany, Japan, UK, and Rest of the World. However, among
third world countries in India Amazon has a significant market share in terms of online retail
company.
Market description
Though www.amazon.in or Amazon India is not considered as one of the major
segments of their global business, it has a significant area of market share as an online
retailer. From last 10 years, the online retail sector of India has grown significantly causing a
huge and competitive market for any retail company. The ever-expanding consumer demand
the retail market of India has become one of the most desirable retail destination in world
which has arguably the larger and broader future prospect. The modern trade market of India

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is growing 15 to 20% per annum, where the retail penetration is just 8% (Panda, Swar and
Mukerjee 2014). However, the overall economic growth and its demographic profile with
diverse population the retail market of India is attributed to high disposable incomes, growing
middle-class influence, increasing individual wealth and the huge youth population and their
demand. In 2010, organised retail in India was projected to grow to 21% by 2015 and 24% by
2020 (Panda, Swar and Mukerjee 2014).
Figure 1: Challenge and value proportion of retail market in India
Source: (Panda, Swar and Mukerjee 2014)
For marketing, the other online as well as traditional offline retail sectors use the
physical outlet, field service, web, mobile etc as the marketing tools. The intervention of
multichannel business policy of other retail companies such as Alibaba Group, Junglee,
Flipkart, Snapdeal, Ebay, Jabong has made the retail market of India more complex with high
competitiveness. Recently Walmart is trying to involve in the retail sector of India that will
be causing more saturated competition within the retail market (marketline.com., 2018). In
order to sustain in this situation the Amazon India has already introduced the ‘Amazon
Prime’ sale opportunity that offer online users or consumers to purchase from Amazon in
comparatively lower price. A survey conducted by PwC India’s Retail and Consumer
practice in August–September 2017, revealed that about 35% of Indian retailers have failed to
achieve scale on account due to the lack of a clear value proposition (Gupta and Rodriguez

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2013). There are many challenges including political, economical, legal and social that acted
as the key elements of the value proportion.
SWOT table
Strength Weakness
Largest Online Retailer in global retail
market
Recently Kindle builds sustainable position
in the E-book market
Extending product line is helping to increase
the sustainability of the market share
Technical platforms is allowing strategic
acquisitions and collaboration
Infringement Issue of patent is decreasing the
confidence level of the stakeholder.
Frequent hacking and falling of Amazon web
server and cloud computing networks are
causing operational issues
Opportunity Threat
Increasing impact of online display
advertising can influence the future
promotional prospect
Increasing demand of Cloud Computing
services can influence the online service
business
Changing global and local taxation and
merchandising regulation are causing serious
threat for future
The increasing monitory fluctuation is
increasing the risk of foreign monetary
exchange issues
Strong competitors in local and global market
can make the scope narrow

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Findings (Explanation of Swat Table)
One of the major strengths of Amazon its high revenue and international market share
that has made the company the largest online retailer in the world. Amazon currently have
around US$136000 million revenue (Kaur and Wadera 2018). Apart from that, in 2016 the
company ranked as top 20 most valuable brands in the world. As per the report of 2017,
Amazon is operating the fast-growing e-Book market globally through its e-reader device,
Kindle. As per the newest report, the online Kindle store of Amazon offers more than
2,000,000 book titles, including new released books. In the new market like India, Amazon is
successfully expanding their business through various collaboration and partnership with
offline retail service and whole sellers. From 2016, AWS of Amazon has acquired NICE,
which is one of the leading providers of software and services for high performance and
technical computing. However as per the report of 2017, Patent Infringement Issue in global
level is decreasing the confidence level of the stakeholder (Panda, Swar and Mukerjee 2014).
It also influences their existing assets and the future prospect of larger investment in new
market strategy. Another essential weakness in recent years is frequent hacking and server
attack on Amazon’s server and its cloud-computing network. These technical issues are
causing serious discrepancies in their online operation.
As per the last financial report of 2017, the AWS section of the Amazon increased its
Return On Investment by 12.6% than the last year. It shows that AWS has a good prospect in
increasing online advertisement and cloud technology based businesses. The company can
increase their revenue by uplift their advertising business through next generation advertising
and networking products and services. Like advertisement, the demand of cloud computing
services has been increasing significantly which can be act as a huge opportunity for the
AWS. After the announcement of Amazon Chime where the consumer can communicate

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though high quality video, audio and meetings efficiently, a scope of increasing the
profitability has opened. Apart from that, the online retail sale of global retail industry has
been increasing significantly through which Amazon can increase their profitability market as
well. However, the major threat of the global retail industry is the fluctuation of international
monetary value exchange that regulates the overall profitability from overseas. Apart from
that in Indian market, the new complimentary taxation system named GST created various
business dilemmas because of it distorted implementation process and entirely new policies
(marketline.com., 2018). In order to grow in Indian retail market Amazon can experience
wrong market prediction for this issue.
Recommendation
The ‘Amazon.in’, which is the Indian retail operator of the Amazon.com, can
incorporate consumer electronic product such as s CD Players, DVD and Blu-ray Players,
Recorders, Sound systems, home theatre, in-car entertainment systems, Television, Radio and
others as their new distribution chain throughout the India. Through this separate section of
Amazon.in online, consumers can purchase electronic product and digital equipments while
getting similar delivery service as other Amazon retail products. Consumers can use these
facilities in PC and smart phone by using conventional browsers or Amazon Application for
consumers.
Target market
In order to target the appropriate market segment Amazon should divide the Indian
electronics market into various segments. The digital electronics market of India is highly
influenced by the global electronic interventions and the imported products from china.

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Therefore, the market segmentation can be subdivided into three major demographical
sections focusing on age of the customer. These digital products are specifically has high
demand in teen-age level consumers and consumers of above 30 years (Panda, Swar and
Mukerjee 2014). Therefore, the selection of the products and the vendor sellers should be
align with these two segments of consumers and their personal choice of digital amusements
and accessories. The electronics and digital products tab of the website will be subdivided
into two separate sections namely electronic goods and the accessories. In accessories, the
consumers can search and find only additional equipments such as stand for soundbox or
camera, chord for connectivity, CD or DVD cleaner, Head phones, Portable chargers and
batteries.
New Product description
Through the separate section named digital electronics of Amazon.in, consumers can
order both audio-visual and utility electronics products while getting similar delivery service
as other Amazon retail products. Amazon can connect directly to the electronics
manufacturer companies to deliver a large amount of electronics products to the entire
population in a considerably low price. For the sophisticated delivery of the electronics
products, Amazon should be more careful about the price of the product and the on time
delivery system. There are many competitors in the online retail sector and delivery system in
India like flipkart, Snapdeal, Digiflip and other who provide similar kinds of product and
delivery. Therefore, the main strategy for the product would be storing and delivering the
product consuming less amount of time with efficient quality maintenance system while
enabling the effective return policies and fault detection system.

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Customer value proposition
In the rest of the part of marketing mix Amazon should focus on the packaging and
the availability of the service as well. In order to sustain in this new market Amazon should
gain the trust of the new consumer while making them happy with high product availability
(Kaur and Wadera 2018). Each and individual electronics product requires specific packaging
and transportation recommendation with respect to the weight and size. Therefore, Amazon
should abide by the type of the product and the requirements to deliver the product to the
customer in time without disrupting the brand equity.
Justification of the choice (S-O, W-O)
The online purchasing and delivery of electronics and digital products has been
introduce in late 2000 while the demand and choice of the consumers are changing rapidly
with the product variety. More that 78% of Digital electronics customer prefer the online
purchasing, where as the keep them updated about the offline market availability and price
(Kaur and Wadera 2018). At that initial stage of these services companies like Philips and
Sony digital came up with a concept where a user can order their product through official
website to get home delivery without visiting the nearest digital or electronics store. This
online electronics market is growing with the increasing amount of orders ranged between
15,000 and 20,000 in a day (marketline.com., 2018). On the other hand, Amazon can have a
new way to penetrate the existing market in India through this product.

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