Report: Marketing Strategy Analysis of Amazon Australia (MKT00720)

This report provides a comprehensive analysis of Amazon Australia's marketing strategies. It begins with an executive summary and introduction, outlining the report's purpose and scope. The background of Amazon is discussed, highlighting its e-commerce operations and expansion into Australia. The report then analyzes Amazon Australia's marketing strategies since its inception, including its entry strategy, marketing mix (product, place, promotion, and price), and customer-centric approach. It examines the competitive landscape, particularly the challenges faced by Amazon in the Australian retail market. Furthermore, the report evaluates strategic marketing options for Amazon Australia moving forward, considering consumer feedback, competitor analysis, and potential improvements in distribution and promotional strategies. The report concludes by summarizing Amazon's performance in the retail industry and recommending strategies for future success. The report is based on the assignment brief MKT00720 – Marketing Session 2, 2018. This report is a great resource for students who are looking for examples of marketing reports.

Running head: MARKETING STRATEGY OF AMAZON AUSTRALIA
MARKETING STRATEGY OF AMAZON AUSTRALIA
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY OF AMAZON AUSTRALIA
Executive Summary
The report is based on the analysis of the ways by which the expansion of a major
organization has been able to affect its competitors in the new areas. The organization which
has been considered for the analysis is Amazon. The operations of the company in Australia
is a major part of the analysis. The strategies which have been implemented by the company
in Australia is analysed in the report. The strategies which can be further applied by the
company in order to increase its revenues have also been recommended. The report has been
concluded by stating that Amazon has been able to operate in a profitable manner in the
industry with the proper help provided by the promotional activities.

2MARKETING STRATEGY OF AMAZON AUSTRALIA
Table of Contents
a. Introduction................................................................................................................3
b. Background of the organization.................................................................................3
c. Analysis of the marketing strategies..........................................................................4
i. The Nature of Amazon Australia’s Marketing Strategy or Strategies since it
began......................................................................................................................................4
ii. Strategic Marketing Options for Amazon Australia moving forward...................7
d. Conclusion..................................................................................................................8
e. References..................................................................................................................9
g. Appendices...............................................................................................................11
Appendix 1...............................................................................................................11
Appendix 2...............................................................................................................11

3MARKETING STRATEGY OF AMAZON AUSTRALIA
a. Introduction
The strategy based on marketing in an organization is related to ways by which the
company is able to plan for its forward looking and long term operations. The competitive
advantage which is thereby gained by the company in the industry is totally based on the
strategy related to marketing which has been developed. The strategic plan that has been
developed by the company is based on the initial operations. The strategy which is thereby
market oriented in nature is based on the competitive position that has been developed in the
industry in an effective way (Aghazadeh 2015).
The analysis that will be done in the report will thereby be related to the marketing
based strategy that is implemented by an organization so that it can function in a profitable
manner. The company that has been taken into consideration in the analysis is Amazon
Australia. The strategy related to marketing that has been used by Amazon in the country
from the start of its operations will be examined in the discussion.
b. Background of the organization
Amazon.com is an organization which operates in the online ecommerce related
industry and is thereby able to provide the services related to cloud computing. The
organization has its headquarters in Seattle, Washington and the founder of the company is
Jeff Bezos. The organization has been established in the year 1994. The growth of Amazon
has thereby been based on types of services and products that are offered to the consumers.
The company has shown huge amounts of growth in its revenues in the years of its operations
(Amazon.com.au 2018).
The diversification of the product line of the company can be considered to be an
important factor behind the growth that has been depicted by Amazon in the technology
based industry. The company has expanded its product offerings from only books to various

4MARKETING STRATEGY OF AMAZON AUSTRALIA
other products which include, groceries, jewellery toys, video games and electronics as well.
The organization has thereby aimed at different levels of consumers by providing the
required types of products which are lower priced in nature (Amazon.com.au 2018).
Amazon has further expanded its physical operations and warehouses in many other
countries of the world. The range of products and services which are offered by the company
are considered to be an important part of the operations of Amazon in Australia. The
strategies which have been applied by Amazon in Australia are thereby considered to be a
major part of the revenues which have been earned (Amazon.com.au 2018).
c. Analysis of the marketing strategies
i. The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began
The entry based strategy which is applied by Amazon in Australia is considered to be
two pronged in nature. The strategy is thereby based on the ways by which Amazon is able to
affect the profitability and revenues of the other companies which operate in Australia. The
competition which is faced by the retailers who operate in the Australian retail industry from
global organizations is high. Amazon has been providing effective levels of competition to
the physical retailers with the help of its online operations all over the world (Abc.net.au
2018).
The entry strategy which has been used by Amazon in different countries of the world
has been an important of the success which has been enjoyed by the company in the retail
based industry. The services and the products which have been offered to the various
customers all over the world are able to reach them through its website. The establishment of
physical stores of Amazon can thereby reduce the profitability levels of the retailers in
Australia. The marketing based strategy that is applied by Amazon in the different countries
is related to the process of differentiation (Cacciolatti and Lee 2016).

5MARKETING STRATEGY OF AMAZON AUSTRALIA
The customers are provided with highest levels of importance by Amazon which is
mainly based on the vision of the CEO, Jeff Bezos. The various offerings of Amazon can be
helpful for the company so that the prices of services and products are kept low. The
approach of the company has been customer centric in nature is implemented by Amazon in
its operations in different areas of the world. The presence and reach of the company can
thereby increase in the Australian retail industry with help of this policy which is an
important part of the vis8ion of Amazon (Coyne and Coyne 2018). The strategy related to
distribution which is used by the organization in the retail industry has played a major role in
the development of its position.
Amazon has developed a marketing mix which is developed according to the choice
and the preferences of customers in specific countries. The marketing mix of the company is
as follows,
Product – The ecommerce related organization has been offering wide range
of products to the customers in different countries of the world. The different
products that are offered by the company are useful in fulfilling the demands
and needs of the consumers. The products which are provided to the
consumers by Amazon mainly include, DVDs, books, Kindle, clothing based
items and the gaming consoles (Gummesson, Kuusela and Närvänen 2014).
Place – The organization is able to form an effective presence in different
areas of the world and the country as well. The image of the brand that has
been developed by Amazon in the industry is able to create a loyal customer
base. The online presence of the organization has been able to develop the
position in the retail industry. The physical stores of the company have further
played an important role in increasing the awareness of its products (Macarthy
2018).

6MARKETING STRATEGY OF AMAZON AUSTRALIA
Promotion – The activities that are a part of the advertising and promotion
based strategies of Amazon have provided the company with a profitable
position. Search engine marketing of the company has been implemented in
such a manner which helps in increasing the revenues. This is an important
strategy which can increase the customer base in an effective way (Key and
Czaplewski 2017). Another major promotional strategy that is implemented by
the company is based on word of mouth.
Price – The price related policy which has been developed and further
implemented by the company is related to the ways by which customers can
be attracted towards Amazon. The various premium customers of the company
are also provided with effective facilities that further increases their loyalty
levels (Olson et al. 2018).
The first store of Amazon was thereby opened in Melbourne and the organization has
started taking major steps so that the physical presence can be increased. A major part of the
strategy behind development of the physical stores is thereby based on the ways by which
Amazon is able to increase its presence in the market. The distribution based strategy that has
been applied by the company in the areas outside Melbourne is based on the ways by which
the profitability based levels can be increased (Solomon et al. 2014).
The number of jobs and levels of employment have also been increased by Amazon in
the country. This has been able to play a major role in the ways by which the company and its
operations has contributed to the Australian economy. The operations that have been
conducted by Amazon in the retail industry are however still in its early stages and the
company still needs to develop itself in an effective manner. The consumers of the company
in Australia are also not quite happy with the products that have been offered to them in the
country (Song et al. 2018).

7MARKETING STRATEGY OF AMAZON AUSTRALIA
ii. Strategic Marketing Options for Amazon Australia moving forward
The operations of Amazon Australia have not been provided a positive response by
the consumers and the retail organizations as well. The negative and adverse response which
have been provided to the company is an important part of the operations. The different
shoppers have started complaining about the products and the services that are thereby
offered by Amazon in the country. The retailers and other physical organizations are also not
happy with strategies and the operating processes of Amazon (Taoketao et al. 2018). The
pricing based strategies and selection of products have also been able to impress the
customers.
The retailers have also not provided effective levels of importance to Amazon and the
promotional activities which have been conducted by the company. The operations and
profitability of different local retailers have not been affected in a huge manner by Amazon.
The different physical stores of the company are not able to affect the services and products
that are offered by its competitors. The major competitors of Amazon in the Australian retail
industry are mainly, JB HiFi and Harvey Norman (Webalive.com.au 2018).
The company has also implemented many promotional approaches and marketing
strategies so that the revenues can be increased effectively. The strategy related to marketing
which can thereby be applied by Amazon is based on the ways by which the products and
operations can be differentiated. The product prices can be decided in a manner that can
thereby help the company in order to compete with different retailers. The effective strategy
related to distribution can also be applied by the company (Wensley 2016).
The number of warehouses of the company need to be increased in order to improve
the distribution process. The strategy can affect the services and products that are provided by
the company to its customers in the industry. The promotional strategies of the company can

8MARKETING STRATEGY OF AMAZON AUSTRALIA
thereby be able to increase the levels of awareness of the company in Australia. This can
thereby be helpful for the company so that high levels of competition can be provided to the
competitors (Wensley 2016).
d. Conclusion
The analysis in the report can be settled by affirming that Amazon is not successful in
developing its position in the retail based industry. The position that is developed by the
company in the industry is related to the marketing and promotional activities. The
organization can thereby improve its strategies in an effective way in order to compete with
the physical stores. The companies that are already operating in the industry need to be
provided with effective competition by Amazon just the way the organization has been able
to operate in other parts of the world. The distribution strategies of the company further need
to be improved in order to improve the position of Amazon in Australia. The strategy related
to distribution is thereby able to play a major role in the ways by which the company is able
to reach the customers.

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e. References
Abc.net.au 2018. Amazon unveils next phase of Australian push. [online] ABC News.
Available at: http://www.abc.net.au/news/2018-02-27/amazon-rolls-out-next-phase-of-
australian-launch/9489078 [Accessed 22 Sep. 2018].
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences,
207, pp.125-134.
Amazon.com.au 2018. Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books,
DVDs & more. [online] Amazon.com.au. Available at: https://www.amazon.com.au/
[Accessed 22 Sep. 2018].
Cacciolatti, L. and Lee, S.H., 2016. Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation, marketing
strategy and organisational power. Journal of Business Research, 69(12), pp.5597-5610.
Coyne, A. and Coyne, A. 2018. Amazon launches online store in Australia. [online] iTnews.
Available at: https://www.itnews.com.au/news/amazon-launches-online-store-in-australia-
479134 [Accessed 22 Sep. 2018].
Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), pp.228-240.
Key, T.M. and Czaplewski, A.J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business horizons, 60(3), pp.325-333.

10MARKETING STRATEGY OF AMAZON AUSTRALIA
Macarthy, A., 2018. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy
for Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R.,
2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.
Song, R., Moon, S., Chen, H.A. and Houston, M.B., 2018. When marketing strategy meets
culture: the role of culture in product evaluations. Journal of the Academy of Marketing
Science, 46(3), pp.384-402.
Taoketao, E., Feng, T., Song, Y. and Nie, Y., 2018. Does sustainability marketing strategy
achieve payback profits? A signaling theory perspective. Corporate Social Responsibility
and Environmental Management.
Webalive.com.au 2018. Australia's Ecommerce in 2018: How Amazon Challenges the Retail
Industry. [online] WebAlive. Available at: https://www.webalive.com.au/ecommerce-
australia-2018/ [Accessed 22 Sep. 2018].
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.

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g. Appendices
Appendix 1
Appendix 2