MKT00720 - A Report on the Marketing Strategies of Amazon Australia

This report evaluates the marketing strategies employed by Amazon Australia to penetrate and succeed in the Australian e-commerce market. It begins with a background of the company's entry into Australia in 2013, highlighting the 'Glocal' strategy. The report analyzes the nature of Amazon Australia’s marketing strategy, discussing traditional and non-traditional marketing approaches, and promotional activities. It addresses challenges faced due to lower internet speeds and competition from established companies. The report proposes strategic marketing options for Amazon Australia moving forward, including email marketing, video product reviews, and search engine optimization. It emphasizes the importance of expanding product offerings, improving delivery options, and introducing new products to enhance customer satisfaction and market share. The conclusion underscores Amazon's commitment to customer satisfaction and the need for effective strategies to maintain a competitive edge.

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Executive summary
In this report the emphasis will be given on evaluating the strategies which are considered by
Amazon Australia. The discussion will be based on the strategies which are adopted by the
company so that they can penetrate in the market. Also, to achieve success in the market it is
important for the company to consider marketing strategies as it help to achieve competitive
advantage. So, there are various marketing options that will be elaborated in context to Amazon
Australia.
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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
Background of the company............................................................................................................1
Marketing analysis...........................................................................................................................2
The Nature of Amazon Australia’s Marketing Strategy..............................................................2
Strategic Marketing Options for Amazon Australia moving forward.........................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................6
Appendix..........................................................................................................................................7
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Introduction
Marketing is considered as one of the important parts of the company as it assists the company to
focus on the target audience by considering the marketing activities. Marketing is a wide concept
and it takes into consideration various aspects like promotion, advertisement and also the
demand and need of the customers. It is important for the companies to focus on marketing
activities so that goals and objectives can be attained easily.
In the present era, Amazon in Australia takes into consideration various marketing strategies so
that growth can be maintained in the market. The company is considered as one of the largest
company in the e commerce sector but there are various challenges that are faced by the
company in the competitive market. The challenges are faced just because of the large
companies present in the market like Wes farmers and Woolworths. It is important for the
company to consider the marketing strategies so that growth can be attained in the competitive
market.
Background of the company
In 2013, Amazon entered into the Australian market by focusing on the strategy like Glocal.
With this strategy the company entered into the market and the aim of this strategy is to think
local and go global. With the help of this strategy it has been seen that company enhanced the
market share and also the company focused on target audience. There are various discounts and
offers which are given by the company so that it can be easy to maintain the organizational
performance. Also the company opened various centers or warehouses so that storing,
packaging and other activities can be managed in a proper manner. This has also given positive
impact on the delivery time of the company. Amazon Australia was also established in the year
1994 by Jeff Bezos (Amazon, 2018). The company entered into the market in November 2013
and also the company maintained its image in the market by considering various marketing
strategies.
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Marketing analysis
The Nature of Amazon Australia’s Marketing Strategy
It has been examined that marketing strategy is considered as long term approach that focuses on
the basic goals so that it can be easy to attain the competitive advantage. There are various
factors which are related with marketing strategy. Marketing strategy takes into consideration
various factors like demand and wants and also behavior of the customers. By focusing on these
aspects it is important for the company to consider effective strategies so that goals can be
attained in the competitive market (Price, 2016).
The company also considered the basic marketing strategy at the time if enhancing its business
activities in the other parts. Also the company considered same strategy at the time of entering
into the Australian market. The marketing strategy which is implemented by the company is
Glocal strategy that assisted the company to accomplish goals and objectives. This strategy is
beneficial for the company as it helped to consider the behavior of the customers and also the
needs of the customers can be fulfilled by considering this strategy(West, Ford and Ibrahim,
2015).
To attract customers it is essential for the company to maintain its brand image in the Australian
market. The company considered traditional and also non- traditional form like marketing and
promotion. These platforms helped the company to enhance the awareness of the customers and
also the company maintains its image in the market. There are promotional activities which has
the major role in the target market so that it can be simple to attain the competitive advantage.
The decisions which were taken by the company to enter in the Australian market were risky
because in Australia there is not much advancement in technology and usage of internet. By
emphasizing on the speed of internet it has been investigated that Australia is one of the 50th
position across the world. If focus is given on the total sales it has been seen that in the
Australian market it is 8%. In context to this the company faced various challenges in setting up
the presence in the market which also assisted to attract more talented candidates. The company
also maintained its good position in the market which created reliability in the mind of the
customers (Kim, Shin and Min, 2016).
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Strategic Marketing Options for Amazon Australia moving forward
It has been investigated that Australia is considered as the largest market in ecommerce
companies. By focusing on the last five years it has been seen that Australian ecommerce sector
has enhanced its operations by 10% and it is expected to enhance at the rate of 11.7%
(Amazon.com, 2018).
One of the reasons for the growth is related with the new online shopping companies and also
there are various payment options which are available with the customers. It can be analyzed that
if comparison is made with the e- commerce companies it has been seen that Amazon is far
behind from the companies like Coles. To maintain the competitive advantage it is necessary for
the company to focus on expanding the product offering by offering effective delivery options to
Aussies. This will also assist the company to attract more customers to towards online platform.
It has been investigated that with the fast delivery option the company has the chance to enhance
the transaction in the competitive market. This can also help to enhance the market share which
is beneficial for the company (Huo, Qi, Wang and Zhao, 2014).
By focusing of the products which are offered by the company, it has been seen that the company
should analyze the overall demand of the products and services. This will also boost the overall
performance of the company with enhancing the satisfaction level of the company. There are
various strategies which should be considered by the company in the Australian market so that
performance can be maintained.
Marketing strategies
Email marketing
This is considered as one of the promotional platform. In the Australian market it has been seen
that internet users are many so utilization of the digital marketing strategies can be a good choice
that can help to enhance the demand of the target audience. With this it can be simple to enhance
the customer base of the people (Singh,Singh and Shriwastav, 2018).
Video product review
If this feature is added in the website of the Amazon Australia it would be the best experience for
the users. It can also help the consumer to enhance their experience towards the services offered
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by the company. By considering this feature it has been seen that customers can easily review
the products by seeing the video. This can help the customers to get knowledge about the
products and services in the market and also it will reduce the number of products which are
returned back by the customers (Xu, Chen and Santhanam, 2015).
Search engine
This is also considered as the platform that can help the people to search anything by considering
yahoo and goggle. When the users search the products it can be seen that results which they will
get will be related to the products sold by the company. It will also impact the overall revenue
and also sales of the company.
The company should also emphasize on non-traditional media strategies so that it can be easy to
target the audience who are not using social platform or digital medium. It has been examined
that company is offering the range of products in the market in less price which is beneficial to
attain large market share. It has been seen that company also considered Amazon prime in the
market so that it can be easy for the customers to purchase the products (Pandit and Poojari,
2014). In this service the products are delivered to the customers in less time which has also
enhanced the overall satisfaction level of the customers. Also the company should focus on
introducing new products in the market so that demand of the customers can be fulfilled. It will
also help the company to enhance the market share in the competitive market (Becerril-Arreola,
Leng and Parlar, 2013).
Conclusion
By analyzing the entire paper it has been concluded that Amazon is considered as the largest
company in the e- commerce sector. In the recent scenario, the company is managing the
activities in more than 188 countries and also the products are delivered on the international
platform. Amazon has brought change in delivering the products to the customers. It has been
seen that the aim of the company is to enhance the satisfaction level of the customers so that
success can be achieved in the competitive market.
The company also considered various strategies in the market that can help to maintain the image
in the market. It is important for the company to focus on the strategies so that it can be easy to
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aware the customers about the services and products which are offered in the market. By
focusing on these strategies it can be simple for the company to attain success in the competitive
market. So, the company should take into consideration effective strategy to enhance the growth
in the competitive market.
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References
Amazon. 2018. Amazon in Australia [online]. Available at:
https://blog.aboutamazon.com.au/amazon-in-australia. [Accessed 20 Sep. 2018].
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 20 Sep. 2018].
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.
Huo, B., Qi, Y., Wang, Z. and Zhao, X., 2014. The impact of supply chain integration on firm
performance: The moderating role of competitive strategy. Supply Chain Management: An
International Journal, 19(4), pp.369-384.
Kim, N., Shin, S. and Min, S., 2016. Strategic marketing capability: Mobilizing technological
resources for new product advantage. Journal of Business Research, 69(12), pp.5644-5652.
Pandit, V. and Poojari, A., 2014. A study on amazon prime air for feasibility and profitability: A
graphical data analysis. IOSR Journal of Business and Management, 16(11), pp.06-11.
Price, R., 2016. Controlling routine front line service workers: an Australian retail supermarket
case. Work, employment and society, 30(6), pp.915-931.
Singh, G., Singh, H. and Shriwastav, S., 2018. Improving Email Marketing Campaign Success
Rate Using Personalization. In Advances in Analytics and Applications(pp. 77-83). Springer,
Singapore.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
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(2), pp.85-96.
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Appendix
(Source: Amazon, 2018).
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