MRKT 20052 Term 1 2018 - Amazon Prime Case Study Analysis

This assignment provides a comprehensive analysis of Amazon Prime's marketing strategy within the SVOD market, particularly focusing on its target audience selection of college students and young mothers. It examines the rationale behind this strategic decision, evaluates different adopter ...Read More

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................4
Answer to Question 4.................................................................................................................5
Answer to Question 5.................................................................................................................6
References..................................................................................................................................9

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Answer to Question 1
As the second mover in the SVOD market after Netflix, Amazon Prime has tried to
make a strategic decision by targeting the different college students along with the young
mothers for the Instant video product. It can be seen that the Amazon Prime includes both
men and women for the Amazon Prime video product, and the young generation is the main
target for them as the percentage of large and disproportionately accepted kind of affinity for
the technology along with internet-based shopping which is more in comparison to the other
age segments present in the market (Amazon.in, 2018).
Furthermore, Amazon Prime promotions are basically on the college students along
with new mothers in the competitive market and this is the appropriate choice for the
Amazon as they feel and it has been seen in the statistics that the percentage of the new
mothers and the young crowd are of high-frequency purchasers in the entire market. For
instance- these young generation individuals purchase different kinds of text books for
students, baby and infant necessities for the different new mothers (Baker and Saren 2016).
Additionally, there is another reason in which it has been seen by Amazon that these
customer segments are the ones who wish and they are ready in trying new things or products
which are introduced in the market.
It can be seen and surveyed by Amazon that this particular segment of individuals in
the market seeks more convenience as the major and important factor which helped the
company in valuation of the product. Furthermore, the main target of Amazon is to place
greater kind of emphasis on and desire for the ones who stay at home and it has been seen
that Amazon is trying to acquire the purchasing power which is entirely based on
convenience in the conjunction with the entire economy (Cascio et al. 2018).
Lastly, the other main reason for targeting the new mothers and the young generation
is that there are different offers which are being offered by Amazon to their prime customers
such as shipping benefits. It can be seen that there are different constraints of the college
students and this will help the customers in achieving the different services within a
reasonable range and this helps amazon Prime in targeting more customers who are the young
college students and new mothers (Lidstone and MacLennan 2017).

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Answer to Question 2
There are different categories of the adopters in respect to the consumer behaviour
which is required to be adopted by the companies which are as follows:
 Innovators are the ones which will help the company in analysing the preferences of
the customers in an appropriate manner. The consumers are classified as the main
innovators and these innovators are less innovative in nature and they are less reliant
in nature as there are different risks which are involved in the company and this will
be risk factor for the company as well (Kavaratzis, Warnaby and Ashworth 2014).
 Early adopters are the ones wherein these companies take advantage for the company
and this will have similar kind of characteristics as of the innovators. The early
adopters try to make their initial purchases and they are more or less like innovators
which has helped and assisted them in managing the differences effectively.
 Early majority: These are the different individuals who are the ones relying more on
the word of mouth and furthermore, they are tending to be more cautious in nature in
comparison to the others in the entire market.
 Late majority: These are the different consumers who are generally and usually
reluctant to change the purchase behaviours in comparison to the other competitors in
the market (Keller 2017).
 Laggards: These are the other consumers who are not as attractive target and this will
persuade their thinking in an ineffective manner.
These are the five major categories of adopters in respect to the consumer behaviour
which is required to be analysed effectively. Furthermore, Amazon needs to include one of
the adopters in their organization which will help them in managing the different kinds of
issues in an effective manner. The marketing strategy can be changed by Amazon by
analysing the preferences and the tastes of the customers in the market. Furthermore, it has
been seen and analysed that the consumer needs to adopt to the changes in an effective
manner which will increase the profitability of the company (Kotler 2015).

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Answer to Question 3
There are different other target audience that can be prove to be more beneficial as to
capture in order to gain more market share in the competitive market. The middle-aged
customers in the mass business sector like Netflix as this will help Amazon in gaining
competitive advantage in the market. Amazon Prime needs to compete with Netflix in such a
manner which will help the company in managing the differences that will increase their sales
of the company in an appropriate manner (Kavaratzis, Warnaby and Ashworth 2014).
The business sector along with the different other middle-aged group customers will
act as the word of mouth advocacy with their groups will increase the customer base of
Amazon Prime and the membership fee will be decreased in an effective manner. The
individuals who are around their 50s and they are during their early retirement age, these
individuals can be targeted by Amazon as this will help them in maintaining more market
share in the competitive industry (Melewar and Skinner 2018).
The individuals who are retiring in the age group of 50s as in the present scenario, this
has been analysed and noticed that there have been different kinds of boredom in their lives
and Amazon can take proper and accurate advantage for the same and this will improve their
profitability and sales of the company effectively. Amazon needs to focus mainly on the
unique feature of the programme which will be launched by them as this will help the
company in managing the different kinds of productivity related queries in an effective
manner.
Furthermore, Amazon Prime can help in managing the market share and gain more
market share in the future as well. Amazon needs to introduce the different kinds of shows
which are inspired from 1970s and this will help the company in managing their strong
customer base like Netflix and this will increase the market share of the company as well. It
can be seen that the Ansoff’s matrix can be applied by Amazon which will assist them in
attracting more customers and this will increase their sales of the company in an efficient
manner as well (McDonagh and Prothero 2014).

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Answer to Question 4
The main target audiences who will be targeted by Amazon and who will be
beneficial for the sales of the company are the ones who are retiring in the age of 50s in the
entire world. These individuals can help the company Amazon in managing the profitability
of the company as the company will be introducing the different programmes which will be
suiting their preferences and the subscription fees will be less in nature as well (McDaniel
2014).
Amazon needs to target these categories of the individuals for attracting them towards
viewing the shows which are being offered by them to the customers at an affordable rate.
There are different packages which are being made available by Amazon for their customers
will help the customers in managing their viewership effectively.
Furthermore, Amazon needs to analyze the different kinds of adoption style which has
been utilized by Netflix, and they can make the different changes as per the different
requirements which will help them in meeting the different changes as per the standards
which can be useful for the company in attracting the customers effectively. The early
adopters is the respectable position in the market as this category tries to depict the picture of
the innovator in the market and this provides them with a view on analyzing the strategies
which can be adopted by them to gain more popularity.
Furthermore, the adopter categories that is required to be targeted by Amazon Prime
for increasing their sales and profitability in the entire market includes the innovators as this
will help the company in innovating different technologies which will help the company in
managing their popularity in the entire market. The innovator along with early adopters are
the two kinds of adopter categories which are required to be adopted by Amazon as to
compete with Netflix in the market.
Amazon needs to maintain their reputation in the competitive market as it has been
analyzed and surveyed that Netflix is the first innovator who started the streaming of different
videos for the different age group customers and this is chargeable like Amazon, however the
price which is being charged by Netflix is higher than Amazon and this can be an advantage
for Amazon as this will help the company in managing the changes in an appropriate manner.

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Answer to Question 5
Three reasons for changing the marketing strategy by Amazon as to attract and
capture these users include the following:
Firstly, the Amazon Company has adopted the marketing strategy of early adopters
and word of mouth marketing strategy which is useful in nature. With the help of the
respective marketing strategy, Amazon will help in managing the different kinds of sales and
revenues of the company to attract more customers in the market.
Secondly, the change in the marketing strategy will help Amazon in setting
measurable goals and this will help Amazon to be more competitive in nature against Netflix
which is the major threat in the market. Furthermore, the promotional strategies are required
to be adopted by Amazon Prime as this will assist in manging the differences in an effective
manner and this will help the company in attracting more customers in the market in
comparison to the other major competitors in the market.
Thirdly, the company Amazon Prime needs to analyse the tastes and preferences of
the different customers in the market. Furthermore, Amazon needs to distribute the different
sections of the individuals in the market which will help them in managing the differences in
an effective manner and this will improve the overall profitability of the company as well.
Furthermore, there are different differences which are described as follows:
Firstly, the Amazon prime company is being able to increase the sales of the company
in an effective manner. Since the company is being able to make profit in the present
marketing strategy, this will assist the company in gaining profit in the previous technique.
Secondly, Amazon Prime Company should target only the young generation and new
mothers as this will be beneficial for the company which will help them in managing the
different kinds of activities efficiently. There is no such feasibility in the company structure
of Amazon and the change in the marketing strategy can affect the sales of the company in a
negative manner as well.
Lastly, Amazon should not change the marketing strategy as this will affect the entire
brand image of the company as the employees will never be satisfied with the requirement
which has been done by the company. Furthermore, in order to capture the users in the

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market, Amazon needs to address the different issues of the employees which will help the
company in analysing the marketing strategy effectively.

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References
Amazon.in. (2018). Amazon.in: Amazon Prime. [online] Available at:
https://www.amazon.in/gp/prime?tag=googinkenshoo-21&ascsubtag=af437d37-2fc1-41c3-
9f10-7b9d6066aeef [Accessed 17 Jul. 2018].
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Kavaratzis, M., 2017. The participatory place branding process for tourism: linking visitors
and residents through the city brand. In Tourism in the City (pp. 93-107). Springer, Cham.
Kavaratzis, M., Warnaby, G. and Ashworth, G.J. eds., 2014. Rethinking place branding:
Comprehensive brand development for cities and regions. Springer.
Keller, K.L., 2017. Managing the growth tradeoff: Challenges and opportunities in luxury
branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan,
Cham.
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry.
Routledge.
McDaniel, B.A., 2014. Entrepreneurship and Innovation: An Economic Approach: An
Economic Approach. Routledge.
McDonagh, P. and Prothero, A., 2014. Sustainability marketing research: Past, present and
future. Journal of Marketing Management, 30(11-12), pp.1186-1219.
Melewar, T.C. and Skinner, H., 2018. Territorial brand management: Beer, authenticity, and
sense of place. Journal of Business Research.