Strategic Marketing Plan of Amazon Inc. in the Digital Age

This report provides a comprehensive analysis of Amazon Inc.'s marketing plan, focusing on the impact and utilization of digital and social media platforms for achieving business goals and expansion. It delves into the strategic development of the organization by examining its marketing plan, offering suggestions for brand development. The analysis includes a PESTEL analysis of the e-commerce industry in the Australian context, Porter's Five Forces, and a TOWS analysis to identify the company's strengths, weaknesses, opportunities, and threats. The report also outlines Amazon's marketing objectives, strategies, and promotional plans, including segmentation, targeting, and positioning approaches, along with a marketing mix and budget overview, to provide a holistic view of the company's marketing efforts and future goals. Desklib provides students access to similar solved assignments and past papers.

Running head: MARKETING PLAN OF AMAZON INCORPORATIONS
MARKETING PLAN OF AMAZON INCORPORATIONS
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Author Note

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Executive summary
This report aims to analyze and understand the impact and use of the digital and social media
platforms in achieving business goals and expansion. The growing use of digital media
platforms and social media for marketing and promotion proves the fact of its competence,
with contrast to contemporary approaches. This study looks into the strategic development of
an organisation by analyzing its marketing plan and thereby proposes a suggestion to develop
the brand. The major concern for devising a marketing plan is to provide a guideline based on
which an organisation can substantially grow with time in terms of brand value and market
share. It helps an organisation in analyzing the key factors that influence the organization’s
business. The plan has analysed the five forces that manipulate the business the environment.
it has also looked into the TOWS analysis which has analyzed the threats, opportunities,
weaknesses and strengths of the company. The marketing objectives of any organisation
should be reflected in a marketing plan and these reports has evaluated the strategies and
devised a plan that orient with the marketing goals of the Amazon Inc. The marketing plan
also helps in giving a brief overview of the budgetary allocations of the organisation to
achieve its goal. The importance of a proper lay out of the business strategies allow the
managers to understand the short comings that might arise due to internal factors. While
analyzing the internal and the external factors it gives an insight into the shortcomings of the
organisation, a proper marketing plan ensures that these short comings are identified and the
addressed in due time. The marketing plan also needs to be aligned to the future goals that the
company would want to be in a time frame.

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Table of Contents
Introduction................................................................................................................................5
Company Over view..................................................................................................................7
PESTEL Analysis of Ecommerce industry: Australian Context................................................7
Political factors:.....................................................................................................................8
Economic Factors:..................................................................................................................9
Social factors:.......................................................................................................................10
Technological Factors:.........................................................................................................10
Legal Factors:.......................................................................................................................11
Environmental Factors:........................................................................................................11
The Porters Five Forces...........................................................................................................11
Bargaining Power of Buyers:...............................................................................................12
Bargaining Power of suppliers:............................................................................................12
Threat of new entrants:.........................................................................................................12
Threat from substitutes:........................................................................................................13
Rivalry in the industry:.........................................................................................................13
TOWS analysis of Amazon:.....................................................................................................14
The Threats and Weaknesses:..............................................................................................14
Strengths and opportunities:.................................................................................................15
Marketing Objectives of Amazon Inc......................................................................................16
Specific:................................................................................................................................16
Measurable:..........................................................................................................................17
Attainable:............................................................................................................................17

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Realistic:...............................................................................................................................17
Time bound:.........................................................................................................................18
Marketing plan.........................................................................................................................18
STP approach.......................................................................................................................19
The segmentation of Amazon:.........................................................................................19
Targeting of the market:...................................................................................................19
Positioning of the product:...............................................................................................20
Marketing Mix of Amazon:.................................................................................................20
Promotional Plan......................................................................................................................22
Schedule:..............................................................................................................................22
Timings:...............................................................................................................................22
Campaigning:.......................................................................................................................22
Promotional Tools:...............................................................................................................23
The Pull technique:..............................................................................................................23
Marketing Budget:...............................................................................................................23
Conclusion:..............................................................................................................................24
References:...............................................................................................................................26

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Introduction
The potentiality and competence of the virtual world has made it an inevitable tool to
transform human lives. The capacity of approach attained by any mass medium cannot be
undermined. The digital media being the most potent, effective and massive in its capability
to outreach and perform, has surpassed all other forms of physical promotion. This study
involves in analyzing the effectiveness of these platforms in shaping the business enterprise.
of Amazon Inc. The ecommerce giant has been chosen as the case, due to its extensive use of
the digital domain to handle its operations and business. In fact, the inception of Amazon lied
in the usage of these mediums as instruments of business. It has to be understood that
marketing does not only involve increasing sales, it is more about delivering business value
for the consumer and creating an environment of sustainable growth that credits customer
satisfaction and customer faith as an asset of the organisation. An integrated marketing
strategy creates opportunities across various aspects that govern the business success of a
firm. These include strategies that amalgamate customer advocacy, employee satisfaction and
engagement. The motive of a strategic planning is to create a long term growth plan that adds
substantial value to the company over a time frame (Marcelo Torres et al. 2014). A proper
strategic planning will involve the external and internal stake holders, the strategic targeting
of customers, analyzing data that reflects consumer behaviour, customer psychology and
orientation and the data that reflects the consumer behaviour of the market over the
company’s services and products (Sarbah and Otu-Nyarko 2014). These data driven analysis
allows the organisations a greater scope to understand the needs of the market and thereby
expand their strategies and plans accordingly. Promotional strategies are required to be
holistic in their approach to sustain the market competition and earn an edge over the other
players in the industry. The report will discuss the various aspects as mentioned through a
detailed review and will critically assess the failures and the successes of the organisation and
the strategies that should be undertaken to achieve a set of goals in the future.

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The success of Amazon itself proves the resourcefulness of the digital platform. With
the advent of newer avenues in the sectors of business, the nature of business plans and
strategies have changed with time. Business organisations are utilizing the potential of the
digital medium to maximize their market reach and generate ways to develop growth in a
comprehensive manner. The report will be subdivided into several sections that will analyse
the organisation, the PESTEL factors, the Five forces of Porter, the TOWS identifying the
strengths and weaknesses, opportunities and threats to understand the current scenario of the
organisation. The necessity of a strategic marketing is to understand the critical issues that
influence the business processes in an organisation. The strategic marketing revolves around
issues that are of high concern and in the profitable interest of a company. The necessity for
strategic planning is due to the fact that wrong strategies back fire and hamper the growth of
a company to an extent that dampens the brand image of the organisation and reduces market
presences and eventually reflects in financial losses taking a toll in the overall growth of the
company. the promotional strategies of a company decide the brand image of the company
and the way a company promotes its products and services decides the amount of market
reach that can be achieved by it. The marketing strategy of Amazon is completely different
and is based on the virtual spaces across several digital platforms. It has been observed in a
study by Pricewaterhouse Coopers that online marketing strategies will account for 51% of
total marketing and advertising expenses of organisations by 2019.
Amazon Incorporations is currently the largest online retailer. Amazon is one of the
founding members of the e- commerce industry and holds a major share in the online
retailing. The company has developed a completely new genre of marketing approach based
on a platform that is virtual in nature and contradicts traditional methods of marketing and
promotes all its services and products in their virtual spaces. Being the largest company in
online shopping, Amazon provides a wide variety of products, ranging from pediatric
products to scientific equipments. It has services in grocery, electronics, apparel and clothing,
beauty products and cosmetics, jewelry and personal care items. It also expands it services in

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the health sector providing alternative medicines and drugs. It also caters to sport gears and
accessories. The major services include electronic media, e-books, paperbacks, and electronic
audio and video devices. It also provides entertainment services on the digital platform, and
devices of entertainment. A summation of the products and services provided by Amazon
will be analysed in the company overview.
Company Over view
The concerned organisation is Amazon Incorporations based out of the United States
of America. It was incorporated as an organisation on the 5th day of July, 1994. The company
mission and goal include three major objectives which can be summarized as thus:
 To attain worldwide reach
 Priority to customers
 Providing the widest range of products and services.
In order to achieve its worldwide reach the organisation has plans to expand its operation
across all the continents of the globe.The Amazon Inc. has ambitious plan to expand its
business in the Asia-pacific region including Australian subcontinent.The PESTEL analysis
will analyse the Australian context for Amazon in the given scenario.
PESTEL Analysis of Ecommerce industry: Australian Context
The PESTEL analysis is a critical review of a set of factors that determine the external
factors that manipulate a firm’s business growth or potential. In order to understand the
context of Amazon we have to understand the industry they are involved in and understand
the factors that influences the business environment in the region.We will analyse the
political, the economic, the social, the technological, the legal and the environmental factors
in the Australian context for the ecommerce industry the way it would create an affect
Amazon in expanding their business in the region.

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Political factors:
The political factors include the political environment of the region, the labour laws, the
industry standards, the political regulations and sanctions prevalent in the country and the
regulative measures that are in practice and are detrimental for an industry. The industry
standards and operational practices should be in tune with the political agenda of the
concerned country which would allow smooth functioning of business in the country.
Australia has political stability and favours business growth from the perspectives of ease of
doing business and having economic freedom. According to the Australian Trade and
Investment Commission, Australia offers a robust regulatory system with competent banking
and finance solutions. The political factor would be suitable for Amazon to expand its
business in Australia. The international business ties with the government have been decent
and encouraging. There is stable political environment among the various political entities
and which improve cooperation fostering growth of business (Business.gov.au 2018).

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Economic Factors:
The economic situation of Australia is very stable and global reports produced by the World
Bank and Wall Street journals confirm the same. It has been ranked15th among 190
economies for ease of doing business (Business 2014) and holds the 5th position in terms of
economic freedom. (Austrade.gov.au 2018). According to the Australian Bench Mark report,
the country offers the key reasons for investing in their country and claims that Australia has
a robust economy with dynamic industries amalgamated with innovation and skills. Australia
has global ties and strong foundations necessary for a business to expand. The report below
provides information about the economic stability of the country.
The table beside gives an insight
about the key economic indicators
and reflects the ease of doing
business in Australia. Australia is
ranked 15th among 190 economies
in terms of business environment.
The graph beside reflects the rank of Australia in terms of economic freedom which increases
the possibility of investing in a foreign
location. Depending on these reports we
can infer
that the economic factors are on the
positive end for Amazon.
Table:1 Global rank for Ease of Doing Business
Graph:1 Economic Freedom

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Social factors:
Australia is culturally diverse and has a stable population. The literacy rate of
Australia is 92% (Australia.gov.au 2018) among young age groups and adult literacy rates are
also high. The country has diversity in the work place making it a potential for any
organisation to set up their enterprises. The population being mix of various ethnicities allows
variety of choices among the consumers. This diverse social environment would foster the
growth of Amazon Inc. in the country. The high literacy rate proves that there are competent
human resources who would be useful in managing business in Australia and also encourage
the business of Amazon in the country. The millennial generation comprises a large share of
the demography being the most potent customers for Amazon. The adult age groups are also
potential customers for Amazon. The people are technically equipped and are also financially
robust which provides good grounds for Amazon to expand business in the region.
Technological Factors:
The technological factors include the various technological up gradations that
influence the business environments. Amazon has a strong technological foundation relating
to their nature of business. The use of the digital platforms in expanding business and for
promotions is being adopted by all firms in the current scenario and Amazon is the pioneer in
harnessing the potential of the digital space in creating business opportunities. The
technological advancements in the virtual spaces have brought the digital platforms in
cellular formats. The developments of mobile applications have a recent development that
has come with technological advancements. The applications are required for smart phones
that are designed to use several platforms in the form of applications. Amazon has upgraded
them technically with all necessary requirements to stay competitive in the market. Since
Amazon is based in the industry that is governed by technology, continuous up gradations are
required with time to be relevant in their industry.

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Legal Factors:
The legal framework of the country is robust and has stringent laws to address corrupt
practices. The country has data safety laws and intellectual property laws in their legal
framework which will boost the growth of ecommerce in the environment.The Australian
Consumer Laws provide a framework to support consumers availing ecommerce facilities.
The Competition and Consumer Act 2010 ensure fair trading practices in Australia. Thus it
can be inferred that the Australia has a fair practice environment for business and Amazon
Inc. would find it reasonable to expand its operation in Australia.
Environmental Factors:
The environmental factors would not create much of a difference for Amazon since
their concerned industry is mostly digital. Environmental factors include those issues that
might affect the nature of operation and business of an organisation. The nature of business of
Amazonhas lesser environmental impacts and therefore it would not be a problem for
expanding business operations in Australia.
The Porters Five Forces
The Porte’s Five Forces are analytical factors that determine the extent of competition
faced by any organisation in terms of doing business. The five Forces help to identify the
level of competition that is prevalent in the market and the chance of survival in the market
owing to a set of five individual factors. These are identified as
 Bargaining power of Buyers
 Bargaining power of Suppliers
 Threat of New Entrants
 Threat of substitute products
 Rivalry in the industry

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The Five forces analysis of Amazon will help us to understand the expansion of Amazon in
Australia depending on these individual characters.
Bargaining Power of Buyers:
The bargaining power of buyers of Amazon can be considered as medium to high.
Initially the bargaining power of Amazon was not that higher, but with growing competitions
the power has increased substantially. The growing number of options for the consumers in
the E-retail sectors has increased the power of the buyers. The chances of switching are
comparatively high if there is even a slightest issue of dissatisfaction and service. Being
mostly dependent on service the customers tend o choose other options with better customer
service and satisfaction. Amazon being the pioneer of the industry maintains high standards
of quality and service. This gives them a competitive edge, yet doesn’t allow them to have
complete monopoly. The bargaining power shifts from comparatively higher to medium
differing from situation to situation. Depending on the service and product being consumed or
used, the power of buyer changes.
Bargaining Power of suppliers:
The bargaining powers of the suppliers of Amazon vary from being low to moderate
in the industry. The scope of the suppliers to bargain is comparatively low since the industry
is dictated by the e commerce organisations which have high industry standards and have
multiple options available to switch. The suppliers also want to be associated with the
ecommerce giants due to their market reach and customer base. The bargaining power
therefore is not controlled much by the suppliers and has very low to moderate power
depending on the goods and services they offer.
Threat of new entrants:
The threat of new entrants is moderate for the Ecommerce industry. The investment
and resources required to compete with the existing players is comparatively huge which
lowers the threat from new entrants. Being a service oriented industry the running cost is