Background of Amazon Australia
Amazon is the largest retail e-commerce brand of America. It has been doing business globally with its great customer base. Its annual revenue was USD 135.99 in the last year. Australian e-commerce business runs very well. Australian customers spend maximum on homeware, groceries and media. Amazon’s entry in Australia is the most significant step for their business development. E-commerce sector in Australia has achieved significant growth in last few years. Present research is based on the Marketing strategy of Amazon Australia since its expansion. The researcher will analyse Amazon’s marketing strategy in Australia.
Amazon is the ecommerce giant and it was founded in the 1994 by Jeff Bezos as bookstore. Presently it is the fourth most valuable company which is publicly traded behind the Apple, Alphabet and Microsoft. In the logo of Amazon, an arrow is pointing from the A to Z. It means they are not only selling books but everything and the arrow in the logo is like a smile (Rothaermel, 2015). It is basically known for its business services. Amazon, entered in Australia in a mission to expand its customer base. It is very difficult to mention the actual day of the Amazon’s entry in Australia but they have launched their website in Australia in the year 2012 and the main centres are Melbourne, Brisbane and Sydney. Later it has opened a Kindle store in their e-commerce platform. Presently sales of Amazon in Australia is about $1 billion through the overseas shipment. According to the research it has been identified that ten thousands customers visited the website of Amazon and it was during the launch of Amazon in Australia and the customers placed the orders in almost all 23 categories. Amazon has been capturing the Australian ecommerce market with its diverse product range.
Marketing analysis of Amazon can help to reveal their entry strategy in Australia. The researcher will analyse elaborately about the marketing strategy of Amazon Australia below:
In the present study the researcher has analysed the segmentation strategy and marketing mix of Amazon to enter in Australia.
Market segmentation strategy helps to identify the market and potentiality for the development of their business (Ritala et al. 2014). Through market segmentation strategy organisation tries to identify the growth of the product in the market along with how much the market can ensure benefit to the organisation. Amazon’s entry in Australian market is really a great threat for its competitors (Team, 2017). Research shows that Amazon uses unique segmentation strategy while entering in a new market. They usually set up the bank account first while entering the other country so that it can assure them about the payment logistic (Adhikari, 2016). Through market research and market survey Amazon has observed that Australia is the $4 billion market but now the ranking is rising tremendously due to the purchase of the Australian customers. They have targeted the 7,630,000 customers of Australia with age group 14 and above (Adhikari, 2016). They are also focused on the purchasing behaviour of the customer and their target groups are upper class and middle class people. Amazon is much focused on their vision “ to become a most customer centric organisation where customer can get all the necessary thing which they can buy online.” It has been observed that 50% of the customers of Amazon are repeat buyers.
Marketing Analysis
Marketing mix helps to identify the marketing strategy of the organisation. In Australia, Amazon has used the customer centric marketing mix strategy.
Product: Amazon is the largest international ecommerce brand and uses internet through phones and laptops to help its customers to purchase and browse products. In Australia they have tried to attract the Australians through the online Books, Kindle, Mobile Phones, DVDs, Games, Clothes, and many more. Very recent, they have released several sportswear brands like Rebel Canyon, Goodsport, and Peak Velocity etc (Cleeland, 2017). This move has challenged the Australian Wool innovation approach also.
Price: Product price of Amazon is very cheap compared to its competitors. For an example, if somebody buys book then Amazon offers new book or used book along with condition and price. Even for faster delivery they provide option of premium account. Through pricing strategy they have been able to attract the global customer’s especially Australian customers.
Place: In Australia, various ecommerce sites are closed due to the authenticity of the sites. Amazon is the international and most reliable brand. They use massive R&D effort to secure its websites not only in USA but in Australia also. They think that Australian customers are too much internet friendly and their ecommerce site can easily attract them. Thus they are able to establish as global brand.
Promotion: Amazon uses various promotional tools to advertise its products and services. They mainly use web based advertising and SEO to keep their site always on the top in the search engine. Australians are thus fascinated with the service and product range of Amazon.
Through the analysis of the marketing strategies of e-commerce companies, it has been observed that the e-commerce companies of Australia have acquired various changes within the context of the online business. In that context, it is observed that in the year 2018, a rapid changes has occurred within the e-commerce business world of Amazon that are discussed below.
In the present context, of the e-commerce business world, it can be noted that the e-commerce services of the Amazon Australian is automated with the development of the technologies. Therefore, due to the automation of the services the customers as well as the company can be able to get the positive result of the e-commerce business and that helps in case of acquiring success to the e-commerce company Amazon in the year of 2018 (Lorenzo, 2017). Furthermore, it can be noted that in case of the business of the Amazon, the customer relation management tool plays a major role as the CRM tool is the usage of the database software. It can help the company in order to gather and to optimise the relationship of the customers with the products of the company. In that context, it can be noted that through the help of the customer management tool the Amazon Australia can be able to access the management of the service programme through the detailed view of the demands of the customers. Furthermore it can be noted that in case of holding the success factors within the business context the e-commerce company of Amazon is using the CRM tool that can provide the opportunity to the e-commerce company to go through the selling process of the products on the basis of the requirements and demands of the customers (Yadav and Sagar, 2018).
Nature of Amazon Australia’s Marketing Strategy
In the last two years, the usage of social media has skyrocketed in the country which has resulted in better revenue generation for Amazon Australia as more and more people are getting involved in online shopping and social media (Sánchez-Amboage, et al. 2017). From the last year records, it has been seen that the social media usage led to nearly half of the generated data to the site, but only thirty per cent of it was converted into a sale. This makes the social media a very accessible platform.
Thus it should come as no surprise that social media has emerged as the new technique for promotion and brand strengthening of any company or organisation. Some of the social media channels through which Amazon Australia can stay more than relevant and powerful in the decade to come are Facebook, Youtube, Instagram and Twitter. At the same time, the seamless integration of social media platforms and tools are also required in the apps of Amazon to provide a more social experience while browsing products or just checking out. This would result in more user engagement and would also provide a more fulfilling experience for the users of the app. But at the same time the social media platforms mentioned are just some of the most popular ones and there are other tools and platforms as well for the purpose of brand promotion (Reilly, 2017). The social media platform can also be used for spreading across promotional messages and communications all of which can prove to be immensely profitable and help for Amazon Australia. The use of social media is not just limited to transactions of goods but the customers can also use this platform to communicate their problems and grievances with the official customer care of Amazon, thus bridging the communication gap easily.
Conclusion:
Australia is highly competitive market. Australians love to buy online products and accessories. Throughout the discussion it has been identified that Amazon is successful due to its focus on customers experience. Australia is the best market for Amazon with very ecommerce growth. It should get steady revenue.
References:
Adhikari, S. 2016. Amazon ready to pull trigger. [online] Theaustralian.com.au. Available at: https://www.theaustralian.com.au/business/technology/amazon-targets-aussie-market/news-story/ca333f66565e7c07c31d827edff2e35b [Accessed 20 Sep. 2018].
Cleeland, A. 2017. Amazon challenges AWI marketing strategy. [online] Farm Online. Available at: https://www.farmonline.com.au/story/5092238/amazon-challenges-awi-marketing-strategy [Accessed 20 Sep. 2018].
Lorenzo, L., 2017. Targeting International Customers in Japanese E-commerce: A Web Content Analysis of the Marketing Mix in Rakuten and Amazon. co. jp.
Reilly, M. and Bowman, T., 2017. The power of feeds: How to build strong underlying data to drive successful digital marketing programmes. Journal of Digital & Social Media Marketing, 5(3), pp.236-245.
Ritala, P., Golnam, A. and Wegmann, A., 2014. Coopetition-based business models: The case of Amazon. com. Industrial Marketing Management, 43(2), pp.236-249.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sánchez-Amboage, E., Mora-Jácome, V.L., Ramírez-Coronel, R.L. and Martínez-Fernández, V.A., 2017, June. Ecuador’s” four worlds” restaurants: Coast Region, Highlands, Amazon Region and the Galápagos Islands on TripAdvisor. com. In Information Systems and Technologies (CISTI), 2017 12th Iberian Conference on (pp. 1-6). IEEE.
Team, T. 2017. Here’s Why Amazon Is Expanding In Australia. [online] Forbes.com. Available at: https://www.forbes.com/sites/greatspeculations/2017/05/09/heres-why-amazon-is-expanding-in-australia/#6baf111e1043 [Accessed 20 Sep. 2018].
Yadav, N. and Sagar, M., 2018. Amazon India’s “Apni Dukaan”: branding strategy. Emerald Emerging Markets Case Studies, 8(3), pp.1-15.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
