Amazon in light of e marketing

E-MARKETING PRESENTATION

To: Dr. Asif Ali Syed

Nasreen AhmadBilal KhanAmgad SaeedYousif Elataya

Submitted By:

Click icon to add pictureThe Website’s First Look!

Flow of Presentation

What is Amazon

?Amazon Facts!

Marketing

Strategy

Marketing Mix

SWOT Analysi

s

The Road

Ahead!

What is Amazon??

What is Amazon?It is an American international electronic commerce company that started as an online book store but later it expanded and became largest online retailer.

Vision

They relentlessly focus on customer experience by offering customers low prices, convenience and a wide selection of merchandise.

The Owner! Jeffrey Preston Bezos is an

American entrepreneur and investor.

Owner and CEO of Amazon.com.

He did two bachelor of science degree in electrical engineering and computer science from prinston university

He is technology entrepreneur and played important role in the growth of Amazon.

Founded Amazon China, Bezos expeditions and blue origin.

The Company

It came online on 1995 with the original name of Cadabra inc.

It is a pure dot-com company. Its headquarter is in Seattle Wahsington, USA. It

operates in Asia, North America and Western Europe. The name was changed to Amazon because Amazon

river is the largest river in the world and beginning with the letter “a” will help the company to appear first on the search engine.

It is an international shopping website that offers wide range of products from books, music, movies to furniture, beauty products, clothing and food etc.

Amazon is ranked 29th in Fortune 500. Amazon issued its initial public offering of stock on

May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN.

The Company History Contd.

The Company History Contd. Amazon survived dot-com burst, and grew on to

become a huge player in online sales. In 1999, Time magazine named Bezos the Person

of the Year, recognizing the company's success in popularizing online shopping.

It earned its first profit in the fourth quarter of 2001 that was $5 million.

Amazon Facts!

B to C model

B2C model in which the consumer searches for a book or any product on its site and places an order.

B to B model

Amazon creates business relationships with businesses of all sizes. New and un-established businesses can start with personal accounts and then upgrade to a business account when their sales increase.

Business model: Agent Model

Online sales

Amazon’s online retail services allow businesses to

sell their products on the same platform as the

Amazon retailer, Amazon.com.

Amazon’s fulfillment program allows businesses to

store and ship their products from Amazon’s

fulfillment center.

Business model contd.

Affiliate programs

Amazon offers an affiliate program that allows businesses to earn income by advertising Amazon’s products and its online retailers.

Business model contd.

The Financials

Amazon’s revenue comes from

Online retail

Internet service

Own hardware Total revenue of amazon in 2011 was $48.1 billion

and in 2014 it was $88.9 billion.

The Customers Amazon has a vast customer base; it added 30

million new customers in 2014 bringing its total active user base to 244 million.

Partnerships Amazon enjoys partnership with a

range of companies in different sectors. Its partners are: Drugstore.com (pharmacy), Living.com

(furniture), Pets.com (pet supplies), Wineshopper.com (wines), HomeGrocer.com (groceries), Sothebys.com (auctions), Kozmo.com (urban home delivery).

Critical success factor High focus on customers

and their needs Delivery system Brand awareness Convenience First mover advantage Continuous innovation

Marketing Strategy!

The Marketing Strategy

Amazon.com bases its marketing strategies on six pillars.• It freely offers products and services.• It uses a customer-friendly interface.• It scales easily from small to large.• It exploits its affiliate’s products and

resources.• It uses existing communication systems.• It utilizes universal behaviors and

mentalities.

The Marketing Strategy contd.

Amazon.com relies on • wily online ploys• strong partner relations • constant declaration of quality to market

itself to the masses

The Marketing Strategy contd.Other Strategies:• Pay Per Click Advertising• Continual Website Improvement• Offline Advertising• Streamlined Ordering Process• The Customer’s Opinions• Email Marketing

Amazon in the light of 4Ps!

The Products and Services It offers wide range of

retail goods like baby products, consumer electronics, beauty products, groceries, health and personal-care item, industrial & scientific supplies, kitchen items, jewellery and watches.

It launched zshop service, it was a venue for people to sell things on Amazon. It is now defunct and Amazon Marketplace has taken its place.

The Products and Services contd.

Amazon market place let customers sell used books, CDs, DVDs, and other products alongside new items.

The Products and Services contd.

Amazon Prime is a paid service that gives Amazon shoppers a few distinct advantages. Members of Amazon Prime are eligible for free one- or two-day shipping on most items, among several other perks.It also added amazon prime music and amazon prime photos.

The Products and Services contd.

The Products and Services contd. Amazon Kindle is a series of e-book readers

designed and marketed by Amazon. This devices enable users to shop for, download, browse, and read e-books, newspapers, magazines and other digital media via wireless networking.

Its latest version is Kindle paperwhite 3rd generation.

The Products and Services contd. Amazon Web Services

(AWS) began offering IT infrastructure services to businesses in the form of web services -- now commonly known as cloud computing.

It can instantly spin up hundreds or thousands of servers in minutes and deliver results faster.

Other services like amazon’s new book content production, amozon prime air, amazon fresh, prime now , amazon art, amazon video, amazon games etc.

The Products and Services contd.

The Pricing StrategiesAmazon makes millions of price changes daily.

Lowest Price in the market! A recent study from

Boomerang Commerce showed that, in an effort to be perceived as a low price leader, Amazon purposefully undercuts the Walmart price on products with a high star rating. (A high rating is anything over four stars.)

Another category of products that Amazon sells cheaper than Walmart is highly visible and popular items. In other words, items that have a lot of buzz around them and are often featured on the Amazon homepage or highlighted on specific product category pages.

Items That Are Bad Buys at Amazon Amazon often raises

the prices on other products to make up the difference. These "other products" are items that are not very glamorous in nature and tend to be more "needs" than "wants."

Consumer Electronic Add-Ons If you score a great deal

on a HDTV from Amazon, beware of add-ons like cables, wall mounts, and screen cleaners, as they're typically marked-up. Other examples of add-ons that can be marked up include things like a wireless mouse when buying a laptop, and a protective case or charging station for your new Kindle. In many cases, Amazon will try to pad their profits on these add-ons making them not such a great deal for shoppers.

The Pricing Strategies contd.

Household Items Amazon has the

reputation of being up to 20% more expensive than Walmart when shopping for household items like laundry detergent, paper towels, toilet paper, and the like. While this margin is definitely getting smaller in recent years, you'll still typically end up paying more.

Clothing The problem with buying

brand name apparel from Amazon is they rarely mark down prices and seldom have coupons. You'll typically score a much better deal by shopping at discount clothing stores like TJ Maxx, Ross, and Marshalls.

The Pricing Strategies contd.

Amazon has separate retail websites for United States, United Kingdom and Ireland, France, Canada, Germany,Italy,Spain, Netherlands, Australia, Brazil, Japan, China, India and Mexico.

Place

Communication Mix

Sale in Festive SeasonSale for Special Customers!

Communication Mix contd.

Communication Mix contd.

Indian Entrance!

Ad by Leo Burnett!

• With ‘Aur Dikhao,’ conveyed the message about wide range of products

• Now it was time to get them to act and hence they launched whattasale, with the message that Amazon had the range and that they needn’t wait any longer to go ahead and shop.

• As Indians are always price conscious, they announced the three-day sale where attractive discounts were given.

Indian Entrance! Contd.

• In a bid to gain some traction on its mobile app, Amazon also shot out a clear-cut message that app user would get added benefits.

• Amazon’s ads were shot in Indian localities to ensure connect and familiarity amongst consumers. The props used in the TVCs were also very ordinary. While every ad had a television in it, none of them were modern day LEDs or smart TVs.

Indian Entrance! Contd.

SWOT Analysis

SWOT AnalysisStrengths

Weaknesses

Opportunities

Threats

Strong background and deep pockets

Customer centric Cost leadership Efficient delivery network GLOCAL strategy Acquisitions

• Shrinking margins (359 Crores $)• Tax Avoidance issue• High Debt• Product flops

• Backward Integration• Global Expansion• Acquisitions• Opening physical stores outside

U.S

• Low entry barriers of the industry• Government regulations• Local competition

Road Ahead!

Performance and way forward

Based on Amazon's current performance, it is projected that the company will have a strong growth supported by the low pricing strategy.

Amazon web service will soon become its biggest business.

It has build a large computing infrastructure to keep track of its massive online order.

Performance and way forward contd.

Unmanned air vehicle (UAV) for delivery within 30 minutes of ordering.

In March 2015 US Federal Aviation Administration (FAA) granted Amazon permission to begin US testing of prototype.

Performance and way forward contd.

References wikipedia.org NASDAQ.com Techtimes.com Forbes 500 Investopedia.com www.ukessays.co.uk Business Standard Indiantelevision.com

Questions?