A Study about remarketing to consumers abandoning carts at e-commerce sites with

respect to women in Pune city

Reference – Amazon

(Target Group- Women’s in Pune)

Objectives –

1- To find out that what makes them to buy?

2- To find out that how women shopper completing the purchase process when shopping
online?

3- To find that what type of remarketing helps women to completing the purchase?

4- To know why women shopper abandoned a few products in the cart entirely?

5- To know how to remarket to such women shoppers so that they don't abandoned.

Questionnaire Framing & Research data source.

1- Target respondents are women lives in Pune.

2- Methods use for reaching target respondents is Social media, Google forms, Telephonic
interviews.

3- Question content is like open ended question and objectives type questions.

BCG Matrix of Amazon

When the management wants to examine its product portfolio and differentiate between
cost-effective and unprofitable business units, BCG Matrix is a useful tool to carry out this
analysis. The matrix comprises 4 quadrants, cash cows, stars, question marks and dogs. The
identification of a product in relation to these categories is based on the market share and
industry growth prospects. Amazon.com Inc. has been a part of the online market, using its
website to access the customers across the globe. Currently, the company has divided its
operations into three units; North America, International and Amazon Web Service
(Amazon, 2016). The range of products and services offered by Amazon include
merchandise as well as electronic, audio and other forms of content that is purchased from
the vendors and provided to the buyers. The following analysis presents BCG Matrix of
Amazon’s products.
Cash Cows

There are some product categories that bring in enough revenue for a business entity to
regulate its operations of different business units. These products are labeled as a cash cow
and the manager’s task is to take leverage of these products and utilize their high market
share for gaining high revenues. The industry is mature enough to support the high sales
and the high consumer demand further facilitates in positioning the product as a cash cow.
There is limited chances of gaining any massive growth in future, however the current
profitable position of the business unit communicates a positive outlook for the company.
Amazon has generated a great deal of cash through the sale of its e-books, making them a
cash cow for the company. The company has recognized the potential held by electronic
books, and provided its readers with low cost options for people seeking books. Kindle has
supported the company to use the e-books segment as a cash cow. Miller and Bosman
(2011) have observed that the sale of e-books has significantly increased over the years,
supported by the increasing number of users of Kindle. It has been further speculated that
the number of e-book readers will increase in the coming years, making the e-books a high
value item for Amazon. Another product that is cash cow for Amazon is its audio books
which have also achieved significant sales. In addition, movie on demand has also generated
high amount of cash and holds a significant market share in the industry. The example of
IMDB is another case of cash cow as it helps the company to manage the sales of its movie
DVDs, along with lending support to the movie on demand business.

Stars

The second category of products that is a part of the BCG Matrix is star or rising star, which
holds a high market share. As the name reflects, these products are emerging as the leading
revenue generator for an organization. They do not yield the same financial return as cash
cows, but the future growth of these business units is promising, thus encouraging the
management to continue with the investment in them. Even though these products require
high investment, they are in a growing phase which suggests that these business units are
likely to become cash cows once the industry has reached maturity. The electronic items
being sold at Amazon are in demand, making this business unit a rising star for the company
as the market share in this domain is also increasing with time. The industry for electronic
items is growing, creating vast opportunities for further growth of Amazon. Grisworld (2016)
has asserted that the financial performance of Amazon in consumer electronics category
shows that it has achieved higher sales as compared to brick and mortar retailers such as
Best Buy. This trend is further expected to increase due to increasing number of users of
online shopping portals. In addition, the cloud computing segment has shown positive
growth prospects in the future, hinting at the product to become a cash cow in future once
a significant level of market share is established.

Question Marks

The next quadrant included in BCG Matrix is question marks. These products have the
chances of growing into a profitable business, however the limited market share makes it
impossible to use these business units as prime revenue generator. The industry is still in
growth phase, which indicates that question marks may emerge as a rising star if the
business is able to set the right direction for these products. Moreover, environmental
conditions that promote growth of these items is also a key consideration in determining
the future of question marks. The segment of video on demand had some issues such as
poor connectivity which has limited the growth of this segment, making it a question mark.
The business units of Zappos has faced similar issues of low growth and return on
investment after Amazon’s acquisition of Zappos (Stone, 2009). For zappos and video on
demand, the company will need to address the issues which have resulted in low market
share as it would help the company to tap into the needs of the market and position these
units as more profitable, taking benefit of the growing industry. There is a possibility that
the video on demand and zappos may move out of the question mark category in future.

Dogs

The last category in BCG Matrix is used to identify those products that are not generating
high sales and have not been able to establish a notable market share. The industry is slowly
progressing with little scope of further development, further adding to the complexity of the
external business environment. These products do not offer significant financial gain to the
company, instead they consume cash investment. Due to this attribute, dogs are recognized
as cash traps, since they are not expected to help the business through high ROI. For
Amazon mp3 has not been able to provide the company with any solid financial gains,
therefore it can be placed into the category of dogs. The mp3 business doesn’t have a high
market share and the industry is also growing at a slow pace.

Amazon McKinsey 7S model

Strategy

Amazon adheres to cost leadership business strategy. The largest internet retailer in the
world has been able to sustain this strategy thanks to economies of scale, innovation of
various business processes and regular business diversification.

Moreover, Amazon business strategy places a great emphasis on encouraging

communication among various components of its ecosystem. These components of Amazon
ecosystem include merchants, writers, reviewers, publishers, apps developers, and the
information market of commentators, analysts, journalists and feature writers. Additionally,
customer obsession and focus on Amazon leadership values represent important
cornerstones of Amazon business strategy.

Structure

Amazon organizational structure is hierarchical. It is difficult for the company to adapt an

alternative structure such as divisional or matrix due to its gigantic size. Specifically, the e-
commerce giant employs approximately 647,500 people that serve hundreds of millions of
customers worldwide.[1] The key features of Amazon corporate structure include flexibility
of the business; which is unusual for a company of such a big size and stability in the top
management, i.e. little turnover in the senior management team.

Systems

There is a wide range of systems that facilitate Amazon business. These include employee
recruitment and selection system, team development and orientation system, transaction
processing systems, customer relationship management system, business intelligence
system, knowledge management system and others. The company critically evaluates each
of these systems in a regular manner with the aim of increasing their efficiency and thus,
increasing competitive advantage for the business.

Shared Values 

Are at the core of McKinsey 7s model. They are the norms and standards that guide
employee behaviour and company actions and thus, are the foundation of every
organization. Amazon’s culture of working hard and playing hard in an environment that
rewards innovations and success.

Skills

Are the abilities that firm’s employees perform very well. They also include capabilities and
competences.

Staff 

Element is concerned with what type and how many employees and organization will need
and how they will be recruited, trained, motivated and rewarded. Amazon continues to
cultivate its talent and reward them with phenomenal promotional opportunities for
innovation and exceptional performances.

Style 

Presents the way the company is managed by top-level managers, how they interact.
Amazons employees share the vision of the their leadership and with informal attire to
assist staff with being comfortable and to help maximize performance

Ansoff Matrix of Amazon

Market Penetration
In market penetration, a company attempts to sell existing products in its existing markets.
Amazon does this by continuously marketing its products in the various markets it is already
serving. The various products it sells online such as electronics, clothes, furniture, and so on
are regularly marketed in its existing markets. The intention is to penetrate deeper into its
existing markets. By creating new advertisements, promotions, offering discounts, and
encouraging bulk purchases are often employed by Amazon. The company also has
introduced Amazon Prime for its premium customers to further benefit from their loyalty
(Dudovskiy, 2018). Members are motivated to make repurchases through discount promos.
The company also introduces new facilities such as apps and other functions to further
create ease of purchasing. The company also has acquired various smaller brands in
different markets. The company continues to gain market share.

Market Development

During market development, Amazon launches its existing products in new markets. The
company continues to expand into new geographical areas. These include different
countries the country keeps expanding into. To create ease for these regional markets, the
company introduces its website in the regional market it plans on entering. For example, in
India, Amazon launched its website in Hindi to facilitate new customers. Many of the
potential customers in India cannot read or understand English fluently. The company has
done the same for various other regional markets as well. The website also lists various local
products that are specific to the new market. This helps to develop a greater acceptance in
the new market for the existing products the company is selling. The company has also
introduced Amazon Prime same day and Amazon Prime one day delivery services in many of
these new markets (Balachandrarajan, 2019). The various new delivery systems have helped
the company develop its markets.

Product Development

This refers to launching new products in existing markets. Product development is one of
the core strategies and is prominently reflected in the history of the company. The company
started with a single product i.e. books. The company continued to expand its product
portfolio over the years and now sells almost everything online through its website. This
includes furniture, clothes, electronics, smartphones, and much more. The company
continued to grow with respect to its product portfolio. Today the company has become the
largest retailer based on the number of products it sells which have crossed 500 million. The
company also allows third-party sellers to utilize its platform to sell their products. The
product portfolio continues to grow as new products are launched by various brands making
product development at Amazon progressive.

Diversification

Diversification refers to launching new products in new markets. This is a risky strategy for
every organization. Amazon does diversification in a number of ways. These include the
acquisition of various new businesses already operating in new marketing such as the
acquisition of Whole Foods. The company also launched its cloud services for its clients to
enter the software industry with its new products. The company also launched Amazon Go,
a retail store that allows customers to select products from shelves and walk away. The
store automatically scans the products as they are lifted from the shelves and cuts the
payment from the Amazon account of the customers. The company continues to diversify in
this manner and launch new products in new markets under the same or different brand
names.
Amazon Company

The company was founded in 1994, spurred by what Bezos called his “regret minimization
framework”, which described his efforts to fend off any regrets for not participating sooner
in the Internet business boom during that time. In 1994, Bezos left his employment as vice-
president of D. E. Shaw & Co., a Wall Street firm, and moved to Seattle. He began to work on
a business plan for what would eventually become Amazon.com.

After reading a report about the future of the Internet which projected annual Web
commerce growth at 2,300%, Bezos created a list of 20 products that could be marketed
online. He narrowed the list to what he felt were the five most promising products which
included: compact discs, computer hardware, computer software, videos, and books. Bezos
finally decided that his new business would sell books online, due to the large worldwide
demand for literature, the low price points for books, along the huge number of titles
available in print. Amazon was originally founded in Bezos’ garage in Bellevue, Washington.

The company began as an online bookstore, an idea spurred off with discussion with John
Ingram of Ingram Book (now called Ingram Content Group), along with Keyur Patel who still
holds a stake in Amazon. In the first two months of business, Amazon sold to all 50 states
and over 45 countries. Within two months, Amazon’s sales were up to $20,000/week. While
the largest brick and mortar bookstores and mail-order catalogs might offer 200,000 titles,
an online bookstore could “carry” several times more, since they had an almost unlimited
virtual (not actual) warehouse: those of the actual product makers/suppliers.

Bezos wanted a name for his company that began with “A” so that it would appear early in
alphabetic order. He began looking through the dictionary and settled on “Amazon” because
it was a place that was “exotic and different” just as he planned for his store to be, and he
believed it was the biggest river in the world, and he planned to make his store the biggest
in the world. Bezos placed a premium on his head start in building a brand, telling a
reporter, “There’s nothing about our model that can’t be copied over time. But you
know, McDonald’s got copied. And it still built a huge, multibillion-dollar company. A lot of it
comes down to the brand name. Brand names are more important online than they are in
the physical world.”

Amazon.com, Inc. provides online retail shopping services. It provides services to four primary
customer sets: consumers, sellers, enterprises, and content creators. The company also provides
other marketing and promotional services, such as online advertising and co-branded credit card
agreements. It serves consumers through its retail websites with a focus on selection, price, and
convenience. It designs its websites to enable its products to be sold by the company and by third
parties across dozens of product categories. It also manufactures and sells the Kindle e-reader and
strives to offer customers the lowest prices possible through low everyday product pricing and free
shipping offers, including through membership in Amazon Prime. The company offers programs that
enable sellers to sell their products on its websites and their own branded websites, earning fixed
fees, revenue share fees or per-unit activity fees from these transactions. It also serves developers
and enterprises of all sizes through Amazon Web Services, which provides access to technology
infrastructure that enables virtually any type of business. The company operates in two principal
segments: North America and International. The North America segment consists of retail sales of
consumer products and subscriptions through North America-focused websites such as
www.amazon.com and www.amazon.ca. The International segment consists of retail sales of
consumer products and subscriptions through internationally-focused locations. This segment
includes export sales from these internationally based locations, including export sales from these
sites to customers in the U.S. and Canada. The company was founded by Jeffrey P. Bezos in July 1994
and is headquartered in Seattle, WA.

Amazon product lines include

(books, DVDs, music CDs, videotapes, and software), apparel, baby products, consumer electronics,
beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific
supplies, kitchen items, jewellery and watches, lawn and garden items, musical instruments.