AMAZON

Marketing
Strategies

Tarun Jain (21BC372)

Tutorial – I41
BCom (Hons) Semester – 5
Contents
Amazon – An Introduction
Amazon’s Current Market Position in India
Amazon’s Marketing Strategy
Amazon’s Latest Strategies
Conclusion and Recommendations
Bibliography
 Amazon – An Introduction
History
Amazon – a company which is the
biggest market place worldwide
started with the vision of Jeff
Bezos in his garage in Bellevue,
Washington in 1994. It was initially
symbolized With the ambition to
create the world’s largest
Bookstore Which quickly gained
popularity among book lovers as a
online shopping option for low
priced, vast variety of books.
It expanded its operations beyond books and allowed third party
sellers to list Various other variety of products on Amazon website. It
gained popularity over period through programs such as Prime
membership. It ventured into cloud computing with launch of
Amazon web services (AWS), providing a cost effective IT
infrastructure, becoming one of the main revenue stream for the
company. It revolutionized the market and challenged existing giant
such as Apple through launch of Kindle Fire, introducing user friendly
and affordable tablets to consumers, expanding Amazon’s reach into
the digital device space.
The technology revolution of
company expanded to
Amazon Echo, a smart speaker
powered by the Alexa voice
assistant, this voice assistant
era allowed consumers to
interact with their homes,
play music, access
information, and more using
simple voice commands.
It then acquire whole foods Market in 2017. This acquisition brought
Amazon’s online grocery services into physical stores, Transforming the
grocery shopping experience. Today it’s a global e – commerce giant
and pioneer in artificial intelligence and voice controlled devices. The
company’s journey from a garage startup to a global powerhouse is a
testament to innovation, customer focus, and an unwavering belief in
the power of technology.

The Company
\The company is currently headed by Andy Jassy (CEO), Adam Selipsky
(President), David Zapko (COO), Oliver Bockenhaupt (CMO). Its annual
revenue is $469.822 billion.
In India, The company is headed by Manish Tiwari and vice president is
Nishant Rao. Its annual revenue for the fiscal year 2022 was estimated
to be around $11.15 billion.
 Amazon’s current market position
In India
It is the world’s largest online retailer with a market share of 37.8% of
global e- commerce market and presence over 200 countries. This
position is maintained, driven by its strong brand recognition, wide
product selection, efficient logistics network, and innovative offerings.
It’s sales revenue has been impressive $469.822 billion in 2022 with
annual growth rate of 20% over past decades.
Due to its presence over
various industries, it has
numerous competitors
but the competition
related of E - Commerce
comprise of Alibaba
group, eBay, Walmart,
JD.com & MercadoLibre.
These competitors has
dominance in different
part of world and
challenge positioning of
Amazon.
In India, Amazon has second dominant market share that is 26% next to
flipkart which has a market share of 48%. It’s India’s revenue was
estimated to be around $11.15 billion in fiscal year 2022, with an annual
growth rate of 18.5%. Despite its impressive revenue and growth,
Company’s heave investment and operating expenses has hampred its
profitability. Still it has shown progress in reducing its losses, which
narrowed down to ₹3,649.2 crore in fiscal year 2022, 23% decrease from
previous year.
It is expected to reach a value of $300 billion by 2025 despite sheer
competition which comprise of Flipkart, Reliance jiomart (10%), Myntra
(15%), Meesho (5%), Tata Cliq (3%). With different core competency
these competitors present different challenges for the company.
 Why losses in India?
Despite its impressive revenue growth in India, Amazon has been
incurring losses. This is due to several factors, including:
Significant investments in expanding its logistics network, building
data centers, and developing new products and services in the Indian
market. These investments have led to substantial operating
expenses, offsetting the company's revenue growth.
Intense competition from other e-commerce players offering lower
prices and discounts, catering to the price-sensitive Indian consumers.
This competitive pressure has forced Amazon to maintain lower
margins, impacting its profitability.
Regulatory hurdles in India, including restrictions on foreign direct
investment (FDI) in the e-commerce sector. These regulations have
limited Amazon's control over its inventory and expansion of
operations, hindering its growth and profitability.
Prioritization of growth over profitability in the Indian market,
involving heavy investments in acquiring new customers and
expanding its product selection. This focus on growth has led to
increased expenses, contributing to its losses.
High cost of customer acquisition in India, requiring extensive
marketing and promotional campaigns. Amazon's investments in
customer acquisition have added to its operating expenses and
contributed to its losses.
Delays in achieving economies of scale due to being in the early stages
of its growth in India. This means that the company's fixed costs are
spread over a smaller customer base, leading to higher per-unit costs
and lower profitability.
Limited penetration in rural areas, primarily focusing its e-commerce
operations on urban and tier-1 cities in India. The company has
struggled to penetrate rural markets due to factors such as limited
internet connectivity and infrastructure challenges. This limited reach
has restricted its overall market share and profitability.
Scrutiny from Indian tax authorities regarding its transfer pricing
practices and compliance with e-commerce regulations. These
regulatory issues have led to additional costs and potential financial
liabilities, further impacting profitability.
 Amazon’s Marketing Strategy
Amazon relies on following form of marketing

Pay per Click (PPC) Advertising

Amazon's Pay-Per-Click (PPC) advertising, which is also known as

Amazon Sponsored Products, is a way for sellers to advertise their
products on Amazon. It is a cost-effective way to reach potential
customers, as sellers only pay when someone clicks on their ad. This
makes it a good option for sellers who want to get the most out of their
advertising budget.
With PPC advertising, sellers can create ads that target specific
audiences and product categories. They can also track their ad
performance and make adjustments as needed. This helps sellers
ensure that they are getting the most out of their advertising
investment.
It include various steps such as Campaign setup, Ad auction, Ad
placement, Cost per click (CPC), Campaign performance.

Search Engine Optimization (SEO)

These techniques help Amazon rank higher in search engine results

pages, which leads to more click and conversions. These techniques
include keyword optimization, Product titles and descriptions, Image
optimization and internal linking. It uses a combination of on page,
technical and off page SEO techniques to achieve high level of visibility
in search engine result pages (SERPs).
E - Mail marketing

It is one of the best marketing strategies from Amazon. Besides

sending order summaries, Amazon uses email to deliver personalized
product recommendations, friendly requests for product reviews, and
announcements for upcoming sales.

Video Marketing

It involves marketing across various platforms and touchpoints to

engage customers, enhance product discovery, and drive sales.
Various channels for video marketing for amazon includes
Amazon.com product pages, Amazon prime video, Amazon video Ads,
Amazon live, Amazon influencer marketing. Providing benefits such as
enhanced product discovery, Brand engagement and improved
conversion rate.
Video helps 90% of people make a purchase decision. So, it’s not
surprising that Amazon also uses video across its product listings and
advertising campaigns to educate and persuade shoppers to buy their
products.

Web Design

Amazon's marketing strategy places a significant emphasis on web

design, as it is a crucial tool for improving customer experience,
fostering brand engagement, and ultimately driving sales growth.
Amazon's website and mobile app serve as the primary points of
contact for millions of customers worldwide, making web design a
critical factor in the company's success.
With regular design updates to its product pages, sign-up pages, and
category pages, Amazon tailors its website (and empowers its sellers) to
drive even more sales.

Conversion rate optimization (CRO)

With CRO, Amazon discovers new ways to design its product listings,
structure its search results, and motivate its shoppers to checkout.
Since Amazon receives a tremendous amount of website traffic, the
company can run CRO tests — and implement the results — fast.

User generated content

Amazon understands that people often seek the opinions of others

before making a purchase. To address this, the company allows
shoppers to share their experiences with products by writing reviews,
uploading photos and videos, and answering questions from other
shoppers. This fosters a sense of community and helps buyers make
informed decisions.
 Amazon’s Latest Strategy
Khushiyan apno ki, aur apni bhi Campaign

The main goal of the "Khushiyan Apno Ki, Aur Apni Bhi" campaign is to
encourage people in India to take care of their own well-being. The
campaign focuses on how taking care of yourself is not selfish but
important for your overall health. Amazon created videos to show how
people can balance their own needs and the needs of their families. The
videos are aimed at people of all ages in India, but they are especially for
women and young adults. The videos have been well-received and have
led to discussions on social media. Amazon's "Khushiyan Apno Ki, Aur Apni
Bhi" campaign is a well-made marketing strategy that is in line with the
growing importance of mental health and well-being in India. The
campaign is likely to resonate with Indian consumers and help Amazon to
become a more trusted and respected brand in India.
Social Media and Various Festival Sales

Amazon offers various sales in India this includes Great Indian Festival
which is the biggest sale of the year and takes place in October. It features
discounts on a wider range of products, including electronics, fashion,
home appliances and more. Other sales inlude Diwali sale, Republic day
sale, Summer sale.
In today’s time social media game cannot be ignored and most of the
users are on social media and easiest and most effect way to reach them
is this. Most of users time is spent on mobile and this allow a brand to be
in continuous site of the potential consumer. It increase brand awareness,
increase traffic and includes repetition of previous customers.
Amazon has also used its social media effectively.
 Recommendation & Conculsion
Being in a dominant position, Amazon should be wary of its competitors
and various regulatory, economic and operational challenges that
environment pose to it.
Various recommendations can include enhancing product authenticity,
Expand the partnerships with local businesses, Promoting localized
payment options, Prioritizing vernacular language, Engaging in local
community initiatives, Advocating for a fair and transparent regulatory
environment.
Continuously improving the logistics and delivery time to provide
better service to customers.
 Bibliography
https://www.instagram.com/amazondotin/reels/
https://www.google.com/search?
q=amazon+global+competitiors+chart&tbm=isch&ved=2ahUKEwifz9r16NqCAxXGm2MG
Hd-xAPYQ2-
cCegQIABAA&oq=amazon+global+competitiors+chart&gs_lcp=CgNpbWcQAzoFCAAQg
AQ6BggAEAgQHjoHCAAQgAQQGDoECCMQJzoICAAQgAQQsQM6BwgjEOoCECc6Cg
gAEIAEEIoFEEM6DQgAEIAEEIoFELEDEENQ9AZY5E9g8FFoBXAAeACAAcMBiAGWL
ZIBBDAuMzWYAQCgAQGqAQtnd3Mtd2l6LWltZ7ABCsABAQ&sclient=img&ei=HaNfZd_
MNca3juMP3-
OCsA8&bih=758&biw=750&rlz=1C1YTUH_enIN956IN956#imgrc=x3c6dntKDkKJCM

https://www.google.com/search?
q=amazon+khushiyan+apno+ki+aur+apni+bhi&sca_esv=584912597&rlz=1C1YTUH_enIN956I
N956&tbm=isch&sxsrf=AM9HkKmLjVSuQbvaQGT3fcUY_hEqMCKUJA:1700774280410&sour
ce=lnms&sa=X&ved=2ahUKEwiYss72hduCAxXmT2wGHdEDAt0Q_AUoAnoECAEQBA&biw=
750&bih=758&dpr=1.25