AD-Times

2020-21
Amazon
Amazon Industry – Bird’s Eye View
Industry Overview
E-Commerce – Ecommerce sales are estimated
to be $4206 Bn and is projected to be $6542 Bn
by 2023.
OTT Industry - Revenue is expected to show an
annual growth rate of 10.6%, resulting in a
projected market volume of US$221,397m by
2025.
Virtual Assistant - Market size was estimated to
be over USD 4.5 billion in 2017, growing at CAGR
of over 20% from 2018 to 2024. The global
shipments are forecast to reach over 500 million
units by 2024
Logistics - The connected logistics market is
estimated to grow from USD 10.04 billion in 2016
to USD 41.30 million by 2021, at a Compound
Annual Growth Rate (CAGR) of 32.7% during
2016–2021.

https://brainmass.com/business/e-commerce/industry-analysis-amazon-609524
 Amazon – Introduction
KYC – Know your company
Company: Amazon Some quirky facts
CEO: Jeff Bezos  Amazon’s logo shows a smile from A to Z
India Head: Amit Agarwal in the name to signify that “the company is
Year founded: 1994 willing to deliver everything to everyone,
Headquarter: Seattle,USA anywhere in the world
Number of Employees (FY19): 840,000  Bezos originally wanted to call his
Type: Public company Cadabra (as in ‘Abracadabra,’)
Ticker Symbol: AMZN but scrapped the idea after someone
Market Cap (Sept 2020): $1.65 Tn misheard the moniker as ‘cadaver
Annual Revenue (2019): $ 280.52 Bn
Profit | Net income (2019): $ 11.59 Bn

Established New Logo Audible Acquired Fire phone Flops 1 Trillion

1994 2000 2008 2014 2018

Timeline
1997 2005 2010 2015
$438 Mn on NY Prime Launched Kindle Fire Echo Launched
Stock Exchange
https://www.convertize.com/amazon-website-design/
Amazon – SWOT Analysis
Our vision is to be earth's most customer-centric company; to build a place where people
can come to find and discover anything they might want to buy online - Amazon
Strength
• Strong brand name
• Brand valuation
• Customer oriented
• Differentiation and Innovation
• Cost Leadership
• Market Leader
Opportunity
• Expanding physical stores
• More acquisitions
• Self Driving Technology
• Launch of electric
rickshaws in India
• Improve technological
measures and
organizational policies
Weakness
• Easily imitable business mode
• Product Flops and Failures
• Tax Avoidance Controversy
• Declining consumer safety
• Unfair use of third party data
• Employees Strike
Threats
• Government regulations
• Links to exploitative labor
• Aggressive competition
• Fake Products
• Fake reviews
• Economic Recession
https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot/
 Amazon – Marketing Mix
Product Price
Product
• Retail service
• Retail goods
• Amazon Prime
• Consumer electronics Place Promotion
• Digital content distribution service
• Amazon Video
• Amazon Web Services (AWS)
• Amazon Publishing
• AmazonFresh Price
• Amazon Prime Pantry
• Amazon Dash • Market-oriented pricing strategy
• Video Direct • Price discrimination strategy
• Value-based pricing strategy
Place

• Official e-commerce websites Promotion

• Amazon Books • Advertising (most important)
• Others • Sales promotions
• Public relations
• Direct marketing

http://panmore.com/amazon-com-inc-marketing-mix-4ps-analysis
 BCG/ANSOFF Matrix
ANSOFF Explained
Quadrant 1 - Amazon went into North
America and they were the only online
retailer selling books.
Quadrant 2 - Amazon took their
successful product which is the online
sales of books and went to different
markets (in this case countries /
continents)
Quadrant 3 – Amazon realized that
they were successful as an online BCG Matrix
retailer for books and thought why not
sell other products as well. Relative Market Growth • Amazon Kindle • Amazon Web
Quadrant 4 - Amazon started looking • Amazon Fresh Services
at other opportunities, and their • Amazon.com • Pinzon Private
• Prime Ltd
acquisition of Whole Foods and their
cloud services under the name AWS
are totally unrelated diversification • Audible.com • Amazon mp3
which helped them grow their • Createspace • Amazon Cloud
business further

Relative Market Share

https://www.slideshare.net/pragatiagarwal6/amazon-business-model-65773845
 Brand Communication
Marketing Communication
• Amazon uses print and media advertising
extensively in order to communicate its
marketing message to the members of
the target customer segment.
• Amazon’s employs RACE marketing
planning framework in the following ways
1. Reach: Amazon's initial business growth
based on detailed approach to SEO and
AdWords targeting millions of keywords.
2. Act: Creating clear and simple
experiences through testing and
learning.
3. Convert: Using personalization to make
relevant recommendations and a clear
checkout process that many now imitate.
4. Engage: Amazon's customer-centric
culture delights customers and keeps
them coming back for more.
Recent Campaign -
Apno Ka Saath - Amazon India has unveiled its
latest campaign ‘Apno ka Saath.’ The narrative of
the campaign brings alive Amazon.in’s ‘trusted,
one stop shop’ proposition.
Apni Dukaan - The ad conceptualised by Orchard
India, puts together relatable slice-of-life situations
to highlight the important features of Amazon
services like-one-day delivery, easy returns and
Cash on Delivery
ATL
• Amazon Advertising – Using native Amazon
advertising formats to endorse brands and
products
• External Marketing – Using promo channels
not offered directly by the platform
BTL
Amazon SEO – Optimizing product pages to
improve their visibility in Amazon’s organic
search results
https://sellics.com/blog-on-amazon-advertising-marketing-overview/
 News and Brand Equity
News Brand Equity
• Amazon pumps in money into MORE to • Amazon India scraps single-use plastic in
take on the heavyweights Reliance Retail packaging across centers
and DMart
• Amazon invests in battery recycling firm started
• Amazon, Flipkart, and other e-commerce by former Tesla executive
players could hit $7 billion in Diwali sales
this year • Amazon and Microsoft invest in company
injecting CO2 into concrete
• Amazon brings Hindi support to Alexa app
on Android, iOS • Amazon’s $2 billion Climate Pledge Fund is
investing in five start-ups.
• Amazon brings Amitabh Bachchan voice to
Alexa • Amazon invested $10 million to help conserve
or restore forests in the U.S. Northeast
• Amazon taps Voot’s Akash Banerji to head
marketing of central mobile biz
development unit

https://economictimes.indiatimes.com/topic/Amazon
Good Luck