Analysis Of Amazon Australia’s Marketing Strategy

Creating a Competitive Advantage

Amazon is one of the biggest internet retailers in the world and online marketing of the company is on top of the world. The competitive market of online purchase is a new tradition that every business try to introduce in their marketing process. However, the processing is not that easy. There are some managing websites issues and easy buying process will help to accumulate customers (Bergvall-Kåreborn and Howcroft 2013). The basic objective of online marketing is to create a concerted approach in people and attract them with the facility. The effective promotional approach of the company is vital in that case and Australian people have that engagement to channelize with the work and use the marketing channel for the development of online industry.

Amazon has started their business in Australia in 2013. The major benefits that Amazon delivers to Australian people are the cheap prices, the wide range of brands, a wide range of products, quick and free delivery. The male customers are more aware than females. 62% of men are interested in Amazon and 38% of women in Australia are associated with this (Amazon.com.au 2018). 67% electronic goods and 61% of books are ordered from Amazon and most of the Australian use this online process for these two genres of products. The new innovation from Amazon is the prime service and 73% people ordered through the prime process (Amazon.com.au 2018). In 1995, Amazon goes live and started their online business with books. The multi-layer distribution channels help the entire process and Amazon gets a kick start in the market. Though Amazon has started their business in Australia in 2013 and they have already made a good business over there (Amazon.com.au 2018). Amazon launched the Kindle store in 2013 and initially concentrated on that business. The number of the online shoppers was 17 billion i.e. 68% in 2017 in Australia. The individual person using the internet for that reason was more than 90% and all they have the instinct to place order and to choose the right thing for them (Amazon.com.au 2018). In 2017, shopping service has started and promotional activities were high at that moment. There were numerous recruitment and Amazon provided lots of employment opportunities as well. 260,000-foot fulfilment in Melbourne was the new building for Amazon. The announcement of hundreds of new jobs makes a dimension of employment (Amazon.com.au 2018). The introductory offers are exciting and most of the day this process has the same day or two-day delivery. Free video streaming and process maintaining is the key issue in that case to deliver the better opportunity for the Australian people.

Questions for Analysis

The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began.

Online retail offering in Australia is the prime strategy that Amazon delivers to Australian people. The products are from 23 categories like books, home improvements, accessories, clothing, kitchen goods, music, computers, and baby products. On Christmas Eve, products are delivered at free of cost, that means service charges are not included in that scenario. Most of the edible foods are free of cost and most of them are delivered in one day. The marketplace strategy of Amazon is tight-lipped strategy; which is a process of allowing other business to sell through their websites (Cunningham 2012). There are thousands of websites enter that and sell their products, and the global sale of the company increases. Amazon is good for the consumers but not so good for incumbent retailers. There was a slow start for Amazon in Australia. The prime service is a strong wakeup call for the Australian people and product purchase platform is the main strategy is that case.

Prime has the facility of free two-day shipping or better shipping process faster than that and free release date delivery. The process is applicable for the pre-order cases and the customer has to order the book before it executed in sellable list. The free 2-hour delivery, free or flat rate household item delivery or grocery delivery, Alexa deals, whole food items deals and benefits, and all these are acquitted by prime process. The unlimited video streaming through prime process is another facility that people can access through this process. Prime video is alike to Netflix and it offers movies, TV shows, and original contents. Prime can be accessible through the laptop, desktop, mobile devices, stick and boxes (Itnews.com.au 2018). Thus, the availability of this process is there. In 2017, Amazon Australia has taken this step forward and develop in the Australian market. At $59 a year is the deal for one year and with this deal, some of the better facilities company will deliver to their customers (Itnews.com.au 2018). The market acceleration for Amazon is good and people have that expectation to have quality product through prime service. The offers in prime deliver some products at the low price range and all these have mass adaptation and provide a strong base in competitive distribution channel (Williams 2018). As the price of some high-end devices has become low in order thus, the situation of own loss is there but the company has chosen the strategy to mass spreading rather than increasing the production values. Ansoff matrix can be used in this application as the company has to penetrate in different market and they have values to indulge in. The choice of people and their need from the market is the key issue in that case.

Amazon Australia’s Marketing Strategy

Amazon tries to build a subscriber base for their prime process. The products are mostly high-end and deal on those products make them cheap and affordable for people and company produce the mass in number so that extra percentage of revenue will come and there is no loss in that whole process. The strategy of ‘Prime day Sale’, is one such concept that allows a push in the Australian business market and retail market (Itnews.com.au 2018). Amazon has better chances in Australia as they have delivered their product cheaper than any other market. Say, $US119 is a product price in the US, that will be 166.50 AUD in Australia, but Amazon delivers the product lower than this also and there will be some prime discounts as well (Itnews.com.au 2018). The product price will be 161 AUD. The same situation persists in Britain also as £79 will be counted as 143.15 AUD but the product will be accessible in 141 AUD in Australia (Itnews.com.au 2018). The cost-cutting option and deliver products at the lower price range is the main concern in that case. The company promised to deliver their products within 2 days to the 90% of the customers and they want to make a productive market for them. After the slow start in 2013, the company changes their strategic alignments and make them productive enough to get the better response from the market and that will be an improved scenario for the Amazon Australia (Itnews.com.au 2018).

Amazon operation in Australia was reluctant for the first six months. Even in 2017, after the prime process has started, lukewarm response from people was not there. As stated by Given, Curtis and McCutcheon (2012) the improvement of the situation and enthusiasm in market after the competitive strategy of pricing is applied, Amazon hit the best place in the market as well. Attractive segment ‘fulfilment by Amazon’ is the way to cherish people expectation form the company. The development of the marketing segment of the company and their improvement in Australia is shown in this table.

20th April 2017	The full retail market of Amazon has started in Australia and different offers are there for the introduction of business.
3rd August 2017	The first warehouse of 24,000 square meters outside the Melbourne is the new sign of market expansion in Australia. The business operation will be easier if the warehouse and logistics department work together.
13th October 2017	There was an announcement from Amazon that 500 sellers have a chance to pre-register to join the Australian marketplace.
13th November 2017	Seller summit in Sydney and encourage business to grow at their level best and secure a platform that encourages the business opportunities for the company.
5th December 2017	The first retail and marketplace offers were introduced at this time. The first day orders are high in numbers and tens of thousands of customer visited on the website during the first 24 hours and they placed their chosen products among 23 categories. There were some third-party sellers as well after the first day of trade (Fungglobalretailtech.com 2018). 2100 third part sellers and half of them are from China. The business got a kick start at that moment and most of the innovation and acceleration were formulated at that moment.
18th January 2018	The innovation process has come to Australia in the way of technology. Alexa-enabled, voice control speakers, Amazon Echo, Echo Dot, Echo Plus all these devices were introduced at that time. The pre-order availability was there and the shipping began in early February. The innovative touch with advanced technology is the main advantage of that process and Amazon introduced that for the development of their marketing arena in Australia (Welch 2015). Large business giants like NAB, Westpac, and Qantas divulge with the process of Alexa.
27th February 2018	Fulfilment by Amazon (FBA) is a service development process for goods and products by Amazon (Fungglobalretailtech.com 2018). The development of logistic is there any third-party market seller is the key approach in that case.
21st March 2018	10,000 seller join Amazon’s marketplace to improve the business. The process of joining help the entire process of marketing and promotions.
3rd May 2018	Second FBA centre was started in Moore bank, West Sydney at that time (Pandit and Poojari 2014). The operation process strengthens through this, the marketing arena will expand for Australia and that is the major reason for this second warehouse.
31st May 2018	The situation implementation of not using the original website and use the different website for the different nation is helpful for the civilians of that nation. They have an opportunity to check the price of the product at their currency. “Amazon.com.au” is the better way to search the process (Fungglobalretailtech.com 2018).

Porter’s Generic strategy is the key concept of Amazon. The quality of the product and their nature of differentiation is the key issue that make difference in product culture. The innovation and opportunity, company provides is the best in market and hat is the reason better way of development in Australia happens through the company. In case of future development, 50,000 more sellers will come at the end of this year. This will strengthen the investment and marketing policy. The delivering innovation like ‘Drone facility’ will be an innovative step to be taken (Fungglobalretailtech.com 2018). This is one of the automation that deliver products less than a day. Online payment will be done by the customer and the drone will deliver the product within 2 to 6 hours. The products availability and weight of the product must be limited and automated voice message will confirm the delivery report of product (O’Connor 2013). In retail management, ‘Amazon Go’ will be another innovation that Amazon Australia can take (Fungglobalretailtech.com 2018). This is the trendiest way to the cashless transaction. The process has not needed any hard cash, rather a device will sum up the entire bill that a person acquires from the Amazon store and after the entire shopping, and the customer can pay the bill any time. Time-saving and mitigation of queue system are there and those innovations will make Amazon special.

Conclusion

Therefore, it can be concluded that marketing in this competitive business arena needs to be innovative and progressive so that business will get enough strength to formulate their base. Amazon, in this case, spread their market in Australia. But the initial time market development was not so good and business had some confrontations but after the strategic innovations in business, better ways have come up and developed the business in Australia.

References

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Cunningham, S., 2012. Emergent innovation through the coevolution of informal and formal media economies. Television & New Media, 13(5), pp.415-430.

Fungglobalretailtech.com 2018 Deep Dive: The Amazon Invasion—A Timeline of the E-Commerce Giant’s Global Conquest retrieved from: https://www.fungglobalretailtech.com/research/deep-dive-amazon-invasion-timeline-e-commerce-giants-global-conquest/ [Accessed on 18^th September 2018]

Given, J., Curtis, R. and McCutcheon, M., 2012. Online video in Australia. International Journal of Digital Television, 3(2), pp.141-162.

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O’Connor, S., 2013. Amazon unpacked. Financial Times, 8.

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Williams, C., 2018. The streaming arms race: Original VOD programming in Australia. Metro Magazine: Media & Education Magazine, (195), p.116.

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