MARKETING PLAN FOR AMAZON
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Presented by Group 3
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Varun Kanoi
Ishtiba Meeajane
Aditya Mehta
Aaina Jain
Background
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Founded in 1995
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Started as an on-line book store
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Became America’s largest on-line retailer
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Now products sold are CD, MP3s, computer
software, video games, electronics, apparel,
furniture, food and toys
Amazon.com's market position – ranked 272
compared to 303 ealier (recent Fortune 500 ranking)
Background
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Revenues in 2008 US$ 19.166 billion
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Free shipping for some products
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Latest products available at affordable
prices
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In 2008 Amazon had 76 million active
customers
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Launched new product: Kindle e-reader
- innovative, simple to use, user friendly
MARKET ANALYSIS
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Amazon’s competitors
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Barnes & Noble.com
physical bookstores also
 designed with comfort and convenience
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Ebay.com
 much larger than Amazon.com
 offers live auctions and bidding for customers.
User friendly and reliable
 Affiliate programs – make customers get money
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The Book Depository
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User friendly, better usability
 Columbia House
 Can buy music
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Google Book Search
 Can read books online
TARGET SEGMENT
•Online users
•New generation of online
convenient shoppers
•New lifestyle
•Age group
•17 above
•Both male and female
• Educated, technology
savvy
• No fear of using credit
cards for online purchasing
LAYERS OF BRAND
Functional
E-commerce service
Emotional
Secure, convenient
and reliable
Self-expression
New generation of
shoppers -
Social responsibility
Education for the
poor
Threat of New
entrants
Anyone can enter the
market at low costs
Economies of Scale
Can come with better
range of products
Product
Capital Requirement
Bargaining Power of
Supplier
High number of
Suppliers
Substitute – other ecommerce sites
Differentiated Product /
High
Imporved Distribution
Pressure
From
Substitute
Zero inventory
PORTER’S 5 FORCE MODEL
Bargaining Power of
Buyer
Can shift to other sites easily
With technology and blogs have high power
Buyer has full information
Substitute exists
Category Rivalry
Many / Balanced Competitor –
Barnes & Nobles, E-Bay,
Google
Lack of Product Differentiation
BCG MODEL
KANO MODEL
Customer reviews
Kindle e-reader
One click service
Online shopping
TREND ANALYSIS
WELL-BEING
FUNCTIONAL
VALIDATION
CLAIM
Reliable online service
Door-to- door delivery
Brand Analysis
MODERN
Amazon.com
website
EVERYDAY
1995-2009
Amazon Kindle
e-reader 2009
EVERYDAY
SP.OCASSION
Amazon website
Brand perception
Image
Make Amazon
synonymous to
Books and
Accessories
Positioning
Identity
The best and
convenient online
book store
Product
features
• customer
Reviews
• Safe online buying
stakeholders
• ‘see inside’ features
for books
• shows other books
bought in same genre
CUSTOMER PROFILE
•Partly the
current users
•Sometimes
dissatisfied about
shipping delays
• Current
registered
inactive users
•Current million
users
•Good Advocates
•Review purchase
and rate the
service
Walking
wounded
Champion
Missing in
Action
Terrorist
• Bad mouth
Amazon
services
• Through blogs
CUSTOMER COMPLAINTS
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CUSTOMER BLOG
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LOOK FOR THEIR FEEDBACK
CALL THEM instead of mailing them back
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CARESS OFFICERS
SWOT ANALYSIS :
STRENGTHS
•‘one-click shopping’
•good customer service
•door to door delivery
•No inventory
•Latest products
•Free shipping
WEAKNESS
•Product delivery wait
time
•Intangible experience of
the product before
purchase
•Lesser reliability
OPPORTUNITIES
•Growing internet
users
•Online shopping seen
as convenient
•Free E-mail service
•Growing online
advertisements
THREATS
•Competition from
EBay, Barnes &
Noble, The book
depository
•Lack of cheap
capital from stock
market
•suppliers selling
directly to
customers
Product Life cycle Curve for Amazon
2009
1994
•By 2000, Internet
penetration & usage
higher
•Online purchasing start
to grow
2000
• In 2009, online buying is
more popular
• Easy, reliable and more
convenient mode
AMAZON.COM
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Gap
Position
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Make shopping easier
Convenient Online retailer
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Brand Image
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Convenient and Reliable
Brand Identity
Price
Advertising Strategy
Place
Design
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Reliable, cheapest and convenient
Cheapest prices
Image - Online
Mass
User-friendly, customer driven
AMAZON NEW PRODUCT KINDLE
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USP
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Download any book in
less than 60sec
Most Best sellers and
new releases for only
$9.99
In-built 3G wireless –
no annual subscription
Just less than 1 cm
thick
More than 300 000
available for download
Stores up to 3500 books
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Weakness
Available only in black
and white display
 No backlight for
display
 Available only in US
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OBJECTIVES FOR THE YEAR 2009
 Achieve
a 200% increase in sales per year
for books, music, movies and electronics &
software
 Achieve a 30% sales for their new product
Kindle e-reader
HOW?
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Use the Kindle e-reader to build the brand image
of Amazon throughout the year
Associate Kindle-reader with simplicity, convenience
and new lifestyle
 Associate reading to fun
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MARKET SEGMENTATION AMAZON KINDLE
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Target audience
17-45 , both male and female
 Higher income groups
 The Technology savvy and reading lovers
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Understanding the customers
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new generation of Internet users
High willingness to shop online
A generation that spends huge amount of time online
Gathers information mostly online about all products
Trust in e-commerce sites
Find them reliable, fast and so convenient
STRATEGY
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To make Amazon Kindle e-reader the most user
friendly product synonymous to convenient &
new life style
MARKETING PLAN
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Channels used
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Media
TV
 Radio
 Internet - online sites for ads like Facebook , Orkut
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Promotion
Outdoor Events
 Online buying experience
 Online games
 Free delivery on special occasions
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Corporate Social responsibility
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Contribute to poor children education – NGO’s ,
orphanage
PROMOTION
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Competition at malls 
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Highest number of pages one can read in 5 min
Make customers experience the product
Gift Amazon prices like T-shirts- pens
Reading in the metro
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Read the news on Kindle as you travel
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Exchange a newspaper for Kindle reader on a metro on one
normal office day- read the news during travel – see how
easy
Supermarkets –listen and shop
Be present in Shop
 Enjoy the latest/ favourite book while shopping as
can use the listen feature
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PROMOTION
EVENTS
 Libraries
Sponsor library events, have stall where Amazon can
show its new product on a book launching activity
 Make people browse for their favourite book on
Amazon.com and make them read from the e-reader
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@Beach
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Trials at the beach- surprise the customer with the
benefits of having wireless device at the beach..can
check news
Promotional stuffs- stationary, T-shirts, pens
Packing with an Amazon wrapping paper
MEDIA
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TV ads
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Show the benefits of this new e-reader
like throwing books and reason for it is the new e-reader
 First 10 to come at a different library on different days win
the Kindle
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Teaser
Like its time to throw your books – don’t need it now!
 Show the reason after: Kindle e-reader with its benefits
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Radio
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Sponsor radio programs, same like TV ad come and win at
your local library
Internet
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Banners through other websites like Facebook , on blogs,
websites associated to reading
Online gaming sites – play word games/
CORPORATE SOCIAL RESPONSIBILITY
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Tie-up with UNICEF or any NGO that promote
children education
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For each purchase of Kindle- $ 0.5 will go to an NGO
providing education for poor children
EVALUATION OF MARKETING PLAN
INVOLVED
•Amazon packing paper
•Amazon branded
products- e.g. stationary
Supermarkets
•TV and radio ads
Promotion at malls
IMMERSED
ACTIVE
PASSIVE
•promotion in malls
Metro
QUESTIONS