Marketing Plan for Amazon.com
Executive Summary Amazon.com has a leading edge in the e-commerce world. It has a strong competitive advantage. However, as with many online retailers, there are certain aspects of conducting business over the web that creates difficulties and the need of marketing planning.
This marketing plan consists of environmental scan, customer behavioural patterns, current segment market, marketing strategies and recommendations in strategies.
2) Introduction Amazon.com is the largest online retailer. The company opened its virtual doors in July 1995 by Jeff Bezos in Seattle. Since then it has enjoyed rapid expansion in all aspects of its operations, including business turnover, and a spectacular rise in share value since public floatation in 1997.
Amazon.com sells only on-line and is essentially an information broker. Amazon.com has constantly growing database of over 12 million customers in more than 160 countries. Amazon.com is the place to find and discover anything customers want to buy online. They have earth's biggest selection of products, including millions of books, free electronic greeting cards, online auctions, videos, CDs, DVDs, toys, games, electronics, kitchenware, computers, and more.
2.1) Competitive position - Amazon.com is the biggest on-line international retail store in the world - Strong in-house internet technology with excellent offline customer services - A huge database of loyal customers - base of over 12 million shoppers - The company has grown to a massive online superstore with recent sales of $1.64 billion in 1999, an increase of 270% from the previous year's sales - Amazon.com has a very powerful position in the media industry.
- Amazon.com is use the Internet to transform book buying into the fastest, easiest, and most enjoyable shopping experience possible.
Market share of online book business 2.2) Amazon's mission - To become the largest selection of select retail categories Amazon.com seeks to be the world's most customer-centric company, - To provide the best shopping experience and become the place where people come to find and discover.
- To convince all online customers to use Amazon as their search platform.
- Provides excellent customers personalize services and discount profitable prices.
- Let customers can find and discover anything they might want to buy online at Amazon.com 2.3) Corporation objectives There are 4 important objectives of Amazon.com as below: a) Improve customer relationships Amazon.com will continue to invest heavily in building relationships with new customers. Customer obsession is the key focus at Amazon. There will be nothing to worry about if the competitors stay focused on Amazon and Amazon stays focused on the customer. There are three main factors that matter most to customers: selection, ease of entry and price. Amazon.com will make sure it continues to be the best in those three areas.
b) Expand products and services Product and service expansion is important because it will also encourage repeat customer, as the company becomes increasingly well known to a wider customer base. As long as people keep coming back to purchase new types of merchandise, Amazon.com will make money.
c) Expand partnerships Amazon.com's partnership ventures have been successful in the past so the company hopes to continue that success. These partnerships like drugstore.com, gear.com, and ashford.com, provide a large selection and great customer service, just like Amazon. Effective partnerships have been proven to greatly enhance a business.
d) Profitability in every Amazon.com business Sustainable profitability is the main motive for every company. Currently, Amazon generates revenue that is reinvested into the company. The goal is to continue to reinvest and make a profit in all business sectors. It is now time to cut its fixed costs and generally improve on company spending.
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