“Amazon India – ruling the world of demanding customer.”
“To continue to offer quality products and services using the best technology available and at a reasonable price”.
“We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators”.
Amazon is an American electronic commerce and cloud computing company with headquarters in Seattle. The company was founded by Jeff Bezos in 1994. The initial name of company was “Cadabra” which got changed to “Amazon” in 1995. The initial offering of Amazon start with the five major products: CDs, Computer hardware, software’s, videos and books. In June 2000, company has designed their logo type as curved arrow leading from A to Z, representing that company carries every product line from A to Z.
The company is present in 4 continents: North America, Europe, Asia & Africa, covering almost 15 countries across the globe and multiple cities in these countries.
The major products and services offered by Amazon are:
1) Retail goods
2) Consumer Electronics
3) Digital Content
4) Amazon games
5) Amazon arts
6) Amazon instant videos
7) Amazon web services
1) Large range of product Selection
2) Low Price
3) Fast delivery experience
Opportunities for Amazon in India
1) Large percentage of population subscribed to broadband Internet burgeoning 3G internet users, and a recent introduction of 4G across the country.
2) 52 million active internet user, of which 40% have experienced the online purchase.
3) Explosive growth of smartphone users, with the second largest user base in the world.
4) Increase in the per capita income of middle class and the boom of technology through IT industry.
5) India is the 3rd largest English book publisher in the market.
6) Availability of much wider product range including long-tail and direct imports compared to brick and mortar retailers.
7) Competitive prices as compared to brick and mortar retail, as the online is driven by disintermediation, reduced inventory and real estate costs.
8) Increased usage of online classified sites, with more consumer buying and selling second-hand goods.
E-Commerce industry in India:
India being the third largest internet user base across the globe approx. 260mn as of Jan 2015 the penetration of the internet is low Vis-à-vis to US, UK and France. But the number of user are growing much faster and there is almost 6 Mn new entrant every month.
In India, the most preferred method of payment is cash on delivery, accumulating 75% of the e-retail activities. The consumer nowadays are preferring more of the international product from authorized distributors and e-commerce offering than in-country supply. As of Q1 2015, there are seven e-commerce company in India which got valuation of more than $1bn. While Flipkart and Snapdeal are the nearest competition to Amazon India.
India e-commerce industry worth was $3.8bn in 2009, which went up to $12.6bn by 20113. The major contributor for the e-retail industry is from travel, electronics and apparel. According to the google there are 35 million online shoppers in India who have used different sites in year 2014 and are expected to cross the mark of 100 million by 2016. The CAGR of online market vis-à-vis to global growth is 8-10%.
To cross $1 billion in revenues from India, as the country is one of its fastest growing markets globally.
1) Featured and user-friendly website
2) Global mobile app
3) Focusing on digital marketing channels for potential customers
4) Simpler review and rating system
Integrating other tools in their marketing strategy has given them wonderful hike in their business.
- Sales promotion: Coupons and price-offs
- Direct Marketing: Phone call and direct mail
Objectives of Amazon Marketing Communications
The main objectives of Amazon marketing communications strategy are to:
1. Increase customer traffic to their different websites
2. Create awareness of products and services
3. Promote repeat purchases
4. Develop incremental product and service revenue opportunities
5. Strengthen the Amazon.com brand name
Social Media Strategy of Amazon
Amazon has social media presence on Facebook, Twitter, Pinterest, Tumblr, Instagram, Quora, YouTube, Vine, LinkedIn and Google+.
#AmazonCart has amazed with its sheer techzard (tech + wizard) attitude. Customer who are looking Twitter to find a tweet on their timeline by Amazon India which offered a direct add to the cart option by tweeting to them.
On digital, the brand started talking about seller stories since early last year. The YouTube channel Amazon India Seller University has playlists which have a bunch of inspiring seller stories. The below embedded video is a story of a young girl from Anand, Gujarat who started as a small seller of mobile accessories and today has grown her business with the help of Amazon India.
Youtube & TV ads #aurdikhao
The objective behind the campaign is to penetrate deeper in Tier II and III cities where the campaign will do well. This is an attempt to take a global brand like Amazon to masses,” he says. It is targeting consumers
between 18 to 45 years of age, who have internet access. The campaign have more than 15000 subscribers for the same.
“The ad film starts with a man who gets home from office and helps himself to some cake in the fridge. As he does this, his wife interrupts him reminding about it being ‘karva chauth’ (a day of fasting). As he realises this, to make amends he is seen swiping across a smartphone screen logged into Amazon.”
“The film then shows a family of four on a vacation as they try to pick between photographers at a tourist spot. The next bit is about a Gujarati family on a flight as they bring out tiffins of all sizes containing a variety of snacks. The film progresses to show a young Sikh boy mimicking the dancing styles of different Bollywood actors.”
This is a play on a typical Indian shopper’s tendency to always look at a lot of options to choose from before making a purchase. The film ends urging the viewers to download the Amazon app and enjoy the benefit of choice.
They have different pages across the product and services of amazon. This will help them to make their customer aware about the varied product line of amazon and also will increase their brand awareness as well as share and likes. There are across 0.5 million likes for amazon India page and almost 0.3 million likes on amazon kindle page.
Competitive Advantage of Amazon
1) The positive reviews of customer after buying the product from their site.
2) Niche product like e-books.
3) Value added differentiation that Amazon wants to give by focused information system, customer preferences and automation.
4) Price control through strategic alliances.
5) Superior customer Service.
Sales and Success growth of Amazon India
Although the company, which started operations in June 2013, does not share details of sales, it is understood to have crossed the $1 billion mark in September last year. Amazon’s CEO, Jeff Bezos in his first visit to India after the company started its operations in the country, had told that India had surpassed his highest expectations and he had promised to keep the money tap open after first committing to invest $2 billion.
Experts say one of the reasons for the company’s speedy growth could be its positioning to offer an array of goods — from books to adult diapers — across cities. Amazon India’s director-category management, Samir Kumar, had told in an interview, “Since the launch, we have been coming up with one new category every 14-15 days.”
In October 2014, a company had about its discount sales push ‘Online Shopping Dhamaka’, “Amazon India seller club that has over Rs 1 crore monthly sales grew 50% during the festive season and those with over Rs 10 crore monthly sales seller club grew five times.”
Over the past years, Digital Marketing has evolved rapidly and so has Social Media Marketing. It has become an important platform for online marketing.
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Image Credits: Amazon