Principles of marketing

Executive Summary

The study aims with delivering the values and understands core components of a brand called Amazon and identifying its process of gaining new market share. The report discusses overall componential analysis of the existing brand values and brand identity. An explanation of the new product is also given. Research method is identified a secondary qualitative. There is comparative analysis given on brand image and why it is important to become competitive. This brand is having a good amount of revenue and the idea is to ensure complete brand positioning.

Introduction

This study identifies brand values, brand extension criteria’s, and provides critical analysis of the target market for the chosen brand Amazon. Amazon is an organization that comes along with 263.5 billion net sales and it has acquired over 50% of the US print book market. Amazon prime day sale accounts of 4.19 billion US dollars and shoppers are rating it in the highest paid category (amazon.com, 2021). New research from the Mintel store has revealed that 86% of Brits are shoppers of Amazon. More Amazon shoppers have increased their shopping as 21% than the retailing of offline. Amazon customers are 70% of the times shop online and hence it defined their market share. 39% of times there are hardcopy media purchased from Amazon, it also consists of 30% of the fashion jewelry and toys (mintel.com, 2021). “45% of households in the UK have some form of Amazon produced device, with Kindle (23%), Fire TV/TV Stick (16%), Fire Tablet (14%), and Echo (11%) proving the most popular (mintel.com, 2021)”.

Methodology

This research is conducted using secondary analysis and there are Mintel reports, WARC reports that are taken into consideration before citing data (Srimathi, and Gayathri, 2019). The Alexa has not just been a device anymore it has become an important part of the household (Warc.com, 2021).

Findings

There are findings that include overall market research values and key extensions of the marketing process. With a new product launch, Amazon is getting maximum benefits and requires sharing and showing off the consolidated information (West, 2019).

Existing brand and Brand Values

The brand value is aligned with Amazon basics. This brand is extended with the name of Amazonbasics. They are launching a range of products with high capabilities under this brand name. In 2020, the brand value reached up to $220791 million with 27% of EV (Srimathi, and Gayathri, 2019). It supports healthy user experience along with sincerity and competency development on industry supporting and reliable understanding of competency investments.

Brand identity prism reflects the fast and reliable services along with providing the costumes convenience. The brand developers are environment friendly and culturally diverse. This brand is consisting of innovation and successful optimization of work (Wirl, 2018). A reliable and down to earth nature is found out to be effective. The smile logo Amazon also creates a sustainable indulgence of work within.

Description of the Target Market

Amazon's target market is associated with anyone that shops online. A Mintel report from 2015 has revealed that 90% of internet users have brought an online player just because of the popularity of Amazon (Sarkar, and Pal, 2021). This company targets the persons that are in need of quick and convenient packaging. Middle to upper class people are considered as targets as there are payment modes identified such as Paypal and other UPI based options. Amazon focuses on the consumer purchase behavior and reminds of the product every time a person logs in.

Target market of Amazon

Customers, that are encouraged to use credit, debit cards along with convenient at home shopping experiences are targeted. Moreover, prime programs attract a lot more customers than usual.

Positioning of Amazon

Every business venture is positioned at a transparent and advantageous position. Customer success is important indeed for the development of advertisements that win customers' hearts (Yang et al. 2019). It has a high quality and low price position identified for a development of better market grip.

Analysis of the New Market, Including Trends

Pestle analysis:

It is seen that stability of developed markets, disposable incomes of developed countries and economic recession in China has become primary market related issues. There are more political aspect to be discovered as well [Refer to appendix 1.2].

Ansoff Grid:

Market Penetration

Company attempts to sell existing products in the existing market and does this by serving the people they have already added up as customers. Various product items are identified as electronics, books, clothing and even furniture (Mufti, Mittal, and Gupta, 2021). Creation of new promotions and advertisements are done for deeper penetration inside the market.

Market development

During this phase, the strategy is to sell existing products in new markets. Company also continues to expand in different geographical regions (Singireddy, and Daim, 2018). Different countries are identified to be expanding as well for penetrating in regional markets. Regional markets are covered by launching a website in the language.

Product development

In this stage, new products are launched in the existing market and sell almost everything online to get maximum benefits. “It is the outright leader in the online retail market, holding a 23% share, and is now the fifth-largest retailer, with estimated UK GTV revenue of £13.7 billion in 2018 (mintel.com, 2021)”

Diversification

It refers to launching new products in new markets, which is quite risky. However, they include acquisition of various new businesses operating in new markets along with launching cloud service to enter the software industry.

An Explanation of the New Product

New products are explained in the process of launching and gaining maximum concentration of customers. Amazon echo dot and this comes with competition solely as there is a lack of such products (Krämer, and Kalka, 2017). Same product with a different form is applied in case of echo dot. It is different from the previous version. This is definitely customer centric and companion product as it is expected to work like assistance. Distinctive taste is found out and the young generation likes it to the core.

Comparative Analysis

Conclusion

This study has shown a complete analysis of how a brand becomes ideally engaged within a comparative analysis of records and pricing with new products. The extensions are shown using relevant theories and models.

References

Journals

Krämer, A. and Kalka, R., 2017. How digital disruption changes pricing strategies and price models. In Phantom ex machina (pp. 87-103). Springer, Cham.

Mufti, T., Mittal, P. and Gupta, B., 2021. A Review on Amazon Web Service (AWS), Microsoft Azure & Google Cloud Platform (GCP) Services.

Sarkar, A. and Pal, B., 2021. Competitive pricing strategies of multi channel supply chain under direct servicing by the manufacturer. RAIRO-Operations Research, 55, pp.S1849-S1873.

Singireddy, S.R.R. and Daim, T.U., 2018. Technology Roadmap: Drone Delivery–Amazon Prime Air. In Infrastructure and Technology Management (pp. 387-412). Springer, Cham.

Srimathi, N. and Gayathri, A.S., 2019. IMPACT OF DIGITAL BRANDING ON ONLINE CONSUMER BUYING BEHAVIOUR–A STUDY WITH RESPECT TO AMAZON.

West, E., 2019. Amazon: Surveillance as a service. Surveillance & Society, 17(1/2), pp.27-33.

Wirl, F., 2018. Agency model and wholesale pricing: Apple versus amazon in the e-book market. International Journal of the Economics of Business, 25(2), pp.243-264.

Yang, S., Pan, L. and Liu, S., 2019, July. An online algorithm for selling your reserved IaaS instances in Amazon EC2 marketplace. In 2019 IEEE International Conference on Web Services (ICWS) (pp. 296-303). IEEE.

Appendices

Appendix 1:

1.1 Example Pricing Data

1.2 Pestle analysis:

1.3 Net sales according to geographic location:

Demographic segmentation

Amazon customers are economically and socially have access to the varied and latest technology. Youth population of the country is more attracted towards the product purchasing of Amazon. It also operates in 10 countries without any brick and mortar retail centers. Up to dated policies and leadership has to promote the self-image with updated care policies for consumers. Internationalization along with development of a dominant branding is observed. Useful secondary qualitative research has been identified as a part of justifying the research.

Geographic segmentation

60% of core sales are from North America and it has expanded a large market variance in Japan, UK and Germany. It has an aim to capture the market of Spain and Netherland as well

Psychographic segmentation

It typically sets the target of modern, traditional and conservative society. Middle and upper class customers are preferably choosing online products at affordable prices.