Marketing plan for amazon

1. Marketing plan for amazon • Presented by Group 3 • Varun Kanoi • Ishtiba Meeajane • Aditya Mehta • Aaina Jain

2. Background • Founded in 1995 • Started as an on-line book store • Became America’s largest on-line retailer • 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)

3. Background • Revenues in 2008 US$ 19.166 billion • Free shipping for some products • Latest products available at affordable prices • In 2008 Amazon had 76 million active customers • Launched new product: Kindle e-reader - innovative, simple to use, user friendly

4. Market analysis • Amazon’s competitors • Barnes & Noble.com • physical bookstores also • designed with comfort and convenience • Ebay.com • much larger than Amazon.com • offers live auctions and bidding for customers. • User friendly and reliable • Affiliate programs – make customers get money • The Book Depository • User friendly, better usability • Columbia House • Can buy music • Google Book Search • Can read books online

5. 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

6. Layers of brand Self-expression New generation of shoppers -

7. Porter’s 5 force model

8. Bcg model

9. Kano model Customer reviews Kindle e-reader One click service Online shopping

10. Trend analysis WELL-BEING CLAIM VALIDATION Reliable online service Door-to- door delivery FUNCTIONAL

11. Brand Analysis MODERN Amazon.com website Amazon website 1995-2009 Amazon Kindle e-reader 2009 SP.OCASSION EVERYDAY EVERYDAY

12. Brand perception The best and convenient online book store Make Amazon synonymous to Books and Accessories • customer • Reviews • Safe online buying • ‘see inside’ features for books • shows other books bought in same genre

13. Customer profile

14. CUSTOMER COMPLAINTS • CUSTOMER BLOG • LOOK FOR THEIR FEEDBACK • CALL THEM instead of mailing them back • CARESS OFFICERS

15. SWOT Analysis :

16. Product Life cycle Curve for Amazon 2009 1994 2000 • By 2000, Internet penetration & usage higher • Online purchasing start to grow • In 2009, online buying is more popular • Easy, reliable and more convenient mode

17. Amazon.com • Gap • Position • Brand Image • Brand Identity • Price • Advertising Strategy • Place • Design • Make shopping easier • Convenient Online retailer • Convenient and Reliable • Reliable, cheapest and convenient • Cheapest prices • Image - Online • Mass • User-friendly, customer driven

18. Amazon new product KINDLE • USP • 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 • Weakness • Available only in black and white display • No backlight for display • Available only in US

19. 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

20. How? • 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

21. Market segmentation Amazon Kindle • Target audience • 17-45 , both male and female • Higher income groups • The Technology savvy and reading lovers • Understanding the customers • 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

22. Strategy • To make Amazon Kindle e-reader the most user friendly product synonymous to convenient & new life style

23. Marketing plan • Channels used • Media • TV • Radio • Internet - online sites for ads like Facebook , Orkut • Promotion • Outdoor Events • Online buying experience • Online games • Free delivery on special occasions • Corporate Social responsibility • Contribute to poor children education – NGO’s , orphanage

24. Promotion • Competition at malls - • 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 • Read the news on Kindle as you travel • 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

25. 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 • @Beach • 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

26. Media • TV ads • 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 • Teaser • Like its time to throw your books – don’t need it now! • Show the reason after: Kindle e-reader with its benefits • Radio • Sponsor radio programs, same like TV ad come and win at your local library • Internet • Banners through other websites like Facebook , on blogs, websites associated to reading • Online gaming sites – play word games/

27. Corporate social responsibility • Tie-up with UNICEF or any NGO that promote children education • For each purchase of Kindle- $ 0.5 will go to an NGO providing education for poor children

28. EVALUATION OF MARKETING PLAN INVOLVED ACTIVE PASSIVE IMMERSED

29. Questions