“MARKETING STRATEGY & SALES PROMOTION

TOWARDS AMAZON”

A Project Report

Submitted in partial fulfillment of the requirements for the

award of degree of
MASTER OF BUSINESS ADMINISTRATION
HUMAN RESOURCE (MARKETING)

Submitted by
Pankhuri Taneja
Registration Number: 322101298

Submitted to
LOVELY PROFESSIONAL UNIVERSITY PHAGWARA, PUNJAB

Centre for Distance and Online Education

LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA, PUNJAB

2022-2024

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 Student’s Declaration

To whom so ever it may concern

I, Pankhuri Taneja, Reg. No. 322101298, hereby declare that the work done by me

on “MARKETING STRATEGY & SALES PROMOTION TOWARDS

AMAZON” is a record of original work for the partial fulfilment of the

requirements for the award of the degree, MBA (Marketing).

Pankhuri Taneja (322101298)

Dated:26/07/2024

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 Date:23/07/2024

CERTIFICATE

This is to certify that Pankhuri Taneja (Reg. No. 322101298) student of MBA 4th

semester from Lovely Professional University, Phagwara, Punjab has been

successfully completed her capstone project entitled “MARKETING

STRATEGY & SALES PROMOTION TOWARDS AMAZON”. During her

project tenure in the company, we found him hard working, sincere and diligent

person and her behaviour and conduct was good. We wish her all the best for his

future endeavors.

For Authorized Signatory

Debasish Das
Sales Manager

Address: 143, Patparganj Industrial Area, Patparganj, New Delhi, Delhi, 110092

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 ACKNOWLEDGEMENT

Every work constitutes great deal of assistance and guidance from the people

concerned and this particular project is of no exception.

A project of the nature is surely a result of tremendous support, guidance,

encouragement and help.

Wish to place on record my sincere gratitude to Centre for Distance and Online

Education, Lovely Professional University, Punjab, for giving me opportunity to complete

my project.

Also, wish to acknowledge enthusiastic encouragement and support extended to me

by my family members. At last, I would like to thank all the faculty of business

management to help me completing this project.

I’m also thankful to my friends who provided me their constant support and assistance.

Pankhuri Taneja (322101298)

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 ABSTRACT

Amazon, a global e-commerce leader, employs a multifaceted marketing strategy and

dynamic sales promotion techniques to maintain its market dominance. The company’s

marketing strategy is centered around customer obsession, which drives its innovation

and business practices. Amazon focuses on leveraging data analytics to personalize

customer experiences, optimize search algorithms, and enhance user interfaces, thus

improving customer satisfaction and loyalty.

Key components of Amazon's marketing strategy include:

1. Customer-Centric Approach: Amazon prioritizes customer needs and preferences,

offering a vast selection of products, competitive pricing, and convenience through

fast delivery services like Prime. Personalized recommendations and tailored

marketing campaigns are based on extensive data collection and analysis.

2. Technology and Innovation: Amazon invests heavily in technology and innovation,

from advanced logistics and fulfilment centres to cutting-edge AI and machine

learning for product recommendations and inventory management. This technological

edge allows Amazon to offer a seamless shopping experience.

3. Brand Equity and Market Presence: Amazon builds strong brand equity through

consistent messaging, high-quality customer service, and strategic partnerships. The

company’s brand is synonymous with convenience, reliability, and variety.

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 Table of Contents

S. No. Title Page no.

1 Declaration by Student 2

2 Certificate 3

3 Acknowledgement 4

4 Abstract 5
5 List of Charts 7

6 List of Tables 7

7 List of Schemes 8-9

8 List of Abbreviations 10
9 Chapter-1 Introduction 11-34

10 Chapter-2 Review of Literature 35-43

a) Company Profile
b) Objective of Study
c) Need of Study
11 Chapter-3 Implementation of project 44-55
d) Research Methodology
e) Data Analysis and Interpretation
12 Chapter-4 Result and Discussion 56-58
13 Finding 59
14 Final Chapter- Conclusion and Future Scope 60-61
15 Suggestion 62

16 Annexures 63-66
 References
 Questionnaire

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 LIST OF CHARTS
Chart Title Page no.
No.
1 E-Retailing: Strategic Group Analysis 36
2 Internet Usage 37

LIST OF TABLES

Table Title Page no.

No.
1 Gender of Respondents 46
2 Age group 46
3 Occupation 47
4 You know about Amazon 48
5 Company’s product is you using 49
6 Company provides better Quality 50
7 Company gives you better Satisfaction 51
8 Company gives you better schemes on retail 52
9 Company Advertisement is better in your view 53
10 Company sales promotion is better in your view 54
11 Company’s marketing strategy 55

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 LIST OF SCHEMES
Marketing strategies and sales promotions are key components of Amazon's success.
Here are some notable schemes and strategies they employ:

1. Amazon Prime
 Features: Annual membership offering free two-day shipping, access to Prime
Video, Prime Music, and other exclusive benefits.
 Promotion Strategy: Frequent free trial offers, student discounts, and bundling
with other Amazon services.

2. Lightning Deals and Daily Deals

 Features: Limited-time offers on a wide range of products.
 Promotion Strategy: Regular updates and alerts through the Amazon app,
website banners, and email notifications to drive urgency and impulsive
purchases.

3. Amazon Prime Day

 Features: An annual shopping event exclusively for Prime members, featuring
deep discounts and special promotions.
 Promotion Strategy: Extensive pre-event advertising across multiple channels,
including social media, email marketing, and affiliate marketing.

4. Coupons and Discounts

 Features: Digital coupons available directly on product pages.
 Promotion Strategy: Regular updates on available coupons, targeted promotions
based on browsing and purchase history.

5. Amazon Subscribe & Save

 Features: Discounts for customers who subscribe to regular deliveries of certain
products.
 Promotion Strategy: Incentives like additional percentage discounts for multiple
subscriptions, prominent placement on product pages, and reminders.

6. Amazon Fresh and Pantry

 Features: Grocery delivery services with exclusive discounts for Prime members.

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 Promotion Strategy: Promotions through Prime membership, special
introductory offers, and bundling discounts.

7. Sponsored Products and Amazon Advertising

 Features: Pay-per-click advertising for sellers to promote their products within
Amazon's search results.
 Promotion Strategy: Extensive use of data analytics to target ads effectively,
offering various ad formats (e.g., Sponsored Products, Sponsored Brands).

8. Customer Reviews and Ratings

 Features: Encouraging customer feedback and showcasing ratings on product

pages.
 Promotion Strategy: Incentives for verified purchases to leave reviews,
leveraging positive reviews in marketing materials.

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 LIST OF ABBREVIATIONS
Here is a list of common abbreviations related to marketing strategy and sales
promotion that could be relevant when discussing Amazon:

1. B2B - Business to Business

2. B2C - Business to Consumer
3. BR - Bounce Rate
4. CAC - Customer Acquisition Cost
5. CRM - Customer Relationship Management
6. CTR - Click-Through Rate
7. CX - Customer Experience
8. D2C - Direct to Consumer
9. KPI - Key Performance Indicator
10. LTV - Lifetime Value
11. PPC - Pay Per Click
12. ROI - Return on Investment
13. SEO - Search Engine Optimization
14. SERP - Search Engine Results Page
15. SMM - Social Media Marketing
16. SMM - Social Media Marketing
17. SMO - Social Media Optimization
18. SWOT - Strengths, Weaknesses, Opportunities, and Threats
19. TAM - Total Addressable Market
20. USP - Unique Selling Proposition
21. WOM - Word of Mouth

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 INTRODUCTION

Marketing strategy

Marketing strategy is the goal of increasing sales and achieving a sustainable competitive

advantage. Marketing strategy includes all basic and long-term activities in the field of

marketing that deal with the analysis of the strategic initial situation of a company and the

formulation, evaluation and selection of market-oriented strategies and therefore contribute to

the goals of the company and its marketing objectives.

Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed to

fill market needs and reach marketing objectives. Plans and objectives are generally tested for

measurable results. Commonly, marketing strategies are developed as multi-year plans, with

a tactical plan detailing specific actions to be accomplished in the current year. Time horizons

covered by the marketing plan vary by company, by industry, and by nation, however, time

horizons are becoming shorter as the speed of change in the environment increases.

Marketing strategies are dynamic and interactive. They are partially planned and partially

unplanned. See strategy dynamics. Marketing strategy needs to take a long-term view, and

tools such as customer lifetime value models can be very powerful in helping to simulate the

effects of strategy on acquisition, revenue per customer and churn rate.

Marketing strategy involves careful and precise scanning of the internal and external

environments. Internal environmental factors include the marketing mix and marketing mix

modeling, plus performance analysis and strategic constraints. External environmental factors

include customer analysis, competitor analysis, target market analysis, as well as evaluation

of any elements of the technological, economic, cultural or political/legal environment likely

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to impact success. A key component of marketing strategy is often to keep marketing in line

with a company's overarching mission statement.

Once a thorough environmental scan is complete, a strategic plan can be constructed to

identify business alternatives, establish challenging goals, determine the optimal marketing

mix to attain these goals, and detail implementation. A final step in developing a marketing

strategy is to create a plan to monitor progress and a set of contingencies if problems arise in

the implementation of the plan.

Marketing Mix Modeling is often used to help determine the optimal marketing budget and

how to allocate across the marketing mix to achieve these strategic goals. Moreover, such

models can help allocate spend across a portfolio of brands and manage brands to create

value.

Diversity of Strategies

Marketing strategies may differ depending on the unique situation of the individual business.

However, there are a number of ways of categorizing some generic strategies. A brief

description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their

market share or dominance of an industry. Typically, there are four types of market

dominance strategies:

 Leader

 Challenger

 Follower

 Nicher

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According to Shaw, Eric (2012). "Marketing Strategy: From the Origin of the Concept to the

Development of a Conceptual Framework". Journal of Historical Research in marketing there

is a framework for marketing strategies.

 Market introduction strategies

"At introduction, the marketing strategist has two principal strategies to choose from:

penetration or niche".

 Market growth strategies

"In the early growth stage, the marketing manager may choose from two additional strategic

alternatives: segment expansion (Smith, Ansoff) or brand expansion (Borden, Ansoff, Kerin

and Peterson, 1978).

 Market maturity strategies

"In maturity, sales growth slows, stabilizes and starts to decline. In early maturity, it is

common to employ a maintenance strategy (BCG), where the firm maintains or holds a stable

marketing mix".

Early marketing strategy concepts

 Borden's "marketing mix"

"In his classic Harvard Business Review (HBR) article of the marketing mix, Borden (1964)

credits James Culliton in 1948 with describing the marketing executive as a 'decider' and a

'mixer of ingredients.' This led Borden, in the early 1950s, to the insight that what this mixer

of ingredients was deciding upon was a 'marketing mix'".

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 Smith's "differentiation and segmentation strategies"

"In product differentiation, according to Smith (1956, p. 5), a firm tries 'bending the will of

demand to the will of supply.' That is, distinguishing or differentiating some aspect(s) of its

marketing mix from those of competitors, in a mass market or large segment, where customer

preferences are relatively homogeneous (or heterogeneity is ignored, Hunt, 2011, p. 80), in an

attempt to shift its aggregate demand curve to the left (greater quantity sold for a given price)

and make it more inelastic (less amenable to substitutes). With segmentation, a firm

recognizes that it faces multiple demand curves, because customer preferences are

heterogeneous, and focuses on serving one or more specific target segments within the

overall market".

 Dean's "skimming and penetration strategies"

"With skimming, a firm introduces a product with a high price and after milking the least

price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective

demand at each price level. With penetration pricing a firm continues its initial low price

from introduction to rapidly capture sales and market share, but with lower profit margins

than skimming".

 Forrester's "product life cycle (PLC)"

"The PLC does not offer marketing strategies, per se; rather it provides an overarching

framework from which to choose among various strategic alternatives".

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Corporate strategy concepts

 Andrews' "SWOT analysis"

"Although widely used in marketing strategy, SWOT (also known as TOWS) Analysis

originated in corporate strategy. The SWOT concept, if not the acronym, is the work of

Kenneth R. Andrews who is credited with writing the text portion of the classic: Business

Policy: Text and Cases (Learned et al., 1965)".

 Ansoff's "growth strategies"

"The most well-known, and least often attributed, aspect of Igor Ansoff's Growth Strategies

in the marketing literature is the term 'product-market.' The product-market concept results

from Ansoff juxtaposing new and existing products with new and existing markets in a two-

by-two matrix".

Porter's "generic strategies"

Porter generic strategies – strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength refers to the

firm's sustainable competitive advantage. The generic strategy framework (porter 1984)

comprises two alternatives each with two alternative scopes. These are Differentiation and

low-cost leadership each with a dimension of Focus-broad or narrow.

 Product differentiation

 Cost leadership

 Market segmentation

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Innovation strategies

Innovation strategies deal with the firm's rate of the new product development and business

model innovation. It asks whether the company is on the cutting edge of technology and

business innovation. There are three types:

 Pioneers

 Close followers

 Late followers

Growth strategies

In this scheme we ask the question, "How should the firm grow?". There are a number of

different ways of answering that question, but the most common gives four answers:

 Horizontal integration

 Vertical integration

 Diversification

 Intensification

These ways of growth are termed as organic growth. Horizontal growth is whereby a firm

grows towards acquiring other businesses that are in the same line of business for example a

clothing retail outlet acquiring a food outlet. The two are in the retail establishments and their

integration lead to expansion. Vertical integration can be forward or backward. Forward

integration is whereby a firm grows towards its customers for example a food manufacturing

firm acquiring a food outlet. Backward integration is whereby a firm grows towards its

source of supply for example a food outlet acquiring a food manufacturing outlet.

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Raymond Miles' Strategy Categories

In 2003, Raymond Miles proposed a more detailed scheme using the categories: Miles,

Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford

University Press. ISBN 0-8047-4840-3.

 Prospector

 Analyzer

 Defender

 Reactor

 Marketing warfare strategies – This scheme draws parallels between marketing strategies

and military strategies.

Strategic models

Marketing participants often employ strategic models and tools to analyze marketing

decisions. When beginning a strategic analysis, the 3C's model can be employed to get a

broad understanding of the strategic environment. An Ansoff Matrix is also often used to

convey an organization's strategic positioning of their marketing mix. The 4Ps can then be

utilized to form a marketing plan to pursue a defined strategy. Marketing Mix Modeling is

often used to simulate different strategic flexing go the 4Ps. Customer lifetime value models

can help simulate long-term effects of changing the 4Ps, e.g.; visualize the multi-year impact

on acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have been

expanded to 7 or 8Ps to address the different nature of services.

There are many companies, especially those in the consumer package goods (CPG) market,

that adopt the theory of running their business centered around consumer, shopper and

retailer needs. Their marketing departments spend quality time looking for "growth
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opportunities" in their categories by identifying relevant insights (both mindsets and

behaviors) on their target consumers, shoppers and retail partners. These growth

opportunities emerge from changes in market trends, segment dynamics changing and also

internal brand or operational business challenges. The marketing team can then prioritize

these growth opportunities and begin to develop strategies to exploit the opportunities that

could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-

sense; dealing with a limited number of factors, in an environment of imperfect information

and limited resources complicated by uncertainty and tight timescales. Use of classical

marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational

development process may be used (if at all) to screen out the worst non-runners. The design

of the advertising, and the packaging, will be the output of the creative minds employed;

which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and

handle the complex, and unique, situations being faced; without easy reference to theory.

This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy,

coupled with the knowledge of the customer which has been absorbed almost by a process of

osmosis, will determine the quality of the marketing employed. This, almost instinctive

management, is what is sometimes called 'coarse marketing'; to distinguish it from the

refined, aesthetically pleasing, form favored by the theorists.

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Marketing planning

A marketing plan may be part of an overall business plan. Solid marketing strategy is the

foundation of a well-written marketing plan. While a marketing plan contains a list of actions,

a marketing plan without a sound strategic foundation is of little use.

The marketing planning Definition and example

A marketing plan is a comprehensive blueprint which outlines an organization's overall

marketing efforts. A marketing process can be realized by the marketing mix, which is

outlined in step 4. The last step in the process is the marketing controlling.

The marketing plan can function from two points: strategy and tactics (P. Kotler, K.L.

Keller). In most organizations, "strategic planning" is an annual process, typically covering

just the year ahead. Occasionally, a few organizations may look at a practical plan which

stretches three or more years ahead.

Marketing planning aims and objectives

Behind the corporate objectives, which in themselves offer the main context for the

marketing plan, will lie the "corporate mission," in turn provides the context for these

corporate objectives. In a sales-oriented organization, the marketing planning function

designs incentive pay plans to not only motivate and reward frontline staff fairly but also to

align marketing activities with corporate mission. The marketing plan basically aims to make

the business provide the solution with the awareness with the expected customers.

This "corporate mission" can be thought of as a definition of what the organization is, or what

it does: "Our business is ...". This definition should not be too narrow, or it will constrict the

development of the organization; a too rigorous concentration on the view that "We are in the

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business of making meat-scales," as IBM was during the early 1900s, might have limited its

subsequent development into other areas. On the other hand, it should not be too wide or it

will become meaningless; "We want to make a profit" is not too helpful in developing

specific plans.

Perhaps the most important factor in successful marketing is the "corporate vision."

Surprisingly, it is largely neglected by marketing textbooks, although not by the popular

exponents of corporate strategy — indeed, it was perhaps the main theme of the book by

Peters and Waterman, in the form of their "Super ordinate Goals." "In Search of Excellence"

said: "Nothing drives progress like the imagination. The idea precedes the deed." If the

organization in general, and its chief executive in particular, has a strong vision of where its

future lies, then there is a good chance that the organization will achieve a strong position in

its markets (and attain that future). This will be not least because its strategies will be

consistent and will be supported by its staff at all levels. In this context, all of IBM's

marketing activities were underpinned by its philosophy of "customer service," a vision

originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on

obtaining a complete and accurate picture.

A "traditional" — albeit product-based — format for a "brand reference book" (or, indeed, a

"marketing facts book") was suggested by Godley more than three decades ago:

1. Financial data—Facts for this section will come from management accounting,

costing and finance sections.

2. Product data—from production, research and development.

3. Sales and distribution data — Sales, packaging, distribution sections.

4. Advertising, sales promotion, merchandising data — Information from these

departments.

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 5. Market data and miscellany — From market research, who would in most cases act as

a source for this information. His sources of data, however, assume the resources of a

very large organization. In most organizations they would be obtained from a much

smaller set of people (and not a few of them would be generated by the marketing

manager alone).

The structure of the facts book will be designed to match the specific needs of the

organization, but one simple format — suggested by Malcolm McDonald — may be

applicable in many cases. This splits the material into three groups:

1. Review of the marketing environment. A study of the organization's markets,

customers, competitors and the overall economic, political, cultural and technical

environment; covering developing trends, as well as the current situation.

2. Review of the detailed marketing activity. A study of the company's marketing mix;

in terms of the 7 Ps - (see below)

3. Review of the marketing system. A study of the marketing organization, marketing

research systems and the current marketing objectives and strategies. The last of these

is too frequently ignored. The marketing system itself needs to be regularly

questioned, because the validity of the whole marketing plan is reliant upon the

accuracy of the input from this system, and `garbage in, garbage out' applies with a

vengeance.

 Portfolio planning. In addition, the coordinated planning of the individual

products and services can contribute towards the balanced portfolio.

 80:20 rule. To achieve the maximum impact, the marketing plan must be clear,

concise and simple. It needs to concentrate on the 20 percent of products or

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 services, and on the 20 percent of customers, that will account for 80 percent of

the volume and 80 percent of the profit.

 7 Ps: Product, Place, Price and Promotion, Physical Environment, People,

Process. The 7 Ps can sometimes divert attention from the customer, but the

framework they offer can be very useful in building the action plans.

It is only at this stage (of deciding the marketing objectives) that the active part of the

marketing planning process begins. This next stage in marketing planning is indeed the key to

the whole marketing process.

The "marketing objectives" state just where the company intends to be at some specific time

in the future.

James Quinn succinctly defined objectives in general as: Goals (or objectives) state what is

to be achieved and when results are to be accomplished, but they do not state "how" the

results are to be achieved.[3] They typically relate to what products (or services) will be where

in what markets (and must be realistically based on customer behavior in those markets).

They are essentially about the match between those "products" and "markets." Objectives for

pricing, distribution, advertising and so on are at a lower level, and should not be confused

with marketing objectives. They are part of the marketing strategy needed to achieve

marketing objectives. To be most effective, objectives should be capable of measurement and

therefore "quantifiable." This measurement may be in terms of sales volume, money

value, market share, percentage penetration of distribution outlets and so on. An example of

such a measurable marketing objective might be "to enter the market with product Y and

capture 10 percent of the market by value within one year." As it is quantified it can, within

limits, be unequivocally monitored, and corrective action taken as necessary.

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The marketing objectives must usually be based, above all, on the organization's financial

objectives; converting these financial measurements into the related marketing

measurements. He went on to explain his view of the role of "policies," with which strategy is

most often confused: "Policies are rules or guidelines that express the 'limits' within which

action should occur. "Simplifying somewhat, marketing strategies can be seen as the means,

or "game plan," by which marketing objectives will be achieved and, in the framework that

we have chosen to use, are generally concerned with the 8 P's. Examples are:

1. Price — The amount of money needed to buy products

2. Product — The actual product

3. Promotion (advertising)- Getting the product known

4. Placement — Where the product is sold

5. People — Represent the business

6. Physical environment — The ambiance, mood, or tone of the environment

7. Process — The Value-added services that differentiate the product from the

competition (e.g. after-sales service, warranties)

8. Packaging — How the product will be protected

(Note: At GCSE the 4 Ps are Place, Promotion, Product and Price and the "secret" 5th P is

Packaging, but which applies only to physical products, not services usually, and mostly

those sold to individual consumers)

In principle, these strategies describe how the objectives will be achieved. The 7 Ps are a

useful framework for deciding how the company's resources will be manipulated

(strategically) to achieve the objectives. However, they are not the only framework, and may

divert attention from the real issues. The focus of the strategies must be the objectives to be

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achieved — not the process of planning itself. Only if it fits the needs of these objectives

should you choose, as we have done, to use the framework of the 7 Ps.

The strategy statement can take the form of a purely verbal description of the strategic

options which have been chosen. Alternatively, and perhaps more positively, it might include

a structured list of the major options chosen.

One aspect of strategy which is often overlooked is that of "timing." Exactly when it is the

best time for each element of the strategy to be implemented is often critical. Taking the right

action at the wrong time can sometimes be almost as bad as taking the wrong action at the

right time. Timing is, therefore, an essential part of any plan; and should normally appear as a

schedule of planned activities. Having completed this crucial stage of the planning process, to

re-check the feasibility of objectives and strategies in terms of the market share, sales, costs,

profits and so on which these demand in practice. As in the rest of the marketing discipline,

employ judgment, experience, market research or anything else which helps for conclusions

to be seen from all possible angles.

Detailed plans and programs

At this stage, overall marketing strategies will need to be developed into detailed plans and

program. Although these detailed plans may cover each of the 7 Ps (marketing mix), the

focus will vary, depending upon the organization's specific strategies. A product-oriented

company will focus its plans for the 7 Ps around each of its products. A market or

geographically oriented company will concentrate on each market or geographical area. Each

will base its plans upon the detailed needs of its customers, and on the strategies chosen to

satisfy these needs. Brochures and Websites are used effectively.

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Again, the most important element is, the detailed plans, which spell out exactly what

programs and individual activities will carry at the period of the plan (usually over the next

year). Without these activities the plan cannot be monitored. These plans must therefore be:

 Clear - They should be an unambiguous statement of 'exactly' what is to be done.

 Quantified - The predicted outcome of each activity should be, as far as possible,

quantified, so that its performance can be monitored.

 Focused - The temptation to proliferate activities beyond the numbers which can be

realistically controlled should be avoided. The 80:20 Rule applies in this context to.

 Realistic - They should be achievable.

 Agreed - Those who are to implement them should be committed to them, and agree that

they are achievable. The resulting plans should become a working document which will

guide the campaigns taking place throughout the organization over the period of the plan.

If the marketing plan is to work, every exception to it (throughout the year) must be

questioned; and the lessons learnt, to be incorporated in the next year’s.

Content of the marketing plan

A marketing plan for a small business typically includes Small Business Administration

Description of competitors, including the level of demand for the product or service and the

strengths and weaknesses of competitors.

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 SALES PROMOTION

Sales promotion is one level or type of marketing aimed either at the consumer or at the

distribution channel (in the form of sales-incentives). It is used to introduce new product,

clear out inventories, attract traffic, and to lift sales temporarily. It is more closely associated

with the marketing of products than of services. The American Marketing Association

(AMA), in its Web-based "Dictionary of Marketing Terms," defines sales promotion as

"media and non-media marketing pressure applied for a predetermined, limited period

of time in order to stimulate trial, increase consumer demand, or improve product

availability." Business pundits and academic students of business have developed almost

fancifully sophisticated views of sales promotion. In down-to-earth terms it is a way of lifting

sales temporarily by appealing to economic motives and impulse-buying behavior. The chief

tools of sales promotion are discounts ("sales"), distribution of samples and coupons, the

holding of sweepstakes and contests, special store displays, and offering premiums and

rebates. All of these techniques require some kind of communication. Thus, sales promotion

and advertising are difficult to distinguish. The need for promotion arises from the intensity

of competition. Sellers must somehow attract customers' attention. In the open markets of old

(and farmers’ markets of today), sellers did and do this by shouting, joking with customers,

and sometimes by holding up a squealing piglet for everyone to see. Three faces of consumer

promotions: these are information, economic incentive, and emotional appeal. Information

may take the form of advertising the availability of something, incentives are offered in the

form of discounts, and emotional appeals are made by displays and, of course, by the low

price itself.

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GROWTH OF SALES PROMOTION

Craig Endicott and Kenneth Wylie, writing for Advertising Age in the magazine's 62nd

annual Agency Report, indicate a continued shift of revenues in advertising from traditional

to new forms of media. They label the new forms as "marketing services" and comment as

follows: "Marketing services—identified as all forms of interactive, sales promotion and

direct marketing in this report—grew 11.3% to $7.66 billion in revenue in the U.S. [in 2005];

traditional advertising and its media component advanced to $12.02 billion, a 5.1% advance

that was slightly stronger than last year."

The growth of sales promotion, a significant portion of total marketing services expenditures,

is no doubt in part due to the proliferation of media channels by cable, the availability of the

Internet to channel direct marketing messages, and simply the fact that advertising has

become so ubiquitous it has become less effective: people tune (or mute) it out.

CONSUMER PROMOTIONS

Consumer sales promotions are steered toward the ultimate product users—typically

individual shoppers in the local market—but the same techniques can be used to promote

products sold by one business to another, such as computer systems, cleaning supplies, and

machinery. In contrast, trade sales promotions target resellers—wholesalers and retailers—

who carry the marketer's product. Following are some of the key techniques used in

consumer-oriented sales promotions.

Price Deals

A consumer price deal saves the buyer money when a product is purchased. The main types

of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price

27
deals are usually intended to encourage trial use of a new product or line extension, to recruit

new buyers for a mature product, or to convince existing customers to increase their

purchases, accelerate their use, or purchase multiple units. Price deals work most effectively

when price is the consumer's foremost criterion or when brand loyalty is low. Buyers may

learn about price discounts either at the point of sale or through advertising. At the point of

sale, price reductions may be posted on the package, on signs near the product, or in

storefront windows. Many types of advertisements can be used to notify consumers of

upcoming discounts, including fliers and newspaper and television ads. Price discounts are

especially common in the food industry, where local supermarkets run weekly specials. Price

discounts may be initiated by the manufacturer, the retailer, or the distributor. For instance, a

manufacturer may "pre-price" a product and then convince the retailer to participate in this

short-term discount through extra incentives. For price reduction strategies to be effective,

they must have the support of all distributors in the channel. Existing customers perceive

discounts as rewards and often respond by buying in larger quantities. Price discounts alone,

however, usually do not induce first-time buyers.

Another type of price deal is the bonus pack or banded pack. When a bonus pack is offered,

an extra amount of the product is free when a standard size of the product is bought at the

regular price. This technique is routinely used in the marketing of cleaning products, food,

and health and beauty aids to introduce a new or larger size. A bonus pack rewards present

users but may have little appeal to users of competitive brands. A banded pack offer is when

two or more units of a product are sold at a reduction of the regular single-unit price.

Sometimes the products are physically banded together, such as in toothbrush and toothpaste

offers.

28
A refund or rebate promotion is an offer by a marketer to return a certain amount of money

when the product is purchased alone or in combination with other products. Refunds aim to

increase the quantity or frequency of purchase, to encourage customers to "load up" on the

product. This strategy dampens competition by temporarily taking consumers out of the

market, stimulates the purchase of postponable goods such as major appliances, and creates

on-shelf excitement by encouraging special displays. Refunds and rebates are generally

viewed as a reward for purchase, and they appear to build brand loyalty rather than diminish

it.

Coupons are legal certificates offered by manufacturers and retailers. They grant specified

savings on selected products when presented for redemption at the point of purchase.

Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their

face values, and paying retailers a handling fee. Retailers who offer double or triple the

amount of the coupon shoulder the extra cost. Retailers who offer their own coupons incur

the total cost, including paying the face value. In this way, retail coupons are equivalent to a

cents-off deal.

Manufacturers disseminate coupons in many ways. They may be delivered directly by mail,

dropped door to door, or distributed through a central location such as a shopping mall.

Coupons may also be distributed through the media—magazines, newspapers, Sunday

supplements, or free-standing inserts (FSI) in newspapers. Coupons can be inserted into,

attached to, or printed on a package, or they may be distributed by a retailer who uses them to

generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-sponsored

coupons are typically distributed through print advertising or at the point of sale. Sometimes,

though, specialty retailers or newly opened retailers will distribute coupons door to door or

through direct mail.

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Contests/Sweepstakes

The main difference between contests and sweepstakes is that contests require entrants to

perform a task or demonstrate a skill that is judged in order to be deemed a winner, while

sweepstakes involve a random drawing or chance contest that may or may not have an entry

requirement. At one time, contests were more commonly used as sales promotions, mostly

due to legal restrictions on gambling that many marketers feared might apply to sweepstakes.

But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades,

partly because of legal changes and partly because of their lower cost. Furthermore,

participation in contests is very low compared to sweepstakes, since they require some sort of

skill or ability.

Premiums

A premium is tangible compensation that is given as an incentive for performing a particular

act—usually buying a product. The premium may be given for free, or may be offered to

consumers for a significantly reduced price. Some examples of premiums include receiving a

prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store.

Incentives that are given for free at the time of purchase are called direct premiums. These

offers provide instant gratification, plus there is no confusion about returning coupons or box

tops, or saving bar codes or proofs of purchase.

Other types of direct premiums include traffic builders, door openers, and referral premiums.

The garden tool is an example of a traffic-builder premium—an incentive to lure a

prospective buyer to a store. A door-opener premium is directed to customers at home or to

business people in their offices. For example, a homeowner may receive a free clock radio for

allowing an insurance agent to enter their home and listening to his sales pitch. Similarly, an

30
electronics manufacturer might offer free software to an office manager who agrees to an on-

site demonstration. The final category of direct premiums, referral premiums, reward the

purchaser for referring the seller to other possible customers.

Continuity Programs

Continuity programs retain brand users over a long time period by offering ongoing

motivation or incentives. Continuity programs demand that consumers keep buying the

product in order to get the premium in the future. Trading stamps, popularized in the 1950s

and 1960s, are prime examples. Consumers usually received one stamp for every dime spent

at a participating store. The stamp company provided redemption centers where the stamps

were traded for merchandise. A catalog listing the quantity of stamps required for each item

was available at the participating stores. Today, airlines' frequent-flyer clubs, hotels' frequent-

traveler plans, retailers' frequent-shopper programs, and bonus-paying credit cards are

common continuity programs. When competing brands have reached parity in terms of price

and service, continuity programs sometimes prove a deciding factor among those

competitors. By rewarding long-standing customers for their loyalty, continuity programs

also reduce the threat of new competitors entering a market.

Sampling

A sign of a successful marketer is getting the product into the hands of the consumer.

Sometimes, particularly when a product is new or is not a market leader, an effective strategy

is giving a sample product to the consumer, either free or for a small fee. But in order for

sampling to change people's future purchase decisions, the product must have benefits or

features that will be obvious during the trial.

31
There are several means of disseminating samples to consumers. The most popular has been

through the mail, but increases in postage costs and packaging requirements have made this

method less attractive. An alternative is door-to-door distribution, particularly when the items

are bulky and when reputable distribution organizations exist. This method permits selective

sampling of neighborhoods, dwellings, or even people. Another method is distributing

samples in conjunction with advertising. An ad may include a coupon that the consumer can

mail in for the product, or it may include an address or phone number for ordering. Direct

sampling can be achieved through prime media using scratch-and-sniff cards and slim foil

pouches, or through retailers using special displays or a person hired to hand out samples to

passing customers. Though this last technique may build goodwill for the retailer, some

retailers resent the inconvenience and require high payments for their cooperation.

TRADE PROMOTIONS

A trade sales promotion is targeted at resellers—wholesalers and retailers—who distribute

manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed

at the trade are different from those directed at consumers. In general, trade sales promotions

hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support

at the retail store level is the key to closing the loop between the customer and the sale. 2)

Control inventory by increasing or depleting inventory levels, thus helping to eliminate

seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas

(trade promotions are also sometimes used to distribute a new size of the product). 4)

Generate excitement about the product among those responsible for selling it. Some of the

more common forms of trade promotions—profiled below—include point-of-purchase

displays, trade shows, sales meetings, sales contests, push money, deal loaders, and

promotional allowances.

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Point-of-Purchase (POP) Displays

Manufacturers provide point-of-purchase (POP) display units free to retailers in order to

promote a particular brand or group of products. The forms of POP displays include special

racks, display cartons, banners, signs, price cards, and mechanical product dispensers.

Probably the most effective way to ensure that a reseller will use a POP display is to design it

so that it will generate sales for the retailer.

High product visibility is the basic goal of POP displays. In industries such as the grocery

field where a shopper spends about three-tenths of a second viewing a product, anything

increasing product visibility is valuable. POP displays also provide or remind consumers

about important decision information, such as the product's name, appearance, and sizes. The

theme of the POP display should coordinate with the theme used in ads and by salespeople.

Trade Shows

Thousands of manufacturers display their wares and take orders at trade shows. In fact,

companies spend over $9 billion yearly on these shows. Trade shows provide a major

opportunity to write orders for products. They also provide a chance to demonstrate products,

disseminate information, answer questions, and be compared directly to competitors. Related

to trade shows, but on a smaller scale, are sales meetings sponsored by manufacturers or

wholesalers.

Whereas trade shows are open to all potential customers, sales meetings are targeted toward

the company's sales force and/or independent sales agents. These meetings are usually

conducted regionally and directed by sales managers. The meetings may be used to motivate

sales agents, to explain the product or the promotional campaign, or simply to answer

questions. For resellers and salespeople, sales contests can also be an effective motivation.

33
Typically, a prize is awarded to the organization or person who exceeds a quota by the largest

percentage.

Deal Loaders

A deal loader is a premium given by a manufacturer to a retailer for ordering a certain

quantity of product. Two types of deal loaders are most typical. The first is a buying loader,

which is a gift given for making a specified order size. The second is a display loader, which

means the display is given to the retailer after the campaign. For instance, General Electric

may have a display containing appliances as part of a special program. When the program is

over, the retailer receives all the appliances on the display if a specified order size was

achieved.

34
 COMPANY PROFILE

Amazon.com Overview

Amazon.com was one of the first major companies to sell goods over the Internet and has

become a worldwide established name. Amazon.com is an American e-commerce company

that is based in Washington. It was founded by Jeff Bezos in 1994 and began as an online

bookstore but due to its success, Amazon has diversified into other product lines and services

such as groceries, electronics and Merchant Program (see Appendix 1 for detailed portfolio).

Amazon.com’s stock price has fluctuated in recent years from $105 in 1999 to $5 in 2001

(Lauden and Traver, 2000). Amazon.com has developed separate websites for Canada, UK,

Germany, France, China and Japan. Amazon.com vision is to become (Amazon.com, 2007):

“Earth’s biggest selection and to be Earth’s most customer centric company

Analysis
External Analysis
The external environment is referred to as the macro-environment. This includes the broad
environmental factors which will affect organisations at various levels. It is important to
consider the potential impact of the external factors on the individual organisations (Johnson
et al, 2006, P65).

PESTEL Analysis
PESTEL analysis is used to identify how future trends in the political, economic, social,
technological, environmental and legal environments might influence an organisation.

35
Porters Five Forces in the E-Retailing Industry
Porter’s Five Forces analysis is used to assess the attractiveness of different industries, and
therefore, it can help in illustrating the sources of competition in a particular industry

Competitor Analysis

Given the scope of Amazon’s product range, there are hundreds of websites that
Amazon.com competes with. However, for the purpose of economies of scale, many online
retailers are either increasing product line breadth for existing markets, penetrating new
markets with existing products or both. In order to capture the competitiveness of such firms
within the online retail industry, strategic group analysis places emphasis on product line
breadth and geographic markets served (see figure below). From this perspective eBay.com
remains a top player within the group with over 29 geographic locations and 22 product
categories. Amazon.com boasts of 7 geographic locations and 11 product categories.
Amazon.com’s position intensifies the urgency to expand both product line breadth and
market presence in its competition with leader eBay.com (Pitts and Lei, 2006).

E-Retailing: Strategic Group Analysis

Global

Chart-1

36
Global Internet Trends
Internet Usage
Show that the five countries with the highest internet usage are USA, China, Japan,
Germany and India. Amazon.com have a presence in all of these countries except for
India. This indicates a potential opportunity for Amazon.com.

Chart-2

SWOT ANALYSIS

Drawing from the internal and external Analysis, we can summaries Amazon.com’s
strengths, weaknesses, opportunities and threats in the following SWOT Analysis. For a
more detailed SWOT.

37
 Strengths Weaknesses
Global brand No physical presence
Focus on research and development Low profit margins
Strategic location Low cash flows
Customer-centric vision Weak performance in China
Diverse products
Applied advanced technology
Amazon.com’s Merchant Program
Skilled workforce
Strong logistics

Opportunities Threats
Growth in movie downloads Dependent on vendors
Social networking Strong competition
Growth of online shopping in China Patent infringement
Beijing Olympics 2008
Expansion through acquisitions
Growing e-commerce sales
Growth in digital media
Increased consumer spending in India

Strategic Options
Strategic Option 1: Market Development - Acquire a growing, profitable e-retailing
company in India to take advantage of the growing market.

Suitability

 The PESTEL analysis reveals consumer spending is rising in India (Times Online,
2007)
 From the analysis of global internet trends India ranked as the fifth highest in Internet
usage (Internet World Stats, 2007)
 Government policy has targeted three million broadband users, therefore increasing
consumers’ likeliness to shop online (Euromonitor, 2007)
 From the strategic group’s analysis competitors such as Wal-Mart and Tesco aim to

38
 increase their geographic scope and thus may enter the Indian market (Research and
Markets, 2005). Therefore, it is vital for Amazon.com to gain from first mover
advantage to establish its presence

Feasibility
 The SWOT (Appendix 4) reveals that one of the strengths of Amazon.com is the
experience and knowledge in successful acquisition and integration such as
booksurge.com and dpreview.com and Brilliance Audio
 Amazon.com need to borrow to finance the acquisition, which may be problematic as
they are already highly geared at 68%
 By acquiring an Indian e-commerce company, they will also be acquiring the local
knowledge

Acceptability
 Internet users are forecasted to increase 254% from 2006 to 2015, presenting a
growing market and, therefore reducing risk and increasing the potential of high
returns (Euromonitor, 2007).
 Shareholders are more favourable towards long- term investments, such as this
strategy therefore there is a higher chance of acceptability (CEO Letter to
Shareholders, Amazon.com 2006 Annual Report, see Appendix 5)
 By acquiring a company there is the risk of cultural conflict
Strategic Option 2: Service Development - Providing a ‘greener’ delivery option.
Consumers will be given the choice of selecting the standard delivery option or the ‘greener’
delivery option. The ‘green’ option means that the items will be delivered in a biodegradable
plastic container. The consumer will be encouraged to return the box after use in return for a
‘green point’. After collecting a certain number of points, the consumer will be sent an e-
voucher to be spent at Amazon.com. Boxes will be re-used by Amazon.com in future
deliveries, which in the long-term will reduce cost of packaging and ensure less wastage.
Suitability
 This strategy will address the issue of increased environmental awareness,
as highlighted in the PESTLE analysis.
 This is an important issue for the e-retailing industry as all products need to
be sent to customers.

39
  This strategy builds on Amazon.com’s past efforts to maintain environmental
awareness as highlighted in the Resource Based View analysis.

Feasibility
Biodegradable plastic containers, whilst currently available, will require extensive research
by Amazon.com to ensure that all products can be transferred safely to consumers.
Amazon.com has an active research and development department which can be utilized for
this purpose. Amazon.com has highly experienced workers (as shown in the Value Chain)
who should be able to create and manage the new ‘green points’ system and e-vouchers.

Acceptability
There is a risk that the consumers will not return the boxes for re-use. The cost-benefit
mentioned above will therefore not be obtained. As society becomes more socially aware,
consumers will want to make a difference through their packaging choice. Governments
may take an interest in the greener initiative and may support Amazon.com in some
capacity. Value creation and the possibility of reduced costs should lead to increased returns
for shareholders.

Strategic Option 3: Product Development This option recommends the addition of

prescriptive contact lenses to Amazon.com’s product range.

Suitability
 Competitor analysis has identified that Wal-Mart.com and Tesco.com offer this
service, so by choosing this strategy Amazon.com will be able to be competitive.
 The US market for eyeglasses and contact lenses has grown by 3.8% since 2003 to
reach a value of US$19.2 billion in 2004 (see Figure 14)
 An estimated 60% of the US population requires vision correction. This number is
expected to grow as more consumers spend more time working with computers
(Euromonitor, 2008).
 The graph below shows the increase in contact lenses in the geographic regions
where Amazon.com has a presence.

Acceptability

40
Sales of optometric products will increase customer choice in healthcare goods. The initial
investment for this option will be high, however, long-term profitability reduces the overall
financial risk associated.

Strategic Option 4: Market Penetration in China

Amazon.com entered the Chinese e-commerce market in 2004 by taking over Joyo.com
(China IT & E-commerce Report, 2007). However, as the GE matrix indicates, Amazon.com
is underperforming and has lost its position as market leader (Dean, The Wall Street Journal,
2006). In order to address this underperformance, the options below attempt to build a
stronger brand image and increase market share.

Option1 Extensive marketing through various Raising awareness and

medium e.g. TV, outdoor, Press and brand building
Radio

Option2 Increase product range and suitability Increasing market

through introducing the Merchant share and sales
Programme.

Suitability
The PESTLE analysis reveals a high economic growth in China and high consumer
spending
Global internet trends shows that China has the second highest internet usage in the
world
In the GE matrix, China is the most attractive market for Amazon.com

Feasibility
Amazon.com has the resources in skills, experience and knowledge to undertake
global operations successfully as demonstrated in the UK, German and Japanese
markets
Market penetration into China will be less capital intensive than entering a new

41
 market
Amazon.com has successfully implemented the Merchant Program in the U.S.

Acceptability
Amazon.com’s investments in China must be fully harnessed to exploit the market potentials
thus reduces financial risks The Merchant Program will create value for the Chinese
consumers since it increases the chances of local merchants to sell specialized or local
products Penetrating the Chinese market will have long term benefits which increases
shareholder value.

Strategic Option 5: Market Development – Setting up a sales facility via the social
networking website, Facebook. Amazon.com could develop a presence on Facebook to
boost digital media sales. This would involve teaming up with Facebook to create an
Amazon Application. Digital media such as films, mp3s and e-books would be sold via the
Amazon Application and purchased goods would be accessed through Facebook profiles.
The Amazon Application will allow users to create wish-lists that can be sent to friends and
family. Facebook is a global social networking site which is currently undergoing a huge
period growth with more than 150,000 new users sign up daily (TIME Online, 2007); with
44% of US consumers using social networking at least once a month in 2008 (Publishers
Weekly, 2008 p16).

Suitability
This strategy will take advantage of the continued growth in social networking websites (as
shown in the PESTEL Analysis). Gain access to large customer base (Facebook has over 30
million active users) that Amazon.com can target This strategy will also help to increase
awareness and boost sales of digital media.

42
 OBJECTIVE OF STUDY

A survey to analysis understanding and impact of services provided by Amazon.

Objective of study:

1. To analysis the awareness level about Amazon.

2. To understand nature and content of online advertising of Amazon.

3. To analyses the impact of Amazon.

4. To analyses use and importance of Amazon.

43
 RESEARCH METHODOLOGY

Research methodology systematically solves the research problem. It may be understood as a

science of studying how research is done scientifically. In it we study the various step that are
generally adopted by a researcher in studying his research problems along with logic behind
them. It is necessary for the researcher to know not only the research method but also the
methodology. The scope of research methodology is wider than that of research methods.
Thus, when we talk of research methodology, we not only talk of research methods but also
consider the logic behind the methods we use in the context of our research study and explain
what we are using a particular method or techniques and why we are not using others so that
research result are capable of being evaluated either by the researcher or by others.

METHOD OF DATA COLLECTION

The task data collection being collection after a research problem has been defined
and research design chalked out while deciding about the method of data keep in mind two
types of data.

► PRIMARY DATA

► SECONDARY DATA

PRIMARY DATA are those which are collected a fresh and for first time and thus happen to
be original in character. In this project I collected data through scheduling method. This
method of data collection is very much like the collection of data through questionnaire
method. While little differences lies in the fact schedule (Performa to contain a set of
questions) are being in by the Enumerator who are specially appointed for the purpose.

These Enumerators along with schedules go to responded, put them the question from
the perform in the order of question listed and record the replies in the space meant for the
same in the preformed.

SECONDARY DATA Means that are already available i.e they refer to the data which have
already been collected and analyzed by someone else. Secondary data may either be
published data are available.

44
 Thus, we can say that the following methodology has been used to obtain the
necessary information and material for the project work.

DIRECT METHOD: This method involves the direct interaction with the people Lo
collection the relevant information like company personnel, dealers, customer etc, and collect
the information through questionnaires.

INDIRECT METHOD: This method involves the collection of information through

magazines, articles, internet, website, etc, and also the process of drawing the conclusion with
the help of analyzing the question of the questionnaires. I have conducted market research by
visiting various shops and houses.

Data collection: In this project the data has been collected from different people in
different area by conducting informed interviews.

Area covered: Regarding the survey and research I have meet different type of people and
visited various shops, houses, offices in Lucknow market region.

Field market:

It includes giving out in the field to collect required information and data from a concerned
person.

I used to visit various offices conducting a short informal interview which help to know all
the necessary information and data required for the project work under this survey my main
target was to have on interaction with the customers to find out as to what do they perceive
with respect to finance to find out potential of different product of range, financing and
market share of existing players in the market. I conducted my survey through a system of
questions that are field by the customers as well as by me during survey, which has been
included in the report.

Sample size: 100

The survey done from 100 persons in Delhi.

45
 DATA ANALYSIS AND INTERPRETATION
1. Gender of Respondents:
Male Female Total
Responses 58 42 100
Percentage 58 42 100

Gender

42%

58% Male
Female

2. Age Group:

15 -25 25 -35 35 - 45 45 & above Total

No of respondents 63 24 12 1 100
Percentage 63 24 12 1 100

Age Group
1%
12%

15 -25
24%
25 -35
63%
35 - 45
45 & above

46
 3. Occupation:

Business House wife Salaried Student Total

person
No. of respondents 8 7 46 39 100
Percentage 8 7 46 39 100

Occupation

7%
8%
39%
Business person
House wife

46% Salaried
Student

47
 4. How do you know about Amazon?

Advertisement 40

Friend 20

Internet 20

Other 20

20%

40%
Advertisement
Friend
Internet
20%
Other

20%

Interpretation:

40% know about that advertisement, 20% about friend, 20 from internet and 20% are
known another media.

48
 5. Which company’s product are you using?

Amazon 45
Flipkart 55

45%

55%

Interpretation:

45% respondent using Amazon Product, but 55% said that they are using Flipkart
products.

49
 6. Which Company provides better Quality?

Flipkart 40

Amazon 60

40%

60%

Interpretation:

40% respondent said that Flipkart provide better quality & 60% said about Amazon.

50
 7. Which Company gives you better Satisfaction?

Amazon 55

Flipkart 45

45%

55%

Interpretation:

55% respondent said that Amazon gives better satisfaction & 45% said that Flipkart
gives better satisfaction.

51
 8. Which Company gives you better schemes on retail?

Amazon 30

Flipkart 70

30%

70%

Interpretation:

30% respondent said that Amazon gives better schemes on retail, 70% said gives
better schemes on retail.

52
 9. Which Company Advertisement is better in your view?

Amazon 60

Flipkart 40

40%

60%

Interpretation:

60% respondent said that Amazon Products advertisement is better & 40% said
Flipkart.

53
 10. Which company sales promotion is better in your view?

Amazon 35

Flipkart 65

35%

65%

Interpretation:

35% respondent said that Amazon’s sales promotion is better, 65% respondent said
Flipkart’s sales promotion is better.

54
 11. Which company’s marketing strategy is better in your view?

Amazon 47

Flipkart 53

47%

53%

Interpretation:

47% respondent said that Amazon’s marketing strategy is better and 53% said that
marketing strategy is better.

55
 RESULT AND DISCUSSION
Amazon, a global e-commerce giant, has successfully integrated various marketing
strategies and sales promotions to dominate the online retail market. This section
discusses the outcomes of these strategies and the insights derived from analysing their
effectiveness.

 Marketing Strategy
1. Digital Marketing
 Search Engine Optimization (SEO): Amazon has effectively utilized SEO to ensure
its product listings appear prominently in search engine results. This increases
visibility and drives organic traffic to its website.
 Social Media Marketing: Amazon leverages platforms like Facebook, Instagram,
and Twitter to engage with customers, promote products, and share user-generated
content. Their social media campaigns are targeted and often personalized, enhancing
customer engagement.
 Content Marketing: Through blogs, videos, and influencer collaborations, Amazon
educates and informs customers about products, creating value and fostering trust.
Their content is often tailored to address customer needs and preferences.

2. Personalization and Customer Experience

 Personalized Recommendations: Amazon's recommendation engine, powered by
AI and machine learning, suggests products based on user behavior, purchase
history, and browsing patterns. This personalization enhances the shopping
experience and drives sales.
 User Reviews and Ratings: Encouraging customers to leave reviews and ratings
builds social proof and credibility. Amazon’s platform facilitates this, helping new
customers make informed purchasing decisions.

56
 3. Sales Promotion
 Discount Strategies
 Seasonal Sales: Amazon runs major sales events like Prime Day, Black Friday,
and Cyber Monday, offering significant discounts across various categories. These
events create a sense of urgency and attract a large number of shoppers.
 Lightning Deals: Time-limited promotions that offer products at reduced prices
for a short period. This strategy leverages scarcity and urgency to drive quick
sales.

RESULTS

1. Increased Market Share

Amazon's comprehensive marketing strategies and aggressive sales promotions have

significantly increased its market share in various regions. The company's ability to
adapt to local markets while maintaining global consistency has been crucial.

2. Customer Retention and Satisfaction

The focus on personalized experiences and loyalty programs like Amazon Prime has
resulted in high customer retention rates. Satisfied customers are more likely to return
for future purchases, contributing to long-term revenue growth.

3. Sales Growth

Sales promotions, especially during major events, have consistently driven substantial
revenue growth. The success of these promotions can be attributed to effective
targeting, competitive pricing, and seamless execution.

Discussion

1. Effectiveness of Digital Marketing

Amazon's digital marketing efforts are highly effective due to their data-driven
approach. By continuously analyzing customer data, Amazon can tailor its marketing
strategies to meet evolving customer needs and preferences. The integration of AI and
machine learning enhances the accuracy and efficiency of these strategies.

57
 2. Impact of Sales Promotions

Sales promotions, particularly those creating urgency and exclusivity, have proven to
be powerful tools for boosting sales. However, excessive reliance on discounts can
erode profit margins. Amazon balances this by focusing on customer lifetime value
rather than short-term gains.

Challenges and Opportunities

Challenges:

 Competition: The e-commerce space is highly competitive, with new entrants and
existing players constantly innovating.

 Consumer Behavior: Changing consumer preferences and economic factors can

impact purchasing behavior.

Opportunities:

 Expansion into New Markets: Continued global expansion presents significant

growth opportunities.

 Technological Advancements: Leveraging emerging technologies like augmented

reality (AR) and virtual reality (VR) can enhance the shopping experience

58
 FINDINGS

 45% respondent said that they know about Amazon, 35% no, but 20% can’t say.

 40% know about that advertisement, 20% about friend, 20 from internet and 20% are

known another media.

 45% respondent using Amazon Product, but 55% said that they are using Flipkart

Products.

 40% respondent said that Flipkart provide better quality & 60% said about Amazon.

 55% respondent said that Amazon gives better satisfaction & 45% said that Flipkart

gives better satisfaction.

 30% respondent said that Amazon gives better schemes on retail, 70% said gives

better schemes on retail.

 60% respondent said that Amazon Products advertisement is better & 40% said

Flipkart.

 35% respondent said that Amazon’s sales promotion is better, 65% respondent said

Flipkart’s sales promotion is better.

 47% respondent said that Amazon’s marketing strategy is better and 53% said that
marketing strategy is better.

 44% respondent said that Amazon gives best sales strategy but 56% said that Flipkart

gives best sales strategy.

 34% respondent said that Amazon product range is better but 66% said that Flipkart

product range is better.

 47% respondent said that a Amazon sale is better but 53% said that Flipkart sale is
better.

59
 CONCLUSION
It was observed that Amazon has been perceived quite positively as it has been

projected. People are aware of the Brand & Awareness of Amazon is quite high in the

market.

Although Amazon has been into controversies, people still prefer to stay loyal to the

Brand with Amazon being termed as a more popular brand than Flipkart.

Amazon products would appear, on the shelf, to have the most expensive range of skin

care products common to supermarkets, at almost double the cost of no name brands.

This can be for several reasons apart from just to cover the extra costs of promotions,

for which no name brands do without. When people buy Amazon, they are not just

buying the product but also the image that goes with it, therefore to have the price

higher reiterates the fact that the product is of a better quality than the rest and that the

consumer is not cheap.

In supermarkets and convenience stores Amazon has their own setup which contains

only their products. There is little personal selling, but that is made up for in public

relations and corporate image. Amazon sponsors a lot of events including sports and

recreational activities.

60
 FUTURE SCOPE
Amazon's future marketing strategy and sales promotion will likely focus on several
key areas to maintain its competitive edge and continue its growth. Here are some
potential directions:
1. Personalization and AI Integration
Amazon will continue to leverage artificial intelligence and machine learning to enhance
personalization. By analyzing customer data, Amazon can provide tailored
recommendations and targeted promotions, improving customer satisfaction and
increasing sales.
2. Expansion of Prime Membership Benefits
Enhancing Amazon Prime with more benefits such as exclusive deals, faster shipping
options, and access to a wider range of services (like streaming content and grocery
delivery) will attract and retain more customers.
3. Enhanced Use of Voice Commerce
With the increasing popularity of Alexa-enabled devices, Amazon will likely push further
into voice commerce. This includes making it easier for customers to place orders using
voice commands and offering exclusive deals to users of these devices.
4. Global Market Penetration
Amazon will continue expanding its presence in emerging markets. Customized
marketing strategies tailored to local preferences and languages, along with localized
sales promotions, will be crucial in capturing market share in these regions.
5. Sustainability Initiatives
Increasing emphasis on sustainability and eco-friendly practices will be part of Amazon’s
marketing strategy. Highlighting these efforts in promotions can attract environmentally-
conscious consumers and enhance brand image.
6. Innovative Advertising Solutions
Amazon will further develop its advertising platform, offering more sophisticated
targeting options and formats for advertisers. This includes leveraging its vast amount of
customer data to provide highly targeted advertising opportunities.
7. Enhanced Customer Loyalty Programs
Developing and refining loyalty programs beyond Prime, such as personalized discounts,
rewards, and exclusive offers, will help Amazon increase customer retention and lifetime
value.

61
 RECOMMENDATION AND SUGGESTION

 After this study some points emerge which should be implemented by the services

provided by Amazon.

 Amazon should be given more space in Online advertising.

 In Online advertising should be published in colored forms more now days.

 More people for events should be given in the form of online advertising.

62
 REFERNCES
 https://www.wikipedia.org

 https://www.amazon.com/

 https://www.linkedin.com/pulse/pestel-analysis-amazon-case-study-yoann-coraboeuf/

 https://www.cheshnotes.com

 https://www.researchgate.net

 http://shodhganga.inflibnet.ac.i

 E-Commerce or Internet Marketing: A Business Review from Indian Context”,

International Journal of u- and e- Service, Science and Technology by

D.K.Gangeshwar.(2013)

 “Finding the source ofAmazon.com: examining the hype of the earth’s biggest

bookstore”, by Martin Dodge. (1999)

 “E-Commerce in India-A Review”, International Journal of Marketing, Financial

 Services & Management Research by Abhijit Mitra. (2013).

 “Prospects of e-commerce in India” by Sharma and Mittal (2009)

63
 QUESTIONNAIRE
1. Name:

2. Age:

3. Occupation:

4. Do you know about Amazon?

Yes

No

Can’t say

5. How do you know about Amazon?

Advertisement

Friend

Internet

Other

6. Which company’s product are you using?

Amazon

Flipkart

7. Which Company provides better Quality?

Amazon

Flipkart

64
8. Which Company gives you better Satisfaction?

Amazon

Flipkart

9. Which Company gives you better schemes on retail?

Amazon

Flipkart

10. Which Company advertisement is better in your view?

Amazon

Flipkart

11. Which company sales promotion is better in your view?

Amazon

Flipkart

12. Which company’s marketing strategy is better in your view?

Amazon

Flipkart

13. Which company’s sales strategy is better in your view?

Amazon

Flipkart

65
14. Which company’s product range is better in your view?

Amazon

Flipkart

15. Which company’s sale is better in your view?

Amazon

Flipkart

16. Which company’s sales person behaviour is better in your view?

Amazon

Flipkart

17. Which company’s customer satisfaction is better in your view?

Amazon

Flipkart

66