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SampleExecutive summaryAmazon is the largest e-commerce website in the UK and this report is going to analyse their marketing strategies. Due to certain factors such as Brexit and exchange rate fluctuations, the business is facing risks that must be managed. The increase in smartphones (Statista 2019) has helped to increase how the company performs and gives them access to new customers. Amazon have now expanded into new industries and products that have allowed them to generate more revenue (Carroll 2018). They also introduced prime membership which requires a monthly or annual fee, that gives consumers access to free one day delivery, their video streaming, music streaming and e-books at no extra cost (Smith et al 2017). However, the company still fails to offer the same amount of grocery products as substitutes and have lower market share in video and music streaming industries (Statista 2019).This report identifies two key objectives:• Improve customer satisfaction ЁC Amazon prides itself on being a customer centric company. However, in recent times they have lost points and gone from being the first in terms of customer satisfaction to fifth (UKSCI 2019). A greater score will allow customers to trust the website more, experience greater loyalty and trust.• Improve customer loyalty and repeat purchases ЁC this can be achieved through getting more subscribers on Amazon prime. As studies have shown that value added services make consumers more likely to repeat purchase and have a greater perception of the business (Ashley et al 2016). A lot of money has been invested in their prime service and due to the amount of services they provide under the service, it gives them a competitive edge.Amazon have implemented a lot of strategies to combat this issue such as improving customer satisfaction rates by having customer support 24/7 on their website and make it more convenient to get in touch. However, due to the decrease in score Amazon must ensure that they are surveying customers and implementing changes to increase the UKCSI score. Also, Amazon prime subscribers have been growing steadily, due to the recent contracts with the premier league which will give customers access to games at no extra costs, this number is expected to rise (Sweney 2018). Also, more needs to be done to advertise the brand on other outlets than just online and the presence of physical stores will help eliminate some of the risks that substitutes such as Sainsburys and Tesco pose to the brand.2Content list1. IntroductionЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­P42. Situational analysisЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­…. P5a. PestleЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­…Ў­Ў­Ў­Ў­Ў­Ў­P5 ЁC P6b. Porters five forcesЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……P7 ЁC P8c. SWOT analysisЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­………P9 ЁC P103. Segmentation, positioning, targeting Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­..Ў­P11 ЁC P12a. Positioning mapЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­…..P12 ЁC P134. ObjectivesЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­…Ў­Ў­Ў­………Ў­.P14a. JustificationЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­………..P14 ЁC P155. StrategiesЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­………………….Ў­.P15 ЁC P166. ImplementationЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……….Ў­…P17 ЁC P18a. Evaluation of tacticsЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……………..Ў­.P18 ЁC P197. ControlЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­………………………Ў­.P19 – P20a. Gantt ChartЎ­Ў­Ў­Ў­Ў­Ў­.Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……….Ў­Ў­…P20b. PlanЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……….Ў­Ў­Ў­Ў­Ў­…..P208. ConclusionЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­…………………….Ў­Ў­…P219. ReferencesЎ­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­Ў­……………………..P22 ЁC P2431. IntroductionAmazon are the largest e-commerce website in the UK (Statista 2019). They have a large share of the market which is attributed to the fact that they offer the widest range of products at low costs (Smith et al 2017). Amazon claim to be a customer centric company that focuses on making it easier for consumers to purchase products and assisting them in their choices. As part of their prime subscription, customers can gain access to free one day delivery, video content, music streaming, free e-books and more (Amazon 2019). They also sell their own products such as Amazon fire TV, kindle and Fire tv tablets (Amazon 2019). This has helped separate Amazon from competition due to the diversification of their products and how many industries they are a part of. There is something for everyone.This report is going to evaluate Amazon and their marketing strategies. From looking at internal and external factors, to evaluating their marketing mix. Also, objectives will be recommended that must be focused on to ensure that there is growth in the business. These objectives must be monitored, and a plan will be provided.42. Situational analysisFirstly, before the marketing strategy can be established it is important that external andinternal factors that affect Amazon can be established.A. Pestle analysis5As can be seen from the PESTLE analysis, the major challenges that the company is facing externally is the risk of Brexit, which is why Amazon has told suppliers that they should send products to a distribution centre based in the EU to limit the potential harm (BBC 2019). Also, Amazon is doing well economically and are the biggest e-commerce website in the UK at the moment (Statista 2019). However, due to the drop in the pound this could result in less profitability as Amazon use the translation method on the exchange rate (Amazon 2019).6Also, Amazon as an e-commerce are always looking for ways to improve the experience for customers such as the testing of using drones for deliveries and their development in AI has proved successful (Amazon 2019). Ultimately, the increase of smartphones held by the UK population has helped accelerate the business.B. Porters five forcesPorters five forces was a tool created by professor Michael Porter (1979) to review an industries attractiveness and their likely profitability (Porter 2008).7Even though there is a low switching cost for customers to transfer to a new competitor, with the brand awareness and revenue that Amazon generates, entrants would need to invest billions to compete (Smith et al 2017). Suppliers have bargaining power to a moderate degree, although it is beneficial for Amazon to have these brands selling products on their marketplace, they must agree to Amazons terms (DЎЇAgostino 2018). Bargaining power of buyers and threat of substitutes is high due to the low switching costs and the advantage substitutes have such as brick and mortar locations that customers can shop at (DЎЇAgostino 2018). Competitive rivalry has never been higher in the e-commerce industry. Even as a leader, Amazon must ensure that their marketing strategy increases brand awareness and demonstrates differentiation to stand out in the market. Competitors can be seen in the chart below (Statista 2019).8C. SWOT/TOWS analysisAmazon have a diverse portfolio of different products such as their TV streaming, smart speaker, e-books and music services they offer to customers (See figures 2 and 3). These products need to be focused on and ensure that prime members are getting value so more will be encouraged to subscribe. As the biggest e-commerce company in the UK, they are able to use that brand awareness to attract more customers to their website and have repeat buyers thus increasing profitability.9(Carroll 2019)(Carroll 2019)3. STP of AmazonIn this section the segmentation, targeting and positioning that is used by Amazon will be discussed:10As can be seen from the above table, due to the vast number of products and offered by Amazon, they are able to cater for every demographic, behavioural and psychographic segment. This is called an undifferentiated marketing strategy, where they are able to target their products for all the population (Baker 2014). This is the most cost-effective method, as a concentrated type of marketing strategy can result in gaining consumer acceptance at a slower rate (Baker 2014). However, customers may have lower loyalty to undifferentiated11strategies. Amazon have tried to combat this issue by introduction Amazon prime which gives customers access to one day free delivery, music, video streaming and e-books (Amazon 2019) for a monthly or annual fee. According to Ashley et al (2016) customers who pay a fee to participate in loyalty programs, can have positive attitudes towards the program, experience higher behavioural loyalty and also, they focus more on the benefits associated with program enrolment. This is further backed up by figure 2 and 3 (Carroll 2018), as members who have none of the above products are overwhelmingly non-prime members thus making prime members more likely to use products and services produced by Amazon.A. PositioningA perceptual map has been included to show where Amazon stands in the market compared to their competition.Amazon compared to its competitors has a wide range of products. eBay, which is second, has a perceived lower cost compared to Amazon (Nick Carroll 2018). This is in line with Amazons mission statement (2019): Ў°to be EarthЎЇs most customer-centric company – where12customers can find and discover anything they might want to buy online – and endeavour to offer its customers the lowest possible prices.Ў± The groups of customersЎЇ needs must be met at low cost to effectively compete with substitutes in the industry. This can be seen in the UK, as 85% of the population have admitted to shopping on the platform within the last year (Carroll 2018). Although Amazon deliver the broadest selection of products, they still lag behind in terms of grocery shopping (Carrol 2018).4. ObjectivesThe objectives stated below identifies two key areas that Amazon must focus on in their marketing strategies. These objectives must be promoted by the company and have been identified from their key performance indicators taken from their annual report (Amazon 2019). The objectives will be based upon Jan 2019 (beginning of Q1) until Jan 2020.1. Improve customer satisfaction and customer loyalty, increasing customer satisfaction index score (UKCSI) by 3 points, from Jan 2019 to Jan 20202. Improve customer loyalty and transactions made on the platform, by increasing the number of prime subscribers by 5% from Jan 2019 until Jan 2020A. JustificationFor objective one, Amazon considers customers incredibly important and even state that goal in their mission statement. However, in the past year Amazon have seen themselves drop from number one in customer satisfaction to fifth, losing 1.2 points in their UKCSI (2019) points. As can be seen in the graph below, Amazon have seen their rank go down thus moving away from their goal of being the most customer centric business and they need to improve this score to improve customer perceptions. A good customer satisfaction rate can boost trust, reputation, loyalty and recommendation (UKCSI 2019).13Objective two is important, as stated in the situational analysis prime membership can improve amazonЎЇs customer loyalty and perception (Ashley et al 2016). This is further proved by Carroll (2018) who states non-prime members are less likely to use AmazonЎЇs video, music, streaming services and purchase devices made by the company. Also, prime encourages repeat purchases and offers services such as two-hour delivery slots on grocery shopping which further will help Amazons battle against their substitutes. From 2017 to 2018, Amazon were able to gain 3.6% more prime subscribers, however they should aim higher as they now offer more content and achieve a 5% increase.5. StrategiesThis section of the report is going to examine the objectives set above and what steps have been taken by the business to reach these goals, also exploring other steps.Objective one:Ў°Earths most customer-centric companyЎ± (Amazon 2019)Amazon place great important on their customer satisfaction by using different methods to ensure that consumers are getting the products that they want in the most convenient way. Amazon do not tell customers what to purchase, however they assist them in picking the right options. The paradox of choice (Schwartz 2014) states that people with excessive choices become less likely to make a decision, choose the easiest option or do not make a decision at all. Amazon try to combat this issue by allowing for customers to write reviews, which help future buyers in order to determine if the product is useful for them (Smith et al 2017).14However, the expectancy-disconfirmation paradigm (Oliver 1997) states that this will give consumers a perceived notion of the products expectation which can either result in a positive disconfirmation or negative disconfirmation. They also use data science to optimize the experience for customers, giving them recommendations and a personalised experience (Smith et al 2017). Amazon also have services available for customers to get in touch with them or suppliers, this includes 24/7 chat, phone and email support which helps consumers get their issues resolved (Amazon 2019).Objective two:Ў°The best of Shopping and EntertainmentЎ± (Amazon 2019)Amazon have focused on their prime service to include video streaming, music streaming and certain e-books that are available at no extra cost (Amazon 2019). They also offer free one-day delivery to customers shopping on the marketplace and two-hour slots on their grocery shopping. Amazon have focused on the content available on the platform, such as from next year they will be streaming twenty premier league games on their service (Sweney 2018) at no extra cost for prime subscribers. This is expected to lead to an increase of prime subscribers (Sweney 2019). Also, Amazon have directed $5 billion to create original content that will help them gain an edge over competitors. Below is an Ansoff matrix showing the different marketing strategies that Amazon use to sell their products (Ansoff 1988).156. ImplementationThis section will analyse the different methods that are being used by Amazon to ensure that the objectives are met and also provide recommendations for these tacticsAmazons Products can be divided into four categories (Marketplace, electronic devices, media content and Amazon web services). Amazon have an abundance of products available to purchase on their website by consumers. They offer a wide range of goods in almost every industry. They have also ventured into selling electronic devices where consumers are able to access their media content more conveniently, which they have also placed great importance (Carroll 2018).Amazon have an e-commerce website which is a placethat customers can purchase products, in the UK they do not have any physical stores. In America, they have opened up several locations where shoppers can purchase groceries to compete with large substitutes such as Walmart (Butler 2019). In the UK customers purchase products, that are then shipped to convenient distribution centres that can access any part of the country within one day. These products are delivered by a wide range of delivery providers (Amazon 2019).Price plays an important role in Amazons business. It can be argued that Amazons business is highly seasonal, enjoying high revenues in Q4 of the business year (as can be seen in the graph). Amazon use cost leadership to ensure that that they create a low cost of operation to give them a competitive advantage (Amit 1986).Amazon revenue by quarter (Amazon 2019).In the UK, Amazon develop Promotion strategies that are solely based online (Amazon 2019). In the US, they advertise in print and on TV to increase their presence, but this tactic is not carried over much in the UK (Sweney 2018). Most of their efforts to advertise are online or through word of mouth. Amazon also heavily use promotional pricing, such as partaking in initiatives such as black Friday deals and sales during holiday seasons (Woods 2018).16Amazon aim to take care of the people that work for them. They offer healthcare, saving plans, paid time off and stock options (Amazon 2019). They currently have 613,000 people working for them globally (Statista 2019). Although it is generally viewed as a great place to work, some fulfilment centre workers have alleged that it doesnЎЇt treat them well and have called to put a union in place (Sainato 2019). This can affect how the company is perceived by perspective employees.Amazon have strategically devised their processto be cost effective and efficient. As previously mentioned, Amazon are able to deliver anywhere in the UK. This allows customers to get their products quickly and conventionally. They have also added features that allow products to be tracked so that customers can always see where their packages are (Amazon 2019).Amazons biggest physical evidence is their website. The website and app are optimised to be user friendly and convenient for customers to purchase products (Amazon 2019). Amazons logo shows an arrow that goes from A-Z which is said to represent the wide variety of products that they have (Smith et al 2017). This logo is sported on all the packing that they send to customers, which is brown cardboard boxes that can be recycled.A. Evaluation of tactics17Amazon use a variety of different strategies and methods in order to achieve the objectives. Much more needs to be done to ensure that they have a strong enough presence as substitutes are a threat to the revenue. Also, their content is vast but almost no advertising is spent on online advertising but print advertising can help them reach customers that do not use internet services regularly. Amazon have a great process, with distribution centres which can be exploited to offer a wider range of groceries for consumers thus raising the revenue. Prime is a valuable way for both the business and customer to experience different Amazon product and services.187. ControlIn order to reach the objectives, the following areas must be monitored in order to measuresuccess:1. UKCSI score: the score must be monitored to ensure that the objectives will be met by the end of the year. In order to achieve a 3-point increase, a rise of 0.25 points needs to be achieved every month.2. Prime subscribers: Prime subscribers should be monitored every three months to ensure that there is steady continual rise. In order to achieve a 5% increase of the previous year, there needs to be a minimum of 0.4% increase. The contract with premier league football is expected to raise this further due to an expected increase in prime subscribers.Below is a Gantt chart and a plan for monitoring progress throughout the financial year foramazon.A. Gantt chart19B. Monitoring progress8. ConclusionIn conclusion, Amazon have deployed successful marketing strategies that have enabled them to become the biggest e-commerce website in the UK. This report has identified two objectives that Amazon should focus on and how the company can achieve these goals.Customer satisfaction can be managed through the UKSCI score, that measures customer satisfaction. An increase in this score can improve the brands reputation, customer loyalty and trust that consumers will have in the business. Recently, Amazon has seen this score decrease but with steps such as getting feedback from customers and implementing the necessary changes will help them increase this score. Amazon are a customer centric company, so it is important to improve.20Amazon prime subscribers have been increasing in recent years, due to more content being available such as video streaming, one day delivery and access to a catalogue of music as part of the same membership. The no extra cost for access to the several different products they offer, as well as the recent news they will be streaming premier league games will increase how the company performs in the UK. An increase in Amazon prime members make customers more likely to repeat purchase and buy amazon branded products such as the fire TV, kindle and fire tablet.More needs to be done to ensure that the customer satisfaction rates are going up as this is a vital part of Amazons business and the decrease in points shouldnЎЇt be taken lightly. Prime subscribers although increasing, a large amount of revenue has been spent to create and share content so Amazon must promote this through their marketing strategies. By diversifying how they advertise, they can gain access to more customers.Word count: 2,749219. ReferencesAnnual report (2019) available from <https://ir.aboutamazon.com/static-files/917130c5-e6bf-4790-a7bc-cc43ac7fb30a< [1 April 2019]Allen, K., Treanor, J., and Goodley, S. (2016) Ў®Pound Slumps to 31-Year Low Following Brexit VoteЎЇ. 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