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Amazon was formed in 1994 in Seattle, Washington. It was the first American E-
commerce company. They have different websites for different countries, across
the globe. Amazon stepped in India during 2013. As measured by revenue and
capitalization amazon is the biggest e-commerce industry in the world.
(En.wikipedia.org, 2019)
The founder of company is Jeff Bezos who founded amazon on 5 July 1994 as a
online book supplier later on they diversified into video streaming and other
products. The company has its own publishing house and filming studio. Today
amazon has every product to sell online. Till now in India amazon has been
absolutely amazing in terms of proving service to the customers. They are
targeting customers between 17 to 55 years, who will have access to the Internet
connectiom. In India the main competitor of amazon is Flipkart, which was an
Indian based e-commerce company. (Cannivady, 2019)
Evaluate marketing effectiveness of Integrated
Marketing Communication strategies of Amazon in the
Indian market
Over the period of time amazon have successfully overtake its competitors in
Indian market with the help of its IMC campaigns. The campaign have helped
amazon india to capture a huge market share in the e-commerce industry of
India. Various important and successful campaign that were led by amazon for its
Indian markets are :
#WeIndians
#AurDikhao
#ApniDukaan
Orchard Advertising is producing these all campaign. For each campaign they
hire an ad agency, to make ad campaign more innovative from the last
previewed. These campaign have helped amazon to grow and penetrate into
Indian markets. (Ahluwalia, 2019)
#WeIndians
To enter Indian market they first launched their campaign #WeIndians. The
campaign was launched due to amazon new presence in the market and selling
online with no physical touch of product makes hard for them in Indian market
cause Indian people are tend to buy products genuine and original. To make
aware amazon started this campaign so people get aware that they are selling
genuine and original products. This was an strategic move by the amazon to
penetrate into Indian markets.
For instance ad was shown during the campaign that how Indian have tend to
hurry in everything always. The ad depicted groom asking pandit to hurry up the
rituals for the wedding, which connects fast and onetime delivery service
provided by the amazon. This shows how innovative were they.
#ApniDukaan
Later on amazon brought out the new campaign ApniDukaan to make people try
their services. The campaign was made to make assure the consumers that it is
safe and easy to buy online. The grasping line used was 'Ek baar amazon try Kar
..... Ho ke befikar'. (Choudhury, 2019)
The ads in this campaign puts toghether the relatable situations of one life in
accordance of the services provided by the amazon service like one day
delivery,easy return and Cash on delivery. The campaign main aim was to
confront people about that they cannot be frauded due to which they launch
Cash on delivery for Indian market to make trust in user amongst the service and
products of amazon. (Indian Advertising Media & Marketing News – exchange4media, 2019)
(Indian Advertising Media & Marketing News – exchange4media, 2019)
#AurDikhao
They key objective of the campaign was to make aware customers about
amazon having 22 million products and engaging existing customers and by
creating buzz gathering new buyers. To generate awareness they used both
social and electronic media to communicate. (Cannivady, 2019)
Television ads
The ad was created of 2 min that showed various typical Indian families where
everyone ask to show more things #AurDikhao. The ad was usually played
during the IPS matches to attract and reach huge number of population. As in
india Cricket is the sole sport which is been watched by large number of
consumers. The catchy line of campaign was "Hindustani Dil kheta hai .....Aur
dikhao....Aur Dikhao".
Social media
YouTube:
Twitter:
In less than 8 months the ads and video loaded got more than 21 Lakh views on
YouTube. People have been making out many parody videos which shows how
customer is fully involved with the campaign. The catchy tune remains with them.
The contest on twitter made people taking more interest in the campaign and
were posting Creative tweets regarding the same. After the campaign it was seen
that net sales were increased to 300% and the number of units sold by them
was increased by 500% according to livemint where in an interview amazon
spokesperson gave the details. Later on the website was more visited by the
users than any other websites for the same industry. This shows how successful
was their campaign.
The way amazon launched its IMC campaign in a systematic manner to grab
huge market share in e-commerce industry of India. To make believe people of
online they launched #WeIndian campaign and later to make people aware that
it's safe to buy online from amazon they started #ApniDukaan and later to give
more products to people and wide range of choice for the product they started
#AurDikhao campaign. (Cannivady, 2019)
These campaigns were launched in the starting of the 2015 and data below
shown are of market share getiing increased from previous year. We can see the
change in shift after these campaign.
Being world most popular and largest e-commerce website amazon has clear
grip on in and outs of digital media. Social media plays a major factor in digital
media. They use social media for both marketing as well as for customer service,
with verified accounts for each of their separate product, including amazon
music, Amazon video and Amazon web service.
It has been seen that amazon has 28.7 million followers on their Facebook page.
They have a central account, which has listing of their products and is used to
market and promote its own products and highlighting deals and offers to the
consumer. The content posted on Facebook by Amazon are related to some
event offers or some festive offer, providing valuable content for its customer. For
example on Diwali day they posted their offer for Diwali on various product
offering. Amazon constantly post comments on the replies of the customer and
replies them back on their queries or feedback ASAP. Customer with Facebook
connected account can check other people review for the products in the feed
and you can also check the wish list so that you can give present to someone on
the birthday. You might often view that you might have seen some product on
amazon app and you have not bought product, using Facebook you will see
same products buying option in ads in feeds of Facebook. This is a very good
strategy to persuade consumer to buy if they might have forget to buy stuff.
(Twitter.com)
How Amazon uses Pinterest
Pinterest is one of the social media where user who tends to purchase something
and needs an idea for it goes there. Pinterest works as an extension of the
amazon main store. Whenever the user of the Pinterest pins some amazon post
they can directly visit buying portal from there. Where they can buy the same
product shown in the pinned photo. Amazon also uses Pinterest to promote their
handicraft work, Amazon Home service and Amazon style for women. (eTail East
2019, 2019)
Spark
Even amazon made and launch its own social media like instagram and
Pinterest. The difference is spark is for social network for shopping and media
like Instagram are for being socially active in the world. The app is designed in
such a way that it can lead u to buy products directly from app. During signup
user are asked their preferences for the topics they are interested in. This
another media through which they can have direct revenue. Spark also
generates data regarding the preference and gives new signals for the
customers. (eTail East 2019, 2019)
FCB Marketing Communication model vis-a-vis
Amazon’s promotional strategy
FCB known as foote cone belding model. The model involves 4 quadrant. The
model was made by Richard Vanguan in 1980. The model helps to place product
according to the nature of product. (Bains, 2019)
(Bains, 2019)
1 quadrant
The upper left corner block is the 1 quadrant. The decision that are based on
highly involved thinking lie under the 1 quadrant. For eg buying a car is very
important investment which involves highly involved thinking.
2 quadrant
The upper right block is 2 quadrant where the decision that are based on highly
involved feeling are to be taken into the consideration into that block. Purchase
that ought to reflects ego, personalities and self esteem. Eg buying Jewellery or
buying branded clothes.the example shows high involvement of the customer but
there is feeling attached to the product.
3 quadrant
At down the lower left corner of the FCB model is 3 quadrant where a consumer
is lowly involved thinking while making a decision to buy a product. The products
like which we consume daily and which does not involves much involvement but
thinking. Eg buying detergent can be a product that falls under this quadrant.
4 quadrant
The quadrant is situated in the lower right if the FCB model. The quadrant
involves lowly involved feeling that are base decision to buy a product for the
customers. It involves products that are used for satisfaction. For example buying
cigarettes and alcohol etc.
Product and service will fall under the particular quadrant. Amazon has 22
million product variety on its website in India. The various types of product
are shown in the model are :
1 quadrant
2 quadrant
This is the top right corner block which includes products like Amazon echo,
perfumes, bathing gel,etc. This product are available on amazon and has highly
involved with feeling and based on that decision for buying is made. The
products bought involve very high involvement of feeling to the product which in
turn influenced the buying decision of the consumer.
3 quadrant
This the lower left corner of the model which includes product like groceries, daily
use products,etc. Amazon has wide variety of grocery product available with
them which can be delivered within a day. The product falls under the quadrant
needs where lowly involvement of thinking due to consumption of Everyday, one
knows how much to buy and what to buy.
4 quadrant
This is the lower right Qudra r which includes product that satisfies ones needs.
The product of amzon falls here are liquor and cigarettes where there is Low
level of involvement of feeling in the buying decision of the consumer.
Amazon has been promoting all its product effectively through various media.
They have been carrying out various sales during summer, winter and in Diwali.
Where there is amazon great billion days, where a number of products are on
high discount and usually on those days the traffic of website increases so much
that it leads to app crash.
Online
Amazon is a online service provider they do not use any energy or other sources
like the retail outlets do.
(Anon, 2019)
Packaging
Amazon is very innovative and they started shipping in sustainable way by using
ships with zero emission level. In 2010 amazon patented for environmental
conscious electronic transaction. Giving customer less carbon intensive Shiping.
This is achieved by using hydrogen powered vehicles to make it more efficient.
In 2013 they announced using drones for delivery which have zero emission
policy in the nature. The drones will be used to deliver and pick up order which
will be more environmental friendly.
Green building
Additional efforts
In 2014 amazon web service launched Amazon climate research grant program.
With the help of US government and White House climate data initiative , Aws
has awarded 50 hours of Super computing for the research purpose.
Amazon constantly has involved itself towards the path of sustainability. Being
such a big Organization it is the responsibility of the Organization to become
more sustainable.
(Globalwarmingisreal.com, 2019)
The adopted strategy towards developing long term
relationship with all stakeholders.
Stakeholder theory shows how every company has two sets of stakeholder one
which is internal and other which is external. Internal stakeholder includes,
manger, employees and owners and the external part include suppliers,
community, government, etc.
(HuffPost, 2019)
To maintain Long term relationship with its stakeholder which are customers,
suppliers, employees and communities,etc amazon performs CSR strategy. They
use CSR as their strategy to align company's and stakeholder interest towards
the same direction. They understand as major influence factor on e-commerce
industry. Such strategy supports amazon vision and Mission statement. For
amazon customer are their primary stakeholders considering the nature of
business. Amazon also run charitable groups through Amazon smile to support
the community. (Panmore Institute, 2019)
For maintaining relationship for a Long period of they have been promoting
sustainable factors and they re turning towards the sustainable growth. Amazon
is being working on sustainable industry.
BIBLIOGRAPHY
Staff, D. (2019). Innovating for unique Indian needs. [online] IN Day One Blog.
Available at: https://blog.aboutamazon.in/our-business/innovating-for-
unique-indian-needs.
Choudhury, K. (2019). Amazon runs into copyright issues over its flagship
campaign 'Apni Dukaan'. [online] Business-standard.com. Available at:
https://www.business-standard.com/article/companies/amazon-runs-into-
copyright-issues-over-its-flagship-campaign-apni-dukaan-
118092000034_1.html.
Bains, J. (2019). The FCB Grid: What It Is and How It Works. [online] SEMrush
Blog. Available at: https://www.semrush.com/blog/the-fcb-grid-what-it-is-
and-how-it-works/.
https://economictimes.indiatimes.com/tech/hardware/amazon-closing-the-
gap-with-flipkart-in-online-smartphone-sales/articleshow/54617354.cms.
eTail East 2019. (2019). Amazon's Social Media Marketing Strategy To Inspire
Buyers. [online] Available at: https://etaileast.wbresearch.com/amazons-
engaged-buyers-drive-social-media-revenue.