2. Kindling of an idea
• Launched in 1995 as a website that
sold only books. Which still today
remain loyal to its roots (by selling
all genre books to its loyal reader’s)
2
• Jeffrey Preston Bezos who
is now 54, a well known retail
entrepreneur, investor, and
philanthropist , chairman, and
chief executive officer of
“Amazon”.
• Being a voracious reader
himself, he wanted to name his
company with a magical flair
as ‘Cadabra’ (from the word
Abracadabra). But finally he
ended up with the name
Amazon.
Tagline
Globally as - . “From A to Z”
(get any product online from A
to Z)
In India - “#Aur Dikhao”
3. From big minds
Amazon run their center of business from
a so called method “True Customer
Obsession”
3
4. “
4
• Amazon uses DEMOGRAPHIC and
PSYCHOGRAPHIC SEGMENTATION
to segment the markets.
• And also uses the company’s
marketing mix or 4Ps (Product, Place,
Promotion and Price while
implementing a marketing plan
• Using Amazon’s robust customer
centric approach has helped them to
have competitive edge over their
competitors. More than 50% of the
consumers are the repeat buyers at
Amazon.com.
• AIO or Activities interests opinions
is one of the methods to carry
out psychographic segmentation
Providing high value
using technology to
offer low cost solution
to the customers.
Competitive
advantage
Extensive product availability
Extremely low prices
(shipping/ delivery charges) - offers
5. “
5
• Amazon uses BGC Matrix Analysis (or growth
– share Matrix)
• E-books, movies on demand & Amazon
prime are practically cash cows giving the
maximum margins to Amazon.
• Kindle, VOD (Video on demand) & Amazon
web services are question marks because with
the advent of technology these services have
become obsolete & have low demand.
• Electronics and other consumer durable
products are stars for Amazon because these
products have high growth rate but the market
share of Amazon is also high for these products.
• Dogs – Low market share and low growth
rate (less profitable or may even be
negative profitability)
Cash Cows - High market share
but low growth rate (most
profitable).
Question marks – Low market
share and high growth rate
(uncertainty)
Stars – High market share and
High growth rate (high
competition)
BGC Matrix
6. 6
Amazon.com
customers can find and discover
anything they might want to buy online
To leverage technology by providing
our customers with the best shopping
experience on the internet
Providing customers a quick delivery
of products they order.
Encourage repeat buyers, based on
the past purchase history.
Increase in number of happy
customers eventually a big hit in a
business strategy.
7. •If you compare a small car like to Volkswagen beetle,
against the Lamborghini Diablo, then you will feel that the
Beetle is a fragile human being, strong in the inside but like
a gentleman or woman on the outside.
•On the other hand, the Lamborghini is a beastly human
being, aggressive and raring to go.
•Most people would say that the Beetle is on the feminine
side whereas Lamborghini is completely Macho.
•Thus, slowly but surely you are building up a personality
for both the brands.
Brand
personality
7
Enabling Brand personality
to the products they sell
helps in promoting any
specific brand to the
proper crowd.
8. “
8
• E-commerce portals have a very very strong CRM at the back end.
• a single click can be tracked. It can be tracked to the IP it originated
from, it can be tracked with regards to the user’s demography and
geography as well.
• As most things online are traceable, the CRM of E-commerce
portals is very strong, much stronger then any CRM of
physical products.
E-commerce segmentation
9. “
9
•In Amazon, click on the home appliances or Electronics category. When you browse
around for 3-4 minutes, and return back, you will see that all ads on this website have
changed to Amazon ads. Not only this website, any website that you go to will start
showing Amazon ads within the electronic categories.
• This means, that the E-commerce site has read your behavior. It has read the way your
IP has browsed various products in the E-commerce portal. Which means, your IP is
interested in Home appliances. It then starts targeting you on the basis of that.
• The second thing which E-commerce portals do, is involve a bit of demographics as well.
So, if you are regularly checking baby products, it will start showing ads even in your e-mail
for baby products. If you are buying high end smart phones, it will show high end
televisions. If you buy cheap earphones, it will show other cheap mobile phone
accessories.
11. The outcome of true customer obsession.
Launched in 2005.
11
Joining the PRIME
• Two day delivery over 30
million items.
• Free same-day delivery
• Music, photo storage,
kindle library and streaming
films and TV.
Prime Now is serving members in more than 30 cities around the world.
13. 13
Prime becomes more
valuable for members,
and sellers sell more.
• Sellers who ship their own
orders at Prime speed directly.
• This program has led to
hundreds of thousands of
additional items that are
available to Prime customers
via free two-day or next-day
shipping.
• Has empowered
entrepreneurs in 172
countries
14. Big concept
▫ The latest example of innovation in their
business model is the launch of Amazon Go,
▫ A new kind of store with no checkout
required.
▫ Boasting a "Just Walk Out Shopping
experience", the Amazon Go app users enter
the store, take the products they want, and
go with no lines and no checkout.
14
Founded - 5
December 2016
In Seattle,
Washington
15. Amazon in india
15
• Being the fastest-
growing major economy,
online retail market would
see an enormous growth in
the coming years.
• India is another example
of how Amazon
globalizes an offering like
Marketplace through
customer obsession and
a passion for invention.
launched in June 2013
16. “
16
• 80% of Indian online consumers prefer
Amazon over any other e-commerce website
• Since the launch in India Amazon has Invested 5 Billion
US dollars in India.
• Amazon is covering every serviceable pin codes in India for
delivery of their products
• Amazon has largest storage capacity in India with 41
fulfillment centers across 13 states.
• There are more than 20,000 Indian sellers on Amazon
marketing their product worldwide.
17. Amazon Chai Cart
17
• Amazon designed an eye catching ‘Chai Cart’, which could
easily move through the narrow streets of Indian markets
informing Sellers about the benefits of starting an online
business and helping them understand the entire process over a
cup of Chai.
• In a period of four months, the team travelled 15,280 km
across 31 cities, served 37,200 cups of tea and engaged with
over 10,000 sellers.
• Retailers and business owners seeking growth were
convinced by the opportunities provided by Amazon, registered
themselves and became a part of Amazon’s endeavor to grow
their businesses across India – all on the spot.
•Since its launch on February 17th, they have reached sellers in
25 cities.
18. ▫ AmazonFresh
▫ Amazon Prime
▫ Amazon Web
Services
▫ Alexa
▫ Appstore
▫ Amazon Drive
▫ Echo
▫ Kindle
▫ Fire tablets
18
▫ Fire TV
▫ Video
▫ Kindle Store
▫ Music
▫ Music Unlimited
▫ Amazon Digital Game
Store
▫ Amazon Studios
▫ AmazonWireless
20. From the great
mind’s.
20
Key take away
• One common pitfall for large organizations—one that hurts
speed and inventiveness—is “one-size-fits-all” decision
making.
• Type 1 decisions - one-way doors
If you walk through and don’t like what you see on
the other side, you can’t get back to where you were before.
• Type 2 decisions - two-way doors
Most decisions are changeable, reversible. If you’ve
made a suboptimal Type 2 decision, you don’t have to live with
the consequences for that long. You can reopen the door and
go back through can and should be made quickly by high
judgment individuals or small groups.
21. ▫ Kindle: Amazon has improved the
hardware and dropped prices, but
many readers still feel these eBooks are
expensive.
▫ Amazon web services face competition
from established providers – DELL,
Microsoft and Google.
▫ Merchant services are in the
competition with a host of internet
payment service providers located
across the world.
21
▫ Amazon’s self publishing facilities will
change the publishing industry
business model, but the beneficiary
may not be Amazon.
