This is the detailed marketing plan of Amazon which has been operation in E-commerce industry since 1994. The marketing plan cover majority of aspect that Amazon has been using to promote it’s product and services.


Amazon Inc. is an American ecommerce and cloud computing company based in Seattle, Washington and founded in 1994. It began its operation as an online bookstore and later diversified to sell CDs, DVDs, Audiobooks, software, electronics, apparels, etc. directly or as a middleman between other retailers and customers. Amazon is the leader in innovation and makes things simpler and attractive for the customers.

Target Market

The target market of Amazon are the people who use and have an access to internet and have paying methods such as debit and credit cards, Paypal, etc. Amazon is available in number of countries around the world. The Prime program is the attraction to older shoppers than the young since the people with the age of 40 or more are loyal to the company than individuals who are less than 40 years.

Industry Trend

According to Business Insider, 43% of all online retail sales in the US went through Amazon in 2016. The market share of the company is reported to be 41.2%. Amazon acquired Whole Foods in a deal worth USD13.7bn shaking the mass grocery retail industry. This gave a huge threat to Wal Mart, Kroger, Target and Costco, as well as the international competitors such as Tesco and Carrefour. Amazon came up with Amazon pantry and bricks and mortar grocery store but the acquisition of Whole Foods is the movement towards becoming a dominant player in this space.


Following are the key goals of the company:

• Improving relationship with customers

• Expand products and services

• Global expansion

• Expanding partnerships

• Growth in very Amazon business


The key strategy of Amazon is to ‘Get Big Fast’ by investing in new products and businesses and spending on brand awareness and capturing new audience.

Annual Marketing Budget

Amazon spends more on marketing than its competitors. In 2016, Amazon’s marketing budget amounted for $7.23 billion up from $5.25 billion in 2015.

Marketing Mix of Amazon


As a giant in online retail industry, Amazon offers a wide variety of products. Through constant expansion and diversification, Amazon’s products not just include online retail but other products that satisfy customer’s needs. The actual products of Amazon are

1. The website which allow millions of products to be bought and sold directly by Amazon or third parties

2. Electronic devices such as Kindle e-reader, Fire TV and tablets and Echo

3. Media content


Since Amazon offers different kind of products, its pricing strategies are also varied. Most of the products are priced as competitive pricing strategy. Amazon adjusts prices frequently based on the product category, duration and season. Amazon also sets differential pricing for its some products where the similar products are charged different prices depending on the area of customers.


Since Amazon is a global brand and present everywhere, it has strong distribution network. Consumers buy products from the website and Apps of Amazon and once the order is placed, the distribution channel comes into picture and the products are stored at fulfillment centers. Warehouses are also constructed by Amazon in strategic locations to have an access everywhere. Amazon also avails the service of local courier for the transportation of the packages.


Amazon focuses on advertising and aggressive marketing campaigns to promote its brand. They use creative TV ads, print ads and digital marketing such as social media campaigns, SEO, etc to reach its target audience. The company majorly focuses on sales promotion and gives discount and offers during holiday seasons and festivals. Amazon also invests on PR to improve brand image.


Due to the emergence of ecommerce business, there are number of players in the industry but Amazon has a strong competition with Barnes & Nobel,Wal Mart, eBay and Ali Baba.


• Market Leader

• Low cost structure

• High revenues and profits

• Efficient distribution network

• Strong Brand Image


• Seasonality of the business

• Low profit margins

• Lack of effort on product or service categories

• Effect on brand image due to tax avoidance scandal in the UK


About Amazon. Retrieved from
Amazon Retail sale. Retrieved from

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