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The report is a marketing strategy plan of Amazon, one of the top online retailing brands
acknowledged by many people around the world. Amazon.com obsessed with the inspiring
vision statement to be Earths most customer-centric company while the mission of Amazon
which consistent with the vision statement, To leverage technology and the expertise of our
invaluable employees to provide our customer with the best shopping experience on the
Internet (Vladimir, 2010). Successfully positioning as a Glocal (Go global Act local) ecommerce giant, Amazon has become a reliable company where one can purchase anything
and get it shipped to any distant locations. Going beyond the US market, Amazon currently
has its subsidiaries in different countries such as Europe, Australia, Brazil, Japan, China, and
India. Currently, Amazon is chasing the chance of fostering its business in China because it
has invested a huge amount of money in this market. Besides, the company is also aware of
the potential development of entering the new market in Vietnam due to its rapid growth of
economy and Internet users in Southeast Asia area. As a result, the report will offer an
objective evaluation of both opportunities, thus focus on the one appropriated with Amazons
SCA, strengths and capabilities.
According to the previous marketing audit, Amazon has applied successfully two integrated
generic strategies including innovation and relationship strategies over two decades.
Notwithstanding, the firm currently perceives the more essential of relationship generic
strategy over time while developing its brand to increase the recognition of customers toward
Amazon, thus brand strategy eventually becomes a strong feature as well. To entering
Vietnam market, the company should use the combo branding-channel generic
strategies with the major branding strategy. The fundamental of the
branding strategy is the spread of branding in every facet of the company
including its advertising (Cravens et al, 2000). Meanwhile, the nature of
channel/relationship strategy concentrates on the control of distribution
channels like suppliers and customers as the essence of the companys
marketing strategy.
Standing at the number one in the US market as the leader of the online
retailing company, Amazon will become a challenger in Vietnam if it
decides to enter this new market. Therefore, branding strategy is the
1
Table of Contents
Executive Summary 1
1. Opportunities times two 1
2. Justification
5. Capabilities
6. Marketing Mix
12
1.
middle
and
affluent
class
in
the
South
East
Asia
area
5.
Justification
6. Chinese market is considered as one of the lucrative markets for all
companies from Western countries including Amazon, yet the highly intense
competition many times stops Amazon in the increase of market share.
Alibaba's Tmall and JD.com occupy the large market share of China ecommerce, at 58 percentage and 20 percentage respectively, while
Amazon just holds a mere market share of
quarter of 2015 (Wang, 2015). Even though, Amazon has recently started
advertising itself more aggressively in China through launching a store in
8.
9.
14.
Amazon
Tiki
Lazada
15. The diagram above reveals that Amazon is rank highest for customer service, innovation and
branding attributes. Amazon has built strongly customer relationship through customer
service and invested on technology to leverage their in-house products for meeting
customers expectation. Meanwhile, Vietnamese people could recognize Amazon through the
logo from A to Z and lovely Danbo (Amazon box robot) as brand mascots. However, those
attribute that Amazon does not achieve high score include reliability, price, and ordering,
packing & delivering process. Due to late entering into Vietnamese market, it will take time
for Amazon to catch up with two competitors and gain attention from customers. Besides, the
diagram also shows three remaining attributes of Amazon including variety, trust, and price.
16.
advantage of Amazon over two decades successfully working in the ecommerce industry. Even reaching a high level of awareness, Amazon just
has a limited ad budget. Instead of trying to buy love, it obtains from the
customer-centric orientation and the word-of-mouth it generates. The
brand was built up through smart inventiveness like its Frustration-Free
Packaging created as the replacement for old non-environment friendly
plastic models (Murphy, 2010). According to Jeff Bezos, Amazon made the
brand promise of taking care of their customer for starters and delivers on
those promises (Apparel, 2006).
21.
To gain trust and consistently retain existing customers over the world,
tracks
previous
purchase
behaviour
and
applying
modern
23. Capabilities
24.
First of all, the CEO Jeff Bezos having a good leadership style inspires
26.
Amazons brand personality will be developed as friendly and helpful while the brand
image will be timely delivery and remaining quality of products in all areas. First of all,
along with building its website in Vietnamese, Amazon should utilize Amazon mobile app
that is easy-to-use and has a modern interface to reach Vietnamese families and young
customers. Secondly, Amazon should realize the importance of popular social networks in
Vietnam such as Facebook and Instargram to reach wider targeted customer. For example,
when introducing new Kindle version, it may post videos, pictures and do
real customer experiences campaign in Facebook which attracts more
people talking about the brand. Finally, Amazon can use its famous brand
mascot (Danbo) to create limited gifts for lucky customers sharing, writing
comments about Amazon in Facebook. Adorable friendly Danbo can appear
in big events related to books and technology devices that Amazon will be
the sponsor, resulting in an increase in brand awareness of the company.
Amazon also can do mobile marketing strongly associated with online
social media through creating a mobile game app for children and young
customers, using hashtag #BestDelivery and Danbo as the main
character. It is a fact that no online retailing companies did gaming
marketing in Vietnam before, thus the new game app could receive
positive feedbacks and help Amazon teach new behaviours and drive
brand loyalty.
31.
including Lazada and Tiki have received many complaints from buyers
regarding to delivery times and customer services (YStats, 2015).
Therefore, Amazon as a follower can take advantage of the pioneers
mistake by improving Vietnamese online shopping experience (Walker et
al, 2009). Firstly, the company may apply new shipping method such as 3hour delivery in metropolitan areas and 2-day delivery in rural areas.
Meanwhile, Amazon can collaborate with most reliable partners like DHL
or ViettelPost to ensure timely delivery process. Secondly, Amazon
Vietnam can initially co-operate with Amazon China to deliver goods from
35.
Product
36. Among those, books/e-books, Kindles e-readers will be developed as core products in the
new market. First of all, Amazon can conduct some researches before designing a new
version of Kindle to make sure that it will fit with local cultural. The change in design can
emphasize on special features such as accessible to Kindle program without Wifi, supporting.
Secondly, the targeted market of Kindle in Vietnam will be young customers and families,
thus designs of an eye-protect screen for children and enduring protected case could be put
into consideration. To compete with Tiki also offering e-books, Amazon can invest in
technology to make sure that audiences can access and purchase items faster than Tiki
currently do.
37. Price
38. YStats (2015) emphasize that cash on delivery (COD) is by far the major
payment method, yet online payment or card payment is better now because of high
urbanization rate, youth population and increasing income. Amazon should initially offer
COD payment methods but gradually drive customers to use online payment methods
through showing them its clear benefits. The company may co-operate with big local banks
to compete with Tiki and Lazada, discounting 30% for customers using online payment
method. Furthermore, Amazon can provide saving 50% shipping fee program for loyal
customers or free shipping for them on big discount occasions while maintaining the quality
of its website, which Lazada obviously cannot do currently.
39.
centres, recruiting & training local employees, quickly establishing relationships with key
stakeholders, improving the mobile platform and website in the new market.
42. In the following stage, the company needs to promptly allocate adequate and sufficient
resources to enable the marketing strategy plan to work efficiently. The main advantages of
Vietnamese market for all foreign companies are cheap abundant workforce and help from
the government with great strides in policy. However, Vietnamese workers need to be trained
and intensely pushed through different challenges to keep up with the competition and offer
better service for customers. Furthermore, Amazon in the US could send senior managers to
help build the team. Another necessary resource will be IT support through co-operating with
technological experts of Amazon Japan and Amazon USA to come up with ideas of new
Kindle, mobile purchase platform & website and Danbo game app. Recruiting young talents
from local technological universities could be put into consideration as they are quite creative
and know targeted markets needs. Based on the importance of different departments, the
company will spend major its budget on R&D department and HR department.
43. In the third stage, Amazon Vietnam will focus on how to manage the implementation of
marketing plan through assigning tasks for each department with explicit responsibilities and
timeline.
44.
10
HR department
R&D department
PR department
12
14
16
18
45. The company needs to identify all possible internal and external stakeholders who can assist
the company in effectively putting the marketing strategy plan into action. It will be better if
Amazon allows key stakeholders involve early in the project through communication to be
aware of their expectation, thus devise corporate objectives and goals. For example,
Amazons customers can enjoy innovative products with better services while Amazon will
bring more job opportunities for local people, eventually stimulating economic growth and
technology development of the community. Likewise, Amazon employees in Vietnam will
have chances to work in challenging environment and, thus enrich their career experience.
Besides, the company culture and sense of team spirit should spread to every staff to
encourage them to be creative when working in self-managing teams.
46.
In the final stage, the company ought to come up with KPI measures and information
systems due to the prerequisite of monitoring the progress and keeping everything on track.
In particular, long-term financial metrics will include profit and costs analysis
associated with particular marketing activities; expense and budget
comparison (Ted, 2015). Other non-financial KPIs could be customer and
employee satisfactions which can give Amazon an initial caution of
upcoming issues and opportunities. Those KPIs could totally carry out by
surveys, face-to-face approach, asking customers when they recommend
Amazon to others, and feedback process for employees. Furthermore, the
company can design the tracking system to oversee all metrics on a
weekly or monthly basis, resulting in usable and timely feedback data on
actual performance.
47.
48. Two special features of implementation
49.
50.
53.
54.