Amazon marketing strategy – Marketing strategy of Amazon

Amazon marketing strategy – Marketing strategy of Amazon: Amazon was founded in 1994 by Jeff Bezos. Originally known for selling books through its website (and later digital versions via its Kindle e-reader), Amazon has built up a customer service, inventory, and shipping empire that allows the site to offer everything from clothes to lawn furniture to janitorial supplies. Amazon makes money through its retail, subscriptions, and web services, among other channels. Retail remains Amazon’s primary source of revenue, with online and physical stores accounting for the biggest share. AWS is Amazon’s largest source of operating profits and is growing at a robust pace

Amazon At A Glance – Marketing Strategy of Amazon

Amazon marketing strategy

[wp-svg-icons icon=”office” wrap=”I”] Company :, Inc.

[wp-svg-icons icon=”user” wrap=”I”] CEO: Andy Jassy

[wp-svg-icons icon=”user” wrap=”I”] Founder: Jeff Bezos

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 5 July 1994, Bellevue, Washington, United States

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Seattle, Washington, United States

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: $386 Billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: $21 Billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees :  Almost 1 million people

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: | | IMDb | Junglee | Ring | Whole Foods Market | Amazon Web Services (AWS) | Blink |

[wp-svg-icons icon=”globe” wrap=”I”] Website:

Amazon Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Alibaba | Netflix | eBay | JD | Costco | Flipkart | Apple’s iTunes | Walmart Otto and Tesco | Google | Target | Home Depot | Walgreens | Staples 


Amazon Fun Facts: When Amazon began, did you know that the bell rang in the office following each purchase?In time, the bell was taken down due to the volume of sales.


Marketing Strategy of Amazon

Amazon marketing strategy

Amazon’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Amazon? Let us discuss.

Segmentation, Targeting, Positioning – Amazon Marketing Strategy

Ecommerce giants such as Amazon use demographic and psychographic segmentation to segment the market. Amazon’s segmentation uses actual purchase behavior. It is not based on what people may have expressed an interest in, but rather on what they did. Amazon’s micro-level segmentation targets every customer individually, allowing it to convert visitors into long-term high-value customers. 

Ecommerce segmentation involves creating personas that will purchase certain products. Amazon also targets middle and upper-class people who are familiar with basic technology but prefer the convenience to shop at physical stores. 

Amazon has successfully established itself as an e-commerce giant that is Glocal (Go global Act Local) and where anyone can order anything and get it delivered to any location. It has helped them to create a unique space in the consumer’s minds by using the #AurDikhao catchphrase in their latest campaign in India. 

Amazon Mission Statement

“To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices,”

Amazon Vision Statement

To leverage technology and the expertise of our invaluable employees to provide our customers with the best shopping experience on the internet”

Amazon Tagline

“#Aur Dikhao” in India. “From A to Z” globally.

Competitive Advantage – Amazon Marketing Strategy

To distinguish, the company purchased many IT and e-commerce start-ups such as This allowed them to provide high value to customers by using the existing technology of their acquired partners at a low cost. Amazon also has scale by offering extensive products, which include electronics, toys, and games, as well as DIY, and at a low cost. 

These products allow Amazon to keep its prices low, thereby passing the benefits on to consumers. Amazon’s customer-centric approach has enabled them to be competitive over its competition. has more than 50%, repeat customers. is a long-standing player in the online market and has a strong presence in both the US and Europe. This is a major advantage for the company as it allows them to expand into new markets. 

BCG Matrix – Amazon Marketing Strategy

Some businesses are cash cows on BCG matrix Amazon, while others are stars and question marks. 

E-books, movies on demand, and Amazon Prime are all cash cows that give Amazon the highest margins. Amazon started as a book shop before it began selling electronics. 

Kindle and VOD (Video on Demand) are all question marks as these services are no longer in use. 

Amazon’s stars are electronics and other durable consumer products because of their high growth rate, but also because the market share for these products is high. 

Distribution Strategy – Amazon Marketing Strategy

Amazon knows that customers are most concerned about the speed of delivery. Amazon’s extensive distribution network is a great solution. Amazon has over 55 fulfillment centers covering more than 43 million square feet. 

Amazon’s “under-the-tent” strategy which uses existing vendor warehouse space to store consumer-packaged goods to serve customers more quickly, is not included. Amazon’s aggressive strategy to infiltrate warehouses and improve their distribution lines has brought them new customers and areas. 

Amazon has created a structured and deep network to distribute the product to remote locations without any delivery fees, subject to a certain limit. Amazon has a vast global distribution network that continues to grow at an alarming rate. 

Brand equity – Amazon Marketing Strategy is now the 2nd largest e-commerce company worldwide, having grown from an e-book supplier to a global leader in e-books.’s brand was valued at US$ 176 billion by April 2015. A brand is like a person’s reputation. Reputation is earned by doing hard work. The brand has more than 55%, repeat customers. It is one of the 13 most valuable brands in the world ( Forbes). 

Competitive Analysis – Amazon Marketing Strategy

The business sector in which Amazon is operating will determine the competitors. Apple is the biggest competitor in a book or content delivery, such as movies, books, and audiobooks. Because of Apple’s gadgets like the iPad, iPhone, and Macbook, the iTunes shop will always be a threat. Google is the biggest competitor when it comes to web services. 

Walmart is Amazon’s biggest threat in the US, according to reports. There are many attempts to rival the online giant. There are reports that Walmart is testing a locker system where consumers can place orders online, pay online and pick them up at their convenience. 

Walmart continues to test same-day delivery in four more cities. It is still the fourth largest online retailer. Walmart’s Internet sales are estimated at $9 billion, with Amazon surpassing that figure in less than a quarter. Amazon doesn’t have the same physical structure as Walmart. 

Amazon is not only in competition in developing countries but also in developed ones. Flipkart and Snapdeal are just a few of the rivals to Amazon. Groupon and first cry, which are targeted toward moms, are also specialized eCommerce portals that take traffic away from Amazon. These local competitors in each country react strongly to Amazon’s presence. 

Market analysis in Amazon’s Marketing Strategy – The global Ecommerce market2_ is still evolving. Customers are becoming more comfortable shopping online due to the rapid technological advancements in developing countries. The fierce competition from biggies such as Alibaba and eBay has resulted in more industry growth. 

Customer Analysis – Amazon Marketing Strategy

Amazon customers are upper and middle-class social groups that have an interest in E-commerce portals, and who are comfortable shopping online. The majority of customers are businessmen or professionals who work full-time and prefer to shop online to save time and money. 

Customers might be looking for deals as well. This is why the portal offers huge discounts on certain days. 

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