SCHOOL OF TOURISM AND HOSPITALITY MANAGEMENT Marketing for Tourism and Recreation Industry - I 20010-2011 Fall TMKT313

Pro. Dr. RÜÇHAN KAYAMAN VAZIRI Oluwabunmi Rosemary Afuwape 109453 Devraj Chamlagai 088466 Asif Rizwan 099208

Table of Content

1. Executive Summary  2. History Of the Company  3. Financial Information (2010 – 2011)  4. i. Mission and Vision  ii. Strategies (Product, Place, Price and Promotion)  5. Target Market  6. References

Amazon.com network

Amazon.com with a strategic plan for their operations within the retailing industry. Amazon.com is a leading e-retailer and is a globally recognized brand, but is facing increasing competition from bricks and mortar companies setting up online presence and current e-retailers increasing their geographical and product scope.

  The internal and external analysis reveals

that Amazon.com has been under performing in China; thus it has been recommended that Amazon.com penetrate the Chinese market. This will require implementing a marketing strategy and by introducing the Merchant Program in order to make the company more locally responsive and take advantage of the growing online market.

Executive Summary

History of the Company

Amazon.com, Inc. was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware.

“Jeff Bezos” founded Amazon.com, Inc. in 1994, and the site went online in 1995. It is named after the Amazon River, one of the largest rivers in the world.

“Jeff Bezos” Founder of Amazon.com

Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United

States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States,

Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and China. It may also launch websites in Netherlands, Sweden, and India. It also provides

international shipping to certain countries for some of its products.

Amazon.com

Financial Information (2010-2011)Amazon.com. Inc, over the years from 1997 has

served more than 1.5million customers, yielding 838% revenue growth $147.8 million and extended market leadership .

The Amazon showed consistent trend, it started with lower net income but kept increasing thereafter and peaked on in December 31, 2010 – July 17th 2011. Amazon generated a total revenue from $34.204 billion to 72.94 billion.

Financial Report Dollars ($ US) from 2010-2011 Revenue 34.204 – 72.94 billionOperating Income 1.406 – 7.49 billionNet Income 1.152 – 4.76 billionTotal Assets 18.797 – 34.44 billionTotal Equity 6.864 – 12.89 billionEmployees 33,700 – No increase

Mission and VisionAmazon mission and vision statement is: “Our Vision is to be earth’s most customer

centric company; to build a place where people can come to find and discover anything they might want to by online”.

StrategiesMarket Development

Service Development

Product Development

Market Development: Acquiring a growing, profitable e-retailing company is to take advantage of the growing market in the various countries that they have their online markets e.g., India, United states, United Kingdom, etc.

Service Development: Providing a “greener” delivery option meaning that consumers will be given options and choice of selecting the standard delivery option. This options means that items will be delivered in plastic biodegradable plastic container, where consumers are encouraged to return the box after use and will be given an e-voucher to be spent at Amazon after they have collected certain green points and boxes can be re-used by Amazon in future deliveries, which in return will reduce cost of packaging and wastage.

Product Development: This option recommends the addition of prescriptive contact lenses to Amazon.com’s Product range. This initial investment for this option will be high however, long term profitability reduces the overall financial risk associated.

In addition we have 4P’s (Product, Place, Price and Promotion).

Product Audible Audio books Books  Children’s Book Textbooks Audio books Magazine Movies, Music and

Games  Computer Parts and

Components Software Laptops, Tablets and

Net books Musical Instruments

MP3 Players and Accessories

Electronic and Computers Desktops and Server Digital Games and

Software Health and Beauty Grocery Toys, Kids and baby Clothing, shoes and

Jewelries Sports and Outdoors

The Amazon Kindle is an e-book reader developed by Amazon.com. which enables users to shop for, download, browse, and read e-books, newspapers, magazines, blogs, and other digital media via wireless connectivity.

Amazon.com onee of the famous product

Automotive and Industrial

Digital Cameras

Meat, Sea Food and Gift Baskets

First Aid and Hair removal

Canned Food and Household Supplies

GPS

Fashion Accessories

Beauty Care Products

Furniture and Beddings Products

Tableware and Utensils

Musical Instruments

Motorcycle and ATV Parts

Pet Supplies

Tires and Wheels

Place

The places where the products are made and produce are from various and different companies as well as different authors of books, textbooks and Audio Books.

Amazon.com is more like an avenue for people to showcase their products.

products are showcase is on the World Wide Web which is in different countries as well, but the main place is in the United States.

PriceReserved give the option to make a low price, one-

time payment for each instance in return a significant discount .

It’s Depend on the item which you are going to buy.

Easy accessible cause and price are in dollars so you can convert your local currency in US dollar.

Master Card, Visa and other card are acceptable, so it provide security and privacy.

Promotion

Amazon.com operates exclusively through its website unlike most other retailers that also maintain a physical presence. Customers like the simple online shopping option as well as the availability of discounts on the website

In Amazon.com if you don't know the code, you can't take advantage of the discount. You can find these secret discount codes and coupon codes listed on many sites across the internet Eligible products for this promotion are Home and Garden, Kitchen Wares, Electronics, Books, Magazines, Furniture, etc.

Target MarketBusiness plans cover both the existing size and they anticipate the growth rate of the market they are targeting.

In Amazon the business plan are often quite in the

descriptions of potential customers including gender, age, level of education, marital status .

I. Gender - Both Female and Male

II. Age - In this category the ages of satisfied customers are from 3 - 12 years (toys, children books), from 13 - 17 years (textbooks, magazines and toys), from 18 - 25 years (resourceful books, textbooks, electronics, audio books), from 27 - 35 years (garden and home, utensils, furniture, electronics, beauty and health, Audio books, books, etc) and then to 40 - 75 years (Audio books, Magazine, Resourceful books, electronics, garden and home, etc)

III. Marital Status - married and non - married

IV. Level of Education - Amazon does not consider the level of education of anyone, for its products serve both the needs of those wanting and seeking knowledge, those with knowledge, those that want beauty for their body, health and home and Amazon makes sure they are met.

V. Employment and Income - Their products are low in prices and affordable for those who would want to buy any products produced by Amazon and sold by them as well.

Why Amazon.com?1. Today online commerce saves money and time and

we believe that a fundamental measure of our success.

2. No need to spend time to describe about product for resellers which used to describe already in amazon.com.

3. Easy accessible about payments and receive. 4. The direct cost-of-sale for an order taken from a web site

is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process.

5. Deal with target or niche market, no need to deal with market segmentation etc.

6. From the buyer’s perspective also ecommerce offers a lot of tangible advantages. Reduction in buyer’s sorting out time.

Better buyer decisions. Less time is spent in resolving invoice and order

discrepancies. Increased opportunities for buying alternative products.

7. The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery cost time, labor cost and the cost incurred.

8. Operational benefits of Amazon.com include reducing both the time and personnel required to complete business processes, and reducing strain on other resources.

Final Christmas push Increase (propel) US online spending up 15%

Holiday season retail e-commerce spending for the first 56 days of the November – December 2011 holiday season has been reported today.

For the holiday season-to-date, $35.3 billion has been spent online, marking a 15-percent increase versus the corresponding days last year.

The most recent week (ending Dec. 25) witnessed $2.8 billion in spending, an increase of 15 percent versus the corresponding week last year.