Strategic Brand Management Project Work

AMAZON PRIVATE LIMITED

Submitted by
Vijeth S
18A3HP604

Submitted to
Prof. P. K. Mohanty

Date – 20th August 2019

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 FORWARDING LETTER

This report includes the study of various strategic brand management elements that are put
together to build, measure & manage brand equity of Amazon E-commerce – the leading E-
commerce website site in India.

Vijeth S

18A3HP604

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 Introduction
Amazon founded by Jeff Bezos on July 5th, 1994. They sold only books online and today it is
a multinational company; its headquarters is in Seattle. They have built their business in e-
commerce, cloud computing, AI and streaming.
They entered India in February 2012 launching its first website trying to capture 40% of the
am Indian user base who were used to online shopping.
Their growth has been immensely referring to figure 1
We can say that they have disrupted the online retailing sector giving head on competition to
its competitor globally as well as in India.

The online shopping users are growing at the rate of 17-20% in India and it’s a great
opportunity to company like Amazon to capture its sweet spot amongst its competitor and
becoming the market leader.
Amazon also has acquired companies like Audible, Alexa Internet, Twitch TV , Internet Movie
Database (IMD), Digital Photo Review, Junglee.com and Zappos.

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 Figure: Key Acquisition

Brand Equity
Brand equity Consists of 3 important factors

 Differential effect
 Brand Knowledge
 Consumers response to marketing

1. Deferential effect:
How consumer develop their response to the company service (e-retailing) compared to other
competitors. Here in case of Amazon has the fastest delivery services w.r.to its competitors
Flipkart, Myntra, Jabong and Snapdeal.
Facts:
1. Fastest delivery (Prime Orders) for prime customers.
2. Vast variety and assortments.
3. Better pricing than competitors
4. Best customer after service

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2. Brand Knowledge
Amazon has done multiple Ad campaigns to reach out to all the customers at different
awareness levels, according to their campaign’s consumer gets knowledge about the company.
When they first launched in India, they knew Indians wanted more choices hence they TVC
they launched had based on that consumer insight. # Aurdhikavo Campaign.
It can be further classified into
a) Brand Awareness: - It is to create familiarity of the brand, Amazon executed this by
connecting customers with the fact of giving more choices and giving better and faster
delivery.
b) Brand Image: - This is consumers perception about the brand Amazon, this was
done by associating it as largest and biggest e-retailer across the globe and portraying
themselves as value for money platform with better offers.
3. Consumer Response to marketing:

The perception, preference, and behavior of the consumers about the marketing of the product
make up its brand equity. This criterion can be measured by the following factor:
1.More loyalty
2.Less vulnerability to competitive marketing actions
3.Large margins
4.Better perceive of the service performance.
5.Additional Brand extensions
6.Increased marketing communication effectiveness

Brand Resonance

Figure 3: Brand Resonance Model Source: Researchgate.net

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Brand Salience
Amazon is a popular name in the online market industry. US e-commerce activities are
dominated by amazon. It has positioned itself as a brand which is imagined in their mind
whenever the customer wants to buy anything online. Also, any consumer who wants for lesser
price and the first thing come to anyone’s mind is Amazon.com.
Amazon’s usual discount-pricing strategy is the reason behind it. The logo of amazon is a very
familiar one; whenever people see it association becomes very easy, also it has a wide range of
offerings.

Brand Performance
Amazon gives its consumers a wide range of every single brand’s offerings. Also, the company
makes sure that cheaper pricing than of its competitors. Past 20 years, Amazon has refuted it’s
trust by served people with damage free products. One of the most noteworthy service about
our brand amazon is their super-fast delivery.
“The Amazon prime delivery service, product to the customer are delivered within two days
which differentiates them with respect to others in taking the top position amongst the delivery
service.”
Brand Imagery
“Amazon serves a wide range of market segment with its great range of product range and price
categories. With fast shipping and quality products, Amazon has created a deep image of a
reliable and trust in the minds of the customers as brand imagery. Through superior and secure
packaging and efficient delivery it has positioned itself as one of the most reliable brands out
there.”

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Brand Judgement
By delivering the products with extremely rare case of damage, Amazon has successfully been
able to position where customers consider Amazon as a high-quality e-retailer through efficient
delivery, before and after-sales services Amazon has also become one of the most trust worthy
online retailers out there. These facts influence people to consider Amazon as a platform to buy
anything they want.

According to the survey taken by IMT Students we can notice that judgement and consideration
of other e-retailers are more than 80% , would right away switch if the product is not available
on the website.
Brand Feeling
When it comes to feeling Amazon has developed and ensured the safety of the payment made
online by outsourcing to the best network security companies in the globe. They want
customers to be free and fell safe about their personal and payment details while buying
anything they want. For this reason, customers feel secured and safe while they shop anything
and everything from Amazon.

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According to the survey conducted amount 125 student at IMT Hyderabad, we can understand
that when they think if Amazon 70% think of fast delivery!
65% think about more choices and 66% thinks about convivence.
Brand Resonance
Amazon to segregate their loyal consumers and to increase the number of loyal customers
introduced Amazon Prime service, provides following things
1. 2-day shipping
2. 24hrs shipping for 60% + products
3. Returnability within 10 days.
Recently they introduced Amazon Dash, a magnetic Wi-Fi enabled device which sticks to their
refrigerator and tracks the amount of food left and upon clicking it would immediately create
an order and ship the goods in time.
There services help customers to build trust and believe towards the companies and would
always reorder from Amazon.

Reasons for the resonance towards the brand

As discussed in the resonance model of company has following offer which differentiates them
from rest of the competition
1. Prime shipping to all the prime subscribers
2. Huge number of assortments and variety of products
3. Refundability
4. Returnability
5. Value pricing for most of the products
6. Exclusivity of few products (OnePlus Phones)
7. Customer care support

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Can every brand can achieve brand resonance with the customers?
Its every brand dream to have
a greater number of customers
loyal to them, but in reality,
most of the brands are still on
its process of getting more
resonated customers. Every
brand would have their target
segment group (TG), its
primary aim to make sure their
TG is loyal to their brand and
them it can leverage the core
brand to achieve better market
share.

2. The Brand Value Chain:

When the Amazon was launched in India for the first time according to their #Autdiko Ad
campaign Communication, the Ad created had clarity, relevance, distinctive and was consistent
across all the platforms. They were targeting to create more awareness amongst the consumer
base. This with the channel support Amazon could gain better market share further led to more
market capitalization

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4. Personalizing the marketing
Relationship marketing
Amazon is one the biggest gaits who are doing relationship Marketing to drive up their sales
every quarter. These are the following ways of company has chosen to do the relationship
marketing
1. Data-driven Relationship Marketing: It leverages the big data which they have with
them to greet the consumer with their name, and suggest them the best deals what they
were looking for
2. Convenience at the Heart of the Experience: They have ensured that the consumers can
access all the information with respect to their product, and their customer care has the
best support.
3. Making e-commerce a Share-worthy Experience: Amazon made sure that the customers
who have best experience can share it across their peer group and family.

Permission marketing
The Amazon apps when we download, they ask our permission to track our patterns and which
would help us in suggesting a better option with a deal while we are shopping.

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Experiential Marketing
Amazon has created experiential zones in the shopping malls, its latest Amazon’s latest Pop-
Up Shop, it’s a “ kiosk it featured all of Amazon’s latest products, including Amazon Echo,
Fire TV, Kindle e-readers, as well as some Amazon-branded merchandise.”
Amazon go is an experiential shopping space, where even paying you can just pick up and
move out, It automatically deducts from amazon pay account.

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Marketing mix
The 4Ps are called as marketing mix, they are,
1. Price
2. Place
3. Promotion
4. Product
Price
Amazon has come up with a beautiful ad on amazon pantry which says that 35% could be saved
on the groceries purchased by the house holds.
Click here to watch.

Place
Amazon go is retail store which amazon has created to show how to shop without any 00cash
counters and to avoid long queue. This ad shows how we can be cash free shop and just move
out of the store , and the payment happens automatically
Click here to watch

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Promotion:
For every festival or any exclusive sales amazon does this kind of promotional sales, in this
add we can see One plus 7Pro was exclusive launch in Amazon and they promoted across social
media and OTH media to drive the sales .
Click here to watch

Product
Amazon has more that 2 Crore products online which most of them have offers, it could be
cash back, flat % off, or buy one get one free offer! when it comes to the quality of the products,
most of the consumers don’t have any complaints, the ones who had complains were given the
world class customer service. According to them customer is the topmost priority.

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Click here to watch

Marketing campaign in rural India

Amazon India wanted to reach out the most populated areas of rural India.
They partner with offline retail shops, like kirana stores and some local entrepreneurs
They started project Udaan most of the rural customers had a budgeted smartphone with 8
MBPS data connectivity, they had same free to return if the product wasn’t satisfying enough

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campaign is still successful in reaching tier 3 cities and some semi tier 2 citiesThey Connected
with Reliance Jio& connect India also to have a reach in the rural areas.

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The Ad campaign of Amazon Saheli which empowers women entrepreneurs in rural areas
Watch here , this Ad campaign impacted many women across India.

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Survey at IMT Hyderabad
I have surveyed 125 students from IMT Hyderabad , to haver a better sample size and to reduce
the outliers data , the below are the analysis and pictorial representations to depicts the results
of the survey.

This question was to understand about the awareness of the brand, out of 125 people
staggering 99.2 % people know about the brand, this tells us how Amazon as a brand is
successful in its field.
Almost everyone (99.2%) people knew about the brand mantras, its logo, slogan and URLs

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To understand the performance of the brand Amazon, upon asking the below question we got
great ratings from the customers on the scale if 1-7 in Likert, it its more than 6.5.

Delivery is one of the differentiation factor in which Amazon stands tall amongst the
competitors, when asked the question about delivery service, most of the customers were very
content with the current system , and the graph is positively skewed .

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The above 2 questions help to judge the brand most of them think get value for money products
on Amazon and 60% think Amazon fs for those who seek more choices and they have 2Cr+
products.

Amazon is the best for those who seek value for time, the busy people would like to order
online whenever and wherever they want instead of going to retail store which would cost them
more time.

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To understand the resonance the customers are with Amazon, I asked the below question

75% students think that, Prime delivery within 24 hours of ordering is the best value addition
that they seek from Amazon.
48% of students think returnability is also one of the major factors they consider Amazon over
any other shopping websites/Apps.

To understand the loyalty and repurchasing ability of a consumer to understand CLV (customer
life value) out of 125120 have given an average rating of 6 out of 7 for recommending the
brand to other friends. This is perfect validation that our brand at resonance.

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But when we asked if the product wasn’t available on our website, would they ready to switch?
and yes 82% people were ready to switch, even after the brand which had higher reputation
and brand equity.
If Amazon fails to deliver at some point in time, there are many eyes which and mouth open
for criticism and customers would switch in a go.

T
he above facts give us the demographics of the survey and as we can see 63% were male and
76% are in the age of 20-24

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APPENDIX A

Amazon e-Commerce Survey

1.How many online shopping websites you know? *

Flipkart
JABONG
Amazon
Myntra
Shopclues
Paytm
2.Choose the Amazon Logo *

A B C

D E

3. How convenient is shopping ion Amazon? *

Worst 1 2 3 4 5 6 7 Best
4.How do you rate on delivery service of Amazon? *
Worst 1 2 3 4 5 6 7 Best
5.How do you rate products on value for money? *
Not valuable for the money paid 1 2 3 4 5 6 7 Best offers for money paid
6.Who do you think would benefit most from Amazon?
People who seek for quality

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People who don't have time
People who are price sensitive
People who seek value for money
People who seek for more choices
Other:

7.Which value addition from Amazon you like the most?

Prime delivery
Value priced offerings
More variety of products
Returnability
8.What comes in your mind when you think of Amazon?
More choices
Discounts
Value for money
Convenience
Fast Delivery
Other:

9.Would you recommend this brand to your friends

Never 1 2 3 4 5 6 7 Definitely
10.If your product is not available on Amazon what would you do?
Buy from some other retail shop.
Buy from some other shopping website
Wait till it comes on Amazon for better deal
Other:

Name?
Age
below 20
20-24
25-28
29-33
Above 34
Gender
Male
Female
Prefer not to say

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References
https://qz.com/1051814/what-is-amazon-really/
https://www.youtube.com/watch?v=q59ws3U89K0
https://www.outsource2india.com/kpo/samples/amazon-web-research.asp
https://www.linkedin.com/pulse/experiential-marketing-amazon-pop-up-shops-virtual-
joseph-tarnowski
https://economictimes.indiatimes.com/small-biz/startups/how-amazon-is-going-deeper-into-
the-hinterland-with-a-gambit-of-unique-offline-online-blend/articleshow/60714288.cms
https://www.amazon.in/b?ie=UTF8&node=8593331031
https://services.amazon.in/landing/amazonsaheli.html

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