Poses A Double Threat Australian Retailers -Myassignmenthelp.Com

Question: Discuss About The Poses A Double Threat Australian Retailers? Answer: Introducation Amazon is one of the globally renowned organisations which have attained huge success and growth in last few years. The key aim of the company is to develop strong brand value in the Australian market. Amazon offers online retail services to the customers but the company is planning to establish itself in the Australian market and give a tough competition to the existing players of Australia such as Woolworths, Wesfarmers, etc. (Minifie, 2017). In present time Amazon possess high value and holds a strong position in the global market in comparison with its competitors. Amazon enjoys the position of a market leader but the goal is to enhance and develop the brand value with an upsurge rate. The company can gain better value as in present time there is a huge customer base and demand for the supermarkets as people want to save their time by purchasing products from such supermarkets rather than from different stores. Australia is one of the key target markets for Amazon as people have a good purchasing power with high spending rate at the supermarkets (Adhikari, 2016). Being one of the biggest online retail stores, Amazon have developed a strong customer base and renowned brand visibility which can help the company in achieving growth and success in establishing a venture in Australia and giving tough competition to the existing players of the Australian market (Industry, 2011). Research Methods In performing any study there is a need to take use of several tools and resources. For this study, there will also be taken use of a number of tools, techniques and resources so that there can be gathered adequate and significant information. The study will take use of firstly the marketing mix tool which will comprise of the 4Ps of marketing i.e. Product, price, place and promotion. The primary reason behind taking sue of this tool is to understand the marketing and promotions strategies of Amazon and they way in which the brand value of the company can be developed (Reid, 2015). From the tool there will be gathered data that what promotional tools will be the most beneficial for the company to fetch the attention of the target customers. In order to have current value analysis of Amazon there wild be used the comparison chart so that there can be compared the value of Amazon with other existing players in the Australian market (Singh, Jain and Madan, 2016). The next resource which will be used by the company will be the promotional plan so that there can be analysed the objective, budget, goal and time frame of the marketing promotional plan. All these tools, techniques and resources are beneficial for taking use in the study because these tools help in getting a correct set of data and also helpful from future perspectives as these are the guidelines which help in strategically develop the report. Current Value Analysis Analysing the current value of any company is one of the major and vital task for the, long term growth and sustainability of the company. The current value is the company is required to be analysed because of the reason that it helps in understanding how competitive an organisation is and in what manner the company can make huge profits through various strategies and pricing techniques. Amazon is a well-known name in the international markets and almost maximum of the potential customers of Australia are aware of the company and its services and products (Capital Cube, 2017). To analyse the current value of Amazon thee has been compared the results with other companies comprising Woolworths, Myer, Coles, etc. In comparison with all these companies and their supermarkets, the supermarkets of Amazon are initially smaller in size (Gielens and Dekimpe, 2009). There are supermarkets and there stores in Australia which offer great services to the customers but in terms of values analysis on the basis of home delivery, it has been analysed that Amazon possess huge competitive benefits as it offer improved service of delivery to the customers so that there can be extended customer base. Following is the chart presenting the current value of the various renowned retail organisations of Australia. In comparison with big players of Australia such as JB HiFi, Coles, Woolworths, etc. it has been analysed and evaluated that Amazon holds a much larger market share with increased sales in the Australian markets. it shows the enhanced visibility of the brand that support the development of Amazon brand in Australia (Singh, Jain and Madan, 2016). Thus, from the analysis and the comparison, it is clearly evident that Amazon is making huge profits because of the vast difference existing between the cost and the sales (Johnston, 2017). It is crucial to understand that the improved brand value and the organisational performance are the key reflection of the enhanced market share and value of the company (The Conversation, 2017). The strong value of Amazon not only helps the company in remaining competitive but also support in capturing the new markets with a higher pace (Smith, Rupp and Offodile, 2017). Another major factor which can help in analysing the current value of Amazon in the Australian market is the market capitalisation. The term market capitalisation can be explained as the total valuation of the organisation on the current market share price as well as the total number of the unpaid stocks (Tyagi, Singh and Agarwal, n.d.) The market capitalisation can be intended by having a multiplication of the total unpaid shares or the outstanding shares of the organisation with the current market price of the organisational share. It is one of the most significant features which can help the investors in analysing the risks and the returns associated with the company (Singh, Jain and Madan, 2016). In terms of market capitalization, Amazon is at the top position in comparison with other retailers of Australia (Cloutman, 2017). To analyse the current value of Amazon there has been compared the results with other companies such as Woolworths, Myer, Coles, etc. In comparison with all these companies and their supermarkets, Amazon is very much high in market capitalisation which depicts the threat imposed by Amazon on the existing supermarkets of the country (Capital Cube, 2017). The current value analysis of Amazon can also be measured in terms of the diverse product portfolio. The supermarkets of Australia such as Wesfarmers, Myer, etc. generates revenues from purchasing and reselling the products but in case of Amazon, the organisation also has a lot of other service which are being offered by the company in various segments (Aversa, Haefliger and Reza, 2017). It also includes the revenue generated from the third-party seller fees. There are companies which pay Amazon the third party fees for selling their products at the Amazon store so that there can be a better access by the customers (Smith, Rupp and Offodile, 2017). The annual reports of the company show the increased revenues, enhanced market capitalisation and robust market share as the key signs of strong current value of the company and the higher chances of improved brand value and success in the Australian market (Pash, 2017). Marketing Promotion Plan To establish Amazon stores at various locations of Australia The key goal behind the marketing activity is to enhance the reach to the customers. The more number of stores will help to get increased number of customers (Rosenbloom, 2012). The time frame will be from March 2018 to December 2018 There will be requiring high budget for the establishment of the stores i.e. approximately for registration $7,050, for legal expenses $30,300, for rent and property $105,600, for start-up inventory $1,000,000 and for other expenses $200,000. To promote the brand The key goal behind the marketing activity is to enhance the visibility of the brand and to have huge customer base. The higher the promotional activities takes pace, the better is the brand visibility The time frame will be from October 2018 to January 2019 Budget for various marketing and promotional activities: Building hosting website: $8,000 Flyer Printing: $20,500 Marketing promotion expenses: $30,500 Advertisements and Campaigns The key goal behind the marketing activity is to make the brand popular among the masses so that sales can be increased (OLANOV, 2012). The time frame will be from January 2019 to March 2019 Budget required: For all advertisements and campaigns across the country there will be required initially a budget of $150,000. Product Amazon is ranked as one of the best online retailer across the world. There are several customers which came from various regions of the world. In Australia also there is a vast demand for such store which can offer multiple products at a single store. In the Supermarket to be launched by Amazon, there will be offering a number of products that comprises of different types of goods for diverse set of customers. The retail division of Amazon will include all the things ranging from the auto parts to apparels, electronic gadgets to toys, gardening equipment to jewellery, beauty-health utilities to home decor, veggies to other kitchenware. Amazon will also comprise of those products which will include the third party products too (Reid, 2015). Being a renowned brand Amazon will also offer the customers with products like mobile phones, kindle, books etc. There will be a separate section of groceries in the section of Amazon Fresh so that customers can easily have ac access to the requir ed stuff (Nizam and Hoshino, 2016). The products in the Amazons marketing mix will have an extended and diverse portfolio with also the facility of home delivery. The company will keep on expanding its product portfolio so that there can be satisfied the needs of enhanced customer base (Weber and Badenhorst-Weiss, 2016). The main marketing promotion objective of the product mix is to reach to an extended customer base by offering them diverse set of products and fulfilling their needs if different products available under one roof (Armstrong, et al., 2014). Price Amazon always offers competitive prices so that the company can remain as the market leader. While establishing stores in Australia, the company will take use competition based pricing strategy only in the marketing mix. There are offered diverse set of products by Amazon so the pricing strategies will also be varied. For the grocery products, the prices will be highly competitive so that the company can capture the market and have an improved market share in the Australian market. The prices will also be adjusted according to the demand, competition and availability. There will also be offered prime services on the stores if the customers want the delivery in next few hours or want customized products. Such kinds of services are the value added services so the customers will get them on a bit high price range (Reid, 2015). To establish a strong market in Australia there is a need to give tough competition to the existing players, thus, the key pricing strategy will be low cost strat egy so that the attention of the potential customers can be fetched and can be retained for a longer time period (Singh, 2017). The main marketing promotion objective of the price mix is to reach to an extended customer base by making the products available at low and competitive prices so that the customer can switch to Amazon from other competitors. Once the market can be captured, then Amazon can take use of differential and competitive pricing (Simgh. 2012). Place The place in the marketing mix is of high significance as it is the key location where the store or the supermarket will be established and it is required to be strategically analyse that which location will suit best for improving they brand and increasing the sales. The place is considered as a distribution channel for the company from where the sales begin (Armstrong, et al., 2014). Amazon will open at a number of locations as the supermarkets and the convenience stores such as in the prime locations like Victoria, Melbourne and various other parts of Australia. There will also be developed the mobile application for the customers so that they can purchase and can directly pick the stuff from the store. To have extended distribution channel, it is highly essential to locate the supermarket at the most crowded areas of the country. The locations where the company will establish its stores will also be placed in accordance with the target market such as where there are high chances of visit of high and medium class people who possess good purchasing power. Thus the key locations for the supermarket will also be the malls and crowded building such s shopping centres (Bashar, Ahmad and Wasiq, 2012). Promotion Amazon always take sue of aggressive and sound promotional strategies and advertising for the promotion of the brand. When it comes to the marketing of the products there is no stone left unturned in the complete promotional mix. The key focus is upon the advertisements i.e. in newspapers, prints and television. Similarly it is also significant for Amazon to have high promotion of the brand in order to develop the brand and enhance the customer base (OLANOV, 2012). Amazon will take use of social media marketing and creative television commercials for targeting the customer. There will be extensive and vital use of sales promotion where the products will be offered on the discounted prices at the time of festivals, occasions and holidays (Rosenbloom, 2012). For improving the brand image, the company will also take use of the public relations as the launching of the Amazon smile for donating funds to the charitable organisations. As well as serving to various NGOs is also one of the pu blic relation marketing activity of Amazon with the help of which it can promote itself and the brand in Australia (Singh, 2012). Amazon will also take use of various loyalty schemes to retain the customers which can benefit the customers with several discounts and offers on various other things. For the efficient promotion of the brand, the company will take use of newsletters and magazines so that a larger range of customers can be targeted. The online media will be one of the best sources of promoting the stores established in Australia as on various social media platforms, Amazon can have its advertisements and make the people aware about the new supermarkets. Television commercials and web based advertising will be the key promotional strategies for the company inn order to improve the visibility of the brand (Bashar, Ahmad and Wasiq, 2012). Conclusion Being one of the biggest online retail stores, Amazon has developed a strong customer base and renowned brand visibility which can help the company in achieving growth and success in establishing a venture and improving the brand value in Australia. From the various research methods used and analysis performed, it can be concluded that Amazon gives intense and tough competition to the existing supermarkets of Australia. There are vast chances that in the coming time, there will be a great threat to the sustainability and existence of these supermarkets. Summing up, it can be stated that there are immense opportunities for Amazon to grow and set a benchmark in the Australian retail industry by expanding its reach to each and every household of the county. This will help the company in improving the brand value and so the revenues of the organisation. It can also be conclude that the current value of Amazon is the biggest strength of the company which shows the competitive advantage ga ined by the company over its competitors. The strong current value is a threat to other companies and also a factor of improved brand value. For performing this, there is also a need to analyse he marketing and promotional activities of the company by having an adequate budget and timeframe. The marketing mix of Amazon will support the company in developing the brand value by having effective promotions of the brand through number of channels. Thus, it can be concluded that it is the prime time when Amazon can win the Australian retail market and achieve sound brand visibility and value through its unique way of offering products and services to the customers. References Adhikari, S. (2016). 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