Amozon Kindle Fire Marketing Essay Example

easily discern the distinctions. The product life cycle's introduction stage involves Amazon Kindle Fire's initial entry into the market, during which the tablet was relatively unknown to many people. At this stage, Amazon focused on generating consumer awareness through numerous YouTube commercials and advertisements to promote Kindle Fire.

Amazon has not provided any data on the initial performance of Kindle Fire, but it is expected that the sales of this product would have been increasing slowly with little competition. Once the product enters the growth stage, there is a rapid rise in sales as consumers are already aware of the product and will influence others to purchase it.

According to Mills (2011), Kindle Fire has become the top seller at Best Buy. It is currently in the Growth Stage, facing increasing competition from other competitors who are aware of its impact on the target market. Eventually, Kindle Fire will enter the Maturity Stage, where sales will plateau due to competitors increasing their own sales. During this stage, Amazon will introduce a more advanced tablet to maintain its target market and generate revenue.

During the decline stage, the production and sales of Kindle Fire decrease significantly due to its lack of advancements. As a result, it becomes less profitable for Amazon and may eventually be discontinued. This decline is evident through rapid sales decline, lack of promotion, and distribution.

The Kindle Fire tablet is closely associated with Amazon, a company established by Jeff Bezos seventeen years ago. Bezos named the company after the world's largest river – Amazon. Presently, Amazon stands as the foremost global online retailer and has developed separate websites in multiple countries.

Amazon has strong brand equity and

loyalty due to its extensive exposure to and engagement with consumers. In a 2011 study involving in-person and telephone interviews, Amazon outperformed Apple as the most trusted technology brand. It ranked first among the top 50 brands with the highest customer loyalty, highlighting the strong appeal of its brand. Additionally, Amazon has taken steps like patenting, copyrighting, and trademarking to protect its products, brands, and overall company.

•Brand loyalty varies among consumers, with some being loyal to specific brands while others are not. Loyal customers will exclusively purchase products from the company they are devoted to, such as Amazon loyal consumers preferring Amazon Kindle Fire over competitors. However, consumers may also consider substitute products like Apple iPad, HP Touchpad, and Samsung Galaxy Tab. In terms of distribution strategy, when Amazon Kindle Fire first launched, it was initially limited to the United States with no set plans for international shipments.

In America, consumers have the option to purchase the Kindle Fire from various electronic stores like Best-Buy and Wal-mart, as well as online. Amazon utilizes intermediaries, such as straight-buy and retailer Straight-buy, to facilitate the sale of Kindle Fire. This offers convenience to some consumers who prefer the ease of placing orders from their computers.

The type of consumers who engage in online shopping negotiate directly with the company when placing their orders. These consumers make their payments on Amazon's website and have the products delivered to them without any intermediaries such as retailers or agents. Hence, the process goes straight from producer to consumer.

Retailers, such as Best-Buy, play a crucial role for consumers who prefer physical shopping and want to personally examine and compare products. Amazon recognizes

the importance of this preference and partners with various retailers to facilitate purchase orders.

Best-Buy and Amazon offer products directly to consumers, establishing a direct path from producer to retailer to consumer. Retailers provide pre-sale and post-sale services that can impact consumer buying choices. The pricing strategy of the Amazon Kindle Fire is remarkable as it is priced at $199, making it the most economical tablet available. Amazon follows a 6-step process to determine the selling price of the Kindle Fire, which includes special adjustments to the listed or quoted price. At present, customers have the option to buy the product for $199.

At the moment, there are no promotions or discounts for the recently released product. Customers are currently conducting research on this product. The Kindle Fire is available in only one version, which is priced at $199 and comes in black color with a single size and memory capacity.

•Our profit-oriented strategy for pricing our product is to set it at $199, making it the most affordable tablet available. This will drive high sales, especially since there is a strong demand for affordable tablets in the introduction stage. Consequently, Amazon will generate substantial profits from this product.
•Contrarily, the Amazon Kindle Fire is sold at a loss. As a result, regardless of the quantity of tablets sold, there will be a decline in profit.

When the volume increases, the loss increases proportionally. •Determine demand and revenue levels It is projected that the pricing strategy will drive up demand for Kindle Fire. However, since Kindle Fire is being sold at a loss, the revenue will certainly be negative. Identify pricing limitations and goals The pricing limitations for Kindle Fire

are determining the price and volume needed to break even and discerning what consumers are willing to pay. Promotion strategy To promote the latest product, Kindle Fire tablet, Amazon will utilize a range of marketing communications. Occasionally, it will employ a single promotional tool.

Sometimes a combination of different communications is used, but since Kindle Fire has only been on the market for less than 1 month, Amazon has not released any data on its promotional methods. Generally, there are 5 marketing communications that are employed: Advertising, Personal Selling, Public Relations, Sales promotion, and Direct Marketing. Additionally, Amazon has not provided any information about the amount of promotion they will be doing for Kindle Fire. Assuming Amazon has allocated sufficient funds for promotion, we can proceed.

During the introduction stage, Amazon heavily promoted the Kindle Fire through TV commercials and magazine ads. Their main goal was to raise consumer awareness about this new tablet, which was relatively unknown at the time. Advertisements played a crucial role in spreading information and generating public interest. According to a survey conducted by BetaNews, 31% of respondents were already familiar with the Kindle Fire before its launch.

In a report by Wilcox (2011), it was revealed that 66 percent of customers have already preordered the Kindle Fire, with an additional 23.26 percent planning to purchase it within the next three months. The level of interest generated by Amazon's advertising for the Kindle Fire is remarkable. Currently in its growth stage, the Kindle Fire relies heavily on personal selling as its primary marketing communication strategy. As a result, Amazon's sales representatives are tasked with carrying out transactions on behalf of the company.

Amazon's efforts

to provide comprehensive information about Kindle Fire aim to persuade consumers and directly contribute to the company's profit. This strategy no longer focuses on creating public awareness but instead seeks to stimulate demand. The persuasive speeches of salespersons in personal selling effectively motivate consumers to purchase Kindle Fire, while also reinforcing their brand loyalty.

Once salespersons successfully persuade consumers to purchase the Kindle Fire, they offer various benefits, such as requesting emails to provide the latest news about the Kindle Fire and offering free trials of magazines and TV shows, among others. These appealing benefits enhance the consumers' perception and increase the likelihood of them revisiting in the future. In addition to personal selling, Amazon also utilizes advertising to promote at this stage. Advertising aims to either attract consumers to physical stores or persuade them to place online orders, as it is ineffective without the presence of a salesperson.

Maturity stage refers to a period in which the market for Kindle Fire experiences decreased competition and stagnant sales. Consequently, Amazon resorts to sales promotion strategies to dispose of excess inventory. This creates the perception of an excellent deal for consumers interested in purchasing a Kindle Fire. Additionally, Amazon carries out advertising campaigns to remind consumers about Kindle Fire, although these efforts may not directly impact sales. The purpose of these marketing communications is to reinforce brand loyalty among consumers.

To increase the market for Amazon's next product, enhancing brand loyalty is crucial. Once the Kindle Fire enters its decline stage and becomes unprofitable, Amazon will likely cease production. During this phase, there will be minimal personal selling, advertising, or sales promotion efforts. It is even possible that Amazon

may discontinue investing in promoting the Kindle Fire entirely. The goals and budgets for promotion will be significantly reduced. Our recommendation is to develop a superior product available at a competitive price.

To decrease production costs, it is essential to hire skilled engineers, despite the initial expense. This investment will eventually result in increased revenue. Moreover, improving our memory capacity is crucial for maintaining competitiveness. Our pricing is equivalent to that of our rivals. Furthermore, overhead costs can be reduced by minimizing advertising and manufacturing expenses.

At present, we are losing $2.70 for every Kindle purchased. However, there is potential to decrease our operating expenses further. Despite our excitement for the upcoming launch of our tablets, which will ultimately lead to overall profits, we can still achieve profitability for both products simultaneously.

If we can generate profits from the kindle, we can achieve even higher profits from our tablets. Our Place Product is currently available for purchase at most electronic stores. Regrettably, the Amazon Kindle Fire is only accessible within the United States. Nonetheless, consumers can find it at nearly every electronic store in America.

In order to expand its consumer market, Amazon should establish a schedule for shipping its products to various countries. Additionally, they should make the Kindle Fire available for online orders. Currently, we are only in the introductory stage of promoting this product, as it was released on November 14, 2011. Therefore, promotional activities should be avoided for at least another month.

The price of our product is already affordable and consumers are still discovering its potential. Overall, the Amazon Kindle Fire has a dominant presence in the tablet market. It is classified as a shopping

good and will experience the stages of introduction, growth, maturity, and decline in its product life cycle. The effective distribution, pricing, and promotion strategies implemented by Amazon have contributed to the success of the Kindle Fire since its release.

Despite facing obstacles in its long-term growth, Amazon remains committed to improving the Kindle Fire to meet customer demands and achieve success. Although it has not yet made a significant impact in the market currently dominated by Apple iPad since its recent launch, there are signs that the Kindle Fire is surpassing the iPad in certain aspects. The impact of Amazon's Kindle Fire on the tablet market will be fascinating to watch.

There is no denying that Amazon has emerged as the leading competitor in the tablet market.