Introduction In this paper, we are going to continue investigating Amazon Kindle Fire, the newest tablet in the market. It is interesting to analyze this to the strongest competitor, Apple iPad. We will discuss what kind of category Kindle Fire belongs to, how is its product life cycle and its branding strategy. And we will take a look at what distribution strategy it applies, what the pricing strategy is as well as its promotion strategy. Finally, we will make some recommendations to Amazon Kindle Fire’s marketing mix, which are product, price, place and promotion. Classification of products
Amazon Kindle Fire belongs to the Shopping product category. •Purchase behavior of Consumers: Consumers will only buy Kindle Fire occasionally. Once they own one tablet, they can use it for a long period of time and don’t need to buy it again. Consumers will also be comparing the prices. They would like to compare Kindle with other similar products to see which one is better and which one satisfies their needs the most before they make a decision. •Product: The products of shopping goods are cameras, TVs, briefcases and clothing. As an electronic device, Kindle Fire tablet belongs to this category without doubt. Price: The products of shopping goods are fairly expensive. The price of $199 in the market is lower than any similar product. But it is still higher than those products we use frequently. So it is fairly expensive. •Place (distribution): There are many places where you can buy Kindle, such as FutureShop, BestBuy and Wal-mart. You can also order online....
In a word, anywhere with electronic devices potentially has Kindle for sale. •Promotion: There are many commercials are available on YouTube to promote Kindle Fire. And there are many websites that give out the comparison between Kindle Fire and iPad.
Consumers will easily see what the differences are. Product life cycle Introduction Stage: When Amazon Kindle Fire was first introduced to the market, not so many people knew about this tablet. In this stage, Amazon was actually building awareness among consumers. There are many commercials in YouTube and many advertisements to promote Kindle Fire. And the sale should be increasing slowly and there should be little competition. However, Amazon hasn’t released any data to show how Kindle Fire was doing when first released. Growth Stage: When products enter growth Stage, it has a rapid rise in sales.
And many consumers already know about this product and will encourage other to buy. It is said that Kindle Fire has become the top 1 sale in Best Buy (Mills, 2011). There is no doubt that Kindle Fire has entered Growth Stage and it is staying at this stage right now. At this stage, competition will become fierce as other competitors are aware of what it is mean to their target market. Maturity Stage: After a period of time, Kindle Fire will enter Maturity Stage. The sale will stay at a certain level because other competitors have increased their sales, making Kindle Fire no longer advanced to all.
At this stage, Amazon will soon reintroduce any tablet which is advanced than Kindle Fire to the market in
order to earn money and maintain its target market. Decline Stage: After a new product is introduced, Kindle Fire would be no longer produced as much as before because it is no longer advanced. Its sale declined rapidly and it cannot help the Amazon earn money. It may be even stopped coming out from the manufacture. No promotion, no distribution as well. Branding When considering Kindle Fire tablet, we will think of Amazon. It is 17 years since it was founded by Jeff Bezos.
And Jeff named his company after the world’s largest river, Amazon. It is the world’s largest online retailer now. Amazon is so well-known that it has separate websites in so many countries. And the fact that consumers have been exposed to and interacted with Amazon for a long time creates strong brand equity as well as brand loyalty. According to a survey (Amazon overtakes Apple in brand loyalty survey, 2011) using both in-person and telephone interviews, technology brands take 20 spots among the top 50 brands commanding the most customers loyalty and Amazon is the top one.
It is easily seen that Amazon brand has a remarkable fascination. In addition, Amazon has applied for its own patents, copyrights and trademark to protect its products, brands as well as its company. •Brand Loyalty of consumers: Some consumers are very loyal to brands, but some don’t. The loyal customers will only buy the products from the company they stick to. Amazon loyal consumers will definitely prefer Amazon Kindle Fire rather than any other company. However, consumers can also accept substitute products, such as Apple iPad, HP Touchpad and Samsung Galaxy Tab. Distribution strategy
When Amazon Kindle Fire was released, it was only available within United States and there were even no schedules for international shipments. In America, consumers can buy Kindle Fire at Best-Buy, Wal-mart and other electronic stores as well as online buying. The intermediaries Amazon use to sell Kindle Fire are straight-buy and retailer Straight-buy: some consumers are easy. They don’t want to shop. They prefer sitting in front of the computer and make their order. This kind of consumers will do the online shopping. When consumers order products online, they are actually negotiating directly with the company.
Consumers pay for what they order in Amazon’s website and Amazon will mail the products straight to consumers. There are no middlemen, no retailers or any other agent. It is going from producer to consumer. Retailer: not all the consumers would like to go online and buy items they need. Some of they prefer to shop in the market. They want to touch and compare it to other similar products. And this is what Amazon focuses on because there are so many retailers available to consumers. Amazon contacts with retailers, such as Best-Buy, to let them make the purchase orders.
After Best-Buy gets the items, it will sell it directly to the consumers. It is going from producer to retailer to consumer. And consumers can also get the pre-sale and post-sale services from the retailers, which will, in a degree, enchant consumers purchasing decisions. Pricing strategy As the strongest advantage, the price of
- Audience Theory
- Brand Management
- Competitor Analysis
- Customer Service
- Discount Store
- Electronic Commerce
- Fixed Cost
- Internet Marketing
- Laundry Detergent
- Market Research
- Market Segmentation
- Marketing Management
- Marketing Mix
- Marketing Plan
- Marketing Research
- Marketing Strategy
- Online Shopping
- Point Of Sale
- Product Differentiation
- Promotion And Marketing Communications
- Research Methods
- Supply And Demand
- Total Cost
- Total Quality Management