Amazon: Branding Strategy
Amazon.com Inc. is an e-commerce company that has recorded tremendous growth since its inception to become one of the world’s leading online retailing companies, selling a wide range of products.
Launched in 1995 by Jeff Bezos, Amazon.com started out as an online bookstore, but soon expanded to sell other products such as electronics, DVDs, CDs, software, video games, clothing, furniture, food, toys and jewelry.
Starting as a US-based company, Amazon has now expanded significantly and operates e-commerce websites in more than 10 countries including UK, Canada, and the large Asian customer markets of China and India. The company continues to explore new avenues for expansion through market development and penetration, and product development.
Recording an annual revenue of about $100billion in 2015, and boasting of over 300million customers; Amazon was named America’s most reputable company, and the 11th most innovative company in the world by Forbes in 2016. Amazon stands out among other online retailers for its unique and effective branding strategy.
Search Database
Amazon’s strong search database allows customers to easily type in and search for their favourite books online, while sorting books into various categories allows for easy navigation for new customers to explore the library before settling on a purchase.
With a vision to become the most customer-centric company in the world, Amazon shunned the temptation of making immediate profits to survive in an increasingly competitive e-commerce industry. It recorded its first net profit in 2001. “I would define Amazon by our big ideas; which are customer centricity and innovation,” said Jeff Bezos, founder and CEO of Amazon.
Customer satisfaction and engagement plays a major role in the explosive growth of Amazon. By offering products at affordable rates, Amazon continues to attract large customer purchases. However, price is not the only reason for Amazon’s success.
Product Reviews
By introducing options for product reviews and creating a user-friendly interface, Amazon continues to captivate the imaginations of its customers while forging ahead of competition. A personalized shopping experience makes it easier to navigate the Amazon website, with customers getting product recommendations based on their browsing history and previous purchases. This has seen Amazon top the American Customer Satisfaction Index.
In 1996, Amazon launched the ‘Associate’ program which allows individual website owners to advertise Amazon products on their websites for a 3-8% sales commission. When customers click on the advert, they are immediately redirected to the Amazon website to make their item purchase.
Unlike many other companies, Amazon demonstrates commitment to its customers by rewarding their loyalty. Prime members get unlimited access to movies, songs, games, and audio books for streaming and free returns for only $99 per year. This strategy ensures customer engagement and loyalty.
Innovative Products
Amazon continues to grow on the technology front too, and has become a game changer in the retailing industry with the introduction of new and innovative products such as Kindle e-book, reader, Amazon Fire tablet, and TV. Since most people use high-end smartphones to surf the web, Amazon has a mobile app (Amazon Prime) that indicates the company’s change with trends. Amazon Prime has been an extremely successful program with over 63 million US customers registered on the platform.
The additional introduction of Alexa and Echo would imply that Amazon is gearing up to become a major rival to tech giants such Google, Apple, and Samsung. Amazon describes Echo as “a hands-free speaker you control with your voice”.
Amazon’s branding strategy is simple and straightforward. It’s all about using innovative technology to provide a first-rate customer experience, and drive growth and revenue.
