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“A STUDY ON THE EFFECTIVENESS OF THE ADVERTISING

STRATEGIES IMPLEMENTED BY AMAZON INDIA”

Project Report submitted in partial fulfillment of the Requirements of the 2 years


Post Graduate Diploma in Business Administration.

SUBMITTED BY

THADOI DEVI

(REG.NO. M16DM68)

Under the guidance of

DR. SHEEBA THOMAS

MOUNT CARMEL INSTITUTE OF MANAGEMENT

#58, PALACE ROAD, BANGALORE, 560 052

2016-18

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CERTIFICATE

Certified that this dissertation is based on an original project study conducted by


Thadoi Devi under my guidance. She has attended all the required guidance
sessions held. This project report has not formed a basis for the award of any other
Degree/ Diploma of any University of Institution.

___________________ ___________________

(DR. SHEEBA THOMAS) (DR. SR. ARPANA)

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ACKNOWLEDGMENT

This project would not have been possible without the support and help of many
individuals.

I would also like to express my sincere gratitude to Prof. Solomon- Coordinator,


Dr. Sr. Arpana- Director, Prof. Philcy Philip and other members of Mount Carmel
Institute of Management for their kind cooperation and encouragement towards
completing the project successfully.

I am highly thankful to Dr. Sheeba Thomas for her guidance and support for
helping me complete the project as well as for providing necessary information
regarding the project.

I extend my gratitude towards my parents and the Almighty for their blessings.

I would also like to thank all my friends who have willingly helped me out with the
project.

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DECLARATION

I hereby declare that the project report titled “A STUDY ON THE


EFFECTIVENESS OF THE ADVERTISING STRATEGIES
IMPLEMENTED BY AMAZON INDIA”. During academic year 2016 – 2018,
submitted in partial fulfilment of the requirements for the award of Post Graduate
Diploma in Business Management in original work carried out by me under the
guidance of Prof, Sheeba Thomas, Professor, Mount Carmel Institute of
Management, Bangalore.

I also declare that this project has not been submitted previously to any other
university or institution for the award of any other degree or diploma.

DATE: THADOI DEVI


PLACE: M16DM68

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TABLE OF CONTENTS

CHAPTER.NO TOPIC PAGE NO.

1 Introduction 2

2 Design of the study 20

3 Profile of the Company 31

4 Analysis & Interpretation 40

Summary of findings,
5 74
conclusion & suggestions

6 References 82

7 Annexure 83

5
LIST OF TABLES AND GRAPHS

PAGE
SL.NO TOPIC NO.
TABLE 4.1 :-TABLE SHOWING GENDER WISE
DISTRIBUTION RESPONSES
1 41
GRAPH 4.1:- GRAPH SHOWING GENDER WISE
DISTRIBUTION RESPONSES
2 42
TABLE 4.2 :- TABLE SHOWING THE AGE GROUP OF
3 THE RESPONDENTS 43
GRAPH 4.2:- GRAPH SHOWING THE AGE GROUP OF
4 THE RESPONDENTS 44
TABLE 4.3:- TABLE SHOWING THE OCCUPATION OF
5 THE RESPONDENTS 45
GRAPH 4.3:- GRAPH SHOWING THE OCCUPATION OF
6 THE RESPONDENTS 46
TABLE 4.4 :- TABLE SHOWING THE QUALIFICATION
7 OF THE RESPONDENTS 47
GRAPH 4.4 :- GRAPH SHOWING THE QUALIFICATION
8 OF THE RESPONDENTS 48
TABLE 4.5:- TABLE SHOWING THE INCOME LEVELS
9 OF THE RESPONDENTS 49
GRAPH 4.5:- GRAPH SHOWING THE INCOME LEVELS
10 OF THE RESPONDENTS 50
TABLE 4.6:- TABLE SHOWING THE FIRST TIME
RESPONDENTS CAME TO KNOW ABOUT AMAZON
11 51
12 GRAPH 4.6 :- GRAPH SHOWING THE FIRST TIME 52
RESPONDENTS CAME TO KNOW ABOUT AMAZON

6
TABLE 4. 7 :-TABLE SHOWING WHEN DO THEY
GENERALLY SEE AN AMAZON AD 53
13
GRAPH 4.7:- GRAPH SHOWING WHEN DO THEY
GENERALLY SEE AN AMAZON AD 54
14
TABLE 4.8 :-TABLE SHOWING WHICH ACCORDING TO
YOU IS THE MOST COMMON ADVERTISING APPEAL
55
USED BY AMAZON ADS
15
GRAPH 4.8:-GRAPH SHOWING WHICH ACCORDING
TO YOU IS THE MOST COMMON ADVERTISING
56
APPEAL USED BY AMAZON ADS
16
TABLE 4.9 :- TABLE SHOWING HOW DO YOU FIND
AMAZON ADS THAT YOU HAVE SEEN/HEARD TILL 57
17 NOW
GRAPH 4.9 :- GRAPH SHOWING HOW DO YOU FIND
AMAZON ADS THAT YOU HAVE SEEN/HEARD TILL 58
18 NOW
TABLE 4.10 :- TABLE SHOWING WHAT IS THE
PERCEPTION OF AMAZON IN YOUR MIND
59
(POSITIONING)
19
GRAPH 4.10:- GRAPH SHOWING WHAT IS THE
PERCEPTION OF AMAZON IN YOUR MIND
60 59
(POSITIONING)
20
TABLE 4.11 :-TABLE SHOWING HOW MANY AMAZON
61
21 CAMPAIGNS ARE YOU AWARE OF
22 GRAPH 4.11:- GRAPH SHOWING HOW MANY 62
AMAZON CAMPAIGNS ARE YOU AWARE OF

7
TABLE 12 :- TABLE SHOWING DO YOU THINK
AMAZON ADS HAVE TRIGGERED YOU TO SHOP 50
23 FROM THEM
GRAPH 12 :- GRAPH SHOWING DO YOU THINK
AMAZON ADS HAVE TRIGGERED YOU TO SHOP 51
24 FROM THEM
TABLE 13:- TABLE SHOWING DO YOU HAVE FAMILY
52
25 MEMBERS ABOVE THE AGE OF 50
GRAPH 13:- GRAPH SHOWING DO YOU HAVE FAMILY
53
26 MEMBERS ABOVE THE AGE OF 50
TABLE 14 :- TABLE SHOWING IF "YES" ARE THEY
54 67
27 AWARE OF AMAZON
GRAPH 14 :- GRAPH SHOWING IF "YES" ARE THEY
55
28 AWARE OF AMAZON
TABLE 15:- TABLE SHOWING DO PEOPLE
56
29 RECOMMEND YOU TO SHOP FROM AMAZON
GRAPH 15:- GRAPH SHOWING DO PEOPLE
57
30 RECOMMEND YOU TO SHOP FROM AMAZON
TABLE 4.16:- TABLE SHOWING DO YOU RECOMMEND
58
31 PEOPLE TO SHOP FROM AMAZON
GRAPH 4.16:- GRAPH SHOWING DO YOU
59
32 RECOMMEND PEOPLE TO SHOP FROM AMAZON

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CHAPTER 1

INTRODUCTION

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INTRODUCTION TO MARKETING

Marketing is the science of meeting the needs of a customer by providing valuable

products to customers by utilizing the expertise of the organizations, at the same

time, to achieve organizational goals. Marketing is defined by the American

Marketing Association as "the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large.

With the definition, it is important to realize that the customers can be an

individual user, a company, or several people who contribute to the purchasing

decision. The product can be a good, a service or even an idea – anything that

would provide some value to the person who provides an exchange. An exchange

is most often thought of as money, but could also be a donation of time and effort,

or even a specific action. Classic marketing is often described in terms of the four

p’s which are:

 Product: what good or services are offered to customers


 Promotion: how the product communication the values of its products
 Price: the value of the exchange between the customers and products
 Place: how the product is delivered to the customer

SCOPE OF MARKETING

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1. Goods:

Physical goods constitute the major part of a country’s production and marketing

effort. Companies market billions of food products, and millions of cars,

refrigerators, television and machines.

2. Services:

As economies advance, a large proportion of their activities is focused on the pro-

duction of services. Services include the work of airlines, hotels, car rental firms,

beauticians, software programmers, management consultants, and so on. Many

market offerings consist of a mix of goods and services. For example, a restaurant

offers both goods and services.

3. Events:

Marketers promote events. Events can be trade shows, company anniversaries,

entertainment award shows, local festivals, health camps, and so on. For example,

global sporting events such as the Olympics or Common Wealth Games are

promoted aggressively to both companies and fans.

4. Experiences:

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Marketers create experiences by offering a mix of both goods and services. A

product is promoted not only by communicating features but also by giving unique

and interesting experiences to customers. For example, Maruti Sx4 comes with

Bluetooth technology to ensure connectivity while driving, similarly residential

townships offer landscaped gardens and gaming zones.

5. Persons:

Due to a rise in testimonial advertising, celebrity marketing has become a business.

All popular personalities such as film stars, TV artists, and sportspersons have

agents and personal managers. They also tie up with PR agencies for better

marketing of oneself

6. Places:

Cities, states, regions, and countries compete to attract tourists. Today, states and

countries are also marketing places to factories, companies, new residents, real

estate agents, banks and business associations. Place marketers are largely real

estate agents and builders. They are using mega events and exhibitions to market

places. The tourism ministry is also aggressively promoting tourist spots locally

and globally.

7. Properties:

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Properties can be categorized as real properties or financial properties. Real

property is the ownership of real estates, whereas financial property relates to

stocks and bonds. Properties are bought and sold through marketing.

Marketing enhances the need of ownership and creates possession utility. With

improving income levels in the economy, people are seeking better ways of saving

money. Financial and real property marketing need to build trust and confidence at

higher levels.

8. Organizations:

Organizations actively work to build image in the minds of their target public. The

PR department plays an active role in marketing an organization’s image.

Marketers of the services need to build the corporate image, as exchange of

services does not result in the ownership of anything. The organization’s goodwill

promotes trust and reliability. The organization’s image also helps the companies in

the smooth introduction of new products.

9. Information:

Information can be produced and marketed as a product. Educational institutions,

encyclopedias, non-fiction books, specialized magazines and newspapers market

information. The production, packaging, and distribution of information is a major

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industry. Media revolution and increased literacy levels have widened the scope of

information marketing.

10. Idea:

Every market offering includes a basic idea. Products and services are used as

platforms for delivering some idea or benefit. Social marketers widely promote

ideas. Maruti Udyog Limited promoted safe driving habits, need to wear seat belts,

need to prohibit children from sitting near the driver’s seat, and so on.

INTRODUCTION TO ADVERTISING

Advertising is the concept of communicating a message about goods and services

to a customer. Advertising is done using various media like TV, print, radio, online,

outdoor etc where advertisements are showcased showing the value to the

customer. Advertising is one of the most critical components of marketing.

IMPORTANCE OF ADVERTISING

Several companies are producing goods and products, which are critical for a

customer to fulfill their needs. However, with tremendous competition and limited

span of attention for a customer, it becomes difficult for a customer to know about

a product or a service. Hence advertising plays an important role in communication

the value proposition of a company’s offering to the customer. An advertisement


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clearly highlights the product/ service, its utility and also builds a connect with the

customer. Advertising and marketing a brand enables to reach out, teach about the

product and ensure that the customer is aware about the company. All these things

can influence the buying behaviour of a customer.

COMPONENTS OF ADVERTISING

Advertising can be broadly broken down into four major components:

1. Advertising strategy- Focuses on the message, customer segment to be targeted

and the budget

2. Advertising media- Choosing the most appropriate advertising channel,

medium or media to reach out to the customers

3. Creative idea- This is the message or the visual which can be made to attract

the customer

4. Creative execution- The final advertisement created based on the creative idea.

TYPES OF ADVERTISING MEDIA

Advertising is a massive exercise for any company. There are many options where

ads can be showcases through an advertising medium. Companies often use all the

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media available to do a 360 degree branding. Some different types of advertising

media used by companies are mentioned below:

1. TV- Television is one of the most developed ways to advertise. Advertising on

TV is an effective way to reach to millions of people, as TVs have an extremely

high penetration worldwide. The ad slots are given by broadcasting companies.

2. Radio- Radio channels offer ad slots to companies who can communicate their

message to the customers.

3. Print- This type of media includes magazines, newspapers, brochures etc which

can be used to advertise about the products and services offered by a company.

This has been the most widely used advertising media till date.

4. Online- With the growth in internet penetration, companies often use online

advertising to reach out to customer using social media; browsing websites etc.

Online advertising also includes blogging, viral marketing etc

5. Outdoor- Using hoardings, standees, OOH (out of home) media are covered

under outdoor advertising. This enables companies to reach out to those who are

not a home but are outside their homes or office during transit.

6. Mobile- Use of services like SMS and social media groups has also made

mobile an effective tool for advertising


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ADVERTISING STRATEGIES

Advertisers develop and place advertisements for many reasons. Some of the most

basic types of advertising are based on functional goals, that is, on what the

advertiser is trying to accomplish. The functional goals of advertising include

primary and selective demand stimulation, direct and delayed response advertising

and corporate advertising.

1. Primary demand: One potential function of advertising is primary demand

stimulation, although this role is quite limited. In primary demand stimulation, an

advertiser is seeking to create a demand for a new product category in general. In

its pure form, the purpose of this type of advertising is to educate potential buyers

about the fundamental values of an entire product category rather than to

emphasize the values of a specific brand within the product category.

Primary demand stimulation is challenging and costly, and research evidence

suggests that it is likely to have a perceivable impact only for new products on the

market – such as when VCR was first developed and introduced to the market.

With a product that is totally new to the market, consumers need to be convinced

that the product category itself is available and valuable. For organizations that

have tried to stimulate primary demand in mature product categories, typically

trade associations, the results have been dismal.

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2. Selective demand: While some corporations have tried primary demand

stimulation, the true power of advertising is shown when it functions to stimulate

demand for a particular company’s brand. This is known as selective demand

stimulation. The purpose of selective demand stimulation advertising is to point out

a brand’s unique benefits compared to the competition. Likewise, now that the

VCR is past the stage of primary demand stimulations and is a mature product

category, households accept the value of this product and each brand selectively

appeals to different consumer needs.

3. Direct response: Another important type of advertising involves goals related to

the immediacy of consumer response. Direct response advertising asks the receiver

of the message to act immediately. An ad that suggests that you “call this toll-free

number” is an example of direct response advertisement.

While exceptions exist, direct response advertising is most often used for products

that consumers are familiar with, that do not require inspection at the point of

purchase, and that are relatively low-cost. The proliferation of toll-free numbers

and the widespread use of credit cards have been a boon to direct response

advertisers.

4. Delayed response: Delayed response advertising relies on imagery and message

themes that emphasize the benefits and satisfying characteristics of a brand. Rather

18
than trying to stimulate an immediate action from an audience, delayed response

advertising attempts to develop recognition and approval of a brand over time. In

general, delayed response advertising attempts to create brand awareness, reinforce

the benefits brand. When a consumer enters the purchase process, the information

from delayed response advertising comes into play. Most advertisements we see on

television and in magazines are of the delayed response type.

5. Corporate advertising: Corporate advertising is not designed to promote a

specific brand but rather functions to establish favorable attitude toward the

company as a whole. Prominent users of corporate advertising are Philips

Petroleum, Xerox and IBM. These firms have long-established corporate

campaigns aimed at generating favorable public opinion toward the corporation

and its products. This type of advertising can also have an effect on the

shareholders of a firm. When shareholders see good corporate advertising, it

instills confidence and ultimately, long-term commitment to the firm and its stock.

HISTORY OF INDIAN ADVERTISING INDUSTRY

The dawn of Indian Advertising marked its beginning with classified advertising.

Ads started appearing for the first time in print in Hickey’s Bengal Gazette which

was India’s first newspaper. Major advertisers during that time were retailers like

Spencer’s, Army & Navy and Whiteaway and Laidlaw. Retailers’ catalogues that

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were used as marketing promotions provided early example. Horlicks becomes the

first ‘malted milk’ to be patented in1883.

There has been a long tradition of advertising in India since the first newspapers

published in India in the 19th Century carried advertising. The first advertising

agency was established in 1905, B. Datram and Company, followed by The India-

Advertising Company in 1907, the Calcutta Advertising agency in 1909,

S.H.Bensen in 1928, J. Walter Thompson Associates through its Indian associate,

Hindustan Thompson Associates in 1929, Lintas (Lever international Advertising

Services) in 1939 and McCann Erikson in 1956. Advertising expenditure in the

1950s was estimated at $US 300,000. Under the more socialist political

environment of the 1960s and 1970s there was little incentive for companies to

advertise because advertising was not tax deductible. In the 1970s there was a 58%

growth in the number of registered agencies from 106 in 1969 to 168 in 1979, and

this included a growth in Indian agencies. The first advertising appeared on state

television in 1976.

With the opening of the economy in the 1980s there was a growth in the number of

alliances with multinational agencies and an expansion in advertising though

foreign network participation in agency ownership was limited. In 1987 Hindustan

Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd ranking agency,

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held only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and

Saatchi/Compton had minority interests in Compton as did Lintas. A study done in

1984 of the largest companies in India found that the ratio of advertising

expenditure to sales had risen from .64 in 1976, to .71 in 1980 to .74 in 1984.

Foreign controlled corporations had the dominant share of total advertising

expenditure, and 80% of these were in the consumer goods sectors. Advertising

was very concentrated with the top 50 advertisers accounting for 80% of the

advertising spending and the top 10 advertisers made up 40% of that figure, 32%

of the total. The largest advertiser throughout the period was Hindustan Lever

which was nearly 10% of the advertising budget of the corporate sector companies.

Pharmaceutical companies were also significant advertisers at this time.

B Dattaram and Co. claims to be the oldest existing Indian agency in Mumbai

which was started in 1902. Later, Indian ad agencies were slowly established and

they started entering foreign owned ad agencies. Ogilvy and Mater and Hindustan

Thompson Associate agencies were formed in the early 1920s. In 1939, Lever’s

advertising department launched Dalda – the first major example of a brand and a

marketing campaign specifically developed for India. In the 1950s, various

advertising associations were set up to safeguard the interests of various advertisers

in the industry.

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In 1967, the first commercial was aired on Vividh Bharati and later in 1978; the

first television commercial was seen. Various companies now started advertising

on television and sponsoring various shows including Humlog and Yeh Jo Hai

Zindagi. In 1986, Mudra Communications created India’s first folk-history TV

serial Buniyaad which was aired on Doordarshan; it became the first of the mega

soaps in the country. Later in 1991, First India-targeted satellite channel, Zee TV

started its broadcast. 1995 saw a great boom in media boom with the growth of

cable and satellite and increase of titles in the print medium. This decade also saw

the growth of public relations and events and other new promotions that various

companies and ad agencies introduced. Advertising specific websites were born,

one of them being agencyfaqs now known as afaqs.

Advertising, which was an American concept originally, has found its place in a

country like India, so much so that the number of commercials has doubled in the

media.

Advertising in India grew with the Indian press. In the initial period, to advertise

meant to inform. The early newspapers and magazines announced births, deaths,

arrivals of ships from England, sale of household furniture etc.

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In the beginning of the nineteenth century new products, discounts and special

services got their place in advertisements. Thus, gradually advertising started

gaining power. It increased with the growth of trade and commerce.

It became a major force in capitalist economies in the mid-19th century, based

primarily on newspapers and magazines. In the 20th century, advertising grew

rapidly with new technologies such as direct mail, radio, television, the internet

and mobile devices. Indian advertising has evolved over the course of the last 70

years, reflecting the change that the country’s economy as well as society has

undergone, from attacking social stereotypes to promoting national integration.

CURRENT SCENARIO

The Indian advertising industry has evolved exponentially from being a small scale

business to a full fledged industry over the last 10 years, hence creating a niche for

itself. Indian advertising industry is the second fastest growing advertising market

in Asia after China. It has emerged as one of the most imperative and indispensable

part of marketing industry and has eventually broadened its horizons in every

aspect be it creativity, capital employed or the number of personnel involved.

Advertising agencies in India also has seen an exponential growth with the rise of

well known top agencies in the country such as Mudra, Ogilvy and Mather,

McCann Ericsson, Rediffussion and Leo Burnett.

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Size of the Industry:

Print media: - 41.2%

TV ads: - 38.2%

Digital ads: - 11%

Outdoor, Radio and Cinema: - 10%

By 2020, the Indian digital advertisement market is expected to grow at an annual

rate of 33.5% to cross the Rs.25, 000 crore mark. The global advertisement growth

rate is around 4.5%, while the expansion rate in India this year was around 12%.

Now, let’s look at the current situation of the traditional advertising market.

Categorically, there are four major conventional advertisement mediums in the

global market. It is the same in India too. The options are as follows:

• Print Media—where newspaper and magazine adverts are given

• Radio and Television Media—or also known as the commercial spots or ads

channel

• Outdoor Media—where the advertisements are placed in general populated

areas on billboards, hoardings, pole kiosks, shopping malls, etc.

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• Transit Media—another out of home advert medium where pictorial ads are

fixed over taxis, buses, on bus seats, and on other vehicles

The demand in India for using these spaces for marketing purposes is enormous, as

they hold power to serve 1.3 billion people in the country. Advertisers and

companies prefer to use the traditional format of brand strategy holistically. The

mainstream advert market attracts all types of businesses and entities and hence

there is a future scope of growth in the industry. One of the main reasons why

advertisement spending has increased so much in the last few years is because of

this nation’s ‘developing’ tag and with the commercial emergence of the smaller

cities. Also, the rise in the e-commerce market has resulted in advertisement

programs to surge ahead as well. With starting and doing business becoming faster,

easier, quicker, and less hectic in the recent years, thanks to regulation changes,

more and more small entities and start-ups have also cropped up. Everything has

resulted in a boom in the advertisement industry, as promotion is necessary with

any new inception.

Now let us look at the timeline of the Indian advertising industry –

 Ads appear for the first time in print in Hickey's Bengal Gazette. India's first

newspaper (weekly).

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 Studios mark the beginning of advertising created in India (as opposed to

imported from England) Studios set up for bold type, ornate fonts, more

fancy, larger ads

 Newspaper studios train the first generation of visualisers & illustrators

 Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway &

Laidlaw

 Marketing promotions: Retailers' catalogues provided early example

 Ads appear in newspapers in the form of lists of the latest merchandise from

England

 Patent medicines: The first brand as we know them today were a category of

advertisers

 Horlicks becomes the first 'malted milk' to be patented on 5th June 1883

(No. 278967).

 1931- National Advertising Service Pr. Ltd. Bombay set up

 1936- Indian Broadcasting Company becomes All India Radio (AIR)

 1978 -First television commercial seen

 1990-Marks the beginning of new medium Internet

 1991- First India-targeted satellite channel, Zee TV starts broadcast

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CHAPTER 2

DESIGN OF THE STUDY

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INTRODUCTION TO THE BACKGROUND

There are various types of advertisements we see daily. Each type of advertisement

has a different type of advertising strategy. Advertising is very important for

popularizing the product as well as making it known to the people. Advertising is a

commercial business and is growing very fast. Today special ad directors, ad

creators, ad concept makers, ad actors, models, etc all are needed to make a

successful and good ad. All these professionals’ help you create an ad that easily

connects with the people and will market your products and services in the best

possible way.

Today all the companies and corporate in India have products or services to sell

and they are advertising them via T.V, newspapers, brochures, magazines, radio

etc. But online retailers take the promotion online in an effective way of

advertising that uses the power of Internet and World Wide Web in order to deliver

marketing messages and attract customers..

Now, looking at the untapped demographic segment of the market, that is the aged

and the aging. With the younger generation preoccupied, ads are turning focus on

senior citizens. For years, advertisers have focused on the world’s largest

population of the young (51.8% of Indians are below 35 years of age), wooing

them with youth-centric advertisements. Experts believe the elderly are a captive

28
audience for commercials since they watch more TV, but advertisers say senior

citizens have purchasing power and are willing to spend more.

For the most part, advertisers began to pay increased attention to the senior citizens

market not because of social movements or improved comprehension of aging, but

because older people began to constitute a larger portion of the population.

Advertisers also came to realize that older consumers possess considerable wealth

and discretionary income.

Still, stereotypes and myths about seniors persisted. Among the most typical of

these stereotypes is that virtually all older people are in poor health, senile,

crotchety, confined to retirement or nursing homes, inactive, isolated,

unproductive, uninterested in sex or romance, indifferent to material possessions,

have low incomes and are rigidly brand loyal.

Equally significant, marketing researchers found that older consumers have been

greatly underrepresented in the media and in advertising in the past few decades,

although they have become much more visible they once were.

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TITLE OF THE STUDY

“A STUDY ON THE EFFECTIVENESS OF THE ADVERTISING STRATEGIES

IMPLEMENTED BY AMAZON INDIA”

STATEMENT OF THE PROBLEM

Over the years there has been an increasing competition in the field of online

retailing due to the advancement in technology. Hence it has been important for the

companies to hold onto its market share. Due to increased competition in the

market, satisfying the customers, retaining them has become difficult. This can be

done by attracting the potential customers by way of advertising the company’s

products so as to meet the demands of the customers. Advertisers also came to

realize that older consumers possess considerable wealth and discretionary income.

This project focuses on the impact of Amazon India’s advertising and promotional

strategies and study whether it is able to reach the population of India effectively.

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OBJECTIVES OF THE STUDY

 To study the socio demographic characteristics of customers


 To study the current advertising strategies followed by Amazon India.
 To study customers perception towards various advertising strategies used by

Amazon India.
 To find out the impact and reach of advertising strategies of Amazon India.
 To access whether the advertising strategies of Amazon help them to attract new

customers.

METHODOLOGY

Research methodology is the way to find out a given problem on a specific matter

or a problem that is also referred as research problem. In methodology, researcher

uses different criteria for solving/searching the given research problem. Different

sources use different type of methods for solving the problem. If we think the word

“Methodology”, it is the way of searching or solving the research problem.

The study is a descriptive research. Descriptive research is a study designed to

depict the participants in an accurate way. More simply put, descriptive research is

all about describing people who take part in the study. There are three ways a

researcher can go about doing a descriptive research project, and they are:

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 Observational, defined as a method of viewing and recording the

participants

 Case studies, defined as an in-depth study of an individual or group of

individuals

 Survey, defined as a brief interview or discussion with an individual about a

specific topic

Primary data was obtained through surveys using structured questionnaires and

secondary data was collected from journals, books and databases.

SAMPLING PLAN

A sampling plan is a definite plan for obtaining sample from a given population. It

refers to the techniques or procedure the researcher would adopt in selecting items

for the sample. A sampling plan is a defined outline of which the measurements

will be taken at what times, on which material, on what manner and by whom.

Sample design may lay down the number of items to be included in the sample i.e.,

the size of the sample.

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In this study, convenience sampling is done. In statistics, a convenience sampling

is a probability sampling techniques where subjects are selected because of their

convenient accessibility and proximity to the researcher. The advantage of this type

of sampling is the availability and the quickness with which data can be obtained.

Target population
The target population will be the customers of Amazon with no restriction to age,

income or occupation. In this project a questionnaire of 18 questions were

surveyed on various demographic parameters and other parameters needed for the

study targeting a sample of 150 respondents.

LIMITATION OF THE STUDY

 The survey is conducted only on Amazon India customers of Bangalore city.


 The sample size is limited to 150.
 The study period was insufficient for a detailed study on the project
 No direct interaction with the company

REVIEW OF PREVIOUS LITERATURE

Elisabetta Corvi, Associate Professor of Economics and Business Management

University of Brescia in his research project “The effectiveness of advertising”

Advertising effectiveness can be defined as the extent to which advertising

33
generates a certain desired effect. While it is not possible to obtain a global

measure of the advertising effectiveness, we should seek to develop and apply

methods and measures for a partial verification of results. In literature and practice

the evaluation of advertising effectiveness has used two basic models:

 The dichotomous model


 The three-dimensional model

The dichotomous model is applied mainly in product and brand advertising,

tending to isolate and evaluate separately the following:

 Sales effect;
 Communication effect.

The sales effect refers to the assessment of the capability of advertising to affect

the sales volume and/or the market share, regardless of the possible influence of

other variables. The effect of communication refers to the ability to reach, with

appropriate messages, a more significant share of public.

Prateek Maheshwari in his research project “The influence of advertisements” the

literature review will briefly discuss the effects advertising has on society. One of

the primary focuses of advertisements is to influence the behaviour of customers.

However, this influence of behaviour does not only represent swaying consumers

to buy products. By using specific images and specific people, advertisements can

34
create needs and faults consumers never knew they had. There is several social and

ethical criticism of advertising, including how it can be untruthful and deceptive

towards consumers. While deception is based on how the consumer perceives the

ad, marketers knowingly and deliberately include specific factors in an ad in order

to get the consumer to discern it in a specific way.

35
OVERVIEW OF CHAPTER SCHEME

Chapter 1: Introduction

This chapter will include the introduction about the concept of marketing and the

various advertising strategies.

Chapter 2: Research Design

This chapter deals with the core concept of research design such as Title of the

study, statement of the problem, objectives, scope, research methodology,

limitation and chapter scheme

Chapter 3: Profile of the company

This chapter will include the profile of the company and its functions.

Chapter 4: Analysis and interpretation of data

This chapter will include step to step explanation, analysis of the statement of the

problem after research and interpretation of the problem.

36
Chapter 5: Summary of findings, recommendation and conclusion

It will include summary of findings after the study and recommendation suggested

to overcome the problem and the conclusion.

Annexure

Questionnaire

Bibliography

37
CHAPTER 3

PROFILE OF THE COMPANY

38
AMAZON.COM

Amazon is a Fortune 500 e-commerce company based in Seattle, Wash. It has the

distinction of being one of the first large companies to sell goods over the Internet.

In 1994, Jeff Bezos founded Amazon, which launched the following year. In 1999,

just five years after he started Amazon, Jeff Bezos was named Time

magazine's "Person of the Year." He received this honor largely because of the

company's success in popularizing online shopping.

The tech giant is the largest Internet retailer in the world as measured by revenue

and market capitalization and second largest after Alibaba Group in terms of total

sales. The amazon.com website started as an online bookstore and later diversified

to sell video downloads/streaming, MP3 downloads/streaming, and audio book

downloads/streaming, software, video games, electronics, apparel, furniture, food,

toys, and jewelry. The company also produces consumer electronics—Kindle e-

readers, Fire tablets, Fire TV, and Echo—and is the world's largest provider of

cloud infrastructure services. Amazon also sells certain low-end products under its

in-house brand Amazon Basics.

Amazon has separate retail websites for the United States, the United Kingdom and

Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil,

Japan, China, India, and Mexico. In 2016, Dutch, Polish, and Turkish language

39
versions of the German Amazon website were also launched. Amazon also offers

international shipping to certain other countries for some of its products.

In 2015, Amazon surpassed Walmart as the most valuable retailer in the United

States by market capitalization. Amazon is the fourth most valuable public

company in the world, the largest Internet Company by revenue in the world, and

the eighth largest employer in the United States. In 2017, Amazon acquired Whole

Foods Market for $13.4 billion, which vastly increased Amazon's presence as a

brick-and-mortar retailer. The acquisition was interpreted by some as a direct

attempt to challenge Wal-Mart’s traditional retail stores.

40
AMAZON INDIA

On June 5, 2013, the e-commerce giant Amazon quietly launched its Indian

website via Amazon Seller Services Pvt Ltd, an affiliate of Amazon.com, Inc. The

website is called Amazon India and the address is www.amazon.in. Initially,

Amazon India housed over 7 million books spread across 200 plus categories and

around 12,000 movies across all formats such as DVD, Blu-ray, Blu-ray 3D and

Video CD. Amazon India offered free home delivery for all orders for the initial

period of time. Currently, Amazon India charges INR 40 as delivery charges for

orders that are less than INR 499. Within 10 months of the launch of Amazon

India, the total selection stood at over 15 million products across 20 categories, as

reported by the Business Standard. Amazon India is the tenth marketplace launch

of Amazon.com. Amazon India also offered two new seller programs – “Selling on

Amazon” and “Fulfillment by Amazon”.

 Selling on Amazon :

Selling on Amazon provides businesses of all sizes a compelling sales channel with

a nationwide reach. The listing of sellers on Amazon India is free, and in

41
celebration of the launch of Amazon India the sellers were not charged any

subscription fee for the first year.

 Fulfillment by Amazon (FBA) :

Amazon has created one of the most advanced fulfillment networks in the world

and sellers in India can benefit from Amazon’s expertise in fulfillment, reliable

nationwide delivery and customer service. When using FBA, sellers across India

can send their products to Amazon’s fulfillment center located on the outskirts of

Mumbai. Once an order is placed, Amazon packs and ships the order to the

customer without the sellers having to do anything. Orders fulfilled by Amazon are

eligible for Free Delivery promotions and Cash on Delivery, and Amazon provides

customer service and returns management, enabling sellers to focus on their core

business.

Sellers save money by replacing their upfront capital expense with low variable

cost and pay only for the storage space they use and the orders Amazon fulfills.

Sellers always have the flexibility to choose the number of products they want to

have fulfilled by Amazon and scale according to their business requirements.

42
As part of the launch celebrations, sellers on Amazon India were entitled

promotional storage and fulfillment fees.

Building an empire in India

Since its launch, Amazon India has expanded immensely and built a very strong

base in India proving to be a pain in the “nose” for its competitors Flipkart and

Snapdeal through the launch of a number of services, some of which were clear

heroes among its competitor Flipkart and Snapdeal.

 Spread the cheer – ‘Light up a child’s Diwali’ :

In October 2013, Amazon India launched this initiative to enable the customers to

select and send Diwali gifts to underprivileged children across the country.

Pratham and Naandi Foundation, two NGOs working to improve the lives of

disadvantaged children created and put up on Amazon.in wish-lists, a selection of

products like educational toys & puzzles, books, comics, dictionaries,

encyclopedias that are needed by children under their care across the country.

Customers would browse the wish-list and select products they want to gift and

Amazon.in delivered them to the NGOs. Amazon.in also donated the fees it made

from these transactions to the two NGOs.

43
 Guaranteed ‘One Day Delivery’ service :

Within 6 months of its launch, Amazon India announced the availability of

guaranteed “One-Day Delivery” service for items fulfilled by Amazon in select pin

codes across several Indian cities including Bangalore, Mumbai, New Delhi,

Ahmedabad, Hyderabad and Pune. Orders placed with “One-Day Delivery” service

are guaranteed to be delivered the next business day excluding Sundays and public

holidays. Amazon.in will automatically refund shipping charges if orders are not

received by the promised day.

 Gift Cards :

Amazon India launched Gift Cards ranging from Rs. 10 to Rs. 10,000. Available in

over 9 Indian languages, customers can choose from an extensive selection in more

than 200 designs that aptly celebrate various special and memorable occasions in a

person’s life. The Amazon.in Gift Cards offer a gifting experience that is not only

easy, simple & convenient but also instantaneous and bridges distances. Customers

no longer need to fret over an appropriate choice of gift and especially wonder how

to gift to their loved ones in faraway places. With a wide range of Amazon.in Gift

Card options customized for various occasions coupled with an extensive selection

of products available on amazon.in

44
 The Seller App :

Amazon introduced its best-in-class app – the Amazon Seller App – for its seller

base in India. The Amazon Seller app makes it easy and convenient than ever

before for sellers to quickly update inventory, source and list new items on

Amazon.in and respond faster to customer queries.

Sellers are also able to view their sales summary for the same day, week to date

and month to date, all at the touch of a button and thus evolve their sales strategy

and grow profitably on the platform. Globally, sellers using the Amazon Seller App

have reported that they have a 30% faster response time to customer inquiries and

grow listed offers nearly 10 times faster.

 Sunday is just like another day – Sunday Delivery :

Having facilitated one day delivery, two day delivery, release day delivery and

midnight delivery, Amazon India launched Sunday Delivery across 100 cities in

India, promising residential addresses for all FBA (Fulfilled by Amazon) products

at no extra cost. Thus, Amazon India customers can count Sunday “just another

day” for receiving deliveries from Amazon.in.

Now, let us look at the various campaigns of Amazon India.

45
 Aur Dikhao, Aur Dikhao :

We can never forget #AurDikhao ad of Amazon India on the TV. Early April 2015,

this campaign was launched with two key objectives:

1. To educate the masses that Amazon has over 22 million products for the

consumers.

2. To engage the existing customers, score new buyers and maintain a buzz

around the campaign.

The very name captures the mindset of Indian consumer masses, who just love a

variety of options to choose from anything and everything.

 Kya Pehnu? :

Amazon India released the “Kya Pehnu” campaign which captures the dilemma

people face while “trying” to decide what to wear for a particular occasion. Almost

all of us face this dilemma be it dressing up for a job interview, wedding, party or a

fancy dinner date, and this ad injects the belief into the consumers that Amazon

India is the ultimate solution to the ultimate fashion dilemma.


46
 Apni Dukaan :

We all need familiarity, a strong trust factor and transparency of quality when it

comes to shopping. This ad campaign captures the shopper’s dilemma and

showcases specific features of the Amazon India shopping site like genuine

products, easy payment options, easy returns etc. Amazon India also roped in

famous comedian and actor Gaurav Gera for promoting this campaign.

47
CHAPTER 4

ANALYSIS AND INTERPRETATION

48
ANALYSIS AND INTERPRETATION

The following data are collected through primary source.

TABLE 4.1:

TABLE SHOWING THE GENDER WISE DISTRIBUTION RESPONSES

Gender Male Female Total

Number 50 100 150

Percentage 33.3% 66.7% 100%

ANALYSIS:

From the above table it can be analyzed that out of 150 respondents

 33.3% of respondents are male


 66.7% of respondents are female

49
Fig 4.1

Gender

33.33%

Male
Female

66.67%

INTERPRETATION:

From the above graph we can interpret that, out of 150 respondents, most

respondents are female with their percentage being more than the percentage of

female respondents.

50
TABLE 4.2

TABLE SHOWING THE AGE GROUP OF THE RESPONDENTS

Above
AGE Below 25 25-35 36-45 46-55
55

NUMBER 85 55 8 2 0

PERCENTAGE 56.7% 36.7% 5.3% 1.3% 0.0%

ANALYSIS:

From the above table, it is observed that 56.7% of the respondents belong to the

age group “Below 25”, 36.7% between 25-35, 5.3% between 36-45, 1.3% between

46-55 and none above the age of 55

51
Fig 4.2

Age

5.33% 1.33%
Below 25
25-35
36.67% 36-45
46-55
56.67% Above 55

INTERPRETATION:

From the above graph we can interpret those majorities of the respondents are

below the age of 25 and are mostly teenagers. A large number of respondents were

also between the age group of 25-35 of young adults. Some of them are middle

aged and very few of them are aged.

52
TABLE 4.3:

TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS

Occupation Student Employed Business Homemaker Retired

Number 88 50 9 2 1

Percentage 58.70% 33.30% 6% 1.33% 0.70%

ANALYSIS:

From the above table we can observe that 58.7% of the respondents are students.

33.3% of them are working professionals, 6% are into businesses, 1.33% is

homemakers and 0.70% is retired.

53
Fig 4.3

Occupation

1.33% 0.67%
6.00% Student
Employed
33.33% Business
Homemaker
Retired
58.67%

INTERPRETATION:

From the above chart it can be interpreted that most of them are students and also

some of them are employed r into business and are salary takers.

54
TABLE 4.4

TABLE SHOWING THE QUALIFICATION OF THE RESPONDENTS

Qualification High school Under graduate Graduate Post graduate

Number 9 38 37 63

Percentage 6% 25.30% 24.70% 42%

ANALYSIS:

The above table shows that 42% respondents have post graduate qualifications.

24% are graduate and 25% are still pursuing their under graduate studies.

55
Fig 4.4

Qualification

6.12% 25.85%
42.86%
High school
Under graduate
Graduate
Post graduate

25.17%

INTERPRETATION:

From the above chart, it can be interpreted that most of the respondents have post

graduate qualifications. Almost equal number of percentages fall under the

graduates and the under graduates. A very few percentage fall under the high

school.

56
TABLE 4.5

TABLE SHOWING THE INCOME LEVELS OF THE RESPONDENTS

Below 1 1-5 5-10 10 lakhs and No


INCOME
lakh lakhs lakhs above income

Number 10 31 22 5 82

Percentage 6.70% 20.70% 14.70% 3.30% 54.70%

ANALYSIS:

From the above table, 54.7% of the respondents have no income. 20.70% of them

have an income of 1-5 lakhs. 14.70% have an income of 5-10lakhs. 6.70% have an

income of below 1 lakh and 3.30% have an income of 10 lakhs and above.

57
Fig 4.5

INCOME

20.67%
6.67%
Below 1 lakh
1-5 lakhs
5-10 lakhs
54.67% 10 lakhs and above
No income
3.33%
14.67%

INTERPRETATION:

As most of the respondents fall under the age group of below 25, majority of them

are students therefore they have no income. The second largest category of income

level is between 1-5 lakhs. The next level is between 5-10 lakhs per annum. Also

7% of the respondents have no income as some of them are housewives and

retired. A very few section fall in the category of 10lakhs and above as some of

them are businessmen.

58
TABLE 4.6

HOW DID YOU FIRST COME TO KNOW ABOUT AMAZON?

Number Percentage

Television 26 17.33

Family/Friends 35 23.33

Online advertisement 63 42.00

Billboards/Hoardings 16 10.67

Newspaper 10 6.67

Total 150 100%

ANALYSIS:

From the above table, 42% of the respondents have come to know about Amazon

through online advertisements. 23% have come to know from friends and family.

24% from television advertisements, 6% from newspaper ads and 10% from

outdoor ads.

59
Fig 4.6

How did you first come to know about Amazon?


42.00
45.00
40.00
35.00
30.00
23.33
25.00
17.33
20.00 Percentage
15.00 10.67
6.67
10.00
5.00
0.00
n s t s r l
io nd en ng pe To
ta
is ir e se
m di pa
l ev y/
F rti o ar ws
Te il e /H Ne
m dv s
Fa ea a rd
lin llb
o
On Bi

INTERPRETATION:

From the above chart, it can be inferred that majority of the respondents have come

to know about Amazon through the online advertisements on the World Wide Web

and through their circle of family and friends. A big number of the promotion was

also known through the television advertisements. A minimal amount of the

promotion was appointed for the outdoor and traditional media of advertising such

as newspapers, therefore only few number of respondents were aware of the

outdoors and newspapers advertisement.

TABLE 4.7
60
WHEN DO YOU GENERALLY SEE AN AMAZON AD?

Number Percentage
Daily 48 32.00
Weekly 28 18.67
Weekends 8 5.33
Festive season 30 20.00
Season sale 31 20.67
Amazon events 5 3.33
Total 150 100%

ANALYSIS:

The above table shows that most of the respondents have noticed Amazon ads

mostly every day consisting of 32%, weekly which consists of 18% or during

festive season and season sale both consisting of 20%. The least amount of

percentage was for Amazon events which consist of only 3%. Also the weekend

promotions were also less popular among the respondents consisting of only 5%.

61
Fig 4.7

When do you generally see an Amazon ad?


35.00 32.00

30.00
25.00 20.00 20.67
18.67
20.00
Percentage
15.00
10.00 5.33
3.33
5.00
0.00

le
ly

on
s

ts
nd
kl

en
sa
i
Da

s
ee

ke

ea

ev
on
W

ee

on
as
ve
W

az
Se
sti

Am
Fe

INTERPRETATION:

It can be clearly seen from the above chart that Amazon actively promotes its

services on a daily basis mostly and are able to grab the attention of the masses. It

also emphasizes mostly on the festive seasons with extra offers and discounts and

also during the end of season sales which help them to attract more attention from

the people. A very few number during the weekends shows that it is not just on

weekends that they notice an Amazon ad, it is basically on a daily or weekly basis

that they notice an Amazon ad. A very few respondents have chosen Amazon

events as they happen very rarely.

62
TABLE 4.8

WHICH ACCORDING TO YOU IS THE MOST COMMON ADVERTISING

APPEAL USED BY AMAZON ADS?

Number Percentage
Humour appeal 20 13.33
Personal appeal 40 26.67
Social appeal 32 21.33
Scarcity appeal 20 13.33
Plain Appeal 38 25.33
Total 150 100%

ANALYSIS:

From the above table it can be inferred that majority of the respondents i.e., almost

26% have chosen personal appeal as the most common advertising appeal used by

Amazon. Around 20%-25% of them also have felt that Amazon uses plain appeal

and social appeal for most of their advertisements. 13% felt that Amazon focuses

more on the humor and scarcity appeal.

63
Fig 4.8

Which according to you is the most common advertising appeals used by Amazon ads?
30.00 26.67
25.33
25.00 21.33

20.00
13.33 13.33
15.00 Percentage
10.00

5.00

0.00

INTERPRETATION:

Majority of the respondents have voted for the personal appeal and plain appeal as

the one most used by Amazon ads. Personal appeal deals with personal emotions

such as safety, pride, self esteem, comfort, etc. Plain appeal deals with the

everyday aspects of life. Also a vast number of 21% have also voted for social

appeal which deals with status, rejection, acceptance, etc. A very few number have

voted for humor appeal which Amazon advertisement don’t usually indulge in and

also for scarcity appeal with the least percentage of 13%.

64
TABLE 4.9

HOW DO YOU FIND AMAZON ADS THAT YOU HAVE SEEN/HEARD TILL

NOW?

Number Percentage
Informative 45 30.00
Emotional 20 13.33
Humorous 14 9.33
Innovative 30 20.00
Entertaining 41 27.33
Total 150 100.00%

ANALYSIS:

The highest percentage being 41% and 45% were for Entertainment and

Informative respectively. Around 30% were for the innovativeness of the ads. 20%

of the respondents have voted for the emotional quotient of the Amazon ads. And

the least number of respondents comprising of 14% have found the humorous

aspects of the Amazon ads.

65
Fig 4.9

How do you find Amazon ads that you have seen/heard till now?
30.00
30.00 27.33

25.00
20.00
20.00
Percentage
15.00
13.33
9.33
10.00

5.00

0.00
Informative Emotional Humourous Innovative Entertaining

INTERPRETATION:

From the above chart we can see that a majority of the respondents have found that

Amazon ads are mostly informative and entertaining. A very close percentage also

feel that Amazon ads are very innovative and they are able to come up with

something new in every of their ads. A minimal amount of the number of

respondents also feel that few of the ads were emotional in nature which provoke

the emotions of the people and the least number of the percentage of respondents

have opted for the humorous quotient of the ads which is actually true because

Amazon hardly uses the humor appeal in their ads.

66
TABLE 4.10

WHAT IS THE PERCEPTION OF AMAZON IN YOUR MIND?

(POSITIONING)

Number Percentage
Value for money 23 15.33
Variety of products 57 38.00
Good product quality 25 16.67
Good service quality 24 16.00
Reliability 21 14.00
Total 150 100%

ANALYSIS:

From the above table we can see that more half percentage of the respondents

consisting of 38% have chosen Variety of products as their key factor for choosing

Amazon and their perception towards it. A good number of percentages were also

found for the good service quality and good product quality consisting of

approximately 16%. Between 13%-15% of the respondents also felt that Amazon is

best known for their value for money products and their reliability.

67
Fig 4.10

What is the perception of Amazon in your mind? (Positioning)


38.00
40.00
35.00
30.00
25.00
15.33 16.67 16.00
20.00 14.00
15.00 Percentage
10.00
5.00
0.00

INTERPRETATION:

From the above chart we can interpret that majority of the respondents feel that the

core positioning of Amazon lays in their variety of products which offer a vast

range of assortment of items. An equal amount of percentage was seen for good

product quality and good service quality. Also an equal number of respondents also

felt that Amazon offered good value for money with their reasonable pricing

structures and also the reliability of the brand and its services.

68
TABLE 4.11

HOW MANY AMAZON CAMPAIGNS ARE YOU AWARE OF?

Number Percentage
Aur dikhao aur dikhao 47 31.33
Apni dukaan 29 19.33
Kya pehnu? 21 14.00
Mom be a girl again 11 7.33
We Indians 20 13.33
Try toh kar 12 8.00
Yaha dekhlo 8 5.33
None 2 1.33
Total 150 100%

ANALYSIS:

From the above table it can be seen that most of the respondents consisting of 31%

are aware of the “Aur dikhao aur dikhao” campaign. A huge number of percentages

were seen between 13%-19% were seen for the campaigns “Apni dukaan” and “We

Indians”. Between 8%-14% were for the campaigns “Kya pehnu” and “Try toh

kar” and “Mom be a girl again”. 1% of the respondents were not aware of any of

the mentioned campaigns.

69
Fig 4.11

How many Amazon campaigns are you aware of?


35.00
31.33

30.00

25.00

19.33
20.00 Percentage

14.00 13.33
15.00

10.00 7.33 8.00


5.33
5.00
1.33

0.00
Aur dikhao aur dikhao Kya pehnu? We Indians Yaha dekhlo

INTERPRETATION:

From the above chart it can be interpreted that the campaign which got the highest

number of recognition was for the “Aur dikhao Aur dikhao” campaign followed by

the “Apni dukaan”campaign, “Mom be a girl again” campaign and “Try toh kar”

campaign.” Kya pehnu” and “Yaha dekhlo” were among the least popular

campaigns and few respondents were not aware of any of the Amazon campaigns.

70
TABLE 4.12

DO YOU THINK AMAZON ADS HAVE TRIGGERED YOU TO SHOP FROM

THEM?

Number Percentage

Yes 65 43.30%

No 62 41.30%

Maybe 23 15.30%

Total 150 100.00%

ANALYSIS:

The above table shows that 43% of the respondents agreed that Amazon has

triggered them to shop from them. Also a very close percentage of 41% also have

disagreed with the fact that Amazon ads have played no part in their purchasing

decision. 15% of the respondents neither agreed nor disagreed that Amazon ads can

influence their purchasing decisions.

71
Fig 4.12

Do you think Amazon ads have triggered you to shop from them?
43.30%
45.00% 41.30%
40.00%
35.00%
30.00%
Percentage
25.00%
20.00% 15.30%
15.00%
10.00%
5.00%
0.00%
Yes No Maybe

INTERPRETATION:

The above chart clearly shows that Amazon ads have no part in influencing a

consumers purchasing decision as equal percentages can be seen between “Yes”

and “No”. The brand itself has its own customers that generate sales and

popularity. Few of the respondents neither agreed nor disagreed with the influence

of Amazon ads to their purchase decision.

72
TABLE 4.13

DO YOU HAVE FAMILY MEMBERS ABOVE THE AGE OF 50?

Number Percentage

Yes 138 92%

No 12 8%

Total 150 100

ANALYSIS:

The above table shows that 92% of the respondents have family members who are

above the age of 50.

8% of the respondents do not have anyone in their family who is above the age of

50.

73
Fig 4.13

Do you have family members above the age of 50?

8.00%

Yes
No

92.00%

INTERPRETATION:

From the above chart it can be interpreted that most of the respondents have

someone or the other in their family who is above the age of 50 which shows that

most of the families consist of members of the older generation.

A very few number of respondents have no one in their family who is above the

age of 50.

74
TABLE 4.14:

IF "YES" ARE THEY AWARE OF AMAZON?

Number Percentage

Yes 86 60.10%

No 41 28.70%

Maybe 16 11.20%

Total 150 100.00%

ANALYSIS:

From the previous table we have found out that majority of the respondents have

family members who are above the age of 50. Now from this table it can be seen

that among those respondents 60% of them have said that their family members

who are 50 and above are aware of Amazon. 28% have said that they are not aware

of it and 11% are unsure about it.

75
Fig 4.14

If "Yes" are they aware of Amazon?

11.19%
Yes
28.67% No
Maybe

60.14%

INTERPRETATION:

From the above chart it can be inferred that 60% of the respondents who have

mentioned that they have family members who are above the age of 50 have also

mentioned that their family members are aware of Amazon. It shows that most of

the people who fall under the category of senior citizen are aware of Amazon

campaigns. A few numbers of 29% have said that they are not aware of Amazon.

Some were not sure about their knowledge of Amazon of their family members.

76
TABLE 4.15

DO PEOPLE RECOMMEND YOU TO SHOP FROM AMAZON?

Number Percentage

Yes 122 81.30%

No 28 18.75

Total 150 100

ANALYSIS:

We can see from the table above that 81% of the respondents have found that

people have .recommended them to shop Amazon.

And approximately 19% of the respondents have found that people do not

recommend them to buy from Amazon.

77
Fig 4.15

Do people recommend you to shop from Amazon?

18.67%

Yes
No

81.33%

INTERPRETATION:

We can interpret from the above chart that most of the people recommend others to

buy from Amazon. Few of the people who might have had a bad experience with

Amazon do not usually recommend other people to buy from them which happen

very rarely.

78
TABLE 4.16

DO YOU RECOMMEND PEOPLE TO SHOP FROM AMAZON?

Number Percentage

Yes 132 88%

No 18 12%

Total 150 100

ANALYSIS:

88% of the respondents have said that they do recommend people to buy from

Amazon.

Only 12% of the respondents have recorded that they do not recommend other

people to buy from Amazon.

Fig 4.16
79
Do you recommend people to shop from Amazon?

12.00%

Yes
No

88.00%

INTERPRETATION:

The above chart shows that most of the people recommend other people to try

Amazon but also there are few exceptions who feel that the services or products

are not up to the mark to be recommended to other people. The reasons can range

from bad service delivery, product quality or availability to miscommunication or

other possible failures.

80
CHAPTER 5

SUMMARY OF FINDINGS,

CONCLUSION AND SUGGESTIONS

81
FINDINGS

The goal of this project was to study the effectiveness of the advertising strategies

of Amazon in India. We will now discus the key findings according to each of the

objectives.

OBJECTIVE 1:

“TO STUDY THE SOCIO DEMOGRAPHIC CHARACTERISTICS OF CUSTOMERS”

Various demographic characteristics were analyzed like age, gender, occupation,

income level and education and it was found that they have a major impact when it

comes to deciding the target segment for publishing the advertisements. Some of

the key findings are:

 Majority of the respondents were female with 66.7%


 More than 80% were below the age of 35 that means most of the

respondents belong to teenagers and young adults group.


 Around 59% were students which mean they had no income.
 Around 35% of the respondents had income below 5 lakhs per annum.

OBJECTIVE 2:

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“TO STUDY THE CURRENT ADVERTISING STRATEGIES FOLLOWED BY

AMAZON INDIA”

The findings suggest that Amazon India has implemented various strategies to

grab the attention of the Indian market and has also used various mediums for

advertisement.

According to the primary data collected,

 It was found that Amazon heavily uses the online platform to promote

their advertising strategies, followed by Television ads.


 It was also found that most of the respondents were encouraged to try

Amazon through the good word of mouth of their friends and family.

According to the secondary data analysis,

 Online advertisements: Amazon has used internet as it has also become a

major and effective medium for advertising and it has been predicted that

the online advertising and marketing is soon going to replace the

advertising through traditional Medias such as television, radio,

newspaper and magazines. Amazon focuses on online advertising

because of the wider coverage and to reach its targeted audience.

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 Amazon is highly visible on television platform. Experts say the greater

the exposure of the advertisement, the longer is the period of its impact.

Although online advertisement has taken the lion’s share, television

media also has considerable impact on the mind of the consumers

resulting in the huge investments in television commercials as well.

OBJECTIVE 3:

“TO STUDY CUSTOMERS PERCEPTION TOWARDS VARIOUS

ADVERTISING STRATEGIES USED BY AMAZON INDIA”

The findings from this objective showed the perception of the respondents towards

the various advertisements made by Amazon.

 33% which is the highest number of respondents analyses an Amazon ad to

be seen on a daily basis.


 Equal numbers of respondents consisting of 25% were of the opinion that

most of the Amazon ads were seen during the festive and season sale.
 Around 40%-43% feel that Amazon uses personal appeal and plain appeal

for most of their ads.


 Around 35% feel that Amazon ads are mostly informative and quite

entertaining.
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Thus the findings show that the Amazon ads are successful in creating a positive

perception in the minds of the Indian consumer.

OBJECTIVE 4:

“TO FIND OUT THE REACH AND IMPACT OF ADVERTISING STRATEGIES OF

AMAZON INDIA”

The findings suggest that:

 More than 70% of the respondents were aware of the popular Amazon

campaigns

 Almost 92% of the respondents showed that they have family members who

are above the age of 50 and among them 60% of them were aware of

Amazon.
 Around 25% of the respondents have found the Amazon advertisements to

be quite innovative.

OBJECTIVE 5:

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“TO ACCESS WHETHER THE ADVERTISING STRATEGIES OF AMAZON HELP THEM

TO ATTRACT NEW CUSTOMERS”

The findings suggest that:

 88% of the respondents were of the opinion that they were very likely to

recommend Amazon to their friends and colleagues.

 Around 81% of them have mentioned that they have also received

recommendation from their circle of friends and family to shop from

Amazon.

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CONCLUSION

Amazon has pumped in billions of dollars into its Indian operations. It is by far the

leading online retailer giving a tough competition to its competitor Flipkart which

is a home grown online retailer. It is successful in creating a place in the hearts of

the Indian consumer with the striving competitors in the online industry but also it

should work more on the advertising strategies and help people recognize the

brand within all age groups.

In this study it can be analyzed that the respondents are interested to know about

the advertisements of Amazon they are attracted towards the ads by the various

channels and promotional campaign. In the course of my research majority of the

respondents felt the ads were attractive, useful and they conveyed the required

message.

It is also seen that majority of them comes to know about their advertisements of

Amazon almost on a daily basis which proves that the advertisements are quite

frequent which help them to create a brand remembrance in the minds of the

consumers which induce many people to make a purchase.

It was also seen that some of the respondents were unsure about whether it is just

for the advertisements that induce a purchase. Some have used Amazon on the

reference of their family and friends.

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Therefore, it can be concluded that Advertising always cannot be the main criteria

for the customers to make a purchase. However, its existence is a perquisite, as it

verified the presence of Amazon in the Indian market and also helped to make a

mark among the competitors.

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SUGGESTIONS

According to my research the following suggestions can be made:

 The advertisements should be equally displayed among all the channels to

grab a larger hold of the market share.


 The company should also emphasize on creating awareness among the older

generation of the population as it consists of a large part of the population.


 For more effective ads Amazon should try to indulge more and more

celebrities to gain attraction


 Amazon should also induce some humor in their ads as it has a long lasting

impression on the minds of the consumer.


 The company should also invest more on outdoor advertisements such as

hoardings in prime location and also in various local languages for ease of

reading for the local masses.


 It should make its advertising focused on other advertising appeals as well.

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BIBLIOGRAPHY

 Michael Levy and Barton A.Weitz, Retail Management, Tata McGraw Hill,

Fifth Edition, 2004


 Blech & Blech, Advertising and Promotion
 Chawla Deepak and Neena Sondhi, 2011, Research Methodology concepts

and cases, Vikas Publications.


 Rossiter J.R, Percy L, 1987, “Advertising and promotional management”,

McGraw- Hill, New York

WEBSITES

 www.wikipedia.com
 www.google.com
 www.amazon.in/about-us
 www.yourarticlelibrary.com

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ANNEXURE

“A STUDY ON THE EFFECTIVENESS OF THE ADVERTISING

STRATEGIES IMPLEMENTED BY AMAZON INDIA”

Hello, I am Thadoi Devi studying in Mount Carmel Institute of Management and

as a part of my PGDM curriculum I request you to fill this questionnaire. The

information provided will be used solely for academic purpose.

1. NAME:

………………………………………………………..

2. GENDER:

 MALE
 FEMALE

3. AGE:

 Below 25
 25-35
 36-45

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 46-55
 Above 55

4. Highest level of qualification:

 High school
 Under graduate
 Graduate
 Post graduate
 Other…….

5. Occupation:

 Student
 Employed
 Business
 Homemaker
 Retired
 Other

6. Income (per annum):

 Below 1lakh
 1-5 lakhs
 5-10 lakhs
 10 lakhs and above
 No income
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7. How did you first come to know about Amazon?

 Television
 Family/Friends
 Online advertisements
 Billboards/hoardings
 Newspaper
 Other….

8. When do you generally see an Amazon ad?

 Daily
 Weekly
 Weekends
 Festive season
 Season sale
 Amazon events
 Other…

9. which according to you is the most common advertising appeal used by Amazon

ads?

 Humor appeal
 Personal appeal
 Social appeal
 Scarcity appeal

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 Plain appeal
 Other

10. How do you find Amazon ads that you have heard/seen till now?

 Informative
 Innovative
 Entertaining
 Emotional
 Humorous

11. What is the perception of Amazon ads in your mind? (Positioning)

 Value for money


 Variety of products
 Good product quality
 Good service quality
 Reliability
 Other

12. How many Amazon campaigns are you aware of ?

 Aur dikhao Aur dikhao


 Apni Dukaan
 Kya pehnu?
 Mom be a girl again
 We Indians
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 Try toh kar
 Yaha dekhlo

13. Do you think Amazon ads have triggered you to shop from them?

 Yes
 No
 Maybe

14. Do you have family members who are above the age of 50?

 Yes
 No

15. If "yes", are they aware of Amazon?

 Yes
 No
 Maybe

16. Do people recommend you to shop from Amazon?

 Yes
 No

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17. Do you recommend people to shop from Amazon?

 Yes
 No

18. Comments (if any):

………………………………………………………………………………………

………………………………………………………………………………………

………………………

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