PLANNING TO BUILD BRANCHES AMAZON IN VIET NAM

CONTENTS
CONTENTS................................................................................................................................................................... 1
Amazon has a total of 562,382,292 products as on Jan 10th, 2018.........................................................................10
Top 10 Categories................................................................................................................................................. 10
3.Amazon Segmentation, Targeting and Positioning: Widest Range of Target Customer Segment.............................11
V. CONCLUSION........................................................................................................................................................ 62


I.

INTRODUCTION OF AMAZON

Vietnam has a population of 96,84 million people in November 2018. Vietnam is a land of
opportunity for foreign E-commerce companies because of its young population, high
Internet penetration rate (ranked 17th in the world) and climbing smartphone penetration
rates. The penetration of Internet is projected to increase steadily, with the percentage of
Internet users set to reach 65% in 2022.
Vietnam first connected to the Internet in November 1997. In the last 20 years, the country
has seen a tremendous increase in the number of Internet users. Vietnam had approximately
52 million Internet users in 2017, or a 54% Internet penetration rate, which is above the
global average of 46.5%.This puts Vietnam at the top of Asian countries and the numbers
are expected to continue rising at a fast pace, thanks to relatively flexible bandwidths
services and low cellular data cost. With the increasing accessibility to the Internet, more
and more people will have the opportunity to access and use E-commerce services.
This rise of Internet adoption can be partly attributed to the country’s high smartphone
penetration rate. In the past five years, the country has witnessed a surge in smartphone
ownership, thanks to smartphones’ popularity and the rise of Vietnam’s per capita
disposable income. According to 2017 statistics from Google, nearly 72% of the Vietnamese
population use a smartphone. As smartphones are key to conduct E-commerce activities
online, the rise of smartphone ownership will have a profound effect on the E-commerce.
1. THE MARKET TODAY IN VIET NAM

Currently, the e-commerce market is quite fragmented and there is no clear market leader.
The industry has been somewhat slow to start due to the lack of experience many
Vietnamese people have with the concept of online shopping. Many people don’t believe in
the quality of products until they are able to physically touch them and they usually prefer to
buy the item at a physical store after they have viewed it on a website. It is thus incumbent
upon e-commerce companies to battle against this skepticism and create trust between the
customers and the online shopping sites.
Foreign companies (such as Ebay.vn) are entering the market and more companies in the
country are unify with each other to remain competitive against the larger foreign
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competitors (ex. the daily deal sites Shopee, Lazada and Tiki...). However, it is clear that the
market is still wide open and relatively easy for new companies to make their entrance.
2. WHAT ARE THEY NEED BUYING?
There are clear category favorites for online shoppers, the most popular product categories
are:
-

Fashion and beauty products;
Technology and electronic products;
Kitchen and home appliances;
And many other brands and other products...

3. WHY AMAZON PENETRATES THE E-COMMERCE MARKET IN
VIETNAM?
Because amazon is not present in the e-commerce market in Vietnam. But the number of
Vietnamese internet users has been rapidly increasing for the past decade, naturally, such an
increase in internet users also brings with it an increase in e-commerce activities and digital
marketing. Vietnam might be the ideal place to invest into e-commerce and is one of the

most attractive e-Commerce markets in the region for investors. Because Vietnam ranks
high among the fastest-growing E-Commerce markets in the region.
So with a strong development in the most crowded and potential market in Southeast Asia.
Amazon company has made strategic investments in the Vietnam market, with the aim of
affirming the brand name, affirming the prestige of a leading company in the world market
in Vietnam. But above all, the amazon company expects it to be a complete fulfillment of
the online shopping needs of many people who have a habit of buying online. And bring to
the valuable products, the products have big brands from the world of e-commerce market
in Vietnam. That is also the reason that amazon companies penetrates in E-Commerce
market in Vietnam.
Expanding Amazon brand overseas is no easy task for sure. There are many e-commerce
websites in Vietnam. Getting a brand new one like Amazon will certainly be difficult, so
what should Amazon do?
-

Build trust by having an outstanding customer service
Focus on building trust with women
Build trust by encauraging customer reviews, even by offering discounts be flexible,
when it comes to payment methods
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-

Encourage card payments, even by offering lower prices
Make sure you offer prices lower than street prices

4. HISTORY OF AMAZON COMPANY
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AMAZON COMPANY HEADQUARTERS
Amazon company was founded in 1994 by Jeffrey P. Bezos. Jeff Bezos incorporated the
company (as Cadabra) in July 1994 and Amazons headquarters is in Seattle Washington
United States. The name Amazon was founded soon after because the Amazon River is the
largest in the world, and the letter “A” would help the company to show up at the top of
alphabetical lists and the website went online as Amazon.com in 1995.
The name Amazon was founded soon after because the Amazon River is the largest in the
world, and the letter “A” would help the company to show up at the top of alphabetical lists.
The one thing that made them famous was their books.
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MERGEFORMATINET

AMAZON OFFICIAL LOGO
The logo itself is the company name. Amazon, with an arrow below, pointing from A to Z,
representing that they could provide every product in the alphabet and also customer
satisfaction, as it forms a smile.
The Amazon.com website started as an online bookstore and later diversified to sell video
downloads/streaming, MP3downloads/streaming, audiobook downloads/streaming,
software, video games, electronics, apparel, furniture, food, baby products, health and
personal-care items, industrial & scientific supplies, kitchen items musical instruments,
automotive items and toys & games, and jewelry.
The company also owns a publishing arm, Amazon Publishing, a film and television studio,
Amazon Studios, produces consumer electronics lines including Kindle e-readers, Fire
tablets, Fire TV, and Echo devices, and is the world's largest provider of cloud infrastructure
services (IaaS and PaaS) through its AWS subsidiary. 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,
Mexico, Singapore, and Turkey. In 2016, Dutch, Polish, and Turkish language versions of
the German Amazon website were also launched. Amazon also offers international shipping
of some of its products to certain other countries.
Amazon serve consumers through our retail websites and physical stores and focus on
selection, price, and convenience. Amazon design our websites to enable hundreds of
millions of unique products to be sold by us and by third parties across dozens of product
categories. Customers access our offerings through our websites, mobile apps, Alexa, and
physically visiting our stores.

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Amazon also manufacture and sell electronic devices, including Kindle e-readers, Fire
tablets, Fire TVs, and Echo devices, and we develop and produce media content. Amazon
strive to offer our customers the lowest prices possible through low everyday product
pricing and shipping offers, and to improve our operating efficiencies so that we can
continue to lower prices for our customers. Amazon also provide easy-to-use functionality,
fast and reliable fulfillment, and timely customer service.
Amazon.com operates in three general segments: media, electronics, and other merchandise.
Here are its main competitors:
-

In the media segment, Amazon competes with auction site eBay (EBAY); media
game-changer Netflix (NFLX)...
Amazon has several competitors in the electronics and general merchandise segment,
many of which are brick and mortar retailers, including Best Buy (BBY), Family
Dollar, Staples, Target (TGT)...

In the third operating segment, Amazon competes with several of the world's largest
companies including CDW (CDW), PC Connection (CNXN)...

5. WHAT TYPES OF E-COMMERCE AMAZON THAT USING?
When it comes to the terms "E-Commerce". Most people think of amazon, a types of
modern e-commerce. Since the establishment of the website on the network. Amazon uses a
variety of business-to-business (B2B) and business-to-consumer (B2C) E-Commerce to
help the company grow to this day. And surely, Amazon does both and successful.
First, let's find out the definition of e-commerce?
“E-commerce activity means conducting part or the whole of the process of
commercial activity by electronic means connected to the Internet, mobile
telecommunications network or other networks.”
More specifically, e-commerce involves the ability to buy and sell online, while e-business
has more to do with doing business in some form online -- whether that's buying, selling,
marketing or otherwise. E-business, then, is a broader term that encompasses much more
than the term e-commerce, and Amazon is involved in both. Furthermore, Amazon doesn't
keep its e-business and e-commerce practices to itself; instead, it invites other businesses to
benefit from Amazon's B2B and B2C applications.
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6. BUSINESS-TO-BUSINESS (B2B)
The business-to-business side of Amazon is diverse. For one thing, Amazon provides
businesses with a means to sell directly on Amazon by setting up their own pages on which
they list items for a nominal fee per transaction or per subscription. Additionally, the
Amazon Payments service gives businesses a way to accept payments on their websites
from buyers who have Amazon accounts. Beyond that, the Amazon Supply service is a way
for businesses to purchase industrial supplies -- including office and shipping materials -directly from Amazon. In addition, Amazon offers order fulfillment, which lets businesses
delegate order packing and shipping to Amazon from any one of Amazon's warehouses
located nationwide.

7. BUSINESS-TO-CONSUMER (B2C)
The business-to-consumer side of Amazon actually overlaps somewhat with the B2B side.
For instance, when Amazon helps a seller create her own page on which she can list her
products, that's serving consumers, too, although not directly. However, Amazon also offers
its own products, both new and used, which consumers can purchase directly from Amazon.
Now that Amazon has entered the digital media realm with its exclusive Kindle e-reader and
selection of e-books, Amazon serves consumers in this way, too. Through the Amazon
Prime service, Amazon provides consumers with discounted instant video and e-books as
well as free shipping specials for a monthly fee.
8. COMPARISON B2B AND B2C OF AMAZON COMPANY
Amazon's B2B and B2C services do not include auction-style sales like its competitor,
eBay. Rather, all prices are fixed prices. Amazon also competes with Google, a company
that itself has entered the business-to-business realm by connecting businesses with relevant
suppliers. However, while Google might provide services -- such as email, for instance -that Amazon does not, Amazon still remains the e-commerce giant that not only sells its
own wares but also enables third-party vendors to sell their products, too. From Amazon,
businesses receive help with order fulfillment, transaction processing, cloud data storage
service, advertising and more.

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II.
RESEARCHING THE MARKETING
1. Online market survey in Vietnam
According to , Asia currently accounts for about 44% of
Internet users. Of which, Vietnam ranks seventh among the countries using the Internet the
most, with the amount of users in 2011 account for 31% of population, equivalent to about
26.8 million people. Till 2018, the amount of internet users in Vietnam reached 64 million
users out of a total of 92.02 million people, accounting for 67% of the population.

According to data from Stalista, in 2018, there are 49 million users who are shopping
online, reaching 76% of Internet users (64 million people).
The number of internet and online transactions users has increased sharply over the past few
years. This proves that Vietnam is growing and is aware of the importance of e-commerce in
present life and will grow stronger in the future.
Nowaday, e-commerce plays an extremely important and necessary role for everyone and in
order to meet the demand of domestic consumption, Vietnam has opened many useful
websites to help the exchange of trading faster and more efficiently such as Tiki, Shopee,
Sendo, Lazada, .... Below are some information that has been surveyed based on the
consumer experience of the above e-commerce sites:
Through statistics and received feedback from customers about the site evaluation, product
quality, quality of service, promotions ... by number of stars:

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Statistics the number of visitors recently in 2018

According to the collected basis information showed that consumers choose to buy the most
on the two major e-commerce site Shopee and Lazada. Although Tiki is rated all five stars
but because the product is not diversified as other sites so the number of visitors look to it
still stands behind Shopee and Lazada.
The results of the survey of the most purchased products at major e-commerce sites in
Vietnam

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Best selling
product

categories

TIKI

SHOPEE

SENDO

LAZADA

Books

Houseware

Houseware

Houseware

2. Online market survey of Amazon.com in the US
According to the research of the company analyzes the ForeSee user experience (USA).),
Amazon provides users with the best mobile shopping experience among the top online
retailers. Specifically, Amazon ranks number one, reaching 85 out of 100 exp. The
scoreboard is based on an online survey of 40,000 customers who shop at least once at the
largest online retailer between Nov. 4 and Dec. 2.2017. ForeSee experts interview users
about shopping experience, how expectations are met, scoring on the ideal shopping
experience.
Survey shows that Amazon accounts for the trust and loyalty of customers. Up to 85% of
people order at least once in the past year on Amazon, 59% shopping at least once a month.
Next to the virtual booth, 60% of consumers expect Amazon to have a real store.

Amazon has a total of 562,382,292 products as on Jan 10th, 2018.
Top 10 Categories

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The category Clothing, Shoes, and Jewelry have the highest number of products - 166.28M
products! Amazon’s apparel business has been booming the past year. It’s predicted that
Amazon will soon end up with net apparel sales of 62 billion in 2021.

3. Amazon Segmentation, Targeting and Positioning: Widest Range of Target
Customer Segment

Amazon segmentation, targeting and positioning involves a set of activities aimed at
determining specific groups of people as customers and developing products and services
attractive to this group.
Segmentation involves dividing population into groups according to certain characteristics,
whereas targeting implies choosing specific groups identified as a result of segmentation to
sell products to. Positioning refers to the selection of the marketing mix the most suitable
for the target customer segment.
Amazon mainly uses the following two types of positioning:
Multi-segment positioning. Amazon offers a wide range of products and services,
successfully exploiting more than one segment at the same time. Specifically, the online
retail giant sells more than 562 million products, appealing to the needs and wants of a wide
range of customer segments.[1]
Adaptive positioning. The online retail giant closely monitors changes in external
marketplace and addresses increasing customer expectations by periodically repositioning
of products and services according to changes in the segment.
Anticipatory positioning. Certain services within AWS such as Amazon Sage Maker,
Amazon Comprehend and Amazon Rekognition are in market segments that currently have

low turnover. However, the e-commerce giant has developed these services with the
anticipation that the demand for them will increase in the future.
The following table illustrates Amazon segmentation, targeting and positioning:

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4. Amazon.com's market strategy is operating in the US
There are three strategies to help Amazon.com improve its competitive advantage:
 Cost control
This strategy aims to offer a lower price than the price offered by competitors, but the
quality is comparable to that of the same product. This is the key to creating competitive
advantage of the company.Amazon.com is based on the convenience of shopping, speed,
easy-to-find information, product diversity ... of online sales channels. In addition, when
buying a bulk, customers will enjoy special discounts such as discount, shipping fee,
membership card Silver, Gold ...
 Making a difference with customers
In addition to existing customers, Amazon.com is also focused on analyzing, searching and
meeting potential customers in the future. So, Amazon.com is always looking for new
design ideas, quality, convenience, the criteria are different and better than the competition
at present.
One example of this strategy is 1 shopping click. This is one of the special features that
appeals to customers because it is very simple, through 1-click functionality the product is
delivered to any address that was previously delivered with the fastest time and the
information is absolutely confidential.
 Focusing strategy
In this strategy, Amazon.com states its goal is to reach out and meet the needs of specific

customer groups.This helps the apparatus to operate centrally on a number of customer
groups. Thus improving product quality

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5. Threats and Opportunities analysis

SWOT analysis of Suntory PepsiCo Vietnam
5.1. Strengths
- Strong background and deep pockets:
Amazon has evolved as a global E-commerce giant in the last 2 decades. Built on its early
successes with books, Amazon now has product categories that include electronics, toys,
games, home and kitchen, white goods, brown goods and much more.
Being the world’s leading online retailer, Amazon derives its strengths primarily from a
three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy has
resulted in the company reaping the gains from this course of action and has helped its
shareholders derive value from the company.

Picture 1: Number of Amazon Prime members in the US (2013-2018)
-

Customer centric:

Company’s robust CRM (Customer Relationship Management) has created customer centric
processes in order to carefully record data on customer’s buying behavior. This enables
them to offer individual items, related items or bundle them as an offer, based upon

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preferences demonstrated through purchases or items visited. Also, the company claims that
55% of their customers are repeat buyers resulting in low cost of acquisition of new buyers.
-

Cost leadership:

Amazon primarily derives its competitive advantage from leveraging IT (Information
Technology) and its use of E-Commerce as a scalable and an easy to ramp up platform that
ensures that the company is well ahead of its competitors.
In order to differentiate itself, company has created several strategic alliances with other
companies to offer superior customer service. The most important strategic tie ups are with
logistics providers who control costs. This contributes in a strong Value chain. Because of
playing on economies of scale, Amazon is able to lower the inventory replenishment time.
-

Efficient delivery network:

With its strategic partners & due to its Amazon fulfilment centers, Amazon has created a
deep & structured distribution network in order to make the product available even at
remote locations. It also has free of cost delivery charges in certain geographies.
-

GLOCAL strategy:

By using the strategy of “Go global & act local”, Amazon is able to fight with domestic Ecommerce companies through absorbing & by forming / partnering with supply chain
companies. The branding too is done as per local taste.
For example – In India, Amazon is currently using the “Aur Dikhao” campaign to
encourage users to browse more of their products.

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Picture 2: The strategy of “Go global & act local”
-

Acquisitions:

Acquiring companies like Zappos.com, Junglee.com, IMBD.com, woot.com etc. has proven
to be a successful and revenue generating step for the E commerce giant.
5.2. Weaknesses
- Shrinking margins:
Due to extensive delivery network & price wars Amazons margins are shrinking, which is
resulting in even losses.
And because Amazon offers free shipping to its customers, it is in the danger of losing its
margins and hence, might not be able to optimize on costs because of this strategy.
-

Tax Avoidance issue:

Amazon has attracted negative publicity on account of Tax Avoidance in countries like U.S
& UK. Most of its revenue is generated from these well established markets.
-

High Debt:

In many developing nations Amazon is still struggling to make the business profitable
thereby affecting the overall profitability of the group resulting into High debt.
One of the biggest weaknesses and something that has been oft commented upon by
analysts and industry experts is that Amazon operates in near zero margin business models

that have severely dented its profitability and even though the company has high volumes
and huge revenues, this has not translated into meaningful profits for the company.

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Picture 3: Amazon’s total debt (2015-2017)
-

Product flops:

Amazon launched the fire phone in the US which was a big flop. At the same time, Kindle
fire did not pick up as strongly as Kindle did. Thus, there were several product flops which
caused a dent in Amazon’s deep pockets.
5.3. Opportunities
- Backward Integration:
Amazon can come up with its In-house brands in different product categories. They can also
differentiate their offering. This will help them make profits in highly competitive Ecommerce market.
And another opportunity, which Amazon can capitalize on, relates to it rolling out more
products under its own brand instead of being a forwarding site for third party products.
In other words, it can increase the number of products under its own brand instead of merely
selling and stocking products made by its partners.
-

Global Expansion:

Expansion mainly in Asian & developing economies will help Amazon because those are
the markets with low competition in E-commerce industries & are not saturated like
developed economies.
-

Payment system:

By rolling out its online payment system, Amazon has the opportunity to scale up
considerably considering the fact that concerns over online shopping as far as security and
privacy are concerned are among the topmost issues on the minds of consumers.
Further, this would improve the company’s margins as it lets it reap the advantages of using
its own payment gateway.
-

Acquisitions:

By acquiring E-commerce companies it can decrease the competition level & also can use
the specialized capacity of the other company.

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5.4. Threats
- Low entry barriers of the industry:
One of the biggest threats to Amazon’s success is the increasing concern over online
shopping because of identity theft and hacking which leaves its consumer data exposed.
Therefore, Amazon has to move quickly to allay consumer concerns over its site and ensure
that online privacy and security are guaranteed.
-

Government regulations:

Not having clarity on the issues related to FDI (Foreign Direct Investment), in multi brand
retail, has been a big hurdle in the success of the E-commerce players in many developing

nations.
And because of its aggressive pricing strategies, the company has had to face lawsuits from
publishers and rivals in the retailing industry.
-

Local competition:

Amazon faces significant competition from local online retailers who are more agile and
nimble when compared to its behemoth type of strategy.
This means that the company cannot lose sight of its local market conditions in the pursuit
of its global strategy.
Similarly, there are many local players who take bites from the market share thereby making
it hard for a big player like Amazon to make profits
STRENGTHS
-

Strong background and deep pockets
Customer centric
Cost leadership
Efficient delivery network
GLOCAL strategy
Acquisitions

WEAKNESSES
-

OPPORTUNITIES
-

Backward Integration

Global Expansion
Payment system
Acquisitions

Shrinking margins
Tax Avoidance issue
High Debt
Product flops

THREATS
-

Low entry barriers of the industry
Government regulations
Local competition

Table: Amazon.com in Viet Nam’s Strengths, Weaknesses, Opportunities, Threat

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6. OBJECTIVE
6.1. OBJECTIVES OF AMAZON IN THE WORLD
Amazon.com Inc.’s mission and vision statements contribute to the company’s status as one
of the largest online retailers in the world. This success is attributed to stringent measures to
ensure that the vision and mission statements are fulfilled. In theory, the corporate vision
statement provides organizational direction toward a desired future condition of the
business. On the other hand, the corporate mission statement presents business goals and
guides strategic management in the company. Based on this business analysis case,
Amazon’s mission statement focuses on effective and high-quality service. For example, the

company emphasizes target customers’ convenience in accessing the best selection of
products in the e-commerce market. The scope of the selection of products available from
the company is a business strength identified in the SWOT analysis of Amazon.com Inc. In
relation, the company’s vision statement shows a target future of global dominance in the
online retail industry. The fulfillment of these official statements facilitates further
enhancement of the e-commerce business for long-term success in the global market.
Amazon.com’s corporate mission and vision statements are fundamental in developing
strategies to support the company’s competitive advantages against firms
like Google, eBay, Apple, Walmart, and Costco Wholesale. These competitors create the
strong force of competitive rivalry evaluated in the Porter’s Five Forces analysis of
Amazon.com Inc. The company’s corporate vision and mission statements also influence the
operations of its subsidiaries, such as Whole Foods Market. Considering the variety of its
products, which include online retail services, digital content distribution, cloud computing
services, and computer software and hardware, Amazon.com Inc. aligns its vision statement
with its mission statement to unify its diverse operations in various industries.
Amazon’s mission statement is “We strive to offer our customers the lowest possible
prices, the best available selection, and the utmost convenience.” This corporate mission
promises attractive e-commerce services to satisfy target customers’ needs. The company
focuses on the variables of price, selection, and convenience. In this regard, the following
characteristics are identifiable in Amazon’s corporate mission statement:
1.
2.
3.

Lowest prices
Best selection
Utmost convenience
The “lowest prices” component of the mission statement guides the pricing strategies
included in Amazon.com Inc.’s marketing mix or 4P. Low prices are a selling point that
makes the company’s e-commerce website and services attractive. A corresponding strategic

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objective is to reduce operational costs to enable the business to minimize prices. Amazon’s
corporate mission statement also points to having the best selection. For example, the wide
array of products on the company’s website is a factor that attracts customers. Moreover,
Amazon.com Inc.’s corporate mission emphasizes convenience, such as in accessing the
company’s products via the Internet. This characteristic is a response to consumers’ use of
“convenience” as a criterion when evaluating the quality and attractiveness of online retail
services.
Amazon’s corporate vision is “to be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy online.” This vision
statement underscores the business organization’s main aim of becoming the best ecommerce company in the world. In this regard, the following characteristics are
identifiable in Amazon’s corporate vision statement:
1.
2.
3.

Global reach
Customer-centric approach
Widest selection of products
The “global reach” component of Amazon.com Inc.’s vision statement is all about
international leadership in the e-commerce market. For example, in stating the “Earth” as
the market, the company shows that it aims to continue expanding globally. Thus, a
corresponding strategic objective is global expansion, especially through market penetration
and market development, which are included in Amazon.com Inc.’s generic strategy and
intensive growth strategies. The customer-centric approach in Amazon’s corporate vision
statement shows that the company considers customers as among the most important
stakeholders in the online retail business. This consideration agrees with Amazon.com Inc.’s
corporate social responsibility strategy for its stakeholders. Moreover, the corporate vision

indicates continuing efforts to broaden the product mix. These efforts contribute to business
growth and to making the company’s services more attractive to target consumers.
Amazon.com’s mission statement satisfies many of the conventional characteristics of ideal
mission statements. For example, the company includes target customers and market,
variety of products, and basic business aims (pricing and convenience) in the corporate
mission. However, the company does not include technology and the nature of the business
and its operations. In this regard, it is recommended that Amazon add details in its corporate
mission to give employees and investors a better idea of what the company is all about. This
recommendation should make the corporate mission statement more comprehensive,
especially in representing the company’s businesses, such as e-commerce, cloud-based
computing services, digital content delivery, software and hardware, and brick-and-mortar
retail (Amazon Books).
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Amazon.com’s vision statement possesses strong characteristics, such as the specification of
the company’s target market and an aspect of its marketing mix. However, this corporate
vision satisfies only some of the conventional characteristics of ideal vision statements. For
example, Amazon’s corporate vision is concise, clear, and abstract enough to ensure
suitability in various areas of the business. Still, this corporate vision is not stable enough to
ensure its suitability in the future of the business. For instance, Amazon’s business now
includes cloud services and brick-and-mortar bookstores. Yet, the company’s vision
statement still focuses on e-commerce. Thus, it is recommended that Amazon improve its
corporate vision statement by adding these details about such businesses to make the
statement comprehensive in reflecting the future state of the corporation.
6.2.

OBJECTIVES OF AMAZON INTO VIETNAM MAKET

This launch in Vietnam suggests that Southeast Asia is a focus for Amazon's international

expansion plans. Amazon also launched in Singapore, its first market in Southeast Asia, in
July 2017, where it is now operating in full with Prime and Prime Now. These first two
forays occurring so close to each other may mean that Amazon has grand plans for the
region, which would make sense as Southeast Asia's e-commerce sales are projected to
climb to $88 billion by 2025, up from an estimated $11 billion in 2017. The region is
particularly valuable to Amazon because the growth of its Prime subscriber base
is reportedly slowing, and international markets, especially ones with the potential of
Southeast Asia, could provide a significant boost.
In our report , Amazon describe the vision of their business in Vietnam market as to:
“Relentlessly focus on customer experience by offering our customers low prices,
convenience, and a wide selection of merchandise.”
The vision is still to Consider how these core marketing messages summarising the Amazon
online value proposition are communicated both on-site and through offline
communications.
"We work to earn repeat purchases by providing easy-to-use functionality, fast and reliable
fulfillment, timely customer service, feature-rich content, and a trusted transaction
environment.”
Free shipping offers are used to encourage increase in basket size since customers have to
spend over a certain amount to receive free shipping. The level at which free-shipping is set
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is critical to profitability and Amazon has changed it as competition has changed and for
promotional reasons.

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III. PLANNING TO BUILD BRANCHES IN VIET NAM
1. Marketing Strategy for Building Amazon’s New Branches in Vietnam

1.1. STP of Amazon New Branches
Before setting any branches, we are going to research and segment market into more
parts base on the results we researched and surveyed from the last market that Amazon used
to. And the followings are the ways we research and segment market in Vietnam, it will be
changed to more suitable for Vietnamese market and Vietnamese customers’ view.
This segmentation involves dividing population into groups according to certain
characteristics, whereas targeting implies choosing specific groups identified as a result of
segmentation to sell products to. Positioning refers to the selection of the marketing mix the
most suitable for the target customer segment.
Amazon mainly uses the following two types of positioning:
Multi-segment positioning. Amazon offers a wide range of products and services,
successfully exploiting more than one segment at the same time. Specifically, the online
retail giant sells more than 562 million products, appealing to the needs and wants of a wide
range of customer segments.

Adaptive positioning. The online retail giant closely monitors changes in external
marketplace and addresses increasing customer expectations by periodically repositioning
of products and services according to changes in the segment.

Anticipatory positioning. Certain services within AWS such as Amazon Sage
Maker, Amazon Comprehend and Amazon Rekognition are in market segments that
currently have low turnover. However, the e-commerce giant has developed these services
with the anticipation that the demand for them will increase in the future.
The following table illustrates Amazon segmentation, targeting and positioning
we do:
Type
of Segmentation
segmentation criteria
Region
Geographic

Density

Amazon target customer segment
Viet Nam
Urban and rural ( HCM city and Ha Noi city)
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Ages
Gender

15-18, 18-25, 25-30, 30-45, 45 and over
Males & Females and Others
Students (Secondary pupils, High school Pupil,
Undergraduate, ...)
Bachelor Stage young, single people living and not
living at home
Newly Married Couples young, no children
Full Nest I youngest child under six
Full Nest II youngest child six or over

Demographic

Life-cycle
stage

Full Nest III older married couples with dependent
children
Empty Nest I older married couples, no children

living with them
Empty Nest II older married couples, retired, no
children living at home
Solitary Survivor I in labor force
Solitary Survivor II retired

Occupation

Nationality
Behavioral

Degree
loyalty

Students,
employees,
professionals,
housewives, retired, unemployed.

officers,

Vietnamese Native Consumers, Foreigners living in
Vietnam, Foreigners traveling in Vietnam
of‘Hard core loyals’
‘Soft core loyals’
‘Switchers’

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Widest range of products
Convenience of online purchasing
Benefits
sought

Competitive prices
More opportunities for entrepreneurs for selling,
exporting, ...
More quicker delivering types than current
competitors

Personality

Easygoing, determined and ambitious

User status

non-users, potential users, first-time users, regular
users, or ex-users of a product

Social class

All social classes: lower class, working class, middle
class and upper class

Lifestyle

Resigned, Struggler, Mainstreamer, Aspirer, Achiever,
Explorer
Reformer, Consulting Prices

Psychographic

Selecting Target Market Segments
Because we all know Amazon is one of the most popular E-commerce website in the
world, we could not focus to one segment only. Amazon had not selling good to one
segment, so we decided to apply the Differentiated marketing types on targeting the
market.
For each segments, we going to design different separates to offer.
The first one, Gender segment
For each gender we will divide the products appropriately. Maybe some products
such as cosmetics, both male and female could not use the same ones, for an example. In the
Vietnam Amazon website of products which could be used for each genders will be
separate. It will be easier to consumers for searching products.
The table below shows our example:
Perfumes

Men

Female
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