Amozon Challanges

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Submitted By shashankpushp
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Kindle and Indian Market
Market Segment Scope and Target Customers There is a huge scope for expansion of the tablet market in India. There are 81 million households that fall under the rich and the consuming classes, this may be our target market. The eInk reader of Amazon will compete in this marketas well as the entire market above the poverty line as it is priced lower than the tablet (INR 5999). As per statistics 1 per 17 people possesses a PC/Laptop/Tablet in India, around 95% untapped market for the e-reader exists. The tablet sales in INDIA in 2013 were $ 4.14 million, however there has been a 32.8% drop in tablet market shipment for Q1 2014 in INDIA. This drop can be attributed to two reasons: 1. Most tablet users have them as their secondary or tertiary devices and thus expect something different that laptops/smartphones do not offer. 2. Bureau of Indian standards (BIS) has implemented strong regulations of quality and safety, which many new entrants are not able to match. Positioning Factors and Marketing Mix Under such scenario, Amazon will have a strong positionas its KINDLE devices are highly innovation driven and substantially better in quality and durable as compared to other products. These 2 factors should be considered the “Key positioning factors” for kindle. The Current Tablet Market in India is highly dominated by Samsung (56.52%) and Apple (22.53%) which constitute (¾)thof the total market. Theprice and value sensitive mindset of Indian consumers has been effectively handled by these companies as seen from examples such as: EMI driven strategy of Samsung and Rent Based Trial strategy of Apple. These strategies create a perception of superior products at affordable prices among the masses. Another important dimension is the distribution channel. Indian market gets 98% of its revenue through Retails and only 2% through e-tails. In such a…...

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