MINI PROJECT REPORT- 2

“METAMORPHOSIS CHANGES IN AMAZON”

In partial fulfillment of the requirement for the award

Of the Degree of
Master of Business Administration (MBA)
Affiliated to Dr. A.P.J Abdul Kalam Technical University, Lucknow

Guided by
(Miss Sakshi Singh)
Assistant Professor
S.VN.I.E.T, Safedabad

Submitted By
(Shobhit Mishra)
MBA 2nd Semester

Session 2020-2021
DEPARTMENT OF MANAGEMENT
SETH VISHAMABHAR NATH INSTITUTE ENGINEERING TECHNOLOGY
LUCKNOW- BARABANKI HIGHWAY, SAFEDABAD-225003

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 DECLARATION

I hereby declare that the field work and studied various sample is entitled of
“METAMORPHOSIS CHANGES IN AMAZON”, which is now submitted to the
Seth Vishambhar Nath is a record of an original work done by me under the guidance
of Miss. Sakshi Singh.

This field study report is submitted in the partial fulfillment of Master of Business
Administration (MBA).

Shobhit Mishra

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 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its
existence to the constant support and guidance of a number of people. I am thankful to
all of them.

I would like to thank all the respondents for giving their valuable time and providing
useful insight into finer aspects of marketing.

I am grateful to my coordinator Miss. Sakshi Singh who have guided me to the

completion of the field study report.

I am also grateful to all those who have either directly or indirectly contributed towards
the completion of the project, for their support and encouragement.

Shobhit Mishra

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 PREFACE

I have put my sincere efforts to accomplish my objectives within the stipulated time.
Despite all limitations, obstructs, hurdles and hindrances, I have toiled and worked to
my optimum potential to achieve desired goals.

I tried my level best to conduct a survey to gain a thorough knowledge about the project
on topic “METAMORPHOSIS CHANGES IN AMAZON”.

I put the best of my efforts and have also tried to be justice with available. If anywhere
something is found unacceptable or unnecessary to the theme; you are welcomed with
your valuable suggestions.

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 INTRODUCTION
(AMAZON)

With increasing internet literacy, the importance of online marketing is growing in India. The
customers using online shopping has many benefits. The importance of online shopping is
increasing especially in the young generation because they get the advantage of shopping at
home only and also get benefits of discounts, time save etc. Forecasting future growth of online
shopping, marketers are making changes in their marketing strategies and trying to capture future
market.

The online shopping is gaining greater importance in metropolitan and big cities as well as in
foreign countries. Amazon used the personalization enabled through technology to reach out to a
difficult to reach market which Bezos originally called ‘the hard middle’.

The importance of Technology and an increased Artificial Intelligence

Learning:

According to founder and CEO, Jeff Bezos, technology is very important to supporting this focus
on the customer. In their 2010 Annual Report (Amazon, 2011) he said : “Look inside a current
textbook on software architecture, and you’ll find few patterns that we don’t apply at Amazon.
We use high-performance transactions systems, complex rendering and object caching, workflow
and queuing systems, business intelligence and data analytics, machine learning and pattern
recognition, neural networks and probabilistic decision making, and a wide variety of other
techniques.

In their 2017 report, they describe the increased use of machine learning and AI ‘behind the

scenes’ at Amazon : "Much of what we do with machine learning happens beneath the surface.

Machine learning drives our algorithms for demand forecasting, product search ranking, product

and deals recommendations, merchandising placements, fraud detection, translations, and much

more.”
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Amazon Customers:

Amazon defines what it refers to as three consumer sets customers, seller customers and
developer customers. There are over 76 million customer accounts, but just 1.3 million active
seller customers in it’s marketplaces and Amazon is seeking to increase this. Amazon is unusual
for a retailer in that it identifies “developer customers” who use its Amazon Web Services, which
provides access to technology infrastructure such as hosting that developers can use to develop
their own web services.

Members are also encouraged to join a loyalty programme, Amazon Prime, a fee-based
membership program in which members receive free or discounted express shipping, in the
United States, the United Kingdom, Germany and Japan.

Competition:

In its 2017 SEC filing Amazon describes the environment for our products and services as
‘intensely competitive’. It views its main current and potential competitors as :

1. Online, offline, and multichannel retailers, publishers, vendors, distributors, manufacturers,

and producers of the products we offer and sell to consumers and businesses publishers,

producers, and distributors of physical, digital, and interactive media of all types and all

distribution channels.

2. web search engines, comparison shopping websites, social networks, web portals, and other

online and app-based means of discovering or acquiring goods and services, either directly or in

collaboration with other retailers.

3. Companies that provide e-commerce services, including website development, advertising,

fulfillment, customer service, and payment processing.

4. Companies that provide fulfillment and logistics services for themselves or for third parties,

whether online or offline.

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Amazon marketing strategy experiments!

Amazon have created their own internal experimentation platform called a “Web lab” that they
use to evaluate improvements to our websites and products. In 2013, they ran 1,976 Web labs
worldwide, up from 1,092 in 2012, and 546 in 2011. Now many companies use AB testing, but
this shows the scale of testing at Amazon.

Amazon marketing strategy has developed internal tools to support this ‘Culture of Metrics’.
Marcus (2004) describes how the ‘Creator Metrics’ tool shows content creators how well their
product listings and product copy are working. For each content editor such as Marcus, it
retrieves all recently posted documents including articles, interviews, booklists and features. For
each one it then gives a conversion rate to sale plus the number of page views, adds (added to
basket) and repels (content requested, but the back button then used).

Amazon marketing strategy relies on the following four pillars:

1. Offering the widest range of products. The largest internet retailer in the world by
revenue offers hundreds of millions of products. The majority, 58% of products offered
in Amazon platform are from third-party sellers.
2. Using customer-friendly interface. The tech giant has an advanced interface that
integrates personalized recommendations and recent browsing history, among others.
3. Scaling easily from small to large. The e-commerce and cloud computing company has
experience and competence in scaling from small to large. This factor plays in
instrumental role exploring new business segments.
4. Exploiting affiliate products and resources. Up to date, the tech giant has taken a full
advantage of affiliate products and resources to contribute to the bottom line of the
business.

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 COMPANY PROFILE

Mission and Vision

When it first launched, Amazon’s had a clear and ambitious mission. To offer Earth’s biggest
selection and to be Earth’s most customer-centric company. Today, with business users of its
Amazon Web Service representing a new type of customer.

Amazon’s customers are worldwide now and have grown to include millions of Consumers,

Sellers, Content Creators, Developers, and Enterprises. Each of these groups has different

needs, and we always work to meet those needs, by innovating new solutions to make things

easier, faster, better, and more cost-effective.

"There are many ways to center a business. You can be competitor focused, you can be product

focused, you can be technology focused, you can be business model focused, and there are more.

But in my view, obsessive customer focus is by far the most important. Even when they don’t yet

know it, customers want something better, and your desire to delight customers will drive you to

invent on their behalf."

Business and Revenue Model

From 1997 in their latest annual report testing of business models that many businesses don't yet

have. Amazon explain: "We will continue to measure our programs and the effectiveness of our

investments analytically, to jettison those that do not provide acceptable returns, and to step up our

investment in those that work best. We will continue to learn from both our successes and our

failures".

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The latest example of innovation in their business model is the launch of Amazon Go, a new kind of

store with no checkout required.

Amazon Prime, an annual membership program that includes unlimited free shipping and then

involved diversification to a media service with access to unlimited instant streaming of

thousands of movies and TV episodes.

AWS is less well-known outside of tech people, but Amazon is still pursuing this cloud service

aggressively.

Amazon Marketing Strategy

In their 2008 SEC filing, Amazon describe the vision of their business as to: “Relentlessly focus
on customer experience by offering our customers low prices, convenience, and a wide selection
of merchandise.”

"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”

Our community of online customers also creates feature-rich content, including product reviews,
online recommendation lists, wish lists, buying guides, and wedding and baby registries." 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 is critical to
profitability and Amazon has changed it as competition has changed and for promotional
reasons.

Amazon communicates the fulfillment promise in several ways including presentation of latest
inventory availability information, delivery date estimates, and options for expedited delivery, as
well as delivery shipment notifications and update facilities.

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 OBJECTIVE OF THE STUDY

1. To study the online shopping behavior of customers.

2. To study the factors influencing online shoppers and consumers.

3. To study the customer’s level of satisfaction with regard to online

shopping.

4. To examine whether customers prefer online shopping to physical stores.

5. To understand tactics and methods that are used by online players to grab the customers

in India.

6. To know how consumers are evaluating online sites for their purchases.

7. To understand the work flow of Amazon which are leading in India.

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 RESEARCH METHODOLOGY

This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The goal for all data collection is

to capture quality evidence that then translates to rich data analysis and allows the building of a

convincing and credible answer to questions that have been posed.

Primary Data : Primary data was collected from various people and their opinion and
information for the specific purposes of study helped to run the analysis. The data was collected
through questionnaire to understand their experience and preference towards their loyal
company.

Secondary Data : Secondary data was collected from various sources such as different
business websites and published papers.

Research Problem : The problem formulation is the first step to a successful

Research process. Project undertaken the problem of analyzing the customer satisfaction
level of the Online shopping.

Sample Size : The sample size consists of 100 units out of which the most logical and non-
biased response are selected thus the sample size is taken out to be 100 units.

Area of Work : The field work is conducted in the Lucknow in various Places like
Showroom and retailers situated in different location all over the city.

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 LIMITATIONS

Though, best efforts have been made to make the study fair, transparent and error free. But there

might be some inevitable and inherent limitations. Though outright measure is undertaken to

make the report most accurate.

The limitation of the survey is narrated below:

1. The project is valid for Lucknow only.

2. It was not possible to cover each and every Retail shop due to time

constrains. There may be some biased response form the respondents and

some respondents did not provide the full data.

3. Unwillingness on the part of the customers to disclose the information as per

the questionnaire.

4. The decisiveness on the part of the customers regarding some question

hence difficulty faced in recording and analyzing the data.

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 DATA ANALYSIS AND INTERPRETATIONS

1. Do you use Amazon services?

Table 1 :

Response %
Yes 98
No 02

Yes No

2%

98%

Interpretation: Among 100 user in the different area of my project region 98 user were selling

servicess of Amazon Company, and only 2 were not having the Amazon services at the time of

my survey. This shows that Amazon is highly reputed in Entertainment sector, ad it has good

demand in the market.

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2. How do rate the Amazon Company?

Table 2 : Rating of Amazon Company :

Category %
Best in class 60
Good 18
Moderate 15
Not Good 7

Best in class Good Moderate Not Good

7%
15%

18% 60%

Interpretation : 60% of the user has rated Amazon best among the available Entertainment

source , while oly 7% said that it is not good.

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3. How you rate the services eficiency?

Table 3 : Services Efficiency :

Category % Response
Best in Class 30
Good 28
Immediate 12
Response
Slow Response 30

Bet in Class Good Immediate Response Slow Response

30% 30%

12%
28%

Interpretation: 30% of the user said that Amazon gives good services and its effectiveness is

good comparing to other competitors in the market market. 30 user during the survey said that

it responses slowly. Because Amazon is a Entertainment source.

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4. Why do you like Amazon services?

Table 4 : Services Literature :

Category % Response
Easy to 23
Understand
Highly quality 20
Both easy to 35
understand and
knowledgeable
Tough to 16
understand
Net adequate 6
knowledge

Net adequate
Tough to knowledge
understand
6% Easy to
16%
Understand
23%

Highly
Both easy to Knowledgeable
understand and 20%
knowledgeable
35%

Interpretation: 35% user told that services literature given inside the is easy to understand and

provide sufficient knowledge about the services. a common man cans also the use of services and

its combination by reading the literature.

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5. Are you satisfied with the services of the Amazon people?
Table 5 : Satisfaction level with the services of Amazon People :

Category % Response
Very much 72
Yes 20
Not Good 8

Very much Yes Not Good

8%

20%

72%

Interpretation: Most of the user i.e.72% are highly satisfied with the services of

representative of Amazon . Only 8% were not satisfied with the behavour of Amazon People.

Not satisfied users had special demand which can't be fulfilled. This shows that executives of

Amazon are highly trained and they are very effective in the field.

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6. What is the mode of demand by the user for Amazon?

Table 6 : Demand Type :

Demand Type %
Entertainment
based 65

Owner demand 18

Knowledge 17

Prescription Based Own Demand Suggestion Based

17%

18%

65%

Interpretation: During the survey user told that more than 65% demand is based on the

entertainment based

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07. What is the demand of services?

Table 7 : Demand of Amazon services :

Demand of %
Amazon
High use 29

Low use 16
Average use 55

29%

55%

16%

Interpretation : Amazon services is mainly used for long term effect.

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08.Among all selling which Amazon services is high?

Table 8 : Closest competitor of Amazon :

Competitor %
Amazon 36
Netflix 30
media 30
you tube 04

4%

30% 36%

30%

Interpretation: 36% of the user the told that Amazon is the closest competitor to the Amazon.

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09. Show your satisfaction level as being a Amazon services user.

Table 9 : Satisfaction of Amazon user :

Category Highly Satisfied Satisfied Neutral Dissatisfied

Price 15 37 40 8
Entertainment 35 40 17 18
Knowledge 15 30 35 -
movies 22 55 16 7

Series1

40
37

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8

Highly Satisfied Satisfied Neutral Dissatisfied

Interpretation: They are highly satisfied with the Entertainment and movies

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10. Which age group your effective customer?

Table 10 : Effective customer with respect to age group :

Age Group % Customer

0-20 33
21-40 35
41-60 17
61-Above 15

0-20 21-40 41-60 61-Above

17%
35%

15%

33%

Interpretation: Age between 21-35 are Effective customer.

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 FINDINGS

Satisfaction mainly depend on 4 factors i.e. price. margin. discount & service. Mostly

customer are satisfied. The most for the Amazon are within the age group of 6) &

above with a share of 35%. People of age group were also close with a share of 33%.

It shows the relation with the different age of the customers are good.

Amazon has taken more of an active role as producer and distributor for both film and

television series, and to that end, it offers a variety of "Amazon Original" content through its

online library. The original idea was a "Amazon box" that could download movies

overnight, and be ready to watch the next day Amazon developed and maintains an

extensive personalized video-recommendation system based on ratings and reviews by its

customers. Another contributing factor for the company's online DVD rental success was

that they could offer a much larger selection of movie titles to choose from than

Blockbuster's rental outlets.

Amazon 's video on demand streaming service, formerly branded as Watch Now,

allows subscribers to stream television series and films via the Amazon website on

personal computers, or the Amazon software on a variety of supported platforms,

including smartphones and tablets, digital media players, video game consoles and

smart TVs. 98% customers highly satisfied with service.

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 SUGGESTIONS

Focus on Negotiated Favourable Long Term Content Agreements

• Some acceptance of less desirable terms will likely be required. Because the content
providers could start their own offerings and have several firms willing to take Amazon
’s place, this will be a challenge. Acquisition or partnership with studios is an option if
access to attractive content grows more difficult.

• Large install base (e.g. Windows) can be an effective barrier to entry and spur retention

• This does increase Amazon risk as it becomes more reliant on partners to deliver the
Amazon experience. This can be a challenge and have brand image consequences if
experience degrades.

Geographic Expansion

• Use current strength to move ahead in new markets leveraging existing model. Building
physical distribution in other markets may be cost prohibitive – so focus should be on
online streaming.
• Local partners (i.e. joint ventures) may be a route to market entry if regulations or other
barriers prohibit expansion.

Expand Complementary Assets

• Develop further features / reasons to make leaving Amazon for other service providers
more challenging. Apple has accomplished this through proprietary file formats for its
iPod, iPhone and iPad.
• Amazon can accomplish this through existing mechanisms like rental histories, reviews,
recommendations – but may need something more compelling.

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 CONCLUSION

Lucknow market is still a virgin market f or these techno- survey Amazon. Customer s need to be
made aware of the productive usages of these products if Amazon want to target untapped
market segments of urban customers. Also Amazon needs to modify their advertising strategies
in order to promote these products and services.

This also a challenge f or Amazon ye get into a positive frame of mind about their own company
and products. Hence Amazon nee d to work upon the real factor through Dealer and Retailer f or
an uninterrupted continuous productivity in their Products. This will make these products
friendlier and customized.

Another important aspect which the company should consider is that of providing post sales
services, this in turn could really help in booming up the sale for the company. Hence Amazon
will be able to win a major market share in between the competitors.

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 BIBLIOGRAPHY

BOOKS:
Kotler, Philip (2006): Marketing Management" Pearson Prentice Hall of India Pvt. Ltd.,
New Delhi.

Saxena, Rajan (2007): Marketing Management Tata McGrow Hill Publishing Company
Ltd., New Delhi.

Malhotra Nares K.(2007): Marketing Research (an applied orientation) Pearson Prentice
Hall of India Pvt. Ltd., New Delhi.

Shankar Ravi (2008): Services Marketing, (the Indian Perspective) Excel Book,

New Delhi.

Nargundkar Rajendra (2008): Marketing Research Tata McGrow Hill Publishing

Company Ltd., New Delhi.

WEBSITES:
www.google.com

www.wikipedia.com

www.amazon.in

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