Amazon Fire HD 10 Tablet Marketing Plan

Chile

International Marketing MAR4156

Dr. Jeannette Mena Mercado

November 28th, 2022

Katie Kuratko

Matalynne Shuttleworth

Taylor Ortego

Austin Charboneau

Bere Fuentes Osuna

 1
Marketing Objectives

Our target market to start will be those aged 18-55 specifically because this area of the

population is either attending college, starting their career or becoming more knowledgeable

about today’s technology. Unfortunately, “The level of education in Chile is among the lowest in

OECD countries with 32.6% of adults aged 25 to 64 having attained below upper secondary

education and 25.2% having a tertiary education (OECD, 2020),” (Santander). We believe

introducing more technology within Chilean markets will motivate people to, not necessarily

enroll in school, but at least educate themselves on modern trends and daily news occurrences.

Our target market is lower to middle class, and they do not care too much for brand loyalty but

they do care about quality. We can confidently promise our customers our Amazon Fire HD 10

Tablet is durable, affordable and practical. Our target market inhabits the 3 major cities of

Santiago, Valparaiso and Concepcion. With our marketing plan, we aim to achieve total market

coverage in four stages. Stage one is to begin selling in Santiago as it’s the tech capital of the

country. We will confirm our target audience responds well to our marketing tactics, and our

tablets, here. A quarter of the Chilean population lives in Santiago so it will be a good indicator

of success for the rest of the country. Once we break through there, we will open up to the

secondary market in Stage Two. By doing so we will be able to enter Stage 3, entering the

Valparaiso and Concepcion’s markets, faster and easier. A majority of the Chilean population

lives within these cities, meaning almost the entire population will have access to our tablets by

this stage. The final stage is to reach the small portion of consumers we have not yet. After

successfully reaching our target audience in each of the major cities, we will expand our

advertising to include those outside our target age range, and gender to achieve total market

penetration. We expect to sell 1.4 million tablets in Santiago before proceeding with moving to
 2
the other cities. Once we sell 9.2 million tablets in Santiago, Valparaiso and Concepcion, that is

when we will proceed with distributing to the rural market, and the secondary market.

Product Adaptation or Modification

Chile has become one of the fastest-growing countries in South America. In recent years,

it has officially been deemed a high-income country with a major role in overall global trade.

Chile has also implemented many open market policies which gives us an amazing open-door

opportunity to transfer our Amazon Fire HD 10 Tablet. Chile is heavily exposed to marketing

tactics popular in the United States, however, this will not stop us from adapting our tablet to

Chile’s markets. As mentioned above we will be introducing it in the 3 major cities of Santiago,

Valparaiso and Concepcion. As we learned in our Country Analysis, Chileans are known for

working 12-hour days for 6 days each week and this is our main push point in marketing our

tablet as it will make work 20x easier! We also learned that personal relationships are essential to

doing business in Chile, which is why we have sparked a relationship with the management and

employees at Technics Electronic Store in Santiago, the capital of Chile. What is worth noting is

there are no major adaptations to be done to the physical tablet. According to the World Travel

Guide, “The official language is Spanish. Mapudungun is spoken by the Mapuche, while Rapa

Nui is spoken by Easter Islanders. A small minority also speak Aymara,” we will be sure to

boost our advertising in all of Chile’s languages to appeal to the entire population. We will

utilize Chile’s high-income status and open market policies to introduce our Amazon Fire HD

Tablet into their markets.

Promotion Mix

For our product launch for the Amazon Fire HD 10 Tablet in the Chilean market, it is

important to first understand the target demographic. Originally, we had decided Chile would be
 3
an excellent market due to the age demographics. According to the National Institute of

Statistics, the highest percentage of the population is approximately 47.9%, consisting of ages

ranging from 25 to 69 (Santander). The median age is about 36, which aligns with the average

purchaser of the Amazon Fire HD 10 Tablet. Once this was determined, the next plan of action

was to decide what methods of promotion would be the most effective to reach the people of

Chile. Upon deliberation, it was concluded that we will be focusing our efforts on advertising

with traditional media and transportation venues. Television ad revenue in Chile “amounted to

79 million U.S dollars in 2016” and has only been predicted to rise in years to follow

(Santander). The most popular channels include Televisión Nacional de Chile (TVN – Channel

7), Pontificia Universidad Católica de Chile - PUC (Channel 13), and Mega TV (Channel 9).

Therefore, we plan to include about 4 ad spots per day per channel. Our second method of

promotion will include billboards, buses, and the metro. Due to the previous success of others

entering this market, we have confirmed these would be the one of the best options in reaching

larger audiences. The people of Chile tend to live very active lifestyles and are always on the

move. Whether this be going to work or school, it makes sense for us to advertise in places

where there are a lot of commuters. Therefore, we will be implementing these in the most

populous cities of Santiago, Valparaiso, and Concepcion. As a team, we have decided that any

form of door to door sales promotions would not be the most effective use of our time.

Therefore, we plan on meeting with the higher ups of these television networks and ad

distributors to pitch this directly to them. This way, we can meet with those who have a higher

chance of connecting us to our target demographic and cut out unnecessary sales tactics.
 4
Channels of Distribution

When deciding our distribution channels, we chose to wholesale the tablets because we

believe the only middleman we need is our shipping provider. This may seem a bit braggart,

especially in our current situation of transferring our product to the Chilean market, but our

company has done extensive research on Chile's markets and are confident in our projected sales

of the Amazon Fire HD tablet. We plan to sell the Amazon Fire HD 10 tablet to a tech store

located in Santiago, Technics Electronic Store. It is located in the heart of Santiago, next to

numerous luxury restaurants, hotels, clothing stores and tourist attractions. Technics sells new

and gently used Samsung and Apple products such as Cellphones, Tablets, Computers, Monitors

and headphones. After discussing shipment prices and quantities per order, we agreed to

wholesale the tablets to them for 20% of MSRP at 50 tablets per order and 30% under MSRP for

any order over 100. These tablets would be shipped straight from our warehouse to the Technics

store, where they would mark up the tablets accordingly to ensure they are making profit. We

will be using UPS to ship our tablets because of their low rates and delivery times. According to

Trade.gov, UPS Worldwide Express provides 1-3 days international delivery and second

business day delivery to Latin America. The online process allows the customers to create a

shipment while the system generates the necessary customs documents. Chile has miniscule

regulations for shipments of technology imports, all that is required is a form describing each

item with its respective weight and value. All shipments are subject to inspection under its

harmonized system, to ensure no illegal substances or items enter the country.

Price Determination

One roadblock that everyone is running into these days is increased inflation, which

produces high-interest rates that discourage the public from engaging in excess spending. The
 5
fluctuations in inflation play a vital role in our marketing plan as it determines the exact time in

which we will introduce it into the market. According to Trading Economics, “The annual

inflation rate in Chile eased to 12.8 percent in October of 2022 from 13.7 percent in the previous

month,” the forecasted rate for November 2022 is 12.7. With the slight, yet steady decrease in

inflation, we are preparing to implement our Amazon Fire HD tablet into Chilean markets in

January of 2023. Since our team decided to distribute our product through wholesale, our main

focus when it comes to price determination is transportation cost, handling expenses, insurance

costs, customs duties and import taxes. In the United States, we are selling our product for $150

per tablet so we will need to add to that price in order to make a profit in Chile. Like mentioned

above, we will be using UPS to deliver our product to Chile, so transportation cost and handling

expenses will be included in the delivery expenses. According to UPS.com, to ship a package

containing 50 tablets from Tampa, FL to Santiago, Chile by air, it would cost around $2,000

(UPS.com). Since the value of the items being shipped is over 30 USD, the important tax on a

shipment will be 19% (easyship.com). This important tax is already included in the UPS

expense. If we add those $2,000 and divide it evenly across those 50 tablets, it raises the price to

$190 USD per tablet. This would be an appropriate price for the market because it is a lot

cheaper than our competitors in Chile. According to GlobalStatCounter.com, our competitors in

the U.S. are not the same competitors we have in Chile. Therefore, selling our product at a raised

price of $190 USD per tablet, which is $175,223 Chilean Pesos, would be cheaper than our

competitors and would still provide our company with a high profit.
 6
References

“Calculate Import Duties & Taxes to Chile.” Easyship, 2022, https://www.easyship.com/duties-

and-taxes-calculator/chile?value=150¤cy=USD&category=tablets.

“Chile - Distribution & Sales Channels.” International Trade Administration | Trade.gov,

https://www.trade.gov/country-commercial-guides/chile-distribution-sales-channels.

“Chile History, Language and Culture.” World Travel Guide, 26 May 2019,

https://www.worldtravelguide.net/guides/south-america/chile/history-language-culture/.

“Chile Inflation Rate.” Chile Inflation Rate - October 2022 Data - 1951-2021 Historical -

November Forecast, https://tradingeconomics.com/chile/inflation-cpi#:~:text=Inflation

%20Rate%20in%20china%20 averaged,statistics%2C%20economic%20 calendar

%20and%20 news.

Knorr, Stephen F. “Kindle Fire HD 8 & 10 User Manual: Learning to Optimize the Kindle Fire

HD & 10 Tablets like a pro, A Guide for Beginners and Seniors.” Amazon, The Author,

2018, https://www.amazon.com/Fire-HD-10/dp/B07KD58DQS. (Title page image)

“Mobile Vendor Market Share Chile.” StatCounter Global Stats, 2022,

https://gs.statcounter.com/vendor-market-share/mobile/chile.

Santander Trade Markets . “Chile: Reaching the Consumer.” Reaching the Chilean Consumer -

Santandertrade.com,

https://santandertrade.com/en/portal/analyse-markets/chile/reaching-the-consumers.
 7
“Shipping.” UPS, 2022, https://www.ups.com/ship/guided/pickup-service?

tx=87680279092302020&loc=en_CL&src=CalculateTimeAndCost.