Milestone 3 INT640
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Marketing
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Feb 20, 2024
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A. Product
i. There are some product-related problems and challeneges that Amazon's foreign consumers will face. For example, due to the amount of third-party sellers that partner with Amazon, sometimes products are not as advertised. Customers have complained about the poor quality of some of the products they have purchased through Amazon and, more often than not, these products are sold by Amazon's third-party sellers which Amazon does not have total control over. Another challenge for Amazon is the lack of internet access in some countires. Although it may not be a challenge for Amazon in Sweden, it is a challenge for Amazon in other countries because Amazon is an online retail store known for their artifical intelligence technology products that requires the internet to function. For example, an Amazon product that requires the internet to function is the well-loved and well-known "Alexa" that is believed to have brought Amazon most of their success. ii. Amazon's product design's features and benefits will result in a successful product launch in Sweden because Amazon sells a wide range of goods that will allow any consumer to find the item they need for the price they like. For example, Amazon sells wall art for the interior designers, pet toys and pet sweaters for the animal lovers, and books of every genre for the bookworms. Furthermore, being an ecommerce platform, Amazon should especially appeal to those in Sweden since they are extremly technologically advanced and about 94.33 percent of Sweden has easy access to the internet (Share of households with internet access in Sweden from 2009 to 2022, 2023). iii. Product responsiveness is imperative for the ultimate success of any company wishing to expand internationally. With this being said, I recommend Amazon utilize an extreme level of product responsiveness. Through response marketing, Amazon will build strong relationships with consumers while gathering a surplus of information on their needs, wants, and desires relating to their company the
products they sell. This will signigicantly increase the liklihood that consumers will make a purchase. Amazon can reflect on the reviews of their current foreign consumers as well as place tents and tables around Sweden's popular malls and stores where consumers can provide their personal suggestions and opinions in exchange for a discount. B. Price: In this section, you will explain and justify your pricing policy. In order to justify policy, you may wish to consider global and country competition, government policies, and distribution channels. When discussing your pricing policy decisions, you may wish to consider potential inflation, exchange rate risk, and price escalation risk.
i. Explain your pricing strategy.
ii. Justify why your product pricing strategy is appropriate for the intended foreign target market.
iii. Determine if there is a need to coordinate cross-border prices for your product, justifying your answer.
iv. Discuss the risks inherent in your pricing policy decisions.
References
Share of households with internet access in Sweden from 2009 to 2022. (2023, September 1). Statista. https://www.statista.com/statistics/377767/household-internet-access-in-sweden/#:~:text=In
%202022%2C%20the%20share%20of%20households%20with%20internet,Sweden%20remained
%20nearly%20unchanged%20at%20around%2094.33%20percent
.
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