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Business and Finance

Business Strategy of Amazon in Thailand

Target customer:

  1. Multi Segment Positioning:

Multi segment means more than one segment. Thus, it is marketing strategy which is used by marketers to target more than one segment of customer. Amazon is a business who is selling almost everything to customers and everyone is delighted through it. As, there are lot of product categories offered by Amazon, so it can target to different segment of consumers depend upon their need and wants.

  1. Customer segmentation:

Amazon can target consumer in Thailand and South Korea on the basis of demographic, geographic, psychographic and other behavior segmentation. Therefore, it is important in geographic segmentation to bother where consumer lives. Amazon has to consider the region of their targeted consumer in South Korea and Thailand. Demographic illustrates the basic profiles of the targeted consumer. It includes age, family, occupation, salary, family size, gender etc. Amazon has to consider demographic factor of Thailand and South Korea so that business can be offered in efficient way. Behavioral segmentation illustrates the behavior of people how they are consuming things and in what way? Thus, the last one is psychographic segmentation which focuses on the values and belief of people living in South Korea and Thailand. These segmentation factors must be considered by Amazon to start business in South Korea and Thailand. Since, every country has its beliefs and ethics. Also, Amazon is a huge business and targeting wide region. Sixty eight million people are living in Thailand now. Thus, it is a huge set of population. Therefore, it is efficient to use multi segment positioning in Thailand by Amazon. While in South Korea, country is highly based on homogeneous factor. Therefore, the culture is quite different as their languages are purely Korean; also, the birthrate is extremely low. Amazon should take these factor into consider while doing multiple segmentation.

Marketing recommendation:

Amazon must have to follow these seven marketing recommendation in order to start business in south Korea and Thailand:

  • Clarifies the global factor and make it clear that which factors are managed locally:

Global market does not indicate that you will neglect local market, marketing plan and several initiatives. So, decide first that which factors of Amazon are set globally and locally in order to start business in South Korea and Thailand.

  • Adopt collaborative approach and understand the needs of local market:

If needs and wants are not specifically clear, market cannot be target effectively. Thus, when Amazon start business globally such as in Thailand and South Korean, adopt the collaborative approach and start doing research. Trust people in order to gain confidence.

  • Set early the development of global marketing plan:

Always research the market while going globally. So, Amazon has to set plan accurately in order to target the market of South Korean and Thailand.

  • Campaign management:

Appoint campaign manager so that he can communicate, coordinate and collaborate with you. Also, he has better understanding of time zone as well.

  • Tracking and results of campaign:

It can only be done through campaign manager. Amazon can become aware by different responses through campaign manager. It is recommended to track the result so that better decisions can be taken.

  • Coordinate the results:

After the launching of campaigns, start compares the results that which things are done and which things are not. Focus on weakness and opportunities and end up with smart results.

  • Communication tool:

Communication is only the tool that can gives Amazon a better and efficient results within right times. So make sure that communication can be done in proper way by different campaigns and brand manager.

Legal Obligations regarding Marketing in South Korea:

South Korean is making its transparency policies in order to make clear that laws in the Korean country are not discriminatory. The laws and regulation are very unique as the laws are flowed through national assembly, after wards it declared.

The foreign investment criterion is very sensitive in Koreans. Restricted industries include fuel nuclear processing system, telecommunication and radio, meat and food, transportation and other various publication papers. Foreign investment promotion act (FIPA) takes the report of this foreign investment.

South Korean cannot do business with North Korea and Iran. Hence, it is obligated by national security act.

The flow of foreign exchange transaction includes measurement of regulation for the purpose of foreign exchange. There must be complete reporting requirement which must be accounted by FX banks. Also, MOSF must be indulged with registration requirement.

Tax can be minimized in these foreign countries as they are investing in high technology business and other industries. As a result, investors can be entertained through tax exemption policies.

The vehicle of business in South Korean includes partnership, limited partnership and liability, stock and limited company. Capital market and finance marketing business act will take care of trust factors of investments.

If the company wants an option of joint stock, focus on subscription on shares, payment of subscription and draft articles. Tax can be applied such as license and registration tax includes 0.4 to 1.2 percent paid up capital. Other taxes are local education tax (20%) and fees for register process of incorporation.

Share capital is purely negligible in South Korea.

Amazon must consider these legal obligations in order to start marketing in South Korea. The legal and lawful boundary can be taking into consideration in order to avoid the threats and gain maximum market value in South Korea.

Legal Obligations Regarding Marketing in Thailand:

Government gazette publishes the amendments of Thailand country on May 17, 2017. These amendments are workable on 15 September, 2017.

Direct marketing is the main strategy that is considered by amendments. It illustrates the offering of goods or services through communication. As a result, consumers can be delighted through goods and services. Partnership and company are also introduced by amendments.

For direct sales registration, specific requirements are made. It involves the juristic personnel that is being applicable to direct sales as well as direct marketing. The amount which is predefined for paid up capital for company is THB 1 million and for partnership is TBH 500,000.

Operators are assigned to submit the reports of business. Any type of changes which operator is willing to do must be informed within 15 days.

Consumers are protected and entertained if they receive goods that contain defect or any other issue. Hence, operators are answerable to various consumers for wrong instructions or defects of product or services.

Registrar will monitor the activities correctly. If any kind of violation occur, he will charge fine or assign the imprisonment depend upon violation.

Exchange control act 1942 will monitor the foreign exchange transactions. Tax and no tax incentives are offered to investors.

Board of directors will manage the private corporation. Basically, this is the management style for the selection of private limited company. Also, requirement of nationality by directors is not mandatory even.

Marketing in Thailand can only be done in effective and efficient way if all legal obligations can be fulfilled. Otherwise, violation occur which will harm to certain business of owner. Amazon is a big business holder, must take care of these entire legal obligation, in order to achieve high market targets and delighted customers in Thailand.

Promotional channel in Thailand:

Advertisement plays an important role in marketing. When we talk about Thailand, Amazon must use advertising media to promote its product or services. Through advertisement, consumers which are targeted as well as potential in Thailand will come to know about Amazon business. Hence, advertisement is a strong medium in generating responses and consumers. It is favorable in Thailand market to do a proper advertising of product or services.

Internet, trade and commercial promotion are also equally important in Thailand marketing. Amazon has to use these medium to promote their product or services. Internet is very cost effective strategy, as you can grasp audience attention within no cost. Through trading, Amazon can expand its business and make it remarkable. Hence, promotional strategies are very important in order to create awareness in targeted consumer mind. As a result, marketing mix gets strong and favorable in the desirable market.

Promotional channel in South Korea:

Favorable factor in this regard is to be considered is import and export phenomena. Amazon can start export or import with South Korean in order to generate high sales and customers. Thus, from several years, South Koreans launch show on trading. So, it is good opportunity for Amazon to promote their business through this medium.

Advertising which is in the form of online advertising can be taken in to account by Amazon in Thailand. Since, advertising is a rich source for grapping consumer attention. Amazon can avail this channel and offer various package to their product in order to gain large market of Thailand. Advertisement can be done through television, a huge source of information provider. Amazon can take these factors into account while doing promotion in Thailand and South Korea. It can be very effective way to gain the attention of market and profits.

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