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Amazon Confidential
Amazon Confidential
This case and the numbers published in this case are not representative of any Amazon businesses within India or in any
other region where Amazon has offices or operations and should not be used for any public or media consumption.
Amazon Confidential
Karans Problem
While working on the 3 year plan for Amazons Consumer Business in India, Karan comes across a study
done by a Marketing Intern at Amazon. The report talks about some key trends in the changing Indian
landscape, new business opportunities that could fuel the next growth phase in the e-Commerce space in
India and a largely under tapped consumer base with multiple new problems that Amazon could solve for
its customers.
Some excerpts from the report are given below:
According to the study conducted, online shopping of physical goods in India will grow to $17.52 billion by
2018 and the number of online shoppers in India will more than double to 40 million. Contrary to popular
belief, it is the Tier 2 and Tier 3 towns that have been driving the growth of e-Commerce in India and they
already contribute to a significant portion of e-Commerce sales. A growing class of aspiring consumers who
hitherto did not have access to the big brands in their cities or towns are driving this growth. Other factors
fuelling the growth are a higher penetration of internet via mobiles in these towns and heavy discounts given
by e-Commerce players making products affordable. Innovations like Cash on Delivery and EMI options have
further made online shopping possible for the earlier left out population in India.
The right kind of category focus is one of the key challenges e-Commerce companies face. E-commerce has
disrupted a number of large categories, including media, electronics, apparel, and home furnishings. If you are
shopping in these categories, theres a strong and rapidly growing chance that you are going to buy them
online. E-commerce is still a very tiny portion of total retail that happens in India. So yes, theres a lot of
headroom to grow.
An independent third-party survey conducted across 40 towns of India revealed that nearly 66% of this growth
was coming from women consumers who accounted for 21% of the online shoppers, almost doubling their
share in the past one year. The average basket size of women consumers is 4 whereas it is 3 for men. Also,
women consumers had a higher purchase frequency as compared to men.
After reading the article, Karans thought went back to the strategy that he was drawing out. Amazon saw
a strong need to dive deep into the changing market dynamics and design programs and products that are
differentiated and provide women customers in Tier 2 and Tier 3 towns, a unique shopping experience that
was not available to them earlier.
He had to answer 3 key questions:
Q1. What specific target consumer group should Amazon focus on while making its 3 year strategy?
Karan was not sure if he should be focusing on a single specific target group (TG) or build a strategy that
is more generic in nature.
Q2. What categories/selection should he focus on for the selected TG and why? What should the
selection acquisition strategy be for Karan? The list of categories are mentioned here:
Amazon Confidential
This case and the numbers published in this case are not representative of any Amazon businesses within India or in any
other region where Amazon has offices or operations and should not be used for any public or media consumption.
Amazon Confidential
How can Amazon build loyalty with this TG in the long run?
Key Guidelines:
Your solution should not exceed 3 pages in all, preferably one page per question. Appendix can
be extra for only providing data supporting your recommendations/solutions. Recommendations
given in the appendix will not be considered for evaluation.
Original ideas would be preferred over suggesting existing Amazon programs/features available
or implemented globally.
Provide the source for every data point provided in the solution.
In case of any financial model you want to provide (not mandatory), please attach the excel sheet
separately along with the 3 pager solution.
Amazon Confidential
This case and the numbers published in this case are not representative of any Amazon businesses within India or in any
other region where Amazon has offices or operations and should not be used for any public or media consumption.