Amazon target market
Choose an established business (e.g., Target, Sears, Hewlett-Packard, Caterpillar, Proctor and Gamble, Patagonia) and describe their target market using appropriate dimensions (e.g., geography, age, gender, income, psychographics). Who is NOT their market? Why?
Amazon is an established business pioneering ventures into many retail realms. Movies, groceries, music, books, electronics, etc. Who is there target market? Some would say everyone by the prowess of the company’s market shares which have reached a mind boggling $1000 a share. The recent acquisition of Whole Foods Market shows really where the company is focusing. By taking over a popular health centered grocery store the online powerhouse solidifies its marketing to millennials and their families.
Families in middle to upper income levels account for a majority of the target market. According to (Dougherty, 2017) “People who like loyalty programs tend to be young moms, between 25 and 44 with a few kids and a slightly higher than average income—in other words, a very attractive demographic.” Geography really does not matter because the company is an online retailer with the ability to deliver goods in under two days with free shipping in their prime program. An online article shows how a simple addition to Amazon’s membership plan caters to the target market.
Having a child also means an increase in spending. Amazon has targeted this customer with Amazon Family, which offers 20% off to Prime members for subscriptions to diapers and related products (Bowman, 2016).
Additionally, gender also creates a target as a higher percentage of shoppers are females which explains why most advertisements in almost all retail stores show deals with centered around interests or other popular items. If Amazon did not focus on a specific market it would be older generation where the usage of electronics is reduced especially online shopping. With the Whole Foods addition, and the family centric shopping experience Amazon will continue to be successful in its target market for years to come.