Problem Statement:
Determine the optimal pricing and benefit structure for Amazon Prime in India assuming all the benefits are same that the Amazon Prime is currently providing.
About Amazon Prime
Amazon Prime is a paid subscription service of the e-commerce giant which gives its users access to additional services like same, one- or two-day delivery of goods, streaming music, video, e-books, gaming, grocery shopping services, exclusive n early access to deals etc.
Benefits
- Free, fast delivery - As a Prime member, users get free Same-Day, 1-Day & 2-Day Delivery on a huge number of eligible items.
- Prime video - Without subscription user has to either purchase or rent any movie. With subscription, user gets access to a diverse prime originals, exclusive shows, regional and international movies and TV shows.
- Prime Music - With Prime membership, users enjoy ad-free music streaming. With option for offline downloads of millions songs in multiple languages - English, Hindi, Tamil, Punjabi, Telugu, Bengali and more.
- Playlists and Stations specially curated by Amazon’s music editors across moods, activities, genres, artists and decades.
- Can voice command by just tapping on Alexa icon in the app. No typing or searching needed.
- Prime Gaming - Users Get free downloadable games every month and additional gaming benefits like daily challenges and more.
- Prime Reading - access to a great selection of eBooks, Foreign Language eBooks, Literature & Fiction, Business & Economics, Action & Adventure , comics, audiobooks, magazines, from a rotating catalog
- Card and cashback - Eligible Prime members earn unlimited 5% cashback on all purchases on Amazon.in using the Amazon Pay credit card.
Model and Pricing
| Plan |
Price (INR) |
Fast Delivery (scheduled & same day**)** |
Prime Reading, Prime Music, Gaming |
Prime Video (Ad free, 4K quality, upto 6 devices) |
| Monthly Prime (1 month) |
299 |
Yes |
Yes |
Yes |
| Quarterly Prime (3 months) |
599 |
Yes |
Yes |
Yes |
| Annual Prime (12 months) |
1499 |
Yes |
Yes |
Yes |
| Annual Prime Lite (12 months) |
799 |
two day and standard delivery |
No |
- HD Quality, - Not Ads free, - Two devices only |
| Amazon Prime Video Mobile-Only plan (12 months) |
599 |
NA |
NA |
Yes |
Major Competitor Pricing and Benefits
| Competitor |
Benefits |
Price |
USP |
| E-commerce |
|
|
|
| Flipkart Plus Premium |
- Up to 4 SuperCoins per Rs 100 spent, daily & hourly deals. |
|
|
- grocery delivery | ₹999/year | - Rewards and loyality programs
- Hourly deals
- Early access to sales, and exclusive deals to subscribed members |
| Flipkart VIP | - Faster deliveries, free returns, priority customer service, exclusive deals | ₹499/year | - Rewards and loyality programs
- Hourly deals |
| Tata Neu Croma (electronics), Bigbasket (groceries), Westside (fashion), Tata CLiQ (clothing and lifestyle), Tata 1mg (medicine and healthcare), Qmin (restaurant food delivery), Air Asia India (flights), and IHCL hotels | - Eliminates the need to use multiple apps and provides a consolidated shopping experience.
- Can add items from different Tata brands to a single cart and complete the checkout process together. This simplifies the purchase journey and saves time.
- NeuCoins on every purchase,
One NeuCoin is equivalent to ₹1 | ₹499/year | - Rewards and loayality programs with Neucoins and NeuPass
- "Stories" section within the app features curated content related to lifestyle, fashion, and other relevant topics, enhancing user engagement. |
| Snapdeal | - Sometimes expedite delivery with some minimum spends | - No pricing tiers | - Snapdeal offers competitive pricing and prioritizes responsive customer service
|
| Ajio | - Sometimes expedite delivery with some minimum spends
- Curated collection of trendy and premium products
- Exclusive collections and collaborations | - No pricing tiers | - Community for fashion enthusiast , style guides, trend reports, and influencer collaborations, helping users discover new trends and products
- Omnichannel experience |
| Myntra Insider Pro | - Additional benefits like priority customer service
- Extensive fashion selection
- Focus on trends and curation | ₹199/year | - Free alterations on some brands.
- Early access to sales, additional discounts, and birthday offers
- Features inspirational content like fashion tips, style guides, and influencer collaborations |
| Streaming | | | |
| Netflix | - Vast library of original and licensed content, high-quality production
- Can create Multiple profiles and Offers parental controls to restrict access to certain content based on age ratings | ₹149 - ₹649 (varies based on plan and screen resolution) | - Vast library of original and exclusive contents
|
| Disney+ Hotstar | - Strong library of Indian content (TV shows, movies, sports), international content from Disney, Pixar, Marvel, Star Wars, National Geographic | ₹119 - ₹499 /monthly (varies based on plan) | - Multiple subscription plans
- Regional content |
| Sony LIV | - Focus on Indian and international sports content, original shows, movies, regional language programming | ₹199 - ₹499 /monthly (varies based on plan) | - Multiple subscription plans
- Regional content |
| Other | | | |
| Jio Prime | - Free subscriptions to various streaming services (including Amazon Prime Video for a limited period), data benefits, discounts | ₹99/monthly (includes other benefits like Jio data and calling) | - Data benefits, fibernet, Jio meet, Jio Gaming etc
- Complimentary subscriptions to various streaming services like Disney+ Hotstar, Voot Select, and JioCinema, |
| Spotify Premium | - Vast library of music, podcasts, personalized recommendations, Ad-free listening, Unlimited song skips | ₹129/monthly | - Social features
- Podcasts
- On-demand playback, and higher-quality audio options |
Market Analysis
| Key Data (India) |
Numbers |
| Launch year |
2016 |
| No. of Prime subscribers estimation(2022, FixPatrol) |
22milion + |
| Active Users of prime video(2022, Shiprocket) |
60million+ |
| Ecommerce market share(2023) |
35% |
| Most popular category - Smartphone |
47% market share |
- According to a survey conducted by ‘Rest of World,’ 65% of Prime members in India are male, 60% are under the age of 35, and 55% have a college degree.
- 75% of Prime members in India live in urban areas.
- Preferred categories these shoppers included: apparel & fashion (43%), mobile & accessories (42%), personal care & beauty (41%), household & grocery (39%), home appliances & decor (33%), and consumer electronics (24%).