tiểu luận shopee marketing strategies to achieve theri goal in viet nam

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *** AN ANALYSIS OF THE EFFECTIVENESS OF MARKETING MIX IN DEVELOPING NEW PRODUCT: SHOPEE’S MARKETING STRATEGIES TO ACHIEVE THEIR GOAL IN VIETNAM by INS 2003 Group: 10 Student’s full name: Phạm Trung Dũng, Vũ Minh Tuấn, Nguyễn Đức Dũng, Nguyễn Hải Yến, Nguyễn Minh Tùng Hanoi, May 07th, 2021 ABSTRACT This article provides an assortment of issues about Shopee's marketing strategy Online shopping is rapidly gaining popularity in Vietnam, which is evidenced by the preferences and behavior of consumers The latest statistics from some online shopping websites, online shopping has shown remarkable developments in recent years Realizing that, Shopee has applied a 4Ps marketing campaign to confirmed their position on Vietnam’s Ecommerce We point out that all of the studied cases exhibit additional properties and complexities when compared to similar cases, previously published in literature Additionally, the companies’ current solutions and future demands for marketing are discussed KEYWORDS Marketing Strategy, Marketing mix (4Ps), Ecommerce, Market segmentation, Targeted customer TABLE OF CONTENTS ABSTRACT KEYWORDS TABLE OF CONTENTS INTRODUCTION 1.1 General information about Shopee 1.2 Type of product 1.3 Marketing goals 2.2 METHODOLOGY,ANALYSIS, FINDING & RECOMMENDATIONS 2.1 Theories of learning 2.1.1 Market segmentation 2.1.2 Market segment 2.1.3 Marketing strategy 2.1.4 Marketing mix (4Ps) Error! Bookmark not defined 2.2 Methodology 2.2.1 Purpose 2.2.2 Scope 2.2.3 Resource 2.3 Analysis Shopee’s 4Ps Marketing Strategy 2.3.1 Product .8 2.3.2 Price 2.3.3 Place 2.3.4 Promotion 10 2.4 Finding .11 2.4.1 Evaluation 12 2.3.2 Analysis 12 2.5 Recommendations 13 2.5.1 Customer stimulus programs Error! Bookmark not defined 2.5.2 Increase the trust in the eyes or unfamiliar buyers 14 2.5 Appendix 13 REFERENCES 177 INTRODUCTION 1.1 General information about Shopee Shopee, a Sea company, was first launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam and the Philippines Sea is a leader in digital entertainment, e-commerce and digital financial services across Greater Southeast Asia Sea's mission is to better the lives of consumers and small businesses with technology, and is listed on the NYSE under the symbol SE Shopee is creating convenience for Greater Southeast Asians and is the leading ecommerce platform in Southeast Asia and Taiwan It is a platform tailored for the region, providing customers with an easy, secure and fast online shopping experience through strong payment and logistical support Shopee aims to continually enhance its platform and become the region’s e-commerce destination of choice 1.2 Types of product In respond to the diversity of Viet Nam’s customer demand, Shopee has provided a wide selection of product categories ranging from consumer electronics to home & living, health & beauty, baby & toys, fashion and fitness equipment All the information about shopee product was listed below are research from https://keywordtool.io/ website Living Entertainment Shopee Health Beauty Figure Shopee’s product categories Source: Adapted from Shopee Vietnam Type Living Including: House, Houseware, electronice device,… which account for 40% of product sales on Shopee, Topping the search list on shopee today is phone accessories This can completely be explained because this is a commodity that meets the needs of the majority Phone accessories such as cases, headsets, cable chargers on Shopee are supplied by many different units You can easily search with search on the home page, compare prices in many shops and easily buy for your mobile phone pretty accessories at a bargain price In addition, promotions on phone accessories also regularly appear on Shopee Type 2: Health Shopee has a full range of products from famous brands such as Merries, Goon, comotoco, Glico, Tuticare Some of the best-selling products on Shopee are diapers, milk powder, toys and accessories for babies The reason this industry attracts customers is because of the large number of products and many 10%, or 20% discount for diaper products from time to time Those are some of the attractions when you visit mother and baby shops on shopee Although they are not as outstanding as the above categories, these items have remained among the top selling products such as smart phone or clothes on Shopee in recent years Type 3: Beauty Half of the world is women and 99% of women love beauty - that's why cosmetic stalls are everywhere Cosmetics on Shopee are no exception, distributed by shops across the country and prominent brands Easily to find skin care products such as cleanser, shampoo, sunscreen, shower gel, moisturizer, mask, toner seasonal and HOT on Shopee Some brands are loved today such as: Vichy, Innisfree, Loreal, Acnes, Cetaphil, Senka In addition, beauty accessories like face washers, massages, saunas are also the keywords that are searched a lot on Shopee today Unlike many other e-commerce sites, sellers on Shopee actively promote items without cost or cumbersome procedures One of the most popular items on Shopee today is women's fashion Selling online is no longer an unfamiliar concept and the most thriving item today is fashion Women's fashion on Shopee is updated quickly with the hottest models on the market Shopee shop owners compete with each other quite fiercely This is reflected in the same product but being sold at different prices or with different promotions Therefore, customers will be the beneficiaries of choosing the best product at a reasonable price in the process of tracking and comparing goods between shops Type 4: Entertainment In this modern and busy life, the demand for fast - compact - light - quality service is getting higher and higher Services that can be booked online such as food vouchers, online recharge services, online courses, and spa beauty are more interested With food service, there are many discount vouchers on the shopee from fast food brands, restaurants that support fast delivery, cheap prices Discount vouchers for beauty, spa, online courses at good prices are also excellent, it help improvethe quality of life Especially, the service of recharging high-discount phone cards of many different carriers such as vina, viettel, mobifone is also used online on shopee These service vouchers meet the needs of customers, ensuring the quality and customer’s loyalty 1.3 Marketing goals The marketing goal is becoming an online sales website with the biggest number of customers in Vietnam METHODOLOGY,ANALYSIS, FINDING & RECOMMENDATIONS 2.1 Theories of learning 2.1.1 Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes 2.1.2 Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts  Segmenting consumer markets  Segmenting business markets  Segmenting international markets  Requirements for effective segmentation 2.1.3 Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships 2.1.4 Marketing mix (4Ps) is the set of controllable, tactical marketing tools— product, price, place, and promotion—that the firm blends to produce the response it wants in the target market 4Ps:  product: functionality brand packaging services  price list price discounts bundling credite term  promotion advertising sales force publicity sales promotion  place channel inventory logistics distribution 2.2 Methodology 2.2.1 Purpose The purpose of this report is to collect information & analysis issues about Shopee's marketing strategy and Shopee’s targeted customer 2.2.2 Scope The report examines only about Shopee's marketing strategy and Shopee’s targeted customers in VietNam It does not examine Shopee's marketing strategy and Shopee’s targeted customers in others country 2.2.3 Sources The information for this report was gathered from the following sources: • Questionnaires • Online Resources 2.3 Analysis Shopee’s 4Ps Marketing Strategy 2.3.1 Product Shopee engages its customers by focusing on country-specific app development This is also part of a strategy of high localization for each market With this localization strategy, Shopee has achieved a desirable success in each of its selected markets (increase up to 20%) Shopee creates an optimized website in different languages so that their customers can easily trade on it, no more worry of different regions now users can buy all Shopee also pays attention to providing an easy and convenient customer experience through website design based on customers' usage habits, for example, when users buy a specific product they will get similar product chain 2.3.2 Price The company applies a competitive price strategy With the fierce competition in the e-commerce market, Shopee understands that: When many companies provide the same type of service, the customer will weigh it on the price, for example, tiki a competitor in this market also has the same service so customers will choose which side has the best offer Shopee also stimulates business owners The company offers preferential prices when shops register to become Shopee members In addition, Shopee also maximizes their support with shipping fees, and gives Freeship codes to stimulate customers to buy when using their application 2.3.3 Place The e-commerce and digital economy in Southeast Asia is rapidly growing and has great growth potential Shopee has identified these opportunities brands utilize to differentiate themselves from other e-commerce platforms and improve their approach to user engagement The Shopee mobile app provides a clean interface, user-friendly design, easy-touse, quick links to each Shopee feature, with user-centric design combined with an intuitive interface that matches the experience of both buyers and sellers right from the start of their journey, users can have a good time finding their needs In addition, Shopee also actively associates with shipping partners with the best network in each country so that customers can receive their goods quickly at cheap shipping rates For example, in Vietnam are Saving Delivery, J&T Express, Furthermore, Shopee also cooperates with major banks in Vietnam as well as e-wallets for buyers and sellers to easily transact with each other, in addition to the traditional form of payment through the delivery person as in the old days 2.3.4 Promotion Shopee invests heavily in media channels such as Facebook and Google up to more than 15% of their company shares This will help Shopee's marketing partners earn more commissions, and at the same time help Shopee save on marketing costs, enhance value and become a potential market for all partners Shopee understand their customers so they try to make ads almost exactly to what users want which might stimulate them to buy that product which adds a tons of profit to their budget Shopee's ads appear on public transport, on social networking sites and on TV every day With extremely high frequency of appearance and surprisingly accurate, Shopee has become a brand that people will remember for a long time when there is a need to shop Shopee also organizes sale campaigns on many occasions of the year: big holidays, major events of the year (Shopee's Birthday, Soccer Events, Miss Vietnam ) and uses the celebrity strategy to collect attract the attention of young Vietnamese - who buy a lot through e-commerce platforms 10 This customer approach is extremely expensive never under the number of 100 millions, but it will dramatically increase the number of customers 2.4 Finding 2.4.1 Evaluation Below are the data reported by Shopee in the first quarter of 2020 compared to 2019 have been aggregated The first quarter of 2020 is the time when the epidemic first broke out in our country and the whole country was quarantined for the whole society 2.4.2 Analysis Looking at the report, we can see that the market picture is more exciting than ever with the numbers reaching all-time records In just months of the first quarter, the total trading value on the floor increased by 74.3% to reach $ 6.3 billion with 429.8 million orders The floor profit earned reached 314 million dollars and increased by more than 110% compared to 2019 The profit earned doubled compared to the average compared to last year Looking at the order data you can also see that the number has increased dramatically over the past year In the first quarter of 2019, on average, each day the number of Shopee orders received ranged from about million orders But by 2020, the number has reached million orders This must be a clear change in the buying habits of Vietnamese consumers in the first months of the year 11 Consumer age 10% 28% 18-24 25-34 >34 49% Vietnamese women (about 60%) shop more than men (about 40%) Not surprisingly, the young generation of Vietnam increasingly loves online shopping Nearly half of online shoppers (49%) are 25-34 years old Followed by people aged 18-24 (28%) Groups of people over 35 years old are less than 10% Popular devices 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Series1 Smartphone App Smartphone Browser Home PC Others Smartphones always stand in a priority position in the selection of online shopping devices (63%) In which 47% of users use the applications available on smartphones to shop and only 16% of users use the web browser on their phones to search and order This big difference demonstrates consumer preference for convenience and ease of use from mobile phone applications The application is easier to use, has many integrated and diverse features, and is transparent about the goods, the more stimulating the consumer shopping cart 12 Vietnamese people have a hobby of hunting for discounted goods during office hours, perhaps to reduce stress at work More than 35% of transactions are made in the time frame from 12pm - 6pm The form of cash payment (80%) after receiving the goods is still very popular in online shopping in Vietnam The weekly frequency of online shopping for women (18%) and men (16%) is nearly the same However, when comparing the frequency of buying once, or several times per month, the buying rate of men (31%) is much higher than that of women (28%) and twice as high as the frequency of buying shop every week The reason men increasingly love shopping online is because of the attractive offers as well as the variety of items According to a survey by Shopee, Home & Life, Phones & Accessories and Men's Fashion are the most popular categories for men, because they often need to buy electronic products or bags, sports on online shopping sites 67% of 80% of online shoppers are satisfied with their shopping experience The three points that online shoppers are satisfied with are the abundance of products, attractive prices and promotions There are three points of dissatisfaction: quality of goods compared to advertising designs, transportation costs and customer care services Men's and Women's Fashion, Health & Beauty, Home & Life, Technology are the four best-selling categories of the online shopping market An interesting point is that men always account for a higher percentage than women when talking about "User gender" on Shopee 2.5 Recommendations Though seemingly perfect, Shopee’s marketing strategy has been more of the same and in need of a shakeup 2.5.1 Customer stimulus programs Shopee has been known for their massive sales date like 5/5 as their most recent example These massive sale dates help attract more 10000 viewer per day onto the platform but because the offerings have always been similar and the products are mostly filler which lead to the hype and excitement of users dying down somewhat throughout the years To change up this increasingly stale concept, they need to implement a new categorized sales program For example “Electronic Monday” the spotlight are on electronics with 20% discount on smartphone or laptop and 30% for others, this approach will draw in buyers who are interested in electronics, or “Fashion Friday” where customers can get free ship for all clothing products when they order immediately on this day in order to attract the fashion continuous buyers By categorizing the consumers, they can focus on each demographic and eventually increase sales in the bigger picture in VietNam 13 2.5.2 Increase the trust in the eyes or unfamiliar buyers One of the biggest deterrent from online shopping for those who are unfamiliar with it is the legitimacy of the products being listed Shopee needs to advertise their excellent buyer protection program in front of the masses, so Shopee can provide warranty days for all products which help buyers can exchange or refund if they feel unsatisfied with the product In addition, Shopee can cooperate with highly regarded brands like Apple to open their official store on Shopee to make their platform more appealing to hesitant buyers afraid of buying counterfeit goods online 2.6 Appendix Questionnaires What types of products customers focus on ? A Fashion B Comestics C Food D IT Shopee's sales and profits in all items for the whole year What is the percentage of the regular customers’ age? A 18-24 B 25-34 C >34 14 What is the rating of both sex: Male and Female? A Female B Male How often customers order in Shopee ? A Weekly one more B Once – a few times month C Once several months D Never What is the electronic devices that are sought and favored ? A Smartphone B Home PC C Others The destination where goods are frequently transported A Home B Office C Others The amount that customers spend every month A 1.000.000 Payment method that customers often use A Payment on delivery B Others 10 The level of satisfaction of the needs of customers A Very satisfied B Satisfied C Unsatisfied 11 What are the benefits of online shopping? A Order anytime B Product variety C Mobile phone friendliness 15 12 The shortcomings of online shopping A Quality concerns B Rent shop preference C Security concerns 13 cause of the customer is not satisfied A Product quatity B Delivery cost C Customer support 16 REFERENCES http://shopee.vn/ https://www.sea.com/aboutus/leadership/management/ChrisFeng https://vnexpress.net/shopee-gia-nhap-thi-truong-thuong-mai-dien-tu-viet-nam3449667.html https://keywordtool.io/ https://articles.bplans.com/targetmarketing/?fbclid=IwAR1AltiLFaHUIjNftldd0pmv90IOiCZO9STuIllkoR4WsT s1xWUGGtXIAyw https://neilpatel.com/blog/4-ps-ofmarketing/?fbclid=IwAR249213BMvfA0DjhqSMpTg9InTuXvfZLFKtvtqSiw65 YFDs0rHaaenUVnI https://hbr.edu.vn/marketing/chien-luoc-marketing-cuashopee.html?fbclid=IwAR3ovL8DOJwJf4EgZY_l1eXOCgx6YEfRthVjYbgx6L ujIEcOSIlqHNK5A4Y 17 ... targeted customer 2.2.2 Scope The report examines only about Shopee' s marketing strategy and Shopee? ??s targeted customers in VietNam It does not examine Shopee' s marketing strategy and Shopee? ??s targeted... also used online on shopee These service vouchers meet the needs of customers, ensuring the quality and customer’s loyalty 1.3 Marketing goals The marketing goal is becoming an online sales website... General information about Shopee Shopee, a Sea company, was first launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam and the Philippines