analysis and evaluation of current 7ps marketing strategy

- At the time of launch, Shopee was oriented as an e-commerce platform mainly developed on mobile devices, operating as a social network to serve the shopping needs of users anytime, any

1 GROUP ASSIGNMENT

Subject: Service Marketing Managenment Lecture by: Phạm Khánh Huyền

Class: MKT1803 Group 3_ Team members: 1 Phạm Thị Lan Phương – HS170984 2 Khương Thúy Thanh – HS171193 3 Hoàng Đức Bình – HS171312 4 Vũ Ngọc Khoa – HE172155

5 Nguyễn Thị Trà My – HS170089 6 Nguyễn Thị Hảo - HS170554

2

Table Of Contents

1 Executive summary 3

2 Service organization’s Introduction 3

3 Service Organization’s Situation Analysis 4

b Online shopping habits 17

c Evaluate the shopping experience .17

d Shopping trends and preferences: 18

4.3: Challenges and problems that the service provider is facing 19

5 Analysis and Evaluation of Current 7Ps Marketing Strategy 20

5.1 Product strategy = Core product + Supplementary services (using the Flower of Service model) 20

5.2 Pricing strategy (what is the basis for pricing, answer the questions of What, Where, When, and How) 21

5.3 Placement strategy 22

5.4 Promotion strategy 23

5.5 Physical evidence strategy 25

5.6 Process (Using the Service Blueprint) 26

5.7 People 27

6 Recommendations and Conclusion 28

7 References 29

3 Title page: This makes the first impression It should have the client/product name (and logo) of the company or not-for-profit organization

SHOPEE

1 Executive summary

The report focuses on analyzing the Shopee e-commerce platform Overall, the report has four main parts: Introduction to the service organization, Analysis of Shopee's service organization situation, Consumer research, Analysis and evaluation of the current 7Ps marketing strategy The analysis will show an overview of shopee's organization, model and service strategy

2 Service organization’s Introduction

- Shopee is an e-commerce trading platform headquartered in Singapore, owned by SEA Group (formerly Garena), founded by billionaire Forrest Li in 2009 Shopee first launched in 2015 in Singapore Up to now, this e-commerce platform is present in the following countries: Singapore, Malaysia, Thailand, Taiwan, Indonesia, Vietnam, Philippines and Brazil

- At the time of launch, Shopee was oriented as an e-commerce platform mainly developed on mobile devices, operating as a social network to serve the shopping needs of users anytime, anywhere Integrating operating systems, delivery and payment support, Shopee is an intermediary that makes online shopping easier and safer for both buyers and sellers

- Vision: “Connecting users and businesses across Southeast Asia through e-commerce, making it easier than ever for people to shop and sell online.”

- Mission: “Create a safe, reliable and convenient online shopping experience for everyone.”

4 - Currently, Shopee is the leading e-commerce shopping site in 7 major countries such as

Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines and Taiwan Shopee came to Vietnam on August 8, 2016 Shopee has only been available to Vietnamese users for about 8 years, but under the talented leadership of CEO Tran Tuan Anh, Shopee has developed significantly, it can be said to be on par with predecessors such as: Lazada, Tiki, Adayroi, Lotte…

3 Service Organization’s Situation Analysis 3.1 Business/company Context

- Shopee is a leading e-commerce platform in Southeast Asia and Taiwan It was launched in 2015 by the Singapore-based company Sea Limited (previously known as Garena) Shopee operates in multiple countries, including Singapore, Malaysia, Thailand, Indonesia, Vietnam, the Philippines, and Taiwan

- Shopee's platform allows individuals and businesses to buy and sell a wide range of products, including electronics, fashion, beauty products, home appliances, and more The platform offers a user-friendly interface and various features such as in-app messaging, secure payment options, and integrated logistics support

- One of Shopee's key strategies is to provide a seamless online shopping experience for its users The company focuses on promoting user engagement by offering features like live chat customer support, flash sales, social media integration, and gamification elements Shopee also organizes large-scale marketing campaigns and events to attract users and increase brand awareness

- Shopee has been successful in capturing a significant market share in the Southeast Asian e-commerce industry It faces competition from other major players like Lazada, Tokopedia, and Bukalapak To stay ahead, Shopee continues to innovate and expand its

5 services It has introduced additional features such as ShopeePay, a digital wallet service, and Shopee Mall, a platform for official stores of well-established brands

- In recent years, Shopee has also ventured into other business areas It has expanded into food delivery services with ShopeeFood and launched ShopeePay as a standalone digital payment platform Shopee's parent company, Sea Limited, has also strengthened its presence in the gaming industry through its subsidiary Garena

- Overall, Shopee has become a prominent e-commerce player in Southeast Asia, known for its user-friendly platform, extensive product offerings, and innovative marketing strategies

3.2: SWOT Analysis Strengths

- Strong financial resources and high market share in the e-commerce market:

Shopee is owned by SEA Group (formerly Garena) - the most valuable startup, the group that owns the largest gaming platform in Southeast Asia

-In Vietnam, Shopee entered the market in 2016 and has had rapid growth, rising to third place in the market in early 2018 and currently leading in traffic In 2020, Shopee ranked first globally country in terms of both downloads and application usage

6 -There are many preferential policies and operating methods that bring many benefits to customers:

+ Integrating many utilities through the App: In addition to shopping for goods, Shopee also integrates card recharge and services Users can top up their phones, buy data, pay utility bills, take out consumer loans Especially when paying with Airpay wallet, they receive many incentives

+There are many promotions, discounts, and free shipping Through free shipping, flash sales and coupons, Shopee attracts a significant number of online shoppers

+ Support shipping costs for orders, extremely preferential shipping policies for sellers, linking with major shipping companies, relatively fast delivery time

- Products on Shopee are diverse and rich in quality and price:

+ "Anything, buy everything at Shopee": is likened to an "online market" where consumers can buy most of what they want here), from household appliances, electrical appliances, chemicals, cosmetics, eat,…

7 +Goods on Shopee are divided into 2 types: Goods provided by small shops and Goods from Shopee Mall: genuine goods, quality assurance of trusted brands opening stores on Shopee -There are policies to protect sellers and buyers:

-Built a community of sellers and buyers: C2C model Shopee has been able to build a huge unlimited network of buyers and sellers without any inventory concerns

-There are policies to protect sellers and buyers

-Invest heavily in Marketing and communications: Use the influence and charisma of famous people to act as brand representatives, Affiliate Marketing,

Weaknesses

- Difficult to sell products because the level of competition is higher than other e-commerce platforms

- It is difficult to control the seller's source of goods as well as market dumping

- Incomplete purchase evaluation system with poor management: Complicated return and exchange process, Ineffective purchase evaluation system, etc

- Conflicts between customers and sellers have not been resolved Opportunities

- The trend of online shopping is increasing strongly: With the rapid development of online business along with the complicated situation of the Covid 19 epidemic, consumers are increasingly inclined to buy online

- Vietnamese people's Internet usage time is high: On average, Vietnamese people use the Internet for up to 4 hours per day This is a great opportunity to develop online business - The trend of online shopping is increasing strongly: With the rapid development of online business along with the complicated situation of the Covid 19 epidemic, consumers are tending to buy more and more online

- Easily promote products: Cooperate with KOLs, artists, hot tiktokers to widely promote the site to customers

8 - Abundant human resources: using a large number of domestic workers, creating more job opportunities for people in each country where shopee operates

Threats

- Fiercely competitive market: With the rapid development of the current e-commerce market, Shopee has many competitors worth worrying about such as Lazada, Tiki, Sendo - Online business form: Although online shopping is growing strongly, at the same time, many incidents of fake and fraudulent purchases have created a tendency to be cautious when goods are not inspected

- High sales costs: E-commerce is a relatively new form of sales in Vietnam, so the costs of maintaining the site, warehouses and customer support are very high

- For logistics issues such as backlogged orders, lost orders, or refunds, the business must bear all costs

3.3: Competitor Analysis

9 Company

Shopee was first introduced and launchedin 2015 in Singapore with the orientation of being an e-commerce platform developed mainly on mobile devices and operating aa social network to servethe needs of buying andselling anytime, anywhere

Lazada Group is owned by Alibaba Group.Lazada Vietnam belongs to Lazada Group - a multinational e-commerce corporation and is currently operating in many branches acroscountries

The e-commerce channel started as an online bookstore, established in March 2010 After more than adecade, Tiki has made strong changes to become one of the top 10 e-commerce channels in Viet Nam

Market Strategy

Focus on Southeast Asiaand Taiwan, and its integration of social features for customer engagement

Become the Alibaba of Southeast Asia, investing in logistics and a localized approach for each market

Focus on customer service, next-day delivery in urban areas,and its strategy to expand product categories Marketing

and Promotions

Sale on famous festivalsof the year, special daysof the month such as 2/ 2, 15/9, 11/ 11, Collaborate with celebrities to promote thbrand and use in-app games used to attract users

Annual "Birthday Sale" programs, cooperation with domestic and international brands as well as customer loyalty programs Focus on days with high customer demand such as "payday", "black Friday",

"TikiNOW" promotions for fast delivery, branding campaigns, and book fairs.The "Tikgo with Stars" campaigcombines famous singers to produce manmusic videos

Shopee is highly appreciated for its service quality, includingfast, accurate delivery and flexible return policy Besides, Shopeehas very smart and effective marketing strategies, from sponsoring major eventsto demonstrating the strong presence of the brand in mass media

The growth in investment capital from the parent company helps Lazada access many advanced

technologies such as an automatic product classification system that helps shorten time and save costs

Tiki has built and implemented its uniqueselling point (USP) and fast delivery service with a national averagedelivery time of only 1.6 days, allowing customers to receive goods in 2 hours in Hanoi Noi and City HCM, and ensure the quality of goods when they reach the user Weaknesses

This platform still has limitations in technologysuch as not being able tmeet the needs of a largnumber of users at a

Sometimes products do not match what customers want, they are different from what is displayed

Heavy losses tend to increase gradually overyears of operation Tiki is not yet profitable andis still having to "burn

10 time During super sales

app errors often occur

The time period for payment of ordered products is too short

money" to compete for market share

- According to the report of website analytics tool similarweb.com, Shopee Vs Lazada: Shopee Vs Tiki

- The total number of visits to shopee's website is nearly 4 times more than that of lazada, nearly 17 times more than that of tiki, showing that shopee is superior in the customer group Besides, shopee's bound rate is less than both Lazada's and tiki’s, which shows that the rate of customers who do not leave after visiting shopee is lower

11 In addition, as reported by the website statista.com, shopee completely dominates the e-commerce market in Vietnam, accounting for more than 63% of the market share, meanwhile, Lazada only accounts for 16% and Tiki is 1%

statista (2023, 7) Retrieved from statista.com: commerce-market-share-by-platform/

https://www.statista.com/statistics/1418390/vietnam-e-=> In summary, from the above comparative analysis, it can be seen that Shopee is the biggest player in Vietnam's e-commerce industry, outperforming competitors in the same industry

3.4: PESTLE analysis

- PESTEL analysis is a way of understanding the political, economic, social, technological, environmental and legal factors that impact the tourism and hospitality industry This helps us find smart strategies to achieve sustainable success

BUSH, T (2019, 11 17) PESTLE ANALYSIS Retrieved from pestleanalysis.com: https://pestleanalysis.com/pestle-analysis- -tourism/of

The following are PESTEL analyzes within the framework of the Vietnamese market:

- POLITICS:

Management agency system: In recent years, state management of e-commerce has changed dramatically, creating favorable conditions to stabilize the business environment in Vietnam The Government is very focused and puts effort into building

12 and developing e-commerce activities, and at the same time making efforts to minimize business barriers, procedural and infrastructure limitations for businesses operating in the industry such as Shopee, through through Decisions and Directives such as: Decision No 645/QD-TTg approving the National e-commerce development master plan for the period 2021-2025, with the goal of expanding the consumption market for Vietnamese goods through e-commerce application; Directive No 18/CT-TTg on promoting connection and data sharing to serve the development of e-commerce (e-commerce)

- ECONOMY: Vietnam's economic growth affects consumption and the development of commerce

e-Economy: With a steadily growing economy, Vietnam offers many opportunities for the Shopee e-commerce platform Shopee can take advantage of young human resources and added value thanks to Vietnam's economic growth Along with that, the growing popularity of the Internet and smartphones in Vietnam also provides a favorable environment for Shopee to thrive in the e-commerce sector

Consumer index: In recent years, the proportion of consumers shopping online has increased, according to statistics of moit.gov.vn, (bộ công thương Việt Nam, 2023)

Vietnam is the country with the highest proportion of the population shopping online in Southeast Asia with 49.3 million people, equivalent to 41% of the population This shows that the trend of online shopping is increasing and is expected to continue to

13 increase in the near future Along with that, according to the International Trade Administration

(n.d.) Retrieved from international trade administration: guides/vietnam-ecommerce

the e-commerce market in Vietnam is expected to grow 17% from 2020 to 2025 and reach a total transaction value of up to 52 billion USD in 2025 Looking In general, this is a favorable opportunity for e-commerce to develop strongly in Vietnam

- SOCIETY

With more than 98 million people (According to 2021 statistics), Vietnam is one of the countries with the largest population in Southeast Asia With the strength of a young population as well as a large proportion of smartphone users and a large number of people transacting e-commerce on smartphones, the e-commerce market in Vietnam is currently growing quite rapidly This is a very good opportunity for E-commerce businesses like Shopee to continue to promote marketing strategies to attract more customers such as promotional campaigns, free shipping, flash sales and coupons for both buyers and sellers

With the rapid development of information technology and the internet, Vietnamese people are becoming more and more familiar and confident with online shopping Online shopping through Shopee not only saves time and effort; but also easily

compares and chooses products that suit the user's needs.In addition, consumption levels have also impacted Shopee's market access and business development E-commerce is no longer limited by geographical space, Shopee can reach customers nationwide quickly through the online platform This helps Shopee expand its market and increase sales

14 - TECHNOLOGY:

Online payment By the end of 2021, the value of electronic payment transactions in Vietnam is estimated to reach 15 billion USD, an increase of 168.5% compared to 2020 Besides, according to the report Digital payment users in Vietnam 2017-2025 , updated in 2022 shows 51.8 million digital commerce users By 2025, it is estimated that users will increase to 70.9 million, and the number of mobile payments will also increase from 28.6 million to about 34.6 million

Anh, D C (2022, 11 25) MINISTRY OF INFORMATION AND COMMUNICATIONS Retrieved from micgov: https://mic.gov.vn/mic_2020/Pages/TinTuc/156200/Viet-Nam- -1-trong-3-thi-truong-lathanh-toan-dien-tu-lon-nhat-dong-Nam-A.html

Since the outbreak of Covid-19 in 2020, it can be seen that people have started to have safer and more convenient shopping habits, by using non-direct payments through e-wallet apps The total number of orders on Shopee paid via AirPay e-wallet across the region increased 4 times The group with strong growth is mostly users over 50 years old This is a testament to the accessibility of AirPay wallets to an age group that is often considered difficult to adapt to digital payments

- LAW:

For the e-commerce market, state agencies have issued many legal documents to control e-commerce activities, including: Decree No 130/2018/ND-CP , Information

Technology Law No 67/2006/QH11

Đinh, H (2024, 2 22) Retrieved from dmsgov: portlet/html/print_cms.jsp?articleId=75214

https://dms.gov.vn/CmsView-QLTT-To be able to comply with the regulations set forth by the government, Shopee has developed many policies including:

1 For the Payment Law, Shopee has issued payment policy

15 2 For the Law on Advertising, Shopee has regulations on product listing, product

Businesses Commitment to being responsible for the environment also affects the purchasing decisions of 62% of Vietnamese consumers

Currently, consumers are willing to pay more for food packaged with environmentally friendly materials, and The trend of green consumption and green living is forecast to continue to grow strongly in the coming time

Therefore, the timely shift to green production to catch up with market demand is the basis for businesses to develop more sustainably

For example: In 2022, Shopee introduces a new campaign called "Choose Green Together Shopee” This is one of Shopee's efforts to support local businesses selling environmentally friendly products Through this campaign, Shopee also cooperates with Sellers and Brands to introduce to consumers a collection of nearly 100 environmentally friendly products from reputable Sellers and Brands such as VinFast, Coolmate, Aaa Jeans, AnEco, Ecobuff , along with environmentally friendly services, contribute to spreading a sustainable lifestyle in Vietnam