group assignment digital marketing campaign lazada

From the collected data and information, we can easily perceive that Lazada is gradually losing market share in the competition between e-commerce platforms.. format through technology,

1

Table of Contents

Table of Contents 1

Executive summary 2

I Introduction 3

1.1 Brief background of the organization/brand 3

1.2 Relative position of the organization in the market 3

1.3 Media presence and visibility of the organization 5

1.4 Digital Readiness 7

2 Key marketing communication problem(s) to be solved 8

3 Customer analysis 8

3.1 Primary Research of the target consumer 8

*Part 1: Participant Information 9

*Part 2: Consumer Behavior 9

*Part 3: Experience 11

3.2 Key Insights 12

3.3 Customer persona 14

3.3.1 Age 14

3.3.2 Gender 14

3.3.3 Income 14

3.3.4 Needs and Issues 14

3.4 Customer buying journey 15

4 Key strategic campaign decisions 17

4.1 Propose solutions for the interface 17

4.2 The communication model 18

4.3 Goals, metrics and KPIs 18

5 Campaign analysis 18

5.1 Channel strategy 18

5.1.1 Social Media (Facebook) 18

5.1.2 Online Video (Youtube) 19

5.2 Content strategy 20

5.2.1 Content Plan 20

5.2.2 Demo Content 20

5.3 Gantt chart 20

5.4 Budgeting 21

5.5 Evaluation of effectiveness 21

References and Appendices 22

2

Executive summary

Lazada is an e-commerce platform established in 2012, Lazada quickly became the leading e-commerce platform in Southeast Asia With a presence in 6 countries: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, Lazada offers customers a variety of products such as electronics, fashion, and food

This executive summary provides an overview of the Lazada e-commerce platform

To better understand customer consumption behavior on the Lazada e-commerce platform, our team has conducted research through primary and secondary research, along with surveys in customer segments Our research is also collected through data analysis tools such as Google Analytics, Meta, YouTube Analytics, and Google Ads From the collected data and information, we can easily perceive that Lazada is gradually losing market share in the competition between e-commerce platforms Our team also proposes campaigns that can help Lazada improve and attract a large number

of potential customers

The campaign message is to help potential customers easily interest in and use the Lazada As well as helping Lazada have a more customer-friendly interface Communication strategy includes advertising campaigns on social media such as YouTube and Facebook The goal of the campaign is to increase brand awareness among the target audience, spark excitement and interest in the product to create buzz, increase customer engagement on social media, and ultimately, increase sales revenue

A timeline and budget were created to ensure the plan was implemented effectively and efficiently Additionally, an evaluation and control plan has been developed to periodically evaluate campaign effectiveness, maximize results, and adjust tactics accordingly

3

I Introduction

1.1 Brief background of the organization/brand

Lazada was founded in 2012 by Maximilian Bittner, with the intention of establishing an Amazon-like business model in Southeast Asia to take advantage of the young and potential online consumer market here Lazada's e-commerce websites began launching in 2012 Initially, Lazada operated in 6 Southeast Asian countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam In 2015, the group Billionaire Jack Ma's Alibaba acquired Lazada, and since then Lazada is still owned by the Chinese Alibaba group Lazada is an e-commerce trading platform, providing products in many different industries such as furniture, phones, tablets, fashion, health care products, beauty products, toys and sporting goods With a presence in 6 Southeast Asian countries, Lazada connects a large and diverse region format through technology, logistics and payments capabilities.1

Market share and growth: In the first half of 2023, Lazada Vietnam's revenue

is driven by many different sectors Notably, the beauty care field emerged

as the leading field, generating revenue

of more than 2.2 trillion VND Lazada Vietnam is headquartered in Singapore and operates as one of the leading e-commerce platforms in the country

2 Lazada Việt Nam (2022) Wikipedia Available at: Available Link (Accessed: 09 March 2024)

3 Published by Statista Research Department and 2, N (2023) Lazada Vietnam: Revenue by sector 2023 Statista , Available at: Available link (Accessed: 09 March 2024)

Figure 1 Revenue of Lazada in the first half of 2023, by sector

4

alone, TikTok Shop is the unit with the second largest market share in terms of revenue

in Vietnam, with more than 10,000 billion VND

During the period, Shopee still led with revenue of more than 43,700 billion VND, far ahead of Lazada in third place with 8,700 billion VND Two domestic e-commerce platforms, Tiki and Sendo, ranked 4th and 5th with revenue of 599 billion VND and 29 billion VND, respectively

Based on revenue results, Shopee holds 69% of the market share, TikTok Shop holds 16%, Lazada holds 11% and the remaining 1% belongs to Tiki This is the second quarter that TikTok Shop has maintained a large market share in Vietnam, far surpassing rival Lazada

Previously, the second quarter of 2023 was the first quarter to record TikTok Shop's revenue exceeding Lazada's revenue in the e-commerce market

Figure 2 E-commerce Market share in the second quarter of 2023

41.3 Media presence and visibility of the organization

Lazada is actively active on today's popular social networking platforms such as Facebook, Instagram, and YouTube; Of which, Lazada has gained about 31 million followers on Facebook and about 524 thousand followers on Instagram This is a pretty big one

4 Top+Players+in+Vietnam%E2%80%99s+e-commerce+market (no date a) VietnamCredit Available at: https://vietnamcredit.com.vn/news/top-players- -vietnams-e-commerce-market_15031 (Accessed: 10 March in 2024)

5

Figure 3 Lazada's Facebook March 2024

Figure 4 Instagram of Lazada, March 2024 Lazada also actively deploys livestream activities and sale programs with a variety

of products In particular, the LazRewards program attracted a high amount of interaction with 85,345 interactions (LazRewards is a Lazada promotion where you can collect LazRewards codes and use them as a discount on items across the entire platform)

Below is a ranking of the popularity of e-commerce platforms operating in Vietnam

6

Figure 5 According to the e-commerce newsletter January 2024

You can see that according to the information above, Lazada is ranked 2nd in the rankings with a Total Score of 2 7.9 in December 2023 (Total Score is the sum of attitude score, discussion market share score, interaction score and diffusion level) Meanwhile, Shopee is occupying 119 points, 4 times the popularity of Lazada.5According to CafeF, the majority of e-commerce market shares still belong to long-time players in the industry, of which Lazada ranks 4th in the popularity ranking of websites in 2022 with 16.79 million visits/month, ⅕ compared to Shopee with 84.52 million visits/month.6

5advertisingvietnam.com 2024 Bản tin ngành Thương mại Điện tử tháng 01/2024 | Advertising Vietnam [ONLINE] Available at: https://advertisingvietnam.com/ban-tin-nganh-thuong-mai-dien- -tuthang-012024-p23725 [Accessed 9 March 2024]

6cafef.vn 2024 Chiến trường TMĐT 2022: Lượt truy cập Shopee gấp 5 lần Lazada, tất cả đều lỗ triền miên và nguy cơ mất doanh thu vào tay TikTok Shop | Cafef [ONLINE] Available at: Chiến trường TMĐT 2022: Lượt truy cập Shopee gấp 5 lần Lazada, tất cả đều lỗ triền miên và nguy cơ mất doanh thu vào tay TikTok Shop

Figure 7 Popularity ranking of e-commerce websites Figure 6 Most popular E-commerce sites, 2022

Here are some examples of Lazada's successful marketing campaigns:

- Campaign "11.11 - The biggest shopping festival of the year": This campaign has attracted millions of customers to participate and brought huge revenue to Lazada

- "Lazada Super Party" campaign: This campaign is a combination of entertainment and shopping programs, attracti ng a large number of viewers and increasing brand awareness for Lazada

- "Livestream sales" campaign: Lazada is one of the first e-commerce platforms

to apply livestream sales, and has achieved great success

With previous marketing campaigns as a stepping stone, Lazada is always ready to launch campaigns to attract potential customers and compete with other e-commerce platforms

2 Key marketing communication problem(s) to be solved

Based on recent reports, we have observed that Lazada’s market share in the end of

2023, which has declined by 7% compared to the end of 20227 Upon investigation and review of their recent campaigns, we have identified several issues in marketing communication that they are facing Below are some of the issues they are encountering, which we also intend to address in this plan:

- There is a lack of compelling campaigns, resulting in them being overshadowed

by current competitors like Shopee

- The brand image and color scheme have not been clearly defined, leading to customer confusion

3 Customer analysis

3.1 Primary Research of the target consumer

To investigate the reasons behind the decline in Lazada's revenue market share over the past year (from late 2022 to late 2023), we have created a small survey on Google

7 tapchicongthuong.vn 2023 Thị trường thương mại điện tử quý III/2023: Một ngành hàng đạt doanh thu hơn 8.700 tỷ đồng [ ONLINE ] Available at : https://tapchicongthuong.vn/bai-viet/thi-truong-thuong-mai-dien-tu-quy-iii2023-mot-nganh-hang-dat-doanh-thu-hon-8700- -dong-114369.htmty [Accessed 9 March 2024]

to stop using Lazada Below are the results of the survey

*Part 1: Participant Information

Figure 8 Pie Chart om Survey fr

Figure 9 Pie Chart om Survey frBased on the chart, we can observe that the majority of participants fall within the 18-40 age range (78.9%), which is Lazada's target customer demographic Additionally, 15% of the participants are under 18 years old Out of the 71 participants, 64.8% are female, and 33.8% are male

9

*Part 2: Consumer Behavior

- “ Anh/ chị thường tìm kiếm thông tin sản phẩm qua đâu?”/"Where do you typically search for product information?”

Figure 10 Bar Chart from the Survey Out of the 71 responses, we can observe that the majority of participants search through YouTube (87.3%), followed by Facebook (76.1%), TikTok (66.2%), Google (49.3%), and finally, Instagram (12.7%)

- “Bao lâu thì anh/ chị mua một lần ( tần suất)?”/ "How often do you make a purchase?"

Figure 11 Table of Data in the S urvey

Click to view the entire data

Based on the results, we can see that out of 68 respondents who have used Lazada before, 38 of them only make purchases 1-3 times per month, while only 11 out of 68 make purchases more than 4 times per month, and

19 out of 68 did not specify a frequency With these findings, we can infer that Lazada may be losing appeal among its customers, as the majority only make purchases 1-3 times per month, which is a relatively limited frequency

Based on the data, we can observe the following:

+ 23 out of 68 respondents have spent less than 1 million VND on Lazada since they started using the platform, which is a relatively limited amount

+ 15 out of 68 respondents have spent between 1-3 million VND, which can be considered an average spending amount

+ 18 out of 68 respondents have spent more than 3 million VND on Lazada

+ 25 respondents did not specify their total expenditure

These findings suggest that a significant portion of users (23 out of 68) have limited their spending on Lazada to less than 1 million VND, indicating a potentially low engagement or limited value derived from the platform Additionally, the majority of respondents (38 out of 68) have spent 3 million VND or less, further highlighting the challenge in driving higher customer spending on the platform

on the application, indicating a lack of consistency in product representation

*In summary, through this survey, we can deduce that the primary factor contributing to the decline in market share and revenue for Lazada stems from user attrition Participants ceased utilizing the platform due to dissatisfaction with the user interface, which they perceived as unsuitable and challenging to navigate Additionally,

14

3.3 Customer persona

3.3.1 Age

According to Lazada's report in 2023, in Vietnam:

- 52% of Lazada users belong to the Millennial generation (born from 1981 to 1996)

- 38% of users belong to Generation Z (born from 1997 to 2012)

- 10% of users belong to Generation X (born from 1965 to 1980).8

- Lazada is increasingly attracting younger users

3.3.2 Gender

Female users dominate Lazada, accounting for 60%, compared to 40 % male users.Reasons 1:

- Women tend to shop online more than men According to a Nielsen study, 80%

of Vietnamese women shop online at least once a month, compared to 60% of men

- Lazada focuses on products commonly purchased by women, including fashion, cosmetics, household items, and childcare products

- Lazada frequently organizes promotions and attractive discounts for women However, the number of male Lazada users is rapidly increasing This indicates that Lazada is attracting more and more men to online shopping

3.3.4 Needs and Issues

Each customer segment has different needs, and sellers provide unique solutions based on these needs and issues Therefore, the problems and needs of Lazada users are diverse, and the solutions for consumers involve buying and selling various items to address their specific issues

8 www.lazada.vn 2024 Báo Cáo Tài Chính | Lazada.vn [ONLINE] Available at:

https://www.lazada.vn/products/bao- cao -tai-chinh-i657086761.html [Accessed 3 March 2024]

15

3.4 Customer buying journey

Figure 16 The consumer decision journey | McKinsey, 2024) 9

3.4.1 When Users Have Never Used Lazada Before:

* Trustworthiness:

− Concerns about counterfeit products: Fear of purchasing counterfeit, fake,

or low-quality products is a top issue that makes users hesitant

− Seller credibility: Thoroughly check information and customer reviews before making a purchase to ensure the seller's credibility

− Return and warranty policies: Pay attention to return and warranty policies of products to shop with confidence

* Pricing:

− Price comparison: Compare product prices across various platforms to find the best deals

− Promotions, discounts: Hunt for promotions and discounts to save costs

− Free shipping: Pay attention to free shipping programs to reduce shopping expenses