About Tiki Vn.pdf

I Introduction

About Tiki.vn

Tiki is a young commercial company, which was established in March 2010 by Mr Tran Ngoc Thai Son The first office of Tiki.vn is Son’s garage with the capital about $5000 from Son’smoney (Newman, 2011)

Over the period of 6 years, Tiki.vn has become one of the most famous e-commerce companies inVietnam Beginning with selling books, Tiki expands to 9 sectors as books, fashions, consumer goods, stationary, electronic goods and accessories, mother and baby products and technical equipment (Tiki.vn, n.d.)

Tiki.vn has served more than 800,000 customer with the number of product up to 120,000 In 2013, Tiki was invested by Sumitomo Corporation from Japan after invested by another Japan party, CyberAgent Ventures Fund, in 2012 According to a report in 2013, Sumitomo Corporation holds 30% share of Tiki.vn and CyberAgent Ventures Fund holds 15% (Lê, 2013) Tiki.vn is called “Vietnam Amazon”; Tiki.vn also mainly focus on the B2C customers as Amazon does

II The Internet Marketing Environment 2.1 Micro-Environment

2.1.1 Suppliers

Tiki.vn has a variety of products ranges, thus Tiki.vn has a large number of suppliers In each range of product, Tiki.vn always chooses a charismatic suppliers to ensure that every product is in good quantification when customer receive them

2.1.2 Competitors

Because of the large range of products, Tiki.vn has a lot of competitors in e-commerce field; the competitors provide nearly the same types of product as Tiki.vn does Lazada.vn, sieumua.vn, 123mua.vn, chotot.com, … are the typical example For instance, books are the most famous product of Tiki.vn from the beginning In this field, vinabook.com, fahasa.com, nhanvan.vn, etc are the big competitors of Tiki.vn

Fahasa.com is one of the greatest competitors, they have not only e-commerce website but also a chain of bookstore with 75 bookstores across Vietnam Fahasa.com offers thousands titles as well as related products like movies, software, toy,…

Picture 2.1: Screenshot of Fahasa.com website (Fahasa.com, n.d.) 2.1.3 Intermediaries

Tiki.vn has their own service to deliver products to customer This service also help customer to install product such as TV, refrigerator, air conditioner, and so on

Tiki.vn knows that shopping online is still a new trend for the mass of customer; and customers do not want to wait for a few days to receive product; Vietnamese customers always want to get their products as quick as possible To ensure customers can receive their products quickly, Tiki.vn offer 24h Delivery Service which deliver product to customers within 24 hours since customer orders in website Tiki.vn (Tiki.vn, 2015)

Picture 2.2: Tiki 24h Delivery Service screenshot on website (Tiki.vn, 2015) –

2.1.4 Customers

Defining market segmentation by demographic, Tiki.vn target customers are people from 17-32 ’syears old in both genders, they use the Internet regularly by using smart devices and do have online shopping behavior They are students, white collar staffs, wife houses, … across Vietnam Tiki.vn’s target customers live mostly in vast cities as Ho Chi Minh, Ha Noi, Da Nang, Hue,… For more specific in book area, Tiki.vn’s target customers are people who keen on reading books for studying or relaxing

The Vietnam economy witnesses a high increase by 6.5% in GDP in 2015 and the success in bargaining joining TPP has positive effects on the economy (TTXVN, 2015) Increasing economy take advantages for all businesses in Vietnam Tiki.vn is not an exception, the more income the residents have, the more expenditure they spend on Revenue of e-commerce in Vietnam in 2015 is nearly 4 billion dollars

Legal Constraints

In the developed countries, the governments have complete laws for e-commerce But in Vietnam, the law system has many mistakes Especially in tax, if a company want to run their own e-commerce business in Vietnam, they have to register to the authority to tax to Vietnam But some companies use mistakes from law system to deny tax responsibility to Vietnam Government

Cultural Factors

Online shopping has appeared in the world for years; especially people in developed countries, they get used to buying products in the Internet because online shopping help to save time and money, it is so convenience

In Vietnam, online shopping just appear in recent years, Vietnamese like buying products in traditional markets or stores because they want to see a real product before buying it It is a traditional and culture aspect in Vietnam However, the younger generation see conveniences of online shopping and it began a trend in theses generation In book case, if a student want to buy a book, he will google it and choose website to buy it And Tiki.vn is a wise choice for them with thousands of book title with reduction

2.2.2 Technology

Innovation

According to figure from Ministry of Information and Communications, 52% of Vietnam resident use Internet, mobile internet has 32.68 million users (Văn, 2015) This figure means e-commerce businesses have more than 45 million potential customers Developing in technology is an advantage to develop e-commerce in Vietnam Vietnamese are able to search to buy anything in Google because of the spread of Internet Tiki.vn offers a friendly website for any customer from the young to the old They also have mobile apps for Android devices and iOs

devices, customers just open the app and they can shopping immediately

Picture 2.3: Tiki apps

Trend

As mentioned, online shopping has become a new trend in recent years The customer using commerce service increase every year People can see advantages of e-commerce and tend to use it more

e-2.2.3 Society

Public Opinion

E-commerce is accepted step by step in general public, people cannot deny benefits that commerce bring out to the public as providing job for thousands of people in its chain, offering convenience on buying, changing their buying behaviors,…

e-Moral Constraints

By contrast, people still afraid of buying products online, because a small number of sellers who ignore business ethic to achieve as much profit as possible by selling products with low quality There are many cases in Vietnam, customer receives products which is quite different from the one sold in the Internet This makes bad precedents, customers have doubt in online shopping

Ethical

Any organization has their own rules in order to control and manage efficiently The e-commerce in the world has their own law, and Vietnam is no exception Generally, the e-commerce law bases on 3 main factors to ensure the trust and the explicitness; because in e-commerce all trades are done in the virtual world means buyers and sellers cannot see each other’s 3 main factors in e-commerce are:

- Transparency: on the seller’s website need to publish all information about the terms of sale and the buyer should also carefully read this information before deciding to buy - Reliability: include the reliability of the published information (the seller should endeavor

to report honestly and update this information regularly), the reliability of electronic transactions (sellers must ensure the use of secure communication technologies), the reliability of the system operation (guaranteed not to cause serious errors) and the reliability of authentication problems (such as electronic signatures, electronic contract) - Confidentiality and Privacy: information on the customers, especially the important

information like credit cards, email, telephone etc must be kept confidential and respect, which means the sellers are not allowed to store and the sale or illegal use of this information

III 7Ps in Internet Marketing 3.1 Product:

Tiki.vn is a prestigious company in the provision of genuine products Products from Tiki.vn is always ensured about quality Customers of Tiki.vn feel secure when they choose product from Tiki.vn website or app because the pictures are similar to real products, Tiki.vn does not apply many photo effects on pictures published on website or app

Picture 3.1: The image of product on Tiki.vn website (left) and the real product (right) Tiki.vn’s suppliers are famous companies in variety of products as FPT, Asus Vietnam, etc Tiki.vn offers products from famous brands as Apple, Samsung, Asus, Toshiba, LG, Kim Dong Publisher, Nhanvan Publisher, Bitis, and so forth Customers can find easily on Tiki.vn any product from smartphone, milk, cosmetic, book,… Customers can buy product in any time, any occasion in a year

Picture 3.2: The variety of products on Tiki.vn

Moreover, Tiki.vn also has a service called Tiki Care which helps customers in any available cases by hotline 19006035 (Tiki.vn, n.d.) After finishing ordering product from website, Tiki.vn’s operator will make a phone call to customer to confirm the order Then, Tiki.vn has After Sale Service to make sure that customers are satisfied by products from Tiki.vn Furthermore, Warranty terms are showed in any product, Tiki.vn makes it clear and simple to customers

Picture 3.3: Warranty Terms are showed in the right hand in Iphone 6 Plus on Tiki.vn website

Customers can find available on stock condition of any product If a product is not available at this time, Tiki.vn will offer a button which notify customer when this product is available The customer demand of buying product just appear in some moments, it can be forgotten easily if this demand is not satisfied Tiki.vn will remind customer by sending notification when the product is on stock, this notification will raise the customer demand again It might help Tiki.vn sell this product

3.2 Promotion

Tiki.vn is so famous for book, they join in annual book fair in Ho Chi Minh City to reach their customers, particularly the young Tiki.vn also invites famous authors as Anh Khang, Hamlet Trương, Iris Cao, Tuệ Nghi, ,who are influencers to their target customers, to autograph copies to customers In Tiki.vn’s area in book fair, they hold many mini games to attract customers

Picture 3.4: Exchanges and autograph show in Ho Chi Minh City Book Fair 2016 (Tiki.vn, 2016)

In order to encourage customer to buy products, Tiki.vn offer a promotion that with any product bought, customer will be received a number of points called Tiki Xu which will be accumulated to exchange to money Customers are capable of using Tiki Xu to discount their receipts

Because of a B2C business, Tiki.vn do not put direct marketing as their main marketing programs Customer can see Tiki.vn in most famous electronic newspapers as a sponsor in many kinds of event Brand Tiki.vn is the “hot” key words in Vietnam whenever a young want to buy a book online

3.3 Price

Tiki.vn is an e-commerce shop with variety of product so that they have a wide range of price as well Customers can choose range of price that they want easily in any kinds of product customers looking for The most important aspect that influence customer buying is that Tiki.vn always has reduction in any products they have This sale promotion has positive effect on customer who want to purchase product in the cheapest price

Customers have change to buy product in high price without purchase a large amount of money at once Tiki.vn corporate with HSBC, ANZ, Sacombank, Shinhanbank, Citibank, VPBank, Eximbank,

SeABank (Tiki.vn, 2015) bring out program “0% interest in installment purchase” for customer using credit card of these banks Otherwise, Tiki.vn has COD (Cash On Delivery) buying method, it very convenient for customer when buying product from Tiki.vn Customer just pay money when they receive product In addition, Tiki.vn always give a customer a small gift when they buy books in Tiki.vn, it usually a bookmark, a small and useful gift for book reader

Picture 3.5: A bookmark gift from Tiki.vn added in a book

3.4 Place

As mentioned above, Tiki.vn has variety of products which suit for most of customers’ demands so Tiki.vn does not have segmented channel Tiki 24h Delivery Service and COD service which mentioned are the good features of Tiki.vn which is mainly focus on B2C business Another justification should be added into account is that Tiki support team will help customer to install products as TV, refrigerator … when they deliver them to customer

3.5 People

The marketing and sale department of Tiki.vn have creative people to create campaigns which help increase sale They have to plan campaigns for each special occasions in a year and all year around For example, the event as annual book fair which has many small events, Gi t Cô H n cùng Tiki ự ồ Then customers can see that Tiki.vn always has reduction in any product, however the amount of reduction change depending on factors that decided by marketing and sale department

Not only focus on B2C business, Tiki.vn also do B2B business; thus Tiki.vn staffs have great contribution for the company Especially in B2C business, customers communicate directly with operator and shipper staffs, they are important joint in Tiki.vn because they know, receive and help to solve customers’ problems if they happen

If a person want to work in Tiki.vn, he need to follow these steps: applying your job application, interviews, discussing oriented development, discussing with Human Resource Department If the candidate goes through, he has chance to work in friendly and creative environment, be trained, experience and develop your ability perfectly and achieve a competed salary and remuneration of course (Tiki.vn, n.d.)

3.6 Process

With any e-commerce, customers are always the main priority and satisfying customers’ demands are the most vital task Tiki.vn collects all customers’ demand information from keywords searched by customers to find out which range of product customers are interested in Developing technology is a useful tool to collect information and satisfy customers’ demands These information is very helpful for R&D Department to research customers’ demand, this department also takes responsibility to research market share, competitors,… for future plan Then, Tiki.vn

change their design on both website and app in special occasions to attract customer They also upgrade their system to ensure that their capacity can respond to mass of customers at one time

3.7 Physical Evidence

The main color in Tiki.vn’s brand identifier is blue, and their Brand Identifier are logo Tiki and friendly staffs Moreover, Tiki.vn has a special product packaging which makes them be different compare to others competitors When customer buy product on Tiki.vn, if it is just only a book, they will receive a container for their product This container can be recycled, it is very friendly to the environment as well Tiki.vn has friendly website and app that is very friendly to any customers

Picture 3.6: Tiki.vn’s packaging product