shopees marketing strategies to achieve their goal in vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL tt AN ANALYSIS OF THE EFFECTIVENESS OF MARKETING MIX IN DEVELOPING NEW PRODUCT: _—= es = =1 Sản, SHOPEE LO SHOPEE’S MARKETING

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL

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AN ANALYSIS OF THE EFFECTIVENESS OF MARKETING MIX IN

DEVELOPING NEW PRODUCT:

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Sản, SHOPEE LO

SHOPEE’S MARKETING STRATEGIES TO ACHIEVE THEIR GOAL IN

VIETNAM

by INS 2003 6

Group: 10 Student’s full name: Phạm Trung Dũng,

Vũ Minh Tuấn, Nguyễn Đức Dũng, Nguyễn Hải Yến, Nguyễn Minh Tùng

Hanoi, May 07", 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

KEYWORDS Marketing Strategy, Marketing mix (4Ps), Ecommerce, Market segmentation, Targeted

customer

TABLE OF CONTENTS

KEYWORDS 1

2.2, METHODOLOGY,ANALYSIS, FINDING & RECOMMENDATIONS 7

2.1 Theories of learning 7 2.1.1 Market con a 7

2.1.2 6c na šsšn 7

PP Na an 7

2.1.4 Marketing mix (4P$) ĩc c2 seere Error! Bookmark not defined 2.2 Methodology 8 2.2.1 PULPOSE oo 8

Phi - 8

2.2.3, ROSOULCO ooo 5 A 8

2.3 Analysis Shopee’s 4Ps Marketing Strategy 8 2.3.1 Product ố 8

P.0 9

PIN uy a :5:54AẼ 9

° Noo on na 10

2.4, Finding 1 PNð,/ on 12

PC nha 12

2.5 Recommendations 13 2.5.1 Customer stimulus pròTams - Error! Bookmark not defined 2.5.2 Increase the trust in the eyes or unfaim1]1ar DUW€TS - - c scc s2 sssssrses 14 2.5 Appendix 13 REFERENCES 177

1 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 e- commerce 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

Entertainment a @) 6 ©œ e

Figure 1 Shopee’s product categories

Type 1 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 1s 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

2 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

e Segmenting consumer markets

e Segmenting business markets

e Segmenting international markets

e 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:

1 functionality

2 brand

3 packaging

4 services

® price

1 list price

2 discounts

3 bundling

4 credite term

® promotion

1 advertising

2 sales force

3 publicity

4 sales promotion

e place

1 channel

2 inventory

3 logistics

4 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 1n 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

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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

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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-to- use, quick links to each Shopee feature, with user-centric design combined with an intuitive interface that matches the experience of both buyers and sellers nght 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

* 9, Ludt Shopee

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 1s 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

MUA SAM HET MINH

GIANH ALBUM

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 3 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 2 million orders But by 2020, the number has reached 5 million orders This must be a clear change in the buying habits of Vietnamese consumers in the first 3 months of the year

Consumer age

18-24 25-34

@ >34

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

m Series1

15%

10%

5%

Smartphone Smartphone 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% ofusers 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