personal essay module research on a business case for tiktok

TikTok Shop can bring a lot of potential to businesses, including: ● Reach more potential customers: TikTok is a platform with a huge user base, especially among young people.. ● Product

HANOI NATIONAL UNIVERSITY

SCHOOL OF MANAGEMENT AND BUSINESS

PERSONAL ESSAY MODULE

CLASS : MAC2.01

HP NAME : … Digital Marketing………

HP CODE : HSB3024

LECTURER : Dao Tuan Duc

STUDENT : Phung Bao Chau-21080110

HANOI 2023

TABLE OF CONTENT

I Introduction……….……3

II Potentials and risks of Tiktok………4

1 The potential of Tiktok………4

2 Risk of Tiktok……… 4

3 Policy Potential………

6 4 Policy Risk……… 6

III Operation OCOP……… ……… …7

IV Businesses in Vietnam……… ………10

V Conclusion……… 12

Research on a Business case for Tiktok

Topic: You work for a traditional news organization that owns print and broadcast businesses

such as Radio & TV that is based in Vietnam Senior management has tasked you to research and develop a business case for the domestic market (i.e: Vietnamese audience ) to determine if the company should ( or should not ) use Tiktok Justify why, or why not, and propose how the company should use it

Note: if your assessment is that Tiktok is not suitable for the organization, provide sufficient

evidence ( for justification ) including a recommendation for an alternative platform and how the organization should use it ( i.e: Facebook, Instagram, Threads, X, Linkedin, Snapchat, )

I.Introduction

In the ever-evolving landscape of media consumption, traditional news organizations face a

critical challenge: how to remain relevant and engage younger audiences who are

increasingly turning to digital platforms for their news In Vietnam, where TikTok boasts a massive and active user base, particularly among Gen Z and Millennials, the question of whether a traditional news organization should leverage this platform becomes particularly compelling This report aims to provide a comprehensive business case for the potential use

of TikTok by a Vietnamese news organization, exploring both the opportunities and challenges associated with this approach The report begins by analyzing the unique characteristics of the Vietnamese audience on TikTok, highlighting their preferences and consumption habits It then examines the potential benefits that TikTok presents for the news organization, including increased audience reach, enhanced brand awareness, and content diversification However, the report also acknowledges the inherent risks and challenges of utilizing TikTok for news delivery, emphasizing the importance of maintaining journalistic integrity, editorial control, and brand reputation To address these challenges and maximize the potential benefits, the report proposes a multifaceted approach for utilizing TikTok This includes establishing a dedicated team with expertise in both TikTok content creation and journalistic oversight, focusing on short-form video formats that cater to the Vietnamese audience, and diversifying content formats to include explainer videos, interviews, and interactive polls Additionally, it emphasizes the importance of collaborating with relevant Vietnamese TikTok influencers to leverage their reach and trust, while maintaining a

management with a clear understanding of the potential for utilizing TikTok as a strategic tool for engaging with younger audiences in Vietnam By weighing the potential benefits against the associated risks and implementing the proposed approach, the news organization can make an informed decision about whether TikTok can be a valuable addition to its existing media landscape

II Potentials and risks of Tiktok

1 The potential of Tiktok Shop

TikTok Shop is the online shopping feature integrated on the TikTok platform This feature allows users to discover and shop products directly from brands and retailers

on TikTok

TikTok Shop can bring a lot of potential to businesses, including:

● Reach more potential customers: TikTok is a platform with a huge user base, especially among young people This gives businesses the opportunity to reach out

to more potential customers

● Drive sales: TikTok Shop helps businesses reach customers quickly and

efficiently This can help businesses boost sales

● Increase brand awareness: TikTok is a platform with the ability to spread

information strongly This can help businesses increase brand awareness and build good relationships with customers

Here are some examples of how businesses can leverage TikTok Shop to achieve their business goals:

● Increase brand awareness: Businesses can create short videos introducing their products and services These videos should be creatively designed and engaging to grab users' attention

● Drive sales: Businesses can run promotions and discounts on TikTok Shop These programs can help businesses attract new customers and motivate them to shop

● Create customer communities: Businesses can create groups or communities on TikTok to connect with customers These communities can help businesses build good relationships with customers and gather feedback from them

To take full advantage of the potential of TikTok Shop, businesses need to have a specific implementation plan that suits their actual situation Businesses need to invest in creating quality and creative content, and use supporting tools to manage and analyze the effectiveness of campaigns

2 Risks of Tiktok Shop

TikTok Shop is an emerging e-commerce platform that offers a lot of potential for businesses However, this platform also carries risks that businesses should be aware of

● Product quality risk: Businesses may sell products that are of poor quality or not

as described on TikTok Shop This can lead to customer frustration and affect the reputation of the business

To minimize this risk, businesses need to ensure the quality of their products by:

* Check product quality before selling* Provide accurate product information on TikTok Shop* Comply with the provisions of the law on protecting consumers' interests

● Fraud and fraud risks: Businesses can be used to commit fraud and deception, such as selling counterfeit goods, selling shoddy goods, or failing to deliver This can lead to losses for customers and businesses

To mitigate this risk, businesses should:

* Comply with the provisions of the law on e-commerce

* Develop a clear and transparent sales policy

* Integrate security measures to prevent fraud and phishing

● Information security risk: Businesses may be exposed to customer information, such as personal information, payment information This can be dangerous for customers and businesses

To mitigate this risk, businesses should:

* Comply with the provisions of the law on personal data protection

* Use information security solutions to protect customer information

● Competition risk: TikTok Shop is a highly competitive market Businesses need to have the right strategy to compete with other businesses

To mitigate this risk, businesses should:

* Market research to understand customer needs

* Build an effective marketing strategy

* Provide high quality products and services

In addition, businesses also need to be aware of some other risks such as:

● Payment risk: Businesses may face risks during the payment process, such as customers not paying, customers paying counterfeit money

● Shipping risks: Businesses may encounter risks during transportation, such as lost

or damaged goods

Risk of complaints: Enterprises may encounter complaints from customers about the quality of products and delivery services, ,

To mitigate these risks, businesses need to have a plan to deploy TikTok Shop

methodically and be well prepared

3 Policy Potential

● Link agricultural products in local regions: This policy helps businesses access the supply of high-quality, reasonably priced agricultural products from local regions This helps businesses improve the quality of products and services, meeting the increasing needs of consumers

● Guide farmers to sell on TikTok: This policy helps businesses train and support farmers to sell on TikTok This helps businesses expand the market, reach more potential customers

● Digital MKT: This policy helps businesses build and implement marketing campaigns

on digital platforms, including TikTok This helps businesses increase brand awareness, reach more potential customers and drive sales

Platform design to meet user needs

● User-friendly platform: The platform is designed to be user-friendly which will make

it easy for users to use and find information This helps businesses increase user experience, attract and retain customers

● Platform to meet user needs: A platform designed to meet user needs will help businesses provide users with the information and services they need This helps businesses meet the needs of users, build good relationships with customers

In summary, the potential that policy and platform design that meet user needs can bring

to businesses include:

● Improve the quality of products and services

● Expand the market, reach more potential customers

● Increase brand awareness

● Drive sales

● Increase user experience

● Build good relationships with customers

To make the most of these potentials, businesses need to have a specific implementation plan and suitable to their actual situation

4 Policy Risks

Risks of policies linking agricultural products, regions and localities;

● Risks of agricultural product quality: Enterprises can associate with unreputable suppliers of agricultural products, providing poor quality products This can lead to customer frustration and affect the reputation of the business

● Price risk: Businesses may have to pay higher prices for associated agricultural products, leading to higher costs

Management risks: Enterprises may face difficulties in managing agricultural product suppliers, ensuring the quality and quantity of products supplied

To mitigate these risks, businesses should:

● Conduct a thorough survey and evaluation of agricultural suppliers before linking

● Clearly agree on the quality, price and terms of cooperation with suppliers of agricultural products

● Develop an effective management system to monitor the activities of agricultural suppliers

Risks of the policy instructing farmers to sell on TikTok

● Content quality risk: Content that guides farmers to sell on TikTok may not be suitable for users, resulting in low efficiency

● Cost risk: Businesses may have high costs for training and supporting farmers to sell

on TikTok

● Performance risks: Businesses may have difficulty evaluating the effectiveness of programs to guide farmers to sell on TikTok

To mitigate these risks, businesses should:

● Thoroughly survey and evaluate the needs and abilities of farmers before

implementing sales guidance programs on TikTok

● Build quality instructional content, suitable for users

● Take advantage of technology tools and solutions to help farmers sell on TikTok

● Evaluate the effectiveness of sales guidance programs on TikTok on a regular basis Risks of digital MKT policy

● Cost risk: Businesses may have to pay high costs for digital MKT activities

● Efficiency risks: Businesses may face difficulties in evaluating the effectiveness of digital MKT activities

● Legal risk: Enterprises may face legal risks if they violate regulations on advertising, protecting consumers' interests,

To mitigate these risks, businesses should:

● Develop a specific digital MKT plan, in accordance with the goals and budget of the business

● Take advantage of effective digital MKT tools and solutions

● Monitor and evaluate the effectiveness of digital MKT activities on a regular basis Risks of designing platforms that meet user needs

● Risk of lack of creativity: The platform may lack creativity, not attract users

● Risk of lack of convenience: The platform can be inconvenient, difficult to use

● Risk of lack of security: The platform may not secure user information

To mitigate these risks, businesses should:

● Conduct market research to understand user needs

● Recruit an experienced and specialized design and development team

● Test and evaluate the platform regularly

In short, businesses need to be carefully prepared and have a specific

implementation plan to minimize risks when implementing policies and designing platforms to meet user needs

III Operation OCOP

In April 2023, TikTok officially and the Vietnam Agricultural Trade Promotion Center

(Agritrade, also abbreviated as Agritrade), under the Ministry of Agriculture and Rural Development, signed a cooperation agreement to improve the digital transformation capacity

of entities whose products are certified by the program "One product per commune" (OCOP)

favorable conditions for the development of agricultural product consumption in Vietnam As part of this partnership, TikTok will launch the OCOP Market series Livestreamed on TikTok Shop every week, the event will be an opportunity to promote and sell online regional specialties and products produced by local SMEs Through this project, TikTok aims to improve the livelihoods of 20,000 local farmers, people in handicraft villages and small businesses spread across Vietnam's 63 provinces, while contributing to the preservation of local traditional culture and promoting tourism across regions

OCOP

Referring to the importance of technology application in agricultural product consumption

at the seminar, Mr Nguyen Nguyen Phuong, Deputy Director of Ho Chi Minh City Department of Industry and Trade HCM shared: "As a spearhead economic center of the

country, Ho Chi Minh City HCMC gathers a variety of business units and commodities from across the country, including agricultural products We especially appreciate the efforts of the parties in cooperating, promoting capacity building training and digital transformation of thinking for agricultural sales entities Through the program, hundreds of OCOP entities and agricultural sellers have the opportunity to access technology and promote agricultural products on digital platforms HCMC HCMC will continue to work closely with the Agricultural Trade Promotion Center, TikTok and related units to promote activities to support digital transformation and digital trade promotion for OCOP products in particular and the agricultural industry in general."

On October 21, 2023, TikTok cooperated with the Agricultural Trade Promotion Center under the Ministry of Agriculture and Rural Development to organize the event "OCOP Market - Campaign to promote specialty agricultural products" in Can Gio The series of activities took place over 03 days from October 19 - 21 with diverse contents, creating opportunities for attendees to experience the livestream session of OCOP Market Ho Chi Minh City, and discuss in the seminar "Finding breakthrough keys for OCOP e-commerce" This activity in Can Gio is also the summation of 06 months of the OCOP Market journey implemented by TikTok in collaboration with the MOLISA - Ministry of Agriculture and Rural Development and the Rural Youth Department - Central Union in Vietnam Starting the OCOP bus trip from 04/2023 with the goal of expanding output for local specialties and improving digital capacity for OCOP entities, up to now, the operation has spread across 14 provinces and cities from Bac Kan, Son La, Bac Giang, Ha Tinh, Lam Dong, Dong Thap, Can Gio (HCMC) will continue to expand and further enhance the scale of the program in the coming period The program has created added value for OCOP products, contributing to positive impacts on the local economy and the agricultural sector This success comes from the joint efforts of the Government, businesses and social organizations towards building new rural areas in the period of 2021 - 2025 under the Government's policy

Operation OCOP

As of Q4/2023, there have been more than 800 LIVE sessions with the OCOP Market logo conducted throughout the past 6 months, bringing in revenue of more than VND 100 billion for the OCOP industry With a large scale of investment and a regular weekly frequency, TikTok has connected with more than 500 reputable creators and sellers to bring OCOP products closer to the community #OCOP hashtag is also constantly growing with over 850 million views as of now

With a large scale of investment and a regular weekly frequency, TikTok has connected with more than 500 reputable creators and sellers to bring OCOP products closer to the community, promote product trade connections, thereby contributing to spreading regional cultural values #OCOP hashtag is also constantly growing with over 850 million views as of now These positive results are also recognized from support courses, training to improve

Business creative advertising solution set organized by TikTok to more than 3,000 sellers from more than 30 provinces, cities nationwide

Some outstanding livestream markets include Ba Be zucchini - Bac Can, Luc Ngan - Bac Giang lychee, Pan Kieu plum - Ma Son La River longan, Agricultural products in clouds (Macca, Durian) - Lam Dong Livestream via TikTok to sell agricultural products, OCOP earned 100 billion VND

OCOP has conducted 800 livestream sessions selling agricultural products via its TikTok channel

Each agricultural product needs to be transparent throughout the production process Binh Dinh applies a series of technologies in agriculture

The power of artificial intelligence in predicting agricultural productivity

On 21/10, at the event "OCOP Market - Campaign to promote specialty agricultural products" in Can Gio, TikTok Vietnam and the Agricultural Trade Promotion Center under the Ministry of Agriculture and Rural Development summarized 6 months of the OCOP Market journey

As of Q4/2023, there have been more than 800 LIVE sessions with the OCOP Market logo conducted throughout the past 6 months, attracting more than 300 million views and bringing in revenue of more than VND 100 billion for the OCOP industry

Starting from 04/2023, OCOP Market is a combination of the Agricultural Trade Promotion Center (Ministry of Agriculture and Rural Development) and TikTok with the goal of improving the digital transformation capacity of entities whose products have achieved the certification of the program "One product per commune" (OCOP) on the e-commerce platform, at the same time, the connection creates advantages and favorable conditions for the development of agricultural product consumption in Vietnam

A potential direction for Vietnamese agricultural products

With a large scale of investment and a regular weekly frequency, TikTok has connected with more than 500 reputable creators and sellers to bring OCOP products closer to the community, promote product trade connections, thereby contributing to spreading regional cultural values #OCOP hashtag is also constantly growing with over 850 million views as of now These positive results are also recognized from support courses, training to improve digital skills in content production, promotion and marketing, introducing the TikTok for Business creative advertising solution set organized by TikTok to more than 3,000 sellers from more than 30 provinces, cities nationwide

Some outstanding livestream markets include Ba Be zucchini - Bac Can, Luc Ngan - Bac Giang lychee, Pan Kieu plum - Ma Son La River longan, Agricultural products in clouds (Macca, Durian) - Lam Dong

Mr Nguyen Nguyen Phuong, Deputy Director of Ho Chi Minh City Department of Industry and Trade shared: "Through the program, hundreds of OCOP entities and agricultural sellers have the opportunity to access technology and promote agricultural products on digital platforms

Talking about the journey of OCOP Fair Market, Mr Nguyen Lam Thanh, Representative of TikTok Vietnam said: "We will continue to take advantage of the existing strengths of the user community to support OCOP entities to reach diverse potential customers, digitize business activities and promote brands, contributing to improving business results for business people and diversifying output for Vietnamese agriculture and specialties" Miracles are possible

through e-commerce Accordingly, OCOP products promoted on Tiktok into the ASEAN and Chinese markets

The cooperation with social networks plays an important role to help solve long-term problems for the field of agricultural production and consumption At the same time, cooperation contributes to consolidating and realizing the goals and orientations of the National Digital Transformation Program to 2025, oriented to 2030

As a specific example, when shaking hands with Tiktoker to sell agricultural products, Can Gio farmers' revenue increased by 30% Ms Nguyen Thi Bach Tuyet, owner of Ngoc Long salt production facility, Thien Lieng island hamlet, Thanh An commune, Can Gio district, said that the increase in e-commerce platforms has helped local products reach more customers than before As a result, sales increase significantly by 10-30% depending on the item In particular, this supports farmers and households to get acquainted with the ability to deploy sales on e-commerce infrastructure systems

OCOP campaign on tiktok

IV Businesses in Vietnam

1 About the business

Nerman holds the prestigious title of being the top men-only health and beauty brand in Vietnam Its purpose is to simplify the skincare routine for men and boost their confidence

in their looks Nerman's mission is to provide all-in-one product suites that cater to your every need, ensuring convenience throughout your journey towards true beauty This accomplishment speaks volumes about the brand's commitment and success Top 1 Health

& Personal Care category (September 2022) – Join Shark Tank Vietnam, aired episode 3 – season 5 with impressive fundraising – Top 10 Beauty categories on Shopee (February 2022) – Marvel Collection, in collaboration with Cooperate, is set to be launched in November 2022 This campaign, which has been named the top brand in the Health & Personal Care category, has earned the prestigious title of "Brand of the Year in

Healthcare" at the Tiktok Summit 2023 held in March 2023 After success on the e-commerce floor, Nerman continues to distribute to more than 700+ retailers nationwide - Doan Van Hau (Vietnam national team player) is Nerman's first Brand ambassador Objectives

Nerman, a renowned brand for Men's Health & Beauty in Vietnam, is dedicated to enhancing its sales and capturing a larger portion of the market Their product range includes perfumes, body lotions, and shower gels The vision of the brand extends beyond Vietnam, as they aspire to penetrate the Southeast Asian market by elevating their sales and expanding their presence in various regions In a world brimming with numerous online platforms, Nerman is determined to concentrate on a solitary platform that not only attracts new customers but also provides them with a smooth purchasing experience The company holds the belief that customers are confronted with an excessive number of diverse channels and platforms, which in turn diminishes conversion effectiveness, tarnishes the brand's reputation, and creates obstacles for them to accurately evaluate user behavior In light of the

introduction of TikTok in Vietnam and throughout Southeast Asia as a whole, Nerman perceived this platform as a chance to expand his customer base while establishing a