Tiểu luận are there any marketing strategies that tiki may use to enhance its competitive position against shopee and tiktok in the vietnamese market during the latter half of 2023

a 48,766 Another reason why Tiki is losing money comes from its product placement campaign "Di cùng sao Việt,” which attracted young people but became densely covered, leading to a fee

BO GIAO DUC VA DAO TAO

TRƯỜNG ĐẠI HỌC KINH TẾ THÀNH PHÓ HÒ CHÍ MINH

OOE1G©O PRINCIPLES OF MARKETING

the latter half of 2023?

Giảng viên giáng dạy : TS Lê Thị Hồng Minh

Họ và tên sinh viên — : Nguyễn Võ Minh Khoa

Phạm Thị Thúy Quyên Nguyễn Hữu Tài Nguyễn Vũ Minh Thư

Table of Contents

4.1 Product Brand decision strategy cà sàn nenhihhhhreo 10

4.3 Place/ đdistribution strafegy LH Heo 14

— SITUATIONAL ANALYSIS:

Well-qualified human resources: Tiki has developed

dramatically thanks to 2 excellent managers, Tran

Ngoc Thai Son (CEO) and Ngo Hoang Gia Khanh

(CGO) They have much experience in managing and

developing the firm

High Brand Awareness: Because of its penetration

into the Vietnamese market, Tiki has a high brand

awareness for customers

The relentless loss: Unstable financial situation: The Business Report of Tiki demonstrates its conundrum From 2016 to 2019, Tiki reported annually its deficit of 178 billion VND, 282 billion VND, 756 billion VND, and 324 billion VND respectively

Maintaining inappropriate transaction forms: The form of IP with Tiki trading greatly burdens Tiki's financial situation

Bringing unattractive experiences to digital customers: Tiki has some serious matters like outdated applications with unfriendly UI and bad

UX, lack of vouchers, merchandise usually out of stock, and some other issues

The development of online shopping trends started to

develop gradually In the Vietnamese market,

according to the report of Google, Temasek va Bain

& Company, the scale of E-commerce is valued at 21

billion USD Additionally, the number of digital

customers increase to 8 million in 2021

Policy of the Vietnamese government: Realizing the

potential of E-commerce, the Vietnamese authorities

enacted many policies to enhance E-commerce

development and priorities Decision No 645/QD-

TTg of the Prime Minister dated May 15, 2020,

targeted the support and encouragement of the

advanced implementation of E-commerce into

people’s lives Dire competition: Tiki has meet the dire

competition such as Shopee, Lazada, etc According to the price report on the E-commerce situation, in the early 3 months of 2021, Shopee’s traffic reached 63.7 million, which was much more than Tiki's

Conclusion

To wrap things up, Tiki is struggling with financial issues as well as having some coherent problems including operating some inappropriate transaction forms and bringing bad experiences for their digital customers Those contribute to the continuously serious drawbacks of Tiki Tiki needs to plan effective marketing

strategies to tackle the financial issues, which lay the foundation for the solutions to

other problems

Il MARKETING GOAL

Tiki's marketing strategy aims to reduce losses, increase profitability, and strengthen its market position It focuses on:

e Loss Reduction: Identifying the core causes of losses and implementing corrective actions

e Customer Retention: Improving customer experience, providing exceptional after-sales assistance, and developing customer-centric reward programs

e Brand Reinforcement: creating a distinct identity and communicating its value to customers through consistent messages across all marketing media

In sum, the goal is to restore profitability and fiscal stability by reducing financial losses, while maintaining strong customer relationships through exceptional value and service Hence, Tiki will also strengthen its brand presence in the industry, positioning it for long- term success and sustainable growth

Segmentation | Demographic Psychographic Behavioral Geographic

High Income | Gender: Male | Lifestyles: Usage Occasion: | Vietnam

- Value the high- quality products

- Be willing to pay

for luxury or

high-quality products

premium products Benefits Sought:

- looking for high-

- valued for money

Save money for future Choose budget- friendly activities Personality Traits:

Career-focused Looking for stability

ions:

- Shop for

necessary

- Shop during sales, discount period Benefits Soughts

- valued for money

Vietnam

Income - Save money for necessary

Age: future - Shop during

` The majority is - Choose budget- sales, discount

oe 18 - 24, 45 -54 friendly periods

activities

informal labor Eersonalify Traits: - valued for money

market such as - Career-focused | - affordability

VND) - Save money for necessary

Age: future - Shop during

The majority is - Choose budget- sales, discount

18 - 24 or 45 friendly periods

-54 activities

Benefits Sought:

Occupation: Personality Tratis - valued for money

part-time - Career-focused | -convenience

workers

3.2 Targeting

The average monthly income of Vietnamese workers in the first quarter of 2023 is 7.000.000 VND, not very high compared to the world's average income Therefore, choosing goods with affordable prices, and discounts is always the top priority of the majority of Vietnamese

3.3 Positioning:

The brand name "Tiki" is an abbreviation of the slogan “Tim kiem va Tiet kiem” "Search and Save", which has existed since this e-commerce platform was established in 2010 However, Tiki's slogan has now been changed to “Tot va Nhanh” and “Good and Fast” Tik1's target customers are mainly people between the ages of 25 and 34 who value authentic items and fast, free delivery (as shown in the bar chart)

Đánh giá mức độ ưu tiên (1.U'u tién nhat-4.Khéng ưu tiên)

ma: m2 S5: ‹:

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50

25

The bar chart illustrates elements affecting the purchasing behavior of consumers with stable income

As a result, these are the two most important elements influencing their shopping decisions Tiki has been successful in satisfying these two client demands (picture below)

Specifically, Tiki has launched the TikiNow delivery service that commits to delivering the products at the exact time within the frame of 4 hours, morning or afternoon Along with that is the 111% paying policy if detecting fake goods

Äu¬m

"Ở đâu rẻ hơn, Shopee hoan tiên", while Tiki's large investment in logistics, TikiNow, is

failing due to insufficient high-end users

a

48,766

Another reason why Tiki is losing money comes from its product placement campaign "Di cùng sao Việt,” which attracted young people but became densely covered, leading to a feeling of suffocation.” In contrast, TikTok Shop, launched in April 2022, has a large force

of influencers and online sellers to help attract a large amount of young people As of June

2023, TikTok Shop's popularity on social networks has surpassed Tiki, ranking only behind

Shopee and Lazada

Sonne nợ Teen Brand Mention Sentiment Buzz Audience Scale aa

Score @ Score @ Score @ Score @ - Score @

IV MARKETING TACTICS

4.1 Product/ Brand Decision Strategy

The key differences between Tiki's and Shopee's product strategies

Product Selection Wide and diverse Wide, with a focus on low-

priced items Pricing Competitive, with frequent Low

discounts Delivery Convenient and reliable, Convenient and

with same-day delivery in | user-friendly, with a variety select areas of payment options,

including cash on delivery Innovation Focused on developing Focus on social commerce

innovative product features and making it easy for and services buyers and sellers to

interacts with each other Slogan Short, not popular and Strong PR: “Gi cting co,

pronounced to rhyme”Tot va | mua hét 6 Shopee, Thích Nhanh” shopee, Lướt Shopee”

10

Which product strategy is better depends on the individual shopper's needs Shoppers who are looking for a wide and diverse selection of products, competitive prices, and convenient and reliable delivery may prefer Tiki Shoppers who are looking for a wide selection of products at low prices, a convenient and user-friendly shopping experience, and a focus on social commerce may prefer Shopee

In advance, Tiki doesn't need to offer more items to diversify tts product line Instead, it might improve the things they are already doing well Its delivery service, Tiki Ads, and the level of quality of each product can support Tiki's share and establish its mark in terms of both services and quality

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Despite its superiority in books, Tiki 1s losing the market of clients interested in books Bible book products from Bible Society Vietnam are available on both Tiki Trading and Shopee Mall platforms at the same price and free shipping However, Shopee Mall has more sales than Tiki Trading due to the availability of discount vouchers on Shopee, which allows customers to choose suitable discounts for their orders For example, a book's price on Shopee can be reduced by applying a discount code, resulting 1n a lower price for the book

12

QZG-F 15E3

oil-free fryer Electronics Samsung Galaxy 7.690.000 VND 8.490.000 VND

A54 5G (8GB/128GB)

Niacinamide 10%

+ Zine 1% Canada 30ml

Digital Device | Logitech M220 149.000 VND 230.000 VND

Tiki faces higher costs for managing and operating compared to Shopee and TikTok, leading

to higher prices Furthermore, Shopee and TikTok frequently provide customers with discount codes when purchasing things, whereas Tiki just offers free delivery This has led

to customers shifting to online purchasing on these platforms, causing Tiki to lose customers

and suffer losses

While Tiki only has the product price after the discount written in percentage, Shopee shows the orginal price and the one after sale Therefore, to improve customer experience on the Tiki online platform, Tiki should include the original price with a discount percentage, allowing customers to compare prices easily This would help Tiki retain customers seeing more products available on its platform

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LV1015 phối nút CONG CHUA - SONIA DRES

Tiki is an online retail brand that operates according to the marketplace model Across the country, Tiki has 3 large warehouses located in Ho Chi Minh City and Hanoi

KHO HN Long Bién, HN

kho Nhà Bán quản tồn tại kho đặt hàng hoá và giao hàng hậu mãi

¢ © © © ©

Nha Ban mang

hang qua kho Tiki

Lưu ý- Nha Ban tao phiếu gửi E

hàng trên Seller Center trước

khi nhập Kho Tiki

On the other hand, Shopee and TikTok Shop are intermediaries that help sellers and

customers transact products Sellers manage goods, orders, and packing while Shopee and TikTok Shop list, advertise goods, and collaborate with delivery services

16

Hàng

J&T Express

¬ 7 — Express Your Online Business —

Therefore, to overcome its crisis, Tiki should increase sellers’ control over their products,

such as allowing sellers to package and ship the products themselves Even further, the TikiNow service as it appears to be ineffective and costly so what Tiki needs to do 1s to cut off Tiki should convert their shipping service to a form like Shopee or Tiktok Shop to reduce delivery costs

4.4 Promotion/ IMC strategy

17

4.4.1 Advertising:

Tiki has deployed many forms of advertising including online presences (E- newspaper, social media, TVC, endorsement) and realistic presences (Banners, Events) However, their attempts seem to be ineffective According to Google Trends last year, the interest level of Tiki was significantly lower than Shopee's Specifically, Shopee’s average interest level is 76 units, while Tiki only has 8 units which 1s just higher than Tik Tok Shop ( debuted in 2022), Tik1’s ineffective advertising is one of considerable justification for the loss

of market share leading to the unstable financial situation of Tiki over many years

GIAM DEN

HUYEN THOAI

— TỪ 09.11 - 15.12.2018

NHAN HANG TRONG 2 TIENG

18

be not as attractive as their competition vouchers For example, Tiki’s vouchers are not as valuable as Tikok Shop and Lazada and do have not as many as Shopee Vouchers

4.4.3 Public Relations:

Tiki also organizes many events and social activities like the Tiki Seller

Conference, Tiki di cling sao Viét, and so on But these are not effective

Specifically, according to Google Trends, the average interest level of Tiki events just reached 2 units compared to 4 and 11 units of Shopee and Lazada respectively

Google Trer Trang chủ Khám phá Đang thịnh hành

®_ Tiki đi cùng sao Việt @ Siêu hội tiêu dùng @_ Sinh nhật Lazada T Thêm lượteo sanh

Mức độ quan tâm theo thời gian @ l$, <9

19

4.4.4 Direct Marketing:

Because of the E-commerce standard, Tiki does not have a direct Marketing system

V CONCLUSION

To sum up, Tiki reported a loss of 93 million USD, an increase of 39% compared to 2021

so we supposed that there are some main reasons:

1 Tiki is struggling with financial issues as well as having some coherent problems including operating some inappropriate transaction forms and bringing bad experiences for their digital customers

2 Tiki is losing money from Tiki's product placement campaign "Di cing sao Viét” This campaign was successful at the beginning but after all, it made people feel

"suffocated" every time they listened to Vietnamese music Now, in 2023, this campaign no longer exists on YouTube or other platforms

3 Tuiki's product volume is not as large as Shopee, Lazada, or TIkTok Shop

4 The prices of its products are higher than its competitors

5 Shopee and TikTok frequently provide customers with discount codes when purchasing things, whereas Tiki just offers free delivery

6 Tiki’s vouchers are not as valuable as Tikok Shop and Lazada and do have not as many as Shopee Vouchers

7 The logistic model - FBT Tiki has cost a huge of money to respond to the entire process of product inspection, warehouse operations, packaging and shipping of products,

To help Tiki regain a competitive position against Shopee and Tiktok in the Vietnamese market during the latter half of 2023, we decided to aim at the targeting market is Middle, lower-middle, and low-income and making a marketing strategy with the main idea of reducing Tiki’s losses

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