marketing plan shopee

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Name: Phạm Thị Mai ThảoMssv: Da180022

A. INTRODUCTION

 Shopee is an e-commerce platform headquartered in Singapore and owned by Sea Limited (formerly known as Garena), which also owns brands such as Garena, Foody,Now, and Airpay. Shopee was established in 2015 and has expanded to a total of seven Asian countries, including Singapore, Malaysia, Thailand, Taiwan, Indonesia, Vietnam, and the Philippines. The founder of Shopee is billionaire Forrest Li, who is known for competing with Alibaba.

 A distinctive feature of Shopee is that it offers numerous promotional benefits to customers. Customers often receive various advantages when shopping on Shopee, such as:

However, as of December 31, 2019, Shopee had a loss of more than 2,400 billion VND.

 In 2020, Shopee's revenue exceeded 2,300 billion VND. By the end of 2020, Shopee'stotal assets reached over 3,400 billion VND, an increase of nearly 1,800 billion VND compared to 2019.

 In 2021, Shopee Vietnam's net revenue was nearly 5,700 billion VND, almost 2.5 times the figure of 2020 and 7 times that of 2019.

 In 2019, Shopee recorded a loss of more than 2,400 billion VND, in 2020 it was 1,600 billion VND and in 2021 it was nearly 800 billion VND. As of December 31, 2021, Shopee Vietnam's cumulative loss had reached over 7,500 billion VND. By the end of 2021, the company's equity was negative by more than 2,200 billion VND.

B. MARKETING PLAN

1. Marketing strategies

• Brand awareness and reach: Shopee heavily invests in online advertising and media to

reach its target customers and build brand awareness. Online advertising campaigns and advertising on social media platforms are used to enhance visibility and attract users.

• Special promotions and deals: Shopee regularly organizes promotional events, discounts,

and special offers to attract customers. These may include product discounts, free shipping, discount vouchers, and major online shopping events such as Online Shopping Day.

• Community building and user interaction: Shopee creates a vibrant online community

where users can share shopping experiences, review products, and interact with each other. Shopee also organizes interactive activities such as games, contests, and online events to stimulate engagement.

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• Partnerships and collaborations: Shopee collaborates with sellers, brands, and other partners to offer customers a diverse and quality product portfolio. Combo packages, exclusive deals, and exclusive sales are also built to differentiate and attract customers.• Omnichannel shopping experience: Shopee ensures that users have a convenient and flexible shopping experience through mobile applications and websites. Shopee provides user-friendly interfaces, advanced search features, and simple payment processes to enhance convenience for users.

• Quality customer service: Shopee places emphasis on providing high-quality customer

service. Shopee's customer support team is ready to assist and resolve issues related to orders,deliveries, and returns. This helps build trust and loyalty from customers.

• Technological innovation: Shopee continuously invests in technology to improve the user

experience. Features such as AI integration, quick search, and product recommendations are developed to help users easily find and shop for products.

2. Target customer

• Online shoppers: Shopee targets consumers who have a desire for online shopping. This is a diverse customer group, including both men and women, ranging in age from children to older adults, and from urban to rural areas.

• Mobile users: Shopee focuses on mobile users because their mobile smartphones and tablets.• Value-conscious consumers: Shopee aims at consumers who are interested in value and deals. Shopee regularly organizes promotional events, discounts, and special offers to attract customers who seek cost-effective shopping.

• Social media users: Shopee leverages the popularity of social media to reach customers. Shopee creates advertising campaigns on social media platforms such as Facebook, Instagram, and YouTube to enhance brand awareness and attract users.

• Multi-category online shoppers: Shopee offers a wide range of products and diverse categories, from groceries and fashion to electronics and home goods, and more. Therefore, they target online shoppers with multi-category needs who desire to find everything from a single platform.

3. Marketing problems and solutions

Intense competition: The online shopping market is becoming highly competitive and dynamic.

Shopee faces competition from major rivals such as Lazada, Tiki, and other online shopping platforms. To continue attracting and retaining customers, Shopee needs to find ways to differentiate itself and provide unique value.

 Strengthen marketing and advertising strategies to stand out and attract customers. Createcreative advertising campaigns that focus on Shopee's unique advantages, such as competitive pricing, product quality, excellent customer service, and attractive promotional programs.

 Invest in research and development to enhance the user experience, including improving user interfaces, enhancing search and product rating features, providing detailed and accurate product information to help customers make

Building trust and credibility: In online shopping, building trust and credibility is crucial.

Shopee must ensure that the products sold on their platform are of high quality and reliable.

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Additionally, Shopee needs to address issues such as counterfeit products, replicas, and other fraudulent activities to protect the trust of customers.

 Establish strict policies and procedures to check and ensure the quality of products sold on the Shopee platform. Enhance mechanisms to detect counterfeit products and replicas, and ensure that only trusted sellers are allowed to conduct business on Shopee. Build a positive user community by encouraging customers to rate and review products,

provide feedback, and offer objective comments on their shopping transactions on Shopee. This helps create transparency and accountability and allows potential buyers to make informed decisions based on the experiences of other customers.

Integration and user experience: Shopee needs to continuously improve its user experience to

attract and retain customers. From user-friendly interfaces and efficient search features to convenient payment processes, Shopee must ensure that the shopping experience on their platform is smooth and seamless.

 Continue improving the user interface on the mobile app and website to ensure a convenient, fast, and intuitive online shopping experience.

 Enhance search and filtering features to help customers easily and accurately find products.

 Ensure secure, simple, and convenient payment processes, along with reliable shipping and delivery methods.

Advertising and customer outreach: Shopee faces the challenge of reaching and marketing to

customers. With numerous competitors and fierce competition, Shopee needs to ensure the effectiveness of advertising campaigns and efficient targeting of their desired customer base.

 Invest in creative and effective advertising campaigns on social media platforms, television, and other media channels to enhance brand recognition and reach the target customers.

 Strengthen digital marketing activities, including SEO (search engine optimization), PPC (pay-per-click) advertising, and email marketing, to enhance customer reach and interaction.

Customer service: High-quality customer service is an essential factor in building customer

loyalty. Shopee needs to ensure that they provide prompt and efficient customer support, resolving customer issues and inquiries reliably.

 Train and build a team of professional, friendly, and responsive customer service staff to meet customer needs and demands.

 Create diverse customer support channels, including live chat, phone, email, and social media, so that customers can easily contact and receive timely support.

 Establish an effective feedback and complaint handling system to quickly and reliably address customer issues.

C. MARKETING ANALYSIS :

* MACROENVIRONMENT :

1. Cultural factors

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 Instead of making an app for all markets, Shopee made different apps for each market. This allows Shopee to introduce these features to 7 markets that they have been and are working on: Singapore, Indonesia, Malaysia, Thailand, Taiwan, VietNam, Philippines For example, in Indonesia, Shopee has launched a separate array of Islamic products and services to cater to Muslim customers. In VietNam, where celebrities and KOL greatly influence consumers' buying habits, Shopee introduces online stores that sell products advertised by advertising stars and representatives.

2. Demographics factors

 With the strength of the young population as well as the number of smartphone users accounting for a large proportion of the amount many e-commerce traders on smartphones, the e-commerce market in Vietnam grew fairly fast with 35.4 million users and generated revenue of more than $2.7 billion in the year 2019. E-commerce report of Southeast Asian countries 2019 by Google, Temasek and Brain & Company predicts the average growth rate for the whole period of 2015- 2025 of the brand Vietnam's e-commerce is 29%. Forecast to 2025, the scale of Vietnam's e-commerce will reach $43 billion and rank third in ASEAN. This is a very good opportunity for e-commerce businesses like Shopee to continue to promote marketing strategies to be able to attract more customers such as promotional campaigns, free shipping, flash sale and coupons forboth buyers and sellers.

3. Environment factors

 The Covid-19 epidemic has had a huge impact on the e-commerce industry. For the first time, tens of thousands of businesses have turned to online sales. Row millions of transactions that normally take place at stores that have now switched to the form of online transactions gland. The e-commerce industry has gone from an "interested" position to a "top priority" position for the e-commerce industry. For most retail businesses. Therefore, Shopee also received a lot of attention. Support from consumers. Some retail categories have moved away from direct sales route from 10-20% to 100% sold online.

 All retail industries of countries are still operated effectively thanks to the "power" of online purchases of customers.

 Some e-commerce sectors have struggled – especially in areas such as fashion, tourism, or event organization.

 For many retailers, e-commerce channels have helped them grow faster. From craft shopsto households to tycoons like Tesco, the company achieved a more than 90% increase in e-commerce revenues in May 2020 compared to the same period a year earlier.

However, with the bad impact of the pandemic, Shopee's delivery of goods was also seriously affected. Specifically, due to the impact of the Covid-19 outbreak, the pick-up/delivery of certaincarriers in isolated/quarantined areas may be slower than expected or, worse, maybe canceled because of state distancing regulations. Shopee is not yet. have a plan to support the transfer of delivery time or reserve orders. If the order is canceled due to the impact of covid-19, the customer is forced to rebook the new order at a more appropriate time. As for Shopee, they always try to get the order delivered to you as soon as possible at this time. In addition, Shopee ischoosing the most suitable option for upcoming promotions and will update customers as soon as

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there is specific information on the Shopee app. In addition, daily promotions, accumulating Shopee Xu, watching Shopee Live, posting on Shopee Feed ... It's going to go normally.

4. Economic factors

 E-commerce is considered an economic sector that not only maintains the growth momentum but also makes a strong breakthrough, contributing to the "miracle" of the positive growth of the Vietnamese economy; contributing significantly to promoting the flow of goods and services, supporting enterprises, especially small and medium-sized enterprises, to seek effective production and business opportunities in the context of deep integration and the spread of the Industrial Revolution 4.0.

 Vietnam is considered one of the fastest-growing e-commerce markets in Southeast Asia,behind only Indonesia. Vietnam is also one of two countries (along with Indonesia) with strong growth in e-commerce website traffic in the region. With high and continuous growth from 2015 onwards, it is forecasted that in 2020, the size of Vietnam's e-commerce market could reach 13 billion USD. This is completely grounded when there are 68 million internet users out of a total of 97 million people in Vietnam, which is the driving force behind the strong development of e-commerce. Along with the trend of technology development in the world, e-commerce in Vietnam is also gradually forming and growing strongly.

 The 2020 Southeast Asian Digital Economy Report by Google, Temasek and Bain & Company shows that Vietnam's e-commerce market ranks third in Southeast Asia with a scale of 7 billion dollars; ranked behind Indonesia (32 billion dollars) and Thailand (9 billion dollars). However, it is predicted that by 2025, domestic e-commerce could reach an increase. Vietnam is considered one of the fastest-growing e-commerce markets in Southeast Asia, behind only Indonesia.

To become a leader in Vietnam's crazy trade market, Shopee has implemented, there are a lot of marketing methods. Specifically, financial statements in the first years of operation in Vietnam shows that Shopee spends up to 90% of its marketing budget on promotional campaigns, free shipping, flash sales and coupons for both buyers and sellers in order to attract significant number of customers come from different platforms.

5. Science and technology factors

 Shopee attracts a large number of sellers and consumers thanks to the application of technology to shopping.

 Technological developments have also led to the emergence of some modern forms of payment. Online payments via payment gateways and bank cards are very familiar and the more common. This trend in 2021 has not cooled down but also developed with the form of payment via e-wallets. Currently, in Vietnam, outstanding e-wallets can be mentioned as Momo, ShopeePay, ZaloPay… The growth of e-commerce has driven the development of payment methods digital. The total number of orders on Shopee paid via AirPay e-wallets across the region has quadrupled. The strongest growth group in most markets is users over the age of 50. Shopee's representative said that this is a testament to the accessibility of Airpay wallets for an age that is often considered difficult to adapt to digital payments.

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6. Politics and social factors

 Information security: Among internet users, the biggest concern comes with the privacy factor. Privacy is described as a moral right for each individual, who benefited from intrusion into their personal affairs. Internet users have an online identity through which they make financial and personal transactions. Consumers are very interested in protecting this online identity. Effective e-commerce requires an organization to protect communications, consumer records, consumer behavior information, etc. Organizations should not share or use personal information without the prior consent of consumers.That's why Shopee has also implemented a lot of information security policies for customers. Shopee takes various security measures and always strives to ensure the safety of customers' dataon Shopee's systems. Users' data is stored behind secure networks and can only be accessed by some employees who have special access to Shopee's systems.

 According to statistics from the Financial Electronic Journal, Vietnam is among 78% of countries in the world with electronic transactions and is among 38% of countries with policies to protect consumers. 45% of users of countries have policies to protect personal data and out of 75% of countries have cybersecurity laws. The e-commerce market is alsonot immune to frauds, such as the supply of counterfeit goods, poor quality goods, copyright infringement on images, and intellectual property rights. An image of the product can be copied to be posted on many different websites with a fairly large price difference.

 To comply with the regulations and policies set by the Government of Vietnamfor the trade sector electronically, Shopee has developed a lot of policies to meet hose regulations and policies.

 Terms of service Privacy policy Operating regulations

 Regulations on the product listing Product ban/restriction policy Shopee shipping policy Return and refund policies Display services (Keyword bidding) Shopee Mall Terms

 Service to reduce shipping costs

 Dispute settlement/complaint settlement process International Shopee Terms of Service*MICROENVIRONMENT :

1. Vendors

 + Selling on an e-commerce site is now a popular business trend. That’s why e- commerce companies like Shopee, LAZ,.. are now embracing huge opportunities and

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growth potential. Shopee is now a large and prestigious e-commerce platform that attractsa large number of sellers and customers thanks to the application of technology to shopping. So, the supply is supplied for sale. Shopee's goods will come from:Large wholesale markets in the country themselves.

 Self-workshops in the country. From foreign markets. From foreign websites

2. Competitors

 It can be seen that the leading competitor that Shopee always focuses on is Lazada, a brand invested by Alibaba. In addition, in many markets, the company has its own domestic competitors that directly compete with its market share. For example, in Vietnam there are Tiki, Sendo, Adayroi!,.. or in Indonesia there are Tokopedia, Bukalapak,; The Philippines has: Zalora; Singapore has: Qoo 10 Singapore.

sub-3. Customers

 First of all, because Shopee is an application established in the southeast Asian country, moreover, it also works strongly here, so its target customers are markets such as Singapore, Myanmar, Thailand, Indonesia, Malaysia, Vietnam, Philippines. This is also a market where customers have a high demand for online shopping, the e-commerce industry is also said to have an outstanding annual increase. By comparison, the potential and revenue generated from this industry are higher than all other industries when approaching 20 million downloads.

4. Enterprises

 The management of human resources in Shopee's business strategy has changed a lot in the context of the covid-19 pandemic. Shopee has the flexibility for employees to take turns working from home so that the employees begin to get acquainted. In 2 weeks, all employees of Shopee's office block were able to have time to adjust to the difficulties ofworking from home and avoid the surprises of entering the period of social distancing. With training programs, Shopee moves through online forms of training, replacing

interactive games in each session with games through Kahoot. Its website. In terms of training content, Shopee prioritizes useful content with the business situation at that time as well as the soft skills needed for employees during this period.

 With its cohesive activities, Shopee maintains online engagement activities through social networking sites, continuing to organize online entertainment activities exclusivelyfor employees (singing programs, talent search,...).

5. Marketing Intermediaries

 Shopee has many marketing campaigns and is fast catching up with the trends. Shopee's marketing strategy is gradually aimed at further enhancing brand coverage and enhancingthe visibility of sales such as 11.11. Unlike other brands that use influencers for long periods, Shopee launches offline channels with celebrities in a short period of 2-3 months. When Vietnam has new influencers who are admired by everyone, Shopee will hire them to become its brand image. For example, when Vietnam U23 became the seagame champion, Shopee hired some famous football players for the U23 team for the marketing campaign. Or Miss Vietnam also became the brand image of Shopee.

6. General public

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 We have 7 groups of general public including: Finance: shareholders Media:Youtube, TikTok, Facebook,..

 Government

 Action group: Tiktokers Review,..

 Local authorities: Use local delivery offers or free delivery to locals of products for sale. General: KOL, Affiliate working from home and avoid the surprises of entering the

period of social distancing.

 With training programs, Shopee moves through online forms of training, replacing interactive games in each session with games through Kahoot. Its website. In terms of training content, Shopee prioritizes useful content with the business situation at that time as well as the soft skills needed for employees during this period.

D. 7PS

1. Product

 Shopee's goal is to target customers in multiple markets and countries, so they have optimized their website with multiple languages and designed user interfaces based on customer usage habits to facilitate buying and provide the best customer experience. This is considered part of their strategy of localization for each market that Shopee is operating in.

 The products available on the platform are diverse, spanning various categories such as beauty, fashion, home and living, electronics, and more. This allows Shopee to effectively meet the individual needs of each customer who uses their services. Similar to other e-commerce platforms, Shopee has also introduced Shopee Mall, a

dedicated section that provides genuine products from well-known brands such as Unilever, Adidas, Inochi, Samsung, Oppo, and more. This helps customers to trust and feel more confident about the products sold on the e-commerce platform.

 In addition, Shopee offers several attractive features:

 Shopee Live: Sellers can conduct livestreams to showcase and sell their products available on their Shopee store. This feature has no time or location limitations and simplifies the process, boosting sales for sellers. Buyers can directly interact, ask questions, and learn more about the products from the sellers.

 Shopee Chat: This feature is designed for communication between sellers and customers.Sellers can address any inquiries during the buying process, exchange information about the products, and handle any arising issues. This feature affirms the seller's credibility in customer care and helps drive their revenue.

 Shopee has implemented a competitive pricing strategy for its products. Competitive pricing is a pricing method that leverages the prices of competing products in the market for similar offerings as the basis for pricing. This pricing strategy focuses more on marketinformation rather than production costs (cost-based pricing) or the value of the product (value-based pricing).

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 In Shopee's case, the company understands that in the highly competitive market, in addition to providing customers with an intelligent and user-friendly platform that aligns with their habits, a competitive pricing strategy is crucial.

-Shopee đã khuyến khích các chủ hộ kinh doanh lựa chọn hợp tác với mình bằngnhững mức giá ưu đãi khi là thành viên của hãng

2. Price

 The competition in the market is fierce, and price competition is one of Shopee's effectivemarketing strategies. Shopee encourages business sellers to collaborate with them by offering the best prices when becoming members. Additionally, the company provides maximum support in terms of shipping costs and offers free shipping codes to enhance the purchasing power of customers using their app. Furthermore, this price support makesShopee's prices more attractive compared to competing brands.

 Shopee has priced its products based on a competitive pricing strategy. Competitive pricing is a pricing method that leverages the prices of competing products in the market for similar offerings as the basis for pricing. This pricing strategy focuses more on marketinformation rather than production costs (cost-based pricing) or the value of the product (value-based pricing).

 In Shopee's case, the company understands that in the highly competitive market, in addition to providing customers with an intelligent and user-friendly platform that aligns with their habits, a competitive pricing strategy is crucial.

-Hiện nay, thị trường thương mại điện tử là một thị trường có độ cạnh tranh rất

-Shopee đã khuyến khích các chủ hộ kinh doanh lựa chọn hợp tác với mình bằng những mức giá ưu đãi khi là thành viên của hãng.

3. Place

 Shopee is a major online shopping platform in Vietnam. The company has focused on releasing dedicated applications for smartphones, tablets, and a website that runs on computer browsers. All of these commerce channels provide convenience and a great shopping experience for customers, allowing them to access and make purchases anytimeand anywhere.

 In locations where Shopee does not have warehouses, and if sellers want to deliver their products to various places, the delivery time would be slower and the long distance would increase transportation costs. This can impact the buying decisions of both sellers and buyers. Therefore, as of 2019, Shopee has partnered with 7 shipping partners, including Vietnam Post, Viettel Post, Giao hàng nhanh, Giao hàng tiết kiệm, Giao hàng chuẩn, J&T Express, and Grab Express.

 Initially, Shopee operated under the Marketplace model (C2C - Customer to Customer). C2C is a relatively unique business model that connects individuals with each other instead of businesses. In this model, both the buyer and seller are individuals and typically transact with each other online through a third party, such as e-commerce platforms or auction websites. It can be seen as a market where customers buy directly from individuals rather than businesses, similar to the traditional flea market concept.

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 Currently, Shopee has expanded to include B2C (Business to Customer) as well. B2C stands for Business To Consumer, where commercial transactions take place between businesses and consumers, supported by computer devices and communication networks. In other words, it is a form of business selling goods, products, and services to customers in a digital environment.

 In the B2C model, buyers and sellers are connected through e-commerce platforms like Shopee, Tiki, Lazada, which are intermediaries and do not directly own the products. They play the role of intermediaries between buyers and sellers, so they do not have suppliers or distributors. Simply put, in Vietnam, Shopee initially developed a C2C marketplace business model, acting as an intermediary in the buying and selling process between individuals. However, after recognizing the high demand in Vietnam, Shopee gradually transitioned to a B2C model (business to consumer). Shopee charges fees to sellers, including rolling fees and commissions.

4. Promotion

"Catch the Peak Trend" TVC Campaign Strategy

 Shopee has been highly successful in marketing by creating viral TV commercials to promote its brand through various media channels and social networks. A prominent example is the famous "Baby Shark" campaign that made a huge impact not only in Vietnam but also across Southeast Asia and the world. Utilizing the TVC campaign strategy to catch trending topics has been regarded as a highly effective marketing strategy for Shopee. They leverage the current popularity of trends to create impressive advertising TVCs. Naturally, as they catch the trend, these TVCs have high virality and attract users in a natural way.

 Using the influence of celebrities to promote their brand is a common strategy for large companies, and Shopee is no exception. This e-commerce platform invests a significant amount of money to invite famous personalities from the entertainment industry, such as Son Tung, Hieuthuhai, Bao Anh, and many other Vietnamese artists. Moreover, the company even invited the globally famous Korean group BLACKPINK to be the faces oftheir major brand advertising campaigns.

 Additionally, Shopee's advertisements can be seen through large digital screens on the streets, utilizing the endorsement of celebrities on banners, posters, and advertisements on buses, taxis, and trains.

"Localization" Strategy

 Shopee actively implements localizing campaigns, adjusting its platform to best meet the needs of users in each market. This is an intelligent strategy that helps Shopee effectively understand its users.

 To implement this strategy, Shopee hires local employees who can provide insights into the culture and customs of each country or region. They also collaborate with local banks to deliver a seamless shopping and delivery experience for consumers.

 Regarding Shopee's product marketing strategy, the e-commerce platform focuses on research and development to enhance the quality of its products. In addition to basic features provided by other e-commerce platforms such as Shopee Mall (offering 100% genuine products), Flash Sale (limited-time and limited-quantity promotions), diverse

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marketing plan shopee

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