tiểu luận shopee marketing strategies to achieve theri goal in viet nam

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL
SCHOOL ***

AN ANALYSIS OF THE EFFECTIVENESS OF MARKETING MIX IN
DEVELOPING NEW PRODUCT:

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

th

Hanoi, May 07 , 2021.

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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.
The latest statistics from some online shopping websites, online shopping has
shown remarkable developments in recent years. Realizing that, Shopee has applied a

4Ps marketing campaign to confirmed their position on Vietnam’s Ecommerce. We
point out that all of the studied cases exhibit additional properties and complexities
when compared to similar cases, previously published in literature. Additionally,
the companies’ current solutions and future demands for marketing are discussed.
KEYWORDS
Marketing Strategy, Marketing mix (4Ps), Ecommerce, Market segmentation,
Targeted customer.

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TABLE OF CONTENTS
ABSTRACT............................................................................................................................... 1
KEYWORDS............................................................................................................................ 1
TABLE OF CONTENTS....................................................................................................... 2
1. INTRODUCTION............................................................................................................... 3
1.1. General information about Shopee............................................................................. 3
1.2. Type of product................................................................................................................. 3
1.3. Marketing goals................................................................................................................ 6
2.2. METHODOLOGY,ANALYSIS, FINDING & RECOMMENDATIONS.........7
2.1. Theories of learning......................................................................................................... 7
2.1.1. Market segmentation.................................................................................................. 7
2.1.2. Market segment.......................................................................................................... 7
2.1.3. Marketing strategy..................................................................................................... 7
2.1.4. Marketing mix (4Ps)............................................ Error! Bookmark not defined.
2.2. Methodology...................................................................................................................... 8
2.2.1. Purpose......................................................................................................................... 8
2.2.2. Scope............................................................................................................................ 8

2.2.3. Resource...................................................................................................................... 8
2.3. Analysis Shopee’s 4Ps Marketing Strategy............................................................ 8
2.3.1. Product..................................................................................................................... 8
2.3.2. Price.......................................................................................................................... 9
2.3.3. Place......................................................................................................................... 9
2.3.4. Promotion.............................................................................................................. 10
2.4. Finding............................................................................................................................. 11
2.4.1. Evaluation............................................................................................................. 12
2.3.2. Analysis.................................................................................................................. 12
2.5. Recommendations.......................................................................................................... 13
2.5.1. Customer stimulus programs.............................. Error! Bookmark not defined.
2.5.2. Increase the trust in the eyes or unfamiliar buyers ............................................. 14
2.5. Appendix.......................................................................................................................... 13
REFERENCES.................................................................................................................... 177

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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 website

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Living

Entertainment

Shopee

Health

Beauty

Figure 1. Shopee’s product categories.
Source: Adapted from Shopee Vietnam.

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 is
because
the
number

of
large
of

products and
many

10%,

or

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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

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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

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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.
Segmenting consumer markets
Segmenting business markets
Segmenting international markets
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

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1. advertising
2. sales force
3. publicity
4. sales promotion

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 in 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

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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.

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.

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.

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The Shopee mobile app provides a clean interface, user-friendly design, easyto-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 right 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 ewallets 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

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 is 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.

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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.

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Consumer age
10%
28%
18-24
25-34
>34
49%

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
50%
45%

40%
35%

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% of users 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.

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Vietnamese people have a hobby of hunting for discounted goods during office
hours, perhaps to reduce stress at work. More than 35% of transactions are made in the
time frame from 12pm - 6pm. The form of cash payment (80%) after receiving the goods

is still very popular in online shopping in Vietnam.
The weekly frequency of online shopping for women (18%) and men (16%) is
nearly the same. However, when comparing the frequency of buying once, or several
times per month, the buying rate of men (31%) is much higher than that of women (28%)

and twice as high as the frequency of buying. shop every week.
The reason men increasingly love shopping online is because of the attractive
offers as well as the variety of items. According to a survey by Shopee, Home & Life,
Phones & Accessories and Men's Fashion are the most popular categories for men,
because they often need to buy electronic products or bags, sports on online shopping

sites. 67% of 80% of online shoppers are satisfied with their shopping experience
The three points that online shoppers are satisfied with are the abundance of
products, attractive prices and promotions. There are three points of dissatisfaction:
quality of goods compared to advertising designs, transportation costs and customer care

services.
Men's and Women's Fashion, Health & Beauty, Home & Life, Technology are the

four best-selling categories of the online shopping market. An interesting point is that
men always account for a higher percentage than women when talking about "User
gender" on Shopee
2.5. Recommendations
Though seemingly perfect, Shopee’s marketing strategy has been more
of the same and in need of a shakeup
2.5.1. Customer stimulus programs
Shopee has been known for their massive sales date like 5/5 as their most
recent example. These massive sale dates do help attract more 10000 viewer per day
onto the platform but because the offerings have always been similar and the products
are mostly filler which lead to the hype and excitement of users dying down
somewhat throughout the years.
To change up this increasingly stale concept, they need to implement a new
categorized sales program. For example “Electronic Monday” the spotlight are
on electronics with 20% discount on smartphone or laptop and 30% for others, this
approach will draw in buyers who are interested in electronics, or “Fashion Friday”
where customers can get free ship for all clothing products when they order
immediately on this day in order to attract the fashion continuous buyers. By
categorizing the consumers, they can focus on each demographic and eventually
increase sales in the bigger picture in VietNam.

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2.5.2. Increase the trust in the eyes or unfamiliar buyers
One of the biggest deterrent from online shopping for those who are unfamiliar
with it is the legitimacy of the products being listed. Shopee needs to advertise their excellent
buyer protection program in front of the masses, so Shopee can provide warranty 1 days for
all products which help buyers can exchange or refund if they feel unsatisfied with the
product. In addition, Shopee can cooperate with highly regarded brands like Apple to open
their official store on Shopee to make their platform more appealing to hesitant buyers afraid
of buying counterfeit goods online.

2.6. Appendix
Questionnaires
1.

What types of products do customers focus on ?
A. Fashion
B. Comestics
C. Food
D. IT

2.

Shopee's sales and profits in all items for the whole year .

3.

What is the percentage of the regular customers’ age?

A. 18-24
B. 25-34
C. >34

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4.

What is the rating of both sex: Male and Female?
A. Female
B. Male

5.

How often do customers order in Shopee ?
A. Weekly one more
B. Once – a few times month
C. Once several months
D. Never

6.

What is the electronic devices that are sought and favored ?
A. Smartphone
B. Home PC
C. Others

7.

The destination where goods are frequently transported.
A. Home
B. Office
C. Others

8.

The amount that customers spend every month.
A. <300.000
B. 300.000-700.000
C. 700.000-1.000.000
D. >1.000.000

9.

Payment method that customers often use.
A. Payment on delivery
B. Others

10.

The level of satisfaction of the needs of customers.
A. Very satisfied
B. Satisfied
C. Unsatisfied

11.

What are the benefits of online shopping?
A. Order anytime
B. Product variety
C. Mobile phone friendliness

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12.

The shortcomings of online shopping.
A. Quality concerns
B. Rent shop preference
C. Security concerns

13.

3 cause of the customer is not satisfied.
A. Product quatity
B. Delivery cost
C. Customer support

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REFERENCES

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s1xWUGGtXIAyw

6. />fbclid=IwAR249213BMvfA0DjhqSMpTg9InTuXvfZLFKtvtqSiw65
YFDs0rHaaenUVnI

7. />fbclid=IwAR3ovL8DOJwJf4EgZY_l1eXOCgx6YEfRthVjYbgx6L
ujIEcOSIlqHNK5A4Y

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