Shopee’s Marketing.| Assignment

Shopee’s Marketing
Table of Contents
I. INTRODUCTION.................................................................................................2
II. SHOPEE’S MARKETING AND THEIR MARKETING ENVIRONMENT.......2
1. Marketing........................................................................................................2
2. Marketing environment....................................................................................2
3. Marketing environment at Shopee...................................................................3
3.1. Microenvironment.....................................................................................3
3.2. Macroenvironment....................................................................................4
III. The impact of external environment on the business's ability to identify
opportunities and challenges.........................................................................................4
1. Customers factor. (Picture 1)...........................................................................4
2. Competitors factor...........................................................................................6
IV. The core positions and responsibilities of the Marketing funtions in Shopee......7
1. Marketing Researching....................................................................................7
2. Advertising and Promotion..............................................................................8
V. Shopee's marketing function impacts and interacts with other business funtions.. 9
1. Marketing & Finance.......................................................................................9
2. Marketing & Human resource department.......................................................9
VI. Using marketing research techniques to obtain customer insights....................10
VII. CONCLUSION.................................................................................................11
VIII. REFERENCE LIST.......................................................................................11
IX. APPENDIX.......................................................................................................13
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I. INTRODUCTION.
Shopee had a headquarters in Singapore, owned by SEA Group (formerly Garena),
was founded by billionaire Forrest Li in 2009. Shopee first launched in 2015 in
Singapore. To date, this e-commerce platform has been present in Singapore,
Malaysia, Thailand, taiwan territory, Indonesia, Vietnam, Philippines and Brazil.
Shopee first entered the Vietnamese market in August 2016, with a C2C Marketplace
growth model (Intermediary in the process of buying and selling between individuals).
Shopee Vietnam, on the other hand, has evolved into a hybrid platform, with both
B2B and B2C components (business to consumer). Sellers/commissions and
commodity uploading fees have been paid by Shopee.
II. SHOPEE’S MARKETING AND THEIR MARKETING ENVIRONMENT.
1. Marketing.
According to Philip Kotler and Gary Armstrong (2006), marketing can be defined as a
five-step process for understanding consumers in order to generate the value for
customers and then develop strong relations between customers and the organization.
It will regard to superior customer value in the final step of marketing process. They
can capture value by generating consumer value by providing value for their
consumers (specifically profits, revenue and customer loyalty). Shopee has
successfully formulated their marketing strategies to offer the best value to consumers
and thereby earn their loyalty, as defined by the concept.
2. Marketing environment.
The business's marketing environment is made up of players and market dynamics
that have an effect on marketing company's capacity to establish and maintain
successful relationships with their potential customers (Kotler and Armstrong, 2017).
The marketing environment distinguishes itself in two segments: micro-environment
and macro-environment. The microenvironment includes the industry, client markets,
marketing intermediaries, vendors, rivals, and publics, all of whom have an effect on
the company's ability to compete and satisfy their target customers. The macro-
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environment, on the other hand, is made up of larger social factors that affect the
micro-environment, such as demographic, economic, natural, technological, political,
and cultural forces. (Kotler and Armstrong, 2017).
3. Marketing environment at Shopee.
3.1. Microenvironment.
Customers are the most important players in a company's microenvironment. The
entire value distribution network's mission is to connect with target customers and
improve communication with them. 'Businesses only exist while consumers exist,' is a
good statement for the vast majority of companies. Businesses and customers exist as
a population, the purchasing behavior of customers determines the business and the
development of every business. Therefore, it is extremely important to identify the
target clients of the business (Nhanh.vn, 2020).
Shopee attracts customers by using its own country-specific app. This is also a part of
each market's local approach, which is deeply integrated. Thanks to this target
demographic, Shopee has had a lot of growth in every field it has joined. Shopee
offers a website that is programmed in a variety of languages, allowing customers to
transact with ease. Shopee also focuses on delivering a straightforward and easy-to-
use user experience through website design that is tailored to the needs of its
customers. Shopee caters to customers who are looking for personal care items like
makeup and clothes. Purchasing on Shopee will result in greater savings, putting
shoppers at ease as they choose the picture business for their personal beauty needs.
Shopee is a well-known online retailer. Shopee is a popular e-commerce platform for
women who enjoy shopping for beauty. (Nguyen, K. K., 2020). By successful
markerting strategy, Shopee successfully developed a group of loyal customer which
occupied 20% of the total customers (Trieu, L.,2021)
3.2. Macroenvironment.
Macroenvironment refers to social and environmental factors that have an effect on a
company's internal factors, such as demographic, economic, financial, technological,
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political, and cultural factors. Relating to Shopee, economic seems to be a
significantly crucial factor. According to NCIF's report, Vietnam's per capita GDP in
the year 2025 will gain 4.688 USD, from the high-income group. When consumers'
incomes begin to rise, it can have a significant impact on their buying habits: Buyers
with a high salary find it easier to spend more on goods with discount incentives, as
Shopee now offers. The average income of Ntd Vietnam is increasing in which the
group has the fastest growth in demand in from 500 to 1000 USD per month.
Vietnamese consumers average about 70% of monthly income. Moreover, the
government has met the target: Vietnamese people will spend 350 USD annually on
online shopping, up from USD 210 each year for this activity. It proves that Vietnam
has the fastest e-commerce growth rate in Southeast Asia (Tran et al, 2020).
III. The impact of external environment on the business's ability to identify
opportunities and challenges.
The external marketing environment will provide many opportunities and dangers
with all aspects of the marketing combination.
1. Customers factor. (Picture 1)
In Nguyen Hanh (2020) report, 60 percent of online shoppers are women, and 40
percent are men, according to Nielsen Vietnam analysis. 55 percent of online shoppers
are between the ages of 25 and 29. As seen in Figure 2, the majority of online
shoppers are single, with 55% of consumers using online shopping platforms being
office staff. Currently, 35.8 million users have access to the internet, a growth of 11%
over per year.
According to Google, the number of Vietnamese people who shop online is
increasing. And along with to Temasek's numbers, 3.2 million Vietnamese people
begin shopping online each year (Nguyen, H., 2020). Google’s analysis shows that
Vietnamese consumers search keywords are very popular and simple such as makeup
or where to buy furniture. Google said this trend is very evident when looking at the
number of searches about e-commerce floors such as Shopee, Lazada, Tiki. "In the
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