Professional Documents
Culture Documents
Marketing Management (Marketing Plan Part 1)
Marketing Management (Marketing Plan Part 1)
Company Profile
A. History of Shopee
Shopee was founded by Forrest Xiaodong Li in Singapore in the year 2015 and it
is a subsidiary of the Sea Company (formerly known as Garena). It is a multinational
technology firm that focuses on e-commerce. Shopee adopted a different approach in
the beginning, launching as an app initially to take advantage of Southeast Asia's high
mobile penetration rate. It is said that the SEA Company has the greatest average
mobile internet usage of any region according to a Google and Temasek study (3.6
hours per person a day). Therefore, from the start, Shopee focused on improving user
experience and engagement through mobile. Its mobile-first strategy enables it to
capitalize on the predicted sustained expansion in mobile subscriber penetration.
In the year 2019, within just four years of its establishment, Shopee has grown
and positioned itself as one of Southeast Asia's most pioneering business enterprises or
markets when it comes to e-commerce platform, where suppliers and buyers meet, with
over 80 million entrepreneurs.
Shopee offers a diverse range of products in areas such as electronics, home &
living, health & beauty, baby & toys, fashion, and exercise equipment – to name a few,
as well as a social community for exploration to provide smooth and satisfactory
services to its consumers of various regions. With its effective price mechanism and
logistical assistance, Shopee provides its clients with an easy, fast, and safe way to
enjoy their online buying experience.
Company Mission
Shopee aspires to create an easy and secure mobile marketplace where
anybody can buy and sell anything at the same time and from any location.
Company Vision
Shopee's goal is to constantly improve its platform and become the region's
preferred e-commerce destination through regular product improvement and localized
user-centered initiatives.
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
LEGAL
1. Consumer protection. The Consumer Act is the country's primary consumer law
that aims to protect consumers against deceptive, unfair, and unconscionable
sales practices. Although it does not mention protection specifically for e-
commerce consumers, but it still declares the applicability of consumer legislation
to e-commerce transactions. The Electronic Commerce Act 2000 did recognize
the need for e-commerce consumer protection and supports that no electronic
transaction, document or message shall be discriminated against and denied
legal effect just because it is in electronic form. With this, the Joint Department
Administrative Order 01 was issued providing regulations for the protection of
consumers doing online transactions particularly on the purchase of goods and
services which covers both local and foreign-based e-commerce sellers and
retailers.
2. Data privacy and cybercrime. The R.A. 10173 or the Data Privacy Act seeks to
protect all forms of personal, private and/or sensitive data while the R.A. 10175
or the Cybercrime Prevention Act addresses and penalizes offenses made
through illegal access and interception of computer data and systems. When it
comes to logging in to your online shopping app account, one is required to fulfill
certain personal information and consent. The consumer has all the rights to be
assured that all his personal details will be kept private.
ENVIRONMENTAL
B. Competitor Analysis
With over 400 million individuals in Southeast Asia earning up to $100 each day,
more Filipinos are turning to the Internet to spend their well-earned money. According to
Google and Temasek's e-Conomy SEA research, the country's online consumer
products market was valued at US $3 billion in 2018 and is expected to reach US $12
billion by the year 2025.
As people turn to online stores and marketplaces to buy what they need during
the COVID-19 pandemic lockdown, brands should consider which platforms are most
visited by consumers to ensure that they still reach their target markets, according to the
"Year-end Report on Southeast Asia's Map of E-commerce." The most popular online
retailers in the Philippines include Lazada, Shopee, Zalora, and BeautyMNL.
According to the report, which was compiled by price comparison website and
online catalogue iPrice Group in collaboration with mobile data and analytics platform
App Annie and web analytics services company Similar web, Lazada has a 59 percent
market share in the Philippines, with over 34 million monthly visits. On the other hand,
Shopee has a 33 percent market share, while Zalora has about two million monthly
visitors, this makes Lazada and Shopee the two most popular sites on the marketplace.
Lazada and Shopee are both proactive in terms of aiding their clients in better
understanding the items. However, Lazada's "Inquiries about this product" option
makes it simple to ask questions and obtain answers regarding items.
On the contrary, Shopee Live and Shopee Feed services have proven to be
game changers. Just like for example, INSPI (a Filipino apparel business) has
utilize the use of this Shopee feature to raise awareness of latest items and make
them popular among more than 500,000 prospective clients. If you have any new
and fascinating items, Shopee is the solution to assist you reach a wider target
audience.
C. Customer Analysis
Shopee's customer base includes a diverse variety of people with high, middle,
and low incomes. However, the main target clients are the middle class/income
customers, primarily young people who are looking for affordable items.
Nowadays, many people, particularly the young ones, are enticed to browse or
glance through online shops. Taking into consideration our current situation, because of
the pandemic many business enterprises are being halted and or shut down, and this
prompted people to look for an alternative way to shop and that's where e-commerce or
online shopping started to flourish. Online shopping platforms like Shopee offer lower
prices and discounts on their products, and it also has a wide range of product choices
such as categories from home & living, electronics, beauty & fashion, and many more.
That is why many people prefer online shopping, as it is said to be more convenient
rather than going to the actual or physical stores, because through online shopping,
consumers can easily browse and select any product that they would like to buy that is
all accessible on a single platform.
D. SWOT Analysis
The SWOT Analysis is a strategic planning approach that assists the business to
identify its internal and external elements – such as the strengths, weaknesses,
opportunities, and threats of the business for the purpose of distinguishing what are the
favorable and unfavorable elements to accomplish the desired goals of the business.
STRENGTHS
One of the top priorities of Shopee is their buyer's safety and protection. Shopee
offers a feature called the “Shopee Guarantee” where it protects their buyers against
potential fraud, this feature momentarily holds the payment to check if the deal is being
successfully completed before releasing the payment to the seller. This feature also
allows the buyers to monitor the status of their order. The “Shopee Guarantee” feature
also emphasizes numerous elements such as Safe Payment, Valid Shipment, Shopee
Guarantee Extend, and Refund Request.
Shopee provides its consumers with a wide range of products and goods ranging
from electronics, gadgets, accessories, sports and automotive to health and beauty
products and home appliances from local and worldwide companies.
3. Shipping Options
When it comes to shipping, Shopee offers a lot of options like J&T Express, Ninja
Van, and GoGo Xpress. Buyers can also choose Standard Delivery via Shopee Xpress
which is the main integrated logistics partner of Shopee. In this way, buyers have the
upper hand to choose or select the best shipping option to deliver their order.
4. Customer Service
Shopee has a message option with responsive customer service that allows
customers to easily contact the seller when they experience an inconvenience or if they
have any complaint or concern about the products that they received. Customers can
also contact the seller directly if they need extra updates or information about the
products that they purchased.
WEAKNESSES
1. Misleading Information
Like in many other e-commerce platforms, fake and low-quality products become
an unavoidable problem. There have been many cases documented in which the seller
will upload an appealing photo of an item at low prices, however, when that certain
product reached its buyer or customer, it did not exactly look like the photo that the
seller has posted on the website. Issues like – having poor quality, the item that the
buyer received has a damaged, and misleading information shown in the description
site are some of the very common comments received by sellers from buyers that make
online shopping a disadvantage.
3. Defective product
When compared to what was shown on the website, things often do not match
what the customers ordered. There are some instances that consumers received
damaged or defective products and sometimes the quality of the product is not even
close to what is posted on the website. As a result, the items' quality has been
compromised.
OPPORTUNITIES
1. Global Accessibility
One of the most significant advantages of Shopee is its global reach. Shopee
has a web and an application platform that enables its customers from any part of the
world given that it operates in various Southeast Asian countries. Shopping used to
include traveling to a specific physical store during their working hours – in which for
some people it is an additional work for them especially if they are busy; but with
Shopee, buyers may now shop and learn about the product in the comfort of their
homes at any time of day and even at night.
2. Technological advancements
E-commerce platforms like Shopee are not just for shopping anymore, they have
introduced a new feature to let customers have fun on the platform, specifically through
games and prizes. Shopee games like Shopee Farm, Shopee Claw and Shopee Throw
have interesting mechanics with exciting prizes. Aside from games, the launching of e-
wallets like GCash and Paymaya is also a big help in the payment process on the said
platform especially in terms of convenience and security. Improvements in the
telecommunication infrastructures also played a big role in e-commerce since users can
have the means to access these platforms anytime and anywhere.
3. Increasing demand
The number of people using the internet daily has grown to 69 million out of the
total population of the country. About 91% of these users have already experienced
searching the web to buy a product while 75% have already experienced purchasing
online. Online shopping became a social activity due to the pandemic wherein most
cities implement community lockdowns and most physical stores also have limited
operations hence people are switching to the more convenient way of shopping.
4. Online Ambassadors/Influencers
THREATS
1. Hacking
One of the most challenging problems that many e-commerce has faced is
hacking and identity threats. This kind of problem posed a threat to the business’
security and integrity, as well as to their consumer's trust. Issues like having fatal data
breaches can result in many consumers becoming hesitant about disclosing their
personal information - as they are afraid that their data and privacy might be exposed
and that their information will be used by hackers in a malevolent way to deceive people
so that they can get the fulfillment or satisfaction that they want for their own good.
2. Market competition
3. Internet Fraud
Nowadays, internet fraud is one of the most unavoidable issues. Unlike other
online shops like Zalora – which only sells approved and authentic products, Shopee on
the other hand, do not always monitor the retailers that sells branded products/items on
the website, in this case, it will make easier for the scammers to sell their products.
Many people are enthralled to use Shopee in terms of online shopping because it
offers the best online deals and discounts on products to their customers, and apart
from that, for the business to be more engaging to their customers, they also employ a
highly personalized approach to the entertainment in each of their target markets,
including the Philippines - it is to customize the business advertisements and content in
order to fit their local customer preferences. In line with that, Shopee has maintained its
partnerships with GMA, GMA News TV, and Wowowin Primetime to provide shoppers
with more fun and exciting involvement when shopping online. Shopee has also
engaged the services of brand ambassadors and celebrities including Jose Mari Chan,
Willie Revillame, Catriona Gray, and Gabbi Garcia to mention a few. Shopee also
made partnership with local influencers/vloggers, with the use of their respective social
media platforms the influencers/vloggers will further promote and elevate the use of
Shopee platform in terms of online shopping and the products/services that it offers to
their followers in order to attract huge audiences, especially during the Big Brand Day
sales event.
Shopee also aims to move forward against its competitors, to do that the
business develops a strong ecosystem of solutions to assist brands in building authentic
connections with their customers through enhanced brand storytelling by using easy-to-
use brand marketing tools like the store decoration tool to further boost their online
presence and scale their seller's e-commerce business. In addition to that, Google Ads
and Shopee also work together to introduce a first-of-its-kind marketing solution for
businesses wanting to promote and upsurge their online sales – this is one of the
competitive advantages that Shopee has over their other competitors. Shopee
increased its support for brands by launching the Shopee Media Agencies Partner
Program (SMAP), which provides media agencies with in-depth knowledge and skills on
how to use Shopee's suite of brand marketing tools. Shopee also strengthens their
celebrity endorsements on banners, posters, and billboards that can be seen and or
found on buses, taxis, and trains - this is as part of the business strategy to increase
awareness or familiarity with the online shopping platform.
On the other hand, Shopee focuses on the middle class/income customers - both
the male and female shoppers when it comes to their demographic segmentation.
Shopee has a wide range of selection for both the male and female shoppers – as it
aims to improve their online purchasing experiences and serve as a one-stop online
shop to cater for their necessary needs and requirements – given that, sellers charge a
fair price on the products/services that they offer so that people can afford to purchase
them. In addition to that, with the help of the demographic's segmentation, Shopee can
be able to point out who their target markets are; and these are the Millennials and
Generation Z people whose ages are ranging between 18-40 years old. Rationally, they
have a basic understanding of how to utilize a phone and a computer to do online
shopping; apart from that, these people are also heavy internet users, as they spend an
average of several hours browsing through their mobile phones or through the web in
terms of online shopping for their basic needs and demands, additionally, this age group
also accounts for almost 80% of the contribution of their purchases in the Shopee
platform - as they see it as one of the most convenient ways in terms of utilizing a
digitalized shopping experience.
B. Positioning
To avid shoppers and internet users across the Southeast Asian region, Shopee
is an e-commerce platform that offers online shopping and online experience that
provides a wide selection of products, a social community for exploration and seamless
fulfillment services.
C. Marketing Mix
Product
Price
Promotion
Shopee utilizes the use of viral television advertising to promote its brand to a
large audience as part of its marketing mix along with the participation of known
personalities and talents. Furthermore, the business runs several discount programs to
entice customers to buy in bulk. The brand's greatest advantage is its emphasis on
communication efforts that build a strong impression on consumers in several
Southeast Asian countries, as a result, these campaigns leave a positive market impact
on their target consumers.
Place
Seller Education Hub (May 25, 2020). What is Standard Delivery (via Shopee Xpress)?.
Retrieved from What is Standard Delivery (via Shopee Xpress)? | Shopee PH Seller
Education Hub
Chaffey, D. (2019, October 25). The reasons why consumers shop online instead of in
stores. Smart Insights. Retrieved November 6, 2021, from
https://www.smartinsights.com/ecommerce/ecommerce-strategy/the-reasons-why-
consumers-shop-online-instead-of-in-stores/
de Vera, B. O. (2021, March 25). PH urged to tax digital platforms, online transactions.
INQUIRER.Net. Retrieved November 6, 2021, from
https://business.inquirer.net/320003/ph-urged-to-tax-digital-platforms-online-
transactions
Related Laws and Policies | DTI ECommerce. (n.d.). DTI Philippines. Retrieved
November 6, 2021, from https://ecommerce.dti.gov.ph/related-laws-policy-issuance/
Verdon, J. (2021, August 26). E-Commerce Inflation Is Not Slowing Down, With Online
Prices Up 3.1% In July, Adobe Reports. Forbes. Retrieved November 6, 2021, from
https://www.forbes.com/sites/joanverdon/2021/08/26/e-commerce-inflation-is-not-
slowing-down-with-online-prices-up-31-in-july-adobe-reports/?sh=6dadff9961e6
https://www.thedrum.com/news/2020/07/17/shopee-creates-e-commerce-ad-solutions-
brands-with-google
https://businessmirror.com.ph/2020/10/29/shopee-creates-new-shopping-experience-
for-consumers-entrepreneurs/
https://blog.boxme.asia/how-shopees-marketing-strategy-steps-up-on-sea-sale-events/
https://www.moneymax.ph/personal-finance/articles/lazada-vs-shopee-review
PRODUCT STRATEGY
E-commerce started flourishing in the Philippines more evidently ever since the
pandemic radically altered everyone's life. Due to the implementation of community
lockdowns and limited operations, many enterprises have temporarily, and in some
cases, have officially shut down their businesses which had a significant impact on
people's livelihood as well as on purchasing activities of consumers. As a result,
consumers looked for an alternative way to shop in which e-commerce took place.
Many Filipinos have been increasingly dependent on online shopping for their
necessities and pleasures, which they can accomplish using ones' gadgets and the
internet where the purchased item will then be delivered right to their home. This
manner of shopping is perceived to be more convenient than going to physical stores
given the situation.
Shopee offers a wide array of product lines in its platform, starting from home
and living, electronics, beauty and fashion, and many more. When it comes to Line
Stretching, Shopee has considered a two-way upward market stretch where
businesses/sellers in the Shopee platform offers an affordable price on the products that
they sell to their target customers, and at the same time there are also
businesses/sellers who offer premium or expensive prices to their high-end customers.
Here are the Product Strategy of Shopee in order for them to be one of the leading e-
commerce platforms in the Philippines
Shopee typically has lower pricing than its competition, notably on electronics,
clothing, toys, and luggage. Shopee has gained the title "Online Divisoria" among Pinoy
internet shoppers for selling lower-priced things. Sellers on Shopee can lower their
pricing because they only pay a minimal commission charge.
Shopee also features a feature called Lowest Price Guaranteed (LPG). If buyers
locate the identical product at a cheaper price from Shopee's list of approved rivals,
which includes Lazada and Zalora, they will get 1.2x the amount of the price difference
in Shopee coins.
c. Guarantee Customers through order protection
One of the goals of Shopee is to satisfy their customers through online deals
such as bundle promos and discounts like Percentage discounts for items with a lower
price range; Amount discount that is applicable for items in the mid to high price range,
to provide the appearance of a larger discount; and a Special bundle price that is
applicable for a group of items that is offered at a fixed price. Free shipping vouchers
are also one of the popular promos of Shopee which can be applied when checking out
an order. Free shipping encourages customers to shop since shipping fees tend to be
quite expensive depending on a consumer’s location. Shopee also offers ShopeePay
Exclusives, Flash Sale, Lowest Price Guaranteed and Shopee Double Double Sale,
these discounts and promos help shoppers to save money and to get better value from
their purchase product.
References:
Online Shopping Site? Https://Www.Moneymax.Ph/Personal-Finance/Articles/Lazada-
vs-Shopee-Review. Retrieved November 20, 2021, from
https://www.moneymax.ph/personal-finance/articles/lazada-vs-shopee-review
Seller Education Hub. (2019, August 7). Shopee. Retrieved November 24, 2021, from
https://seller.shopee.ph/edu/article/284
PRICING STRATEGY
**Develop pricing strategy/ies for your marketing plan to induce customers to try/buy
more of your chosen company's products/services (ex. seasonal discount schemes like
price discounts, freebies, etc.).
Shopee is all about online deals, discounts, and big promotions. When it comes to
establishing large discounts and promotions, Shopee usually goes all out. Compared to
other e-commerce platforms, in order to attract massive customers, Shopee takes a
step further by developing a pricing strategy in collaboration with the brands and sellers
to guarantee that the customers can get the things that they want at a price that they
can afford.
The Shopee Double Double Sale or also known as the “Shopee Monthly Sales”
like the 9.9, 10.10, 11.11, 12.12 have dominated online businesses at the beginning and
end of each month, reminding their customers of the approaching sales activities that
will occur on the Shopee platform. Many people anticipated and are looking forward to
these monthly sales because they are overloaded with affordable deals, discounts, and
promos that help people to save more money. During these sale festivals, Shopee
features amazing deals and promotions just like Prizes Day, Vouchers Day, Flash Deal
Sale, Shopee Mall Sale, and many more. Shopee offers diverse sales and promotions
on its platform, the reason why many customers are being captivated is that they can
have an opportunity and take advantage of the large discounts and promotions from a
variety of local and international brands and sellers when they purchase the items in
bulk orders.
Payday Sale
Shopee also launched their Payday Sale that occurs every 15 th and 30th day of
the month, allowing Filipinos to anticipate the payday shopping with the same
excitement and expectation as to their monthly sale big discounts. The Payday Sale
offers a more rewarding shopping experience and makes the most of every “A-Kinse”
with amazing Php 1.00 deals on a wide range of items and, 20% cashback vouchers
that allow customers to receive cashback in the form of Shopee coins. For example, the
original price of perfume is 100 with shipping fee of 50 pesos. As mentioned above, that
Shopee offers Piso deals you will get the perfume for only 51 pesos. Many consumers
are looking forward to this Piso deal because they can save 50% of their money.
The Flash Deal Sales are a limited-time promotional event on the Shopee
platform. Customers may purchase various things from a wide array of categories and
brands – locally or internationally at a lower price or a massive discount price for a
limited time during this daily flash sale, allowing buyers to save a lot of money on their
purchases. For example, every day Shopee will add a fresh stock of the items that are
to be offered in specified timeslots (12:00 MN, 12:00 NN, and 6:00 PM). This strategy
aims to attract customers to buy on the spur of the moment the items that they are
eyeing because, unlike ordinary sales where it can last for how many days, the flash
sale strategy only lasts for a limited time.
Free Delivery
Just as with any sale, the customers also benefit in some way; whether it's a
lower sales price, free shipping, free add-ons, and coupons/vouchers have been an
effective way to reduce the price of the things being purchased. Shopee also provides
free shipping, so that the consumers may utilize this free delivery option for a limited
time and can also apply discount coupons for their every purchase. Every month, a
coupon code is being distributed, which the customers may redeemed on the main page
of the website and application.
ShopeePay
References:
To help you develop your Marketing Campaign, you may use the table below as your
guide.
Objectives Promotion Message Media
Strategies
To increase the Online and The use of online and social Facebook,
market's awareness Social Media media marketing is one of the Instagram,
of the brand and the Marketing prominent tools used in YouTube,
products/services marketing campaigns. Tiktok, etc.
available on the Posting an online
platform as well as advertisement or marketing
to attract prospect campaign can help to reach a
customers through large number of people,
the use of social especially those who are
networking sites. active internet users. This
kind of strategy is very
effective for e-commerce
platforms like Shopee due to
the growing amount of
internet users, making them
the main target market of
such strategy. Furthermore,
partnering with social media
influencers help boost the
brand’s visibility and attract
larger audience wherein such
influencers encourage their
followers to try the brand.
To attract new Sales Shopee also uses the sales Shopee
customers and to Promotion promotion strategy to inform app/website
stimulate sales from the market about the
the old ones. To
inform the people products and services
about the available in the platform
availability of the where they also give
product/service that discounts, coupons, gift
the business offers.
vouchers, and several other
benefits in order to attract
new customers, maintain
their loyal ones and recapture
those that they lost. These
massive price deductions and
benefits further stimulate the
market's purchasing activity
in order to maximize the
business's sales volume.
To offer excellent Mobile Shopee identified mobile as a Smartphones,
online shopping Marketing growing trend and the way tablets,
experience through forward for e-commerce in the Shopee app,
the use of
smartphones and Southeast Asian region from the text messages
tablets. start. It worked right away on
improving the user experience
and engagement through the use
of smartphones and tablets.
According to Shopee, internet
shopping must adapt to meet the
needs of customers who grew up
talking, cooperating, and
enjoying themselves on mobile
devices. Shopee's mobile-first
strategy enables them to
capitalize on the predicted
sustained increase in mobile
subscriber adoption.
According to Shopee,
smartphones orders now
account for over 95 percent
of all orders placed on the
platform. In response to this
demand, Shopee now offers
a complete online shopping
experience through its
downloadable app where
buyers can browse products,
place orders, pay for them,
and track the status of their
deliveries. Sellers can use
the app to create listings,
upload photos and videos of
their products, monitor shop
performance, collect
payments, and track
deliveries using integrated
logistics and payment
capabilities at the same time.
To provide Events and Shopee is not just a platform Facebook,
entertainment and Experience for buying and selling but Twitter,
recreational also for entertainment and Instagram,
activities to its
consumers. recreation as well. Shopee YouTube,
Prizes is a feature where TV
users can play games commercials
(Shopee Candy, Shopee and shows
Bubble, Spin & Win, etc.) and
win bigtime prizes. Shopee
also hosts events such as the
9.9 Super Shopping Day TV
Show Special and 12.12
Birthday Sale where, aside
from the upsized benefits and
promos, famous KPop
groups like Twice and TXT
perform for their fans.
Recreational activities and
entertainment events like
these boost customers
enjoyment and satisfaction
given the experience that
such events bring to them.
Furthermore, another fun
perk brought by Shopee is
that you can get a chance to
meet your favorite KPop idols
through video call by
purchasing their album on the
platform.
Sales Promotion
Shopee uses promotional guides on how to easily redeem discounts, coupons, and
other benefits which can be found from the participating merchant stores.
Mobile Marketing
Shopee uses mobile marketing allows consumers and sellers to experience online shopping
through its downloadable app. Shopee also send text messages to offer discounts, status of
their order and status of online payment in order to be secure and to engage more customers
Seller Education Hub. (n.d.-b). Shopee. Retrieved December 14, 2021, from
https://seller.shopee.ph/edu/home
Amadora, L. (2021, April 12). Shopee gives back to the Filipino community. Manila Bulletin.
the-filipino-community/
The Task
Your group's task is to design your own Distribution Strategy for your Marketing Plan.
Considering our current set-up in the ‘New Normal’, what placement or distribution
strategy would you recommend? How do you intend to use the online platform in the
distribution of your product/s/service/s? Who will be your partners in delivery, logistics,
payment, etc.? Take into consideration what particular online platforms your customers
prefer. Include in your submission the explanation of the process.