MKT420 Assignment 3 MARKETING MIX 4P (SHOPEE VS LAZADA) PDF

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GROUP ASSIGNMENT: MARKETING MIX 4P (SHOPEE VS LAZADA)...

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FACULTY OF BUSINESS MANAGEMENT PRINCIPLES AND PRACTICE OF MARKETING (MKT420) GROUP ASSIGNMENT: MARKETING MIX 4P LECTURER’S NAME: PN NORSIAH AHMAD PREPARED BY NAME

STUDENT ID

NURUL SYAMMEEM BINTI SUHAMI

2020837184

TUNKU FATIN AFIQAH BINTI TUNKU JAAFAR

2021998971

KHADIJAH YASMIN BINTI IBRAHIM

2020806122

NOOR EZRIN ERLYNA BINTI NOOR EDDYSHAM

2020207348

MUHAMMAD ALIFF BIN ROSLI

2020524199

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TABLE OF CONTENT

1. Introduction ……………………………………………………………………….. 3 2. Online Marketing Mix ……………………………………………………………. 4 Product/Services ………………………………………………………….. 4 Price ………………………………………………………………………… 6 Place ……………………………………………………………………….. 7 Promotion ………………………………………………………………….. 11 3. Conclusion ………………………………………………………………………… 14 4. Reference ………………………………………………………………………….. 15

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INTRODUCTION

Online shopping has become a popular way of shopping for consumers since the internet has declared a takeover especially in this pandemic situation. Online shopping platform not only brings a great number and variety of merchandise to buyers, but also offers more business activities and market. It has also helped online small business to grow up in a pandemic situation. Most of business collapsed during pandemic situation, due to movement control order which instruction by government. But, they have another alternative to promote and sell their products by using an online platform. More people say that they prefer online shopping over conventional shopping these days. By online shopping also can reduce Covid-19 disease. Only least people will go out to buy certain things that unavailable at online store so that can reduce the spread of the disease. Through online shopping, more people can buy faster and can get the product at a lower price. Online shopping platforms like Lazada and Shopee always make promotional and voucher. The buyer can get discount from there. Before buyer want to buy a product, they also can see the review and comment from other buyers. They also can chat and ask about the product before they start to buy. So the buyer will be more satisfying to buy the item.

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Comparison of marketing mix in business online (Shopee and Lazada)

Marketing mix: Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Marketing Mix of Shopee and Lazada analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains their marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company. Let us start the comparison of marketing mix between these two business online:

Product: The product strategy and mix in Shopee and Lazada marketing strategy can be explained as follows: There is an official Shopee Mall in Shopee, made up of various brands. More than 2,000 businesses are the official brand in Shopee Mall. Items offered at Shopee Mall are 100% Authentic things and a return period of 15 days, and consumers are free to send products. Little connected items are mostly produced. In Shopee Mall, for example, numerous brands are available, such Tefal, Penasonic, Khind, and many more kitchen and household equipment. Good quality assurance is generally used for products offered at Shopee Mall and Preferred Sales. The product is satisfied consumers as most of the goods matches the description of the product. Where the goods sent to our customers does not fit the Shopee online platform descriptions, the custodian might opt to return the merchandise to the buyer and reimburse it. Shopee Guarantee provides service services to safeguard users by paying you (seller) to confirm receipt of the purchase. Shopee Guarantee is also an option. Once you agree with your order, you are released when you click on the 'Order received' button (or once Shopee Guarantee period ends). Shopee Guarantee ensures that purchaser paid the full price of the 4

purchased product(s) before notification to ship the product is received (s). You will then have to send it off within the time frame given forth in the product lists so that the order is not automatically cancelled. Lazada Group is Southeast Asia’s leading eCommerce platform. With a presence in six countries, among them are Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Lazada connect this vast and diverse region through our technology, logistics and payments capabilities. Lazada offers their respective customers with one hundred percent product authenticity, security, assured quick shipment, and provide a return policy up to 15 days in their service. The target market of Lazada consists of middle to higher income which this group tends to shop for a good quality product LazChoice for services. The low-price daily destination of Lazada will deliver unsatisfactory pricing, the lowest assured bargains and the consumers. Lazada also promised quality and free delivery.

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PRICE

Figure

1

Dyson

V11

fluffy

cord-free

vacuum

cleaner

LAZADA

Figure 2 Dyson V11 fluffy cord-free vacuum cleaner SHOPEE

As we all know, Shopee and Lazada are two e-commerce platforms for selling and buying online. Those two companies seem to compete against each other, especially in pricing. The pricing battles somehow attract the users to get both apps downloaded. For an instance here are the price comparison for the Dyson V11 fluffy cord-free vacuum cleaner. The price stated for the Dyson V11 by the Lazada are RM2,599.00. While RM2,424.00 offered by Shopee. The price difference quite obvious as it goes around RM175.00. However, there are always pro and cons in buying. Lazada price is shown in Figure 1 a bit higher than the Shopee but there are 15 days return policy. This policy is for someone who feels the item received does not suit or comfort for them under terms and conditions. This is somehow a great offer if you want to try something or if the color you ordered seems doesn’t suit your 6

taste, you can just return to them with guaranteed. On the other hand, Shopee which has the lowest price as stated in Figure 2 also has its strategy in pricing. They do offer free delivery for the items which is saving a lot for the delivery cost. Based on 2016 survey by Walker Sands, 90% of consumers would happily shopping if there is a free shipping offer. Moreover, to grab more users’ interest there are also RM5 OFF shop vouchers given out by the shop. This really a great deal for the consumers. Apart from this, both platforms nowadays do offer the consumers their installment plan which vary based on the products and they also have the e-wallet which make consumers easier to check out and pay. Based on the research, there are always price battling between these two. Some products are worth to get from Lazada and some are worth to purchase in Shopee.

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SHOPEE Distribution channels:-

LAZADA Distribution channels:-



App store



App store



Play store



Play store



Website



Website

Fulfilment by Shopee (FBS):-

Fulfilment by Lazada (FBL):-

Storage capabilities:-



Shortened fulfilment time



Faster shipping



Fenced zone



Solves the issue of limited storage space



Express delivery



Cold room



No fees for the first 3 months



Quality packaging



Bulky warehouse

Shopee Supported Logistics Partners:



Lazada Delivery Options:-

Standard delivery



LEL Express

-

1-3 days within West Malaysia



Ninja Van

-

1-7 days within East Malaysia



Poslaju



Grab (coming soon)

Overseas delivery -

9-25 days

-

2-6 days on normal days

Instant (5 hours)

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C) PLACE

SHOPEE

Shopee is one of Malaysia's most popular marketplaces. There are several significant aspects that may contribute to this market place's popularity as an online buying destination. First and foremost, Shopee has created three major distribution channels for their customers' convenience: the App Store, Play Store, and their website. They will be able to communicate with their potential customer as a result of this. This is one of the ways they can gather data such as name, phone number, and email address and use it for marketing purposes. People always say that the database is king, and with this kind of access, the sky is the limit for them to meet their monthly sales targets. Shopee has also made the decision to build their own fulfilment centre. They call it Fulfilment by Shopee (FBS). With the establishment of this warehouse, they will be able to simply solve their dilemma of where to store all of their products and arrange them in a logical manner. Everything can be managed from a single location, which can help shorten fulfilment times. This also gives a vendor a chance to overcome their "lack of room" issue. Simply manage the order, and Shopee will take care of the rest at their warehouse. For all parties, it is a win-win situation.

One of the most effective ways to entice sellers to utilise their services is to provide them for free for the first three months. With this offer, the seller has a fantastic opportunity to use the service and make good cash before having to pay the fees. It's essentially a trial for them to get a feel for and comprehend the FBS flow. In terms of delivery, customers are given the option of selecting their preferred method. Shopee has selected a small number of local delivery services to join its distribution channel. Each courier service charges a different delivery fee and takes a varied amount of time to deliver the item. If you choose standard delivery, you should expect your order to arrive in 28 days, whilst expedited shipping will take 1-3 days. Of course, given this is simply an estimate, it must take into account their services at the moment. As a result, we as customers must be wise and accept that it may take longer for them to ship our orders.

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LAZADA

Lazada, like Shopee, is another online marketplace where most Malaysians will go to acquire their desired merchandise. With today's technology, Lazada is also utilising the digital platform to communicate with their customers. Apps can be downloaded through the App Store for iPhone users and the Play Store for Android users. This allows them to identify whether there is a pattern as to which type of phone user will be their primary target audience. They also provide another option, which is their website, which allows them to reach a larger audience.

This availability of distribution channels demonstrates that they are aware of

current trends and are prepared to change and adapt in order to remain relevant in this competitive business. They also do not want to miss out on providing their very own fulfilment warehouse which called as Fulfilment by Lazada (FBL). One of the most important aspects of their business is that they want to give high-quality packing for each order. As a result, their customers will be happy and satisfied with their purchase. This will boost the likelihood of attracting brand-loyal customers. Another reason why Lazada is a safe place to order products online is that they have three different types of storage rooms, each representing a different level of product. First, they have a zone known as the Fenced Zone. All of the high-value items are maintained and protected in this room. This room is only accessible to approved employees. A cold room is ideal for any product that needs to be kept at or below 25 degrees Celsius to maintain its freshness and quality. Let's imagine a customer order a large item, which will be stored in a vast warehouse. With these three different storage rooms, it's apparent that Lazada takes great care in managing products and upholds their reputation as one of Malaysia's most trusted e-commerce companies.

Another important aspect of e-commerce is to provide speedier shipping and to deliver the product as soon as feasible. The majority of Malaysian consumers believe that they should receive their products in a timely manner, and Lazada has seen this trend. In most cases, they will provide faster shipping, and the consumer may anticipate to receive their purchase within 3-5 days, depending on where they are located. They've teamed up with a few local courier services, like LEL Express, NinjaVan, and Poslaju, to give customers a variety of options. These courier services each have their distinct approach to the delivery procedure, which will be a major deciding factor for consumers. 10

PROMOTION

Shopee’s has a tradition of innovative and surprising ways of marketing their products. Since their service is mostly marketed digitally, they have also encouraged the marketing of their services in E-commerce platform. In order to introduce their services into the market, Shopee mostly uses TV advertisements, online sales, vouchers and influencers. Shopee use YouTube, Twitter, Facebook and other social media in advertising their services and build an irresistible desire for customers to do online shopping through internet advertising. A lot of their commercials featuring famous stars have been aired and they have all been really successful with the masses. Shopee always open for free shipping offer. Sometimes, the company gives a 50% discount when it comes to sales like 1.1, 2.2, 3.3 and so on. At other moments, this E-commerce platform is introducing schemes like a coin collecting to boost up the sales for their user and free shipping for their customer by using the coins. Often lucky coupons are often offered to active customer by daily check in on their apps. Subsequently, to assessing their own strengths and weaknesses, Shopee has also been an authority on their competitors. The one area in which the other competitors are actually unable to succeed is the shipping policy. Its door-to-door shipping policy is amazing. Almost everyone knows that Shopee will deliver the products in a proper way unless we can return back the product to the seller. Thus, the advertisement committee is heavily engaged in the marketing and promotions campaign to raise revenue.

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Lazada also focus on social networking such as Facebook, Instagram, microblogging (Twitter), photo sharing (Instagram), video sharing (YouTube, Facebook Live), a website and Apps on the phone. Social networking is the use of internet based social media sites to stay connected with customers. Social networking may have a social purpose or business purpose, such as Facebook, Twitter, Instagram, YouTube etc. Social networking has become an important basis for marketers seeking to engage customers. Usually, a business company will use social networking to promote and advertising their product through the online media platform. Shopee and Lazada use their social media accounts to advertise and promote their product and to engage with the customer. Other than use social media to promote and advertise, the customer can also directly tweet or posting any feedback in positive or negative on their official website, Facebook, Twitter, Instagram etc, they will take action on the customer feedback and improve their products and services. Shopee and Lazada also have collaborated with foreign celebrities such as Lee Min Ho (Lazada), Cristiano Ronaldo (Shopee), and Blackpink (Shopee) which is making a huge gain of the customer. This is how they conduct their business through online platform.

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Lazada's promotions will not only meet the price demands of shoppers but also the need to entertain and connect friends, thereby stimulating them to interact more and stay with Lazada. Meanwhile, Lazada's rival, Shopee, has another way to solve the same problem that attracts users. In the report about Shopee in March, the market research company consultancy said, Shopee focuses on mobile applications from the beginning and builds a user interface around this goal. This makes the mobile shopping experience with Shopee very fast and intuitive. Not only that, Shopee also focuses on and mobile campaigns for each market country.

Basically, both of these companies use the same e-commerce and online media platform. Both also have Shipping fee and directly sending to their customer. The customer can purchase any product through their website, their own apps on phones, and from any seller that they are trusted. This has shown that both companies use online media platform wisely because customers can choose their seller. Shopee report positioned it No. 1 in online deals on that market. While Lazada scored a score with its shrewd media programs, especially in the web-based media space, this is a classification whose deals remain generally determined by the centre TV and limited time movement.

Two non-appointment Shopee and Lazada trading floors all focused on promoting promotional activities exclusively for mobile applications. It can be seen that these two companies have captured a trend in South Asian that consumers will gradually shift from online shopping by desktop to mobile devices. This is also a phenomenon that has been happening in China and has been successfull. However, the implementation of Shopee and Lazada shows many separate calculations as well as a creative beyond the existing framework. Consumers now have more choices; more needs and it will not be easy for ecommerce floors to keep customers on their applications. However, for the seller who wants to start their e-commerce business, Shopee seller requirements look much lighter and easier. It’s because it starts the selling and testing the market water temperature without too many fees occurred. Although Shopee has a smaller market as opposed to that of Lazada.

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CONCLUSION

The marketing mix is critical for businesses to develop a successful marketing strategy. The product's element, price, location, and advertising all have an impact on each other. When a corporation implements the marketing mix, it can meet the company's marketing objectives by satisfying customers' needs and desires. The marketing mix is a critical component in the development of a business market. The product and services will not be able to reach their plan and target market without it. With the passage of time, it is probable that individuals will want to purchase items in a more convenient manner. At the moment, there is a marketplace such as Shopee and Lazada. Each platform has its own set of advantages, and as consumers, we have the option of selecting the ideal platform for our needs. Shopee and Lazada are two big e-commerce companies that compete in the same market: online shopping. Despite the fact that they operate in the same business environment and serve the same target market, their income levels differ slightly. To be successful in the market and to be the first leading e-commerce, it is critical to maintain product standards and meet consumer expectations for defect-free product quality, so that the pr...