MPP T222WSB 1 interim report group 1

MPP T222WSB 1 Interim Report Group 1 Table of Content 1 Company Overview 4 1 1 History 4 1 2 Ownership 5 1 3 Organization structure 6 1 4 Company size 6 1 5 Product portfolio 7 1 6 Financial position.

5.1.3 Lack of a sense of competition and achievement: 32

5.2 Marketing objectives: 32

1 Company Overview:

1.1 History:

The first Lazada e-commerce domains went live in 2012 in five Asean nations:Indonesia, Malaysia, the Philippines, Thailand, and Vietnam The company's business strategyinvolved selling products to shoppers directly from its own storage Later, in 2013, itincorporated a framework which is a marketplace model To satisfy the demands oftransportation and delivery of goods, Lazada established a logistics infrastructure systemnamed "Lazada Express" in Vietnam in 2015 The next year, Lazada Group became AlibabaGroup's region's flagship, and as a result, Lazada Vietnam then gained access to Alibaba'stop-notch, cutting-edge facilities To help the seller community adapt and apply online businesstools effectively, Lazada initiated the Lazada University program The Lazada Seller Centerstore management system, which is an online platform that enables merchants on the platform

to manage store operations was later introduced by Lazada Vietnam in 2017 LazMall - anauthentic store system throughout Southeast Asia - was founded in 2018, and it has steadilygrown to become the region's leading online shopping mall, connecting shoppers with morethan 32,000 authentic brands offering high-quality products (Tuoi Tre, 2022) In 2019, creating

"Laz Live" in response to customers' growing requirements for entertainment while utilizingAlibaba's in-app entertainment capabilities To accommodate customer demand and assistVietnamese companies in finding markets for their goods, Lazada Vietnam established anadditional fresh food category in 2020 Last year, this platform introduced LazMaster, thenation's first real-time training initiative managed by an e-commerce platform, which pairs upnewbie vendors with professional shop owners so they can grow and learn from one another Toprovide merchants with vital updates on regulations, actions, events, and noteworthy initiatives,Lazada also developed the online information channel called "Lazada360.vn" And by 2030,Lazada Vietnam seeks to assist sustainable, successful domestic SMEs in serving millions ofcustomers, and provide Vietnamese people with jobs in the ecommerce industry

1.3 Organization structure:

In the Vietnamese market, Mr James Dong is holding the CEO title Following theperson holding the most clout in the local market are the Chief Officers that play different rolesbut possess significant authority The names are Ms Nguyen Thi Thuy Hang as the ChiefMarketing Officer, Ms Trang Pham as the Chief Commercial Officer, Mr Vu Duc Thinh as theChief Logistic Officer, Mr Sang Tran as the Chief Customer Officer, Mr Dang Anh Dung as theChief Finance Officer, and Ms Van Thi Hong Hanh as the Chief People Officer (Appendix A)

Lazada's core value encompasses three components: logistics, technology, andpayments With the slogan "We get it there," Lazada completely controls the supply chain with asingle click thanks to its end-to-end logistics capabilities and global partner network For

technology, the harness investigates both existing and emerging technologies in order toredefine the retail experience where customers come for both shopping and entertainment That

is concise in only five words: “A smarter way to shop” for the constantly developing andperfecting of Lazada in customer experience Along with the improvements in logistics andtechnology, the payments cost attention Lazada is gradually improving customer experienceand trust by ensuring "safe, seamless transactions" and is on its way to becoming SoutheastAsia's most secure payments and financial service infrastructure

1.4 Company size:

The company has +10,000 employees Currently, it accounts for 20.9% of the marketshare (2022), just behind Shopee (Khánh Minh, 2022) The number of goods sold on thisplatform has increased by an average of 150% per year, continuously from 2013 to 2021.Besides, Lazada boasts a strong development of the internal logistics segment (Tuoi Tre.,2022c)

1.5 Product portfolio:

Lazada is an e-commerce brand Therefore, its product is the Lazada platform itself,where the company acts as an intermediary, connecting customers with merchants to maketransactions Lazada diversified its range of product categories that can be sold on its market,from electronic products such as televisions, refrigerators, and smartphones to domestic goodslike clothes, healthcare, and childcare products Moreover, they offer authenticity-ensuredproducts on LazMall and offshore products on LazGlobal

Besides the variety of products offered on its platform, Lazada also provides a widevariety of choices for payment and shipping methods For instance, according to the LazadaGroup (2022), they offer seven different types of payment for transactions, fromcash-on-delivery to e-wallets (such as Momo and ZaloPay) In terms of delivery options, Lazadaoffers the three basic yet most common types of delivery, which are: standard delivery, expressdelivery, and economical delivery (Lazada Group, 2021)

On the other hand, Lazada focuses on enhancing the customer experience on theplatform through an intuitive user interface and a message system for sellers and customers.They also emphasize the importance of post-purchase services, as they act as an intermediaryfor product insurance and return products from the customer to the merchant

1.6 Financial position:

In the report of Tri Thuc Tre (2019), Lazada's revenue climbed from 1,100 billion VND to2,800 billion VND in the fiscal year that concluded at the end of March 2018 However, the lossnearly quadrupled from 1,200 billion VND to 2,150 billion VND, owing to a rise in finance andselling expenditures By consistently tolerating a loss greater than the industry, Lazada'saccumulated loss has reached more than 5,300 billion VND as of March 31st, 2018 According

to Metric.vn, Lazada would have a 20.9 percent market share in Vietnam's e-commercebusiness by the end of 2021, amounting to 12,539 billion VND

Despite the massive loss, Lazada's charter capital has stayed around 15 billion VND forseveral years According to Son M (2018), all operating funding is provided by the parent firm,Alibaba Group - which purchased 83 percent of Lazada shares in 2016 for 2 billion USD As a

result, Lazada does not need to be concerned about these losses because it has committed toreceiving an extra 2 billion USD in investment from Alibaba in early 2018.

2 Marketing situation analysis:

2.1 Macro environment (PESTLE):

Nevertheless, as a key engine of the nation's online economy, the industry has drawnsubstantial government investment and support for e-commerce platforms The Ministry ofIndustry and Trade has been developing and applying an array of measures, such as a certifiede-contract authority and guaranteed payment infrastructure for e-commerce (Nguyen H &Nguyen T, 2021) The measures are intended to ensure the healthy, transparent, andsustainable development of the market for online retail goods and services Director of iDEA Mr.Dang Hoang Hai (2021) underlined his conviction that Vietnamese pavilions on internationale-commerce platforms would open soon and become successful as a result of the collaboration

of the ministry and others, central agencies, localities, and the business community By 2025,the government hopes to have 55 percent of the populace engaged in internet purchasing(Nguyen C, 2021)

2.1.2 Economics:

First, Vietnam's economy is on pace for recovery, according to the government 5.03%GDP growth during the same time is predicted for the first quarter of 2022; while inflation isunder regulation Consumption expenditure increased by 4.28 % during the same time due to anegligible rise in the inflation rate and a rise in disposable income, demonstrating consumers'confidence and drive to make further purchases in the future Thus, Vietnamese customers'ability to afford more expensive, higher-quality items will probably rise along with their standard

of life Nonetheless, quality and brand features continue to be more important to consumersthan price when making purchases

Foreign Direct Investment (FDI) is the second factor During the same time the previousyear, FDI disbursements totalled US$4.42 billion, an increase of 7.8% This is a result of the

growth in commerce and manufacturing in Vietnam as more major global manufacturers havechosen to relocate their production facilities here in order to take advantage of the generousgovernment incentives for attracting investments This is advantageous for the growth ofe-commerce in Vietnam, which is heavily dependent on the capacity to draw investment money

to platforms inside the web-based business ecosystem and top-notch human resources

Other factors are related to trends in the unemployment rate, a shift to e-commerce in

2021, e-commerce consumer behaviour, and logistics First of all, Vietnam's unemployment ratedropped to 2.46% in the 2022's first quarter and is forecast to trend around 3.3% in 2022 and2.9% in 2023, which would result in a rise in the demand for e-commerce goods as more peoplestart earning money Second, for some specific product categories, there are more pronouncedindications of a transition from traditional trade to e-commerce/online channels, which reflectssome of the changing working and residing practices that the Vietnamese consumer hasadopted in the epidemic However, during the COVID-19 epidemic, the Vietnamese consumerdoes not seem to have made a significant transition from Traditional Trade channels to Modernones This may be a result of the less strict lockdowns Vietnam implemented as well as theattractiveness of traditional trade channels (closeness & convenience) Third, gettingVietnamese consumers to make recurring online purchases would take much more than justoffering discounts or coupons since they are picky and are increasingly concerned with thequality of their customer journey Lastly, despite the claims that e-Commerce would providecustomers with better convenience and more affordable costs, the absence of a robust logisticsecosystem keeps trying to prevent consumers from using it frequently Particularly, over 40% ofthose who responded to Deloitte's The Vietnam Consumer Survey 2021 stated thatdelivery-related issues were the biggest deterrent to completing online purchases

Regarding the final factor, the substantial expansion of e-commerce is supported andencouraged by the high penetration of internet and smartphone users in Vietnam's digitaleconomy (Kemp, 2022)

2.1.3 Social:

Vietnam is in the golden population, where 69% of the Vietnamese are of working age(Ministry of Health, 2020) While creating great value for the business environment, they alsocreate a high demand for various products, creating opportunities for merchandisers to thrive inthe Vietnamese market Additionally, the young workforce, particularly Generation Z, hasrecently been identified as potential customers for e-commerce brands as they are tech-savvyand have high purchasing power

Moreover, after the lockdown of the COVID-19 pandemic, many people started to befamiliar with online services as they put more emphasis on safety and health Therefore, theVietnamese people, especially those in urban areas, are becoming more and more aware ofe-commerce sites According to Asia Plus Inc (2022), 71% of the Vietnamese population inurban areas are digital consumers, in other words, have purchased a product online in the last

12 months

On the other hand, due to the increased functionality of smartphones, these devices arebecoming more and more the center of the daily lives of Vietnamese people According to AsiaPlus Inc (2022), digital consumers spend an average of 6.5 hours daily on smartphones in

2021, increasing by 1.4 hours compared to the previous year This creates a great opportunityfor e-commerce brands to attract customers to their market, as a significant part of e-commerceusers are from smartphones In 2020, mobile phone devices accounted for more than 59percent of all e-commerce users (Asia Plus Inc., 2020).

2.1.4 Technology:

Vietnam used to be one of the poorest countries in the world after a 20-year war.However, the country is currently undergoing a technology-driven transformation (Lazarus,2020) A report conducted by Google and Singaporean investment firm Temasek showed thatVietnam's digital economy South is rising more than 40% in 2018 It is because of technologicaldevelopments in Vietnam, that e-commerce platforms have emerged in the regional markets ofVietnam in which Lazada has the second largest market share of 20.9%, equivalent to 12,539billion VND (Quynh, 2022) It can be said that the rise of technology has changed theconveniences of consumers' lives Since Lazada's presence in the Vietnam market, customers

do not need to queue in stores to buy their favourite items, they just need to sit at home oranywhere with one "click” to be able to shop for items they like Without a doubt, paying a visit in

a store, the purchaser can only buy a fixed-price product Nevertheless, in the process of onlineprocurement, buyers can compare the price of a product to hundreds of distinct products(Yousaf, 2021) In addition, a survey conducted demonstrated that 57% of Vietnamese peopleswitch to online shopping more while 21% still maintain the habit of brick-and-mortar shopping.People who rarely shop online or never accounted for 9% (Appendix 1) In short, the technologyfactor has had a significant impact in the process of e-commerce platforms changing the buyingbehavior of consumers

2.1.5 Legal:

In terms of legal, all the shopping platforms must follow the decree No 52/2013/ND-CPdated May 16th, enacted in 2013 by the government It mentioned contract commitment,activities, operation management, safety and security transactions in e-commerce To bespecific, intellectual property rights protection has become one of the most considerableconcerns of e-commerce businesses since copyright infringement and counterfeit goods tradingare still occurring In this case, the government has been more strict in requiring shoppingplatforms to monitor and promptly handle illegal business acts, and it is prohibited to takeadvantage of e-commerce to trade fake goods The maximum administrative fine for intellectualproperty infractions is 500 million VND, while the administrative fees for acts of online trading incounterfeit and banned goods range from 20 to 30 million VND (Hoang, 2022)

2.1.6 Environment:

Vietnam has emerged as one of the ASEAN region's most promising marketplaces as aresult of the e-commerce industry's explosive growth As a matter of fact, the Vietnamesegovernment is crucial in fostering an environment that will allow the e-commerce sector tocontinue to thrive in the future According to the National E-commerce Development MasterPlan for the period 2021-2025, the Government has set a determined goal to become a countrywith a developed e-commerce market in the group of 3 leading countries in the Southeast Asiaregion On the way to achieving this goal, the Government has issued many mechanisms andpolicies For example, Decree No 52/2013/ND-CP on e-commerce (establishing a legal corridor

for e-commerce transactions to be conducted in a transparent manner, on the basis of faircompetition); Decree No 124/2015/ND-CP amending and supplementing a number of articles ofDecree No 185/2013/ND-CP on sanctioning of administrative violations in commercial activities,production and sale of goods counterfeit, banned goods and protect the interests of consumers;Decision No 689/QD-TTg approving the E-commerce development program for the period2014-2020 Thanks to the more comprehensive legal corridor, the e-commerce sector isincreasingly open with a wide range of models and businesses participating Vietnam has alsoconsistently reported a significant rise in both the number of customers shopping online and thevalue of those purchases It was estimated that the number of consumers shopping online in

2020 was about 49.3 million people with an average shopping value of about 240 USD perperson (Le, 2022)

2.2 Micro environment (Porter’s 5 forces):

2.2.1 Threat of new entrants:

2.2.1.a Industry growth rate: High

In any industry, incumbents compete with one another as rivals However, an expanding

or profitable market in a sector might draw new participants According to Quynh (2021),Vietnam's e-commerce sector is now the third-largest in Southeast Asia, with a turnover of $7billion USD by 2020 According to Google, Temasek, and Bain & Company forecasts, by 2025,Vietnam's e-commerce sector is expected to reach $29 billion, a 34 percent increase, thebiggest in the region With such a rapid growth pace, it will almost surely draw a slew of newrivals to the market

2.2.1.b Cost: Low

However, getting into the e-commerce market is not cheap According to Kinh (2019),the fundamental issue of existing e-commerce sites focuses on the issue of financial potentialwhen these enterprises are all generating big losses and will continue to lose a lot more topreserve its market share In 2018, both Lazada and its main competitor, Shopee, increasedtheir annual losses to Vietnam by over VND 2,000 billion.However, both Lazada and Shopeehave funding assistance from large foreign investment sources, particularly China, with majorfirms such as Alibaba, Sea Group and JD.com As a result, it is clear that new entrants into theVietnamese e-commerce business face significant challenges According to Van (2021),Vietnamese domestic enterprises have also attempted but failed to enter the industry, mostnotably the Vuivui.com e-commerce platform founded by The Gioi Di Dong but forced todissolve in 2018 owing to its inability to sustain big losses continually However, if there is alarge source of investment cash, it is conceivable to join this industry, which will createnumerous challenges for current firms such as Lazada, Tiki, Shopee, and others

2.2.1.c Brand Loyalty: High

According to Olive (1997), the customer loyalty model is an effective combination ofcognitive, emotional, purpose (purchasing purpose or need) and action (repetition) factors ofcustomer purchases In a quick survey of 513 e-commerce customers, the following resultswere obtained (Appendix C)

This indicates that an e-commerce site's consumer loyalty is low They frequently utilizemany e-commerce sites to engage in floor deals and make purchasing decisions Customers'

loyalty to the e-commerce platform is low when they may select which site to purchase based ontheir current demands.

2.2.2 Bargaining power of suppliers:

Since 2013, Lazada has been moving in the direction of a marketplace business model

As a consequence, Lazada functions like a store and rents out booths to its partners inexchange for a commission Due to the wide variety of goods and sellers on Lazada and theintense competition in the market, sellers have low bargaining power, giving Lazada the ability

to select their partners with ease Lazada Vietnam's retail e-commerce business is expected torise by 300%, from little under 14 billion USD in 2021 to 39 billion USD in 2025, according to thenation's E-commerce Industry Overview Report for 2021 To explain this growth, the reportnotes an increase in the number of new sellers on e-commerce platforms, which means moreand more sellers are looking to grow their business online The fact that Lazada has a strictquality control policy for the goods offered on its marketplace further lowers sellers' bargainingpower However, the cost of operating a store on Lazada is higher than that of othere-commerce platforms, and in addition to Lazada, there are other huge competitors like Shopee,Tiki, etc This will give sellers more bargaining power because they have more options and caneasily switch to another platform that offers the service at a low cost

2.2.3 Bargaining power of buyers:

Buyer power refers to the ability of a consumer to influence a firm's product quality,service standards, and pricing strategy Through client bargaining power analysis, opportunitiesand challenges in the e-commerce industry and the level of competition could be identified With

an estimated $8 billion in revenue in 2021, Vietnam is the 25th-largest market for eCommerce,and over 40% of the population are internet users (VNA, 2021a) By 2020, the new shoppingonline users had also risen from 77% to 88% It shows that Vietnamese users have a greatdemand for online shopping, with the number of visits to Shopee's website monthly being 53.2million and Lazada's is 18.6 million (Nguyen, 2022)

Lazada has many potential shoppers but also faces intense competition fromsurrounding competitors There are a variety of retailers from small to large sizes one-commerce platforms and many alternatives for customers to choose from when buying thesame product In particular, the sensitivity of the price level is also one of the deciding factorswhen customers always have a high demand for purchasing at the lowest price and are notafraid to switch from one platform to another to buy Customers only need a few searchmanipulatives to fulfill their wish, making low switching cost between e-commerce platforms.The purchasing power of buyers has significantly increased and is higher than ever It led toLazada having to burn a lot of money in communication activities and suffer losses to retainloyal customers and attract new buyers

2.2.4 Rivalry among present competitors:

2.2.4.a Industry population: high

According to Asia Plus Inc (2022), Vietnam is expected to have the highest growth foronline retail in Southeast Asia Therefore, besides domestic e-commerce brands, many foreignplayers have established their existence in the Vietnam market, competing harshly for market

share At the moment, the three brands Tiki, Shopee, and Lazada are at the top of the mostaccessed e-commerce sites (Asia Plus Inc., 2022).

Among every e-commerce brand, Shopee is the most successful player in theVietnamese market, as it has a 31% market share, nearly one-third of the whole market,followed by Lazada and Tiki consecutively However, no brand has a dominant position in themarket, and the e-commerce market is growing rapidly with numerous changes in market share.Therefore, the competition between existing brands is intense

2.2.4.b Investment intensity: high to very high

● Tiki: According to VietnamNet News (2021), the e-commerce platform Tiki hassuccessfully raised $258 million USD for future investment

● Shopee: Shopee belongs to Sea Group, which has Garena as the number one gamepublisher in Southeast Asia, profiting approximately 1.1 billion USD in the first quarter of

2022 (Sea Ltd., 2022) Moreover, SEA has an approximately 18.7% equity interestowned by Tencent, one of the largest technology companies in China (Tencent, 2022)

As a result, Shopee has strong financial support from its shareholder company overseas

to conduct multiple investments

● Lazada: Similar to Shopee, Lazada has become the regional flagship of the AlibabaGroup, as Alibaba has a total of 83% of Lazada’s shares Since then, Alibaba hasdevoted more than 5.6 billion USD to Lazada, helping the company to make investments

in Vietnam as well as other countries (Rosendar, 2022)

To sum up, the investment intensity of the three main players in the Vietnamese market

is high as all of them are financially supported by many big names around the world All three ofthem are on their journey to burn money to compete in the market

2.2.4.c Product differentiation: moderate to high

In customers’ perceptions, the three brands share the same idea of a generale-commerce brand that offers a variety of products online If there is any difference betweenthem, it would be the variation of product categories, prices, and platform reputation Shopeeand Lazada have an advantage of having international merchants, so they can providecustomers with a wide range of products However, Shopee’s pricing strategy is more favorable

to the customer, while Lazada has a better reputation for product quality (Viettel CyberspaceCenter, 2022) The domestic player, Tiki, has a less diverse marketplace but a high reputationfor delivering qualified products Little differentiation between brands creates moderate to highstress in the Vietnamese e-commerce market

2.2.4.d Ease of switching brands: high

Customers are willing to make an extra effort for better deals (Asia Plus Inc., 2022) Inother words, they may surf alternative platforms for price reference or wait for sales events tomake a purchase On the other hand, the purchasing procedure as well as the payment andshipping policies for many e-commerce brands are similar to each other Hence, customershave no difficulties making purchases on different platforms and have great ease in switchingbetween brands

To sum up, the rivalry between existing brands is intense because customers have theadvantage of brand switching, and little differentiation makes them less loyal to a specific brand

The competitors also have financial advantages because many big companies in the worldconduct investments to attract customers to their brands.

2.2.5 Threat of substitute products:

In Vietnam, the increasing level of internet penetration creates the right conditions fore-commerce businesses to develop strongly It can be seen that there are several e-commerceplatforms that have evolved in the Vietnam market: Shopee, Tiki, and Sendo These can beseen as burly competitors to Lazada in the e-commerce market In terms of eminence,e-commerce platforms provide the alike service and commodities Nevertheless, the websitetraffic of each type of e-commerce platform is distinctive In detail, Lazada has an admirablenumber of website traffic that second only to Shopee Up to now, the website traffic is as follows(Appendix F)

3 Marketing situation analysis:

3.1 Current target market:

Lazada customers come from different generations namely Gen Z, Gen Y & Gen X living

in rural areas, normal cities & urban areas

Primary target segment Students Financially independent

young people

students who frequently receive financial assistance from their family or have part-time work, leaving them with low or no income (under 5,000,000 VND).

Age: 22-25 Early career professionals whose income probably falls between 5 - 14 mil VND

Geographic Live in rural areas, normal cities & urban areas

Behavioural ● equipped with great knowledge of e-commerce

● e-Commerce and online channels for clothing and

footwear, leisure and holiday activities

● Frequent purchaser of smartphones, cosmetics, beauty

care products

● e-Commerce and online channels for clothing and footwear, leisure and holiday activities

● Preferred sources of information: Social media,

influencers and celebrities, Friends

● tech-savvy, and an adept user of mobile devices and social media

● Preferred social media platforms: Facebook, Instagram,

TikTok, YouTube, ZALO

● Highly impulsive purchasing

● “Reward hunters”: search for rewards and giveaways to

enhance their shopping experience.

● “Look look see see” shoppers: spontaneous and quickly

cart out a product that catches their eye.

● “Bargain hunters”: prioritize finding the best deals and

prices before making an online purchase.

● Follows sports, fitness, and clothing and footwear trends

● Care about job security & upskilling

Primary target segment Newly married couples & Financially independent young people

Mid-career professionals whose income probably starts from 14 mil VND

Geographic Live in rural areas, normal cities & urban areas

Behavioural ● equipped with great knowledge of e-commerce

● e-Commerce and online channels for education, leisure and

holiday activities, and transportation services

● Frequent purchaser of consumer electronics, leisure, holiday

activities

● Preferred sources of information: Social media, Online

newspapers, Friends and colleagues, Family, relatives

● highly tech-savvy, but is also comfortable with the use of offline purchasing channels.

● Preferred social media platforms: ZALO, Facebook,

Whatsapp, Linkedin

● Medium-level Impulsive purchasing

● “Look look see see”: spontaneous and quickly cart out a

product that catches their eye.

● “Bargain hunters”: prioritize finding the best deals and prices

before making an online purchase.

Psychographic ● Prioritize sports, fitness, and wellness

● is focused on priorities of career progression and family development.

● Concerns: Job security, Health insurance, Wealth accumulation, and investments

Secondary target segment Moms & dads with children under, at and over 6

Active Pre-Retirees whose income probably starts from 20 mil VND

Geographic Live in rural areas, normal cities & urban areas

Behavioural ● Practical and risk-averse

● equipped with a medium to low knowledge of e-commerce

● A medium to low level of tech-savviness

● leans towards the use of physical purchasing channels.

● Infrequent purchaser of consumer electronics and

household appliances

● e-Commerce and online channels for transportation

● Preferred sources of information: Social media,Online

news aggregators, Family and relatives, Friends and colleagues

● Preferred social media platforms: ZALO, Facebook

● “Look for value” shoppers: prioritize value over price

when shopping

Psychographic ● prioritize retirement planning and stable investing over

career progression

● prioritize practicality when making purchasing decisions

● Concerns: physical well-being, financial support for college-aged children

3.2 Current marketing performance (4Ps):

3.2.1 Product:

Lazada- one of the giants dominating the market share in Vietnam and South East Asiawhich has the coverage speed in plenty of media and is a prestigious intermediary betweensellers and buyers In order to be successful, it cannot deny that the marketing mix processcontributes to raising the brand awareness of Lazada in the customers’ minds

The marketing mix is a useful mean that assists the business activities in the rightdirection to target customers Commencing with the first “P” which is Production, the goal ofLazada become “ a big online supermarket”; therefore, it offers a variety of categories ranging:apparel, toys, cosmetics, equipments and electricity to household goods Further, Lazadaclarifies products into different types: convenience goods, shopping goods and so forth Bycategorizing products facilitate purchasers to find the items easily In addition, Lazada alsocommit its service which provide high quality as well as best-selling products, bonus numerousvoucher and strict delivery process

Perceptual map:

3.2.2 Price:

Lazada uses a competition-based pricing strategy when its price is significantlyinfluenced by competitors Under this method, Lazada will consider the price of a competitor'sproduct and then set a lower, higher, or equal price, depending on the current state of thee-commerce market Prices on LazMall are the primary elements that should be taken intoaccount Even though LazMall has fixed prices, Lazada frequently releases discount vouchersfor various product categories to increase competitiveness with other online shopping platforms.Additionally, Lazada regularly organizes promotional campaigns, and big deals, leading to manyLazada products being cheaper than the general market These promotional activitiesencourage consumers to regularly visit Lazada's website to update information or subscribe as

a member to receive periodic emails Otherwise, Lazada sometimes applies value-based pricingbased on the value the customers are willing to pay for its goods (Schone, 2020) By analyzinguser shopping data or conducting surveys, Lazada could determine the potential price thatattracts customers

3.2.3 Place:

According to Yee et al (2019), Lazada Group is an e-commerce firm that provides itsclients with a diverse selection of products and services The Lazada Group's initial businessstrategy of selling merchandise from warehouses has evolved into a marketplace model thatallows third-party retailers to sell products on Lazada's platform In addition, Lazada offers itsown delivery service called LEL Express to alleviate customers' negative shipping experiences.LEL Express is Lazada's last-mile delivery service, handling everything from collection throughsorting to delivery It demonstrates Lazada's progress in problem solving and dedication toenhancing the customer experience.In Vietnam, Lazada has developed a set of options thatmeet existing preferences while engaging customers in payments through intuitive solutionsthey can trust, such as COD, online banking, credit cards, e-wallet, (Appendix G)

3.2.4 Promotion:

With strong financial resources from the parent corporation, Lazada's marketingmethods are optimally and broadly used Lazada has employed a marketing plan that utilizesboth traditional and innovative media The activities can be categorized into 5 groups includingadvertisement, online and offline campaigns, direct marketing, sales promotion, and

endorsement marketing In terms of advertisement, Lazada selects Facebook and Youtube astheir two main communication and ad-running channels They also widely spread their messageusing internet advertisements and television commercials Lazada is the first e-commercecompany that brought the new advertisement technology - the 3D LED OOH to Vietnam andsuccessfully has drawn huge attention to the brand Moreover, Lazada heavily invests inendorsement marketing as they sponsor very big names around South East Asia to becometheir ambassador Regarding promotion and discount, they conduct daily, monthly, and yearlysales events and use vouchers, code, brand deal, and gamification as promotion tactics.Besides, they use direct marketing, specifically emails to send notification and discountvouchers to encourage new subscribers and retain loyal customers In addition to sales andimage building programs, the community initiatives run by Lazada assist the company develop astronger, better image, and greater interaction with the public.

Five years after coining the phrase "effortless shopping," Lazada renewed its brandimage with a new logo that has a heart logo mark and a regional campaign with the slogan "GoWhere Your Heart Beats." Whether a consumer is a vendor or a buyer, Lazada is raising itsposition in their minds beyond merely a transactional shopping platform to a lifestyle destinationthat may empower and progress hopes, dreams, and desires, according to Pierre Poignant, theLazada Group Chief Executive Officer In addition to the new marketing campaign, Lazadaintroduced an updated brand identity that has a more young, vivacious, and dynamicappearance The box, which may act in a variety of ways, stands in for the company's beatingheart (Uy, 2019) Other brand components include a fresh Lazada color scheme that capturesthe energy of shopping as well as a new logotype that is friendly and young for the digital era.Lazada's "shoppertainment" approach, which aims to consistently improve the shoppingexperience, supports the repositioning at that point (Uy, 2019)

Newestly, Lazada has unveiled its new brand proposition "Add to Cart Add to Life.",acknowledging that consumers no longer just purchase things for their intended function (Tan,2022) Lazada claims that this new brand promise embodies its conviction that eCommerce canenrich consumers' lives by fostering deep relationships and enduring experiences via theirpurchases According to the slogans "Add flavors to life," "Add colors to life," and "Add strength

to life," Lazada is more than simply a provider; their products accompany and commit your life tobeing fulfilled (Lazada, 2022) The debut of the curated interactive live content series LazLive+,which aims to bring together recognizable, genuine, and recognized professionals to offercutting-edge advice and skills with consumers, will complement the new brand promise (Tan,2022)

While Lazada chooses an self-confidence approach, Shopee emphasizes the price ofthe product to encourage purchasing Online purchasing, according to Shopee, should bestraightforward, uncomplicated, and joyful Shopee's advertisements frequently feature images

of coins, cash, or their catchphrase, "Gì cũng rẻ"—all things are cheap-along with calls to actionlike "Buy on Shopee," "Buy everything on Shopee," and "Let's buy, buy, buy, buy," showing thatshopping at Shopee does not make you too hesitant to choose because Shopee always givesyou the best deals Along with the symbolic colors of shopee - orange and red, symbolizingenergy, fun, and also represent the Asian good fortune symbol, according to the psychology of