Report business communication topic beu’s marketing strategy

EXECUTIVE SUMMARY The following report will analyze and develop the proposed marketing strategy for our new e-commerce platform - BeU to compete with Tiki.. With the aim to keep the mark

TRƯỜNG ĐẠI HỌC KINH TE

University of Economics

REPORT BUSINESS COMMUNICATION

TOPIC BeU’S MARKETING STRATEGY

Teacher : Lam Minh Quan

Vo Thi Giang Bach Thai Han Tran Le Ngan Suong Nguyen Trung Luong

Da Nang, December 6th 2023

EXECUTIVE SUMMARY The following report will analyze and develop the proposed marketing strategy for our new e-commerce platform - BeU to compete with Tiki With the aim to keep the

marketing plan on track and bring high efficiency, BeU must clearly understand the

ecommerce market, its competitors and customers Besides, BeU also develops and

innovates products to meet the increasing needs of customers Firstly, about market and competitors research, it can be seen that VietNam has a potential and vibrant B2C ecommerce market which is very fiercely competitive with many giant platforms such

as Shopee, Lazada, especially Tiki Secondly, we will introduce BeU - a platform specialized beauty and care product with unique features compared to Tiki One of those features 1s virtual makeup try on which helps customers find products that suit

their characteristics However, the feasibility of the product, the challenges and risks for BeU in the product introduction need to be considered After all the research,

finally, we propose the marketing strategy which has an important impact on the development of BeU The purpose of this is to promote products to customers, increase brand awareness and increase sales BeU effectively uses communication tools including online and offline channels to convey messages and product values to

target customers

TABLE OF CONTENTS

II B2C e-commerce platform market in Viet Nam 2

li cá 2

2 E-commerce market trends in Vietfam 5c 22 2212211253 12313551 1118112222 xe 2

3 Competitive landseape of TIKI - - 12011211111 121 12 21122111111 111281111821 khay 3

4 Opportunities and challenges for e-commerce market in Viet Nam 4

AL, Opportunities ae 4 4.2, Challenges 5

1 Detailed description Of BeU - ác 1 112211211121 111 1111121112011 111 1181111111111 x xay 5

3 UnIque features and benefits - - c2 211121122212 211111111111111111 111211 8k re 6

4 Market Introduction stfaf€Đ1€S - L1 1201221121 1111 1111211111111 11110111182 ke 6

6 Potential challenses and rIsks - ¿2 222 22112111321 1211 1211521121111 15511 1182 xe 7

I0 c0 1 dẲỶẢỐ 7

2.1 Search enpine optimization (SEO) 0 2011212221122 112 111111111811 re 8 PÿÄ® niên e.- 8 2.3 SocIal medla marlK€tIHØ - 2022111211211 121 11211011101 1111 1111111111111 8 kg 8

3.3 Events and sponsorshIps c1 12112211211 121111 1111111112 11 81128110111 cay 9

TABLE OF FIGURES

Figure 1 Digital payments GTV Vietnam 2019-2025 (Statista, 2023)

I Introduction

The B2C e-commerce market in Vietnam is increasingly growing With great

development potential, the market is becoming more and more vibrant and

competitive with the participation of many large domestic and foreign enterprises like Tiki In that context, customers have many choices, so the question 1s how to attract customers and make them choose BeU?

To be able to do that, BeU 1s required to promote and develop marketing strategies For new e-commerce platforms like BeU, marketing activities are extremely important because it helps BeU become popular to many customers, build and develop its brand,

create a competitive advantage over Tiki, thereby helping BeU increase revenue

However, in order for marketing activities to be effective, BeU needs to clearly understand the market, customers as well as its competitors, and then come up with appropriate marketing strategies and plans which are aligned with BeU’s overall goals

For that reason, this report will present in detail about the marketing strategy that BeU

implemented to compete with Tiki The report includes 3 main contents: the research

of the market and competitors; product proposition and marketing strategies

ll B2C e-commerce platform market in Viet Nam

1 Market research

The e-commerce market in Vietnam is growing significantly According to data analytics company GlobalData forecast, the e-commerce market is expected to increase from 9.4 billion USD in 2022 to 17.3 billion USD in 2023 Moreover, the Vietnam e-commerce Market size 1s projected to increase to USD 21.59 billion by

2028 (FINANCE, 2020)

2 E-commerce market trends in Vietnam

Digital payment: Digital payments become the fastest-growing and convenient way for people to pay for goods and services Vietnam digital payments got 82 billion

US dollars in gross transaction value in 2021 (Statista, 2023) And they are expected

to generate US$23.99 billion in total transaction value by 2023 (Vietnam, 2023) It is also projected that the gross transaction revenue of these digital payment services in the nation will reach 143 billion US dollars by 2025 (Statista, 2023)

143

2019 2021 2022* 2025*

Figure I Digital payments GTV Vietnam 2019-2025 (Statista, 2023)

Young population: According to the data from the World Bank, Vietnam’s

population is about 98.9 million people in 2023 (Algorithm, 2023) According to

statistical data, in Vietnam, two generations of Millennials (25-38 years old) and Gen

Z (18-24 years old) are combined into MillennialZ, which currently account for 47%

of the total population of the country (45 million people) (An, 2021) It makes

Vietnam become one of the youngest populations in Asia

Customers’ demand: Customers’ demands are increasingly personalized which

is suitable for their preferences, needs and budget They like unique, creative, high-

quality products/services Customers also care about sustainable products and services

that are socially and environmentally friendly (Phan, 2023)

3 Competitive landscape of Tiki

“+ Strengths

Logistic infrastructure: Tiki attracts customers by providing fast and quality

delivery service Tiki has an average time of only 1.6 days over the nation, and can

deliver within 2 hours in Hanoi and Ho Chi Minh City In addition, Tiki continuously

invests in the efficiency of logistic infrastructure by expanding warehouses in many

big cities in Viet Nam, including Ha Noi, Ho Chi Minh City, Da Nang, Especially,

Tiki has an effective TIKINOW system which can resolve more than 3000 orders per

day (Mar, 2021)

Brand awareness: Tiki has succeeded in identifying its brand to customers

Tiki started up selling books but after more than a decade, Tiki has developed more

and more with a lot of different kinds of products However, books are still unique

products of Tiki, helping Tiki attract and retain customers Tiki has created a

reputation in the field of selling books When customers want to buy a book, they

often think of Tiki (Mar, 2021)

“* Weakness

Loss income: Tiki 1s facing fierce competition with Shopee, Lazada, Tik Tok

Shop, so Tiki is still spending a lot to gain market share Tiki had accumulated losses

of nearly 1,800 billion dong by the end of 2019 Furthermore, Tiki also had negative

equity of more than 354 billion dong To maintain operations, Tiki had to borrow from

other outside sources, with payable debt increasing 3 times from 2017 to 2019 (Mar,

2021)

Increase products’ price to more discount: Buyers want high-quality products

with low prices but the sellers want to sell quickly and make high profits Tiki often

applies the marketing trick of fake discounts for many products It means the price

after discount may still be equal to or even higher than the market price These fake

discounts make customers feel cheated (Mar, 2021)

4 Opportunities and challenges for e-commerce market in Viet Nam

4.1 Opportunities

Consumer market: The young population is growing, and they have early

interaction with smartphones They adapt quickly to technology and have knowledge

of using mobile phones and the internet This makes it easy for them to engage in

many e-commerce platforms in Viet Nam (Dung, 2022)

Popular online transactions: Online transactions are becoming increasingly

popular, making online shopping easier According to a Visa report, in Vietnam, 65%

of consumers now carry less cash than before, and 76% of consumers are using

electronic wallets Collaboration between leading e-commerce platforms and giants in

the electronic payment industry like VNPay, MoMo, and ZaloPay will further boost

the demand for online shopping and cashless payment methods (Dung, 2022)

Government support: In May, the Vietnamese government passed the

National E-commerce development plan The goals of the plan are improving E-

commerce platforms in the economy and towards the overall goals of developing the

digital economy and promoting national digital transformation In addition, the

government promotes a digital society without using cash, accounting for 50% in

2025 (Trade, 2020)

4.2 Challenges

Security and safety concerns: Online payment systems and payment risk

management are still evolving It means buyers fear that their credit card information

transmitted over the internet may be exploited or used unlawfully by malicious

parties Vietnam is a developing country so technical challenges are also barriers to

ensuring security and safety (Dung, 2022)

Foreign dominance of Vietnamese e-commerce platforms: The dominance

of foreign e-commerce platforms forces local e-commerce platforms to compete

fiercely with foreign counterparts Being dominated also raises questions about market

control and user data For example Tiki originated as a Vietnamese e-commerce

platform but currently it has over 90% of its shares and capital owned by foreign

entities (Dung, 2022)

Logistics infrastructure: Efficient product management and delivery to

customers require a robust logistics infrastructure, including warehouses, delivery

services, and inventory management However, the VietNam transport infrastructures

have not yet developed, and logistics faces many difficulties, leading to congestion,

delay, high cost and low effectiveness (VIRAC, 2023)

III Our Product

1 Detailed description of BeU

The new e-commerce platform is specialized in cosmetics and skincare products,

aiming to provide a wide range of high-quality beauty products from different

suppliers The platform will feature well-known and emerging brands, offering a

selection of skincare, makeup, and cosmetics With a commitment to quality and

variety, Beu is designed to be a trusted place, providing customers with a pleasurable

beauty experience that matches with their unique styles and preferences

2 Target customer

BeU recognizes the diverse needs and preferences of beauty enthusiasts It will

cater to both the everyday consumer looking for popular brands and the beauty seeker

looking for innovative products By carefully separating the product selection, the

platform ensures relevance to different demographics, making beauty accessible to

everyone

3 Unique features and benefits

Customized beauty profiles: customers can create personalized beauty profiles

that take into account their skin type, preferences, and desired outcomes

Virtual makeup try-on: where customers can experiment with different

makeup products and find out what best suits their preferences Allowing them to have

a convenient experience with zero effort

ingredients along with potential risks such as allergies and side effects

4 Market introduction strategies

We know a new young ecommerce platform that entering the market will be

very difficult in the beginning So we aim at strategic partnership, starting with

collaborating with both established and emerging beauty brands to diversify the

product range and attract a wider audience Leverage influencers and beauty experts,

KOLs to create awareness and credibility Offer exclusive promotions and early

access to incentivize the initial user base Establish a community forum for users to

share experiences, reviews, and beauty tips

5 Feasibility analysis

Viet Nam has a young cosmetic and beauty market, but recently it is one of the

most vibrant cosmetics markets in the area because Vietnamese consumers are

becoming more conscious of personal care and cosmetic items Therefore, taking

advantage of the increasing demand for beauty - a potential market value of US$ 2.3

billion in 2021 (Pham, 2022), BeU attracts and keeps customers by adding services

such as virtual makeup try-on, while increasing competitiveness with other

ecommerce platforms The e-commerce market in Vietnam is booming along with the

7

growing demand of customers We believe that the product will be in a stable position

to enter this market

Through a thorough analysis of consumer needs such as learning about their

habits, preferences and concerns, BeU 1s designed to respond to this urgent need The

potential for BeU's success is quite large because it provides intuitive experiences,

suggestions based on customers’ preferences, and diversifies the search bar BeU

implements preferential policies for users thereby building loyalty from them and

leading to revenue growth In short, BeU is considered possible because it solves the

problems of target customers, provides the best experiences for them, and proves its

competitiveness

6 Potential challenges and risks

The top issue that BeU is concerned about 1s the product really received when it

1s released? When we surveyed market needs, we carefully considered things that

customers really care about, but when releasing products whether their needs are the

same as in the past or there are other factors that themselves don't know about The

next problem is the budget To bring the product to more people, we have to do

promotional campaigns in many forms, always creating new content to get more

attention This can take weeks to months If advertising doesn't work, it will cost a

lot

IV Marketing strategies

Goal: Promote the product to customers, increase brand awareness and increase

sales

Target customer: Millennials (age 25-40) and Gen Z (age 11-25)

1 Marketing mix

Product: Products on the e-commerce platform are very diverse and cheap It

will be continuously improved and regularly updated with new goods according to

trends

Price: Prices on the e-commerce platform are very flexible and depend on many

market factors But it's usually mainly due to the following three factors: cost,

customer value and competitors All will have big data technology to help and adjust