group assignment digital marketing campaign lazada

From the collected data and information, we can easily perceive that Lazada is gradually losing market share in the competition between e-commerce platforms.. format through technology,

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1 Table of Contents

Table of Contents 1

Executive summary 2

I Introduction 3

1.1 Brief background of the organization/brand 3

1.2 Relative position of the organization in the market 3

1.3 Media presence and visibility of the organization 5

1.4 Digital Readiness 7

2 Key marketing communication problem(s) to be solved 8

3 Customer analysis 8

3.1 Primary Research of the target consumer 8

*Part 1: Participant Information 9

*Part 2: Consumer Behavior 9

3.3.4 Needs and Issues 14

3.4 Customer buying journey 15

4 Key strategic campaign decisions 17

4.1 Propose solutions for the interface 17

4.2 The communication model 18

4.3 Goals, metrics and KPIs 18

5 Campaign analysis 18

5.1 Channel strategy 18

5.1.1 Social Media (Facebook) 18

5.1.2 Online Video (Youtube) 19

2 Executive summary

Lazada is an e-commerce platform established in 2012, Lazada quickly became the leading e-commerce platform in Southeast Asia With a presence in 6 countries: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, Lazada offers customers a variety of products such as electronics, fashion, and food

This executive summary provides an overview of the Lazada e-commerce platform To better understand customer consumption behavior on the Lazada e-commerce platform, our team has conducted research through primary and secondary research, along with surveys in customer segments Our research is also collected through data analysis tools such as Google Analytics, Meta, YouTube Analytics, and Google Ads

From the collected data and information, we can easily perceive that Lazada is gradually losing market share in the competition between e-commerce platforms Our team also proposes campaigns that can help Lazada improve and attract a large number of potential customers

The campaign message is to help potential customers easily interest in and use the Lazada As well as helping Lazada have a more customer-friendly interface Communication strategy includes advertising campaigns on social media such as YouTube and Facebook The goal of the campaign is to increase brand awareness among the target audience, spark excitement and interest in the product to create buzz, increase customer engagement on social media, and ultimately, increase sales revenue A timeline and budget were created to ensure the plan was implemented effectively and efficiently Additionally, an evaluation and control plan has been developed to periodically evaluate campaign effectiveness, maximize results, and adjust tactics accordingly

3 I Introduction

1.1 Brief background of the organization/brand

Lazada was founded in 2012 by Maximilian Bittner, with the intention of establishing an Amazon-like business model in Southeast Asia to take advantage of the young and potential online consumer market here Lazada's e-commerce websites began launching in 2012 Initially, Lazada operated in 6 Southeast Asian countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam In 2015, the group Billionaire Jack Ma's Alibaba acquired Lazada, and since then Lazada is still owned by the Chinese Alibaba group Lazada is an e-commerce trading platform, providing products in many different industries such as furniture, phones, tablets, fashion, health care products, beauty products, toys and sporting goods With a presence in 6 Southeast Asian countries, Lazada connects a large and diverse region format through technology, logistics and payments capabilities.1

Lazada in Vietnam:

In March 2012, Lazada Vietnam was established, a trading platform specializing in e-commerce in the Vietnamese market Lazada Vietnam is currently headquartered in Ho Chi Minh City Not only is it located in the city center for convenient travel, but the headquarters is also designed according to the motto "work seriously, live happily"2 1.2 Relative position of the organization in the market

Market share and growth: In the first half of 2023, Lazada Vietnam's revenue is driven by many different sectors Notably, the beauty care field emerged as the leading field, generating revenue of more than 2.2 trillion VND Lazada Vietnam is headquartered in Singapore and operates as one of the leading e-commerce platforms in the country 3

According to Metric, this is thanks to the significant contribution from "rookie" TikTok Shop with a revenue of 25,000 billion VND in 9 months In the third quarter

1 Lazada Group (2022) Wikipedia Available at: https://vi.wikipedia.org/wiki/Lazada_Group (Accessed: 09 March 2024)

2 Lazada Việt Nam (2022) Wikipedia Available at: Available Link (Accessed: 09 March 2024)

3 Published by Statista Research Department and 2, N (2023) Lazada Vietnam: Revenue by sector 2023 Statista, Available at: Available link (Accessed: 09 March 2024)

Figure 1 Revenue of Lazada in the first half of 2023, by sector

4 alone, TikTok Shop is the unit with the second largest market share in terms of revenue in Vietnam, with more than 10,000 billion VND

During the period, Shopee still led with revenue of more than 43,700 billion VND, far ahead of Lazada in third place with 8,700 billion VND Two domestic e-commerce platforms, Tiki and Sendo, ranked 4th and 5th with revenue of 599 billion VND and 29 billion VND, respectively

Based on revenue results, Shopee holds 69% of the market share, TikTok Shop holds 16%, Lazada holds 11% and the remaining 1% belongs to Tiki This is the second quarter that TikTok Shop has maintained a large market share in Vietnam, far surpassing rival Lazada

Previously, the second quarter of 2023 was the first quarter to record TikTok Shop's revenue exceeding Lazada's revenue in the e-commerce market

Figure 2 E-commerce Market share in the second quarter of 2023 4

1.3 Media presence and visibility of the organization

Lazada is actively active on today's popular social networking platforms such as Facebook, Instagram, and YouTube; Of which, Lazada has gained about 31 million followers on Facebook and about 524 thousand followers on Instagram This is a pretty big one

4 Top+Players+in+Vietnam%E2%80%99s+e-commerce+market (no date a) VietnamCredit Available at: https://vietnamcredit.com.vn/news/top-players- -vietnams-e-commerce-market_15031 (Accessed: 10 March in2024)

5 Figure 3 Lazada's Facebook March 2024

Figure 4 Instagram of Lazada, March 2024

Lazada also actively deploys livestream activities and sale programs with a variety of products In particular, the LazRewards program attracted a high amount of interaction with 85,345 interactions (LazRewards is a Lazada promotion where you can collect LazRewards codes and use them as a discount on items across the entire platform)

Below is a ranking of the popularity of e-commerce platforms operating in Vietnam

6 Figure 5 According to the e-commerce newsletter January 2024

You can see that according to the information above, Lazada is ranked 2nd in the rankings with a Total Score of 2 7.9 in December 2023 (Total Score is the sum of attitude score, discussion market share score, interaction score and diffusion level) Meanwhile, Shopee is occupying 119 points, 4 times the popularity of Lazada.5

According to CafeF, the majority of e-commerce market shares still belong to time players in the industry, of which Lazada ranks 4th in the popularity ranking of websites in 2022 with 16.79 million visits/month, ⅕ compared to Shopee with 84.52 million visits/month.6

long-5advertisingvietnam.com 2024 Bản tin ngành Thương mại Điện tử tháng 01/2024 | Advertising Vietnam [ONLINE] Available at: https://advertisingvietnam.com/ban-tin-nganh-thuong-mai-dien- -tuthang-012024-p23725 [Accessed 9 March 2024].

6cafef.vn 2024 Chiến trường TMĐT 2022: Lượt truy cập Shopee gấp 5 lần Lazada, tất cả đều lỗ triền miên và nguy cơ mất doanh thu vào tay TikTok Shop | Cafef [ONLINE] Available at: Chiến trường TMĐT 2022: Lượt truy cập Shopee gấp 5 lần Lazada, tất cả đều lỗ triền miên và nguy cơ mất doanh thu vào tay TikTok Shop

Figure 7 Popularity ranking of e-commerce websites Figure 6 Most popular E-commerce sites, 2022

7 From the above figure, we can see that Lazada is losing market share in the e-commerce industry to the next giant, Shopee

1.4 Digital Readiness

With a team of carefully selected and trained staff, along with modern and advanced technology platforms, it allows the effective implementation of marketing campaigns Lazada is always ready to plan methodically and proactively, launching campaigns to gain huge interactions to reach potential customers

Here are some examples of Lazada's successful marketing campaigns:

- Campaign "11.11 - The biggest shopping festival of the year": This campaign has attracted millions of customers to participate and brought huge revenue to Lazada

- "Lazada Super Party" campaign: This campaign is a combination of entertainment and shopping programs, attracti ng a large number of viewers and increasing brand awareness for Lazada

- "Livestream sales" campaign: Lazada is one of the first e-commerce platforms to apply livestream sales, and has achieved great success

With previous marketing campaigns as a stepping stone, Lazada is always ready to launch campaigns to attract potential customers and compete with other e-commerce platforms

2 Key marketing communication problem(s) to be solved

Based on recent reports, we have observed that Lazada’s market share in the end of 2023, which has declined by 7% compared to the end of 20227 Upon investigation and review of their recent campaigns, we have identified several issues in marketing communication that they are facing Below are some of the issues they are encountering, which we also intend to address in this plan:

- There is a lack of compelling campaigns, resulting in them being overshadowed by current competitors like Shopee

- The brand image and color scheme have not been clearly defined, leading to customer confusion

3 Customer analysis

3.1 Primary Research of the target consumer

To investigate the reasons behind the decline in Lazada's revenue market share over the past year (from late 2022 to late 2023), we have created a small survey on Google 7 tapchicongthuong.vn 2023 Thị trường thương mại điện tử quý III/2023: Một ngành hàng đạt doanh thu hơn 8.700 tỷ đồng [ ONLINE ] Available at : https://tapchicongthuong.vn/bai-viet/thi-truong-thuong-mai-dien-tu-quy-iii2023-mot-nganh-hang-dat-doanh-thu-hon-8700- -dong-114369.htmty [Accessed 9 March 2024]

8 Forms, consisting of three sections: basic information, purchasing behavior, and experience The basic information section will reveal whether the respondents are part of Lazada's target customer base Lazada's primary target customers are individuals aged 18 to 40, regardless of their income or employment status The second section, focused on purchasing behavior, will shed light on how the respondents have been using Lazada and whether they are currently using the platform or not The third section, insights, will provide us with an understanding of the factors that have led respondents to stop using Lazada Below are the results of the survey

*Part 1: Participant Information

Figure 8 Pie Chart om Surveyfr

Figure 9 Pie Chart om Survey fr

Based on the chart, we can observe that the majority of participants fall within the 18-40 age range (78.9%), which is Lazada's target customer demographic Additionally, 15% of the participants are under 18 years old Out of the 71 participants, 64.8% are female, and 33.8% are male

9 *Part 2: Consumer Behavior

- “ Anh/ chị thường tìm kiếm thông tin sản phẩm qua đâu?”/"Where do you typically search for product information?”

Figure 10 Bar Chart from the Survey

Out of the 71 responses, we can observe that the majority of participants search through YouTube (87.3%), followed by Facebook (76.1%), TikTok (66.2%), Google (49.3%), and finally, Instagram (12.7%)

- “Bao lâu thì anh/ chị mua một lần ( tần suất)?”/ "How often do you make a purchase?"

Figure 11 Table of Data in the Survey

Click to view the entire data

Based on the results, we can see that out of 68 respondents who have used Lazada before, 38 of them only make purchases 1-3 times per month, while only 11 out of 68 make purchases more than 4 times per month, and 19 out of 68 did not specify a frequency With these findings, we can infer that Lazada may be losing appeal among its customers, as the majority only make purchases 1-3 times per month, which is a relatively limited frequency

10 - “Tổng số tiền anh/chị đã sử dụng để mua hàng trên Lazada là bao nhiêu”/"How

much money have you spent on purchases from Lazada?"

Figure 12 Table of Data in the SurveyClick to view the entire data

Based on the data, we can observe the following:

+ 23 out of 68 respondents have spent less than 1 million VND on Lazada since they started using the platform, which is a relatively limited amount

+ 15 out of 68 respondents have spent between 1-3 million VND, which can be considered an average spending amount

+ 18 out of 68 respondents have spent more than 3 million VND on Lazada

+ 25 respondents did not specify their total expenditure

These findings suggest that a significant portion of users (23 out of 68) have limited their spending on Lazada to less than 1 million VND, indicating a potentially low engagement or limited value derived from the platform Additionally, the majority of respondents (38 out of 68) have spent 3 million VND or less, further highlighting the challenge in driving higher customer spending on the platform

11 Figure 13 Table of Data in the Survey

Click to view the entire data

After synthesizing the responses from individuals who ceased utilizing Lazada in 2023, our analysis reveals that more than 11 out of 15 participants expressed dissatisfaction with Lazada's user interface, deeming it suboptimal Furthermore, 9 out of 15 participants found the platform challenging to use Additionally, 7 out of 15 participants reported discrepancies between the products received and the depictions on the application, indicating a lack of consistency in product representation

*In summary, through this survey, we can deduce that the primary factor contributing to the decline in market share and revenue for Lazada stems from user attrition Participants ceased utilizing the platform due to dissatisfaction with the user interface, which they perceived as unsuitable and challenging to navigate Additionally,

14 3.3 Customer persona

3.3.1 Age

According to Lazada's report in 2023, in Vietnam:

- 52% of Lazada users belong to the Millennial generation (born from 1981 to 1996)

- 38% of users belong to Generation Z (born from 1997 to 2012) - 10% of users belong to Generation X (born from 1965 to 1980).8- Lazada is increasingly attracting younger users

- Lazada focuses on products commonly purchased by women, including fashion, cosmetics, household items, and childcare products

- Lazada frequently organizes promotions and attractive discounts for women However, the number of male Lazada users is rapidly increasing This indicates that Lazada is attracting more and more men to online shopping

3.3.3 Income

Due to Lazada's large customer base with diverse needs and a variety of suppliers, customer income varies widely, ranging from low to high

3.3.4 Needs and Issues

Each customer segment has different needs, and sellers provide unique solutions based on these needs and issues Therefore, the problems and needs of Lazada users are diverse, and the solutions for consumers involve buying and selling various items to address their specific issues

8 www.lazada.vn 2024 Báo Cáo Tài Chính | Lazada.vn [ONLINE] Available at:

https://www.lazada.vn/products/bao-cao-tai-chinh-i657086761.html [Accessed 3 March 2024]