PTM, Product and Pricing Strategy of the 3 leading e-commerce platform in the Philippines

1. Shopee’s Product
and Pricing Strategy
Outpacing Competitors in the E-Commerce Race
https://www.linkedin.com/in/kaypioquinto-jimenez/
https://www.linkedin.com/in/teresachen666/
https://www.linkedin.com/in/mark-angelo-hosaka-b62040165/
https://www.linkedin.com/in/ronsapaulasantosmd69/
Group 2 V84 Marketing Management
Ateneo Graduate School of Business
Masters in Business Administration in Health

2. Mark Angelo Hosaka
Aspiring Entrep
Kay Pioquinto
Jimenez
Cerebral MD
Ronald Santos
Broken Heart
Fixer
Teresa Chen
Better Healthcare
Solutions Provider
#MaRKayTING
Group 2 Members:
https://www.linkedin.com/in/mark-angelo-hosaka-b62040165/
https://www.linkedin.com/in/ronsapaulasantosmd69/
https://www.linkedin.com/in/kaypioquinto-jimenez/
https://www.linkedin.com/in/teresachen666/

3. OBJECTIVES
Z
Y
X
Shopee has become the leading E-Commerce Platform
outpacing its competitors.
Shopee has Unique Selling Proposition for its
Primary Target Market.
Shopee was able to penetrate its market thru various product
and pricing strategies.

4. Topic Outline
Primary Target Market and Unique Selling
Proposition of Shopee and its Competitors
Existing Product and Price of Shopee and its
Competitors
Conclusion
Appendix
I.
II.
Key Adjustment on Product and Price
Strategy due to COVID-19
III.
IV.
V.

5. Primary Target Market and Unique
Selling Proposition

6. Shopee’s Primary Target Market
Tech-savvy, working class, Filipinos, 25-35 y.o
Class C, “Bargain hunters”
“Side business” to supplement their income
Spend most of their time on their PHONES
Salary workers, considering or just starting
a family
I. PTM and USP of Shopee and its Competitors

7. Needs,Wants, and Demands
Shop at ANYTIME and ANYWHERE
FLEXIBLE ways to pay
HASSLE FREE, FAST delivery at the doorstep
LITTLE to NO SURCHARGE for delivery
DAILY NECESSITIES
I. PTM and USP of Shopee and its Competitors

8. 2020’s Unique Selling Proposition
“Sino ka man, nasaan ka man, nandito
ang Shopee para sa iyo”
Willie Revillame as Brand Ambassador
Partnership with the popular TV show Wowowin
I. PTM and USP of Shopee and its Competitors

9. “Sino ka man, nasaan ka man,
nandito ang Shopee para sa iyo...”
Emotionally driven message
HOPE and COMFORT
Provide and deliver regardless of
LOCATION or SOCIAL STATUS

10. 15 to 25 age group “The
Allowance Economy”
Need to carve out their IDENTITY
Social media darlings and influencers
“Go where your heart beats” slogan
Primary Target Market
I. PTM and USP of Shopee and its Competitors

11. #NasaLazadaYan
Emphasis on AVAILABILITY and
VARIETY
All You Want and
All You Need
Unique Selling Proposition
Mimiyuuh as brand ambassador
I. PTM and USP of Shopee and its Competitors

12. Primary Target Market
35-45 years old, primarily Female, class A and B
“Brand-Conscious” and meticulous with QUALITY
Corporate workers or appearance is integral to their work
Credit card users
Eco-Enthusiasts
I. PTM and USP of Shopee and its Competitors

13. Unique Selling Proposition
Heart Evangelista as brand ambassador,
exemplifies the traits the company wants to
convey..
Emphasizes SUPERIOR QUALITY of
its products.
EXCLUSIVITY
LUXURY and POWER
I. PTM and USP of Shopee and its Competitors

14. PTM
Comparison
Demographics ❏ 25-35 y/o
❏ Class C
❏ Salary workers
❏ 15-25 y/o
❏ Single
❏ “Allowance Group”
❏ Students
❏ Out of College Jobs
❏ 35-45 y/o
❏ Females >>Males
❏ Class A & B
❏ White collar
professionals
❏ Executive Positions
Psychographics ❏ Budget Conscious
❏ Sideline Hustlers,
❏ “Tech-Savvy”
❏ Multiple Social Media
❏ “Trending- Followers”
❏ Ambitious
❏ Sophisticated
❏ “Brand-Conscious”
❏ Critical shopper
Behavior ❏ High Spender during
payday
❏ Splurges during
bonuses
❏ Cost over Quality
❏ “Self-Centered”
spending
❏ Purchases items to
“FIT-IN”
❏ Credit card users
❏ Scrutinize quality and
design
❏ “Social-Responsibility”
Advocate

15. I. PTM and USP of Shopee and its Competitors
Company Comparison
Parent Company Sea Group Rocket Internet/Alibaba Kinnevik AB/Rocket
Internet
Year Established 2015 2011 2012
Business Model Hybrid Business to
Consumer and Customer to
Customer
Primarily Business to
Consumer
Smaller segment Customer
to Customer
Business to Customer

16. Company Comparison
Platforms ❏ Website
❏ Mobile Apps
❏ Website
❏ Mobile Apps
❏ Website
❏ Mobile Apps
❏ Retail Store
Slogan “Sino ka man, nasaan ka
man, nandito ang Shopee
para sa iyo”
“Nasa Lazada yan!” “Home of the Best
Brands”
Services ❏ Shopee Mall
❏ Shopee University
❏ Shopee Pay
❏ Laz Mall
❏ Lazada Influencer
Program
❏ Lazada Wallet
❏ Z-Live
❏ Virtual Dressing Room
I. PTM and USP of Shopee and its Competitors

17. Existing Product and Price
Strategies

18. Shopee’s Product Strategy
II. Existing Product and Price of Shopee & Competitors
Service Differentiation
✔ Ordering Ease Simple interface and wide
variety payment options
✔ Delivery
✔ Customer Training targeting
3rd party sellers

19. Product
Levels
Core Benefit Online platform to buy and sell
various goods
Online platform to buy various
goods
Online platform to buy clothes
and accessories
Basic Product Mobile app, Website Mobile app, Website Mobile app, Website, Retail
store
Expected
Product
❏ Multiple payment options
❏ Competitive prices
❏ Wide range of goods
❏ Prompt Delivery
❏ Return and refund policy
❏ Product Review and
Feedback
❏ Multiple payment
options
❏ Competitive prices
❏ Prompt Delivery
❏ Return and refund policy
❏ Product Review and
Feedback
❏ Authentic products
❏ Wide selection of
Brands
❏ Latest Fashion Catalog
❏ Prompt Delivery
❏ Return and refund
policy
Augmented
Product
❏ Free Shipping
❏ Fast Delivery
❏ Discounts and Rebates
❏ Lowest Price Guaranteed
❏ Customer Education
❏ Free shipping
❏ Fast Delivery
❏ Discounts and Rebates
❏ Partnership with
Influencers
❏ Discount and Rebates
❏ Eco-friendly Products
❏ Augmented Reality
❏ Lifestyle and Fashion
Blog
II. Existing Product and Price of Shopee & Competitors

20. Shopee’s Price Strategy
II. Existing Product and Price of Shopee & Competitors
The Leader in Cost Saving Purchasing Online
✔ Lowest Price on general goods and
branded merchandise.
✔ Allowing sellers to do QUANTITY DISCOUNT
✔ LOWEST PRICE
GUARANTEED
PROGRAM

21. Setting the Price
Steps
Objectives Maximum Market Share Product Quality
Leadership
Determining Demands Price Sensitivity
Estimating Costs
Total & Average Costs
Analyzing Competitors
Value-Priced
Traditional Pricing
(High price, High quality)
II. Existing Product and Price of Shopee & Competitors

22. II. Existing Product and Price of Shopee & Competitors
Setting the Price
Steps
Selecting Pricing
Methods
Value Pricing Perceived Value Pricing/
High-Low Pricing
Selecting Final Price ❏ Average Relative Quality
❏ High Advertising Budget
High Relative Quality
High Relative Advertising
Adapting the Price Geographical
Price Discounts ❏ Quantity
❏ Functional
❏ Seasonal
❏ Quantity
❏ Functional
❏ Seasonal
❏ Special Event
Pricing
❏ Cash Rebates
❏ Psychological
Discounting
❏ Seasonal

23. II. Existing Product and Price of Shopee & Competitors
Benefit Positioning Matrix
Factors
Convenience
Easy Order Transaction
Fast Delivery
Website Reliability
Information about Goods
LEGEND: Gray- ABSENT; Brand Color- PRESENT

24. II. Existing Product and Price of Shopee & Competitors
Benefit Positioning Matrix
Factors
Payment Security
Low Price
Easy Navigation Site Design
Personalized Customer
Service
LEGEND: Gray- ABSENT; Brand Color- PRESENT

25. Price to Quality
Matrix
Low Average Good Excellent
Very High
High
Average
Low
Brand Positioning Map
II. Existing Product and Price of Shopee & Competitors

26. Key Adjustment in Products & Price
Strategies due to Covid-19

27. Covid-19 Pandemic is reshaping brand engagement with
consumers
Build brand resiliency during crises
Innovate to continue value pricing
III. Key Adjustment in Products and Price Strategies due to COVID-19
Keeping the Momentum Going

28. What Consumers Want from Brands
During Pandemic
RECONNECTION with the MINDS towards WELLNESS
Support the CONNECTION of MIND and SPIRIT
III. Key Adjustment in Products and Price Strategies due to COVID-19
Socialize in NEW WAYS
Time for a BREAK and ESCAPE

29. Key Actions Shopee Can Do For
Their Customers
Express CONTINUITY
III. Key Adjustment in Products and Price Strategies due to COVID-19
Feature CRISES MANAGEMENT
Highlight GENEROSITY and
SOLIDARITY

30. ● Provide MORE CUSTOMIZABLE, PERSONALIZED
and ENGAGING EXPERIENCE
● Leverage DATA and ARTIFICIAL INTELLIGENCE
● Augment CYBER SECURITY and DATA PRIVACY
III. Key Adjustment in Products and Price Strategies due to COVID-19
Recommendations
1 STRENGTHEN the VALUE of SHOPPING for Customers

31. III. Key Adjustment in Products and Price Strategies due to COVID-19
Recommendations
2 SUPPORT for their SELLERS and BRAND PARTNERS
● STRENGTHEN its PARTNER MERCHANT
ECOSYSTEM
● UPDATE new functions of SHOPEE SELLER
CENTER
● PROVIDES range of DATA and TOOLS for Shopping
Insights

32. III. Key Adjustment in Products and Price Strategies due to COVID-19
Recommendations
3 STRENGTHEN PRICING STRATEGY
● CONTINUE being a VALUE-PRICED LEADER
● Improve TARGET COSTING to achieve desired
profit margin
● Never LOSE-SIGHT of Competitors’ “Going-Rate
Pricing”

33. III. Key Adjustment in Products and Price Strategies due to COVID-19
Recommendations
3 STRENGTHEN PRICING STRATEGY
● Ameliorate PROMOTIONAL PRICING in
Essential Products
● Reduce Pricing in FAR-FLUNG and POOR
COMMUNITIES
● EMPOWER marketers on FINAL PRICING
Strategy

34. III. Key Adjustment in Products and Price Strategies due to COVID-19
Strategies of
● Providing more Seamless Omni-Channel
experiences
● Delivering Customer-1st Service Solutions
● Creating Online-to-Offline experiences
● Increasing Cyber Security
● Ramping up of “Flash-Sales”

35. III. Key Adjustment in Products and Price Strategies due to COVID-19
Strategies of
● Launched ESSENTIAL products
● EXTENDED Customer Service Chat hours
● Branding Pivot to include the EVERYDAY BRANDS
● ADOPTED Omnichannel Approach to target consumers

36. Conclusion
Shopee, Lazada and Zalora have their own Unique Selling
Proposition to reach out their Primary Target Market
Shopee and Lazada utilizes value-pricing to maximize market share
Zalora uses perceived value pricing and high pricing to maintain its
Product Quality Leadership
Our group has recommended product and pricing strategies to
Shopee on how to cope with Covid-19 Pandemic

37. Shopee’s Product
and Pricing Strategy
Outpacing Competitors in the E-Commerce Race
https://www.linkedin.com/in/kaypioquinto-jimenez/
https://www.linkedin.com/in/teresachen666/
https://www.linkedin.com/in/mark-angelo-hosaka-b62040165/
https://www.linkedin.com/in/ronsapaulasantosmd69/
Group 2 V84 Marketing Management
Ateneo Graduate School of Business
Masters in Business Administration in Health

38. Appendix
https://www.linkedin.com/in/kaypioquinto-jimenez/
https://www.linkedin.com/in/teresachen666/
https://www.linkedin.com/in/mark-angelo-hosaka-b62040165/
https://www.linkedin.com/in/ronsapaulasantosmd69/
1. https://www.businessinsider.com/shopees-digital-inclusion-
strategy-e-commerce-growth-in-southeast-asia-2020-11
2. https://www.edb.gov.sg/en/business-insights/insights/earlier-
rather-than-later-lazada-s-strategy-to-lead-sea-s-e-commerce-
space.html
3. https://www.campaignasia.com/article/how-zalora-axa-and-
carousell-maneuvered-covid-19-with-grace/461413
4. https://www.womeninretail.com/building-better-brand-
communication-during-and-after-covid/
5. Marketing Management 15thEd Kotler,P.;Keller,K.;2016
6. https://www.simplypsychology.org/maslow.html