Student: Đỗ Đức Viê êt ID: 1311250024 Class: TMAE306.3
LAZADA CASE STUDY 1. History and development Lazada Group was founded in 2011 by Rocket Internet in Singapore with the intention of establishing "the Amazon.com of Southeast Asia" to take advantage of the nascent online consumer market and Amazon's weak presence there. Rocket is a German incubator that builds companies that copy the business models of successful US tech companies. Lazada's e-commerce websites soft the Philippines, Thailand and Vietnam.
launched in
2012
in Indonesia, Malaysia,
In June 2013, Lazada announced it had raised an additional $100 million, and it launched mobile applications for Android and iOS devices. In December 2013 it raised an additional $250 million from Tesco PLC, Access Industries, and other existing investors. In May 2014, Lazada launched in Singapore, its sixth country In 2014, the total Lazada had raised to approximately $647 million. For 2014, Lazada's net operating losses were $152.5 million on net revenues of $154.3 million. However its percentage of losses relative to its Gross Merchandise Volume - the value of all the products sold through the site - was smaller in 2014 than in 2013 due to growth in its GMV from $95 million in 2013 to $384 million in 2014, driven by marketplace sales.
2. Key success factors of Lazada Advance Online Marketing Strategy: Lazada heavily invests in Search Engine Optimization (SEO), Search Engine Marketing (SEM), Social Media and Affiliate Program. Moreover, Lazada Indonesia well adapted to the local marketing language for every promotion and campaign. Those activities boost impression and attract people to visit Lazada. In addition, Lazada also has mobile apps that aim to grab mobile consumer. Finest Product with Best Price: In Lazada, they ensure all products carefully selected for the quality, originality and no compromise to offer the best price. Even, there is a low price
guarantee that promise every product labeled best price is the cheapest in Indonesian market both offline and online stores. First Class Logistics, Free Shipping and Complete Payment Method: Lazada sets priority for delivery of product to consumer should be on time provide hassle free shopping experience and complete payment method. Lazada has its own courier and large partnership courier network that able to cover many places and deliver on time. It’s supported by excellent order fulfillment since Lazada build a bigger warehouse to accommodate more inventory and accelerate order processing.
Perfect Customer Relationship Management: In order to create sustainable competitive advantage, Lazada retain their consumer in many ways like providing shopping voucher, email newsletter, affiliate program and offline activity such as blogger gathering. They also actively post article and information in their blo
3. Lessons from the success of Lazada - Take advantages of advance online marketing: Google Search, Google Display Network, Facebook, Criteo, MicroAd and any popular online marketing platform has Lazada a client. Once the company has targeted potential customers, the extensive partner network will help them reach potential customers quickly and easily. - Focus properly on the image: Creating an attractive webpage with impressive image, scientifically design, compelling editorial content and design various versions suitable for every device. - Offer attractive policy for customer: Good customer service, purchases with cash on delivery, 14 days free return and free shipping policy.
