Outline. What is a deal? Promotion programs on Lazada Add a product to participate in promotion program Pricing Stock Allocation

Transcription

1 MARKETING CAMPAIGN

2 Outline What is a deal? Promotion programs on Lazada Add a product to participate in promotion program Pricing Stock Allocation 2

3 Deal A good deal shoud meet all these criterion Price Inventory Best price on the market Must ensure enough Must provide real selling price stock to be sold during and retail price suggested by campaign manufacturer Price must end with 9000 How will a deal be promoted Content Content with complete, necessary & correct information Photos & videos should be attached to generate attractive content Good sales record Deal should be products sold in the market with good sales records on Lazada Monthly promotion campaigns Affiliates (Hot bloggers, Facebookers, websites) Specific category page Banner on home page Newsletter Facebook Search pages Advertising pages Apps on smartphone (Zalo, line, ).. 3

4 Big campaigns on Lazada How are campaigns promoted? Massive shopping in our channels Close partner with Banks and Brands TV advertising What benefits can you get? We guarantee visibility and sales Revenue in the campaign day is expected to increase to 15 times that of a normal day

5 Benefits from a good campaign 10 times the number of customers visiting the website Lazada strongly focuses on marketing and traffic Seller provides extremely good deals Customers likes and purchases your products, and more importantly, will come back next time to buy more and introduce to their friends!!!!! Ensure your revenue and success not only in the Campaign day but also in the middle & long term. 5

6 Add a product to participate in promotion program Make a list of products Sellers should add as many products on Lazada as possible to increase sales opportunities Successful sellers on Lazada usually have at least products on their shops Lazada will send the catalog of products that can be updated as well as a monthly marketing plan of each category more products are good, and more hot products are better Golden rule: more products on Lazada, more sale opportunities Sign up for promotion programs There are 2 ways to sign up for promotion programs on Lazada: Sign up by Seller Center tool Sign up via of Category Management Department 6

7 Promotion Tool on Seller Center Promotion is a function on the Seller Center This function helps you to participate in Marketing promotions run by Lazada You can choose programs matching your product s category Information about the program will be shown at the homepage when you log in Seller Center. There are two main functions in the toolbar Promotion My Promotion All Promotion 7

8 My Promotion and All Promotion 1 2 Click Promotions -> My Promotions My Promotion Showing the promotions you're engaged 1 2 Click Promotions -> All Promotions All Promotions Showing all the promotions at that time on Lazada. 8

9 Add product to promotion program 1 2 Click Promotions > All Promotions Select the promotion that you want to join and click Apply Click Select Product for Promotion or Add New Products to select products that will be in. 3 4 Click Add to Promotion to add product to protion A notification will appear on the screen After being sent the request, Lazada will take your product into account Result will be available on Update Promotions window with Approve or Reject 9

10 Update product information participating in promotion programs Go to Promotions > My Promotions Select the promotion program that have your product in it Then choose Edit Product 4 Click Update Product window Update your product s price in Promo Price Click Update in Action Click Update Changed Products to update all product s price. Announcement that the update was successful. 10

11 Remove product from promotion program 1 2 Click Promotions > My Promotions Select the promotion program that have your product in it Click Edit Product Click Update Product window 3 4 Click Remove on Action column to remove your product from that promotion program Announcement that the removal was successful. 11

12 Pricing 1 Recommended Retail price Mandatory Must be higher than the current retail price 2 Current Retail price Mandatory Must end with 9,000 VND 1 2 Note: start date of promotion set on Seller Center must be 1 day before the planned start date, and end date of promotion set on Seller Center must be 1 day after the planned end date For example: Product X will be sold at discounted price from 01/09 to 07/09 sellers have to set price on Seller Center from 31/08 to 08/09

13 Pricing - Why do prices need % discount and 9000 in their tails? (quoted by experts interviewed by CBC) Sale off 1 T-shirt pricing at will make customers think of a cheap T-shirt If that T-shirt has such price tag, customer will think it s a real bargain Price tail study by the University of Chicago showed that 9000 in price tail can help increase sales by 24%. Testing: 1 coat sold at $34, $39 and $44, the one with $39 are sold the most despite not being the cheapest Another study suggested that a combination between discount and 9000 in tail price will have the strongest effect in boosting attention rate to 70% compared to normal time

14 Pricing Competitive pricing: How to keep prices always competitive? Price analysis unit will report weekly on every Thursday on the price competitiveness of all sellers on Lazada Key account managers will filter out all products with non-competitive prices (higher price competitors) in order to report to sellers through (prior) and telephone (later). Sellers are responsible for price adjustment to improve their competitiveness

15 Pricing - Competitive pricing: Example of how price affects revenue The graph shows sales from From 01/8-20/8: sales not good because of high selling prices (average price already minus voucher) From 21/8-23/8: sales up because of reduced prices (good deal) Từ 22/8 24/8: Not có doanh số vì hết hàng (OOS) From 22/8-24/8: No revenue due to out-of-stock (OOS) From 25/8-27/8: good sales when prices return to good deals & have stock From 28/8-31/8: sales decline due to price increase (Not a good deal any more) Conclusion: Best price responding to the market is <299,000 VND Price & Inventory must be always stable to maintain revenue

16 Stock Allocation The importance of stock allocation Stock allocation is one of the most important responsibilities of sellers in ecommerce For every second a product cannot be bought (due to out of stock/system error) is a second loss in revenue for sellers Lazada monitors this responsibility of sellers through 2 criteria: Security Stock Level (SSL) Availabilty to Purchase (ATP) SSL Security Stock Level Computed as the number of days for which a product can be sold until it is out of stock with stock level and sales ratio at the current level. Ideal number: 14 days/product ATP Availability To Purchase Availability-to-purchase ratio over all products that have sales records. Ideal number: 95%/seller

17 Stock Allocation Notes Sellers must update product status every day Sellers should properly plan for inventory reserve (especially in days for which the program is run with number of orders much higher than that of a normal day) Sellers should also check inventory on Seller Center at least 2 times a day and promptly update before the stocks are sold out Special note for hot-selling products.