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Tiki's Situation Analysis

Tiki is a leading e-commerce company in Vietnam's domestic market. With the outbreak of COVID-19, Tiki's Board of Directors recognized the importance of digital transformation and plans to extend its online presence, invest in digital platforms, and achieve omnichannel marketing to build an excellent customer experience (Tiki, 2022).

The author’s team has been assigned to develop an annual digital marketing plan for Tiki, beginning with a comprehensive analysis of the company's current digital environment and channels. In this report, the author’s group will conduct a micro and macro digital environment analysis, audit Tiki's digital channels, and perform a SWOT analysis. Based on these findings, the author’s group will provide recommendations to improve Tiki's digital marketing performance and achieve its digital transformation goals.

II. Tiki’s Situation Analysis

Customer analysis

Demographics: Tiki's target customers in Vietnam are predominantly young adults aged 18-35, with a slight skew towards females. These customers are tech-savvy and have a high level of digital literacy, with access to smartphones and internet connectivity. They are primarily urban dwellers, residing in major cities such as Hanoi and Ho Chi Minh City, with disposable income for online shopping.

Preferences: Tiki's customers in Vietnam prefer online shopping due to its convenience, time-saving, and access to a wide range of products. They value competitive pricing, promotions, and discounts, and are price-sensitive. Cash-on-delivery (COD) payment method is preferred due to trust issues with online transactions, although digital payment methods are gaining popularity. Fast and reliable delivery is a priority, with a preference for free or low-cost shipping options (Anh, 2021).

Behaviors: Tiki's customers in Vietnam are active online shoppers, conducting research, comparing products, and reading reviews before making purchase decisions. They are heavy users of social media, particularly Facebook and Instagram, for product discovery, recommendations, and promotions. They are increasingly using mobile apps for online shopping, with a preference for seamless and user-friendly interfaces. They are also interested in personalized offers, loyalty programs, and excellent customer service (Anh, 2021).

Needs: Tiki's customers in Vietnam have a need for a wide variety of products, ranging from electronics, fashion, home appliances, beauty, and personal care, to books, and more. They seek convenience, reliability, and security in their online shopping experience. They value trust and transparency in product information, pricing, and customer reviews. They expect prompt and efficient customer service, including easy returns and exchanges (Anh, 2021).








Tiki’s Customer portrait

Opportunities

The first opportunity is the growing digital literacy and adoption among young adults in Vietnam, which Tiki can leverage by providing user-friendly digital platforms and experiences. The increasing popularity of social media, particularly Facebook and Instagram, among Tiki's target customers presents an opportunity for the platform to engage with customers through social media marketing, promote products, and build brand awareness and loyalty. Tiki can also capitalize on the demand for convenience and reliable delivery by offering free or low-cost shipping, fast delivery, and efficient logistics. Additionally, Tiki can expand its product offerings and diversify its product categories, such as electronics, fashion, home appliances, beauty, personal care, and books, to cater to the evolving needs and preferences of its customers by partnering with more sellers and brands.

Threats

Price sensitivity is a challenge for Tiki as Vietnamese customers are price-sensitive and competitive pricing is a key factor in their purchase decisions. Tiki needs to carefully manage its pricing strategies to balance affordability for customers and profitability for the business.

Trust and security concerns are common challenges in the e-commerce industry in Vietnam, with the cash-on-delivery (COD) payment methods preferred due to trust issues with online transactions. Tiki needs to address these concerns by implementing robust security measures, building trust through transparent product information, customer reviews, reliable customer service, and promoting safe online payment options.

Customer preferences and behaviors in the e-commerce industry are rapidly changing. Tiki needs to stay updated with evolving customer preferences, shopping behaviors, and digital trends to adapt its digital marketing strategies and tactics accordingly. Failing to do so may result in losing relevance and customer loyalty.

Competitor analysis

In the Vietnam e-commerce market, Tiki faces competition from various local and international players. Conducting a thorough competitors analysis can provide valuable insights into the strengths and weaknesses of Tiki's competitors, which can inform Tiki's digital marketing strategies. Some key competitors of Tiki in Vietnam may include:

Shopee: Shopee is a leading e-commerce platform in Vietnam, known for its strong mobile-first approach. It has a user-friendly mobile app and offers a wide range of products, including fashion, electronics, and household items. Shopee also often runs promotions and discounts to attract customers, and has a strong focus on social commerce, allowing users to buy and sell within the platform. Shopee's aggressive marketing strategies, strong logistics network, and large customer base make it a formidable competitor for Tiki (Maneko, 2022).

Lazada: Lazada, owned by Alibaba Group, is another major player in the Vietnam e-commerce market. It has a wide product range, including local and international brands, and offers various payment options, including cash-on-delivery (COD) and e-wallets. Lazada also has a strong logistics network and offers fast delivery options, which gives it a competitive advantage in terms of convenience and reliability. Additionally, Lazada has a strong presence in the cross-border e-commerce market, catering to Vietnamese consumers' demand for imported products (Maneko, 2022).

Sendo: Sendo is a popular Vietnamese e-commerce platform that focuses on local sellers and buyers. It has a wide range of products, including electronics, fashion, and beauty, and offers features such as easy payment options, COD, and free shipping. Sendo also has a strong social commerce component, with features like live-streaming and chat commerce, which allow sellers to interact with buyers in real time. Its localized approach, strong customer base, and seller-friendly features make it a strong competitor for Tiki, especially in the domestic market (Maneko, 2022).

Opportunities

Tiki has the opportunity to increase its market share in the competitive e-commerce market in Vietnam by leveraging its strengths, such as its extensive product offerings, strong customer base, and competitive pricing. To improve customer experience, Tiki can focus on initiatives such as seamless website/app navigation, fast and reliable delivery, efficient customer service, and personalized offers to build customer loyalty. Tiki can also implement an omnichannel marketing strategy by integrating its online and offline presence, providing a seamless shopping experience for customers. Additionally, Tiki can explore social commerce opportunities by leveraging social media platforms to engage with customers, promote products, and facilitate user-generated content, which can drive brand awareness, customer engagement, and sales.

Threats

Tiki faces intense competition from established players in the e-commerce market in Vietnam, such as Shopee, Lazada, Sendo, and others, which pose a threat to Tiki's market share and growth. The e-commerce market is dynamic and rapidly changing, with evolving customer preferences, technological advancements, and regulatory changes, requiring Tiki to stay agile and adapt. The prevalence of counterfeit and fake products in the market poses a threat to Tiki's reputation and customer trust, necessitating stringent quality control measures. Logistic challenges, including delivery speed, reliability, and cost, may pose hurdles for Tiki, which can be addressed through efficient logistics partnerships and innovative solutions. External factors such as changes in consumer spending patterns, economic fluctuations, and political or regulatory changes may also impact Tiki's business, requiring strategic planning and adaptation to mitigate risks.

Intermediaries analysis

Payment gateways: Tiki uses payment gateways to process online payments from customers. These payment gateways play a critical role in ensuring that payments are processed quickly, securely, and smoothly, which is essential for a seamless and convenient customer experience (Tiki, 2023b).

Marketing agencies: Tiki works with marketing agencies to plan and execute its digital marketing campaigns. These agencies play a crucial role in helping Tiki reach its target audience, optimize its marketing efforts, and measure the effectiveness of its campaigns (Tiki, 2023b).

Opportunities

Tiki can enhance its payment processing by leveraging payment gateways to ensure smooth and secure online transactions for its customers. Partnering with reliable payment gateways can provide a seamless and convenient payment experience, leading to increased customer satisfaction and repeat purchases. Tiki can also collaborate with marketing agencies to plan and execute strategic digital marketing campaigns. This can help Tiki effectively reach its target audience, optimize marketing efforts, and measure campaign effectiveness. Strategic marketing campaigns can drive brand awareness, increase customer engagement, generate leads, and ultimately result in higher sales and revenue for Tiki.

Threat

Tiki's dependence on payment gateways for online payment processing could be a potential threat, as disruptions or issues with payment gateways' services may impact Tiki's ability to process payments, resulting in customer dissatisfaction and loss of sales. Additionally, the performance of marketing agencies could impact Tiki's digital marketing efforts. If marketing agencies fail to deliver effective campaigns or optimize marketing efforts, it could result in lower customer engagement and reduced sales. Tiki needs to closely monitor and manage these dependencies to mitigate risks and ensure smooth operations.

Macro digital environment analysis is a useful method for assessing external elements that may have an impact on Tiki's business. Adoption and usage of the newest digital technology is vitally crucial in the context of quickly growing technology, particularly in the sector of e-commerce, to improve the customer experience and raise corporate success. The PEST framework (Political, Economic, Social, and Technological) is used to examine macro digital environmental issues that may impact Tiki's company, resulting in high efficiency in Vietnam's dynamic business environment of the e-commerce industry.

Political Factor

the political factors within the PESTLE framework that can impact Tiki's operations in Vietnam (Heubel, 2022). It highlights the stable political institutions in Vietnam, with only one ruling party, which makes it easier for businesses to comply with a single set of laws compared to multi-party countries like the United States. The Vietnamese government has actively promoted the growth of the digital economy and issued policies to support businesses in their digital transformation and the development of e-commerce (National Institute For Finance, 2022). These policies include state budget expenditure policies, tax policies, credit policies, and policies to improve the business environment and competitiveness. Incentives on corporate income tax and import tax policies encourage businesses to invest in digital technology development and high-tech industries (The Library of Law, 2022). The Import-Export Strategy to 2030, approved by the Prime Minister, also presents opportunities for Tiki to participate in the global supply chain and value chain. However, the strategy also emphasizes the importance of sustainable development, indicating that Tiki should consider environmental and social factors in its supply chain design. Tiki can leverage these favorable economic policies and government support to expand its digital platform and services in Vietnam.

Opportunities

Vietnam's stable political environment with a single ruling apparatus, the Communist Party, provides a favorable condition for businesses like Tiki as it allows them to follow a single set of laws and regulations without dealing with multiple parties or states. Additionally, the Vietnamese government actively supports the growth of the digital economy and has issued policies to encourage digital transformation and e-commerce, presenting opportunities for Tiki to expand its digital platform and services. Incentives on corporate income tax provided by the government can also help Tiki increase its financial resources and improve competitiveness. Furthermore, import tax policies in Vietnam encourage the development of high-tech industries and professions, which can benefit Tiki in its digital transformation efforts. Tiki can leverage these government initiatives to its advantage and drive its growth in the e-commerce market.

Threats

Tiki needs to be mindful of regulatory requirements imposed by political factors, as changes in regulations or government policies could increase compliance costs and impact its operations or profitability. While Vietnam has a stable political environment, any changes in government stability or political landscape could potentially affect Tiki's operations, especially if there are significant changes in policies or regulations. Tiki should also consider environmental and social factors in its supply chain, as the government's emphasis on sustainable development may pose risks to its reputation and operations if it fails to comply with such requirements. Additionally, the political stability and government support for the digital economy may attract more competitors to enter the market, increasing competitive pressures on Tiki and potentially impacting its market share, sales, and profitability. Tiki needs to be vigilant and adapt to any changes in the political and regulatory landscape to mitigate risks and maintain its competitive position in the market.

Economic Factor

the economic factors within the PEST framework that can directly impact Tiki's operations. This includes the country's economic situation, such as GDP growth, inflation, rising oil prices, and raw material prices, which can affect Tiki's performance in the e-commerce market. Competitive price reductions and increased consumer income can impact Tiki's product pricing strategy and sales growth. While higher consumer income can lead to increased sales and profits for Tiki, it may also result in changes in consumer shopping habits, with a preference for premium or exclusive products, which may require Tiki to expand its product portfolio and improve product quality, affecting investment costs and profitability.

Vietnam's fast-paced economic development and the increasing number of internet users in the country provide opportunities for Tiki to expand its online sales market share. The transportation system is also a critical factor in Tiki's operations, as shipping costs and delays can impact customer choice and satisfaction, as well as Tiki's operating costs. Tiki strives to improve the quality and reduce latency in its transportation system by seeking cost-effective and high-quality shipping partners. Tiki needs to find appropriate solutions and strategies to address these challenges and maintain its market position and growth.

Opportunities

Vietnam's rapid economic growth, increasing urbanization, and the growing e-commerce market present opportunities for Tiki. The country's expanding middle class with higher disposable income provides a larger consumer base for Tiki to target, while urbanization leads to higher digital literacy and demand for online shopping. Tiki can leverage these trends to tailor its offerings to urban consumers and tap into the growing e-commerce market in Vietnam. Furthermore, favorable government policies, such as tax incentives and infrastructure development, create a supportive environment for Tiki to operate and expand its online business. Tiki can capitalize on these opportunities to increase sales, expand its customer base, and drive overall business growth.

Threats

Tiki faces challenges in the highly competitive e-commerce market in Vietnam, with competition from both local and international players potentially impacting its market positioning, pricing, and profitability. Logistics and infrastructure challenges, including poor transportation networks and limited payment gateways, could also pose threats to Tiki's operations, affecting delivery times, customer experience, and operational efficiency. Additionally, foreign exchange risks, such as currency fluctuations and inflation, may impact Tiki's costs, pricing, and profitability. Economic uncertainties, including changes in government policies or economic conditions, could impact consumer spending patterns and confidence, which in turn may affect Tiki's sales and business performance. Economic downturns or recessions could also impact consumer purchasing power and overall demand for online shopping. Tiki needs to address these challenges to maintain its competitiveness and sustainability in the e-commerce market in Vietnam.

Social Factor

Sociocultural characteristics based on the PEST framework provide insight into the existing values, norms, institutions, educational attainment, and consumption patterns of the population in a defined business market. This information allows businesses to outline the structure and values of a society. These factors can have a direct impact on the growth and profitability of a company (Martin Heubel). The first social factor that Tiki needs to analyze is Demographic/population characteristics - a study of a population based on factors such as age, race, and gender. Demographic data refers to socioeconomic information presented statistically, including employment, education, income, marriage rate, and many other factors (Business capital flow, 2020). Used to learn more about population characteristics for a variety of purposes, including policy development and economic market research. According to data from the Ministry of Information and Communications of Vietnam, as of September 2022, Vietnam has 72.1 million Internet users (accounting for 73.2% of the population) in daily life. With this number, Vietnam is the country with the 12th highest number of Internet users worldwide (Department of Education and Training, 2022). Which, more than 90% is the population under 35 years old, this is the age group with high demand for online shopping and the highest ability to spend shopping. This shows the strong development potential of the digital market in Vietnam when possessing an extremely large number of potential customers. Tiki needs to focus on its main audience to be able to increase its sales. The second social element that Tiki needs to build is to create trust and credibility with customers, by providing good service, product quality, reasonable prices and good customer support. Tiki needs to make a commitment to quality and ensure safety when shopping online, especially in the digital age, when the fear of customers' personal information theft is increasing. Therefore, it is important for Tiki to meet demand and create trust with customers to stay competitive. To solve the concerns of customers who want to experience the product before and after purchasing. Tiki can improve its price comparison system, detailed product descriptions, high-quality photos, videos, and customer reviews to provide as much information as possible about the product. In addition, Tiki may consider offering a more effective return policy to help customers buy with peace of mind even if they have not experienced the product before. Tiki can also leverage technology such as augmented reality or virtual trial to help customers have a better experience of the product, which in turn can reduce the barrier to buying online. Overall, it is important for Tiki to adapt to changing trends in online shopping and continuously improve its services to meet the growing needs and expectations of customers in Vietnam.

Opportunities

Vietnam's increasing internet penetration and digital literacy, along with a young and tech-savvy population, present an opportunity for Tiki to tap into a larger customer base and expand its online platform. Changing consumer preferences, driven by social factors such as urbanization and lifestyle changes, are shifting consumers towards online shopping, and Tiki can capitalize on this by offering convenient, reliable, and personalized online shopping experiences. Social media and influencers also play a significant role in shaping consumer behaviors in Vietnam, and Tiki can leverage social media and influencer marketing to increase brand awareness, engage with customers, and drive sales. Tiki needs to adapt to changing consumer preferences and effectively utilize social media and influencers to capture the growing demand for online shopping and digital services in Vietnam.

Threats

Vietnam's unique cultural preferences and shopping habits, along with trust and security concerns, limited payment options, and the rise of social and consumer activism, are important factors that Tiki needs to consider in its online business. Tiki should be mindful of local cultural preferences and shopping habits to ensure its offerings and services align with local consumer expectations. Trust and security concerns are critical considerations for consumers in Vietnam, and Tiki should prioritize security measures, build trust, and address any concerns related to online shopping. Limited payment options, such as cash on delivery, present challenges for Tiki in terms of ensuring secure and convenient payment options for customers. Additionally, with the rise of social and consumer activism in Vietnam, Tiki needs to be aware of these trends and ensure its business practices align with consumer expectations in terms of social and environmental responsibility. Adapting to local cultural preferences, addressing trust and security concerns, addressing limited payment options, and aligning with social and consumer activism are important considerations for Tiki to succeed in the Vietnamese online shopping market.

Technological Factor

Technology is developing at a fast pace, especially in the field of e-commerce when this is a new retail consumption trend that is popular around the world. Tiki is one of the first companies to enter the e-commerce market in Vietnam and has achieved certain successes, in order to maintain and develop its existing position Tiki needs to update, invest and use Use the latest technology to improve customer experience and increase business performance. To achieve the highest efficiency, Tiki needs to focus its resources and build a strategy based on digital technology trends that are forecasted to thrive in 2022 as well as a long-term vision in the future, such as artificial intelligence. Creation (AI), data analytics (DA), Internet of Things (IoT), cloud computing (Cloud), and Metaverse technology (Chung, 2022). The race to apply new technology helps Tiki improve business processes, optimize operations and enhance competitiveness with competitors in the e-commerce market. In addition, Tiki needs to ensure the safety and security of customer information in the process of applying new technology, where security holes will be an opportunity for bad guys to take advantage of to steal the personal information of the customer. In summary, updating and using the latest technology will help Tiki improve customer experience, increase business performance, create a competitive advantage over competitors, and achieve the highest efficiency in the field of branding e-commerce.

Opportunities

Vietnam's increasing internet penetration, growing mobile adoption, advancements in payment technologies, and technological innovation present opportunities for Tiki to expand its online presence and drive business growth. With a large and growing online population, Tiki can tap into a larger customer base and expand its online presence through digital channels. The rise of mobile adoption in Vietnam allows Tiki to leverage mobile technologies, such as mobile apps and mobile-optimized websites, to reach and engage with customers and enhance the overall customer experience. Advancements in payment technologies, such as mobile wallets and digital payment platforms, can facilitate online transactions and provide convenient payment options for Tiki's customers, potentially driving increased online sales. Furthermore, technological innovation, including data analytics, artificial intelligence, and automation, can be leveraged by Tiki to optimize its operations, improve customer experience, and drive business growth. Staying abreast of technological advancements and leveraging them strategically can give Tiki a competitive edge in the dynamic e-commerce market in Vietnam.

Threats

Rapid technological changes, cybersecurity risks, the digital divide, and technology infrastructure challenges pose challenges for Tiki in Vietnam's e-commerce landscape. Technology is evolving rapidly, and Tiki needs to stay agile and adapt to changes in the technology landscape to remain competitive and not be disrupted by emerging technologies or new competitors. Cybersecurity risks are a significant threat, and Tiki needs to invest in robust cybersecurity measures to protect its online assets and customer data from data breaches, cyber-attacks, and other incidents. Despite the growing internet penetration in Vietnam, there is still a digital divide, with limited access to internet infrastructure or low digital literacy among certain segments of the population, which may impact Tiki's reach and ability to target specific customer segments. Additionally, challenges with technology infrastructure, such as internet connectivity, server capacity, and data centers, may impact website performance, customer experience, and operational efficiency for Tiki. Addressing these challenges and staying updated with technological advancements and cybersecurity measures are crucial for Tiki to maintain its competitive edge and succeed in Vietnam's evolving e-commerce market.

Tiki’s SEM platform

Tiki currently runs paid search ads on Google and other search engines to drive traffic to its website. However, Tiki only advertises paying for keywords related to Tiki to drive traffic to the company's main website. Tiki does not use paid advertising for their products. When you search for a product, the Google search engine will immediately suggest e-commerce platforms that sell that product, but don't have Tiki. This channel has been effective in generating traffic and sales for the company. However, not reaching many potential customers, but in return, the cost for this channel is saved.



SEM on Google by Tiki

SEM can increase reach for customers by displaying targeted ads on search engine results pages. This can help Tiki reach customers who are actively searching for products or services related to their business. SEM can also affect customers by providing them with relevant ads that match their search intent, leading to an improved user experience.

In terms of integration with other channels, SEM can be integrated with other digital marketing channels such as social media advertising and email marketing. For example, Tiki could use SEM to target customers who have already interacted with their brand on social media or through email. This integration can improve the effectiveness of Tiki's digital marketing strategy and provide a consistent user experience across multiple channels.

Strengths

Targeting brand-related keywords: Tiki's focus on advertising for keywords related to their brand may be effective in driving traffic and sales from customers who are specifically looking for Tiki or Tiki-related products.

Cost-effective approach: By narrowing down their paid search ads to brand-related keywords, Tiki may be able to save costs by minimizing irrelevant clicks and focusing on a more specific audience.

Integration potential: Tiki's recognition of the potential for integrating SEM with other digital marketing channels, such as social media advertising and email marketing, indicates a strategic approach to optimizing their digital marketing efforts.

Weaknesses

Limited reach: Tiki's approach of only advertising for brand-related keywords may result in missed opportunities to capture potential customers who are searching for products but do not have Tiki as a suggested e-commerce platform, limiting their reach and potential customer base.

Limited product visibility: Tiki's focus on brand-related keywords may not allow them to effectively showcase their specific products to potential customers, limiting their product visibility in search results and potentially affecting their sales.

Optimization of cross-channel integration: While Tiki recognizes the potential for integrating SEM with other digital marketing channels, it's not clear how effectively they are implementing this integration, which could impact the overall effectiveness of their digital marketing strategy.

Tiki’s Online PR platform

Tiki has an active presence on various social media platforms such as Facebook, Youtube, and Instagram, where it regularly posts updates about its products, services, promotions, and events (Tiki, 2023b). The company also collaborates with influencers and bloggers to create content that promotes its brand and products to a wider audience. Tiki spent a huge amount of money on the campaign "Tiki Goes with Vietnamese Stars" which launched in 2019 and achieved great success (Huy, 2020).

Tiki also engages in content marketing through its blog section, where it publishes informative and engaging articles related to its products, services, and industry. This not only helps to drive traffic to its website but also positions the company as an industry thought leader and enhances its reputation and credibility (Tiki Blog, 2023).

Online PR can affect customers by shaping their perceptions of the brand. Positive media coverage and influencer endorsements can enhance the brand's credibility and reputation, which can lead to increased customer loyalty and sales. On the other hand, negative media coverage can damage the brand's reputation and deter potential customers.

Online PR can be integrated with other digital marketing channels such as social media and content marketing. For example, Tiki could use social media to share news and updates about its PR efforts or use content marketing to create informative and engaging articles that showcase the brand's expertise and thought leadership. This integration can help Tiki amplify its message and increase the reach of its PR efforts.

Overall, Tiki's online PR strategy is effective in building brand awareness and reputation through various media channels and engaging with its target audience in a meaningful way.

Strengths

Social media presence: Tiki's active presence on various social media platforms, such as Facebook, YouTube, and Instagram, where they regularly post updates about their products, services, promotions, and events, indicates a strong online PR strategy. Collaborating with influencers and bloggers also showcases their ability to leverage partnerships for wider audience reach.

Content marketing through the blog: Tiki's blog section, where they publish informative and engaging articles related to their products, services, and industry, demonstrates their commitment to content marketing and thought leadership. This can help drive traffic to their website, enhance their reputation, and position them as industry experts.

Integration with other digital marketing channels: Tiki's recognition of the potential for integrating Online PR with other digital marketing channels, such as social media and content marketing, suggests a strategic approach to amplifying their message and increasing the reach of their PR efforts.

Weaknesses

Monitoring and managing media coverage: While Tiki has achieved success with their "Tiki Goes with Vietnamese Stars" campaign, it's important for them to actively monitor and manage media coverage to ensure that negative coverage is addressed promptly and effectively to protect their brand reputation.

Measuring PR effectiveness: How Tiki measures the effectiveness of their Online PR efforts? It's important for Tiki to establish metrics and measurement methods to evaluate the impact of their PR strategy on brand awareness, reputation, customer loyalty, and sales.

Tiki’s Display/Interactive ads platform

If you visit Tiki's homepage, you'll see their banner ads appear at the top, bottom, and other locations on the site, with clear promotional images and messages. This proves that Tiki used the Display advertising channel to deliver its message to customers (Tiki, 2023b). Tiki also places its ads in many online newspapers such as VnExpress, Zing News, and VietnamNet... with the aim of increasing its brand awareness. If you visit these newspapers, you will see Tiki banner ads appearing in various locations on the website. Tiki has shared its official Facebook page promotional images and videos about the products and services they offer. This is one of the approaches to using display and interactive ads (Tiki, 2023b). However, the impact of these ads is relatively low compared to other channels, and Tiki needs to consider ways to make its display ads more engaging and targeted.

Strengths

Wide placement: Tiki utilizes banner ads on their homepage, as well as on popular online newspapers such as VnExpress, Zing News, and VietnamNet, to increase their brand awareness. This indicates a wide reach and potential for exposure to a large audience.

Facebook promotion: Tiki shares promotional images and videos about their products and services on their official Facebook page, showcasing their use of display and interactive ads on social media to engage with their audience.

Weaknesses

Engagement and targeting: The impact of Tiki's display ads may be relatively low compared to other channels. Tiki should consider ways to make their display ads more engaging and targeted, such as using compelling visuals, compelling messages, and relevant targeting parameters to ensure that the ads resonate with their target audience and drive better engagement.

Measurement of effectiveness: How Tiki measures the effectiveness of their Display/Interactive ads? It's crucial for Tiki to establish metrics and measurement methods to evaluate the performance of their display ads in terms of click-through rates, conversions, and overall ROI to optimize their strategy and achieve better results.

Tiki’s Viral Marketing (SMM) platform

While joining many various artists with the idea of 100 music videos, the project "Tiki di cung sao Viet" was formally unveiled on May 29, 2019. Tiki investigated and decided to invest in the artist's songs in order to get the appearance of the Tiki logo. As long as the artists are dedicated to meeting the View KPI in proportion to their investment. For example, in the MV "Co nhu khong co," Tiki partnered with vocalist Hien Ho while also collaborating with the Maybeline Cosmetics brand and Facebook.

The MV's content portrays the sorrowful love tale of a girl. The female singer was picked because she has a fan base that fits the brand's target audience of modern young ladies aged 18-30. Other with the presence of the blue shirt shipper Tiki, as seen in past sponsored MVs, Maybelline's new lipstick product Super Stay Matte Ink is also expertly blended into the movie's romance moments, piqueing the audience's curiosity.


MV Co nhu khong co (Youtube, 2020)

As the result, the MV has reached 51 million views, 236 thousand likes and more than 7,000 comments from the audience. Tiki app installations climbed by 5% after 17 days of implementation, and Tiki received the Silver Medal for Innovation & Creativity at MMA Vietnam (Brands Vietnam, n.d). In the 4.0 age, when everyone spends 2 hours a day viewing videos and Gen Z, which accounts for 33% of the whole population, has a music idol, it is apparent that potential buyers have a position for Tiki in their minds (Ngoc, 2021).

About integration, singer Hien Ho encouraged followers to utilize the product by posting MV material on her own Facebook and Instagram profiles. Her posts were utilized as brand advertisements to raise awareness and interest in Maybelline's new lipstick collection. All advertising is directed to Tiki's e-commerce portal, where the product is supplied exclusively. Maybelline herself shared content related to the MV on the brand's fan page. In addition, the 17-day Facebook ad campaign combines a number of ad types to provide consumers with a seamless discovery and purchase experience (Brands Vietnam, n.d). The content of Viral clips, an ad style that stimulates user involvement, is used to generate advertising material (pictures, videos).

Strengths

Tiki's successful collaborative partnerships, relevant content creation, social media integration, and positive results in their marketing strategy. Tiki collaborated with popular artists and brands such as Maybelline Cosmetics and Facebook in their "Tiki di cung sao Viet" project, using the artists' popularity to promote Tiki's brand and reach a wider audience. They created engaging music videos featuring a singer who resonates with their target audience and integrated Maybelline's lipstick product in a subtle and creative way. Tiki leveraged social media platforms for advertising and promotion, with the singer and Maybelline also sharing content on their own social media profiles. This resulted in significant views, likes, comments, and app installations, and Tiki received recognition for their innovative and creative viral marketing campaign, winning the Silver Medal for Innovation & Creativity at MMA Vietnam.

Weaknesses

Tiki heavily relies on influencers and collaborations, which could pose a risk of dependency and impact effectiveness if not sustained. The lack of specific targeting and personalization efforts may result in missed opportunities for higher engagement. The short-term impact of the strategy is mentioned, but long-term sustainability is not assessed. Tiki's reliance on a limited number of social media platforms may limit their reach. Additionally, measuring the ROI of the viral marketing campaign may be challenging. Tiki should consider addressing these limitations to ensure the continued effectiveness and efficiency of their marketing strategy.

Tiki’s Opt-in Email platform

Tiki sends messages when they are ready using a user permission-based email collecting approach. For example, if a user accesses the Tiki app and finds valuable material and want to be notified when a new post is made, they will provide a personal email address on the Tiki app's information form.


Opt-in email of Tiki

Tiki's email content includes account confirmation emails, order confirmation emails, and event announcement promotional emails. According to the author's personal experience, Tiki sends two to three event advertising emails to clients every month. Furthermore, according to figures from the first five months of 2022, Tiki received 17.8 million visitors and accounted for 5.8% of e-commerce platform sales in Vietnam (Nhi, 2022). As can be shown, Tiki may reach a minimum of 100,000 customers each month with each email opt-in.


Opt-in email of Tiki

In terms of integration, Tiki always provides a link to the Tiki app, Tiki Facebook, and Tiki Instagram at the bottom of each email. It contributes to client convenience during use.

Strengths

Tiki's permission-based approach to email marketing, where users voluntarily provide their email addresses for notifications, resulting in higher engagement and conversion rates. Tiki's diverse email content caters to different customer needs and interests, keeping users engaged. With significant website traffic and e-commerce platform sales, Tiki has a high potential reach through their email opt-in approach. The integration of links to other platforms, such as their app, Facebook, and Instagram, provides a cohesive and seamless experience for users, driving traffic and engagement across multiple channels.

Weaknesses

The frequency of emails, noting that some users may find it excessive, leading to unsubscribes or marking emails as spam. Tiki has to align the frequency of emails with user preferences. The lack of mention of personalization and targeting efforts by Tiki, and recommends implementing segmentation and targeting strategies to increase relevance and engagement. Lastly, the need for performance measurements, such as tracking open rates, click-through rates, and conversion rates, and optimizing the email platform based on key performance indicators (KPIs) for effectiveness and efficiency.

Tiki’s Affiliate/Online Partnership platform

Tiki has partnerships with other companies and affiliates to drive traffic and sales to its website. The company offers referral programs to incentivize partners to promote its products. Tiki allows users to build a booth directly on the company's website for the business as well as register for an Affiliate campaign directly on the website Tiki (2023a). Tiki now has its own affiliate marketing website and works with a number of KOLs in a range of fields such as cooking utensils, fashionable blogs, literature, technology, and so on. Tiki requires affiliate marketing participants to have above 10,000 followers on networks such as Facebook, Instagram, Youtube, and Tiktok (Tiki, n.d). Affiliate marketing members must have more than 50,000 monthly visitors to their websites (Tiki, n.d). Tiki can easily reach the target clients based on those requirements because the KOLs already have a specific amount of admirers.


Video affiliate of Tiki (youtube, 2021)

Duy Tham's unpacking video regarding technological goods on YouTube is a fantastic example. The 14-minute film was uploaded in the year 2021. It has approximately 700,000 views, 9.2 thousand likes, and 151 comments thus far. All product links are automatically forwarded to Tiki's webpage.

Strengths

Tiki's affiliate marketing strategy, emphasizing their wide range of partnerships with various companies and affiliates in different industries. Tiki offers referral programs and incentives to its partners, creating a win-win situation. Tiki's easy registration process for affiliates, which streamlines the onboarding process and potentially leads to more partnerships. Additionally, Tiki's requirement for high-quality affiliate partners, such as Key Opinion Leaders (KOLs), ensures a significant following and influence for effective promotion. Tiki's ability to leverage user-generated content, such as unpacking videos on YouTube, to promote their products through their affiliate marketing program. Overall, Tiki's affiliate marketing strategy is praised for its diverse partnerships, incentives, ease of registration, high-quality partners, and use of user-generated content.

Weaknesses

Monitoring and quality control: While Tiki sets requirements for its affiliate partners, there may be a need for ongoing monitoring and quality control to ensure that partners are adhering to Tiki's brand guidelines and promoting its products in a consistent and appropriate manner. This could involve regular review and feedback to affiliates, as well as measures to address any potential violations or discrepancies.

Communication and support: Tiki's affiliate partners may require ongoing communication, support, and resources to effectively promote Tiki's products. Ensuring that affiliates have access to updated product information, promotional materials, and responsive support can help them perform better and achieve desired results.

Strengths

Weaknesses

Strong brand recognition in the Vietnam market

Limited market share compared to the main competitor

Wide range of product categories and SKUs

Dependence on third-party logistics providers leads to potential delivery delays

Strong customer loyalty program with TikiNow

Limited budget for marketing activities compared to the main competitor

A strong presence on popular social media platforms

Limited integration and optimization among different digital channels

User-friendly and intuitive website and app

Limited international presence and focus on the domestic market

Opportunities

Threats

The growing e-commerce market in Vietnam

Increasing competition from both domestic and international players

Increasing adoption of mobile devices and online shopping

Regulatory Changes and potential tax reforms affecting e-commerce businesses

Emerging new technologies and platforms for online advertising and targeting

Changing consumer behaviors and preferences post-Covid-19

Increasing focus on sustainability and social responsibility

The economic downturn and potential market downturn due to Covid-19 impacts

b. Tiki’s Evaluation and improvement digital marketing performance

Tiki has strong brand recognition in the Vietnam market and a wide range of product categories and SKUs, which provide a competitive advantage over smaller and niche competitors. However, Tiki still has a limited market share compared to its main competitor, and a limited budget for marketing activities, which can constrain the company's growth and ability to compete in the market.

Tiki's customer loyalty program, TikiNow, is a critical strength that helps to retain and attract customers. However, Tiki is dependent on third-party logistics providers, which can lead to delivery delays and negatively impact customer satisfaction.

Tiki has a strong presence on popular social media platforms and a user-friendly website and app, which provide a positive user experience for customers. However, there is limited integration and optimization among different digital channels, which can affect the effectiveness of the company's digital marketing campaigns.

The growing e-commerce market in Vietnam and the increasing adoption of mobile devices and online shopping represents significant opportunities for Tiki to expand its customer base and increase sales. However, Tiki faces increasing competition from both domestic and international players and potential regulatory changes and tax reforms affecting e-commerce businesses.

Emerging new technologies and platforms for online advertising and targeting provide opportunities for Tiki to improve its digital marketing performance. However, changing consumer behaviors and preferences post-Covid-19 and potential economic downturn due to Covid-19 impacts represent potential threats for Tiki.

In conclusion, Tiki aims to extend its online presence and invest more in digital platforms to achieve omnichannel marketing and build an excellent customer experience. Through the author's group analysis, the author has identified several opportunities and challenges for the company in the current digital environment, as well as strengths and weaknesses of its digital channel's performance. To improve, Tiki should focus on enhancing customer engagement through personalized marketing, improving digital channel integration, and investing in mobile and social media marketing.

 
 
 

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