By serving 2 billion consumers and servicing tens of millions of merchants worldwide Alibaba has emerged as a Global E-commerce player with its footprints in E-Commerce, Logistics, Payments, Marketing Services, Cloud computing and meta-market businesses.
Segmentation, targeting, positioning in the Marketing strategy of Alibaba –
Alibaba uses a mix of demographic, Psychographic and behavioral segmentation strategies to fulfill its mission and transforming its business to emerge as a technologically advanced company which will help customers, merchants and businesses to leverage the vast potential of the Internet.
Most of the companies present in the e-commerce or technologically driven business use differentiated targeting strategy and Alibaba is not an exception to this.
Positioning is where a product/ service stand in the mind of the consumer. Usage-based and pricing positioning strategies are used by Alibaba to augment revenue from a different line of businesses.
Marketing mix – Here is the Marketing mix of Alibaba.
SWOT analysis – Here is the SWOT analysis of Alibaba.
Mission- “Make it easy to do business.”
Vision- “Alibaba aims to build the future infrastructure of commerce. It visualizes the vast potential when customers meet, work and lives at Alibaba”.
Tagline-“Global trade starts at Alibaba”.
Competitive advantage in the Marketing strategy of Alibaba –
- The diversified line of businesses: Alibaba has the presence in the mega-markets such as being in e-commerce business they are in cloud computing, entertainment, payment gateway, mobile data etc. These are supporting the company in being way ahead of its competitors within house wholesome infrastructure.
- Having experience of world’s most competitive and fastest growing market: Operating in the country with 1.4 bn of a population is in itself poses a challenge. A challenge to satisfy a billion needs, demands, understanding their changing preferences and taste; all these have helped the company to emerge as a fastest growing company in the commerce market.
BCG Matrix in the Marketing strategy of Alibaba –
In BCG matrix of Alibaba group, its different businesses have different growth rate which in itself portrays the growth landscape of the e-commerce company lead by the visionary leader Mr. Jack Ma.
It’s China Commerce Retail business and Cloud computing business have YOY growth rate of 41% and 175% respectively (31st Mar; 2016 data) and therefore are Stars in the BCG matrix.
Its Wholesale e-commerce business in China, as well as internationally, is struggling with low YOY growth rates and is, therefore, it is a Question mark in the BC matrix.
Distribution strategy in the Marketing strategy of Alibaba –
Technologically advanced and robust infrastructure has helped the company in providing a seamless and easy to access and communicate, sell, buy the different offerings of the sellers/ buyers anywhere, anytime across the world.
Brand equity in the Marketing strategy of Alibaba –
Its strategic alliances in different companies and positive word of mouth have helped the company in increasing Top of mind awareness (TOMA). As per the “BrandZ-100” -2015, Alibaba is way ahead of Amazon and Walmart in the list of valuable Retail brands.
Competitive analysis in the Marketing strategy of Alibaba –
Alibaba’s diversified business portfolio is helping the company to be competitive while the e-commerce market is overcrowded with local, national and international players like Amazon, eBay etc.
Market analysis in the Marketing strategy of Alibaba –
Alibaba has the presence in China and various international markets. It had 423 MM active buyers in the year 2015-16 who helped the company in surpassing 3 trillion Renminbi (RMB) of Gross Merchandise Value. Alibaba is ruling the market in China but in other Developing and Developed nations, it is still struggling to emerge as a most preferred e-commerce player.
Customer analysis in the Marketing strategy of Alibaba –
Customers of Alibaba are new-age, tech-savvy, Gen Y and Z customers to whom their time, the convenience of buying and selling, maintaining their lifestyle is more important than it ever had.
