Baimau TIKI

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 24. Digital Marketing
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
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1. Dương Văn Trường GBH18790 Trường
2. Ngô Quốc Bảo GBH18824 Bảo
Group number: 3. Nguyễn Thị Kim Anh GBH17552 Kim Anh
4. Trịnh Đức Hoàn GBH18286 Hoàn
5. Hoàng Thuỳ Trang GBH18861 Trang
6. Trần Quang Giang GBH17376 Giang
Class GBH0802 Assessor name Mr. Nguyễn Hữu Đăng Khoa
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Table of Contents
I. Introduction........................................................................................12
II. External Digital Environment Audit....................................................12
1. Overview of The Digital Marketing Landscape / Environment in Vietnam.....................................................12
2. Comparison Between Online and Offline Marketing Concepts......................................................................18
2.1. Product...................................................................................................................................................18
2.2. Price........................................................................................................................................................18
2.3. Place.......................................................................................................................................................19
2.4. Promotion...............................................................................................................................................19
2.5. People.....................................................................................................................................................20
2.6. Process...................................................................................................................................................20
2.7. Physical Evidence....................................................................................................................................21
2.8. Partnership.............................................................................................................................................22
2.9. Pros and Cons.........................................................................................................................................23
3. The micro environment of Tiki.......................................................................................................................23
3.1. The Customers........................................................................................................................................23
3.2. The Suppliers..........................................................................................................................................25
3.3. The Competitors.....................................................................................................................................25
3.4. The Intermediaries.................................................................................................................................26
4. The Macro Environment.................................................................................................................................27
4.1. Economic Factors...................................................................................................................................27
4.2. Legal Constraints....................................................................................................................................27
4.3. Social Factors..........................................................................................................................................28
4.4. Technology Factors.................................................................................................................................28
4.5. Ethical Factors........................................................................................................................................28
5. Business Model of Tiki....................................................................................................................................29
6. Value proposition of Tiki................................................................................................................................29
III. Digital Tools, Platforms and Channels Audit.....................................31

1. Key digital tools, platforms and channels in comparison to traditional physical channels.............................31
1.1. Types of digital tools and digital hardware.............................................................................................31
2. The current application of digital tools of TIKI................................................................................................35
2.1. Search marketing....................................................................................................................................37
2.2. Social media marketing..........................................................................................................................38
3. Evaluate and compare with current rivals......................................................................................................43
IV. The Growth of E-commerce & Digital Marketing Platforms and The
Impact on Business.................................................................................46
1. E-commerce...................................................................................................................................................46
2. Digital Marketing Platforms............................................................................................................................52
V. Conclusion.........................................................................................53
References..............................................................................................54
I. Introduction
The trend of strong e-commerce makes the shopping habits of Vietnamese people have changed greatly in
recent years. From an online book sales site established in 2010, Tiki.vn has been one of the largest online
retailer in Vietnam with more than 2 million online visitors and has recorded remarkable achievements in
sales as well as improving consumer shopping experience. In this assignment, external digital environment
audit of the company will be researched and analyzed; besides, the application of digital in the company is
also discussed in order to improve its business performance.
II. External Digital Environment Audit

1. Overview of The Digital Marketing Landscape / Environment in Vietnam
Digital Marketing was defined by Chaffey & Chadwick (2016) the utilization of the Internet and applied
digital technologies in conjunction with traditional communications to achieve marketing objectives.
It was also explained by Kannan & Li (2017) that “digital marketing may be seen as activities, institutions,
and processes facilitated by digital technologies for creating, communicating and delivering value for
customers and other stake-holders.”
Comparing with the data from 2016, we will see the rapid development of Digital in Vietnam in the past 4
years. The We Are Social Digital 2020 report noted significant changes, reflected in the strong rise of e-
commerce, the popularity of new smart devices, and especially the upgrade in receiving. user awareness
about data, privacy, social channels.[ CITATION Ngô20 \l 1066 ]. 2020 marks the beginning of a new decade.
When it comes to marketing, advertising and marketing, everyone knows the trends in this area are
changing rapidly.
Artificial Intelligence (AI) and the impact of machine learning (ML)
In 2020, machine learning and artificial intelligence will still be the two most influential factors in digital
marketing. The question is, how to make the most of this technology?
In machine learning, this technology only works if there is enough data, such as demographic, geographic
information, or shopping preferences. With such data, machine learning technology will quickly analyze
trends and recommend ads at a rate that humans cannot keep up. Learn trend analysis machines from all of
your customers 'habits, so the products you create will fit your customers' preferences.
For example, if a potential customer clicks more than one ad, machine learning technology will often show
them similar advertisements. In 2020, this type of digital marketing will bring personalized ads and run
more stably than livestreaming sales.[ CITATION Hải20 \l 1066 ]
Search by Image
The world today is full of choices. Not only choosing products and services, brands also have to choose
how others evaluate their products.
Google and other tech giants are still searching for a solution so their search engine has a higher density of
correct answers. In the past 10 years, users have switched from desktop search to phone search and voice
search.Now it's time to search by image. Using cameras or other images, people can search for products
that cannot be described simply by text.[ CITATION Hải20 \l 1066 ]
Social Network
One of the best places for digital marketing is social networking. Although many traditional marketing
people often deny this fact, many "fashion" brands have quickly reached a range of potential customers via
social media.Platforms like Facebook and Instagram allow brands to flexibly advertise, especially in terms
of image creation. In addition, extremely competitive prices are also one of the factors that attract
companies to run ads on social networks. With the ability to reach customers in extreme ways, even
suggesting buying options right on the bulletin board, we have the right to trust and wait for the
outstanding development of advertising on social networks. Assembly in 2020[ CITATION Hải20 \l 1066 ]
Context is above all
For advertising content to be valuable, pay attention to the context. For example, any clothing store can
write about a monumental store, in an expensive place like in a city center. However, not everyone can
emphasize their advantages, such as luxurious fabric produced in an environmentally friendly manner. In
today's social context, people care about brands not only for their needs, their style, but also for their
individual core values. Therefore, in order for the ad to reach the reader's heart, the brand must reach these
values. With all of this in addition to the fact that Google has just posted the latest update that shows the
great strides of applying context to search, let's look forward to the rise of context in digital marketing. .
[ CITATION Hải20 \l 1066 ]
Digital marketing activities among Vietnamese businesses
Digital Marketing activities have many different forms, depending on their purpose, businesses will
choose the appropriate form. Among the current Digital Marketing activities, Vietnamese enterprises focus
on advertising on social networks the most.[ CITATION Hạn19 \l 1033 ]
The chart above reflects the popularity of Digital Marketing activities that Vietnamese businesses use.
Leading advertising on social networks with 84% of businesses using this form. Followed by search
advertising (SEM) and display advertising (GDN) with usage rates of 52% and 46% respectively. It can be
said that advertising on social networks is popular with all types and sizes of the company. According to
statistics, up to 94% of medium / large businesses spend on this type, in addition 79% of small businesses
also do the same. In particular, the remaining Digital Marketing activities are often used by medium / large
businesses. That's why Influencer Marketing is not used very much, because up to 35% of medium / large
businesses use this type while the figure is only 11% for small businesses.[ CITATION Tuấ19 \l 1033 ]
Digital Marketing vehicles being commonly used
Facebook and Youtube are the 2 most popular media that most businesses use. 96% of brands use
Facebook for digital marketing, the figure for YouTube is 75%.[ CITATION Hạn19 \l 1033 ]
Facebook is the most popular media channel when most businesses own their own accounts on the
platform. Looking at the chart we see, 96% of businesses now use Facebook, followed by Youtube with
75%. While Instagram and Zalo are only 49% and 32% of businesses use, although Zalo is a pure
Vietnamese social network channel, but not much trusted by Vietnamese businesses. This shows the
terrible influence of Facebook on the Digital Marketing market in Vietnam.
However, when switching to video content, everything is different. Online video is now considered one of
the most popular Digital Marketing activities in Vietnam, with more than 83% of businesses using it. With
this format, it's no surprise that YouTube has surpassed Facebook to become the most popular platform for
online video (95%).[ CITATION Tuấ19 \l 1033 ]
Advantages / Disadvantages of Digital Marketing
Looking at the chart, it can be seen that the biggest advantages that Digital Marketing brings to
Vietnamese businesses are "accurate customer access (88%)", easy measurement of performance (82%).
"And" easy content management (81%) ". On the other hand, the main disadvantages of Digital Marketing
today are accessibility. Specifically, the two factors "hard to reach the elderly customer group" and "hard
to reach rural areas" are the two biggest drawbacks. This is because the Internet is not really popular with
these two groups of customers. Life in rural areas of Vietnam is still difficult, leading people to receive
information mainly through traditional channels (TV, newspaper), not Digital channels. However,
compared to 2018, we can see that the disadvantages of Digital Marketing are showing signs of
improvement. This proves that businesses gradually know how to take advantage of it, improve the
common drawback of Digital Marketing, and then use it more effectively.[ CITATION Tuấ19 \l 1033 ]
Digital marketing opportunities in the 4.0 technology era
The Industrial Revolution 4.0 has brought marketers with remarkable marketing opportunities that
marketers are hard to imagine and grasp, and perform compared to previous periods. According to
researchers and marketing practitioners, the marketing opportunities in the 4.0 technology era mentioned
are firstly, the efficiency of conveying information to customers and consumers is much higher than the
previous time, but the cost is lower. Transmission information is also very diverse, rich and attractive such
as text, images, audio, movies and games ... You can just need a computer with a network connection
(even a smartphone) , a social network account (facebook, zalo, ...) is able to introduce its products to
customers, of course it is for single products, low value, .. However for the company, having a product
introduction website is many times more useful than advertising on newspapers. Secondly, transfer content
and messages to users with a huge data (big data) and consumers can access product information and make
transactions, buy and sell anytime, anywhere. This is a huge advantage, helping users to access the product
in the most convenient way. The application of technology in marketing also helps companies to
significantly reduce the number of sales staff while increasing their sales, access to a large market and
develop globally. Third, every product can be illustrated in detail, specifically that customers do not need
to go directly to the product, besides, customers will receive ongoing advice from employees. This can be
a great advantage instead of the traditional way of consulting in-store. Fourthly, not only to spread the
word to domestic customers but also to promote your products globally, the internet is the most effective
tool to bring your products beyond the borders.[ CITATION Đại19 \l 1033 ]
Marketing challenges in the 4.0 technology era
However, along with opportunities, there are always challenges for businesses. Challenges posed Firstly, it
requires customers to also use new techniques to access information and make purchases. This is quite
limited because not everyone can do that. Not to mention in some areas, when equipment and
infrastructure are not synchronized, people are considered to be completely separated from information. In
this case, direct selling still prevails. Second, the way to buy online does not create interaction with
customers through smelling, tasting (for food, food, flavoring) or trial (for fashion items). This
inadvertently propels the user away from the connection with the business. Thirdly, at present, the
infrastructure system is not yet complete for implementation, the supporting fields such as finance, legal
corridors, ... are not clear and complete, so it is likely to face unfortunate risks. Fourthly, security is also
not a small challenge.[ CITATION Đại19 \l 1033 ]
2. Comparison Between Online and Offline Marketing Concepts
There are many differences between online marketing and offline marketing. Based on Marketing mix 7Ps
I will analyze the difference between online and offline
2.1. Product
Core and extended products available online and offline. However, an online extension product will
combine the core product with additional services to make the product more attractive. For example, Tiki
adds livestream feature for sellers, capture book covers or open daily sales markets on the app. Most of
these extended products are easy to use, so customers can easily purchase, view product lines directly to
easily evaluate quality and make buying decisions. Consumers find a product of interest by directly
visiting Tiki's website, mobile app, which displays product information and the associated price. In
addition, for offline products, when customers have decided to buy, many places do not allow return, but
for products at Tiki, Tiki ensures products sold at Tiki \re new and 100% genuine. In the rare case that the
product you receive is 0’09efective, damaged or not as described, Tiki undertakes to protect customers
with a return policy and a warranty of 7- 30 days depending on the product category.
2.2. Price
Offline is difficult to prove transparency on price, but online clearly shows product price and invoice after
purchase. For example, at TiKi, products will be displayed in a transparent manner from different sources,
making it easy for customers to choose and have an invoice right after clicking on payment.
From the customer side, they are willing to buy more, spend more money on transparent brands. Nearly
94% of consumers expect that they will stick with a product with transparent pricing. In addition, if the
customer has any questions related to the transparency of the product, Tiki will have the consultation
section, and the consultant will reply back as soon as possible.
2.3. Place
With offline customers have to go to stores or agents to choose products, but online customers can choose
products like that through the internet. For Tiki, it is a partner for manufacturers to sell their products to
customers without paying any additional fees. Shops or dealers may sell products on tiki instead of
opening promotional websites. Besides, Tiki also has its own warehouse, Tiki warehouse is not merely a
storage place but develops according to a fulfillment center model This is a place for handling goods
including stages. sorting, testing, packing, and returning, setting up warehouses in big cities helps Tiki
solve three problems well, including speeding up delivery, expanding range of operations and creating a
good experience for user. Delivery is not difficult for startups approaching the "unicorn billion dollar"
milestone. The question is how long will it take to deliver and how is the goods quality? In 2017, Tiki
resonated with the announcement of the 2-hour TikiNOW fast delivery service. This is the first time that
an e-commerce business in Southeast Asia has delivered at this speed. A service that makes a
breakthrough, completely changes the thinking of buying online is to wait, sometimes even "save" the
buyer in many urgent situations. "For example, going to the airport but forgetting things, losing things, or
March 8, the lover's birthday but forgetting to buy gifts", this is the time when customers can order on Tiki
within 2 hours.
2.4. Promotion
In offline activities using TVC, print advertising, newspapers and radio are still popular. The advantage is
that users cannot turn off other channels or have hundreds of other newspapers to choose from. Or dozens
of radio stations to listen to, thousands of stars to follow. Users are forced to look at the path they take.
They cannot close their eyes while driving or in road traffic. They must look, be forced to see, leading to
passivity for customers when viewing advertisements. but the cost of offline advertising is much more
expensive when advertising online. And every day, customers have to receive thousands of different
offline advertising information, so they cannot remember them all. In online activities, mainly using
multichannel advertising such as social networks, email, fanpage ... In online advertising, reaching many
customers is easier than advertising offline. Because users today mostly use the internet for work as well
as entertainment. In addition, customers are more active when viewing ads. For example, if you are
interested in a certain product or service, online advertising will show them relevant ads. Customers can
choose to click on product advertisements to easily identify the brand and create buying demands.
2.5. People
With offline, customer approach is different from online, customers need to go to the store to buy
products, they can talk directly with sales staff as well as try the product. But offline is limited in time
Unlike online customers can shop 24/7 but can still talk to a counselor through messaging and make sure
they do not need to go to the store to buy products just wait for the delivery guy to bring the item. In Tiki,
customers can text, call directly to sellers, information is quickly responded. In addition, the online chatbot
feature 24/24 is also applied by Tiki, it answers automatically for people, effectively supporting the
company. From there, can save human resources as well as costs for Tiki.
2.6. Process
Tiki storage model
Model through Tiki's repository

The highlight of Tiki storage model and Model through Tiki's repository is in terms of delivery time. If the
seller brings goods through Tiki's warehouse for storage, it is possible to participate in Tikinow service for
2 hours, but with the model through the warehouse, the seller cannot participate in the Tikinow service and
the delivery time will be longer. Second is the fee schedule, Tiki does not charge the seller for inventory
and the seller must transport to Tiki, the seller does not store and delivers the goods to Tiki by himself, the
fee is 0 VND, If Tiki comes to pick up the goods from the seller, the fee schedule will be 5,000 - 20,000
VND / product. The third is commitment to activity. With the Tiki storage model, sellers only need to
focus on sales and marketing, Tiki will be in charge of order confirmation, product preparation and
inventory management. Model through Tiki's repository, Seller needs to confirm and prepare orders within
4 working hours, Ensure product inventory control. Tiki will apply a penalty policy for not guaranteeing
operation.
2.7. Physical Evidence

Tiki achieves the highest customer satisfaction rate and the lowest return rate among all e-commerce
operators in Vietnam due to its ability to control the supply chain very reasonably from professionals.
subjects, from partnering with well-known brands that deliver high-quality goods to warehouse and
logistics management, payment and high-end customer service. Most customers after receiving the product
are rated as satisfied with the products and services that Tiki brings.
Besides, when customers buy goods on TIKI, at the Payment & Order step, the form of delivery will
appear for customers to choose and there will be a detailed display of the expected time to receive the
order. Usually, the product is usually delivered earlier than the expected time, after receiving the goods,
the customer can review the product so that the next customer who wants to buy this product, they can rely
on the review of the previous person to feel more secure.
Tiki has implemented multi-device and app-based marketing solutions to improve the efficiency of
switching between desktop and mobile. Tiki's goal is towards consumers with more experience. But what
is more important is that consumers buy good quality products at good prices. Tiki acts as an online
exchange where different vendors can post their products. Because of that, the number of items offered on
Tiki has increased rapidly. There are 85% of customers satisfied with Tiki's quality and service. With
400,000 customers making monthly purchases at Website and mobile app, the return rate is only 0.95%.
According to the overall picture of the type of payment in Vietnam by DealToday, 23% of consumers pay
via card and 77% pay on receipt of goods (COD). Meanwhile, according to a representative of Tiki, Tiki's
card payment rate has reached 34% and COD method accounts for 66% (Brandsvietnam, 2018).
2.8. Partnership
Tiki cooperates with banks such as Sacombank, Citibank, VPbank ... and courier companies: Viettel post,
Express, savings ... In addition, Tiki also cooperates with R&D company Gravity; Fahasa.com, sapo ... Not
only a simple strategic relationship, the cooperation also helps Tiki create an ecosystem of sustainable
symbiotic development, vision development instead of monopoly in the business process. joint. It helps to
develop markets quickly and reach many new customers. Filling the gap in Tiki's imperfections perfectly,
creating a higher advantage to compete with other competitors such as shopee or lazada ... Besides, the
relationship between Tiki and the press is also very important. While Tiki is facing an unprecedented
opportunity for development and integration as well as facing significant challenges when participating in
global competition, communication, building and protecting brands is one of the top priorities. Therefore,
the press is both a companion and an effective bridge between Tiki and the community.
2.9. Pros and Cons

The advantage of online marketing is low cost. Compared to traditional marketing, the cost of advertising
activities of online marketing is much lower. The reason is that the ability to reach a large customer base
based on search engine platforms, social networks ... In addition, potential customers can freely select and
decide to buy in minutes after viewing. online products. There are many marketing options such as using
local search marketing (Local), posting products on e-commerce, SEO Website, Google ads, Facebook ...
And online marketing helps to target accurately, can create ads depending on the audience object by
gender, age, geographic location ... Besides, the biggest advantage of offline marketing is the ability to
measure customer reaction. customers can experience the product directly, thereby helping businesses
evaluate the effectiveness of each offline marketing program.
The biggest downside of online marketing is that on the side of the customer they will not be able to see,
touch the product or try clothes online. Instead, the buyer must wait until the product is delivered to the
place, pay full shipping costs to be able to receive the right item. This has the downside: the time it takes
to receive the goods, the image between the online item and the actual one may vary. This is also the seed
of fraudulent activities that take place with online marketing. The downside of offline marketing is that the
costs are high. Buying ads for TV, radio or print can be expensive for many business owners. Offline
marketing is also difficult to track quantitative results and it is difficult to store customer information.
3. The micro environment of Tiki

3.1. The Customers
Defining market segmentation by demographic, Tiki.vn’s target customers are people from 17-32
years old in both genders, they use the Internet regularly by using smart devices and do have online
shopping behavior. They are students, white collar staffs, wife houses, … across Vietnam. Tiki.vn’s target
customers live mostly in vast cities as Ho Chi Minh, Ha Noi, Da Nang, Hue, etc. For more specific in book
area, Tiki.vn’s target customers are people who keen on reading books
for studying or relaxing. Online shopping has become a new trend in recent years. The customer using e-
commerce services increase every year. People can see advantages of e-commerce and tend to use it more.
Compared to the time of Tiki's establishment in 2010, Vietnam's consumption habits have now changed. A
report from Euromonitor indicated that up to 75% of the survey respondents preferred to shop online. The
reason is that online shopping helps consumers save time, pay conveniently, have the opportunity to
compare prices and are often purchased with cheaper prices, are delivered on-site, buy anytime of the day.
This convenience, combined with the increasingly young population, improved income levels and the
increasing penetration of the Internet and mobile devices have made online retail in Vietnam great growth,
improving consumer experience. Besides, Tiki.vn has implemented multi-device and in-app marketing
solutions to improve the conversion efficiency between computers and mobile phones.
Vietnamese consumers often choose big names like Tiki.vn when shopping by the variety of product types
and service quality. However, a large product portfolio can make consumers unable to purchase access
means of consumers in Tiki
3.2. The Suppliers
Tiki.vn has a variety of products ranges, thus Tiki.vn has a large number of suppliers. In each range of
product, Tiki.vn always chooses charismatic suppliers to ensure that every product is in good
quantification when customers receive them. Vendor sends information about the legal entity that wants to
open a store on Tiki.vn. After being granted an account, the Sellers can sell their products. Tiki will, at its
sole discretion, remove Vendor's products if such products infringe laws, operating regulations, policies
and regulations of the floor and apply the sanctions, claims provided in policies, regulations of the floor
and the provisions of the law. Moreover, products that do not conform to the specified category will be
deleted or Tiki will move to another category deemed reasonable. Tiki reserves the right to decide whether
to store or remove products posted on this website without prior notice.
3.3. The Competitors

Because of the large range of products, Tiki.vn has a lot of competitors in e-commerce field; the
competitors provide nearly the same types of product as Tiki.vn does. Lazada.vn, sieumua.vn, Sendo,
Shopee are the typical example. In addition to diversifying products, to be able to compete directly with
Lazada and other brands when constantly launching special promotions and communications to promote
awareness of diversity, especially household products and technology.
For instance, books are the most famous product of Tiki.vn from the beginning of operation. In this field,
vinabook.com, fahasa.com, nhanvan.vn, etc. are the big competitors of Tiki.vn. Fahasa.com is one of the
greatest competitor, they have not only e-commerce website but also a chain of bookstore with 75
bookstores across Vietnam. Fahasa.com offers thousands titles as well as related products like movies,
software, toy, etc.
Screenshot of Fahasa.com website (Fahasa.com, n.d.)
3.4. The Intermediaries

Tiki.vn has their own service to deliver products to customer. This service also help customer to install
product such as TV, refrigerator, air conditioner, and so on. Tiki.vn knows that shopping online is still a
new trend for the mass of customer; and customers do not want to wait for a few days to receive product;
Vietnamese customers always want to get their products as quick as possible. To ensure customers can
receive their products quickly, Tiki.vn offers 24h Delivery Service which deliver product to customers
within 24 hours since customer orders in website Tiki.vn. Besides, Tiki.vn also provides TikiNow
Delivery Service that product would be sent to customers in 2 hours.
Screenshot of TIKINOW on website
4. The Macro Environment

4.1. Economic Factors
Although the world economy has become weak after the Outbreak of COVID-19 the e-commerce field has
gained many achievements. The reasonable policies from countries raise the world economy; the biggest
and most powerful economies as U.S.A, Japan increase that effects the other economy in the world.
The Vietnam economy witnesses a high increase by 7.0% in GDP in 2018 and it takes advantages for all
businesses in Vietnam. Tiki.vn is not an exception, the more income the residents have, the more
expenditure they spend on. Revenue of e-commerce in Vietnam in 2018 is nearly 6 billion dollars.
4.2. Legal Constraints

In developed countries, governments have complete laws for e-commerce. But in Vietnam, the law system
has many mistakes. Especially in tax, if a company wants to run their own e-commerce business in
Vietnam, they have to register to the authority to tax to Vietnam. But some companies use mistakes from
the law system to deny tax responsibility to the Vietnam Government.
Law system for e-commerce need to be improved (daidoanket, n.d)
4.3. Social Factors

Online shopping has appeared as a trend in the world for years; especially people in developed countries,
they get used to buying products in the Internet because online shopping help to save time and money, it is
so convenient. In Vietnam, online shopping just appears in recent years, Vietnamese like buying products
in traditional markets or stores because they want to see a real product before buying it. It is a traditional
and cultural aspect of Vietnam. However, the younger generation sees conveniences of online shopping
and it began a trend in theses generation. Nowadays, if a student wants to buy a book, he will google it and
choose a website to buy it. And Tiki.vn is a wise choice for them with thousands of book titles with
reduction.
4.4. Technology Factors

According to figure from Vietnam Digital 2020, 74% of Vietnam population, mobile internet has 68.17
million users. This figure means e-commerce businesses have more than 65 million potential customers.
Developing in technology is an advantage to develop e-commerce in Vietnam. Vietnamese are able to
search to buy anything in Google because of the spread of the Internet. Tiki.vn offers a friendly website for
any customer from the young to the old. They also have mobile apps for Android devices and iOs devices,
customers just open the app and they can be shopping immediately.
4.5. Ethical Factors

Any organization has its own rules in order to control and manage efficiently. E-commerce in the world
has its own law, and Vietnam is the same. Generally, e-commerce law bases on 3 main factors to ensure
trust and explicitness; because in this field all trades are done in the virtual world means buyers and sellers
cannot see each other in person.
- Transparency: on the seller’s website need to publish all information about the terms of sale and
the buyer should also carefully read this information before deciding to buy.
- Reliability: include the reliability of the published information (the seller should endeavor to report
honestly and update this information regularly), the reliability of electronic transactions (sellers
must ensure the use of secure communication technologies), the reliability of the system operation
(guaranteed not to cause serious errors) and the reliability of authentication problems (such as
electronic signatures, electronic contract).
- Confidentiality and Privacy: information on the customers, especially the important information
like credit cards, email, telephone etc. ... must be kept confidential and respect, which means the
sellers are not allowed to store and the sale or illegal use of this information.
5. Business Model of Tiki

In early 2017, Tiki has transformed business models from B2C (Business to Customer) to B2B2C
(Business to Business to Customer) or Marketplace model. Instead of importing the goods, monitoring
quality and selling to customers, Tiki will now act as an online trading platform, where different vendors
can post their products. Therefore, the number of items offered on Tiki.vn has increased rapidly, rather
than merely books like before. Then, Tiki has now become a multi-industry online retailer with 9 basic
consumer goods sectors, in which book is still a product “identify” the enterprise brand.
6. Value proposition of Tiki

Tiki achieves the highest customer satisfaction rate and the lowest rate of return among all e-commerce
operators in Vietnam due to its very reasonable supply chain control capabilities from professionals. thus,
from collaboration with well-known brands, provides high-quality goods to the warehouse and logistics
management, payment and premium customer service. In terms of trust, 85% of customers are satisfied
with the quality and service of Tiki. With 400,000 customers buying goods at Tiki every month, the return
rate is only 0.95%.
Products sold by Tiki are 100% genuine. This means that this product you buy on Tiki is the same as
buying in other genuine stores on the market; because Tiki personally cooperates with these genuine
manufacturers and brands to distribute products to consumers. These products will also fully get the full
warranty, repair and after-sales policies of the company. So customers are completely assured when
buying products distributed by Tiki.
Regarding the logistics system, Tiki is currently the No. 1 unit in infrastructure and logistics in the e-
commerce industry with an end-to-end supply chain model. Tiki is responsible for the entire supply chain,
from the first mile (sourcing from the supplier), to the middle mile (operations, storage, interregional
transport), and the last mile (delivery).
The media's goal is to capture the attention of consumers through Tiki's fast shipping advantage. Learning
on the Amazon Prime model, Tiki follows “Champion at shipping” and provides TikiNOW. TikiNOW fast
delivery service allows customers to receive their goods within 2 hours from the time of successful
ordering. However, this service only supports clients in the provinces including: Ho Chi Minh, Hanoi, Da
Nang, Nha Trang, Can Tho and Hai Phong.
As the result, Tiki has to face with challenges of product input quality, controlling origin and building trust
with customers when implementing Marketplace Model. In order to deal with this issue, Tiki has
introduced Tiki Trading which is a distribution stall of products imported by Tiki itself. All products are
imported directly from manufacturing units, famous and reputable brands. Guaranteed 100% genuine, if
you find fake goods will be compensated 111%. Every purchase you make from this store will be 100%
invoiced. Moreover, E-commerce is a relatively new form of sales in Vietnam, so the cost of maintaining
the site, services, warehouses and customer support is very high. While the risk of customers placing
orders but not receiving goods is still very large, businesses have to bear all costs due to the return of
goods, the quality of goods through many stages of transportation is difficult to ensure quality such as the
original.
On the other side, Tiki also has opportunities to be dominant in Vietnam. In recent years, the average
growth rate of Vietnam's e-commerce market has been at 27% annually and the volume of sales in 2018 is
estimated at 2.8 billion USD. In the next 3 to 5 years, total market sales are expected to reach US $ 15
billion, from which the market share of e-commerce will increase significantly compared to the entire
retail industry. In particular, in the context of e-commerce in Vietnam receiving increasing attention from
many investors around the world, Vietnamese consumers are also gradually increasing their online
shopping habits, and a young knowledgeable population. digital technology and a high rate of smartphone
usage (it is expected that 90 million Vietnamese people will use the Internet by 2021) ... All these factors
create many advantages for Tiki and the e-commerce industry in Vietnam. continue to expand, develop
and dominate the retail market.
III. Digital Tools, Platforms and Channels Audit

1. Key digital tools, platforms and channels in comparison to traditional physical
channels
6.1. Types of digital tools and digital hardware
6.1.1. Hardware
In this could be understood that it is any devices that can help connect onto the internet to serves as a tool
to help marketer understand what consumer want in a product. Example of this is mobile phone as most
common thing for people to carry around and connect to the web using social media apps like Facebooks,
Twitter, Reddit, … to see daily news. Personal computer also take part in this as college student now
prefer to go the web and look for material for their essay in their daily lives.
While for company uses desktop, mobile phone and tablet are used to monitor, give the most user-friendly
experience and safe as possible to the client, and lastly are the company servers where every single data
goes in and out from. This is the most important hardware that Tiki can have for if the servers went down
for unknown reason all data that are not documented are lost forever, and if there are any shipment made
during that time then the storage house would not know what to do with the package without any detail.
Tiki also uses desktop and phone to help with the customer service, with a designated hotline that any
urgent complaint can be called from 8AM to 9PM and two email that cover customer service
(hotro@tiki.vn) the concern of security measure (security@tiki.vn).
6.1.2. Software
The most common thing that any shopping website has is an application for mobile devices like phone and
tablets, and a webpage for the computer user to access whenever the person is not in possession of their
mobile device yet. With mobile devices like phones and tablet can be by Tiki to advertise the company by
showing up on timeline of social media whether it is Instagram story timeline, Facebook timeline, Youtube
google ads homepage which happen when the individual looking for a product on Tiki specifically to
remind that person that the product they looking for is at Tiki website. With this method Tiki can capture
people who are price shopping to see the best deal that they can buy.
But at the back end of the application and website has a complicated securities system behind it to prevent
hacker from gaining credit card information of the user and to ensure the personal information of the user
from leaking out. Personal information may not seem to be a big deal to many people because they do not
know the risk behind it especially in Vietnam people tend to ignore the risk and give out the information
blatantly to the website whenever they ask for it. The risk is that if a person gain personal information of
an individual would likely gain their credit card information as well and with this, they can use to make
any transaction from the stolen credit card. However, Tiki has taken the consideration of those risk into
account to make sure every single data that goes through the website or application will be protected by a
well-known cyber securities company Trustwave that provided one of their services PCI DSS and will be
encoded in MD5 128bit format [ CITATION Tik20 \l 1033 ] which will be hard to decipher would take a lot of
time to translate a single sentence. And the last securities measure of Tiki is that apply SSL (Secure Socket
Layer) into their system to protect user whenever they going through the payment action [ CITATION Tik20 \l
1033 ]. With all that security measure on top of each other in the job for Tiki software engineer to maintain
the system with their company desktop and have people around the clock to monitor the server room to see
if there are any occurrences happen during the night as this is when the security would be at its lowest.
Going through Trustwave company first as it is involved with another company to keep the information
going in to be kept safely and not being use for fraud or identity theft. Trustwave is a leading cybersecurity
and managed security services provider focused on threat detection and response. Offering a
comprehensive portfolio of managed security services, consulting and professional services, and data
protection technology, Trustwave helps businesses embrace digital transformation securely [ CITATION
Tru20 \l 1033 ]. They have offered their services to more than 200,000 businesses and government official,
moreover they expanded to 96 countries with 9 operation centers to better support their clients.
However, having all these resources does not mean that the company will has an effective structure, for the
tools can only be effective with how well the user uses it. Tiki have been effective in using the base
structure of any E-commerce website has. Example, personal computer such as Laptop, PC, Workstation
can go access the website and get customer support from Tiki whenever they wanted, browsing any
product that on the consumer preference on the website. Having the website user can also track progress of
their order made while answering user question like where is it right now (store, storage)? Is it being
delivered to the consumer house yet? Has the product been order yet? Expanding to the mobile devices
help user to gain access to a more convenience way of shopping online, and without sacrificing any feature
in a computer website while gaining more feature at the same time. With mobile devices Tiki can access
the location feature of the user phone and give out product suggestion that are near the user vicinity. With
E-commerce the most essential thing is the user phone number especially in Vietnam because of
Vietnamese household or apartment building does not have any mailbox or any safe place that delivery can
put without being stolen. Having the user phone number being register for an account can help the delivery
get hold of them faster and ask when the user would be available for delivery pick up.
6.1.3. Benefit of digital media

Benefit of website is operated 24/7 so user can shop at an unreasonable time like 3AM and still can get
their order in to the system to be deliver the next day which is the next benefit of using online shopping is
that user can register TikiNow service to have their order be deliver within the day of the order been made.
In addition, user can browse wide range of product at their leisure rather than having to go to individual
store and sometime left disappointed that they can find the product they wanted.
While Tiki have a real time flash sale system like Shopee that help user to find the best deal of the day
which not necessary a must have feature in a shopping website, but it is a great inclusion for people who
often browse the website to look for deal or anyone that has an account can get notification on their
product wish-list if it goes on sale. Tiki can base on the wish-list and buying history to personalize the user
experience, so that user would go back to the site more as the user use it more as it is being tailor to the
user preferences. With every product that the user seen, or search for would help the website algorithm to
choose what product would be suitable for that specific user. This way ensuring that people would go back
to Tiki as their main source of online shopping as one account would has lifetime support from the
company.
Image: Example of Tiki bookcare service[ CITATION Tik201 \l 1066 ]
At first Tiki started out to be a books selling website having both localize books to foreign novels, for
those who like reading would like to keep their books as prestige as posible. Tiki started a service call
“bookcare” that anyone who has a account on Tiki can sign up to with a price, so that Tiki can wrap the
book cover in a high quality wraping to preserve the books. Moreover with this being accomplish with the
help of receiving unique data from each user registering the service making the easier to recognized that
individual, so whenever that individual order a book from the website then their order would be marked
when going through Tiki storage house will be wraped and be repackage for delivery. There also another
service that Tiki offer to user that work well together and similar to Bookcare that is the TikiNow
membership which help register user will receive their order within a day which would go through the
same process as Bookcare with the difference of having more benefit of the user would receive freeshiping
with added 15% discount on their order, and be part of involvement of testing out new feature and service
that Tiki come up in the future [ CITATION Tik202 \l 1066 ].
6.1.4. Comparison of digital tools and hardware to traditional physical channels

In traditional physical channels any business person want to have their brand be known would have their
brand be broadcast on to television so they can have any brand recognition or chose to sell their product in
a supermarket like Wallmart, Target and have to share what little profit the company earn with the
distributor which is not ideal, so many entrepreneur would go bankrupt as their brand does not have any
regconition. But with digital tools and hardware have change that now anyone can be an entrepreneur
example of this is any Youtube creator who amass enough social presence can open up a clothing line and
write a book. The same case applied for Tiki as well, for at the start the Tiki website only sell books that
many are hard to come by like translated Japanese novels that teens enjoy reading or untranlated English
books that come in a great deal and have regular sales which is better than any books store in Vietnam that
charge double the initial pricing with little to none discount. From there Tiki have earn it brand recognition
of best book selling website.
The current state of Tiki now with the change of the market being affected with COVID-19 has not change
all that much with the exception of delivery man has to wear a mask when going out to deliver the package
which is made mandatory by the government. However, with COVID-19 people are prone to stay at home
to self-isolated, so any traditional channels like supermarket or convenience store has to close off which
will lose visitor at an alarming rate because of the high density of people traveling there might spread the
disease more. This is where Tiki come in to replace that missing market any essential product like
toiletries can be order online with minimum contact of the outside environment, and as for the concern of
food can be solve as well as Tiki offer TikiNgon service which people can buy fresh ingredient on Tiki
website as of risk factor involving with delivering to infected zone Tiki would tell that the product would
not be delivered in that zone. In short, as people concern with COVID-19 spreading people can go on to
Tiki website and do all their groceries shopping at the comfort and safety of their home.
Another aspect of digital market does better than traditional channel is that the individualization of the
user. Example of this is traditional channel have to rely on the user have to carry a membership card when
goes shopping, but not for digital market that everything have been digitalize in the company server user
just have to login into their account and any services they register before would be recognize by the system
and offer a unique experience that is tailor for that individual. Given the data that consumer send back to
the company can be analyze by the algorithm to support the user experience better.
7. The current application of digital tools of TIKI

After the 2017 period with Pr activities to enhance the brand image, Tiki officially entered the money-
burning race with other e-commerce giants like Zadara and Shopee. By the fourth quarter of 2018, tiki had
ranked second in the website traffic rankings with 35.9 million average visitors per month after Shopee.
The most important of e-commerce sites is activity and website traffic leading to purchases. Tiki has
incorporated 6 categories of e-communications tools or media channels in nearly days’ campaigns to
promote its brand image including: Searcch marketing, Onlline Pr, Online Partnership, Social media
marketing, Opt-in 0mail, along with offline communications tools to create the best results for your
campaigns. Take a look at Tiki's main motivating tools and evaluate the success with competitors such as
Tiki, Lazada.
Based on research data by Iprice website, published on July 21, 2020, Tiki is currently ranked 2nd on the
ranking of top 50 leading e-commerce websites in Vietnam with 21,147,600 visits in Q2, top 3 on iOS
apps and top 4 on Android apps.[ CITATION iPr20 \l 1033 ]
Besides, the application of RACE model for digital of tiki is also perfectly reasonable in the current digital
age.
At Reach stage: Through digital tools combined with offline communication activities, tiki's goal is to
convert customers to the website to take actions. The target is Unique visitoer, value pervisit and fan /
follower from these activities.
Act phase is considered extremely important that customers decide to use the service or not. Action steps
towards lead conversion rate, time on site and number of shares / comments / likes are taken.
The period of Convert is controlled directly on revenue / profit. The number of orders and the value of the
order will be used to assess the success of this stage.
Finally, the Engage phase: Successful organizations and companies will decide at this stage. The number
of customers who return to purchase, their satisfaction and loyalty are key values to control.
Let's take a look at the main digital platform used and evaluate the results from them:
7.1. Search marketing

Search Marketing tool is an indispensable tool today with the development of the internet age. According
to a report from Iprice for the main traffic channels of the top 4 e-commerce platforms from Vietnam, 37%
of visits are based on natural searches. Therefore, promoting ads through SEO tools, Paid for click is
indispensable for Tiki.
The search is set up by Tiki with suggestions that are suggested when customers type keywords on google.
Tiki also put products on its store to display directly on google when customers type in search keywords.
Tiki web SEO tools, google adwords and Pay per click ads are strongly promoted.
7.2. Social media marketing

Social media marketing tools are the best brand-accessible tools available to all companies today.
Although not bringing direct results like SEO of search marketing, these tools are widely used and have an
active approach to customers instead of being passive when being searched.
From 4/2019, Tiki launches "Tiki đi cùng sao Việt " with the aim of providing consumers with a perfect
experience in addition to using services that also bring spiritual life as well as the future as a fulcrum for
Vietnamese artists. Because of the advantages of social, tiki has made the most of social media marketing
tools to promote their campaign
7.2.1. Facebook ads, Instagam ads, Audience Network

With users of all ages, all generations, Facebook is considered a "national" social network. This has made
Facebook always hold the position of the most popular advertising channel in Vietnam with more than
53% of vipeople surveyed said they often access ads through the platform.
Up to now, tiki currently has nearly 3 million followers on facebook. This figure is said to be much lower
than their main competitors, Shopee (18 million), Lazada (30 million). However, in the past tiki had
effective Facebook ad campaigns with effective numbers, making this tool an important tool.
A specific example from the effectiveness of FB ads is published about the campaign was run for 12 days
in March 2018 and used automatic placements to appear on Facebook, Instagram and Audience Network:
 50% increase in ad spend for low-priced product ranges.

 20% increase in profits on ad spend for the high-priced product range.
 22% discount on each order for low price product range.
[ CITATION Fac20 \l 1033 ]
In addition to actual advertisements for products or brands. Tiki also takes full advantage of influences
from influences on social networking sites with photos from their personal facebook. With a more detailed
target of customers, the advertising tool from Facebook is said to be more effective and cost-effective than
other tools on the Vietnamese market. The intelligence of the AI system with the Facebook Pixel tool also
helps advertisers to target their customers directly. The Facebook Pixel is an extremely logical platform
for Tiki to attract the desired number of customers. When someone visits tiki's website and takes an action
(e.g., a purchase), a Facebook pixel will be triggered and report this action. This way, you'll know when
customers take action after viewing ads on Facebook. Or Facebook will also recall this ad on consumers'
new feeds about products viewed on the website. This results in a higher conversion rate to purchase
behavior than other tools.
7.2.2. Youtube
Besides Facebook, Youtube is considered a digital tool that is considered as an important advertising tool
for tiki to date. The investment costs for the "Tiki with Vietnamese stars" campaign for making music
videos uploaded on youtube and advertising under the sponsorship of tiki have brought high results. After
nearly 1 year of broadcasting, Tiki and Vietnamese stars have reached over 2 billion views, reaching 300-
400 million users with 37 MVs on Top Trending YouTube and 16 MVs on Top 1 Trending YouTube. It is
also the first step to realize the desire to become a brand not only for shopping needs, but also associated
with the daily spiritual life of Vietnamese people, Mr. Bui Ngoc Hien, Director of Trademark and
Communications informed at Tiki. [ CITATION Bra20 \l 1033 ]
The tools from youtube also allow to reach customers through the content of interest and the appropriate
age or gender criteria for products. Tiki has made the most of advertising on youtube with banner ads,
clips, or catalogs directly leading to their website.
Forexamble: Tiki collaborated with Maybelline Cosmetics New York and singer Hien Ho on December
12, 2019. The campaign lasted for 17 days, based on the scenes of Maybelline's new lipstick product
appearance in the music video "There is no" by singer Hien Ho, using advertising tools from Facebook to
maximize reaching customers who are 18-30 years old women in Vietnam, thereby promoting and
promoting sales for the lipstick product line of this cosmetic brand.
The campaign has recorded many impressive results. Specifically,
 Purchases of this product on Tiki grew 2.7 times;

 Increase 17% of application installation rate on Tiki;
 Return on ad spend for mobile apps increased 5.5 times;
 Return on ad spend for website increased by 7.2 times;
 Partner sales during this period also increased by 3.3 times.
7.2.3. Phone application, affiliate marketing and other channels.

 Phone Application
According to the report of Vietnam E-Commerce Map provided by Iprice. Tiki's mobile application is
currently ranked 3rd in the Top e-commerce applications which is loved and trusted by customers.
Operations on e-commerce applications are also integrated with the payment tools available on third-party
applications that support directly on smartphones.
 Affiliate marketing
Tiki also uses afillate marketing to maximize the effectiveness of sales through 3rd parties as well as to
benefit consumers in general. Currently, some products have high product value, Tiki has a very high
commission as follows:
- Phones, tablets: 1.28%

- Digital equipment, accessories number: 4%
- Electrical appliances: 4%
- Housing and life: 4.4%
- Television, audio-visual equipment: 1.76%
- Laptops and computers: 1.28%
- Cameras, camcorders 1.28%
These programs also help businesses save a lot of marketing costs, so partners can make money from
marketing for Tiki products. The high discount rate and the ability to take good care of customers make
Tiki Aflillate highly appreciated and trusted by partners. This is also the pioneering digital tools compared
to the remaining competitors in the e-commerce market that tiki uses.
[ CITATION Web20 \l 1033 ]
 Other channel tools.
In addition to using direct advertising tools, Tiki also uses Pr online tools on newspapers of other websites,
in addition to promoting links on partner applications that Tiki also uses and carries. The results are not
small. Tiki's website also provides a link to subscribe to newsletters directly from email. Offline
comunication tools like advertising on TV, Pr or sale promotion are also a small factor to use as a fulcrum
to use digital tools online. Tiki has used most digital tools to promote the brand and sell products on their
website.
8. Evaluate and compare with current rivals.

In the current period, Tiki and its competitors are all enrolled to reach customers. The digital tools used by
Tiki to maximize the benefits of digital to the point of touch. The RACE model used by Tiki is reasonable
in the current period.
The changing era of technology including hardware and software has taken Tiki and e-commerce to a new
page. From establishing a website to sell book products to customers.Today Tiki has transformed more
from Push to Pull. Instead of just wanting to sell their products, today's e-commerce sites have built
business models to pull customers on their side and use their services. Today's buying steps also force
customers to engage with them and create communication instead of just selling like traditional. For
example: Customers need the operation to confirm the order, confirm the receipt and evaluate the
satisfaction level after receiving the product. This can cause customers to return to the website or phone
app to perform the above operation. The Tiki coin accumulation program used to redeem discount
vouchers is also conducted to retain customers. Therefore, Tiki has more opportunities to sell other
products and increase loyalty from consumers.
The change to marketplace model also helps Tiki to expand its product branches to more diverse. Modern
tools such as google alalyzing, facebook ads, facebook pixels, youtube can analyze and give the most
accurate and specific results.
The change of smart phone universal technology market also helps e-commerce to grow strongly.
Customers can complete all purchases, check trakking products, with just one mobile phone anytime,
anywhere. In addition, the 2h fast delivery program in big cities or 24h delivery is the strong point of Tiki
and is highly appreciated by customers. However, the above policies are not completely targeted for
everyone because Tiki's main customers and services are still in big cities. Time and personal factors are
guaranteed 24/24 with a stable website system and good personal support features. The combination of
digital tools is not in conflict because they all lead the main link to tiki's website and the goal is revenue.
Tiki has use well all the basic tools that are essential to E-commerce company from using social media to
boost the activity of the user by showing their past search product on Tiki to make sure they are reminded
the product they wanted is on Tiki website and being offer more item that are in the same category. The
same with the company personalization system that help user feel that Tiki is tailor to that user preferences
as they continue using the application more, and this will be more heavily improve the experience of the
user if they register an account as it would enable them to sign up to account only feature like previously
mention services (TikiNow, BookCar, etc.) which would make the user experience more unique to them.
Real time had been implemented well with the Sale of the day as Tiki would pick random assortment of
item to go on sale during the day and when system clock turns into the next day the item would change as
well, and real time system go into deeper as anyone who order on the tiki can track the progression of their
package or they would receive an notification if they register an Tiki account. Giving the state of Vietnam
right now the company would survive without putting their employee out of their jobs. Recommendation
for Tiki to expand their market reach by including medical aid sub section on their website or have an
online doctor to recommend what medicine the user should be using if they are having any symptom both
option would be hard to acquire a medical license that would enable for Tiki to sell, and the other option of
hiring doctor just for giving out medicine recommendation as doctor cost a lot to work with and it is not
ideal to give out medicine base on the symptom that the patience having as it could be they are tired need
of a good sleep.
Compare with competitors
Although broadcast channels like facebook or instagram have brought live results, they do not bring the
expected number of interactions and followers, so these platforms and are currently much lower than
competitors. Tiki spent an average of VND 300-500 million / music video. Despite the successful results
of the music projects seen with 37 videos ontop trending, 16 videos top1 trending, it has not yet provided
Tiki or Youtube official sites with a large enough followers to gain value online. . With the number of
followers is nearly 3 million on facebook, nearly 366000 on youtube is too small compared to their
competitors (shopee has a followers of 17 million). Looking at the results, it shows that Tiki has not
achieved the desired results to achieve free traffic, free access from the above platforms even though they
have spent a lot of money.
Along with that, according to Iprice's report on e-commerce platform in Vietnam, although Tiki is still
ranked 2nd in terms of number of visitors, traffic has dropped significantly compared to the same period in
2019. Specifically moreover, the number of visits dropped from 33 million to 21 million in the second
quarter of 2020, in the same situation when Lazada decreased from 28 million to million. Meanwhile,
Shopee with its campaigns has increased from 38 million to 52 million in the second quarter of 2020. This
shows that the influence of shopee is overwhelming all competitors if Tiki or Lazada does not offer New
strategies are more effective.
Dropshiping from Shopee and cheap products from China are helping shopee gain this market share from
competitors. Other than high requirements from Tiki to register a business or a difficult request to open a
Store on their ecommerce store. Shopee allows consumers to easily become sellers and make the most of
this effect. In 2019 shopee allowed Dropshiping on their ecommerce stores. The cheap and diverse sources
of goods from China are updated and convenient to purchase instead of having to order and charge
intermediaries as before, this has attracted customers to use shopee more. The free shipping strategy has
helped Shopee attract customers using their e-commerce platform and show it through a significant
increase in traffic.
In general, Tiki is on the right track with its sustainable goal of bringing spiritual value through "tiki with
Vietnamese stars" campaigns and providing quality assurance products, delivery speed. Fastest product
and good warranty policy. However, this is detrimental to Shopee with a lower pricing strategy for
products on their channel. Shopee also provides an opportunity to make money easier for consumers in the
current period.
IV. The Growth of E-commerce & Digital Marketing Platforms and

The Impact on Business
1. E-commerce
According to a report of Vietnam Digital 2020[ CITATION WeA20 \l 1033 ], there were 68.17 million internet
users in Vietnam in January 2020, which accounts for two thirds of total Vietnamese population. The
number of internet users in Vietnam increased by 6.2 million (+10.0%), compared to 2019. In terms of
Mobile Phone Connections, there were 145.8 million mobile connections in Vietnam in January 2020,
which was equivalent to 150% of the total population. Between 2019 and 2020, the number of mobile
connections in Vietnam increased by 2.7 million (+1.9%).
The Essential Headline Data Related To The State of Mobile, Internet, and Social Media
Use[ CITATION WeA20 \l 1033 ]
Digital Growth Indicators[ CITATION WeA20 \l 1033 ]
The Vietnam E-commerce Association (VECOM) (2020) has indicated in the Vietnam E-business Index
2020 Report that the growth rate of e-commerce reached over 32% in 2019. Besides, Compound Annual
Growth Rate (CAGR) was about 30% in a 4-year period from 2016 to 2019.
The Scale of B2C E-commerce Market in Vietnam[ CITATION Min20 \l 1033 ]
The scale of e-commercial retail sales and consumer services in 2019 was about 11.5 billion USD. The
growth rate, as VECOM has predicted, will maintain at over 30% in 2020; consequently, the scale of
Vietnam’s ecommerce will exceed 15 billion USD.[ CITATION Vie201 \l 1033 ]
Tiki is taking advantages of E-commerce in the following aspects. iPrice Inisght announces “Vietnam E-
commerce Map in 2018”, with data from SimilarWeb, a website data analysis tool. At the beginning of
2018, Tiki received additional money from JD Group, adding to the investment of 44 million USD
received in 2017. By September 2018, the company continued to receive an additional 122 billion VND
from VNG. Accordingly, after receiving the investments, this company has made spectacular progress. At
the end of the third quarter, iPrice recorded the number of Tiki's website visits increasing to 47.59%
compared to the second quarter. In October, Tiki suddenly climbed to the second place nationwide in
terms of average number of website visits.
The Most Visited E-commerce Platforms in Vietnam 2018[ CITATION iPr18 \l 1033 ]
According to Southeast Asia E-commerce Report in 2019 by Google, Temasek and Bain & Company, it
is predicted that CAGR from 2015 to 2025 would reach 29%. By that time, scale of Vietnam’s e-
commerce will reach 43 billion USD, ranking the third in ASEAN. In the e-Conomy SEA 2019, Tiki also
is assessed by Google as having the potential to become future technological “Aspiring Unicorns”. With
the strength of understanding the local people, Tiki was in the Top 5 Ranking in Vietnam and also in the
Top 10 most visited e-commerce websites in Southeast Asia 2019.[ CITATION Goo19 \l 1033 ]
[ CITATI
ON Goo19 \l 1033 ]
Forbes Vietnam Magazine, as reviewed by Giang (2020), pointed out several notable achievements of
Tiki. Tiki now owns 34 warehouses, located in many strategic locations in 13 provinces and cities,
expanding the warehouse area to more than 80,000m2, doubling after two years. In the past two years,
sales of e-commerce platforms (sales partners via Tiki) have increased by 30 times. Business lines have
been expanded to nearly 40 times with over 40,000 sales partners. In 2019, Tiki sold 50 million products,
an increase of five times compared to 2017. In 2020, Tiki CEO expects to reach the new milestone of 100-
150 million products sold. With the dramatic growth of E-commerce, Tiki will have more opportunities to
stay stronger in this potential market.
Comparison between 5G and 4G[ CITATION Die19 \l 1033 ]
As could be realized from the table, 5G networks is ten times faster than current 4G networks and has
virtually no lag. Moreover, the types of technologies that create simulation environments such as Virtual
Reality (VR) or Augmented Reality (AR) have not been widely accepted. However, both AR and VR
have been possessing certain steps, especially in the field of e-commerce, when somewhat overcome the
limitations of the online shopping process. With network features designed to dramatically increase the
speed and power of wireless data processing, 5G networks are expected to significantly support data-
intensive applications like VR and AR, thereby harnessing There is great potential of this technology in
the commercial field.
The Forms of User Payment on E-commerce Sites[ CITATION Min20 \l 1033 ]
It can be inferred that consumer confidence in online purchases is low. The report show that the proportion
of online shoppers who choose to pay cash on delivery of COD is still very high - up to 88%. The report
also shows that only 55% of respondents are satisfied with the online shopping method, which means that
there is still a large percentage of potential customers that e-commerce service providers have to
conquer[ CITATION Min20 \l 1033 ]. The biggest cause affecting consumer’s sentiment is quality of goods.
This is clearly shown in the survey “Barriers of shopping online” [ CITATION Min20 \l 1033 ] , of which: 72%
afraid of verify the quality of goods, 40% because of not trusting the good providers. With the support of
VR/AR, shoppers can not only view photos and videos but also “try” products at different angle, or put
them in real space to consider with objects around. Therefore, VR/AR is expected to enhance the shopping
experience and contribute to changing user behavior in the future, thereby helping Tiki build brand equity
that Tiki can raise selling prices for products/services and promote the stock value of the business.
9. Digital Marketing Platforms
[ CITATION WeA20 \l 1033 ]
Based on the statistics, the change in social media users numbers shows a positive face, with 5.7 million
(+9.6%), compared to April 2019. Moreover, the percentage of active social media users accessing via
mobile is 99%. Influently, social media is a popular communication tool for almost all businesses in
Vietnam.
[ CITATION WeA20 \l 1033 ]

As could be seen from the chart, Facebook and YouTube are two of the most-used social media platforms
in Vietnam, with 90% and 89% respectively. According to recent statistics from YouTube, Vietnam is one
of the five largest markets of YouTube in the world. The average Vietnamese person spends more than
100 minutes a day on YouTube to enjoy entertaining content, in which music videos are the most popular
entertainment content. The sponsorship of music videos has not been new in the market for many years,
but Tiki's thorough approach to the "exclusive" and widespread strategy has brought a different effect.
[ CITATION Adv19 \l 1033 ]
After nearly 1 year of launching “Tiki đi cùng sao Việt”, Tiki and Vietnamese stars have reached over 2
billion views, reaching 300-400 million users with 37 MVs on Top Trending YouTube and 16 MVs on
Top 1 Trending YouTube.[ CITATION Bra20 \l 1033 ]
V. Conclusion
Although the size of Vietnam's online marketplace is still relatively small compared to giants like Japan
and China, it is expanding at an amazing rate. Base on the e-commerce landscapes, digital platforms have
been critically discussed in the report. This is a great opportunity for Tiki to expand your market and gain
access to a new potential customer base.
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ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 24. Digital Marketing

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1. Dương Văn Trường GBH18790 Trường

2. Ngô Quốc Bảo GBH18824 Bảo

Group number: 3. Nguyễn Thị Kim Anh GBH17552 Kim Anh

4. Trịnh Đức Hoàn GBH18286 Hoàn

5. Hoàng Thuỳ Trang GBH18861 Trang

6. Trần Quang Giang GBH17376 Giang

Class GBH0802 Assessor name Mr. Nguyễn Hữu Đăng Khoa

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

Assessment & grading criteria

How the activity meets the requirements of the criteria

Student 3 Kim Anh

Assessment & grading criteria

How the activity meets the requirements of the criteria

Assessment & grading criteria

How the activity meets the requirements of the criteria

Description of activity undertaken

How the activity meets the requirements of the criteria

Description of activity undertaken

How the activity meets the requirements of the criteria

Grade: Assessor Signature: Date:

Signature & Date:

III. Digital Tools, Platforms and Channels Audit.....................................31

II. External Digital Environment Audit

Artificial Intelligence (AI) and the impact of machine learning (ML)

Context is above all

Digital marketing activities among Vietnamese businesses

Digital Marketing vehicles being commonly used

Advantages / Disadvantages of Digital Marketing

Marketing challenges in the 4.0 technology era

Tiki storage model

Model through Tiki's repository

2.7. Physical Evidence

2.9. Pros and Cons

3. The micro environment of Tiki

3.3. The Competitors

Screenshot of Fahasa.com website (Fahasa.com, n.d.)

3.4. The Intermediaries

4. The Macro Environment

4.2. Legal Constraints

4.3. Social Factors

4.4. Technology Factors

4.5. Ethical Factors

5. Business Model of Tiki

6. Value proposition of Tiki

III. Digital Tools, Platforms and Channels Audit

6.1.3. Benefit of digital media

6.1.4. Comparison of digital tools and hardware to traditional physical channels

7. The current application of digital tools of TIKI

7.1. Search marketing

7.2. Social media marketing

7.2.1. Facebook ads, Instagam ads, Audience Network

 50% increase in ad spend for low-priced product ranges.

 Purchases of this product on Tiki grew 2.7 times;

7.2.3. Phone application, affiliate marketing and other channels.

- Phones, tablets: 1.28%