59 Han Zheng 2019 Users pay small refundable entry fee 001 RMB to take part

59 han zheng 2019 users pay small refundable entry

This preview shows page 59 - 66 out of 68 pages.

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© Han Zheng, 2019 Users pay small refundable entry fee (0.01 RMB) to take part Customer needs to invite 5 friends for chance to win product for 0.01 RMB Pinduoduo‘s core mechanisms (part 1) GROUP BUYING BARGAINING Get discounted group-buying price: invite friends on social networks, join an existing team purchase, or initiate a new team purchase Group- buying price Original price Join existing groups Share product with friends and ask them to help bargain for cheaper price Each time friend helps bargaining, the price decreases until it hits 0 LOTTERIES Bargained price Original price 60
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© Han Zheng, 2019 Games to receive objects for discounts Watering a tree to get a fruit Accomplish multiple tasks to get gold Omnipresence of timers Number of people who already bought the product Spontaneous flash sales and coupons with short duration Pinduoduo‘s core mechanisms (part 2) PRESSURE GAMES LEADERBOARD Ranking of users who made the most money out of inviting friends Top user made 2,940 RMB from sharing with 290 friends 61
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© Han Zheng, 2019 62 How Pinduoduo is different from its competitors More impulse buys Increased customer retention Encourages users to check in regularly Establishes platform communities Lower entry barrier due to integration as Mini program within WeChat Lower cost of user acquisition Easy mobile payment via WeChat Pay Strong focus on niche market segment neglected by competitors User behavior oriented (all about good deals) Using customers as platform ambassadors Leverage social capital (trust) of coustomers‘s social network Low customer acquisition costs Leverage users‘ social networks High degree of gamification and entertainment Leverage WeChat ressources Niche market DIFFERENTIATING FACTOR COMPETITIVE ADVANTAGE A reloaded online group-buying model with smart usage of viral marketing measures and strong leverage of psychological effects on consumers
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© Han Zheng, 2019 63 Agenda Conclusion 7
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© Han Zheng, 2019 How branding has changed in the digital world 64 Source: Anand Narasimha One-way message through advertising and PR in mass media Creating brand differentiation Mass consumers (one-to-many) Limited market research Conveying brand proposition Awareness and image creation Interactive content through paid, owned and earned platforms Creating brand relevance Prosumers (one-to-one) Real-time customer analytics Activating brand conversations Search generation and content engagement MESSAGING FOCUS TARGETING KEY METRICS TASK KEY OUTCOME Conventional branding Digital branding Conventional branding and digital branding need to be integrated seamlessly to build brands in modern markets
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© Han Zheng, 2019 65 Enhancing the customer experience by blending digital with physical VR/AR IoT AI Analytics Customer journey Digital engagement Virtual engagement & configuration Cross-channel assistance Individualized welcome Personalized driving experience Exclusive & customer offer Ongoing engagement prior to handover Enhanced experience through in-car assistance Connected service Smart repair Brand advocacy Example: Car dealer
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