Marketing Mix of Alibaba Group
Alibaba group is a fast growing ecommerce and cloud player based in China. The headquarters of Alibaba group are in Shenzhen, China and it is led by founder Jack Ma. The company has seen fast growth in its ecommerce business in the recent years. Apart from that the cloud revenue of Alibaba group has also risen fast. Fiscal year 2019 has ended on a strong note for Alibaba group and apart from growth in its customer base, its total revenue also saw impressive growth. The company is investing a lot in research and development to increase its pace of growth. However, international footprint of Alibaba group is still much smaller as compared to leading ecommerce player Amazon.
Take a look at the marketing Mix of Alibaba group analyzing its four P’s – Product, Place, Price and Promotion.
Alibaba group is a leading Chinese ecommerce business and also a major cloud player in the Chinese market. Apart from that, the company also offers digital media and entertainment products. Ecommerce is the largest business segment of Alibaba group accounting for more than 85% of its revenue in FY 2019. Its Chinese ecommerce business includes China retail, Taobao and Tmall. Taobao Marketplace is China’s largest mobile commerce destination with a large range of product offerings and Tmall is China’s largest third-party platform for brands and retailers. In March 2019, Alibaba’s China retail marketplaces had 721 million mobile MAUs (Monthly Active users). Alibaba Cloud offers a complete range of cloud based services that include elastic computing, database, storage, network virtualization services, large scale computing, security, management and application services, big data analytics, a machine learning platform, and IoT services.
Alibaba group’s core market is China. It is based in Shenzhen, China. Its ecommerce platform provides the international brands access to Chinese consumers. While it is a leading Chinese ecommerce and cloud business, its international footprint compared to the leading competitors is still much low. However, the brand is focusing on international expansion in order to grow its presence in Asia and Europe. To grow its presence in international markets, it is also partnering with other brands or investing in them like the Tokopedia in Indonesia. Apart from that Alibaba intends to grow its presence in Southeast Asia, India and Russia.
Price : –
In terms of pricing, Alibaba has relied on a competitive pricing strategy that is targeted at deeper market penetration. While Alibaba has grown into a popular brand in the China market, in the rest part of the world it is still struggling to expand. This is also a reason that the brand has mainly focused on pricing its products and services competitively so as to acquire faster growth. Apart from e-commerce in its cloud computing segment too, it has used a competitive pricing strategy in order to grow its market share.
Alibaba has acquired a lot of fame in in the recent years. Apart from quality products and services, the reason behind its growth in popularity is customer convenience. Now, it is a leading brand in China and targeting faster international expansion. Its websites including its main e-commerce website are the main channel of marketing for the brand. In a short period of time, the brand has built significant recognition in China and overseas. News and media are an important marketing tool for Alibaba. Apart from them, the brand also uses its own marketing platforms for branding and marketing. The brand also invests in Corporate social responsibility including poverty relief and charitable programs in order to create a strong and accountable image.
- Alibaba Group Annual report 2018 and 2019.