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Marketing Strategy of Alibaba

by Yu-bei Tsai

Dec 23, 2021

Competitors Market Research, Vitcore Marketing Agency

Alibaba’s Success in Marketing Strategy

Alibaba is the largest online commerce company in China, and also the most influential ecommerce worldwide. It provides B2B, B2C, and C2C products and services. 80% of the online transaction happened in Alibaba. So it is a monopoly in the Chinese retailing industry.

Marketing Strategy of Alibaba https://vitcore.net

Before the Alibaba, the SMEs in China are hard to operate and show the latest products. However, the digital technology helped many companies to grow. Besides, Alibaba benefits the SMEs by providing them marketing data for forecasting consumers behaviours.

But how can a such big platform form a common trust? One of the pushers is Alipay. It is a transaction service introduced by Alibaba. And it not only built trust within sellers and buyers. But also reduce the transaction fee.

4Ps Marketing Mix analysis of Alibaba

Marketing Strategy of Alibaba https://vitcore.net

Product Strategy of Alibaba

Alibaba provides a wide range of goods and services. The company included many services, such as the well-known one, Taobao offering daily goods to the consumers. Also, the company provides online payments, health and sports, and so on.

Price Strategy of Alibaba

It use the competition pricing strategy. It offers the best price comparing to its rivals. So other competitors are hard to join the game. Besides, it mostly does not ask for transaction cost.

As for the way it gain revenue, one is providing other businesses advertisement platform. Another way is the membership fee. Thus, it is attractive for buyers.

At the beginning, it attract lots of customers by free membership. Later, it started to charge after enough members have joined.

Place Strategy of Alibaba

It mainly relies on online platform. The best benefit is the convenience to reach to more people. And it can get access to specific buyers for creating the niche market. For the target market, it included Chinese market and Global market with English language. But it was satisfied with the outcomes, it is still expanding the market in Japanese, Korean, Spanish. The second benefit is the reduction of operating costs.

Plus, Alibaba owns a large number of replaceable suppliers in developing countries. So it does not need to worry about supply chain disruption.

Promotion Strategy of Alibaba

It promotes through traditional channels and digital platforms. Also, being the sponsor of a national or international event is effective for advertisement.

It is good at using the catchy sentences to attractive people. And it promotes through festive sales, such as 11 November.