Essay About Social Commerce And Company’S Own Value Propositions

Service Marketing Proposal
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Group 1 Term Project TMON Case ProposalIndustry OverviewRecently, there is a growing interest toward social commerce using SNS (Social Networking Service), and the size of its market is also expanding due to popularization of smart phones, tablet PCs and other smart devices. In Korea, Social, short for social commerce services, refers to a trio of mobile app-based shopping malls: Coupang, Ticket Monster and WeMakePrice, in order of revenue and user traffic. The trio’s business model has also changed over time. No longer providing just daily deals, they now sell just about anything, increasingly undermining offline shops and other existing online shopping malls.[pic 1][pic 2][pic 3]As the chart above shows, Coupang increased the gap in market share between itself and followers by launching so called Rocket Delivery System. At the moment, TMON and WeMakePrice are beating each other to occupy the second place. It means that achieving company’s own value propositions is becoming important game of the rule in this industry.Company OverviewTicket Monster (TMON), social commerce website, has been strengthening its mobile sales platform as a growing number of consumers are buying a wide range of goods using smartphone apps. During 2013-2014, they showed the explosive growth, from 47 billion (FY 2013) to 340 billion (FY 2014), but were continuously followers after Coupang. Our team concluded that the reason why TMON is always 2nd player is they do not have a clear value proposition and whether they can be a leading company or not depends on how to enhance a better customer service and make a strong brand relationship.Our ApproachOur loyalty program will be focused on maximizing customer lifetime value. For this, we are going to evaluate the value of customer and value for customer, find key attributes for aligning resources efficiently, and define the main value proposition for loyalty program. It will help TMON transform transactions from discrete to continuous and build a strong brand relationship from multi to single with customers.