Marketing Essay: Alibaba Group
[pic 1]BY ARJUN BHALLA42872375EXECUTIVE SUMMARY Due to the advances in information and communication technology in the last decade has exponentially transformed commerce into a new transparent digital business climate known as ‘e-commerce’. With such a transition, poses many opportunities for businesses to establish digital networking through various platforms or ‘marketplaces’ in the online world. This report provides a detailed description of two brand management theories and how these theories are applied to Alibaba’s branding and marketing ventures. The report finds many prospective opportunities and avenues for Alibaba to explore in transitioning its operations to the global playing field. Some of these recommendations include aligning with successful, thriving companies that have found much success in the host country through strategic alliances, implement thorough research and development in different emerging markets, consumer needs and tapping into developing country markets. While Alibaba has proclaimed much success in the space of such a short time, it is paramount for the Chinese e-commerce titan to employ a brand audit in order to better understand ever-changing consumer tastes, perceptions towards their brand, products and services by enhancing both their brand equity and brand awareness, as these are two central issues which have created detours in Alibaba expanding its operations overseas.
The results of the report exemplify the company’s profound success in China, its current standing and potential to grow into one of the most equitable brands in the world. These results conclude that implementing branding strategies have contributed to the success in developing brand equity of Alibaba, initially establishing business ties with Goldman Sachs raising over US $5 Million and US $20 Million from Softbank, (A Japanese telecommunications company). Jack Ma, the company’s CEO, is the company’s central force behind the company’s success. Alibaba in 1999 started from privately owned business to now a publically traded company with an IPO of a record breaking 295 Billion (2013). With the e-commerce giant going public, while creates many new opportunities, also poses concerns for foreign shareholders in regards to brand image and loyalty. TABLE OF CONTENTSIntroduction…………………………………………………4Keller’s Brand Equity Theory……………………………..4Relationship Marketing Theory…………………………..5Alibaba History and overview……………………………6Strategy 1 – Product Diversification…………………….7Strategy 2 – Cost leadership……………………………..7Evaluation of brand theories and strategies…………7Recommendations……………………………………….8Implications…………………………………………….11Conclusion…………………………………………….12References…………………………………………….13INTRODUCTION This brand audit is utilised to critically examine Alibaba Co. Branding and marketing strategy, as well as derive essential information on strategies employed in the endorsing the brand internationally and domestically. The report also emphasises two marketing strategies Alibaba Group applies in presenting their brand to prospective consumers and markets. Such underlying marketing approaches will be evaluated and intertwined with two applicable branding theories; “Keller’s Brand Equity Model and Relationship Marketing Theory. The application of these brand approaches will assist the e-commerce phenomenon position itself and generate brand awareness on the global scale. Through attaining this information, has resulted in the implementation of three critical recommendations, specially catered to Alibaba Group’s goals and objectives, which aims to diminish any negative implications and further the success of the brand its status in the foreseeable future.