Analysis of Shopee and Lazada Applications Based on the 4 Ps (Marketing Mix)

 Analysis of Shopee and Lazada Applications Based on the 4 Ps (Marketing Mix)

By Janpha Thadphoothon

Let me start by saying that I’m not a marketing expert, business professional, or IT specialist. I’m an English teacher based in Bangkok, Thailand. Over the years, I’ve been teaching Business English and have noticed the growing presence of online shopping platforms like Lazada and Shopee. I feel it’s important to share what I’ve observed and what I believe could be useful for others.

E-commerce has grown tremendously in recent years, and Shopee and Lazada have emerged as two of the most dominant platforms, particularly in Southeast Asia. They are household names in Thailand, and their widespread success can be attributed, in part, to their ability to align with the classic 4 Ps of marketing—Product, Price, Place, and Promotion.

I understand that the 4 Ps are not new, and there are more recent concepts and models to analyze modern trade and e-commerce. As I mentioned, I’m an English teacher, and I’m more familiar with the traditional marketing model.

OpenAI. (2024). Illustration showing the analysis of Shopee and Lazada through the 4 Ps of marketing. DALL-E. https://chat.openai.com/

In this post, I’ll break down how these platforms thrive based on these core marketing principles, and why their business models resonate so strongly with consumers in Thailand and beyond.

What Are the 4 Ps of Marketing?

To start with the basics, the 4 Ps, often referred to as the marketing mix, provide a framework for marketing strategy that has been essential since its introduction in the 1950s. The four elements—Product, Price, Place, and Promotion—serve as levers businesses can pull to successfully market their goods and services. Over time, this framework has been expanded to include more Ps, such as People, Process, and Physical Evidence, but for now, let’s stick to the classic four and see how Shopee and Lazada stack up.

1. Product: What Do Shopee and Lazada Offer?

Shopee and Lazada offer similar product selections, excelling at meeting their users' needs with a wide range of goods, from electronics and fashion to groceries and home essentials. These platforms function as all-encompassing marketplaces, catering to almost every consumer need. This extensive variety is one of the key factors that sets them apart in the competitive e-commerce landscape.

Shopee’s Edge

Shopee has positioned itself as a mobile-first platform, focusing on ease of use, accessibility, and a fun, interactive shopping experience. With features such as in-app games, flash sales, and the incorporation of social features, Shopee enhances customer engagement. Shopee’s integration of live-streaming also allows sellers to demonstrate products in real-time, providing consumers with more information before making purchasing decisions.

Lazada’s Approach

Lazada, similarly, is known for its superior logistics and reliability. They have a more polished, professional image and focus on providing a seamless shopping experience with reliable delivery times and quality assurance. Lazada also provides a more established selection of international brands, appealing to customers who seek trusted names and higher-end products.

Both platforms have mastered the art of offering a product range that caters to their diverse customer base, and it’s this ability to meet varied consumer demands that makes their product offerings so successful.

2. Price: Competitive Pricing Strategies

When it comes to price, experts would agree that Shopee and Lazada have perfected the art of competitive pricing. Consumers flock to these platforms not only for convenience but also because they offer some of the lowest prices on the market. The ability to shop for cheaper products online is a key driver for e-commerce growth, especially in price-sensitive markets like Thailand.

Shopee’s Strategy  

Shopee tends to focus heavily on discounted products and competitive pricing. Their frequent flash sales, special deals, and in-app vouchers make shopping a game of finding the best deal. Many users feel they can get more bang for their buck on Shopee, particularly when they take advantage of seasonal sales or promotions.

Lazada’s Strategy

Lazada, while also offering competitive pricing, takes a slightly different approach. Their platform highlights premium brands and often offers exclusive deals from international partners. While Shopee may be more known for everyday low prices, Lazada builds on the appeal of quality assurance, brand trust, and exclusive deals.

Both platforms meet the "Price" P by ensuring that consumers feel they are getting value for money, whether through daily discounts or exclusive promotions.

3. Place: Ubiquity in the Digital Age

One of the most transformative elements of the e-commerce boom is how these platforms have revolutionized "Place." Traditionally, this P referred to the physical location where products were sold. In the digital era, it means making products available whenever and wherever consumers want them. Shopee and Lazada excel in this domain by being omnipresent, thanks to their mobile apps and websites.

Shopee’s Ubiquity

Shopee's mobile-first strategy allows it to be accessible at any time. With its user-friendly interface, consumers can browse, shop, and track orders with ease from their smartphones. In many ways, Shopee has made the act of shopping spontaneous, turning every idle moment into a potential purchase.

Lazada’s Reach

Lazada’s logistics infrastructure gives it an edge when it comes to reliable delivery and accessibility. Through its strong partnerships with delivery networks, Lazada ensures timely deliveries even to more remote areas. This reliability strengthens its position in consumers’ minds as a dependable platform, allowing them to confidently shop from virtually anywhere in Thailand.

In short, both platforms have embraced the concept of being "everywhere" for their customers, making shopping not just convenient but a part of daily life.

4. Promotion: The Power of Incentives

When discussing Shopee and Lazada, we cannot ignore the sheer volume of promotional activities they use to entice customers. Promotions play a central role in driving engagement, traffic, and ultimately sales. From limited-time offers to vouchers and loyalty programs, both platforms have created a shopping environment that feels constantly rewarding for the customer.

Shopee’s Promotional Tactics

Shopee is known for its aggressive promotions. The use of gamification in their app, such as daily login rewards and games, creates a sense of excitement around shopping. The app frequently offers vouchers, free shipping, and other incentives to keep users coming back.

Lazada’s Promotion Strategies

Lazada's promotions often revolve around partnerships with big brands and exclusive deals. Their campaigns, such as the popular "11.11" and "12.12" sales, are designed to build anticipation and excitement. Lazada also offers various cashback deals, brand-exclusive offers, and free shipping promos to sweeten the deal for customers.

In essence, promotions for both Shopee and Lazada have become the fuel for driving consumer engagement and increasing the frequency of purchases. Whether it's a flash sale, a major event like "11.11," or a daily reward, these platforms have ensured that promotions are integral to the shopping experience.

Impacts on Thailand's Local Businesses

The rise of e-commerce platforms like Shopee and Lazada has had a profound impact on Thailand’s local businesses. On one hand, these platforms have provided opportunities for small businesses to reach a wider audience and grow beyond their immediate geographic limitations. On the other hand, the increased competition from larger, well-established brands has created challenges for smaller, traditional businesses. 

Opportunities for Growth

For many Thai local businesses, Shopee and Lazada have become essential tools for expanding their reach. Previously, a local shop would have been limited to customers in its immediate area, but now, even the smallest vendors can sell products nationwide. The platforms offer relatively low entry barriers, allowing sellers to open online storefronts and market their products with minimal investment. This shift has enabled many Thai entrepreneurs, especially in rural areas, to tap into a broader market and generate more revenue.

Moreover, Shopee and Lazada have introduced programs and features to support local sellers, such as targeted promotions, seller tools, and insights into consumer behavior. These resources help local businesses optimize their strategies and increase sales, allowing them to compete in an increasingly digital economy.

Increased Competition

While e-commerce opens doors, it also intensifies competition. Small, local businesses now find themselves competing not only with each other but also with large multinational brands that can leverage economies of scale to offer lower prices and better promotions. This puts pressure on smaller businesses to differentiate themselves, either by offering unique products, superior customer service, or a strong local identity.

Furthermore, many traditional brick-and-mortar stores have struggled to adapt to the online shift. While some have successfully embraced digital platforms, others face difficulties in navigating the complexities of e-commerce, such as managing online marketing, logistics, and customer engagement.

Impact on Traditional Retail

The convenience and competitive pricing of Shopee and Lazada have also contributed to a shift away from traditional retail in Thailand. Consumers, especially younger generations, increasingly prefer the ease of online shopping, leading to a decline in foot traffic for physical stores. This has forced many retailers to rethink their business models, with some transitioning to hybrid models that combine both online and offline strategies.

In this regard, I would like to offer my personal opinion. Traffic jams in many parts of Thailand, especially in Bangkok, make it costly and time-consuming to travel to traditional shops or malls. As a result, people find it more convenient to simply click and pay online.

Support for Local Economies

Despite these challenges, Shopee and Lazada have also played a role in supporting local economies. Many small businesses have seen increased sales, and local artisans and niche markets have found new avenues to showcase their products to a global audience. Additionally, the growth of e-commerce has spurred the development of related sectors, such as logistics and digital marketing, creating new jobs and opportunities within Thailand.

Overall, Shopee and Lazada have brought both opportunities and challenges to Thailand's local businesses. While they provide a platform for growth and expansion, the intense competition from larger players poses a significant hurdle. For local businesses to thrive in this evolving landscape, adapting to the digital marketplace and finding ways to stand out will be key to long-term success.

Shopee and Lazada Through the Lens of the 4 Ps

By analyzing Shopee and Lazada through the framework of the 4 Ps, we can clearly see why these platforms have gained such a strong foothold in Thailand and globally. They have excelled at offering a diverse range of products, ensuring competitive prices, being available to customers anytime and anywhere, and consistently engaging consumers through effective promotions.

As online shopping continues to evolve, these platforms will likely remain dominant players, adapting their strategies to meet ever-changing consumer preferences. The 4 Ps, despite their age, remain a relevant tool for understanding modern e-commerce success, and Shopee and Lazada are perfect case studies of how these principles are applied in the digital world.

In my opinion, it is obvious that the Thai market, being the second largest in Southeast Asia, is attracting new platforms, both local and international. Common sense tells us that as this market continues to grow, there will be an increasing number of players looking to enter and compete.

To effectively meet these new challenges and capitalize on emerging opportunities, Thailand needs to focus on enhancing its capacity and productivity. This will not only help in accommodating the influx of new platforms but also in ensuring that the country remains competitive in a rapidly evolving market landscape.

About the Author

Janpha Thadphoothon is an assistant professor of English Language Teaching (ELT) at the International College, Dhurakij Pundit University in Bangkok, Thailand. He holds a certificate in Generative AI with Large Language Models issued by DeepLearning.AI. His research interests include the intersection of language, technology, and the philosophies underpinning social structures.