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1 INTRODUCTION ..................................................................................................... 1
2 EXECTUTIVE SUMMARY ..................................................................................... 3
3 THE ANALYSIS OF THE CURRENT MARKETING SITUATION ..................... 4
4 STP ANALYSIS ........................................................................................................ 7
5 IMPLEMENT MARKETING MIX .......................................................................... 9
6 FINANCIAL ANALYSIS ....................................................................................... 13
7 RECOMMENDATIONS ......................................................................................... 15
1 INTRODUCTION
Alibaba Group Holding Limited founded in 1999, it is a Chinese multinational
conglomerate. Their businesses are comprised of core commerce, cloud computing, digital media
and entertainment, innovation initiatives and others. Subsidiaries of Alibaba Group are including
Alibaba.com, Taobao, Tmall, UCWeb, AliExpress, Juhuasuan.com, 1688.com, Alimama.com,
Ant Financial, Cainiao, Lazada, Youku, Tudou, and Alibaba Cloud.
GROUP’S MISSION: “To make it easy to do business anywhere.”
Alipay is one of their product that belong to Ant Financial Service. It keeps the largest
market share (54.1%) as the first third-party online payment platform formed in China (China’s
third-party … in Q4, 2017). Alipay is one of the early products of Alibaba Group. It is even older
than Ant Financial, whose it is belong. Alipay provides an efficient online payment solution for
many businesses under the Alibaba Group, especially online shopping platforms. Sharing the
Loyal customers from the online shopping platform is one of Alipay’ competitive advantages.
This even affects our daily life. As common knowledge, the third-party online payment platform
is a solution to online purchasing. It is different from the other types of online payments because
third-party payment platform operated by the organizations with strong capital power and
credibility.
1.1 Objectives
The objective of this report is to make a marketing plan of Alipay, the most important
product of Alibaba Group, and enhance it by improve the self-educational feature of it.
1.2 Report structure
The report contains six sections:
1. Introduction
2. Executive Summary
3. The Analysis of The Current Marketing Situation
4. STP Analysis
5. Implement Marketing Mix
6. Financial analysis
7. Recommendations
1. For the first introduction part, the report presents the background and industry of Alibaba
Group, its mission statement and marketing objectives. In addition, it includes the objectives
and structure of the report.
2. The second part is executive summary, which summarized the contents of the report and
possible implementation.
3. The third part is the analysis of the current marketing situation. This part contains the
opportunities and threats which the enhanced Alipay will face, the SWOT analysis, and the
analysis of external and internal.
4. In forth part, the report provides the STP analysis to show the customer segments, target and
position about the enhance Alipay.
5. The fifth part provides the implement marketing mix of the enhanced Alipay, including the
analysis of 4P, the marketing personal required, and the ways to obtain support for the
enhanced Alipay.
6. The sixth part is financial analysis, which indicate the possible ways to earn revenue and
predict financial statement for the next 5 years.
7. The last part of the report is recommendations, which discuss the possible key successful or
failure factors to the marketing plan. This part also provides the evaluation and control
methods that base on marketing metrics, gives the conclusion for the study as well.
2 EXECTUTIVE SUMMARY
The business plan is for Alipay’s education function. Although Alipay already has a
complete functional framework. However, there are still some developing possibilities in some
perspectives. For example, the educational function. To make Alipay complete its functional
framework, we developed this business report.
First, we analyzed the current marketing situations. We believe that although Alipay now
faces some threats and weaknesses, such as government restrictions, market competition and data
security, it still has many opportunities and strengths in the market. With Alipay's huge market
share in the existing business and the future development of overseas businesses, we believe that
educational service as a new function of Alipay has a good development prospect in the future.
Then, we used STP analysis to determine target market and positioned the product. After that, we
developed relevant marketing strategies. The implement marketing mix includes 4P analysis and
implement actions. In addition, we refer to financial analysis of some existing education industry
companies, made a prediction of budget for marketing promotional activities and return of
marketing investment analysis.
3 THE ANALYSIS OF THE CURRENT MARKETING SITUATION
Strengths:
Alipay has gained a huge market share as the first mover of online payment App. According
to Hui, the value of the transactions on Alipay reached 5,966.6 billion RMB, and its market
owned 46.057% marketing share in 2013, the volume of the transactions was over 1,620 billion
in 2014 (Hui, B, 2016). As far as my knowledge, more than 80% people around me are using
Alipay and it has become the habit of paying for most of Chinese. Consumers can pay by
scanning or showing the QR code to the cashier, which is more convenient and safer than
carrying cash. Alipay also does not charge any fee to customers on paying. For individual users,
it’s free to withdraw no more than 20,000 RMB for free, and Alipay would charge 0.1% each
transaction after the users have withdrawn more than 20,000 RMB totally. The policy of
withdrawing fees is more beneficial to the users compared to the payment function of WeChat.
Alipay has developed and enhanced so many functions, which covered a variety of businesses,
and it has brought the convenience for its users. Simultaneously, the way of payment is
innovative for Chinese customers. Taobao, the biggest online shopping App, is run by Alibaba,
supports only one online payment App, which is Alipay. If the customers want to but things
through Taobao, they will pay first, and Alipay will keep the payment from the customers until
the customers make sure they received the satisfied products, the Alipay will transfer the money
to the sellers. Alipay guarantees the safety of customers payment, which has built a good image
for users. Good image and reputation has become one of the essential strengths of Alipay.
Weakness:
The huge market share has drawn the attention of Chinese government. Chinese
government has imposed some restrictions and policies on Alipay. For example, the fund, which
users could invest through Alipay directly, has been restricted. On the other hand, Alipay is not
safe enough, criminals could access to the users’ account by stealing the users’ private
information. In some cases, the uses can change the process of payment with passwords to the
payment without passwords, like DiDi, the other prevalent App in China. This kind of setting
and operation give the persons except the users themselves some chances to steal money from
your account. Lacking supervisor is another weakness of Alipay. At some points Alipay is like a
internet bank, but there is no third party supervising this internet bank like other commercial
