JD.com Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: December 24, 2017

Marketing Strategy of JD.com analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on JD.com marketing mix, help the brand succeed.

JD.com marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the JD.com Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

JD.com Product Strategy:

The product strategy and mix in JD.com marketing strategy can be explained as follows:

JD.com is one of the leading ecommerce platforms based out of China. The E-commerce platform provides different products and their delivery. From mobile phones to music players, from toys to home appliances, for apparels to daily requirements are provided by JD.COM. The company has focused on its new product introduction as a part of its marketing mix and increasing no of customers. The JD.COM has the extensive network of retailers and suppliers for different products. The warehouse management and automation are among main areas of working of JD.COM for its new growing market of China. The vast network of suppliers and distributors made JD.COM's reach to the more geographic area. The company has increased its product variety and focused on its new product launches. The products return and fast delivery reliability is more reliable with JD.COM for customers which made JD.COM favourite e-commerce site for shopping across China. Better quality products with feasible payment options made JD.COM tough competitor of Alibaba.


Image: company website


JD.com Price/Pricing Strategy:

Below is the pricing strategy in JD.com marketing strategy:

Chinese are very sensitive towards the quality and price of the product.

Considering the rival Alibaba in the market, JD.COM has focused on low prices compared to the Alibaba to grab new customers and retain new customers. The commission from suppliers and retailers plays the major role in minimizing the cost. The warehouses are maintained by cross docking method to minimize the inventory cost. Orders are delivered to fulfilment centres only after order confirmation which reduces expenses of transport and handling costs. The operation of JD.COM has also been managed to minimize the time of operation with minimum cost using the existing resources more productively. In the current scenario, ALIBABA is a market leader and JD.COM stands second is the form of revenue and market share. Hence, it’s important for JD.COM In-corporation to maintain its product prices to remain in competition with rivals


JD.com Place & Distribution Strategy:

Following is the distribution strategy in the JD.com marketing mix:

JD.COM presence is online market commonly known as E-commerce as the name suggest. The company work over Business to customer model where company plays the role of broker. JD.COM has made a platform available for many distributer and suppliers and retailers to find new customers online is reasonable commission to be paid to the JD.COM. The target segment of JD group is online users henceforth JD.COM has developed technology to target all platforms.

Application-based shopping, website shopping is made convenient so that all customers can shop their products at their convenience.


JD.com Promotion & Advertising Strategy:

The promotional and advertising strategy in the JD.com marketing strategy is as follows:

THE JD.COM has different marketing strategies for a different target group. Having tough competition in the Chinese market since the revival called Alibaba, JD.COM has a heavy budget for promotional activities. Print media like the newspaper, magazines are used for publishing the latest sales going on the website. Especially during a festival session, JD.com put extensive advertisements on television mentioning heavy discounts. Emotional advertising and branding are latest trends followed by JD.COM. Search engine optimization and SME are latest features of digital marketing to reach the target audience. Sponsoring events is another part of a promotional activity. Corporate tie-ups are also among important part of promotional strategies for JD.Com by giving special discounts to the corporate employee resulting in more customer reach.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of JD.com


People:

Digital platform and customer relationship are main focus area of the JD.com group. The group has catered to all types of the segments and customers for its different products. E-commerce space is highly customer centric henceforth it is necessary to understand the customers and employee who serves their customer both are equally important. The employees have made this organization more valuable by delivering best values to the customers. The company works with retailers and suppliers to fast customer services. Customer reach is high with high satisfaction rate over other competitors hence customer services is very important.


Physical Evidence:

The JD.COM E-commerce sites where all transaction from placing orders to payments all are done digitally. Hence the physical presence of the JD.com is only limited to some extent. Ground staff manages the Digital platform. The real physical presence of then JD.com is its warehouses. The company owned, rented, partnership warehouses are some presence properties of JD.com. The company forwards the orders to the retailers resulting in delivery of good by retailers to the fulfillment centers of JD.com from where real shipment of goods starts. The JD.com is responsible of delivery of all the good to the end customers.


Process:

Being E-commerce industry, the JD.com has specific processes top flow. The online transaction, inventory management, IT support, logistics, supply chain management and customer support are all the integral part of Processes. The process makes the business to work smoothly. This smoothness is maintained or supervised by digitally. The IT solutions make these processes more reliable and trackable. The JD.com has made process on global scale to handle deliveries in best possible manner. The process flow is maintained to understand the economics of the process and analyse every time to improve the efficiency of the process. This completes the marketing mix of JD.com.


About JD.COM:

JD.COM is a Chinese e-commerce company which was previously famous as 360buy. Liu Qiangdong founded JD.COM corporation. JD.COM is tough competitor of Alibaba.com in China with the customer base of more than 260 million. The JD.COM is famous for its fast services and customers services. With tough competition from national players like Alibaba and Amazon, JD.COM has successfully introduced high tech and AI operations.

Delivery via drones, robotics warehouse operation with high tech warehouse infrastructure and capability in the world are some features of JD.COM corporation. With more than 340 billion US dollars revenue JD.COM incorporation stands one of top E-commerce platforms in China.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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