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Place Strategy

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Place Strategy

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Product: Pastel de Nata

Context: A small shop selling Pastel de Nata has a branch located in District 3, Ho
Chi Minh City, selling 200-300 cakes per day. It operates both in-store sales and
online sales (through online shopping apps such as Shopee Food, Grab Food, and
Be). The shop is small, with an on-site kitchen and a front counter for the cakes,
primarily catering to takeaway customers, with limited seating space available.
—--------------------------------------------------------------------------------------------------------

Place Strategy Specialist


Define and justify distribution channels.
Explore AI-driven e-commerce or logistics solutions.
Draft the "Place" section of the report.

4. Place Strategy
4.1. Define and justify distribution channels

A. Primary Channels:
1. In-Store Sales
○ Definition: Direct marketing channel where customers visit the physical store
to purchase.
○ Justification: The store's location in District 3 captures local residents, office
workers, and casual walk-ins. The shop's setup is ideal for takeaway
customers, catering to those seeking fresh and convenient options.
2. Online Delivery Platforms
○ Definition: Indirect marketing channel through Shoppee Food, Grab Food,
and Be.
○ Justification: These platforms expand the shop’s reach to convenience-
seeking customers and areas beyond District 3. They address demand during
peak hours and for customers unable to visit the store physically.
B. Secondary Channels:
3. Pre-Order Systems (Social Media)
○ Definition: Customers order via Tiktok, Facebook, Instagram, or Zalo for
pick-up.
○ Justification: This channel targets tech-savvy customers and minimizes
reliance on third-party delivery services, reducing commission fees.
4. Collaborative Distribution Points
○ Definition: Partnerships with local coffee shops or co-working spaces to
stock products.
○ Justification: Extends distribution to areas with high traffic, increasing brand
exposure and sales opportunities.

4.2. Explore AI-driven e-commerce or logistics solutions


A. AI in E-Commerce:
1. Demand Prediction Models
○ Use machine learning algorithms to forecast peak demand times based on
historical sales, weather, and local events.
○ Benefit: Prevents stockouts and overproduction, reducing waste and
maximizing efficiency.
2. Customer Segmentation Tools
○ AI-driven segmentation identifies customer clusters (e.g., frequent buyers,
online-only customers).
○ Benefit: Tailors promotions and product offerings to each segment, boosting
customer satisfaction.
3. Dynamic Pricing Systems
○ AI can adjust prices in real-time based on demand, competitor pricing, and
time of day.
○ Benefit: Optimizes revenue without alienating price-sensitive customers.
B. AI in E-Commerce:
1. Route Optimization
○ AI-powered tools like Locus or Routific help plan efficient delivery routes,
reducing delays and fuel costs.
○ Benefit: Enhances delivery speed, improving customer satisfaction.
2. Inventory Management Systems
○ AI tracks stock levels, predicts replenishment needs, and prevents
overstocking.
○ Benefit: Minimizes waste and aligns inventory with customer demand.
3. AI Chatbots
○ Automates customer service for pre-orders and FAQs on social media
platforms.
○ Benefit: Improves responsiveness and engagement while reducing manual
workload.

4.3. Draft the "Place" section of the report

● In-Store Sales:

The physical store serves as the primary distribution channel, leveraging its central
location in District 3 to attract foot traffic. The setup prioritizes takeaway service to
accommodate limited seating space while maintaining high product freshness and
quality.

● Online Delivery Platforms:

Third-party platforms such as Shoppee Food, Grab Food, and Be are integral to
reaching customers beyond the immediate vicinity. By optimizing listings with
professional visuals and accurate descriptions, the shop ensures an engaging and
reliable online presence. AI-driven logistics solutions further enhance delivery
efficiency, reducing delays and operational costs.

● Social Media Pre-Orders:

Direct orders via Tiktok, Facebook, Instagram, and Zalo provide an additional
channel for customers who prefer personalized interactions. This strategy minimizes
dependency on third-party platforms and builds a direct rapport with loyal customers.

● Collaborative Partnerships:

Collaborations with local coffee shops, co-working spaces, or events extend the
shop’s reach and attract new audiences. These partnerships are supported by
exclusive product deals, ensuring mutual benefits.

● AI Integration:
AI-powered tools optimize demand forecasting, inventory management, and route
planning. These solutions not only enhance operational efficiency but also create a
data-driven approach to understanding customer preferences and behavior.

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