2

Home & Car

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SHARPING COMPETITIVE 2
EDGE IN A FIERCE MARKET
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Team Green
 Executive Summary
Home & Car

Objective Given the budget of VND 1B and 6 months to deploy, Zalo wants to grow its Home & Car listing from 100,000 to
200,0000

Crowded market with of strong and No clear value proposition provided

Low brand awareness both among
Complication high-tech players, no clear sights of
sellers and buyers to users
differentiation

To achieve its goal, Zalo Home & Car must address the chicken – egg problem: (1) Sellers are wooed to go to Zalo
Pillar of Success Home & Car when they see clear sights of successful transaction, (2) Buyers are wooed to go to Zalo Home & Car when
there are numerous of products for them to choose from

01 02 03
Partner with small or non-brand Reverse the buying journey: give Use a mix of marketing tactics,
real-estate agencies and car sellers opportunity to reach out to in-app rewarding events, and
Proposed Initiatives dealerships to grow number of prospective buyers instead of waiting flash sales events to attract buyers,
sellers and listings for buyers to find them keep them stay on site, and increase
the odd of making a purchase

Impact
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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Zalo’s ecosystem and technology capability give it the right to be ambitious in
the Home & Car classified market Home & Car

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
However, Zalo is competing in a fierce market with lots of strong, senior, high-
tech players, with no sights of distinguished value positioning Home & Car

Players

Main product

Monthly website traffic

Total number of listings

Unique in-app feature(s)

Value added for both sellers

& buyers

Marketing tactic(s)

xx

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
To achieve its goal, Zalo Home & Car is advised to focus on three pillars of
success Home & Car

Challenges Opportunity Windows Pillars of Success

01
Crowded market with of strong and high-tech High technology capability backed by both Grow the number of sellers in conjunction
players, no clear sights of differentiation Zalo & VNG with number of listings

02
Low brand awareness both among sellers and Strong existing synergies of Zalo: 80% of
buyers Vietnamese smartphone users install Zalo Leverage Zalo’s capability facilitate the
transaction process between buyers and
sellers, and eventually sharp a value
proposition and competitive edge for Zalo
Home & Car

Broad access to potential users, both from

No clear value proposition provided to users
Zalo’s and VNG’s ecosystems
03
Grow the number of buyers in conjunction
with access frequency and time on site

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Based on the Pillars of Success, three initiatives are advised accordingly for
Zalo Home & Car to achieve its goal Home & Car

Partner with small/ non-brand Reverse the buying journey: Use a mix of marketing tactics,
real-estate agencies and car give sellers opportunity to reach in-app rewarding events, and
dealerships to grow number of out to prospective buyers instead flash sales events to attract
sellers and listings of waiting for buyers to find them buyers, keep them stay on site,
and increase the odd of making a
purchase

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Divider Slide: Initiative 1
Home & Car

Partner with small/ non-brand Reverse the buying journey: Use a mix of marketing tactics,
real-estate agencies and car give sellers opportunity to reach in-app rewarding events, and
dealerships to grow number of out to prospective buyers instead flash sales events to attract
sellers and listings of waiting for buyers to find them buyers, keep them stay on site,
and increase the odd of making a
purchase

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Small/ non-brand agencies and dealerships are potential listing sources that
Zalo Home & Car can capitalize on Home & Car

Potential number of listings per Zalo Home & Car

Potential Sellers Population size Rationale
population priority to focus

• Low listings per population

• High Cost per Lead
• They are already targeted/
Individual sellers/ owners Large Small Medium/ Low focus
bombarded with lost of ads/
paid search of prominent
players

• Huge listing sources

• Most of them lack of technology
Small/ non-brand real-estate Medium Medium High focus and financial capability to
agencies and car dealerships compete with online classified
sites/ e-commerce sites

• With strong financial power in

place, they can build
Enterprise/ big/ branded real- technology capability on their
Small Large Low/ no focus
estate agencies and car dealerships own to compete with online
classified sites/ e-commerce
sites

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
By designing an attractive partnership scheme, Zalo can woo these potential
sellers to list their portfolios on Zalo Home & Car Home & Car

Partnership Benefit
Partners Home & Car

• Zalo Home & Car acts a technology • Partners must ensure the quality and
partner to “e-commercialized” legal aspect of their listing and any
partners' portfolio insurance/ security following, hence
• Partner’s listings are flagged as Zalo Zalo Home & Car can use this promote
Home & Car’s partners, and are to Buyers
pushed to the top of the listing page • Revenue stream from Cost per Listing
• Zalo Home & Car also supports • Revenue stream from a fixed value per
partners if any litigation between month agreed by partners and Zalo
partners and buyers takes place Home & Car

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Divider Slide: Initiative 2
Home & Car

Partner with small/ non-brand Reverse the buying journey: Use a mix of marketing tactics,
real-estate agencies and car give sellers opportunity to reach in-app rewarding events, and
dealerships to grow number of out to prospective buyers instead flash sales events to attract
sellers and listings of waiting for buyers to find them buyers, keep them stay on site,
and increase the odd of making a
purchase

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Traditional buying journey on classified or e-commerce sites is a big
impediment for both Buyers and Sellers Home & Car

Traditional Approach

01 02 03

Sellers post products they want to sell, Buyers access the site, and start After spending a huge amount of
with description about product’s specs looking for the product they want to buy time browsing, buyers successfully
(e.g. color, price range, car brand, # of by scrolling or filtering through lost of find the product they want to buy and
used years, location, etc.) products then they contact seller

1. In many cases, buyers still can’t

find their desired product after
spending a lot of time
2. Sellers are passive in these
cases, they don’t know who are
their prospective buyers so that they
can’t reach out/ engage/ negotiate
the best term

Traditional buying journey can hinder the odds of transaction between Buyers and Sellers, and eventually
damage the reputation and revenue stream of the classified or e-commerce sites
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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
By leveraging Zalo Messenger, Zalo Home & Car can streamline the buying
journey experience for both Buyers and Sellers Home & Car

Zalo Home & Car Approach

01 03a 03b
Sellers are suggested a list of prospective Buyers are notified via Zalo push
buyers with option to reach out via Zalo notification whenever a product with
Messenger (based on matching product matched specs is listed on Zalo Home &
Buyers set a filter for the product they
description and buyers’ filter) Car
want to buy (e.g. color, price range, car
brand, # of used years, location, etc.)
and save these information in their Zalo/
Zalo Home & Car profile
These people may be interested in
your listed product. Tap to message
them via Zalo Messenger!
There are 3 products you may be

Person A interested in. Tap to find out!

02
Person B

Person C

Sellers post products they want to sell,

with description about product’s specs
(e.g. color, price range, car brand, # of
used years, location, etc.)
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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
 This approach to buying journey can eventually sharp a unique value
proposition for Zalo Home & Car to compete with other players Home & Car

• I don’t know about Zalo • Zalo Home & Car helps me

Home & Car find desired product easily
• I usually spend a lot of time and quickly
on other sites to finally find • I will recommend Zalo
a car I want to buy Home & Car to my This approach to buying
acquaintances
journey is based on the
Buyer synergy between Zalo
Messenger and Zalo Home &
Car, and also based on the
popularity of Zalo
Messenger to provide Sellers

Home & Car the opportunity to personally

reach out Buyers, and also to
• I don’t know about Zalo
• Zalo Home & Car helps me notify Buyers of suitable
find prospective buyers
Home & Car
easily and quickly
products listed. For these
• After posting my product,
the only thing I can do is to
• I will recommend Zalo reasons, Zalo is fearless of
Home & Car to my
wait for buyers to contact
acquaintances
“copy cat” models

Seller
By deploying these first two initiatives, Zalo Home & Car is also open to new
revenue model and revenue stream Home & Car

Current After Deployment of Initiatives

Cost per Bump Cost per Bump Partnership premium

Cost per Listing (likely in the Cost per Listing (likely in the Cost per People Reach (cost per
future) future) notified buyers of the product seller
list on site)

Advertising fees (likely in the Advertising fees (likely in the

future) future)
Cost per Suggested Prospective
Buyers (cost per prospective buyers
suggested to seller)

Notification subscription cost

(buyers must pay a monthly fee to
be notified of matched products)

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Divider Slide: Initiative 3
Home & Car

Partner with small/ non-brand Reverse the buying journey: Use a mix of marketing tactics,
real-estate agencies and car give sellers opportunity to reach in-app rewarding events, and
dealerships to grow number of out to prospective buyers instead flash sales events to attract
sellers and listings of waiting for buyers to find them buyers, keep them stay on site,
and increase the odd of making a
purchase

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Initiative 3 description/ impact
Home & Car

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Implementation Plan
Home & Car

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis
Risk Analysis and Mitigating Strategies
Home & Car

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Executive Summary Situation Pillars of Success Initiatives Implementation plan Risk analysis