Proposed Marketing Strategy to Increase Brand Loyalty: Study Case of Lazada Indonesia

The Indonesian e-commerce market is poised for significant growth, with projections indicating an expansion from USD 52.93 billion in 2023 to USD 86.81 billion by 2028. This rapid growth is driven by increasing internet and smartphone penetration, coupled with a rising demand for online shopping. Lazada Indonesia, one of the major players in this market, faces intense competition from platforms like Tokopedia and Shopee. This study aims to explore the strategic positioning of Lazada Indonesia, focusing on brand loyalty and market share dynamics within the Indonesian e-commerce landscape.

Utilizing a mixed-method approach, the research integrates both qualitative and quantitative data to provide a comprehensive analysis. The study employs various strategic frameworks, including PESTLE, Porter’s Five Forces, VRIO, STP, and the 7Ps of marketing, to assess Lazada’s internal and external environments. Key findings indicate that Lazada’s strengths lie in its robust technological infrastructure, extensive product offerings, and strong brand recognition supported by Alibaba. However, the company faces significant challenges, including inconsistent user experiences, internal coordination issues, and the need for more localized marketing strategies to effectively engage with the diverse Indonesian market.

The research provides actionable insights and strategic recommendations for Lazada Indonesia to enhance its market positioning and increase brand loyalty. Strategies include improving customer service, leveraging big data for personalized marketing, and forming strategic partnerships to enhance logistical capabilities. By addressing these areas, Lazada can better meet customer needs, strengthen its competitive edge, and achieve sustainable growth in the rapidly evolving Indonesian e-commerce sector.