Analysis of Pinduoduo’s Successful Market Positioning and Marketing Strategy

Abstract

The essay analyzes several strategies of Pinduoduo which is a popular shopping platform in China. Initially, the background information is illustrated with data, involving the changing of the market share, and the cost in advertisement, and its annual revenue in the past three years. Second, a STP analysis introduced the type of consumers and suppliers that Pinduoduo targets and focuses on. In the next part, three aspects of the market strategies are explained. As one of the main features of its strategy, Pinduoduo has a deep understanding of the psychology of consumers, leading to the high royalty from its buyers. Then, the result of huge spending in the advertisement significantly influenced the choices from consumers, leaving them with deep memories. Moreover, the price setting was also important in impressing the consumers, not only the low price, but also the way of Pinduoduo to present the prices. However, as the development of Pinduoduo, two problems for consumers were explored and two suggestions that related to the shortage of the product number and product reviews came up.