Finish 3 parts. Pinduoduo Marketing Strategy. Business & Marketing.

Pinduoduo Marketing Strategy
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Pinduoduo Marketing Strategy
Pinduoduo (PDD) Strategy
Although the company deals with all types of goods, its Customer to manufacture (C2B) model has positioned it as a leader in agricultural products. In 2019, the company doubled its agricultural sales registering orders of more than 136 billion Yuan (Pinduoduo Content Team, 2020). This surge in online shopping for agricultural products has been contributed by the pandemic, and the connection of consumers to farmers ensures the freshness of the goods. In the first quarter of this year, the company connected close to 13 million rural farmers to customers during the pandemic indicating the company's reliance on agriculture as one of its main products (Shen, 2019). The company deals in all products, including electronics, cars, appliances, and daily necessities like tissue papers and meat. The product diversification is facilitated by the customer to manufacture model linking consumers and manufacturers, which helps streamline its supplies according to the consumer needs.
PDD uses a discounting model of pricing, which is realized through group buying. Although the model is a great contributor to the company's continued losses, it is also attributed to its growth, surpassing JD to register 483 million users in the second quarter of 2019 (Zhang, 2019). The company has even partners with producers to ensure that the discounts offered on the platform due to group buying are feasible and suitable for the customers. PDD bought into Gome-an appliances company at the beginning of this year to allow for the discounted prices when using the platform (Yi, 2020). The company relies on cash and consumption subsidies to relate to low-income earners in rural China. It also incorporates lotteries and the use of flash coupons to incentivize regular purchases and build loyalty (Xiao, 2019).
The company's main target includes third and lower-tier cities that have not been tapped into by its main competitors like Alibaba and JD, whose main concentration is first and second-tier cities (Lee, 2018). It also targets women and senior citizens who are more price-sensitive and likely to buy in bulk. This targeting helps the company to not only rise above its competition but also to support its group-shopping philosophy. It has decided to venture into the rural and small cities which are underserved by the existent e-commerce companies (Zhong, 2018). The ability to use the app and pay for the products within WeChat makes it easier for the elderly and rural users making it easier to access the underserved market due to technology development (Boyd, 2020). The discount links sent via WeChat make it easier to use the platform, especially in the undeveloped areas with a minimal internet connection making it easier to shop for the elderly (Zhang, 2019). The ease of paying and browsing makes it a preference for the population that has minimal contact with technology as it allows direct payment, unlike the Alipay prompt when shopping on Alibaba (Zhang, 2019).
Advantages of Pinduoduo
The company's social marketing strategy used in PDD is one of the key competencies of the company, which creates consumer networks, thus expandi...