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Business & Marketing
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Finish 3 parts. Pinduoduo Marketing Strategy. Business & Marketing. (Essay Sample)


BPS Final Paper
Each team will submit via Canvas a 10-15 page company report (double-spaced, plus up to 3 pages of optional exhibits), which follows the guidelines of a written case analysis. You are encouraged to conduct as much original research as possible (for example, through personal interviews), in addition to using the Internet and our library. There are two sources of information that are not acceptable: Wikipedia and pre-written cases (such as those produced by HBS, Stanford and Darden). While you may analyze companies that you have discussed in other classes, you are expected to perform your own research.


Pinduoduo Marketing Strategy
Institutional Affiliation:
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).

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