Objective:
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To analyze Temu`s business strategy, online marketing tactics, and challenges.
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To evaluate the effectiveness of its approach and identify potential areas for improvement.
Instructions:
When answering:
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Provide clear, comprehensive, and well-organized responses to each question.
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Support your answers with relevant examples from the case study or external information/references, where applicable.
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Ensure each question is clearly numbered to correspond with the questions provided.Who knew that encouraging consumers to “spend like a billionaire” could work? But it’s a marketing strategy that seems to be working for the ecommerce platform Temu.
Described as “Amazon on steroids”, Temu is an online marketplace that offers heavily discounted consumer goods shipped to consumers directly from China.
The company has exploded onto the ecommerce scene to become a real rival to big players in the market by using algorithms and artificial intelligence (AI) to personalize the shopping experience.
While many young people are familiar with the brand due to its presence on social media networks, its use of other marketing channels (and some pricey Superbowl ads) has made its presence known to all age groups.
But it’s costing the company a lot of money to do so. Many experts believe that Temu is operating at a loss due to its low prices and enormous advertising budget.
There are also concerns over data privacy and forced labor as well as legal disputes with another retail giant, Shein and rumblings that the company could put other platforms like Etsy out of business as they struggle to compete. While Amazon plans to launch a discount section with direct shipping from China to compete with Temu.
So it’s not plain sailing for Temu. But where did the company come from and what digital marketing strategies is it using to make consumers flock to the site to part with their money?
