Running head: VALUE PROPOSITION FOR SOUQ.

COM 1

Written Assignment Week 1

Value Proposition for Souq.com

BUS 5112 Marketing Management

Term 3, 2018-2019

University of the People

VALUE PROPOSITION FOR SOUQ.COM 2

Value Proposition for Souq.com

Marketing is an essential tool in businesses of any scale and it refers to the activities of a

company associated with buying and selling a product or service (Kenton, 2018). Simply put,

marketing determines the profitability and success of a business by providing the right product,

selling them at the right price, time, and place using the right strategies. This is known as the

marketing mix. The term “marketing mix” was coined by Neil Borden in the early 1950s (Juneja,

n.d.). Borden’s original marketing mix has 12 components (Borden, 1984) and in the late 1950s,

E. Jerome McCarthy condensed the list and introduced the 4Ps of marketing: Product, Price,

Place, and Promotion (Van Vliet, 2011).

4Ps of Marketing

The 4Ps of marketing which refers to Product, Price, Place, and Promotion, is just one of

the marketing mix models developed over the years, constrained by internal and external factors

in the overall business environment, they interact significantly with one another (Kenton, 2018).

 Product (or service). The first P refers to the product or service that the company offers

to meet the needs of its customers. Product dictates its price, the place where it should be

displayed, and how they are promoted.

 Price. The second P refers to the cost which the consumers need to pay to obtain the

product or service offered by the company. Several factors should be considered in

deciding the price of a product such as perceived value, supply cost, seasonal discounts,

and competitor’s price.

 Place. The third P defines where the products are displayed and sold, and how it is

delivered to the market. Place refers to a store, whether physical or virtual.

VALUE PROPOSITION FOR SOUQ.COM 3

 Promotion. The fourth P refers to the manner of introducing the products through

advertisement, public relations, and promotional strategies. Promotion is tied to the first

three as a promotion should show what products are sold, the price to pay, and the place

and manner of purchasing available.

Souq.com

Souq.com is an online marketplace based in United Arab Emirates. Thousands of

different products are sold through Souq.com by different suppliers, opening up opportunities to

many local and international companies to sell their products to the Middle East market.

Souq.com was acquired by Amazon in 2017, in a move to expand and serve the Middle East

region (Turner & Wang, 2017).

Souq.com provides its customers the ease and convenience of online shopping with free

delivery, free returns, and offers cash on delivery. These, combined with frequent deals and

discounts, Souq.com captured the trust and loyalty of its customers to become the biggest online

marketplace in the Middle East region.

The marketing campaigns of Souq.com is primarily through digital advertisements in

giant technology-based companies such as Google, Facebook, Instagram, and YouTube.

Commonly seen in their advertisements are the current deals and promotions, or products that are

offered with big discounts. To make the advertisements more appealing, a value proposition

could be created and added.

What is Value Proposition?

Value proposition refers to the business or marketing statement that is used to summarize

the reasons why customers should buy a product or use the company’s services (Kenton, 2018).
VALUE PROPOSITION FOR SOUQ.COM 4

A value proposition should communicate the primary reason why the product or service fits the

target market.

To create a value proposition for Souq.com, the five steps given in an article at

Mindtools.com (n.d.) will be used.

1. Know your customers – Middle East based customers who have access to the internet.

2. Know your product, service or idea –Electronics, grocery, fashion, baby clothing and

accessories, home and kitchen, beauty and wellness, sports, and home services.

3. Know your competitors – Noon.com, Desert Cart, Ubuy, and Awok

4. Distill customer-oriented proposition – Convenience, free delivery and returns, cash on

delivery, deals and discounts, more products and services, one-day delivery option, and

discounted shipping for Amazon orders.

5. Pull it all together – Based on the first four steps, the value proposition is created:
“We are the region’s most trusted online marketplace where convenience,

value for money, and excellent customer service is always a priority. Shop for

anything and get them delivered right at your door steps. And we accept cash

on delivery too. Souq.com, a one-stop shop for everyone right at your

fingertips”.

An effective marketing strategy is crucial for every business. By creating a well-defined

marketing strategy, a business can promote their products and services, focus on the target market,

and maximize profit.

VALUE PROPOSITION FOR SOUQ.COM 5

References

About Souq.com. Retrieved from https://uae.souq.com/ae-en/about-us/c/

Borden, N. (1984). The concept of marketing mix. Retrieved from

http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Borden-1984_The-

concept-of-marketing-mix.pdf

Juneja, P. (n.d.). Marketing mix - Meaning and its elements. Retrieved from

https://www.managementstudyguide.com/marketing-mix.htm

Kenton, W. (2018). Four Ps. Retrieved from https://www.investopedia.com/terms/f/four-ps.asp

Kenton, W. (2018). What is marketing. Retrieved from

https://www.investopedia.com/terms/m/marketing.asp

Kenton, W. (2018). Value proposition? Retrieved from

https://www.investopedia.com/terms/v/valueproposition.asp

Mindtools.com (n.d.). Creating a value proposition. Retrieved from

https://www.mindtools.com/CommSkll/ValueProposition.htm

Turner, G. & Wang, S. (2017). Amazon buys Aouq.com as middle East online market takes off.

Retrieved from https://www.bloomberg.com/news/articles/2017-03-28/amazon-wins-

battle-to-buy-middle-east-e-commerce-firm-souq-com

Van Vliet, V. (2011). Marketing mix, the 4P ‘s (McCarthy). Retrieved from ToolsHero:

https://www.toolshero.com//marketing/marketing-mix-4p-mccarthy/