I

TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM

TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG
KHOA QUẢN TRỊ KINH DOANH

BAEMIN MARKETING STRATEGY

Subject: Marketing Strategy

Intructor: Mr. NGUYỄN HẢI MINH
Major: Marketing Management
Members:
TRẦN BẢO UYÊN 71600148
BÀNH KHẢ TÚ 71600137
VÕ THỊ ÁNH DƯƠNG 71600020
NGUYỄN HOÀNG BẢO TRÂN 71604332
NGUYỄN VIỆT THẮNG 71600133

HCMC, September 20th 2019

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HCMC, September 20th 2019

I. OVERVIEW ABOUT BAEMIN:
1. Introduction:
As in Viet Nam market and with the thriving of digital and technology nowadays, food
delivery on app is not a strange things. It’s become a behavior as known as all food is
fast food in the smartphone era especially for the Gen Y and Gen Z in Viet Nam. See
Vietnam as a potential market to access into, South Korea’s leading food delivery app
operator Woowa Brothers first launched in Vietnam on June 10 with the Vietnamese
version called Baemin (named after Woowa’s own food delivery platform, Baedal
Minjok, a leader in the sector in South Korea) in Ho Chi Minh City.

Woowa Brothers claims to have ten million monthly active users in its home country and
handles approximately one million orders a day. Woowa Brothers raised USD 320 million
in 2018 for foreign expansions, with Vietnam as its first overseas market. With the
launch in the Southeast Asian nation, they aims to bring “Korean culture, flavor and
know-how” to Vietnam. According to its mission, Baemin comes to Vietnam “Helping
people to eat well anytime and anywhere” with just a few simple steps performed on
the Baemin app: Choose the food, choose the nearest store and order. Favourite dishes
will be delivery quickly with an extremely reasonable price

Woowa Brothers’ nine years of experience in South Korea will allow the Vietnamese unit
to process a massive volume of orders simultaneously and connect users, restaurants
and riders.

Woowa Brothers had reportedly acquired and take over local food delivery firm
Vietnammm in February 2019, Vietnammm is one of the first pioneers in the Vietnam
country’s food delivery business that founded in 2011. It’s a good start for Baemin to
access in Vietnam food delivery market. The startup unicorn seeks to gradually expand
from Ho Chi Minh City to other Southeast Asian cities including Hanoi, though details
have yet will be revealed in the future.

Baemin’s product and services:

Baemin’s main service is order food online on mobile app, Baemin offers ordinary meals
from mom-and-pop kitchens, international cuisine from foreign restaurants -- Western,
Asian and more -- as well as premium brand coffee, tea and desserts from franchise
brands, such as Phuc Long, Gong Cha and Koi.
Baemin have their own shipper to delivery the food and say no to the third place
company to delivery.

Payment menthod:
Cash: customers pay when they receive their order/ ATM Card/ Credit Card.
Customer’s benefit:
Baemin put fast and convenience, quality on the top priority their the customers, they
aslo pay attention in pushing a lot of promotion, discount on the app in difference time,
location. Beside, customer will have more benefit with group order.

Delivery fee:
Currently, the delivery fee of Baemin base on the distance is:
From 3 km: 15.00 dong
From more than 3km: 15.000 dong and 5.000 dong extra per km

The driver’s policy:

Baemin offer that they will earn 10% of delivery fee of the driver per order, same as Now
app. However, Baemin is running free policy for driver so that the driver will earn 100%
of the shipping fee.

2. Analyze competition factor:

a. Competitors
Despite being a newcomer in this competitive and booming market, Baemin is ambitious
to rise to the top of the market with a distinctive approach in its journey to bring
authentic experience for customer.

The presence of Baemin Vietnam further make the competition more crowded and intes
in Vietnam’s food delivery industry. According to a survey by market research firm
GComm, GrabFood is the fastest growing food delivery operator in the country and the
‘’giant’’ in the food delivery market. Besides GrabFood, Baemin Vietnam will have to
compete with other players, like Now by Foodie and Go-Food by Go-Viet, which
is expanding its service in Hanoi after entered the Vietnamese market in September
2018. Go-Food was first launched in Ho Chi Minh City and has recorded about six million
orders.

Grab Food stand in the first place in food delivery market, with the revenue of $96
million USD (65% market share) in 2018 with the average growth 197%/year in 2016
-2018. According to Kantar TNS, Grab Food is the most popular delivery app in 2 big
cities Ha Noi and Ho Chi Minh City. On the second place there is Now with the revenue
$11 million USD (7% market share) in 2018 with the average growth 182%/year in 2016
-2018.
With the growth and competitive of the food delivery market, Baemin will have to try
hard to compete with those 3 big “giants” that have the big market share in the section.
b. Positioning:
As analyzed from the competitors above, we can see that Baemin is being positioned to
be Low price and Slow delivery.

Below is a table comparing service prices of Grabfood, Now and Baemin:

We can see that Go-Viet's Go-Food is the lowest-priced food delivery service at the
present time, the next one is Baemin, and the last are GrabFood and Now, but Now's
charges fluctuate unusually depending on the region and the time so it is difficult to
compare with others.

For Baemin, it has been debuted less than 2 months, so the number of restaurants
which is called “partners” is less than of 3 rivals and the company has limited delivery
staff. Moreover, in terms of the ordering process, it is still quite slow in order processing
because Baemin still does’nt have software or applications for partners such as
GrabFood has the “GrabFood Merchart” software or Now has the “NowPos” software
too. Therefore, the order taking process from restaurant is quite passive what will lead
to the delivery of food to customers is time consuming. As a result, Grab is leading in
speed about delivery food and Baemin is ranked the last brand with the slowest delivery
speed.

II. Opportunity market:

A decade or two ago, food delivery was thought of as ordering meal takeout from a local
restaurant where orders were taken over the phone by speaking with an employee.
Delivery charges were costly, food selection was limited and you were left with no
information of the status of your order and delivery. These circumstances made food
delivery an infrequent non-cost effective experience.

As time and technology has evolved, so has the way we order food to be delivered to
our home or office. According to Fortune, 6.6% of all restaurant orders are made on an
app. In comparison, restaurant orders made on the phone occupied less of the
restaurant business at 5%. According to McKinsey and Company, food delivery is a $102
billion worldwide industry and occupies 1% of the global food market and 4% of the
food sold worldwide.
Consumers now enjoy the benefits of this new form of restaurant delivery, such as
having the ability to compare prices, delivery times, menus, and reviews from other
customers in popular food delivery apps. In the last decade, the food delivery business
has expanded with the monumental success of companies like Grab, Foody/Now,
GoViet, etc. In the past five years, this overall interest in food delivery has consistently
accompanied the emergence of these helpful food delivery apps.

These companies thrive in today’s fast paced cities of highly engaged career
professionals on the go who don’t have the time for grocery shopping, preparing meals
or eating at a restaurant. Having hundreds of food and cuisine options available to be
delivered to your home, office or any location you chose in as little as 30 minutes while
being able to order swiftly and efficiently from your smartphone strongly appeals to
busy people nationwide, especially millennials.

There are also many lifestyle factors that have contributed to change in the space of
food delivery. Young professionals today live fast paced, work centered lives that require
constant focus and presence leaving smaller life decisions such as food with minimal
focus and time expense. Ho Chi Minh City suffers from overpopulation and its citizens
who are being students and officers with limited cooking or dining time and space.

As food delivery becomes a more proficient and individualized, consumers will be

increasingly utilizing these apps and services. Food delivery is expected to experience
massive growth in coming years. With the sizable expansion of this industry it is
becoming increasingly important to evaluate its environmental effects and green efforts.
Making sure cutlery and serving ware are eco-conscious, not requiring new materials to
be harvested or fossil fuel to be expended is crucial from a sustainability perspective.

III. Baemin’s Marketing mix 4P Strategy

a. Product

Baemin is on track to develop its products in parallel with the needs of its customers,
thereby adapting and changing in a more positive way. Baemin's products and services
are still quite limited and are improving over time. Baemin's advantages can be
mentioned as easy to install, simple, fast application, promotion forms or welcome new
customers are always focused.

b. Price

Baemin has had many discount strategies for customers with a lot of different discount
codes. It can be said that the price strategy based on customer psychology is a right
strategy that makes Baemin more and more attention in the Vietnamese market. After
going into the actual survey, Baemin showed that people are only interested in how to
move quickly, efficiently and especially at affordable prices. Therefore, Baemin's pricing
strategy is a "good weapon" that promotes the brand to be more accessible and closer
to customers.

c. Place

Distribution channel is an important factor that bringing the products to customers.

Baemin system has a form of distribution including both direct and indirect. Customers
can find Baemin's products / services through downloading applications on the App
store or Google play easily. With the continuous development of digital technology and
mobile devices, where in the modern world no one can lack a smartphone, the
distribution of products via mobile applications is an option extremely right.

d. Promotion

Baemin is trying to be active on social networks like Facebook, Youtube, Instagram ...
where they can reach the target customers quickly and effectively. Now, Baemin is still in
the optimal stage of brand recognition with customers. This technique has been used by
their opponents - "Grab", which is Visual Marketing. Applying the role of visual
marketing helps brands improve brand identities, remember images and messages in the
minds of customers. Especially the newly emerging brands are aiming to be like Baemin,
the color of blue mint brings a new, youthful style to attract young people today.
Although not able to compete with other competitors, Baemin's coverage is not inferior
to anyone.
2. SWOT analysis model
a. Strength

- There are many attractive promotions and codes

- 70% discount for first time service users

- V Heartbeat tickets

- Messages and media images are highly invested

- 9 years of experience in Korea

b. Weakness

- Driver restriction
- Need to expand the delivery area
- App still has many bugs
- Service is slow and not good
- Few stores, limiting the choices
- Delivery is still low

c. Threat
- Strong competitors, with great financial potential
- Customers prefer familiar brands
- Customers like to use the food at the restaurant to ensure the quality of the dish
d. Opportunity
- Customers have diversified many choices
- Market demand is getting bigger and bigger
- Large population, a thriving economic sector and extremely potential market
- Demand for utility services increased
III. Target market:

Primary Target Secondary Target

market market
Age 25 -34 years old 18 -24 years old

Gender Male and Female Male and Female

Income Middle – Moderately Low – Middle Income
High income
Occupation Officers, working Students, working
adults adults
Geographic All areas of HCM city All areas of HCM city

Demographic

From the time of debut to the present time, the age group from 25-34 (adult group or
office workers) accounts for the majority with 57.5% of people interested in Baemin,
second is the young age from 18- 24 with 38.1%. The female customer group is still the
majority with 67.8%, completely different from the male customer group accounting for
only 24%.

V. OUR MARKETING STRATEGY:

Customers’ behavior:

According to a research, Gen Z (1995 – 2000) has become trendsetters in everything

from entertainment, fashion, food and drink to FMCG, even has been influencing
Millennial (1980-1995). Along with the big idea “Gen Z – set the trend”, we will make a
plan to make our marketing strategy as well as reach out to young consumers as much as
possible.

Young customers, in general, have these characteristics:

- 6 hours and 53 minutes to browse the Web using PC and Tablet; 2 hours 33
minutes if using a mobile phone

- 2 hours 39 minutes for social network

- Check email, visit social networks, use search engines (Google, Coccoc,…), find
product information and listen to music, video.
- Use social networks like Facebook, Youtube, FB Messenger, Google+, Zalo,
Instagram, Twitter, Viber, Kakao, etc.

- Tend to follow the crowd and want to express themselves, share their daily life.

So that our marketing strategy focus on secondary target market of Baemin (18-24 years
old) to educate this segmentation having brand awareness and becoming loyal
customers.

Insight: “I like to be part of a positive movement, even in every purchase”

Campaign objective: Firstly, build interest of target audience to order food on Baemin
whenever they’re hungry/thirsty pop-up in their minds, then attract more young people
and prospects with our eco-friendly strategy, last but not least, brand lover for Baemin.

Campaign message:
“Baemin go mint, turn into green ”

Phase Trigger Engage Amplify

Do action with
Increase the level of
Mint go green HCM Baemin and spread
Objectives awareness of “eco-
City positive messages to
conscious Baemin”
the people around.

Viral Clip, Magazines, Offline event, Mobile

Highlight key OOH
Microsite Website App, KOLs

Social network, E-
Social network Billboard, Online com site, Mobile
Channels ( Facebook, Youtube), banner, Print Ads, app, WOM, POS,
KOLs, Viral Clip Social network Banner, Offline
event, KOLs
Duration 4 weeks 3 weeks 2 months 2 weeks

Step 1: Let young curious about the campaign in order to share the viral clip ( Tran
Quang Dai, Tang Thanh Ha, Helly Tong, Giang Oi, Co Em Trendy, etc ) on social
network.

- Cooperate with Zing.vn ( according to the ComScore's e-newspaper and website

statistics, Zing.vn has become the largest e-newspaper in Vietnam with 14.632
million visitors, accounting for 33% of the total number of regular e-readers.) to
 make a platform aka microsite website for customers in order to spread the key
message.

- Trend of accessing to information: online channel (social media), traditional

channel (lifestyle and beauty magazine)

Step 2:

- Many drivers and moscots of Baemin are on the way througout the HCM city with
environmental message on the back of transportation such as: “make every day
earth day”, “with Baemin, join the green mint revolution”

Step 3:

- Actively embody the idea of eco-friendly strategy, through driver’s asking

customer whether to pick paper straws, plastic bags or not.

- Volunteer day, challenge to wipe up the “ugly” plastic things.

- Book online and paper magazine such as Kenh14.vn, SAOstar, Thanhnien,

VNexpress… to write articles about this action (key words/angles: eco-friendly,go
green, blue mint,…).

1. App overlook:

a. UX/UI design

On overall, app Baemin have a signature color blue mint, beautiful, smart, bright display,
clean and clear seperate part for every section like promotion, order filter,
recommendation,.. It display with cute, friendly visual and eye catching, big and pop up,
quality content. Beside that Baemin’s icons just as the visual are more preferable the
cartoon. Baemin’s app is very easy to use, simple, with just some step and won’t take
much time to log in and sign in for the infomation you can quickly place an order on app.
As we have always said, Baemin bring a new wind from South Korea to Vietnam.

The good plus that Baemin always update on their app with a lot of suppliers and
partners in each location. Baemin just have lately update a new payment term on their
app with 3 ways: Cash, Credit Card and ATM Card which is a good way for customer to
have more choices for the payment.
b. App development strategy

Baemin is a new comer in the Vietnam market so that it will have some point that need
to improve and develop against the leader in the section such as Grab, Now, Go Viet. As
Baemin’s app still have not yet pay focus on the filter on the app, such as they can filter
which place is nearest to you, top order, discount,... so we want to develop more in
collect the data and arrange its on category and put it on filter bar, so that the customers
will be more convenience to find what they like.

App Baemin have beautiful picture of the supplier but have not yet have detail picture of
each product so that the customers may find hard to imagine what will the food look
like, we suggest that Baemin should also update more desmontrate pictures through
partners provide and through a data collect market team.
Beside we want to develop a community network on app, with the reviews (with or
without pictures), rating and rewards for customer. All the reward will count as BMCoin
it can base on the amount money of order (each 10.000VND will count as 1 BMCoin), 1
reviews with picture will be 3 BMCoin, no picture will be 1 BMCoin, per rating will be 1
BMCoin. The reward BMCoin as the monetary unit of Baemin, it will use to change into a
promotion discount, payment term, ... Using rating and reviews help we create a big
data by the customers provide, we can know their experience, feedback and its a place
for others to find more information before they place their oder. Rewards app is a trend
in building app lately, its also help Baemin to maintain and keep the loyalty customer.

So far we want to develop for Baemin on website too, because the segmentation of
office employees that also a lot and they always use their computer or laptop, so
develop a website is more convenience for the customers to place their order.

2. Eco-friendly strategy:

a. Market overview:

With the thriving of the food delivery market nowadays, beside finding a way to growth
and attack the giant that have big market share. Baemin have to take advantage to
attack into the segment that others have not yet reach it, especially the environment
protection is getting hotter in the race in the world. A lot of company, brand chain in the
global and also local that put the eco-friendly, less waste and safe the environment first
on the top of their product and service process such as package, no plastic waste, reuse
product,…

The environment protection that brand follow can achieve a lot of customers that care
about this issue, so that it’s a potential strategy that Baemin can take advantage of, to
gain more customers among those leader in the section that haven’t focus on it yet,
especially that delivery food can waste so much plastic bag, plastic box, plastic cup,
plastic straws,… to contain the food that just use once at a time. Understand this
situation, we create a Eco-friendly strategy for Baemin.

b. Problem:

The big problem of the eco- friendly strategy is that brand have to change, re-produce
their product into a friendly environment product, such as inox/bamboo straws, paper
cup, paper bag,.. which can easily to recycle and do harm to the environment. Hence,
the cost for eco-friendly product changing is high, take time to implement, massive
change, take time and cost to training their employees, especially for the brand chain
and the brand that has a large working area. Most of brands can recognize the issue but
hardly can change themselves because of those problem.

The problem for the food delivery also challenges a big math question to solve , because
the drivers are a lot, hard to manage, they work as a delivery parties, not the supplier,
not the customer, so to training and manage them to do it was a first problem, the
second is all the supplier use their own packaging, Baemin can’t supply enough eco-
friendy product for each different brand, different package. So to answer this question,
we have to answer how to change into eco-friendly but also reduce cost for the
company.

c. Solution:

Our group have create strategy for Baemin to answer for this eco-friendly question. For
the customer when they order food or drink on Baemin app, after finish all choosing
stage and the final payment stage we will give the customer 2 payment price option:

+ Basis price: The customer will pay exactly the price that they have ordered, plus the
delivery fee (with or without discount, promotion)
+ Eco-friendly price: In this eco-friendly price, beside the basis price, customer can
choose to pay only extra 2.000 VND* per 100.000 VND of the order to change into eco-
friendly package.

*This price just include Baemin’s paper bag rather than using the supplier’s plastic bag.
Its mean that we just cut down the plastic waste in this step.

The bag will be given to the driver and keep in the food delivery holder bag. When the
driver receive the order they will come and give the package for the supplier. With every
order that use the eco-friendly price, the driver can get 1.000 dong from each extra eco-
friendly price 2.000 dong.

Short term strategy:

In short term when Baemin first launch this campaign, we will only use Baemin signature
color paper bag, un-brand, which is no logo, no brand name, because we know that if we
use Baemin’s logo on the bag, the supplier won’t agree or feel happy without seeing
their brand name on it. With the large amount of supplier, we can’t customize the bag
for each different brand name, so choosing the un-brand package is the best solution
that win-win for both parties.

Baemin’s package design:

Long term strategy:

When we eventually educate and create the behavior for the customer to use the eco-
friendly package, we will also educate our suppliers, partners to use their own logo
stamp, logo brand sticker on Baemin’s paper bag, Baemin will slowly sneak their logo on
the package, too. So that the package will include both brand names on it still win – win
for both.

At the same time of the first launching, we will educate brands to adapt the change into
no-plastic waste package by the promotion boost, ‘phủ xanh mint” campaign on
app/social media for the brand that use eco-friendly products, packages. From that we
can transform from the beginning with the meaning of cutting down the plastic waste
into the no plastic waste, totally eco-friendly package.

Baemin’s package design: