final report of services marketing marketing mix 7ps strategyof baemin services

This is the number 1 food delivery app in Korea and was introduced toVietnam in June 2019 after buying food ordering app Vietnammm.com.BAEMIN Vietnam has inherited the strengths of disco

Ho Chi Minh City – 2022

THE FINANCIAL

UNIVERSITY OF FINANCE - MARKETING

- -Faculity: MARKETINGSpecialized: MARKETING MANAGERCourse: MARKETING SERVICESCourse code: 2121702052703 FINAL REPORT OF SERVICES MARKETINGMARKETING MIX7P’S STRATEGYOF BAEMIN SERVICESLecturer: Ninh Đức Cúc NhậtTeam membersĐặng Thị Yến Như 2021001613

Nguyễn Vũ Vân Giang 2021006471

Lê Thị Quế Trân 2021001621

Phạm Huỳnh Quỳnh Giang 2021000116

Đỗ Trần Anh Thư 2021001496

LIST OF FIGUR

Figure 1 1 BAEMIN connects merchants, riders, customers 1

Figure 1 2 Timeline about BAEMIN 2YFigure 2 1: Popularity of food delivery brands in VietnamFigure 3 1: BAEMIN's positioning spider web chart 16

Figure 3 2: BAEMIN’S position map1Figure 4 1: BAEMIN’S service flower 18

Figure 4 2: BAEMIN’S billboards 24

Figure 4 3: BAEMIN’s collaboration with famous celebrities 25

Figure 4 4: Pictures of the campaign “Góp bữa no cho sài gòn đỡ lo” 26

Figure 4 5: BAEMIN Blueprint 28

Figure 4 6: BAEMIN Blueprint 29

Figure 4 7 : BAEMIN Blueprint 31

Figure 4 8: Standard order fulfillment process BAEMIN 34

Figure 4 9: BAEMIN’s logo 36

Figure 4 10: BAEMIN shipping bag 37

Figure 4 11: BAEMIN’s uniform 38

LIST OF TABLES

Table 2 1: Comparison of BAEMIN's direct competitors 6

Table 2 2: SWOT analysis of BAEMIN

Table 3 1: Behavioral breakdown of BAEMIN 12

Y

CHAPTER 3: TARGET CUSTOMERS ANALYSIS & POSITIONING STRATEGY 12

3.1 Target Customer analysis 12

4.1 SERVICES PRODUCT STRATEGY 18

4.1.1 Service Concept 18

4.1.2 Branding 21

4.2 PRICING STRATEGY 21

4.2.1 Delivery Service Fee 21

4.2.2 Additional Service Fee 21

4.5 SERVICE PROCESSES MANAGEMENT 27

4.5.1 Ordering Process (Act 1: “Place Order”) 31

4.5.2 Order Processing Process (Act 2: “Order processing”) 32

4.5.3 Delivery Process (Act 3: “Feedback process/receive feedback”) 34

4.6 PHYSICAL EVIDENCES MANAGEMENT 35

CHAPTER 5: EVALUATION AND RECOMMENDATION 40

5.1.EVALUATION AND SOLUTION ON PRODUCT 40

5.3 EVALUATION AND SOLUTION ON PLACE 41

CHAPTER 1: INTRODUCTION

1.1 Company introduction

BAEMIN is a mobile application providing food delivery service on Korean e-commerceplatform The application can meet most of the dining needs of users through a series ofrestaurants and eateries from popular to high-class.

Figure 1 1 BAEMIN connects merchants, riders, customers

BAEMIN was founded by Kim Bong-jin in 2010, operated by WOOWA BROTHERSVIETNAM CO., LTD This is the number 1 food delivery app in Korea and was introduced toVietnam in June 2019 after buying food ordering app Vietnammm.com.

BAEMIN Vietnam has inherited the strengths of discovering the needs and preferences ofcustomers as well as the ability to design and create many products with unique and differentcontent.

1.1.1 Timeline

Figure 1 2 Timeline about BAEMIN

1.1.2 Vision and Mission

With the vision: "Using the power of Information Technology to develop the deliveryindustry" The birth of Baedal Minjok has created an online food delivery experience withtwo-way interaction, bringing innovation to the Food Delivery industry.

With the mission of "Helping people eat delicious food anytime, anywhere" to Vietnam,BAEMIN has a way of working that is not too different from other ordering apps likeGrabfood or ShopeeFood, but has its own slogan "BAEMIN, nóng giòn đây!" todemonstrate that they care about the speed of delivery but still ensure the safety of the driver.

● BAEMIN Kitchen - with exclusive Korean food brands.

● BAEMIN Studio - the place where creative products and familiar utensils bearing theBAEMIN mark are born.

1.2.2 Operational Status

Starting from a food delivery service with only 3 central districts, BAEMIN is now officiallypresent in 8 major cities across the country, of which 5 are centrally-run cities BAEMIN alsooffers 7 payment methods on its application, helping users have more convenient andappropriate options.

CHAPTER 2: MARKET & COMPETITOR ANALYSIS

2.1 Market Analysis

2.1.1 Market Demographics

According to data from the United Nations (April 28, 2022):

● Vietnam's population was 98,816,711 people, accounting for 1.24% of the world'spopulation, ranking 15th in the world.

● 38.05% of the population lives in urban areas.● The average age in Vietnam is 33.3 years old.

● In 2022, Vietnam's population is expected to increase by 784,706 people and reach99,329,145 people by early 2023.

➔ Vietnam is a country with a young population, so it has great potential for developmentthanks to the z generation This generation includes young people who tend to live fast,have a free lifestyle and have diverse needs for food Moreover, these are also peoplewho spend a lot of time at work and will choose quick things to save time, includingeating.

➔ Therefore, BAEMIN focused customer group is Gen Z (born 1995 to 2005) This is apotential community for the food market.

2.1.2 Market Demand

Nielsen reported that, since the pandemic broke out in 2020, the demand for shopping throughe-commerce platforms has increased sharply Up to now, more than 70% of Vietnam'spopulation has access to the internet.

According to research data, the revenue of online food delivery in Vietnam is expected toreach 377 million USD in 2021 and 557 million USD in 2024 with a growth rate of nearly14% According to a 2020 report by Google and Temasek, one in three people is using digitalservices for the first time since Covid-19, and 94% of these new people intend to continue usedigital services after the pandemic is over.

According to a survey by Q&Me, the majority of users choose food delivery via theapplication because it helps them save travel time (61%), in addition, it is also a safe formduring the epidemic season Covid-19 (58%) The next reasons are: food variety (51%),promotion (50%), fast delivery time (46%)…

➔ The covid 19 pandemic has spurred the growth of online shopping At the same time,due to the young population structure and high consumption demand, direct shoppingis increasingly limited.

➔ These are also the factors that help BAEMIN promote its activities to be able to servethe needs of customers in the best possible way.

2.1.4 Market Growth

Despite the fact that the food delivery market share only accounts for about 30% of the totalmarket share of the F&B industry in Vietnam, the growth rate is very high and shows no signof stopping Besides, the value of Vietnam's digital economy, including e-commerce and fooddelivery, increased 16% to 14 billion USD in 2020, according to the eConomy SEA 2020report.

➔ In the future, BAEMIN can still develop steadily over the years.

Payments Cash and

Internet banking:ATM CardVisa/Master Credit cardMomoZaloPay

Cash and

Internet banking:ATM CardVisa/Master Credit cardGrabPay by Moca

Cash and

Internet banking:ATM CardVisa/Master Credit cardShopee Pay

Cash and

Internet banking:ATM CardVisa/Master

Credit cardMomoZaloPay

First 3km: 15,000đ3km or more: 5,000đ/each next

First 3km: 15,000đ3km or more: 5,000đ/each next

First 3km: 15.000đ3.1km-4.1km:

5,000đ/km minimum 10,000đ/order

km km 18.000đ4.1km-5km: 20.000đ

Services Food deliveryBAEMIN MartBAEMIN's Kitchen

BAEMIN Studio

Food deliveryGrab Mart

Food delivery Food deliveryLomartLozatLomedLo-send

In terms of payment methods: Baemin and other apps are diverse However, Baemin is not limited when it comes to paying through a separate payment app like ShopeePay, GrabPay by Moca.

About the price: Baemin has the same price as Grab, ShopeeFood However, from 3km or more, BAEMIN and Grab have a higher price than ShopeeFood 2000d, but from 4.1km or more, BAEMIN users are more profitable than ShopeeFood 500d This is very beneficial for orders over long distances.

About services: BAEMIN and apps have a variety of services But BAEMIN only focuses on developing services in the field of food delivery and shopping like ShopeeFood and Loship, not dividing too many segments like Grab, so the core service is maximally focused.

However, BAEMIN does not serve 24/24, which limits customers to use the service more thanShopeeFood and Loship.

2.2.2 Indirect Competitors

Online delivery platforms on websites/ hotlines of supermarkets (Lotte Mart, Co.op Mart, BigC), convenience stores (Circle K), pizza firms (Pizza Hut, Pizza Company, Domino Pizza), …

2.3 SWOT Analysis

Table 2 2: SWOT analysis of BAEMIN

+About the service

- Focusing mainly on 3 services (Delivery, Mart,Kitchen), so the transportation of food, especiallyhot, cold and fresh food is focused.

- The speed of receiving orders is faster thanGrab, saving time for customers.

- Drivers are certified to vaccinate and delivergoods to keep a distance, ensuring the safety ofcustomers' health when using the service.

- Diversify payment channels when linking withmany banks (TP bank, OCB, VP bank, .),intermediary apps (Momo, Zalopay).

+About the electricity delivery

- Using mint green to turn pastel into the maincolor helps to create a feeling of lightness, cooleyes, comfort and relaxation physically andmentally In addition, this is also a trend colorthat shows the youthfulness of modern youth.- Eye-catching graphics, cute and attractive.- The symbol of a fat cat wearing a motorcyclehelmet, especially always obeying traffic laws,

Food delivery service

+About service time

Service time is limited, only operating from 6am- 1am the next day, so it's not available 24/7

+About the order

- It is difficult to cancel the order once the driverhas received the order If you cancel, you have togo through many operations and have to contactthe switchboard directly.

- No notification when the driver cancels theorder.

+About the food

- Up to now, the restaurant data is still not asdiverse as Grab and Shopee Food, thus reducingits ability to attract customers.

- Unable to check if the photo provided by thepartner restaurant is a real photo taken by therestaurant itself, reducing the accuracy of thecustomer's order.

+About location, positioning

- Sometimes the incorrect positioning of thedriver's location makes the order tracking processnot updated quickly and honestly.

- Coverage is not wide, only concentrated incentral areas (8 big cities), so the service has notreached nationwide.

+About the delivery fee

has created a close image because it is veryfamiliar with the motorcycle culture of Vietnam.

- The food list is classified and described in aneye-catching way right on the main screen,without having to go through many operations.- Displaying reviews in many forms (star rating,comments, age and other criteria) helpscustomers briefly evaluate the partner restaurant.

+About the marketing campaign

- Use the "oil slick" strategy to focus onattacking each area to reduce shipping costs andincrease delivery speed.

- Marketing catches the trend through trendywords and slogans to help young people easilyremember BAEMIN's ads.

- The MV has a collaboration with many famousartists to attract viewers to help increase brandawareness.

- Many discount codes up to 135k whencooperating with partner shops.

- The ability to accumulate the customer'spurchase process at BEST BAE (accumulating10 vouchers) in order to maintain the frequencyof customers using the service.

- There is a Flash Sale program every day.

+About the working team

- Has 12 years of experience in Korea and is the

- Delivery fee is still relatively high on rainydays and holidays.

- Besides, the surcharge fee per order is not lessthan other competitors.

KITCHEN service

- There are only 2 branches in Tan Binh, BinhThanh, limiting the accessibility of customers.- Not too diverse in dishes to reduce the choiceof guests.

MART Service

- Not yet linked with large supermarkets,convenience stores that have or do not have theirown sales websites such as Lotte Mart, Emart,Circle K, Family Mart, Bach Hoa Xanh,

#1 food delivery app in Korea.

- Access to the Vietnamese food delivery marketis easier due to the acquisition of Vietnammm -one of the first pioneers in the field of fooddelivery in Vietnam.

- Understanding Vietnamese culture (geography,interests, cuisine) and updating trends veryquickly.

- Creative and skillful combination betweenculture, trends, customer psychology.

+Opportunities from epidemics

Opportunities from limited contact help fooddelivery services adapt quickly and become ashopping and consumption trend of many people.

+Opportunities from technology

- Opportunities from using smartphones everyday, especially for young people, create manyopportunities for exposure and promotionthrough social networks.

- Cashless payment is also an opportunity forBAEMIN when technologization, prepaymenthelps to increase order safety and limit ordercancellation.

+Opportunities from the government

- The State has laws on e-commerce, creating a

+Risks of diseases

Vietnam has changed from the "Zero covid"campaign to "Living safely with the epidemic",but covid 19 still cannot be completely treatedwith drugs, so there may still be a risk of ablockade like China is now if the number ofcases increases dramatically.

+Risks of capital

- Huge investment debt and going through thequarantine period cause many difficulties inpaying investment bank interest.

- BAEMIN is spending heavily to attractmerchants and consumers, so the amount spent isquite a large number.

- The cost of promotion/advertising investment

premise for BAEMIN to orient its developmentand ensure business.

- Decrees on discounting and lowering interestrates by supporting banks help BAEMINovercome the difficult period of the epidemic.

and the number of employees to cover the entire-69% DR delivery points across the cityconsumes a large amount of money forbusinesses.

+Risks of competition

- Compete with other food delivery companiessuch as: Grab, Shopee Food (Now) with policies,especially price policies through promotions.

CHAPTER 3: TARGET CUSTOMERS ANALYSIS &POSITIONING STRATEGY

3.1 Target Customer analysis

- Occupation: College student, part-time employee, full-time office worker,

- Income: Low-middle income or upper-class are accessible.

- Family size: Single, couple, young couple.

- Generation: Young people of Gen Y and Z.

Need arousal After a tiring working hour, users want a quick meal but must ensurenutrition, energy and time to work for the next shift.

They search for food and eateries using different food delivery apps,compare the factors they are interested in among potential applications, anddecide to choose BAEMIN.

BAEMIN launches an application with eye-catching and easy-to-use maincolors for customers, and separates "healthy" and "sweet" menus to helpcustomers easily choose Moreover, customers can refer to reviews Pricesfrom previous buyers to give them insight and assessment of what they willget compared to what they will pay for the meal and reduce the feeling ofuncertainty or risk the above tangible property

Service encounter stage

Understanding the current convenient electronic payment trend, BAEMINapplication has linked with two major e-wallets, ZaloPay and Momo,combined with promotions to help customers have more choices inpayment With a cute interface and constantly updating new content,BAEMIN has direct and indirect interactions with customers through manysocial platforms.

Post – encounter stage

BAEMIN customers are reasonably satisfied when BAEMIN achievesoutstanding performance or exceeds customer expectations As a result,customers will be very satisfied, these customers are more likely to makerepeat purchases, are loyal to that supplier, and have positive word of mouthabout the good quality of BAEMIN.

Benefits sought Utilities, reasonable price, doesn't take much time

Usage rate Depending on the needs, nature of work, daily life, regular or occasional useof the application.

Loyalty Low, medium and high

Occasion of Mostly noon and evening

using the product

3.1.4 Psychographic

Lifestyle: Concerned about health, fast-paced, interested in fun

Personality: Energetic, dynamic, creative, enthusiastic to discover new things.Attitude: Realistic, optimistic about ordering food online.

3.2.2 Service difference

BAEMIN focuses on developing in the center of the provinces to attract sellers and buyers tohelp dominate the market share of each region BAEMIN's delivery team always callscustomers to confirm their orders to ensure that their orders are confirmed and customers canfeel more secure about their orders.

BAEMIN always has special promotions for each order instead of only applying for aminimum order with a certain quantity The target customers are mainly Gen Z, so BAEMIN

constantly keeps up with the trend with funny trend announcements such as "Gasolineincreases but I want to eat", "Order without excuses, need code", In addition, BAEMIN alsobuilt its own "grocery area" when selling super cute stationery "tag" BAEMIN.

- "Thử chút healthy", a healthy lifestyle is increasingly focused, with the desire thatcustomers can easily find dishes that provide adequate nutrition to protect health.BAEMIN shared nutritious recipes and menus of famous KOLs

- "Bánh Ngọt" - This time, BAEMIN focuses more on female customers to encouragethem to love themselves more and reward themselves with a little sweetness betweenwork and busy life

3.3 Positioning map

Figure 3 1: BAEMIN's positioning spider web chart

Figure 3 2: BAEMIN’S position map

Above are two charts of BAEMIN's brand positioning compared to competitors GrabFood,GoFood and ShopeeFood It can be seen that BAEMIN's brand positioning has an appropriateprice, enthusiastic and friendly driver attitude along with many practical incentives for specialoccasions In general, BAEMIN has achieved a certain successful position in positioning itsbrand in the market and in the hearts of customers.

CHAPTER 4: ANALYZING THE MARKETING MIXSTRATEGIES OF BAEMIN SERVICES

4.1 SERVICES PRODUCT STRATEGY

4.1.1 Service Concept

4.1.1.1 Core Service

With the core service of food delivery, although only entering the Vietnamese market since thebeginning of 2019, BAEMIN has risen and created a solid position in the food delivery appmarket in our country, especially for young people Along with the mission of "Helping peopleeat deliciously anytime, anywhere", BAEMIN promises to bring Vietnamese customers thebest culinary experiences with just a few simple steps such as: Choose food; Select the neareststore and place an order; Your favorite dishes are delivered quickly at a very reasonable price.

BAEMIN's service flower

Figure 4 1: BAEMIN’S service flower

Core: In order to best serve and ensure the dining needs of customers, BAEMIN tries to

diversify its core products as much as possible, they not only provide food delivery servicesbut also go to the market,

Information: In order to meet the needs of customers, BAEMIN has built a website, fanpage

and separate mobile apps for Android and Apple to provide customers with all detailedinformation about dishes, prices, and fees ship There are also discount codes attached,preferential packages Not to mention, customers can also know the nearest restaurants andplaces to sell food to save time, moreover, reviews from people who have enjoyed that dish toget a good choice best.

Safe keeping:

+ For customers: Personal information collected by BAEMIN includes: Full name; Emailaddress; Date of birth; Payment address; Mobile phone number; Aggregated data about theuser's operation history will always be kept carefully confidential and not disclosed to thirdparties without the customer's consent.

+ For partners: In order for companions to be able to safely carry out their delivery tasks,BAEMIN has been implementing a UIC Accident Insurance package This insurance packagewill cover medical expenses, permanent disability, accident death in the case of drivers dueto problems with accidents, assaults while working with BAEMIN.

Bill: After the customer chooses the dish that suits their needs and the available discount

codes, BAEMIN will issue an online invoice so that the customer can confirm once again theamount to be paid.

Consultation: BAEMIN always tries to diversify the choices for customers so that they can

find the dish that best meets their needs Besides, with reviews from people who have enjoyedthe dish, customers will be able to consider and choose the dish that has the best reviews.

Payment: After choosing the dish that meets their needs, customers can choose one of the

payment methods such as cash, internet banking, ATM, zalo pay, momo.

Hospitality: BAEMIN's staffs and driver partners always show enthusiasm, guarantee prestige

and time, and are warm in serving customers These things will bring customers the mostcomfortable and comfortable feeling during the process of using BAEMIN's food deliveryservice.

Exceptions: When customers feel dissatisfied or complain about the delivery time as well as

the quality of the food, BAEMIN will quickly give feedback and alleviate customerdissatisfaction such as giving vouchers or discounts on your next purchase.

4.1.1.2 Supplementary Services

Besides the food delivery service, BAEMIN also offers a series of additional service elementsto reinforce the added values, helping customers to experience the core product moreeffectively.

In which, "BAEMIN Kitchen" (BAEMIN Kitchen) is an exclusive series of restaurants on theBAEMIN application; was put into operation in November 2019 and is operated and managedby a separate department of Woowa Brothers Vietnam With the brand itself originating fromKorea, these restaurant chains contribute to bringing Vietnamese consumers a closer look atexclusive Korean food brands.

In April 2020, BAEMIN announced the launch of a new service called "BAEMIN go tomarket" (BAEMIN Mart) With the new service, the hottest supermarket chains andconvenience stores have all linked up for BAEMIN shippers to go to the market on behalf ofconsumers such as Co.op Mart, BigC, Cheers, Vinamilk, Farmers' Market, The productlines that BAEMIN can serve with this service include canned foods, prepared foods and evenfresh foods such as meat, fish, seafood This service model has been launched to promptlyrespond to the social situation at a stressful time due to the epidemic, thereby helpingconsumers save time and have a safe and nutritious daily meal.

Until June 2021, BAEMIN also launched a new feature called "BAEMIN Grocery" BAEMINGrocery is considered a shop that only sells unique and exclusive items only on the BAEMINVietnam app, which previously only had to be obtained by luck, can now be easily picked uphome.