service marketing assignment bee

Launched in 2019, Be has not only stopped at a ride-hailing app, but has expanded its ecosystem to delivery, food delivery, airline ticket purchases, insurance, telecommunications servic

VIETNAM NATIONAL UNIVERSITY, HANOI

2 Dinh Thi Thu Ha - 20070151

3 Nguyén Diéu Hanh - 20070161

4 Téng Quyét Lap - 20070220

5 Bui Manh Anh - 20070069

Hanoi, May 2023

— Introduction

Be is Vietnamese’s multi-on-demand services technology platform, providing access to a wide range of services Launched in 2019, Be has not only stopped at a ride-hailing app, but has expanded its ecosystem to delivery, food delivery, airline ticket purchases, insurance, telecommunications service packages, and e-lottery tickets, and developing Cake by VPBank Digital Bank

In less than 4 years, Be's services are now present in 28 provinces and cities nationwide, reaching more than 20 million downloads

Vision

“Consumer digital platform for local consumers’ everyday needs.”

Be aims to be the solution for every customer’s daily needs They’re working towards improving society through innovation and technology

Core values

© Community

e Innovation

e Empowerment

Vietnamese customer behavior

Customers spend up to 77% of their time on the top 3 apps, and almost half

of their time on | of these apps People want a solution that can solve all their problems - this is why multi-service integration apps are becoming more popular For customers, when they are used to using services as part of daily life, their willingness to pay will stabilize What customers care about is not only price reduction but also service quality

Vietnam has one of the fastest-growing urban populations in the region, one that participates actively in the online economy However, Vietnamese consumers tend to favor foreign goods and services People are often hesitant to try services provided by local players due to a perception that local products are

of inferior quality Therefore, local players like Be may have trouble getting Vietnamese users on board with their platforms

Il Current marketing situational analysis

1 Macroeconomic

Political

Political stability is a necessary condition for business development Vietnam has stable politics and has made many great achievements in putting the country on the momentum of development Vietnam's accession to WTO, accession to the United Nations Security Council, globalization, anticipating foreign trends, and integration into the global economy all bring opportunities for businesses to develop in the global market

Economic

The domestic economy continued to expand its growth momentum Accordingly, GDP in 2022 increased by 8.02% compared to the previous year, reaching the highest increase in the period 2011 - 2022 due to the recovery of the

€COnOmV

in the 2011-2022 period

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Viet Nam’s GDP growth in January-September hits 12-year high

The infrastructure of the transport and telecommunications industry is constantly being improved to improve service quality In which, passenger transport is 3.9 times higher and passenger rotation is 5.7 times higher than the same period last year, freight transport increased by 52.6% in terms of transportation and 60.4% in rotation In the third quarter of 2022, passenger transport was 3.9 times higher than in transportation and 5.3 times higher in rotation compared to the same period last year; freight transportation increased

by 65.5% and 63.7%, respectively Telecommunications revenue in the third quarter of 2022 was estimated at VND 79.9 trillion, up 8.1% over the same period last year (if excluding the price factor, it increased by 7.8%)

Vietnam continues to be a specific international tourist destination in the first nine months of 2022, Vietnam welcomed more than 3.36 million foreign visitors

in 2022, which is 23.3 times higher than in 2021 but down by 79.9% compared

to the figure in 2019, prior to COVID-19

distance from their house to the bus station to catch the public transport such as the bus or subway to go to school and work Or most impressive is the Netherlands - a country with almost no concept of motorbikes, mainly using bicycles

However, in Vietnam, motorbikes still "dominating" all roads

Illustrate : Motorcyclesdata.com is a website that updates all major two- wheeler markets in the world (including motorcycles and motorcycles), such as Europe, North America, Africa and the Middle East, Asia-Pacific and the market alone ASEAN School According to the statistics of this site, Vietnam is ranked 4th in the world with the annual consumption of motorcycles of more than 3 million units, behind the markets of India, China and Indonesia

In the first half of 2019, Vietnamese people bought an average of more than 8,300 cars per day, with sales of more than 1.5 million vehicles Although the market capacity is only ranked fourth in the world, the percentage of new motorbike buyers is the highest in the world That partly reflects the general picture of vehicle ownership of people in the country, where motorbikes are still

a much more popular and accessible form of transport than cars

Technology

Currently, we can see that the world is constantly changing, especially in the field of technology in the past decade with the appearance of Blockchain, the explosion of 4G, 5G networks, and the number of users Social networks, applications to billions of people, the development of communication channels, television, digital content In that context, Vietnamese people need to have a sense of protecting Vietnam's "digital sovereignty” Vietnamese businesses must work together to create a strong, pure Vietnamese digital ecosystem, strong enough to compete in the domestic market, and reach out to regional and global markets together Because of that, Be Group needs to be a pioneer in building Vietnam's open technology ecosystem and digital platform

According to a survey by Statista as of May 2021, there are about 61.3 million smartphones in use in Vietnam and in the top 10 countries with the highest number of smartphones in the world

China 911.92 india

United States

indonesia Brazil Russia

japan

Mexico Germany Vietnam

Smartphone users worldwide

The large demand for smartphones with Internet connection has a very positive influence on the demand for online car booking via the BE application, shown that the BE app has been downloaded more than 10 million times on Google Play and has a positive rating of 4.6 * | 69K reviews And according to statistics up to now, there is 1 booking is every 2.5 minutes

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Legal

Keeping pace with the global trend, over the past few years, the Government has made wise policies on promoting comprehensive digital transformation Specifically like:

e Resolution 52 in September 2019 of the Politburo, emphasizing that proactive participation in the industrial revolution 4.0 is an opportunity for Vietnam to make a breakthrough

e Directive No 01/CT-TTg dated January 14, 2020 on promoting the development of Vietnamese digital technology enterprises

Started with a ride-hailing service, BE has also developed other utilities to meet the needs of customers, such as delivery, food ordering or e-wallets Customer feedback is received by BE and continuously improves products and services accordingly

e Transportation services: Convenient transportation with beCar, beBike, beTaxi Present in many provinces and cities nationwide Be's transportation services always put the safety of passengers as a top priority

- Be Motorbike: Order the most convenient and economical 2- wheeler

- Be Car: Book a comfortable and luxurious 4-seater and 7- seater car

- Be Going to the province: Rent a long-distance car one-way and two-way to neighboring provinces with reasonable fees

- Be Rent by the hour: Rent a car by the hour, flexible route, option to rent from 2 hours - 10 hours

e Delivery service: Fast delivery, reasonable fee, easy to track order status

e Air ticket service: Air tickets at the most competitive price, no hidden fees Currently, Vietjet Air and Bamboo Airways are the two airlines officially "landing" at the Be app, with a variety of options to meet the needs of buy customer tickets by filters like:

- Ticket class

- Itinerary and take-off time, landing time

- Select by price, etc

Shop for anything and get them to your door with

Get from A to B conveniently with beBike, beCar which + beShopping!

pr Easily Accumulated bePoints

Deliver quickly, receive instantly! 5-star quality delivery wư lứa o3 of p to 3% of Be’s service value Bổn sư

= Thousands of offers from Be and our partners

26 Higher Tiers, Better Benefits

ao Attractive benefits for Be members in every ter

Corporate customers:

BeCorporate: Manage your business’ daily mobility needs easily and efficiently The intelligent management system helps enterprises to set policies for each group of employees by time, geographical limit, limit and type of service

BeAds: an effective business solution, helping millions of businesses reach customers through online and offline advertising

be Company Consumer Corporates Driver Support Food Partners | ownLoHD APP HOW EN

Services by Be

milions of eustorners through: online œnd offline œclvertising

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Bargaining power of suppliers

BE is an intermediary application between customers and drivers, so the activities of drivers are considered as a condition for the company to develop

When entering the Vietnamese market, there were many times when BE changed its policy, causing many drivers to strike and protest by simultaneously shutting down the app Examples can be mentioned as events in 2020 when BE decided to increase discounts or change policies

After the incident, Be Group will deduct, declare and pay VAT (tax rate of 10%) for the entire transportation revenue of vehicles and orders before dividing the cooperation revenue business for Driver Be with the revenue sharing ratio unchanged

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= r (Chiết khẩu )

€ Chỉ tiết thu nhập chuyến đi Chỉ tiết thu nhập chuyến đi

Tầng thụ khách

11.847 4 Thu nhập tải xế Ũ Thu nhập tài xế 20.4934 Thuế thu nhập cá nhân 316« Thuế thu nhập cá ni 307đ

Tài xế thực nhận 20.1434 Tài xế thực nhận 20.2464

This change of BE is still considered somewhat unsatisfactory for drivers, so many people have expressed that they are looking for another job instead of continuing to run BE or switching to other ride-hailing platforms

However, BE is still an ecosystem that has dominated the market, and there are many people who see BE drivers as a part-time job and the supply of drivers

is abundant Therefore, the pressure and bargaining power from the drivers themselves is really not enough weight for a growing and dominant business like

BE

Threat of new entrants & Industry rivalry

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COMPANY TOTAL SCORE

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Diềm tương tác « Diềm độ lan tỏa

Market share of BE and competitors in the market

2018 is considered a blooming year for the ride-hailing market with the appearance of a series of new applications such as Go-Jek (Go- Viet), Grab, My

go, and Futa Taxi

In the first half of 2019, Be owned a market share of 16% and became the second ride-hailing company in Vietnam

Threats of Substitutes

The pressure of alternative products is quite high when in the market there are many competitors that are fiercely competing with BE in terms of both price and quality of passenger transport services, fast food delivery, express delivery

In the field of fast food delivery, in addition to BE’s BeFood, there are also ShopeeFood, GrabFood, Beamin, etc

In the market, in addition to the BeExpress delivery application, there are other popular applications such as gosend, Giaohangtietkiem, GHN, etc

GrabFood ShopeeFood

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a superior user experience, and establish strong customer relationships Unlike multinational companies like Grab and Gojek, which operate in various markets,

Be Group can concentrate primarily on the domestic Vietnamese market This focused approach allows the company to allocate its resources and efforts to develop a business model that aligns with local characteristics and requirements, giving them a competitive edge over international competitors

Promotions: Be Group has gained significant traction in the market since its launch in December 2018 According to ABI statistics, the company completed

31 million rides in just six months, capturing a 16% market share This achievement can be attributed to their strategy of swift market penetration, extensive promotions, and attractive incentives that stimulate market demand During its initial launch, Be Group introduced multiple incentives for first-time users, including generous discount codes of up to 50%, 25%, and 20% Even after exhausting the monthly discount codes, users were provided with additional codes for the following month, ensuring continued benefits Unlike competitors like Grab and Gojek, who have limited discount offers, Be Group has maintained

a substantial number of discount codes over time, although the discounts may have reduced compared to the initial launch Furthermore, Be Group offers promotions when customers make payments using other e-wallets, providing added value to users

"No rush hour price increase" strategy: One of Be Group's strategic approaches is to avoid surge pricing during peak hours, in contrast to the common practice among Grab and other ride-hailing platforms Many Grab customers have expressed dissatisfaction with the "price increase” during peak hours or adverse weather conditions in addition to Grab's price adjustments and increases at the beginning of 2022 In fact, even outside of peak hours, the situation of booking a car remains challenging, with prices continuing to rise The Grab app often displays the message "high fare due to high demand" at any time of the day In contrast, Be Group has chosen not to increase prices during peak hours, a strategy that resonates with customers, fosters empathy, and encourages increased app usage

The integration of electric vehicles: Billionaire Pham Nhat Vuong's Green and Smart Mobility Joint Stock Company (GSM) has invested directly in Be Group, and in April 2023, GSM launched electric taxi services and rentals of VinFast electric cars and motorbikes with the investment aims to deploy up to 10,000 electric cars and 100,000 electric motorbikes Moreover, through financial partners, GSM will support Be Group's drivers in transitioning from petrol cars to electric vehicles, providing exclusive incentives for renting or purchasing VinFast electric cars and motorbikes at attractive costs With