IMC plan cho thương hiệu Baemin

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 MARKETING STRATEGY

Subject: Marketing Strategy Intructor: Mr NGUY N H I MINHỄ Ả

Major: Marketing Management

Members:

VÕ TH ÁNH DỊ ƯƠNG 71600020 NGUY N HOÀNG B O TRÂNỄ Ả 71604332 NGUY N VI T TH NGỄ Ệ Ắ 71600133 HCMC, September 20th 2019

-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 market

Secondary Target market

Age 25 -34 years old 18 -24 years old

Gender Male and Female Male and Female

Income Middle – Moderately

High income

Low – Middle Income

Occupation Officers, working

adults

Students, working 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 ”

Objectives

Increase the level of awareness of “eco-conscious Baemin”

Mint go green HCM

City

Do action with Baemin and spread positive messages to the people around

Highlight key Viral Clip, Magazines,

Offline event, Mobile App, KOLs

Channels

Social network ( Facebook, Youtube), KOLs, Viral Clip

Billboard, Online banner, Print Ads, Social network

Social network, E-com site, Mobile app, WOM, POS, 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