Final Report BAEMIN [PDF]

Zitiervorschau

1.

Market overview

1.1 Some factors in Macro Environment impact on The Food Delivery Industry in Viet Nam FACTORS IMPACT ON THE FOOD DELIVERY INDUSTRY IN VIETNAM

Demographic

- According to the report of the General Statistics Office of Vietnam, in 2020 there are more than 1.6 million students between the ages of 18-22, of which it is estimated that the number of students in Ho Chi Minh City accounts for more than 100,000 students.

Economy

- According to Picodi's report in 2020, basic food cost/minimum wage in Vietnam is at 50.2%. - According to Deloitte's survey on Vietnamese consumers published in February 2021, people tend to give more priority to items in the list of essential necessities in their monthly household spending budgets. Compared to 2019, spending on food (including prepared, fresh and canned foods) increased from 34% to 42%, housing & utility costs also increased from 7% to 12%.

Sociocultural Macro Environment

- Appearing new eating trends such as eat clean, healthy, etc. - The serious Covid-19 pandemic has restricted people's going out. This also significantly affects people's daily life habits and is a premise for the development of online food delivery services.

Legal policy

- Many State policies on economic development facilitate the wide development of the network of restaurants throughout the country, not limited to the region. - Issue many tax reduction policies and support packages for businesses to overcome the pandemic. - The policy of isolation and social distancing (Directives 15, 16, 19) restricts people from going out and businesses are not allowed to do business on the spot.

Technology

- The era of technological revolution 4.0 creates a strong development of new services and technologies. - The percentage of Vietnamese people using smart mobile phones and the Internet is increasing, making online applications and services more accessible to consumers.

- The increasingly polluted environment makes Vietnamese users increasingly change their views, habits and love a green lifestyle with Natural environment environmentally friendly products, try to use plastic bags, plastic wrap. as little as possible.

1.2 Microenvironment ● Industry Online Food Delivery -

According to Reputa, in 2020, Vietnam recorded strong growth in online food delivery due to COVID-19 (1,140,397 discussions).

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Market research company Euromonitor International said that the online food delivery market in Vietnam will reach 195 million USD in 2020, an increase of 33% compared to

2019. In which, delivery through the app is expected to reach the full scale in 2021. about

$38 million, double that of last year and will grow 11% on average in the next 5 years. -

Market research company Kantar TNS estimates the revenue of the online food delivery market can reach 449 million USD by 2023.

● Customer -

Habits of using food delivery services: According to the report "Trends in using food delivery apps in Vietnam 2020" published by Q&Me in mid-December 2020, 80% of survey participants ordered food delivery. food online at least once a week, mostly at lunch and dinner. According to the survey, 57% of app users often look for restaurant discount codes when ordering food online. On the other hand, 73% of users often choose food with free delivery.

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The results of market research in 2020 conducted by Gojek-Kantar on culinary consumption behavior of Vietnamese people show that lunch and dinner are the two most important meals, Vietnamese people rarely eat alone and give priority. Food quality and variety rather than convenience. More than 60% of people have a habit of eating at restaurants, cash payments prevail, and the average spend on ordering food online is twice as much as eating on-site.

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According to an analysis from Reputa, the main reason for customer satisfaction with the service is "preferential programs and promotions" (accounting for 84%). Speed ​is not always the dominant point, what customers really care about is which service has the most promo codes, rather than the speed of delivery (a factor that accounts for only 2%). In addition, the dinner time is the time when customers use the service the most, many brands have made good use of this point to attract orders.

● Key competitor

COMPETITOR ANALYSIS Baemin

Go-food

Now

Grabfood

Discussion market share 21,95%

6,37%

23,16%

33,38%

Working time

7h30 - 22h

7h30 - 22h

24/7

24/7

Delivery time

Slowest

Medium

Medium

The fastest

More than 80,000

Not announced

Varies by region

3rd lowest

Number partners

of Announcement on par with Now More than 80,000

Delivery prices

2nd lowest

Promotion

Leading with "Great Desire, Promotion Forever, Freeship" and transmission campaignThe There special pine associated with promotions Tran Thanh, the brand identity nomuch. "fat cat" caughteye and Content Marketing series "catch trend".

Payments

ZaloPay, Momo, ATM/Visa/MasterCard Cash

Application UX/UI

Friendly interface, easy to Few updates, but The driver's location place orders. Has location filters convenience Location change is not allowed. is tracked. tracking but is hard to find. food.

Shipper

Not announced. Received very feedback.

Number provinces

The lowest

Start to reduce a lot of the promotional campaign but are Special offers for each continue to increase activities but shop advertising, communication with meaningful messages and positive reception. ATM/Visa/MasterCard , Airpay ATM/Visa/MasterCard, Moca

Over 150,000 positive Normal response.

Not announced

Large quantity: more than 190,000 VND Getting feedback is often not good.

of 8

2

16

15

Strength

- Easy-to-use interface, smart icons cute drawing - Many impressive campaigns and MVs, hotly discussed. - Many quality "terrible" offers in the early stages of launch, down 50-60%, maximum reduction of 50-80k. - Notification of recent order updatesclose, cute. - Can make notes for each item. - The shipper is trained in the process, postcopy, friendly review, closeclose

Weakness

- There is not much data of the shops. - Only works for a period of time from 7:30am to 10:00pm daily. - Coverage is not good, not many restaurants by Now. - There is no chat box to communicate when there is a need to edit orders withshipper. - There is no Star rating section restaurant, just like it or not. - Only discount on food, no discount code on all orders. - If paying by ZaloPay,Momo or credit account, when place an order, the application will deduct money immediately, so when the restaurant runs out of dishes, it happens often Extra fee can't edit again price, and have to wait a while to get a refund on the card.

- The number of restaurants is high. - Flexible suggestions help users convenient selection. - There are many program promotions. - Fast delivery speed quickly.

- Customers can check out comments, reviews, pictures and photos before ordering. - The most abundant store data in all apps (nearly 37,000restaurant in Ho Chi Minh) and is present in 15 provinces is different. Intuitive app interface,users can take notes,or add toppings by each dish. - There are many methods of payment like an e-walletAirPay, and card payment. - 24/7 operation.

- Food pictures are not reality. - Does not support card payment,electronic wallet. - Frequently canceled orders Promotionsno diversity - Can't place many orders same time - Shipper is not equipped with a cooler box.

- Time to confirm the application is left slow - Surcharge for the shops located in the mall commercial, the shops are not Sign a contract (3,000-6,000 VND) - Multi-step AirPay wallet and cumbersome, must install the app Payment of Now and contact card link. Encountered accusations of applying to put the driver in the pairing single and cut % too much. - Delivery charges are still high.

- Appointed before the delivery time. - Hold the discussion of the highest market share tallest. - Developed from a ride-hailing platform online - Built-in ewallet linkMoca right in the app - Delivery time is ratedPrice is fastest. - There are many promotions forever for each member,at different levels. - Handling and solving, taking care of customers when having problems. - Earn points after each use of services and use points to redeem gifts or vouchers. - Hours of operation 24/7.

- Offers are uneven between devices, users depend on customer segment - Restaurant data is not much, the number of shops available on the app is theThe shop signs a discount contract. - Due to the flexible choice of shipper Food or Bike menu should be multidriver part is not equipped cooler box. - Grab's delivery fee is higher than the market. - Moca wallet is rarely used

2. Overview Baemin Launched in 2019, Baemin company immediately attracted consumers with its beautiful, friendly and modern image, understanding customer psychology. Baemin was built and developed by Woowa Brothers - Korea's leading provider of Baedal Minjok food delivery service. Woowa Brothers acquired Vietnammm at the end of February and officially changed the entire system to Baemin. Woowa Brothers launched the application "Bae-dal-e-min-jok" (abbreviated as BAEMIN) in Korea with the vision "Using the power of Information Technology to develop the Delivery Industry". The birth of this application has created a 2-way interactive online food delivery experience, bringing innovation to the Food Delivery industry.

Woowa Brothers has gained attention, won many investments after establishing Baedal Minjok and is considered a "unicorn" in Korea, when just a startup company can call for investment. to millions of US dollars. Currently, the company is aiming to promote and develop the field of "food-tech" by applying advanced technologies such as artificial intelligence (AI) and "self-driving robot" technology. Carrying on the mission of "Enjoy your favorite food wherever you want", Baemin company not only aims at simple pick up and delivery, but they also want to build a complete experience for customers. customer. Not only is the food guaranteed to be hot, delicious, and complete in appearance, Baemin company also wants to build an ecosystem with Baemin rider, Baemin kitchen... to grow stronger. Baemin's Journey ● 06/2010, Established Woowa Brothers ● 05/2019, Present in Ho Chi Minh City, Vietnam ● 04/2020, Launching BAEMIN to go to the market ● 06/2020, Officially participating in Hanoi market 3. SWOT Analysis of Baemin

4. The research objectives

In this project our group research on consumer behavior especially university students to find the answer for these questions -

What is the motivation for young customers to use Baemin?

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Where is the gap in the marketing strategies of Baemin with the behaviors of young customers?

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What needs to be changed or what marketing considerations that Baemin should take into consideration to target the segment of university students in Ho Chi Minh City?

5. Use of the theory/key contents from textbooks behind the chosen topics that can support to define the data to collect INTERNAL FACTORS 5.1. Sensory Marketing is the feeling that helps us decide which products are attractive and stand out from a range of similar products on the market, thereby creating a competitive advantage. Sensory Marketing hits the senses: a. Vision. b. Smell. c. Sound. d. Touch. e. Taste. 5.2. Brand Personality: is the set of characteristics that people ascribe to a product as if it were a person. Consumers attribute personality qualities to all sorts of inanimate products. Like our relationships with others, these designations can change over time; Therefore, marketers need to be vigilant in maintaining the brand personality they want consumers to perceive. Regularly practicing your desirable brand personality is the key to building brand loyalty. 5.3. Lifestyle and Characteristics Theory: a. Characteristics is Personality Trait: an identifying feature that defines a person Characteristics related to consumer behavior: -

Innovation

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Materialism

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Self conscious

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Cognitive need

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Savings

b. Lifestyle research is useful for tracking society's consumer preferences and also for locating specific products and services to different segments. Marketers segment based on lifestyle differences; they often group consumers according to their AIOs (activity, interests and opinions). 5.4. Choosing Familiar Brand Names: our tendency to prefer a number one brand to the competition, the tendency to buy a brand out of habit merely because it requires less effort, repeat purchasing behavior that reflects a conscious decision to continue buying the same brand. 5.5. Decision-making process Steps in the decision-making process: a) Problem recognition b) Information search c) Evaluation of alternatives d) Product choice 5.6. Motivation - Many factors at the time of purchase dramatically influence the consumer’s decision-making process. - The way consumers evaluate and choose a product depends on their degree of involvement with the product, the marketing message, or the purchase situation. 5.7. Theory of Planned Behavior: Perceived behavioural control Theory of Planned Behavior (TBH) details how the influences upon an individual determine that individual's decision to follow a particular behavior. Within the TPB, the determinants of behavior are intentions to engage in that behavior and perceived behavioral control (PBC) over that behavior. Intentions represent a person's motivation. The construct is conceptualized as an individual's conscious plan or decision to exert effort in order to engage in a particular behavior. Perceived behavioral control is a person's expectancy that performance of the behavior is within his/her control. Intentions are determined by three variables. The first is attitudes, which are an individual's overall evaluation of the behavior. The second is subjective norms, which consist of a person's beliefs about whether significant others think he/she should engage in the behavior. The third measures the extent to which the individual perceives that the behavior is under their personal control and is labeled PBC. 5.8. Science of Persuasion We have the power to capture the public, influence the undecided, and motivate purchases. There’s no magic involved, but actually scientific knowledge. The science of persuasion or Science of Influence comes from social psychology. So, these are the 6 principles of persuasion, and show you how you can apply them to your business or marketing strategy. They are: • Reciprocity • Consistency

• Social Proof • Sympathy/Like-ability • Authority • Scarcity EXTERNAL FACTORS 5.9. Culture The first theory of the external is Culture and subculture. Culture includes both abstract ideas, such as values and ethics, and material objects and services, such as the automobiles, clothing, food, art, and sports a society produces. It’s the accumulation of shared meanings, rituals, norms, and traditions among the members of an organization or society. 5.10. Subculture A subculture is a group of people within a culture that differentiates itself from the parent culture to which it belongs, often maintaining some of its founding principles. Subcultures develop their own norms and values regarding cultural, political, and sexual matters. Subcultures are part of society while keeping their specific characteristics intact. Examples of subcultures include hippies, goths, bikers, and skinheads. The concept of subcultures was developed in sociology and cultural studies.[1] Subcultures differ from countercultures. 5.11. Age An age cohort consists of people of similar ages who have similar experiences. They share many common memories about cultural icons (e.g., John Wayne versus Kanye West), important historical events (e.g., the Great Depression versus the Great Recession), and so on. Although there is no universally accepted way to sort people into age cohorts, each of us seems to have a pretty good idea what we mean when we refer to “my generation.” Marketers often target products and services to a specific age cohort; our possessions help us identify with others of a certain age and express the priorities and needs we encounter at each life stage. 5.12. Reference groups: A reference group is an actual or imaginary individual or group that significantly influences an individual’s evaluations, aspirations, or behavior 5.13. Word-of-mouth: Word-of-mouth (WOM) is product information that individuals transmit to other individuals. Currently Baemin utilizes viral marketing to encourage WOM from customers. 5.14. Viral marketing occurs when an organization motivates visitors to forward online content to their friends; the message quickly spreads. Smart marketers do whatever they can to encourage the use of video WOM for their products. 5.15. Influencer marketing: KOLs and bloggers have become such important online opinion leaders. Consumers perceive them as the third most trustworthy source of information after friends and family. 5.16. Social media changes the way we select products. Social media platforms enable a culture of participation; the ability to freely interact with other people, companies, and organizations; open access to venues that allow users to share content from simple comments to reviews, ratings, photos and stories. 6. Summary of the focus group

Our team reviewed internal and external factors introduced in the Customer Behavior course and conducted in-depth interviews with 10 different students (19 - 21 years old) to find out how these factors affect their behavior. Here are the summary data generated from the interviewees' answers ● Customers feel Baemin's color is the most impressive and that is the point for customers to distinguish Baemin from other brands. However, a few people are impressed with the shipper's customer care and almost nothing about Baemin's mascot or brand font. ● Baemin has built a friendly, witty, creative and youthful personality through slogans, colors,... in the hearts of customers.Consumers have seen Baemin's banner ads a lot, but those don't leave any deep impression and those ads don't affect their decision to order food on Baemin for the next meal. However they will memorize our brand outlook unconsciously and this strategy keeps reminding them of Baemin once they see our banners. ● The price of the dish is the most important factor affecting customers’ decision to order, followed by the shipping fee and the promo code. ● Most interviewees have a fast-paced lifestyle, they are always busy with not only school work but also other extracurricular activities. Most of the reason is because they are too lazy to cook and they want to take that time to rest, or do other work. . They use Baemin since it’s convenient ● Promotion affects the purchase decision of customers, and the discount more or less does not affect much, as long as there is a discount. Interviewees are still not really interested in Baemin's discount hours, which affects customers' purchases but not much. ● All the interviewees tended to order food at noon and in the evening (lunch and after school, coming home from work). Some people order main dishes, some people order snacks. Mostly because they are too lazy to cook. ● All of the interviewees said that their behavior of using Baemin is somehow affected by their friends and relatives. They see their closed ones using Baemin and follow them. It means that the effect of the reference group is significant. ● Most of (4/5) interviewees don't press like on Baemin fanpage. They rarely interact with content of Baemin but they will if it is entertaining or meme content. They usually encounter content related to Baemin, mainly about trendy content like MVs/slogans of Baemin and information about discounts. ● All the interviewees know about the viral content of Baemin including MVs or billboards campaigns. ​MV em be is the most popular. One of them did not know this MV is promoting Baemin. They encounter this content on the street and social media. They find it

interesting but not impressive. This campaign does make young customers feel the brand is more familiar and relatable. ● They know about healthy diets. However, they think that these are often more expensive and need a plan to be effective, and they themselves do not know where to start. ● Their favorite KOLs often have a great influence on their purchasing decisions. They feel confident using the products recommended by these people and want to live like their idols. 7. The data analysis and consumer insights

Demographics

- Age: 18 - 22, students - Studying in HCMC - Stay in HCMC or rent a house to study in HCMC

Behavior /Lifestyle

- Most interviewees order food in the evening and often take a long time to choose the food. - Interviewees like new dishes but are afraid to change restaurants/brands. - Interviewees interested in a green lifestyle (willing to contribute a little to use environmental protection materials, but this does not impact too much on the decision to order. - Interviewees know about the Eat Clean diet but haven't done it because they think they need a lot of money and don't know what to eat and what the menu should be every day,... - Interviewees access information mainly through social media - Interviewees see Baemin's billboard outside but rarely pay attention to it - Diversity of lifestyles

Attitude towards Baemin

Truth

- Interviewees thought Baemin has a youthful image - Interviewees know about content such as MV (MV “Em bé”, “Ngọt”), billboard advertising - Interviewees were impressed with the color of Baemin. They know about the campaign but don't know it's Baemin's advertisement.

- Young customers know Baemin through friends, family and social media - Young customers have a habit of joining community groups for young people on facebook to update information, entertain and relax. - Having a busy life with study and extracurricular activities - Usually order food in the evening - It takes young customers a long time to choose the dish since they want to find good discount codes.

- Trust the recommendations of your favorite KOLs..

Motivation

- Busy, lazy to cook - Crave for a snack or drink after studying or working hard - Surfing on social media and seeing delicious food

Tension

- Young customers do not want to spend much time browsing for the food and discount codes. - Young customers don't have the habit of keeping track of the discount hours, which makes them pay more money for ordering than they should with vouchers on Baemin.

Insight

“I am a student, leading a busy life with study and extracurricular activities. I want to quickly order food throughout the day at a favorable price”

8. A set of marketing considerations that should be taken into account by organizations targeting the segment.

A. Marketing consideration in-app ● Changing app display: Adding Bae’s story function 1. Objective - Increasing app engagement - Improving user retention 2. Key hook: - Objective: + To engage customers in this function to the point when they are unaware of the amount of time they spend on Baemin. + Customers are more likely to utilize the app as a result of the app's enticing culinary content from the community combined with their appetite. - Description: + We should establish a social network within the app beside the primary page which is used for ordering food. This is known as Bae's or Em bé's story. + This section was created with the intention of allowing consumers to publish their own meals. + Their story may only be visible for 24 hours, and our customers can choose to share it with their friends or locals. + Customers can look through the stories of influencers or people in their area to discover what they have for this meal. Once they've seen what they like, customers can click on an invitation that takes them to the restaurant which serves that food or a range of selection of similar restaurants or dishes to choose from. 3. Tactics: in-app + Customers who upload for the first time will receive valuable gift vouchers from Baemin to use on their next order. They will receive a bonus point for the coupon for each click on the invitation to the restaurant in the story.

+ Using influencers to engage customers from posting stories.

B. IMC plan Big idea

Baemin bên bạn (Baemin by your side)

Key message

Baemin là ứng dụng đặt đồ ăn trẻ trung, tiện lợi, đưa đến những bộ sưu tập món ăn cùng nhiều mã giảm giá khác nhau

Target segment

University students from other cities coming to HCMC to study and live here

Phase

1-Trigger

2-Engagement

Time

02 weeks

01 month

Objective

Key hook Tactics

- Increase the awareness of Baemin's brand. - Trigger for everyone to try Baemin app. Campaign “Thêm bạn thêm vui" Give promotion code - KOLs - Tiktok - Facebook - Short film - Promotion - Referral code from friends

- Build engaged communities, strong social platform. - Advertise new functions to target segments. Fat cat-mascot of Baemintelling stories on Tiktok. - Social network - Tiktok

8.1. Phase 1: Trigger 8.1.1. Key hook: - Give promotion code “Thêm bạn thêm vui” - Objectives: ● Attract customers, especially those who have never used Baemin. - Description: ● When customers watch KOL's clips, they will receive a code at the end of the clip, when entering the code at Baemin's order, they will receive a discount on 01 invoice. ● Each KOL will have a different code, the larger the coverage, the more discount the code will be. 8.1.3. Tactics:

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KOLs will give discounts from Baemin at the end of each clip or post in public groups (on Facebook or Tiktok), and also introduce Baemin's "Thêm bạn thêm vui" campaign. The KOLs appearing in this campaign are An is here, Moe đi đâu, Ninh Tito,... These KOLs belong to both the education and catering fields, are aimed at young people, and will be the channels which most students watch, including freshman. - Short film: Collaborate with CL Team (KOL group on Tiktok) to make a short clip about freshmen who have just set foot in Saigon, want to eat Saigon food but don't know the way and don't have a motorbike, then introduce the battle. translate "Thêm bạn thêm vui" and introduce a general discount code for the campaign. - Referral code from friends: each user has their own code and can share it with friends. Both the referrer and the referred person will receive a discount code 8.2. Phase 2: Engagement 8.2.1. Key hook: -

Creating a TikTok account with the main character is Baemin’s mascot - the fat cat.

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Objective: Introducing our customers with the new functionality in-app called Bae’s story. Encourage customers to start using the app's new feature.

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Description:

+ This account will post 1 video per day for a month in order to gain customer familiarity. + Content: Including videos from phase 1 combined with videos of the fat cat telling stories about the company, users and showing delicious dishes that are available on Baemin. This account can interact with audiences for user generated content through Branded Hashtag Challenges, which basically involve a song, dance moves, or a task that members are challenged to recreate. 8.2.2. Tactics: Branded Hashtag Challenges -

Time: 1 last week of phase 2

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Description:

+ We could easily create a cute dance choreography with our corporate mascot's cuteness, and our target audiences could conveniently recreate the dance using the hashtag #Mailaembe. + “Em be” from Amee ft Karik would be suitable so this is the recommended song for this challenge. + Participants in this challenge could get 3 50% discount vouchers only after they have posted a story on our newest “Bae’s story” feature.