(TIỂU LUẬN) FINAL EXAM SUBJECT MARKETING SERVICES COURSE CODE MARKETING SERVICE OF BAEMIN

UNIVERSITY OF FINANCE AND MARKETING

FINAL EXAM
SUBJECT: MARKETING SERVICES
COURSE CODE:

MARKETING SERVICE OF
BAEMIN

Ho Chi Minh City, July, 2021


UNIVERSITY OF FINANCE AND MARKETING

FINAL EXAM

MARKETING SERVICE OF
BAEMIN
Group Member:
Phạm Như Thảo Ngọc
Trần Bảo Ngân
Phạm Thiên Hà
Hà Thị Ánh Tuyết
Trần Đức Huy

Ho Chi Minh City, July, 2021


INDEX
Section 1. Introduction..................................................................................................................1
Section 2. Market and Competitors Analysis..............................................................................1

2.1. Market Analysis and Competitor Analysis.......................................................................1
2.1.1. Market Analysis...........................................................................................................1
2.1.1.1. Market Situation..................................................................................................1
2.1.1.2.

Composition......................................................................................................2

2.1.1.3. Location................................................................................................................3
2.1.1.4. Trends....................................................................................................................4
2.1.2. Competitor Analysis....................................................................................................4
Section 3. Target Customer analysis and Positioning strategy..................................................6
3.1. Target Customer analysis...................................................................................................6
3.1.1. Demographic................................................................................................................6
3.1.2. Geographic...................................................................................................................6
3.1.3. Behavioral....................................................................................................................6
3.1.4. Psychological................................................................................................................7
3.2. Positioning strategy............................................................................................................7
3.2.1. Image difference..........................................................................................................7
3.2.2. Service difference........................................................................................................8
3.2.3. Message difference......................................................................................................8
3.3. Positioning map..................................................................................................................9
Section 4. Analyze the Marketing Mix strategy........................................................................11
4.1. Product..............................................................................................................................11
...............................................................................................................................................11


4.1.1. BAEMIN’s facilitating supplement including information, order taking, billing
and payment........................................................................................................................12
4.1.1.1. Information........................................................................................................12
4.1.1.2. Order taking.......................................................................................................12

4.1.1.3.

Billing...............................................................................................................13

4.1.1.4. Payment..............................................................................................................13
4.1.2. BAEMIN’s

enhancing supplement including consultation, hospitality,

safekeeping and exceptions................................................................................................13
4.1.2.1. Consultation.......................................................................................................13
4.1.2.2. Hospitality..........................................................................................................13
4.1.2.3. Safekeeping.........................................................................................................14
4.1.2.4. Exceptions...........................................................................................................14
4.1.3. How did BAEMIN innovate their service?.............................................................14
4.2. Distribution.......................................................................................................................15
4.2.1. Distribution options for serving customers.............................................................15
4.2.2. Channel preference: For BAEMIN’s target audience, convenience is a key
driver of channel choice......................................................................................................15
4.3. Price...................................................................................................................................15
4.3.1. BAEMIN uses competition – based pricing strategy.............................................16
4.3.2. Related Moneytary cost............................................................................................16
4.3.3. Activity – based cost..................................................................................................16
4.3.4. Key categories of rate fences....................................................................................17
4.4. Promotion:.........................................................................................................................18
4.4.1. Target Audience:.......................................................................................................18
4.4.2. Specifying Communication Objectives:..................................................................18
4.4.3. The marketing communication mix:.......................................................................18

4.4.3.1. Service delivery channels:.................................................................................18
4.4.3.2. Traditional marketing channels:......................................................................20
4.4.3.3. Internet:..............................................................................................................26
4.4.3.4. Outside the Organization..................................................................................29
4.5. Process...............................................................................................................................32
4.5.1. Flowcharting customer service processes...............................................................32
4.5.2. Developing a Blueprint:............................................................................................32
4.5.2.1. Step 1: User enters BAEMIN app....................................................................32
4.5.2.2. Step 2: Selects the favorite milktea flavour.....................................................33
4.5.2.3. Step 3: Add items to cart...................................................................................33
4.5.2.4. Step 4: Pay and order online.............................................................................33
4.5.2.5. Step 5: Food preparation and delivery............................................................33
4.6. Physical Evidence.............................................................................................................33
4.6.1. Ambient Conditions:.................................................................................................33
...............................................................................................................................................34
4.6.2. Space/Function:.........................................................................................................34
4.6.3. Signs, Symbols, Artifacts:.........................................................................................36
4.6.4. Evaluation and recommend.....................................................................................37
4.7. People management..........................................................................................................37
4.7.1. Hire the Right people:...............................................................................................37
4.7.2. Enable BAEMIN’s people:.......................................................................................38
4.7.2.1. Building high performance service delivery teams:.......................................38
4.7.2.2. Empower the Front Line...................................................................................38
4.7.2.3. Extensive Training on:.......................................................................................38
4.7.3. Motivate and Energize BAEMIN’s people.............................................................39


Section 5. Evaluation and Recommendation.............................................................................40
5.1. Product..............................................................................................................................40
5.2. Price...................................................................................................................................40

5.3. Distribution.......................................................................................................................41
5.4. Promotion..........................................................................................................................41
5.5. Process...............................................................................................................................41
5.6. Physical evidence..............................................................................................................41
5.7. People.................................................................................................................................41


LIST OF FIGU
Figure 2. 1 Food delivery user trend (Source: Q&Me)...................................................................2
Figure 2. 2 Food application penetration Vietnam (Source: Q&Me)..............................................2
Figure 2. 3 Location based food delivery service (Source: Q&Me)................................................3
Figure 2. 4 Changing in app delivery usage (Source: Q&Me)........................................................4
Y
Figure 3. 1 Positioning Map............................................................................................................9
Figure 3. 2 Positioning Map..........................................................................................................10

Figure 4. 1 Depicting the Service offering for BAEMIN food delivery........................................11
Figure 4. 2 BAEMIN customized their menu information............................................................12
Figure 4. 3 BAEMIN special gift for women's order....................................................................13
Figure 4. 4 BAEMIN's hospitality service.....................................................................................14
Figure 4. 5 BAEMIN's friendly envvironment plastic food box..................................................15
Figure 4. 6 BAEMIN's service outlets...........................................................................................19
Figure 4. 7 BAEMIN's rider are trained to speak English.............................................................19
Figure 4. 8 BAEMIN's outdoor billboards....................................................................................22
Figure 4. 9 BAEMIN’s exteriors of bicycles.................................................................................23
Figure 4. 10 BAEMIN's poster on Facebook about Vlive event...................................................23
Figure 4. 11 BAEMIN Gourmet's exclusive items........................................................................24
Figure 4. 12 BAEMIN’s booth at VLive event..............................................................................24
Figure 4. 13 BAEMIN sales promotion for customers..................................................................25
Figure 4. 14 BAEMIN's sales promotion for employees...............................................................26

Figure 4. 15 BAEMIN's website interface.....................................................................................27
Figure 4. 16 BAEMIN application interface on Smartphone........................................................27
Figure 4. 17 BAEMIN application interface for the "Ngọt" collection.........................................28
Figure 4. 18 BAEMIN’s iphone case publication..........................................................................30
Figure 4. 19 BAEMIN’s lunch box and eye mask publication.....................................................31
Figure 4. 20 BAEMIN's sticker publication..................................................................................31


Figure 4. 21 Brand image of a funny cat and delivery man.........................................................34
Figure 4. 22 BAEMIN's discount code..........................................................................................35
Figure 4. 23 BAEMIN’s call to action sentences..........................................................................36
Figure 4. 24 BAEMIN’s first-aid instructions...............................................................................39

Figure 5. 1 BAEMIN should extend to medium cities..................................................................40


LIST OF TABLE
Table 2. 1 BAEMIN’s Competitor analysis.....................................................................................5


Section 1. Introduction
Following the successful acquisition of the Vietnammm.com online food ordering
application earlier this year, BAEMIN officially entered the Vietnamese market and covered
services in Ho Chi Minh City in June 2019, after more than a month of testing this application on
several central areas in the same area.
According to its mission, BAEMIN arrives to Vietnam with the goal of "helping people eat
healthily anytime and everywhere" with only a few easy actions done on the BAEMIN app:
Choose food, locate the nearest shop, and place your order. Your favorite meals will be delivered
swiftly and at a very cheap price.
This report will analyze the Food Delivery market in Vietnam and then compare

BAEMIN with other competitors like Now, Grabfood, Gofood. In the next section, we analyze
BAEMIN target customer and focus on their purchase stage behaviours and positioning strategy
of BAEMIN.
The objective of this report is to analyze deeply into the 7P strategy of BAEMIN food
delivery service, thereby proposing suitable recommendations and solutions for BAEMIN to
develop strongly and sustainable in Vietnam.

Section 2. Market and Competitors Analysis
2.1. Market Analysis and Competitor Analysis
2.1.1. Market Analysis
2.1.1.1.

Market Situation

The food delivery app has improved the ease of the lifestyle while also encouraging Vietnamese
to stay at home to protect themselves from COVID - 19. These applications have been the most
popular way for most urban Vietnamese to make their life simpler. Size: According to Q&Me
Food Delivery Demand increased after COVID - 19 Report, 75 percent had ultilized food
delivery services, with 24 percent being new users who began using food delivery services for
the first time as a result of COVID – 19.

1


Figure 2. 1 Food delivery user trend (Source: Q&Me)

2.1.1.2.

Composition

According to Q&Me Food Delivery Popularity in Vietnam 2020, the proportion of users who
have ordered food/drink accounted for 51%. Popular apps in the market include Grab food, Now,
BAEMIN & Gojek. Grad Food or Now are the two most popular apps.

Figure 2. 2 Food application penetration Vietnam (Source: Q&Me)

2


2.1.1.3.

Location

As the oherding method, delivery apps are the most popular. While HCM use app more, Hanoi
has the higher ratio of social media or telephone orders.

Figure 2. 3 Location based food delivery service (Source: Q&Me)

2.1.1.4.

Trends

As more individuals become accustomed to ordering through mobile apps, the online Food
delivery sector is becoming more vibrant. One of the causes for this rising trend appears to be
“Stay at home, limit contact to prevent COVID -19.” Due to this, Vietnam saw a significant
increase in online Food delivery in 2020 with 1,140,397 discussions. This upward trend is


expected to continue until 2021, with a forecasted value of more than $38 million and an average
growth rate of 11% over the following five years.

2.1.2. Competitor Analysis

TABLE 2.1. BAEMIN’s Competitor analysis

BAEMIN

Customer service (Fast
delivery, friendly staff,
cheap and medium
price range, easy to use)
BAEMIN kitchen: food
directly prepared by
only BAEMIN
S
Trend advertisement:
T Brand ambassadors are
R
well-known to the
E
young such as: Trấn
N Thành, Karik, Amee,
Châu Bùi
G

T
H
S

Easily identifiable

(distinctive dress code
in comparision to other
brands and exclusive
design, font and
character “The Fat Cat”
for the Vietnamese
market)

Grabfood
It has an excess of
human resources as
a result of the
online ride hailing
app Grab.
More Moca wallets
have been
incorporated into
the app for simple
payment.
Operating hours:
24 hours a day,
seven days a week
You gain points for
using the service,
which you can then
exchange for gifts
or vouchers.
Each member is
eligible for a
number of

promotions at
different levels.
When a customer
has an issue, treat it
with compassion
and resolve it.

4

Now
Before making a
purchase,
customers
can read
comments,
reviews, and
photographs.
There is a lot of
restaurant data
out
there, and it’s
emerged in a lot
of
provinces and
cities.
There are
numerous
payment options
available,
including

the AirPay ewallet
and credit card
payments.
Special offers for
each store are
frequently
available.
Bookings for
groups
are encouraged.
Team of
professional
shippers

Gofood

Food search
engine suitable
for individuals of
all ages.
There are many
restaurants to
choose from, so it
should be easy to
find something
you enjoy.


Restaurant selection is
limited.

Foodstore pictures have
W
not yet been fully
E
updated.
A
K
There is no chatbot to
N
solve consumer issues
E
immediately
S
S
Cannot pin your
location accurately,
you'll have to manually
enter it

Offers differ
depending on the
device and the
individual.
It's difficult to find
a customer's
favorite grocery
store.

For certain mall
restaurants that do

not have a
contract, a charge
is added to the
application.

Customers have a
large choice of
restaurant to select
from.

The order is still
being verified,
and the shipper is
still choosing an
order.

The app does not
accept card
payments or ewallets.
Food
photography is
unreal.
Promotions aren't
varied.

Table 2. 1 BAEMIN’s Competitor analysis

Section 3. Target Customer analysis and Positioning strategy
3.1. Target Customer analysis
3.1.1. Demographic

-

Genders: Both male and female

-

Aged: Between 18 and 22, 23 and 29 years old

-

Occupation: University students, part – time workers, full – time office worker

-

Education: Graduated

-

Income: Low (1.000.000 – 2.500.000), Middle income (4.500.000 – 7.500.000)

-

Family size: Single, in relationship, young married couple

-

Generation: Gen Y and Z

3.1.2. Geographic
Living in urban areas, key cities such as Ho Chi Minh and Ha Noi

3.1.3.

Behavioral

-

Reason to buy: Time constraints, discount, desire to save money on trip

-

Pre – purchase stage:
+ Need arousal: they feel hungry after work and they want to eat something for lunch
quickly and time constraints, so they can be on time for the next shift (a need is
recognised)
5


+ Evoked set: They begin browsing for eateries using food delivery apps and compare
between the potential apps and decide to choose BAEMIN
+ Search attribute: BAEMIN created the app with a main color and an easy – to – use
layout for the customers. Furthermore, BAEMIN separates the "healthy" and "sweet"
menus so that customers can simply select the cuisine they desire. The customers also
read some review from others to mke their final decision. These tangible attributes help
customers understand and evaluate what they will get in exchange for their money and
reduces the sense of uncertainty or risk associated with the purchase.
-

Service encounter stage: For the BAEMIN application, the brand has recently linked with
two large e-wallets, ZaloPay and Momo, along with applying many promotions to

encourage payment. This is considered as a plus point for BAEMIN in maximizing the
customer experience on the phone. Furthermore, due to the cute packaging, customer can
took photos of the food and post it into their social media account. . This is a chance for
customer to interact directly with BAEMIN.

-

Post – encounter stage: BAEMIN customers are reasonably satisfied when BAEMIN’s
performance approach or exceed desired levels. Customers therefore will be very pleased,
these customers are more likely to make repeat purchases, remain loyal to that supplier,
and spread positive word of mouth about the good quality of BAEMIN.

-

Benefits sought: Convenient, low cost

-

Usage rate: 1 – 2 times/week

-

Loyalty: Low

-

Occasion of using the product: Lunch, dinner

3.1.4. Psychological
-

Lifestyle: Healthy, Fast – paced living, enjoyable, pleasant

-

Personality: Energetic, Active, Creative

-

Attitude: Realism

3.2. Positioning strategy
Basic Focus Strategies for Services of BAEMIN is Service Focused. BAEMIN mostly
provides meal delivery services. Following a successful one-year launch in Ho Chi Minh City

6


and increased coverage across 18 central districts, BAEMIN continued to expand to Hanoi and,
most recently, Da Nang in 2021.

3.2.1. Image difference
Despite only entering the Vietnamese market in 2019, BAEMIN has quickly become one
of the three most trusted applications among young people, alongside Grab Food and Now. The
image of a funny Fat Cat wearing a conical hat with a riding helmet in a uniform with a pleasant
mint green application interface also draws attention to BAEMIN. Moreover, BAEMIN's
exclusive slogan "BAEMIN nóng giịn đây!" is comparable to the well-known shout on the food
streets of Vietnam ``Bánh mì nóng giịn đây!" which helps customers feel close and trusting.
Furthermore, BAEMIN is also a pioneer in the field of niche marketing. Unlike Grab Food, Now,
or GoJek, BAEMIN launches attractive promotions in each district and quickly captures market

share in that district, rather than launching promotions to attract eateries, delivery people, and
diners across Ho Chi Minh City.

3.2.2. Service difference
BAEMIN understands that customers order food within a 2-3km radius of where they
live and work, therefore the brand concentrates on developing in the central region, attracting
sellers and buyers in limited geographical niches, critical areas, and gradually expanding the
advantages to other areas. BAEMIN drew attention to itself in the Vietnamese market from the
start, not only because of its cute mint green outfit, but also because of its slogan “BAEMIN
nóng giịn đây!” because they want to ensure the highest quality of food, which means that when
the meal is given to clients, it is still hot and retains its flavor. Furthermore, BAEMIN's delivery
crew always calls back to confirm the order, ensuring that the order is confirmed and making
consumers feel more secure.
BAEMIN also offers numerous promotions, with discounts ranging from 50 to 80 percent
off a single order. Unlike some other brands, the deal only applies to a minimum order of a
specified amount and has a maximum discount. Furthermore, because BAEMIN's target
customers are young people between the ages of 23 - 29 so BAEMIN has very trendy call to
action or discount announcements to catch them up with the trends, such as: “Đưa tay đây nào,
order chung bạn nhớ” or “Tâm trạng thế nào, giảm giá thế ấy'' brings a sense of enthusiasm and
love for life.
7


3.2.3. Message difference
Unlike Grab Food, Now or GoJek, BAEMIN delivers messages that emerge for the first
time in the online food delivery industry on a regular basis in order to attract each target client
group. Among these are the campaigns listed below:
Firstly, “Quán ngon quận mình”. BAEMIN launched a collection of "Quán ngon quận
mình" with recommendations for restaurants and eateries near the range of customers' living,
allowing users to easily choose food based on their geographical location, ensuring that the food

delivered is still in the best condition, preserving the taste of the dish, and saving the consumer
from having to spend time choosing.
Secondly, “Thử chút Healthy”. BAEMIN recognizes its consumers' current healthy
eating needs, therefore it has created a second collection called “Thử chút Healthy", which
includes healthy recipes and menus recommended by notable KOLs such as: Châu Bùi, Helly
Tống, Hana Giang Anh,... To improve campaign coverage, healthy drinks such as BAEMIN
invested in modernizing the application interface in conjunction with Music Marketing via the
"Em bé" MV by Amee and Karik.
Thirdly, “Bánh ngọt”. With the message to cherish the priceless sweetness of life itself,
BAEMIN encourages female customers to treat themselves with a little sweetness in the midst of
this busy and chaotic life. The collection suggests popular bakery cakes and treats among young
people. "Bánh ngọt" like the preceding collection, has updated the program interface with two
primary colors pink pastel and mint green colors combined with Music Marketing "Ngọt" MV by
Justatee and Rhymastic to attract many young customers.

3.3. Positioning map

8


More Eateries Linking

Much
Promotions

Less
Promotions

Less Eateries Linking
Figure 3. 1 Positioning Map

Quick delivery

Medium Price

Low Price

9


Moderate delivery

Section 4. Analyze the Marketing Mix strategy
4.1. Product
BAEMIN's aim in Vietnam is to "assist people in eating excellent meals whenever and wherever
they choose '' with just a few easy actions on the app, such as: Choose food, next the nearest shop
and place your order, and finally the meal. Food will be supplied swiftly and at an incredibly low
cost. Whether it's a daily meal or a high-end culinary requirement, a cup of milk tea in the
afternoon or a cup of coffee in the morning; in the most "crunchy" way possible through a series
of restaurants and eateries ranging from popular to high-class.
BAEMIN shares a range of similar supplementary service elements. There are two kinds:
facilitating supplementary services that are required for either service delivery or aid in the use
of the core product, and enhancing supplementary services, which add extra value for customers.

Schedule
shipping
time

Order food
online

Order food
online

Payment
Discount

Through

Core

Code

MOMO
Order food
online

Order food
online

10
Figure 4. 1 Depicting the Service offering for BAEMIN food delivery


Spicialized
menu

4.1.1.

BAEMIN’s facilitating supplement including information, order

taking, billing and payment.
4.1.1.1. Information
To obtain full value from food delivery service, BAEMIN’s customer need relevant information.
When customers use the BAEMIN delivery app to order meals, they will be given menu
information from various stores and restaurants based on their eating preferences. Furthermore,
customers may check up store information, items, and prior customer reviews. Not only that, but
buyers may learn about the shipper.

4.1.1.2. Order taking

Figure 4. 2 BAEMIN customized their menu information

BAEMIN uses Application element to approach their target audience. BAEMIN introduce gift
card for women’s day, the perfect gift for female colleagues.

11


Figure 4. 3 BAEMIN special gift for women's order

4.1.1.3.

Billing

Most of BAEMIN’s target aucdience is university students and office workers who have busy
lifestyles so they hate to keep waiting for a bill to be prepared at a offline outlets and wasting
time later seeking corrections and refunds. By using BAEMIN, the menu of each outlets or
restaurant can be clear and informative so that customer can check the price of the food before
going to purchase. The bills are also shown on the digital platform via the app, eliminating the

need to print them and saving time for customers.

4.1.1.4. Payment
When order food and drinks in BAEMIN app, customers can choose 1 of 2 options: pay directly
in cash to the shipper or pay via MOMO e-wallet.

4.1.2.

BAEMIN’s enhancing supplement including consultation, hospitality,

safekeeping and exceptions
4.1.2.1.

Consultation

On BAEMIN's website, there are very clear instructions on how to order food on the online food
ordering application, making it easy for new customers to better understand when they first
download the app.

12


4.1.2.2. Hospitality
Customers who using BAEMIN food delivery app are given a special gift on their birthday.
Sepcifically, customers must submit their date of birth while registering to utilize BAEMIN's
services. BAEMIN has offered birthday presents to clients who buy food through BAEMIN in
order to express gratitude and appreciation to consumers who have always trusted and used
BAEMIN. The presents are tasty biscuits beautifully packaged in a box, together with really
appealing discount vouchers.

4.1.2.3. Safekeeping

Figure 4. 4 BAEMIN's hospitality service

BAEMIN distributes ecologically friendly plastic and paper packaging, guarantees food
cleanliness, and keeps food warm when collaborating with outletss. When placing an order,
consumers may select a plastic box to contain food 20 eco-friendly containers, as well as a 20%
discount purchase voucher for company owners.

4.1.2.4. Exceptions
When customers express dissactisfaction about low delivery time or the poor quality of food and
drink, BAEMIN make an appropriate to response quickly to solve the problem such as give a
discount code for the next order...

13


4.1.3. How did BAEMIN innovate their service?
They uses Supplementary service innovations by adding new facilitating or enhancing
service elements to an existing core service or of significantly improving an existing
supplementary service. Only BAEMIN supports placing multiple orders at the same time,

Figure 4. 5 BAEMIN's friendly envvironment plastic food box

currently the rest of the applications do not support this feature yet.

4.2. Distribution
4.2.1. Distribution options for serving customers
Determining type of contact: BAEMIN riders visit the customer site. outletss or restaurants
collab with BAEMIN provides food services to a wide array of customers because the need is

location specific.

4.2.2.

Channel preference: For BAEMIN’s target audience, convenience is a key

driver of channel choice
Service Delivery Innovations Faciliated by Technology: BAEMIN has its own website
where provides fully information about the company, service and career opportunities for drivers.
Furthermore, customers can choose the denomination for each card, depending on the card value
that has different uses
100K denomination card: 100K discount on order, card can only be used once; 300K card
denomination: discount 100K on order, card can be used 3 times; 500K denomination card: 100K
discount on order, the card can be used 5 times

14


4.3. Price
The pricing objectives of BAEMIN determine where actual prices should be set given the
feasible range provided by the pricing tripod analysis.
Price Strategy Objective: Patronage and User-Based Related Objective: In the express
delivery industry, BAEMIN is competitively priced, with varied rates for clients and driver
partners.

4.3.1. BAEMIN uses competition – based pricing strategy
Customers are charged the following shipping fees by BAEMIN:
-

Travel distance under 3km: same price 15.000 VND per order

-

For distances of 3kn or greater, add 15.000 VND + 5.000 VND for each addition
kilometer

This is also BAEMIN nonmonetary cost (time cost strategy). Today’s customers often are time
constrained and may use similar terms define time usage as they do for money; for instance,
consumers talk about budgeting, spending, investing, wasting, losing , and saving time. Time
spent on one activity represents an opportunity cost because it could be spent more profitably in
other ways.
Meanwhile, Now and Grabfood’s customer are charged with the following shipping fees:
-

Grabfood: For the first 3 kilometers, the minimum fee is VND 12,000 or VND 15,000,
depending on the restaurant, and VND 5,000 for each additional kilometer.

-

Now: Orders delivered from 0km to 3km are 15,000; orders delivered from 3.1km to 4km
are 18,000; orders delivered from 4.1km to 5km are 20,000

4.3.2. Related Moneytary cost
BAEMIN will deduct 10% VAT from the total shipping income for each successfully delivered
order. BAEMIN receives a 20% discount on the remaining shipping revenue, while Partners
receive an 80% discount.

15

4.3.3. Activity – based cost
BAEMIN have reduced their dependence on traditional cost accounting systems and developed
activity-based cost management systems (ABC), which recognize that virtually all activities
taking place within a firm directly or indirectly support the production, marketing, and delivery
of goods and services. It’s essential to distinguish between those activities that are mandatory for
operation within a particular service business and those that are discretionary. The traditional
approach to cost control often results in reducing the value generated for customers, because the
activity being pruned is, in fact, mandatory to provide a certain level and quality of service.
BAEMIN employs three different types of bonuses:
-

Bonus for high-value units: In Ho Chi Minh City and Hanoi, the driving partner will
receive an additional 5000/order for each successful order with a total value of food >=
150000 before applying the offer.

-

Daily Bonus: Based on the number of orders completed during the day, the driver partner
receives the relevant Bonus.

-

“BAEMIN Đi chợ” Bonus: Partners get an extra bonus if they complete “BAEMIN Đi
chợ” application, with different rewards in Hanoi, HCMC, Da Nang, and currently not
available in Can Tho.

4.3.4. Key categories of rate fences
-

Time of booking or reservation: Night surcharge: The delivery fee for each order placed

after 10 p.m. will be automatically increased by 5,000 per order. (The customer is
responsible for payment.)

-

Flexible delivery fee: When the weather is bad and the order volume is high, BAEMIN
automatically charges clients in the area a flexible delivery fee (ranging from 3000 to
10000 per order).

-

Parking surcharge: BAEMIN charges an extra 5000 parking cost to customers who
reserve at the Trade Center Restaurant.

-

Delivery fee: When placing an order in Ho Chi Minh City, BAEMIN allows consumers to
select "Request delivery" and charges a delivery fee of 15000/order. This charge includes
16