WHAT DO YOU KNOW

ABOUT BAEMIN?

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INTERNATIONAL MARKET
SELECTION AND ENTRY
STRATEGIES
International Marketing - Group 9
International Marketing - Group 9

MEMBER LIST
NAME Student’s ID

Tô Minh Đức 2115113060

Trần Minh Khánh 2113153030
Nguyễn Thị Mỹ Phụng 2111113207
Trần Thị Phương Thảo 2111113267
Hà Nhật Anh Thư 2111113275
Hồ Huỳnh Minh Thư 2115113276
TABLE OF CONTENTS
1 2
TWO PROMISING
3
MARKET SELECTION:
GLOBAL OVERVIEW
COUNTRIES INDONESIA AND INDIA

6 5 4
THE MARKETING MARKET ENTRY:
CONCLUSION
PROGRAMME INTERMEDIATE MODE
01
GLOBAL OVERVIEW
OF THE SERVICE AND THE
COMPANY
Business introduction Bongjin Kim
& Team

Baemin: 50% 50%

Woowa DH Asia
● An abbreviation of “Baedal Minjok” Chairman: Bongjin Kim
● A Seoul-based startup
● Operates the most popular food
delivery app in South Korea owned APAC Woowa
by Woowa Brothers Corporation operations Brothers

Bangladesh South Korea

Hong Kong
Laos Vietnam
Malaysia
Pakistan
The Philippines
Singapore
Thailand
Taiwan
 Food delivery service
utilized food delivery service
71.7% from the end of Feb to the
beginning of Mar 2020

15,263
RESPONDENTS
in The Meituan Research Institute’s survey

preferred using online-to-offline

41.6% delivery services to get their
daily necessities during the
COVID-19 epidemic

Section 1: Global overview

 Section 1: Global overview

Food delivery service

Business model

Key players Market valuation, Foundation Life-cycle Classic New

Aug 2016, € million stage delivery delivery

Just Eat 4,620 2021 IPO (2014)

GrubHub 2,950 2004 IPO (2014)

Series I
Delivery Hero 2,740 2011
(2015)

Series E

Source: McKinsey&Company
Deliveroo 1,000 2013
(2016)

Series B
Takeaway.com 1,000 2000
(2014)

Series E
Foodpanda 500 2012
(2015)
 Section 1: Global overview

BAEMIN’s Operating revenue of Woowa Brothers Corporation 2014 - 2021

Globalization
JUNE 2019

began operations
in Vietnam

DECEMBER 2019

acquired by
Delivery Hero

Source: Statista
 Target customers

Gender Primary target Secondary target

25 - 34 years old 18 - 24 years old

24% 67.8%
8 million - 35 million < 8 million/month

Officers and working

Occupation Grads or undergraduates
adults

Section 1: Global overview

 3rd place
closely behind the market leader

21.95%
of the market share discussed

Section 1: Global overview

 The process

DISTRICT 1 DISTRICT 3 DISTRICT 10 OTHER AREAS

Debuted in Attracted Increased Save money

some central buyers and market share in spent on
districts sellers alike each area promotion

Section 1: Global overview

02
OVERVIEW OF

TWO PROMISING
MARKETS
Geographical features

INDIA
- Population: 1.41 billion
- Median age: 28.4
- Gender ratio: 52% - 48%
- Urban population: 35%

INDONESIA
- Population: 273 million
- Median age: 29.7%
- Gender ratio: 50% - 50%
- Urban population: 57%

Section 2: The two markets

 Economic information 7.7

4.33

3.8
2.26

GDP per capita, US$ thousand Unemployment rate, %

INDONESIA

INDIA

Section 2: The two markets

 Distribution channels economy
Indonesia
- One of the most alluring in Asia.
- Although traditional markets still make up the
majority of Indonesia's retail food sales, modern
retail has a sizable part and is expanding.
+ Convenience stores: 36,146 outlets.
+ Hypermarkets: 337 outlets.
+ Supermarkets: 1,457 outlets.
+ Traditional grocery stores: 4,474,316 outlets
Section 2: The two markets
India
- India's retail market worth $883 billion.
- There are approximately 12 million retail
distribution outlets in India, the majority of which
are unorganized family-owned entities.
- A three-tiered selling and distribution strategy
including distributors, wholesalers, and retailers is
used by the majority of Indian firms.
03
MARKET SELECTION:
INDONESIA AND
INDIA
Section 3: Market selection

Why choosing India and Indonesia?

Economy Geographic
Recover after the Asian countries,
pandemic show same as home
potential growth country Korea

Demographic Population
Median age is in Large population,
accordance with the huge market demand
target customers
 Other preliminary-screening criteria
Political stability GDP growth rate 5.7%
- Corruption index Cost of starting a
+ Indonesia: 34 points
business
+ India: 40 points
5.31% 6.9%
- Absence of Violence/Terrorism
7.2%
-2.5 -0.6 -0.5 2.5 Indonesia India measured by % of GNI
per capital

Minimum monthly wage

Indo US$ 288.75

India US$ 65.05

Section 3: Market selection

 Other preliminary-screening criteria
Interest rate, % Corporate income tax, %
- Same tax obligations as a local
Indonesia - Annual revenue < IDR 50 billion:

Higher interest
22% 50% discount from the standard
- gross revenue < IDR 4.8 million:
rate 0.5%

India
No data in the Non-resident / Foreign company
40% rate
deposit interest
Real Deposit Lending
rate

Section 3: Market selection

Section 3: Market selection

Fine-grained screening criteria

Market size, Revenue, GMV, US$ billion CAGR 2023 - 2027, %
1.95
21.30%

INDONESIA 7.92 3.7

19.88%

INDIA 4 24.47 4.2

Market size
Revenue
GMV
 Usage frequency, % of respondents

From left to right:

- Several times a day
- Once a day
- Three to six times a week
- Once or twice a week
- Several times a month
- Less than once a month
- Never

Consumer confidence index

- Indonesia: 122 points (Feb/2023)
- India: 84.8 points (Jan/2023)

Section 3: Market selection

 Competitive conditions

Which brands
dominate these
countries?

Section 3: Market selection

 Economic criteria

Criteria Indonesia India

Market trend Customized food delivery and real-time order tracking

FDI net inflow, US$ 21.36 billion 44.73 billion

Section 3: Market selection

 Digital related criteria
Digital skills among population Ratio of online food delivery app users
43% generation Z
Indonesia 6.1

India 5.9

39% millennials

Individuals using the Internet, % of population 28% generation Z

46% millennials
54% 43%

Section 3: Market selection

Market attractiveness (MA) score

Section 3: Market selection

Section 3: Market selection

Competitive strengths (CS) score

 MACS matrix
Section 3: Market selection
 Decision on market expansion
strategies and market choice

- Using SHOWER STRATEGY

- As the outcome of the MACS grading table,

Indonesia will be our first market to focus on.

Section 3: Market selection

04
STRATEGY TO ENTRY
INDONESIA:
INTERMEDIATE MODES
 Market entry mode:
Intermediate modes

Section 4: Market entry mode

 Internal factors

Firm size International experience

- Employees: ~18,000 - BAEMIN generated ~100 million orders
- Total revenues: 1.1 trillion won (2020) in Q3 of 2019.
- Scale of projects: Asian-wide - BAEMIN Vietnam fulfilled ~1.5 million orders
→ SME in Q3 of 2019.

Service complexity Service differentiation advantage

- Category: soft service. - Focus on rider training.

- BAEMIN’s app service is complex but great - Concentrated on supporting food stores for
user experience. a long-term development strategy.

Section 4: Market entry mode


Sociocultural
- Various similarities in culture.
- Market-based economy for
Indonesia & export-oriented
economic for Korea.
Trade barriers
Customers have to pay additional
taxes on top of duties and value-
added tax in Indonesia regarding
the food delivery sector.
Section 4: Market entry mode
External factors
Risks/Uncertainty Market size & growth
- High risk of environmental hazards.
- Market size (2020): US$1.95 billion.
- Food delivery industry was brought
about by the huge food consumption - CARG 2023 - 2027: 21.70%.
demand.
Competitors intensity Export intermediaries
High number of relevant
Over 20 competitors. intermediaries available due
to the low concentrated
market.
 CAN YOU NAME SOME SIMILARITIES
BETWEEN INDONESIA AND KOREA?

Section 4: Market entry mode

Desired mode

Risk-averse Control Flexibility

Attains powerful Managing orders, High flexibility of
financial capability designing delivery an SME
and a good routes, tracking
ecosystem. orders, and
ensuring on-time
deliveries, offering
greater control

Section 4: Market entry mode

Section 4: Market entry mode
Transaction specific
Tacit of know-how
Food tech operation and
management models are
widely-used, thus no tacit
included
Opportunistic behavior and Transaction costs
Young firm lacking a large
network, entering a not-distant
market, with a large market
entry shares:
- Market entry shares (+)
- Market distance (-)
- Young age (+)
- Network size (-)
 Entry mode chosen: Intermediate modes
ADVANTAGES DISADVANTAGES
● Benefits from synergy: technology, ● Conflicting Work Culture:
management skills, existing the managerial style
database… differs slightly between
Indonesia and Korea
● Flexibility in the rapid-changing &
highly competitive food delivery ● Imbalance in expertise
market of Indonesia level and contributions
● Access to expertise and contacts
in local market
● Joint ventures are very common in
Indonesia
● Generally no problems with
foreign partner will arise in
raising long-term capital from the
international capital market
Section 4: Market entry mode
 05
THE MARKETING
PROGRAMME
 Tactics on Products
Positioning compared to three biggest competitors: GoFood, GrabFood, ShopeeFood
Discounts

High

Low
Target audience
Gen X Millennial Gen Z

Section 5: Marketing program

 Food delivery apps comparison

Low shipping fee

Discounts

Personalization

App experience

Section 5: Marketing program

 Brand equity
1st
Customer satisfaction
The most used app
in Vietnam’s online food
for food delivery orders
delivery market
In South Korea

Section 5: Marketing program

 “Dare 2 Rewear”
BRAND “Love Drawn
By Moonlight''

ASSOCIATIONS
“BAEMIN Zone”
 QUESTION ? 1 2

Which of the following

is the mascot of
BAEMIN?

3 4
 Visual branding
Brand identity
Exclusive set of fonts
Paying attention to
cultural traits

Brand character
The Komodo dragon
as a mascot
Strong and lasting impression
Make users exciting
and more loyal

Section 5: Marketing program

Tactics on Communication and Advertising

Sales promotion: Rebates and discounts

● According to Real Research Media (2021), discount or

reward offers received the highest votes (27.13%) from
the respondents when they were asked which feature
they thought was most important
● Objectives: Attract attention, create a good experience
for existing customers then access new customers to
register and use the service

Section 5: Marketing program

 Section 5: Marketing program

Through push notifications

Promotional code Discounts

Big offer for a Pay though digital banking
newcomer or electronic wallets

More rebates Birthday greetings

When buying a larger For whom sign up for
order cards
 Section 5: Marketing program

Social media marketing

● Increase brand
awareness Facebook (41.6%) Running advertisements
● Increase reach and Instagram (29.2%) (PR articles and short
interaction with Youtube (8.9%) vertical video clips) on
target customers these four social media
Tiktok (8.6%)
platforms
● Improve brand
loyalty

Objectives Most used platforms Method

 Transit marketing: Bus advertising
Objectives:
- Control the exposure of their customers to the advertisement
- Actively reach people with selected demographics and backgrounds

Form Designed banners to stick on the buses driving in the center

Location Jakarta and East Java

Duration 1 month

Budget US$400K

Section 5: Marketing program

06
CONCLUSION
 Actionable recommendations
GOAL 1 GOAL 3
Conduct thorough Optimize app for
research local smartphones

GOAL 2 GOAL 4
Partner with a local Promote platform’s
company unique selling points

Section 6: Conclusion
 Thank you for
your attention!