BAEMIN
- a.k.a Korean first delivery app
2022147023 Yoon Hyerin
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
What’s BAEMIN?
Woowa Brothers was established in 2011 for software
development, production, distribution, and service. Its main
businesses include smartphone application development and supply,
advertising platform production, and information service.
- Branding: Umbrella
- Core Competence: “Happiness of Delivery”
- Acquisition&Stimulated Demand
- Market leader, attract new category users, new service
2011 Woowa Brothers Corporation Established
2012 Launching mobile payment service
Main Service of Baemin
2014 Launching self-employed service
10 million downloads, 5 million monthly orders
2015 Launching ‘Baemin-Riders
Shared kitchen ‘Baemin Kitchen’1st open’
2018 Launching Baemin market service, 20million monthly orders
2019 Launching Packaging Order service, self driving serving robot “Dilly”
commercialization
2021 Introduction of Baemin Green, reorganization of app UI
Launching Baemin1
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Position of BAEMIN
Heavy
Economic
- segmentation: delivery + smartphone users
- targeting: 2-30, one or two-person households
Premium
Light
: Baemin achieved product diversity (customization) with two different types
of delivery, and reduced consumer burden by eliminating brokerage fees.
- Main product “delivery service”
: They reduced the perception that “delivery is expansive” by eliminating
brokerage fees, and are still generating profits by upgrading the
advertisement fee system
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Service
Experience
On/Offline events
Official goods
Green marketing
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Service Management
Point 1.
For Service quality management,
: Baemin added a function to inform the estimated delivery
time in order to increase consumer satisfaction which
could be decreased by fluctuating time. Bother consumers
and owner felt the service efficiency increased.
Point 2.
For Customer experience management,
: First, Baemin identified the consumer response that it is
inconvenient to use app with additional services so they
reorganized the app UI and put service introduction on
the main page.
In addition, to overcome the lack of information from the
nature of online orders, they actively promote and
manage review events for each store.
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Price policy
Delivery system
Baemin Riders
Delivery by store itself
Baemin “1”
- delivery fee of using Baemin drivers
- adding brokerage fee to food price
Advertisement system
1) ultra call
: flagging the ad address area
to let my store pop up at the
top of the search box
= 80,000 per flag per month
2) Open list
: ad to ensure my store is
pinned to the top in a
category-based ranking
= 6.8% commission per order
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Pricing Skills
Cost Reduction
- kind of freemium (not free to premium but
economic to premium)
- AI system optimized the ways to deliver to
several household at once.
Price discrimination
- second market discounting: B market
- periodic discounting: depends on discounts of competitors
ⓒSaebyeol Yu. Saebyeol’s PowerPoint
Feedbacks & Future strategy
1
In order to achieve more cost reduction, they can switch
existing delivery service, which requires high labor costs, to
machine delivery. In fact, Baemin is developing serving robots and
deliver robots for commercialization.
2
Baemin has succeeded in securing a huge number of users by
eliminating fees and converting its profits structure to
advertisement fees. Currently, Baemin B Market is holding many
aggressive discount events to take the same approach. However,
it is not easy to promote, so subscription service could be
proposed. (Membership. Charging in advance and ordering)
3
Baemin built shared kitchens to provide rental services to
expand its profit, or sell food materials and packaging to mostly
store owners. It would be effective to expand the main target,
including general consumers. Since it”s common these days to
rent a shared kitchen and cook a high-quality foods for hobbies.
ⓒSaebyeol Yu. Saebyeol’s PowerPoint