This statement could be strengthened by top-of-mind public companies such as Tesla (that shifted the automotive industry toward electric vehicles), Google (that delivered the online advertising business model), Netflix (that pioneered subscription-based streaming service), to name but a few. The pro-innovation movement is woven into higher institutions’ curriculum and career orientation programs under the label of “entrepreneurship" However, most of the time, the umbrella term delivers vagueness and estranges those who have yet to work in the field of innovation, which often ironically lies on the receiving side of the education scheme - college students themselves.
Therefore, joining the task force of clarifying “innovation" in the business landscape, VinUni Business Insider has designated its first episode of the Company Case series toward innovation and invention, with an effortful name: Outlying or Outlining? Company Case is a series of reports on firms and industries that are thoroughly researched and delivered by VinUni Business Insider's case writers In this first episode, VinUni Business Insider analyzes five firms in five different industries in Vietnam in an effort of portraying innovation:
MoMo (M Service) - Industry: Fintech
Pizza 4P's - Industry: F&B.
MindX Technology School - Industry: Education.
Vinamilk (Vietnam Milk JSC) - Industry: Dairy products
Biti’s - Industry: Footwear
We hope this will be a crash course, and this preface mimics the role of the syllabus At the beginning of the syllabus, VinUni Business Insiders would love to clearly lay out the learning objectives, not as a compulsory message that binds readers, but act as an anchor for them to effectively navigate through the pages. The purpose of this episode is to promote creativity and courage when college students join the business world and to instill a sense of curiosity and an urge to search for abnormal, yet transformational, traits of businesses surrounding the students in everyday life
"We are living in a time when innovation becomes a desirable trait of a successful business."
This book stems from an idea raised in a weekly club meeting of VinUni Business Insiders in 2022 Shortly afterward, a project was developed in full swing with a vision to provide young students a glimpse into how outstanding moves lead companies to success in different industries. Year later, the first digital version of Company Case was published It took an immense amount of work and it would not have existed without the invaluable contributions of a number of incredibly thoughtful and supportive teams, including:
The Writing & Editing Team is an incredible team with strong skills in writing and knowledgeable understanding of industries We would like to deliver special thanks to Hoang Khanh Linh, Le Phuong Ngan, Nguyen Ha Anh, Le Linh Dan, Lam Nguyen Thanh Thao, Nguyen Quynh Anh, Tang Quynh Ngan and Nguyen Tiet Nguyen Khoi for your hard work and unwavering commitment to the highest quality of your written products. The cases only earn the team’s satisfaction after countless intertwining sprints of writing and editing for months.
We are also indebted to the Designing Team for bringing the plain text into a much more vivid and stimulating form. We owe huge thanks to Nguyen Thuy Dung, Nguyen Quoc Huy, Hoang Mai Ly, and Le Linh Dan for your aesthetic taste and personal style that are sharply portrayed in every page of the book
A very special thanks to Tomorrow Entrepreneur Club from Foreign Trade University for contributing your thoughts and insights via the case study of Biti’s We were deeply impressed by your detailed and analytical account of the company, which enables us to offer readers five case studies that are uniformly at their finest
Pizza 4P's is a pizza company founded in Vietnam, by a Japanese couple Yosuke Masuko - Sanae Tagatsuki From a restaurant in a small alley on Le Thanh Ton street, this company is now present in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, Hai Phong with a total of 24 branches. Originally as a startup, it is now famous for being successful in the fast-growing F&B industry In May 2019, Pizza 4P's completed receiving investment from Mekong Capital's fund. Previously, this restaurant chain also successfully raised capital from Seedcom, Chikaranomoto (who owns the Ippudo ramen restaurant chain in Japan), and Cotto
Despite appearing quite late in Vietnam compared to big brands like Pizza Hut and Domino's Pizza, Pizza 4P's quickly won the hearts of Vietnamese people Freshly-made pizzas from Pizza 4P's have even become a must-try for gourmets. Even during the holiday season, Pizza 4P's frozen pizzas or pastas are also sought after throughout the online market, and many people even gather to sell at a higher price So why are pizzas originating from Italy, created by the Japanese, so popular with Vietnamese people?
For those who have ever visited Pizza 4P's, there is no need to discuss the delicious taste of the pizzas here. Nevertheless, in this article, we will discuss unique factors of Pizza 4P's other than tastes, including: localization, sustainability, and fine-dining concept
A glimpse into the FnB industry:
The F&B (Food and Beverage) industry includes all companies that participated in transforming raw agricultural ingredients into consumer food products Its market consists of fresh/prepared food and alcoholic/nonalcoholic beverages, which are manufactured, packed, and distributed to meet customer demand Examples of the FnB industry include restaurants, cafeterias, fastfood joints, food manufacturing operations, catering businesses, and food transportation services [1]
In 2021, the global FnB market size was worth 5.8 trillion US dollars. The market is predicted to grow at a compound annual growth rate of 87%, reaching 89 trillion US dollars in 2026 [2] In particular, Asia Pacific has the largest market share in the market Within the region, Vietnam’s FnB market was ranked within the top 10 most attractive markets. In 2019, Vietnam reached a total sales of 417 million US dollars, and continued to grow 38% in 2020 [3]
a. Worldwide:
One of the fastest-growing sectors in the FnB industry is the pizza industry. It is undoubtedly one of the most famous dishes in the world According to UpMenu [4], almost 90% of people in America eat pizza regularly Pizza market share is variable, in which there are international pizza chains and local restaurants Major pizza chains like Domino and Pizza Hut contribute up to more than 69 percent of the US pizza chain market share
From this information, people could infer that a well-known chain would be an aggressive, formidable competitor to the small independent pizzeria However, coming to the Vietnamese market, the playground is reversed, with a more balanced position between global chains and locally produced outlets
b. Vietnam:
The food service industry in Vietnam has expanded tremendously compared to ten years ago
Fig. 1. F&B Global Market Value 2022 Summary (The Business Research Company, 2022)
Case #1: Pizza 4P's
According to VietnamCredit (2021)[6], there are about 540,000 stores, more than 400,000 stores are street vendors, 80,000 eat-in restaurants, and about 7,000 fast food restaurants. Food is the primary component of Vietnamese household daily spending, of which 20% is for eat-in restaurants versus 1% into fast food restaurants [6] This shows how niche the market for the pizza industry is.
Despite the niche industry, pizza successfully maintained a “hot serving” for both customers and the investors According to Mr Dinh Hong Son [7], General Director of Finance, there are three reasons that the pizza industry is an attractive one: Firstly, pizza is a world famous cuisine, and as the globalization trend speeds up in a country with such a crowded population like Vietnam, the potential is huge. Secondly, the Vietnamese population is in a young state At this phase, adaptation to global culture is fast This generation could adopt a new eating culture like pizza and maintain the habit until old age, which is a unique point about the longevity of a young market Finally, the average income of Vietnamese citizens is on the rise, especially in big cities like Ho Chi Minh City and Hanoi.
c Competitive landscape in Vietnam:
The appearance of fast food chain Pizza Hut by IFB Holdings (Vietnam) and Jardine Restaurant Group (HongKong) brought to Vietnam in early 2007 shed lights to steeplypriced pizza such as Pizza Inn, Domino Pizza (USA), and Pizza 4P's
Pizza Hut:
Pizza Hut Inc. is the biggest pizza chain in the world, regarding both number of outlets and percentage of market share It is the subsidiary of PepsiCo, Inc, the company owns more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide [10]. Because of the available strength of the name and financial potential of the owner, Pizza Hut has quickly risen and become the key player in the pizza segment in Vietnam. In early March 2013, the company had over 27 restaurants across the country from Hanoi, Ho Chi Minh City, Dong Nai, Binh Duong, and Can Tho They have also established Pizza Hut Delivery that focus on delivery in Hanoi and Ho Chi Minh city
Fig. 2. Top pizza chains' revenues in Vietnam from 2016 to 2019. Adapted from [8].Case #1: Pizza 4P's
The Pizza Company is an international restaurant chain and franchise based in Bangkok, Thailand Focusing on pizza and Italian-American cuisine, it is a subsidiary of Minor International company. In 2013, they opened the first pizza restaurant in Vietnam Along with the trend of development and international integration, this is one of the fastest growing pizza brands with more than 70 restaurants nationwide and has become a favorite destination of many customers
Compared with other pizza restaurants in the market like Pizza Hut, Alfresco, Domino's pizza, according to CukCuk, The Pizza Company's price position and customer is higher by the margin of 20,000 - 60,000 VND This pizza chain targets upper middle-class customers with stable income.
Pizza 4P's:
Pizza 4P's is a Vietnamese company with a Japanese founder that serves pizzas and fusion dishes, first opened in Ho Chi Minh City in 2011 Currently, there are 24 Pizza 4P's restaurants located across Vietnam, including Ho Chi Minh City, Ha Noi, Nha Trang, Hai Phong, Da Nang, and Phnom Penh (Cambodia).
According to Yosuke Masule - the Co-founder & CEO of Pizza 4P’s, the name of the restaurant serves the long-term vision, which is “Make the world smile for Peace". It can be observed that the majority of customers coming to pizza restaurants in Vietnam are young people who like to celebrate birthdays, holidays, anniversaries, special occasions, etc. The habit of having conversations while eating is one of the uniqueness of Vietnamese people
Although choosing Pizza as main dishes, Pizza 4Ps positions itself as a fine–dining restaurant, instead of a fast food chain like Pizza Hut or Domino Pizza. Since the brand strictly controls its supply chain and operation, Pizza 4P’s number of stores are modest when compared to the market However, its growth rate recently has catched up with The Pizza Company and exceeded Pizza Hut in recent years [10] The supporting factors behind Pizza 4P's success in revenue would be further discussed in the next session
Al Fresco's:
Operating in Vietnam since 1996, Al Fresco’s has transformed from the first restaurant serving Eastern European dishes for foreigners into an eatery chain catering for local taste Al Fresco’s current customer base is consisted of 60% Vietnamese diners, 20% Westerners and the rest from foreign eaters within the Southeast Asian region [A] To meet the diverse demand of varying diners, Al Fresco Corporation also expand other brands such as: Pepperonis Pizza for young and price-sensitive consumers, Jaspas for business and luxurious settings and Jacksons Steakhouse for fine-dining experience with imported steaks By 2013, the company owned 33 restaurants all across Vietnam.
Domino's Pizza:
Domino’s Pizza was first launched in Ho Chi Minh city in 2010. After 13 years, the foreign pizza chain has established a presence in seven provinces and cities This is also the first pizza brand pioneered the concept of delivery 30 minutes or less.
Case #1: Pizza 4P's
Timeline
2011
Milestones
First branch launch in Le Thanh Ton &. Established first cheese factory in Da Lat
2017 Achieved a 79% increase in revenue
2019 Received investment from Mekong Enterprise Fund III
March 2020 Launched their delivery service
December 2020 Opened the first Craft Beer bar in Da Nang.
July 2021
First zero-waste restaurant launched beyond Vietnam (Phnom Penh, Cambodia)
Fig. 3. Pizza 4P's development timeline (2011-2021)
Pizza 4P's Milestones:
The past decade has witnessed Pizza 4P’s major development milestones, from its humbling start in 2011 at Le Thanh Ton street to the recent oversea branch launch in Phnom Penh, Cambodia. The table abovee shows the notable milestones of this special pizza branch
Pizza 4P's target market :
a. Demographic:
Their targeted consumer is between the ages of 20 and 45. More specifically, a large customer of Pizza 4P are Generation Y, who were born between 1981 and 1995
Therefore, they are really conscientious, knowledgeable and educated adults, they are academically good students, working in management, administration, higher professional and upper middle class Besides, Pizza 4P's customers are people who spend a lot of time moving from one place to another, such as offices, malls and stores. They definitely have urban style even though some people do not live in the city
b Geographic:
Consumers can come from across Vietnam, but mainly in Hanoi, Ho Chi Minh City and Da Nang city, which are considered commercial centers to expand Pizza 4P's business The target audience comes from densely populated urban areas. Pizza 4P's has opened several well-designed restaurants in these three locations such as in Ho Chi Minh, three in Hanoi and only one restaurant in Da Nang (in 2018)
Characteristics
They are educated white-collar professionals who are interested in reading or staying up to date with news and trends on health issues
They are clearly creating the social impact of the brand and want to do something about it More specifically, they strongly expect the brand to open farmer support centers, use biodegradable packaging, provide college opportunities for employees and work to improve the surrounding community, and attract target audiences that share the company's mission.
They can perceive value not only in quality per unit price but also in the added benefit expected from a product over the brand of the manufacturing company In more detail, they're looking for the ideal combination of the best pizzas (taste, crispness, ingredients, toppings) and 4P's customer services that go even further (the rule) restaurant, menu and table standards, architectural design requirements).
- Print: Food & Wine Magazine, Bliss Saigon Magazine, Food Safety Magazine, Delicious Magazine, Taste, Food & NutrionMagazine
Media Usage
- Others: Intensive use of the Internet including web and social networks (Facebook, Instagram)
- Print: Newspapers (Saigon Times, Vietnam News), Fest Magazine, Parlour Magazine, AsiaLife Magazine Vietnam, TheGuardian, SaveurSupport: Out of home (Street Furniture: grand shopping malls, Transit: airports)- Other: Intensive use of the Internet including web and social networks (Facebook, Instagram)
- Print: Food & Wine Magazine, Fest Magazine, Business Insider, Pizza Today
- Support: Out of home (Inoce)
- Other: Occasionally use the Internet (Facebook, Instagram)
Case #1: Pizza 4P's
d. Pizza 4P's SWOT Analysis:
- Vietnamese-Japanese fusion cuisine
- Large menu selection
- High customer-oriented service
- Customers loyalty
- Product research & development.
- Vietnamese eating habits
- Consumer trend
In this part of the case study, we will elaborate more deeply on Pizza 4P’s two outstanding factors: its quality assurance and commitment to sustainability
Quality assurance:
a. Dishes
a. 1. Menu:
The main reason that retains and attracts customers to Pizza 4P’s is its exquisite menu There are three reasons why 4P’s menu wins the heart of diners: Variety of choices, creative collaboration and extra flexibility.
Firstly, the pizzeria chain offers a wide assortment of dishes, from meat-stuffed pizza to fresh salads, from tasteful appetizers to well-decorated desserts. Diners would definitely find a dish for themselves amid the pyramid of options in 4P’s Menu, which is rarely seen in other chains such as Domino’s Pizza or Pizza Hut
- Weaker brand image
- New comer in the market, less market share
- High price, niche market
- Prioritize product L&D over marketing strategies
- High competition.
- Dilemma between expansion and consistent quality
Secondly, the recipes are the unique fusion between Italian cultures (Cheeses & Pizzas), Japanese elements (Salmon & Seaweeds) and Vietnamese cuisine (Beef & Herbs) Customers could experience a new breeze of dishes Still, they could sense the familiar taste of Vietnamese and Italian food in the modern menu. Lastly, the restaurant adds more flexibility to the dishes options by offering Half-Half Pizza This is a concept of ordering pizza with half different flavor, allowing diners to be more economical and experimental with their own pizzas at 4Ps.
a 2 Hand-made Pizza:
Amidst the “industrial” pizza brands on the market, Pizza 4P’s stand out with an image of “authentic, local-made and hand-made”, which precisely hits the pain points of diners regarding pizzas For customers who have been tired of mass produced, frozen pizzas, pizzas at 4P's are unique for being baked in brick stoves
For eaters who frown on the unhealthy image of pizza, the brand breaks the association with fresh ingredients being carefully sourced from organic fields in Vietnam, Japan and Cambodia The company has their own cheese factory in Da Lat, where they produce mose the cheese that are brought to 4P’s dining tables. They sourced natural sake from Niida-Honke (Japan), bought spices from Ho Tieu and eggs from Cambodian farms [11] These concerted efforts not only draw up a more healthy, safe image of pizzas to the audience, but it also helps the company fulfill its sustainable goals, which would be further discussed in the next section
Rather than investing in marketing and branding, developing delicious dishes are Pizza 4P's main focus Apart from making the main dishes, pizzas, exceptionally good, the company also focuses on enhancing the niche recipes such as crab pastas and burrata salad. So that if customers might not come again for pizza, they are still attracted by pasta and other side dishes, which has successfully worked out
One obvious fact is that diners go to Pizza 4P's for a gourmet dining experience, while they travel to its competitors for a quick meal This special association of Pizza 4P's is attributed to its dedicated service, well-chosen location and clever interior design.
First and foremost, apart from excellent dishes, customer service at Pizza 4P's is unforgettable. Customers are served with a professional attitude like at the finest restaurant: being asked for feedback, being offered special desserts at birthdays, requesting reheating dishes, etc
From the company side, they use P-Score, which is a metrics recording level of customer satisfaction, to rank each branch. Branch with high P-score will share real practice of team management and customer management to other teams to follow [12]
Secondly, location plays an important role in 4P's success At the beginning, being hidden in a small alley on Le Thanh Ton street, Pizza 4P's could retain its popularity to loyal customers thanks to excellent dishes However, when scaling up, fine quality is not enough for the company to attract new buyers Therefore, they started to purchase convenient, expensive spots at popular streets such as Vincom Pham Ngoc Thach, Lotte Center, Landmark 72, Saigon Center, Estella Place, etc Places also help to link 4P's to a premium and luxurious brand image in customers’ mind
Lastly, the interior design sets the brand apart with a luxurious, earthy vibe The company often uses wood and raw materials to create a cozy and sustainable vibe, reminding its customers of their “Sustainability” and “Earth to People" concept. At Pizza 4P's, the space is also for art's sake Each branch has their own theme and meaning, such as “Vượt" theme at Giga Mall highlighting the strong mentality of Central people, or “Art Gallery” theme at Vincom Pham Ngoc Thach underscoring the core - the food
“Omotenashi '' is a Japanese term describing the dedicated hospitality Following the “Omotenashi” mindset, Pizza 4P’s staff care deeply about the customers rather than just merely completing the tasks. When serving at the restaurant, the staff often observe the customers’ dining experience, identify needs and think of how they could better satisfy the customers.
But how to bring “Omotenashi” into the delivery system?
That is the main hesitation of Pizza 4 P’s that explained why the company has not launched its delivery service before the Pandemic It was not until the Covid-19 hit in 2020 that it had to re-think.
Being locked-down, people craved for hot dishes at Pizza 4P’s being shipped to home Seeing this as the opportunity to raise the revenue amidst the Pandemic, the company has partnered with a third party in delivery, which is AhaMove The question that the partnership had to solve at that time was: “How to convey the fine-dining experience via the shipping service?”
Firstly, it is to guarantee the food quality against long shipping time and lack of heat The solution then was to only match Pizza 4P’s order with shippers having heat bags. From Pizza 4P’s side, they add a heating device and resize the pizza box so that the dishes are not deformed during delivery The company also enhanced the pizza eating experience at home with a Spotify list of recommended music
Secondly, Pizza 4P’s is concerned about how it can control the shipper quality from the third party. Ahamove then has customized a SaaS named Wheel for 4Ps to monitor “internal shipper” activities This third-party logistic company also additionally provided a pool of shippers with previously high review scores to 4P’s. Nowadays, around 70% of the orders are delivered by the internal shipper via app OnWheel
Building a delivery scheme for a brand that has a huge focus on quality and service like Pizza 4P’s is complex But it is worthwhile since the endeavor has successfully reduced the average shipping time from 60-70 minutes to 32 minutes [13]
The Pizza 4P's case also revolves around FnB sustainability. Famous pizza places to get the attention of potential customers to gain the most sales, that is why they invest a lot of funds in advertising their business However, Pizza 4P's does not focus much on marketing or advertising fees, instead, they are investing in their sustainability goals They focus on the economic, environmental, and societal (ESG) impact
Even though climate change might be considered one of the most significant factors for sustainability, it is surprising that in Pizza4P's report, it is one of the least impact and less concern [14]. According to ESG issues, there are 14 priority issues for the business, ranking from:
Low concern, less impact: Climate change, Energy management, Water management, Animal welfare, Biodiversity, Community support
Medium concern, middle impact: Diversity & Inclusion, Labor practices, Sustainable sourcing, Packaging, Environmental and social compliance on supply chain, Waste management
High concern, high impact: Healthy food, Food safety.
Among those issues, Pizza4P's focuses on seven main pillars, ranking from middle to high concerns and impacts, which details are demonstrated in the table below.
Case #1: Pizza 4P's
Focus on Delivery & Takeaway, B2C and B2B Packaging. Aiming to use less plastic packed condiments and cutlery and shift to recyclable alternatives such as bamboo, wood, bagasse, etc Have eco-friendly innovation, design, and solutions
Suppliers-guaranteed of not using child labor, or using prohibited or harmful substances Ingredients are from certified food safety producers, most work with key sustainable suppliers to improve local and sustainable sourcing
Natural Resources Include the reduction in electricity, water, wood, and water consumption
Waste
Jar return program, recycling, whey, glass bottles, kitchen oil, recyclable wastes from the central kitchen, and single-use items
Food safety Ensure food quality with certified licenses, avoid critical food safety violations.
Climate change
Vegan food and low-carbon dishes- results from animal welfare and the impact of greenhouse gas emissions from livestock farming Society
Maintains pay equity, fewer turnover rate, and increases ethics and wellbeing value Contribute to enriching the community through pizza workshops, donations, etc
Throughout the years, they publish reports with key detailed information about the companies' performance in the areas of packaging, sourcing, natural resources, waste, food safety, climate change, and society.
Regarding Pizza 4P’s journey to attain sustainability in its company operation, there are two key learning takeaways:
Fig. 5. Pizza 4P's sustainable pillars.a. Key takeaway 1: It's not only about how to reduce the environmental impact of a business, it’s about how organizations can be a force for change.
Yuma Nagata, Co-CEO of Pizza 4P's used to describe being a sustainability officer as “a lonely job" Despite the fact that more and more companies have been focusing on sustainability, there are common constraints that come with sustainability development When proposing a sustainable solution, similar comments are raised such as: “companies can't do things that do not generate profit”, “sustainability is not a priority”, or “sustainability is just a part of marketing”
(Yuma, 2021)
At first, it may be unreasonable for one to accept this conflict. However, this in fact, makes total sense when discussing direction with those in charge must be made first before one proceeds with any sustainablerelated solution. In the case of Pizza 4P's, the co-CEO first tried to persuade the company to use more organic vegetables Since the solution is reasonable but not yet effective in terms of costs and labor, the company sat down with top management and the head of the procurement department to have a further discussion In the end, they aligned on “sustainable food procurement" as one of the KPIs metrics that the business must achieve, they are then working together towards the same force and same visions, things are becoming more effective The story implies that it is not about finding the seemingly appropriate solution, it's about finding the key force for change that motivates us to take further actions.
b. Key takeaway 2: Decision-making on sustainable actions can be made, even if the economic benefits are unclear. This is not to encourage any idea that seems doable without financial backup data Occasionally, it would be easy to make a decision about a sustainable action that will contribute to sales. However, there are many sustainable ideas that cannot be clearly estimated until they are implemented, the metrics are unclear on whether they will increase sales, reduce costs, or increase brand values. Take the case study from the Jar Return Program as an example The program is a reuse program, customers would bring empty jars to Pizza 4P's locations and be rewarded with string cheese and yogurt or pudding.
As the idea creates an attractive incentive, the company is estimated to run a loss in its financial report. Occasionally, in the world of business, such ideas will be rejected right away However, the Chief Operations Officer was willing to try this program He claimed that the program is a great idea to get the customers coming to their restaurants, so even if they lose the money on the jar collection, they can still generate additional sales when customers come to return the jar and dine in According to Pizza 4P's report in 2021 [14], the program received up to 5,000 return glass jars, accounting for almost 10% return rate from B2C customers, contributing to raising guest incentives This also creates a good-feeling sense for the guests, as they know that they are contributing to be a part of sustainable development.
In order to identify Pizza 4P's success through sustainability, it can be seen in Table 2 that the company has tackled the appropriate way to solve current problems Actions such as outsourcing organic local food locally, and reducing food waste require low efforts (compared to others) but have a considerate impact Done right and properly, Pizza 4P's has successfully built a brand image tie with quality control
While Pizza 4P's made significant progress, it still continues to pursue more sustainable actions, leading toward a zero-waste restaurant - which can be resembled by the medium effort but high impact diagram.
Moving forward, Pizza 4P’s is presented with three opportunities yet challenges for every successful food chain: Building ecosystem and franchising decisions
Towards a True Eco-system:
While devotedly contributing to the global ecosystem, Pizza 4P’s is also creating an ecosystem for itself Running an inclusive F&B chain is considered profitable in the long-run.
Therefore, most Vietnamese popular brands such as Highland, The Coffee House are aiming to create their own ecosystem of products and customers. In order to follow the rising trend, the first step for Pizza 4P’s is to invest in acquiring a sufficient customer base, which is within the food chain’s reach due to its caring customer service.
Running an FnB chain is not easy It requires thorough preparation both in terms of human resources and finance One of the common questions that a food chain might face, when reaching a certain level of popularity, is: “To franchise or not?”
Franchising helps chain owners break-even faster and cut huge expenses such as Administration and Customer Management. If the chain owner does not choose to franchise, then it is difficult for the F&B chain to scale up and recover the initial loss spent on marketing and brand management. The brand also faces more severe losses when failure comes.
On the other hand, if the owner decides to build a successful franchise model, it also has to place additional investment on branding and brand management Franchising also demands the owner to work closely with franchisees to standardize processes and images
On the franchisee’s side, purchasing the right to sell an existing brand’s goods reduces risk of building a new brand name. Franchisees are also trained thoroughly by franchisors in terms of operation and management However, regarding the disadvantages, they have to spend a huge amount of budget to hire a franchise. Plus, a franchisor ability to create and innovate old business is also limited by the systematic design of the brand Following a streamline design is also a risk, since each local place possesses its own unique taste and preference. That is the reason why Burger King and McDonald’s failed in the Vietnam market
In short, after the long analysis of Pizza 4P’s in specifics and Vietnam F&B industry in general, the lasting impression is how Pizza 4P’s has differentiated itself from the global players: Its quality assurance and the commitment to sustainability The fine quality is explicitly portrayed from dishes to service; meanwhile its sustainability mission is conducted behindthe-scenes, and, therefore, is expected to surprise readers The story of Pizza 4P's is inspirational for those who are seeking to pursue sustainable goals, or just for those who are interested in how sustainable developments are made in the FnB industry.
Thanks to the renovation policies, Vietnam witnessed a rise in income and living standards, resulting in an increasing demand for dairy products [1] The emergence of the dairy industry is a significant outcome of such a tendency. Recognizing the potential, many companies started to penetrate this new unexplored industry, and Vinamilk is no exception
Hitherto the dominance that Vinamilk attained in Vietnam is an accomplishment that really few companies can achieve. First coming into being in 1976, Vinamilk is now the market leader in Vietnam's dairy industry The company owns the largest automated powdered milk plant in Vietnam, and holds over half the market share in drinking milk [2]. Intrigued by Vinamilk's long-term astronomical success, this case study places its focus on answering two key questions:
How did Vinamilk, a long-established brand, stay up-to-date and maintain its leading position in the Vietnamese dairy industry?
And how can the brand differentiate itself from other competitors?
That being said, a brief introduction about the dairy industry and the company overview will be provided in the first parts of the case Next, two main success factors will be discussed in detail, alongside two famous campaign and crisis
Unlocking the FMCG Industry:
The FMCG sector, or consumer packaged goods (CPG) sector, is a significant global industry supplying low-cost products consistently in high demand These include food, beverages, personal hygiene items, and household cleaning supplies known for their short shelf life and non-durability [3] FMCG examples range from everyday affordable goods like milk, gum, fruits and vegetables, toilet paper, soda, and beer, to over-thecounter drugs like aspirin [4]
In Vietnam, the FMCG industry plays a prominent role in the retail market. In 2021, total retail sales of consumer goods reached around USD 180 billion, with FMCG products making a substantial contribution Over the past decade, the FMCG industry experienced a growth rate of approximately 10-12%. Despite a decline to around 6% during the pandemic, the industry showcased a strong recovery with a growth rate of 19% recorded in the first 8 months of 2022 [5]
Among a wide range of fast-moving consumer goods industries, the dairy business, which includes powdered milk, fresh milk, and many others, has seen consistent growth and significant contribution In fact, in 2020, dairy accounted for 289 percent of the FMCG inhome consumption value in urban areas in Vietnam, making it the category with the highest value contribution [6]
Past:
In the early twentieth century, Vietnam witnessed the emergence of the dairy industry when the French introduced foreign dairy cows in 1920. This marked the debut of dairy business in the region, with Ông Thọ & Dutch Lady products entering the scene four years later However, the dairy industry in Vietnam encountered significant challenges, primarily related to supply and demand dynamics.
On the demand side, Vietnamese consumers lacked a milk-drinking habit, leading to a percapita milk consumption as low as 14.8 liters per year, much lower than China's 25 liters and Thailand's 23 liters This limited consumption stemmed from the prevailing belief that liquid milk was primarily meant for children. Additionally, the lactose-intolerant trait prevalent among Vietnamese further deterred milk consumption, as many individuals experienced difficulty digesting lactose, the sugar present in milk
On the supply side, domestic milk production in Vietnam struggled to meet the demand By 2009, only 20-30% of the total milk demand was covered by domestic production, with the majority of dairy cows (approximately 95%) being raised on a smaller scale at homes rather than on farms This resulted in low productivity, high production costs, and unsustainable milk quality in comparison to many other countries.
In summary, domestic dairy companies in Vietnam faced challenges arising from both low demand, driven by a lack of milk-drinking habit and lactose intolerance among consumers, and supply issues such as unfavorable natural conditions, small-scale livestock production, and inadequate knowledge of animal husbandry and disease prevention
Current and future development:
Despite these challenges, the dairy industry in Vietnam experienced promising growth until 2016, with total revenue exceeding VND 95 trillion. Powdered milk and fresh milk dominated the industry, contributing threequarters of its value The number of domestic dairy enterprises surpassed 60, offering a wide range of 300 brands Investments in livestock production led to a 3% increase in dairy cow numbers compared to the previous year [7]
Even amid the global COVID-19 pandemic, which impacted various sectors, including FMCG, Vietnam's milk and dairy products segment exhibited resilience in 2020 Despite rising unemployment and declining consumer confidence, the industry continued to thrive Key figures from VietnamCredit (2021) illustrate its performance:
In 2020, dairy product sales in Vietnam reached an impressive VND 644 trillion, reflecting a notable 10.3% increase.
Projections indicate that sales of milk and dairy products will maintain steady growth, with an estimated annual rate of 7-8% from 2021 to 2025, reaching a total value of approximately VND 93.8 trillion by 2025 [8]
Within the dairy market, the segments of powdered milk and liquid milk witnessed substantial expansion The General Statistics Office anticipates a 4.5% increase in Vietnam's liquid milk output, surpassing 1,770 million liters in 2021 compared to the previous year [9]
These developments highlight the progressive evolution of Vietnam's dairy sector, moving towards modernity and actively meeting the growing demands of customers, from raw material production to final goods, while also integrating with regional and global markets
The dairy market in Vietnam is highly competitive, with domestic brands and multinational corporations vying for market share. Here are some key players in the market:
Vinamilk: Vietnam Dairy Products Joint Stock Company, founded in 1976, holds a dominant position with a market share of 433% [10] Vinamilk products are not only distributed nationwide through a strong network of 244 distributors and almost 140,000 sales outlets but also exported to various countries including the United States, France, Canada, Poland, Germany, the Middle East, and Southeast Asia
FrieslandCampina Vietnam: Established in 1995 with an initial investment of one million dollars, FrieslandCampina Vietnam has built partnerships with over 2,400 farmer households With rigorous training and evaluation, these partners produce high-quality milk, amounting to hundreds of tons daily
The company has received all four international management system certifications, emphasizing product quality, environmental standards, food safety, and occupational health and safety
Nutifood: Founded in 2000, Nutifood has become one of the leading food companies in Vietnam With a nationwide distribution network, the company has achieved impressive revenue growth of over 250%. NutiFood focuses on delivering goods of acceptable quality, safety, and excellent service at a fair price, making it a trusted brand in the dairy sector
TH True Milk: Established in 2008, TH True Milk quickly expanded its operations by importing dairy technology and New Zealand cows It has gained a significant market share, particularly in the urban retail channels, with a 40% share in the fresh milk category The company has experienced substantial volume and income growth, consolidating its position in the market.
Abbott: A US-based dairy company, Abbott entered the Vietnamese market in 1995. Known for products like Ensure, Pediasure, Similac, and Grow, Abbott competes with Vinamilk in the powdered milk market Both companies are actively striving for dominance in this segment
These market players demonstrate the dynamism and competitiveness of the dairy industry in Vietnam Each brand has its unique strengths and strategies as they strive to meet the diverse needs of consumers and capture a larger market share.
Vinamilk aims to be a trusted global brand in the food and beverage industry, providing nutritious and healthy products with a sense of respect, love, and responsibility [11] Under the leadership of Ms. Mai Kieu Lien, who has steered the company for three decades, Vinamilk embraces innovation and adds value to society and consumers As a spokesperson for Vinamilk, she addresses urgent announcements, ensuring consumer and public confidence. Her exemplary leadership sets the tone for the brand's culture, reflected in its core values of integrity, respect, fairness, ethics, and compliance Through the vision and leadership of Ms. Mai Kieu Lien and the embodiment of their core values, Vinamilk cultivates a culture that promotes integrity, respect, fairness, ethics, and compliance in everything they do
1976: Vinamilk was founded with the name Southern Coffee Dairy Company At that time, the company was completely stateowned with only three factories
2003: Vinamilk's plan of IPO was successful and the brand was renamed to Vietnam Dairy Products Joint Stock Company
2006: Vinamilk was listed on Ho Chi Minh Stock Exchange (HOSE) - a stock exchange in Ho Chi Minh City, Vietnam
2020-2022: Until this day, Vinamilk has been able to be
Most valuable brand by Forbes Vietnam ($2.2B).
Biggest dairy production facilities (15 dairy factories)
Largest dairy cow network (130,000 heads)
Top 50 global dairy producers.
With over 45 years of operation, Vinamilk boasts an extensive and diverse product portfolio that caters to a wide range of consumer preferences Their lineup includes more than 200 products, distributed across 30 countries, and an impressive consumption rate of approximately 18 million products daily. That being said, Vinamilk is committed to providing nutritious products that match international standards and satisfy consumer demands for tasty and healthy products, with up to 12 lines of products: Fresh Milk, Products for Pregnant & Infant, Baby Food, Nutrition products for adults, Spoon Yogurt, Yogurt Drink & Juicy Milk Drink, Condensed Milk, Plant-based Milk, Beverage, Ice Cream, Sugar, and Cheese. Among their range, Vinamilk's leading products include liquid milk, eating yogurt, drinking yogurt, and condensed milk These products have garnered significant popularity and trust from consumers
What sets Vinamilk apart is its ability to cater to different market segments, offering products that span from affordable options to luxury indulgences The company employs distinct pricing strategies for each product line, ensuring accessibility and choice for consumers. Notably, their recent introduction of high-end products has been warmly received by discerning customers This premium collection features Green Farm fresh milk, Organic fresh milk and milk powder, fresh milk with bird's nest, Love Yogurt, Yoko infant milk powder, nutritious beverages for children, and specialized nutritional products for the elderly and individuals in recovery
Vinamilk's commitment to product diversity and quality, combined with their ability to meet varied consumer preferences, positions them as a leading player in the food and beverage industry
Following its establishment in 1976, Vinamilk faced many difficulties including shortages of machinery, equipment, technical workers, and so on Among that, raw materials were the most pressing issue as the company had to import 100% raw materials for milk production from abroad. As such, the biggest question faced by Vinamilk’s leadership team was “How to proactively source inexpensive raw materials, thereby lowering the milk production costs?”
Much to the Vietnam market's surprise, Vinamilk’s answer at that time was to initiate the White Revolution in 1991 Witnessing the challenge that Vietnam's dairy industry was too dependent on imported materials, Vinamilk firmly believed that the only way to overcome it was to start the development of a domestic raw material zone on its own With that in mind, their two main strategies were to (i) build a system of internationallystandardized dairy farms and (ii) nurture the extensive network of farming households to secure cheaper, stable sources of high-quality raw milk.
To build high-quality farming systems, the company has boldly applied innovative technologies to specific geographies of Vietnam and applied the circular economy model to its farming system, with a view to effectively using natural resources throughout the value chain Within those farms, Vinamilk also enhances the quality of local raw materials by implementing worldwide dairy cow husbandry and management standards.
In particular, 10 of the enterprise's 12 farms fulfill Global G.A.P standards, with all breeding cows imported from Australia, the United States, and New Zealand Up to now, Vinamilk has successfully built a total of 14 dairy farms with a total herd of more than 160,000 cow heads, with a daily production of 950-1,000 tons of raw fresh milk, meeting the production capacity of about 55 million boxes of fresh milk per day [12] Vinamilk presently controls Asia's biggest Global GAP dairy farm system regarding farm count.
In addition to the comprehensive development of the dairy farm system, Vinamilk has also been highly active in supporting dairy farmers across the country. Initially, the number of farmers supplying raw milk to Vinamilk was about 30 households, with the average yield reaching 600 kilograms of milk per day. Currently, Vinamilk is managing 83 raw milk collection stations nationwide, with a total herd of more than 94,000 cow heads, supplying over 600 tons of raw milk per day The milk transfer stations, in addition to the main duty of purchasing raw fresh milk, also support farmers in every matter of dairy farming such as feed distribution and after-milking cleaning, technology transfer, and disease control. These functions have been well received and trusted by the local farmers
Thanks to the consistent effort in developing raw material areas, Vinamilk has been able to affirm its leading position in the dairy market and launch its products in more than 40 countries As Ms Lien, Vinamilk’s CEO once said, the current success would not take place if Vinamilk does not place its priority on solving one of the key challenges of the industry - which is raw material procurement as once we can control the materials, we can control the production process and price [13]
Despite its dominance in the Vietnamese market, Vinamilk remains committed to updating its brand and promotional activities
The company's staggering advertisement spending, reaching approximately 24 billion VND per day since 2013, highlights its serious focus on promotion [14]. Between 2016 and 2019, Vinamilk's spending skyrocketed, at times surpassing 55 billion VND per day [15] The first most evident platform is YouTube, where Vinamilk clearly showed its strength in video marketing. Vietnam boasts a high number of internet users, with over 70% of the population actively online [16] and 80% of moms watching online videos at least once a week [17]. Capitalizing on this digital landscape, Vinamilk implemented the renowned "Hero-Hub-Help" strategy, targeting family-oriented video content, particularly for moms
Hero: This is the engagement step when Vinamilk collaborated with popular artists such as Huynh Lap and Thu Trang to produce trending TVCs that attract a large number of Vietnamese audiences Further assistance from YouTube mastheads and TrueView video ads was utilized to make sure the hero content could spread widely Hub: Hub content, which mainly focuses on children-oriented music videos and organic farm series, with the aim of appealing to children and subsequently their moms
Help: The last H-factor is Help, meaning that Vinamilk constantly released videos focused on cooking tutorials and even parenting skills For instance, a tutorial on making ice cream was used to promote Ông Thọ condensed milk, prompting viewers to consider Vinamilk's products when making ice cream
While the core idea is really simple, the effect was remarkably impressive. In 2018, Vinamilk became the first CPG company in Southeast Asia to attain one million YouTube subscribers by leveraging its video content strategy
According to Google, the company's YouTube channel also achieved 575 million views and a 141% increase in total video views just in 365 days [17]
With Facebook, in 2021, Vinamilk executed a cross-channel campaign with three ad sets: one with photo advertisements, another with 3-second video commercials, and another with 10-second video ads [18] As a result, the brand discovered that its Facebook campaign outperformed TV and other digital media. A 23% rise in awareness and message association was also recorded after the Facebook campaign [18]
Recognizing the rising popularity of Tiktok, Vinamilk incorporated this platform into the launch of its new Delight line of ice cream Specifically, the brand launched the #VuDieuDelight Branded Hashtag Challenge, featuring captivating branded music and an easy-to-learn 'Flavor Tornado' dance They also collaborated with famous TikTok Creators to reach a larger audience and demonstrate how to recreate the dance [19]. The campaign exceeded expectations, drawing over 71,000 young users and 114,000 videos in just six days
Thanks to its smart and dedicated focus on social media marketing, Vinamilk has proudly amassed nearly 2 million subscribers on YouTube, over 677,000 followers on Facebook, and over 194 million video views on TikTok. This strategic approach has not only boosted brand awareness and visibility but also resulted in increased sales for the company
Vinamilk's impactful "40 Years Rising Vietnam" campaign, launched in 2016 to commemorate its four-decade journey, exemplifies the company's ability to foster trust and resonate with the nation's development Building on their long-standing commitment to improving children's health, Vinamilk utilized a popular music video, titled "Rising up Vietnam," as the centerpiece of the campaign The emotionally evocative video showcased Vietnamese children in white and blue costumes, radiating hope and optimism. Distinctively, the campaign focused on eliciting emotions and empathy rather than overtly promoting Vinamilk products The music video garnered widespread attention, accumulating 5 million views on YouTube and achieving almost nationwide coverage. Vinamilk strategically collaborated with renowned singers and key opinion leaders (KOLs), such as Toc Tien and Miu Le, for social media promotions, employing a natural and genuine approach to convey the campaign's message
To reinforce their commitment to society, Vinamilk established a special Milk Fund that provided 40,000 glasses of milk to underprivileged children in 40 challenging provinces across the country (Figure 1) This initiative aligned with the company's overarching goal of ensuring that "Every child can drink milk every day" in Vietnam.
Notably, the campaign succeeded in rebuilding consumer trust during a time of wavering confidence in domestic products. By constructing a meaningful, long-term message and delivering it at the right moment, Vinamilk demonstrated its dedication to a trusted brand image The campaign's key takeaway is the importance of creating a genuine connection with the public, emphasizing shared values and aspirations, and ultimately solidifying the bond between Vinamilk and the Vietnamese community
In the post-pandemic landscape, addressing the evolving needs of the aging population in Vietnam has become imperative for consumer packaged goods companies like Vinamilk With 124 percent of the population projected to be aged 65 and above, equating to 13 million potential customers, the senior segment presents a significant market opportunity Notably, this age group's purchasing power is expected to experience the fastest growth at an average rate of 5% per year from 2018 to 2030.
To tap into this attractive market, Vinamilk must understand the unique preferences and behaviors of elderly consumers, who prioritize health and exhibit heightened awareness of natural, green, organic, and additive-free nutritional products Consequently, Vinamilk's research and development efforts should focus on creating new offerings that cater to the comprehensive nutritional needs of this aging demographic The company has already launched products specifically designed for this segment, such as Vinamilk Sure Prevent and Vinamilk Diecerna, targeting sleep quality, heart health, bone strength, and diabetes management
However, the competition in the elderly dairy products market is intensifying, with prominent brands like Abbot, Fonterra, and Nutifood continuously introducing trusted, high-quality offerings To gain a competitive edge, Vinamilk should employ advanced analytics strategies to gain deeper insights into the key value drivers for these target consumers
These insights will inform strategic decisions across innovation, marketing, pricing, and product assortment, enabling Vinamilk to capture a larger share of the market and unlock its growth potential
By aligning with the evolving preferences and needs of the elderly segment through targeted product development, market research, and strategic decision-making, Vinamilk is poised to thrive in the competitive landscape and secure its position as a leader in the aging nutrition market
To sum up, this case has illustrated the journey of how Vinamilk, a well-established company, could achieve the leading position and consistently maintain it over time by tackling the right challenges at the right time Thanks to its long-standing commitment to raw material development and early-stage, continuous investment in the marketing side, Vinamilk could maintain its leading position in the domestic market over time and get ready to gain a foothold on the world production map With its fast-growing capabilities and determination, Vinamilk is believed to pursue greater goals and achieve new heights in the near future.
Following the hit of the pandemic, Education Technology (EdTech) is becoming an attractive industry that lures a great number of investors, ranking just after FinTech and Ecommerce globally [1] Vietnam’s EdTech is no exception: the urgent need for distant learning and teaching revealed by the Covid19 pandemic has resulted in an explosive growth for the industry, which is forecast to value up to 3 billion USD by 2023 [2]. The market has never been more dynamic and competitive than it is now, with around 290 players spanning across different niche markets [3]
Among many rising businesses and startups, MindX Technology School emerges as a representative of the EdTech industry First established in 2015 as a non-profit organization whose vision is to bring technology education closer to Vietnamese people, the school has now attracted over 35,000 learners via online and offline platforms and has been present in 13 locations. Eight years later, the company’s success has been well proven by the considerable amount of 15 million USD investment despite a recent global funding winter This significant accomplishment that has allowed MindX to prove its firm standing in the EdTech field comes from two key factors: (1) Tailored service to varying customer segments and (2) strong connection with industry partners
First of all, as long as passion for learning and applying technology for the common good are demonstrated, MindX welcomes learners from all ages, locations and financial backgrounds Second of all, MindX attracts learners by its distinctive support for employment opportunities after graduation.
This article’s key objectives are to dive deep into MindX’s inspiring journey from first being a nonprofit organization to a million dollar startup in such a potential yet challenging field. By examining the EdTech industry, MindX’s development history and analyzing its customer attraction tactics, the author will then go over three challenges that MindX might encounter in the future in the face of increasing competition, business expansion and learners’ interests Throughout the article, the author makes use of various business concepts, such as unique value proposition, company positioning, and businessto-business (B2B), to give an in-depth analysis of MindX With lessons being further specified in the conclusion, the article is expected to be a helpful learning resource for students wishing to know more about the EdTech industry.
What is EdTech?
Education Technology (EdTech) is a field that integrates information and communication technology tools, such as computer hardware and software, into the classroom setting to facilitate teaching and foster more engaging, inclusive and individualized learning [4]
Recent years have witnessed the rapid growth in the Edtech sector, especially in the postpandemic era where distance-education technologies have become more advanced and learners have become more accustomed to online learning
a. Past:
2006 marked a turning point of Vietnam’s Internet era with the introduction of Twitter and Facebook’s news feed, which completely transformed the way people interacted, absorbed news and observed their surrounding world [5]. Within the same year, Vietnam witnessed some of its first movements away from the traditional teaching style, including hard-paper textbooks, to a more modern one that applies the Internet, forming the basis for new online learning communities This marked the birth of the EdTech industry in Vietnam in 2007
HOCMAI, established in March 2007, became the pioneer in this budding field. Nevertheless, this educational organization had a rocky start with its online services, Hocmaivn Back then, Vietnamese people were too familiar with the traditional learning methods, unready for a new wind. Furthermore, learners have not yet been fully trained for self-studying Coupled with other common challenges of a startup such as lack of funding and human resources, the development of virtual learning platforms and their delivery to users were challenging tasks that the first EdTech player was confronted with [6]
The EdTech industry again witnessed an unprecedented turnaround because of the Covid-19 pandemic in 2019 After roughly 10 years of plateau development, the industry experienced booming growth as the pandemic forced all stakeholders in the education field to move online, shooting up the demand for online teaching and learning
In other words, 2019 marked a rebirth of EdTech, opening up paths for numerous new players, investors and transformative initiatives
Much as EdTech is a young industry, it is growing at a breakneck speed. By 2020, there have been 109 EdTech startups working across 11 niche markets [7] By 2022, the number rose to 260, comprising mostly startups and business-to-consumer (B2C) businesses [3]. The market capitalization value of the EdTech industry jumped to 3 billion USD in 2020 due to the rising popularity of online learning, up from 2 billion USD in 2019 [8] A report on Vietnam’s EdTech, conducted by EdTech Agency in collaboration with OCD Management Consulting, vividly demonstrated the enormous current potential of the industry, which is attracting huge investment value of more than 20 million USD and ranks among the Top 10 fastest growing EdTech markets globally
Besides, the country has high rates of cellphone possession and Internet connection, making it a highly potential country wherein technology is developed. Other primary reasons include an overwhelming young population structure, competitive human resources, and supportive legal frameworks
c. Future:
The future of EdTech is extremely bright, with numerous growth opportunities This dynamic and evolving market is expected to value at 3 billion USD by 2023, with an annual double growth rate of around 20,2% during 20192023 [10] Currently, there exist potential niche markets for new players to enter, such as online-merging-offline (OMO) and B2B (business-to-business) However, in the future, competition would become fiercer Market entrants involve not only domestic players but also foreign ones from countries that have made great strides in technology, which will call for real breakthroughs from Vietnamese companies
The term MindX refers to an ecosystem that comprises of three subsidiaries:
a. MindX Technology School:
As the first and most important product offering of MindX, it is the first-ever technology school that provides personalized and high-quality learning roadmap for students of all ages, ranging from those in primary school level up until university students and current working people The school teaches a wide range of the most upto-date subjects, including web and application coding, UI/UX design, artificial intelligence, data science, and so on Students can either choose short-term courses or take on long-term education pathways to be guaranteed jobs after graduation.
For the sake of this case study to be in-depth, further analysis of this article will focus solely on MindX Technology School – the core product of MindX.
b MindX Co-working Space:
Located in two big cities, Hanoi and Ho Chi Minh, MindX Coworking Space is where over 200 startups and venture firms such as Wefit, Ninja Van, Nextrans Capital,… rent space for their offices [11] It is this coworking space that has given MindX learners a great advantage when it comes to real-world applications and job searching, and create a strong startup ecosystem, according to founder Ha Nguyen.
Lastly, MindX Technology is a branch company that specializes in providing learning management systems for educational institutions and digital transformation solutions for enterprises [11] This sector of MindX helps the company earn its title as “EdTech" firm, since part of it operates by offering technological services and products to educational institutions.
a. Milestone 1: Establishment (2015)
Originally TechKids Coding school, MindX is a technology school founded in 2015 by Ms Ha Nguyen, Mr Tung Nguyen and Mr Huy Nguyen. The trio shared a similar middle-class, traditional family background; yet what distinguishes them is their shared passion for technology and long-held belief in the lifechanging power of technology education MindX’s mission is to solve the evident lack of qualified engineers and coders in Vietnam. Its vision is to educate and bring out the best engineers, inventors, and entrepreneurs who follow their technology passion and create positive impacts for the society where children are taught the most up-to-date skills of the 40 era, including coding, robotics, 3D, VR/AR, or video making
At first, TechKids (later MindX) was a nonprofit educational organization with the sole dedication to providing coding training to Vietnamese students, addressing one of the greatest challenges of the country. Because of this business model, MindX’s founding team faced a number of difficulties in early days regarding lack of highly qualified instructors, low budget, poor learning facilities and difficult attraction of new students. At this infant stage, the team’s main strategy to engage the first learners was to approach well-educated parents with medium to good financial condition. Because technology education was not too popular in 2015, choosing this niche market was considered a wise move as parents from upper middle income class and above tend to have far vision and believe in the future potential of technology, therefore letting their children be the first “puzzles' ' of MindX
After more than 3 years of operation, MindX has made many impressive achievements. The school had recorded more than 3,000 batches of students, with the youngest one being 8 and the oldest one being nearly 70 A quarter of MindX’s graduates were working in the field of technology in over 15 countries globally, including America, Canada, Australia, and so on Remarkable as those numbers were, MindX’s team was ready for a new wind
The founding team aspired to become a miniature version of Silicon Valley – where thousands of top-notch technological masterworks are innovated With a hope to avoid misunderstanding about the brand and to build a truly different, unique learning model, the founding team made the decision to change from TechKids Coding school to MindX Technology and Startup school. This new development chapter will focus on not only bringing out the technology passion in learners but also hone a “startup mindset” where various skill sets are delivered
Some of the first noticeable activities by MindX during these periods include special programs such as X Jobs – connecting students and businesses, Global Developers –educating global coders with the first destination being Singapore, marking one of the first big moves of MindX in its educational objective
In November 2021, MindX successfully raised 3 million USD funding in series A Although the school has received funding previously in 2019, this is undoubtedly an important milestone. The pandemic has evidently made clear the increasing attention to education, especially online education When it comes to education, patience and belief need to be intertwined. The product – which is learners’ achievements and results – cannot be measured within just days or months, but rather many years Therefore, EdTech startups normally demand greater time and resources, human and financial, and at least 5 years to assess their suitability to the market. This long-term result poses a challenging problem for venture firms, who have to wait equally long to gauge the effectiveness of their funding. Therefore, MindX’s success in raising such a large amount of funding has marked the true leap of growth of MindX since it first changed from TechKids and demonstrated its potential during and beyond pandemic times
The funding is crucial in that it helped MindX achieve further scale-ups and bring education closer to more students By the end of 2021, the school recorded a total of 13 locations and 25,000 learners via online and offline training platforms [12]. Furthermore, MindX’s team has also initiated the “Study now – Pay Later” learning program, which allows learners with poor financial condition yet strong technology passion to pursue education first and pay gradually after they graduate from MindX
This one-of-a-kind approach, although risky, was greatly facilitated with the new funding and made considerable strides in advancing equal educational opportunities.
On April 12th 2023, MindX raised $15 million USD in a series B funding round, led by the education-focused private equity fund
Kaizenvest One year after the last series A funding round, the company has tripled its scale with 32 branches all over Vietnam Its selection has been diversified, ranging from Blockchain coding to UI-UX design With the new injection of cash, MindX intends to expand Vietnam’s digital talent pool by expanding its product and service portfolio, hybrid learning environment, and data-driven systems It also aims to connect Vietnamese tech talents with employers in other nations, such as the US and EU This master plan is reasonable, considering the company's current network with over 200 businesses in Singapore, Australia, Thailand and other nations
Within just 7 years of operations, MindX has achieved so unrivaled milestones and successes that Ms Ha Nguyen, founder and COO of MindX, claimed that it was almost impossible to believe MindX started out as a non-profit organization [14] Hence, this analysis offers possible explanations on key success factors that have driven MindX’s growth from a not-for-profit organization to a million-dollar startup, and then provides possible recommendations for future development paths.
First of all, MindX offers a wide range of courses that cater for different learners: from primary school students to professional employees. The youngest student so far of MindX is 8 years old, as opposed to the oldest one who is nearly 70 Differing from traditional institutions where students have to follow rigid curriculum, MindX extensive courses selection allow learners to enroll in any level that fits their needs. The main products in its course portfolio are now divided into two main segments: For kids and for adults Courses for kids include Robotics, Programming and Digital Art; meanwhile, options for adult learners involve Full-stack website development, data analysis, UI/UX Design, Product Management, and Software testing
Second of all, MindX goes to great lengths to make sure that all students can receive technological education, irrespective of their financial background Introducing new payment method “Study Now - Pay Later", the company supports underprivileged learners throughout the courses, until they can make salary based on their IT skills and pay back tuition fees However, there are noticeable risks: students can either give up halfway, or refuse to pay off when they are financially capable To eliminate these possibilities, candidates are thoroughly interviewed, based on three criteria: learning passion, perseverance and an aptitude for programming. During the learning period, there is an individual assessment review for every two months Students who show a positive attitude and result will continue to be supported. “The key point of the businEss plan is that we have to precisely calculate the risk and compute the profit versus loss from the beginning" Ha explained
The move has distinguished MindX itself from other competitors in the market by deliberately proving the team’s efforts in creating meaningful social impacts and making technology education more accessible to more students Although the initiative is considered risky and involves careful planning in many aspects, it is MindX’s strong belief that high-quality education reaps worthwhile long-term results and builds a better society that will weather them through difficulties
Ms. Ha Nguyen firmly believes that MindX can connect students to jobs abroad with a salary of up to 100 million VND a month This guarantee is made possible due to two external factors: Firstly, from the supply side, Vietnamese young people have potential to quickly master technological skills, which gives them an advantage in both local and global labor market Secondly, from the demand side, the need for technology human resources is constantly increasing, especially in Singapore - one of the technology innovation centers in the region
Recognizing the opportunity, MindX actively builds a strong network with recruitment partners The company currently has about 200 human resources partners domestically and internationally With the classroom model
“Little Silicon Valley'', MindX has invited a number of technology startups, companies and venture funds from which students can do internships, establish connections, participate in comprehensive development programs and get recruited after graduation. Thanks to the team’s resilient efforts to establish high-quality partnerships, many MindX alumni have been present at large multinational corporations such as Google, Shopee, Chope, and so on [13].
Almost 100% of graduates secured employment after graduation from MindX This is also a win-win situation for the company. By introducing jobs at foreign market to students, MindX also sustains an additional income channel from the referral fee to its partners
The foremost problem facing MindX is how to balance between upscaling and quality That is, as MindX grows and branches out, its numbers of registered students, hired employees and established partnerships also witness substantial increases In order to grow rapidly and sustainably, it is crucial that all these stakeholders’ experiences with MindX are paid close attention to. MindX needs to ensure a high-quality and diverse source of its workforce, including teachers, that is talented, committed and carries the spirit of the startup Furthermore, with the current reputation, the school might consider establishing further connections with like-minded partners, which include foreign technology schools or Vietnamese startups and companies Not only does further collaboration enhance MindX’s awareness and recognition but more importantly, it also achieves the goal of providing first-rate education to learners Students are open to more opportunities of on-the-job training and professional development and accessible to world-class educational standards
As the EdTech industry gets more dynamic and even much more competitive, MindX should not focus on its competitors but rather focus on strengthening its current unique value propositions, which are currently well distinguishing MindX from other counterparts
MindX has done well in its strategy of diversifying its source of income from MindX Coworking Space and MindX Technology However, since MindX school still contributes to the vast majority of revenue, the team can also consider improving MindX Technology, which provides business-to-business (B2B) services Schools and universities are now making use of more technological tools within the classroom due to the pandemic, and they are demanding more unique and disruptive technology solutions to address the human resources gap and provide more diverse EdTech solutions for students. Therefore, this can be considered a potential niche market in which MindX Technology can enter
By analyzing in detail the case of MindX, we have come to see not only the enormous potential of EdTech in the future but also how a startup roars to success in this especially challenging playground
MindX has left meaningful lessons for students and entrepreneurs who wish to enter the EdTech industry The story of MindX is the journey of the heart harmonizing with the mind. The heart lies in the founders’ obsession with learners and their strive to bring the best, most unique and sustainable educational value With the heart, the growth mindset follows and guides the team in all phases of startups. It is the mind that is present in all people of MindX - embracing unprecedented challenges, opportunities and approaches and ready to go forward Through sharing of Ms Ha Nguyen, learners can realize important rules of thumb in the world of startup: success favors ones who survive longer, and ones who set eyes on process, not destination
For all these reasons, MindX deserves to be a game changer in the EdTech field With its rough beginning unlike any others, to its achievements that reflect vividly the team’s one-and-only commitment to learners, MindX is promised to flourish far and beyond
MoMo e-wallet is developed by M Service - a Vietnamese FinTech company founded by 4 Vietnamese people After having been struggling and lacking resources for about the first 7 years, MoMo finally became one of the most successful and commonly-used ewallets in Vietnam until now with over 30 million users and 50 thousand financial partners. In 2019, MoMo was honorably the only Vietnamese representative in the top 50 FinTech innovators around the world listed by FinTech100
Among a large number of e-wallets in Vietnam, many people wonder how MoMo could develop strongly as it was despite its initial struggle during the first 7-year period Momo’s journey started with zero users and recorded 3 times changing its business model before landing its Unicorn title. Until today, Momo prides itself on being the first “homemade” E-wallet that is specially tailored for Vietnamese users However, the competition has never been restless for MoMo, considering other big players with inherent competitive advantages So what support the success of this billion-dollars startup? Will MoMo be able to maintain its leading position? This case contributes to unveiling these questions by providing a dive into the company profile and its future intention
What is FinTech?
FinTech stands for Financial Technology, which is commonly applied to all companies that use the internet, mobile phones, cloud computing technology, and open-source software for the purpose of improving the efficiency of the delivery and application of financial activities. FinTech consists of 4 main modus operandi [1]:
FinTechs as new entrants, start-ups, and attackers (such as SoFi, TransferWise, LendingClub): seeks to penetrate financial services using a new technological approach, often targeting niche markets The challenge for this group is the customer acquisition costs.
FinTechs as incumbent financial institutions (such as Wells Fargo, Ping An): use technology to improve performance, respond to competitive threats and capture investment and cooperation opportunities
FinTechs as ecosystems orchestrated by major technology companies to enhance existing platforms and capitalize on existing user data or relationships (eg, AliPay supports providing payment services for Alibaba's e-commerce activities)
FinTechs as infrastructure providers to support the digitization and improve risk management and customer experience of technology infrastructures Target customers are usually financial and banking institutions. Example: FNZ, Marqeta, Onfido
Vietnam is experiencing a boom in digital payments and e-commerce Currently, Vietnam is ranked third in ASEAN in terms of FinTech financing, attracting over 10% of the region's total FinTech investment [2]. However, the number of FinTech companies in Vietnam is still significantly lower than in other ASEAN markets like Singapore, Indonesia, and Malaysia. Vietnam currently houses nearly 200 FinTech firms [3], increasing fivefold compared to 2015 These FinTech firms offer a broad range of services including digital payments, wealth management, P2P lending, blockchain-based solutions, etc In terms of transaction value, the Vietnamese FinTech market also showed an impressive increase, from $44 billion in 2017 to $144 billion in 2021 [4]
E-wallet and digital payment activities account for the largest proportion (31%) in FinTech services [6] This is due to the large population, Government support toward a cashless economy, and high mobile usage rate in Vietnam
There are 43 organizations that are not banks that have been licensed by the State Bank (2021) to provide intermediary payment services; of which over 40 have provided ewallet services to the market. On the customers’ side, in the context of the Covid-19 epidemic, Vietnamese consumers are gradually choosing to use e-wallets as well as contactless payments and payments with QR codes. Among these, 57% of consumers [7] have up to three e-wallet apps on their phones, 55% of consumers prefer an app that can make all transactions [8] With a significantly high proportion of the unbanked and underbanked, Vietnam remains largely an untapped market and a promising land for FinTech investors
The E-wallet market in Vietnam is absolutely fierce, yet starts witnessing the first signs of market consolidation The playground is currently dominated by Big3 players: Momo, ZaloPay and ShopeePay with their unique competitive advantage.
Momo is considered the pioneer with their vision of a cashless economy in Vietnam With their strong brand presence especially among young users, MoMo is the E-wallet with the highest percentage of regular users (61%) [9] As an independent e-wallet, Momo’s success comes from its superior delivery of key functions, such as fast transactions and a wide acceptance network Earlier in 2021, Momo witnessed another milestone when they officially became the 4th Unicorn startup in Vietnam after their successful fundraising in Series E.
As for ZaloPay, this e-wallet’s aggressive acquisition strategy by offering a myriad of promotions has clearly been effective, as most users turn to ZaloPay for its convenient payment services (fast, accepted at many retailers) and promotions With its inherent users from Zalo - the leading messaging platform in Vietnam, Zalopay is also a promising candidate competing in the Ewallet market. By integrating it directly on Zalo, users can benefit from its in-app payment and transaction feature
M Service is a technology company (30-35% of total investment is for technology) with super application products currently targeting customers are Vietnamese Gen Y, Gen Z and small and medium-sized enterprises (SMEs). MoMo focuses on 2 key points, which are ecosystem and customer experience, while the focused feature of the application is transferring money. MoMo provides users with several all-in-one functions
Paying bills or services. Users can pay electricity, water, internet bills, buy tickets for cars, planes, trains, movies, or buy goods on e-commerce platforms.
Paying personal loans and insurance
Pay to FE Credit, Home Credit, Shinhan Finance, Prudential Finance
Paying shopping bills by scanning QR code. Currently, there are 140,000 points accepting payments via MoMo Buying data, phone card, game card. MoMo applies a 4% discount on phone recharge, 10% on all 3G/4G data packages. In addition, users can also buy game cards, phone cards of Viettel, Mobifone, Vinaphone, Vietnamobile, Gmobile networks with diverse promoting policies.
ShopeePay as an e-wallet for e-commerce shopping is most used by consumers for promotions and convenience in making online purchases As e-commerce is emerging strongly in Vietnam, ShopeePay has an advantage with its consumer ecosystem, not to mention its solid investment from the holding company - SEA group. ShopeePay reminds us of Alipay, a successful E-wallet developed by Alibaba However, whether the E-wallet’s future follows Alipay remains unsure.
Transfer – Withdrawal. Transferring money, withdrawing money to more than 20 affiliated domestic banks, recharging from ATM domestic card via NAPAS gateway of all banks and international debit cards such as Visa, Mastercard, JCB. Furthermore, users can deposit and withdraw money at Circle K, Ministop, Viettel Post, F88, FPT Shop, and more than 4000 transaction points worldwide. Offers. There are several discounts for MoMo’s users, refund policies as well as free services
Automatic reminders
on time. Reminders are made every time a payment is due as well as allowing recording and transaction statistics to manage budget easier. vision and mission is to become a super app in Vietnam and reach at least 50 million users, promoting the retail industry and the digital transformation of the Vietnamese economy with many breakthroughs. With the super app, MoMo e-wallet will help partners solve revenue and expense problems through technology In particular, MoMo facilitates small and single partners (such as small merchants, street vendors, startups, etc) to "Goonline" to sell and pay online The super application of MoMo Wallet with the integration of Big Data technology, AI... developed by MoMo, can help partners understand and approach customers in a deep and accurate direction, not only at the right time, but also at the right time, the right message. This will help partners reach millions of new customers at a lower cost, while providing better and more effective customer care
a Establishment and first appearance:
Starting as a Startup, in 2007, M Service Company was founded by 4 founders: Nguyen Thi Minh Hien, Nguyen Ba Diep, Pham Thanh Duc, Nguyen Manh Tuong The idea was rooted in a quite vague and general thought, which was to provide a product or a service that can help people pay their shopping bills through mobile phones. It was nurtured by the fact that people are using mobile phones more and more throughout time Therefore, M Service was founded with a feature of mobile recharging service.
In October 2010, MoMo wallet brand appeared on the market as a linking service between the Vinaphone network with banking systems, allowing mobile subscribers to make payments and transfers right on their devices. However, each subscriber using MoMo's e-wallet service must pay a fee of 5,000 VND per month and an additional 200 VND for each separate transaction. Furthermore, MoMo was established in the context that 80% of Vietnamese people did not have bank accounts Citizens in developing countries, in general, were not familiar with professional financial services such as saving, transferring money, and investing. Nguyen Manh Tuong
one of the co-founders of M Service –admitted that the application could run, but there were no users due to the impact of under-development of technology on customer experience and distribution [10].
By 2013, after a long way to overcome the initial difficulties, this time due to the availability of a network of hundreds of thousands of transaction points, plus links with telecommunications carriers, the transaction point system of e-wallets, MoMo technology quickly spread into provinces and cities It became an effective extension arm of commercial banks when acting as an intermediary to sell microfinance products and services such as collection of electricity, water bills, and chemical payments, purchase orders, pay directly at the supermarket, pay for airline tickets, pay for taxis, apply for consumer loans [11] Plus, M Service decided to invest in writing a dedicated application for mobile phones, attracting the first strategic investor, Goldman Sachs Global Investment Bank with USD 575 million [12] It has set the stage for the next bigger steps of M Service and the MoMo app.
From June 2014, MoMo appeared on the app store for Android and iOS phones respectively, becoming the first e-wallet with a mobile version Hundreds of thousands of downloads put MoMo in the group of 5 financial apps with the highest number of downloads for phones After that, MoMo's user growth rate increased exponentially At the same time, a series of MoMo offices appeared in Hanoi, Da Nang, and Ho Chi Minh City. At that time, MoMo's growth increased by 20% - 30% compared to the initial stage, attracting more investors [13]
In 2017, MoMo stepped up to partner with commercial banks – something it had not done successfully before – and financial companies to include MoMo wallets in deferred consumer lending services By expanding the network of transaction points, MoMo quickly attracted millions of customers to register and use accounts Currently, MoMo wallet has built an ecosystem that meets most of the essential needs of more than 23 million customers with more than 20.000 business partners in fields such as consumer finance, insurance, money transfer, payment, entertainment, e-commerce, shopping, transportation and food service, charity donation [14].
Leading the market with 0 initial users - how has MoMo managed to acquire its millions-worth customer base?
a. Choose easy-to-remember slogans, leaving a strong impression on customers.
With the desire to maintain its leading position and outperform competitors in the same category, MoMo has made its familiar features more special and different with the Money Transfer button and the slogan “Chuyển tiềnMoMo liền" (Transfer money - Instant MoMo)
This message shows MoMo's ambition in occupying the Top-of-mind position in the eyes of consumers, putting the name of the brand and product associated with the verb "transfer money". Indeed, the phrases “MoMo đi", “MoMo nhé" (let’s MoMo) are increasingly popular and used by Gen Z young people in daily life This is also a right step in MoMo's Branding strategy, helping the brand win the sympathy and trust of users.
b. Raise awareness through attractive Promotion activities
MoMo's strength also includes marketing and promotional activities such as "Shaking lucky money - Shaking a golden pig to receive lucky money", "MoMo Payment Festival - Super cashback saving up to 50%. It is the attractive promotions, cashback programs, and the introduction of outstanding, breakthrough, convenient, safe, secure and economical payment features that the MoMo super application is becoming more and more popular and attractive.
c. 4P's marketing campaign
MoMo uses several campaigns on 4Ps (product, price, place, promotion).
i Product:
As having been mentioned, MoMo e-wallet integrated a lot of features all-in-one It can be said that MoMo is gradually improving itself to become a potential super app. The services that this brand provides are very close to the user, and are the individual daily utilities that everyone needs With an excellent product strategy, MoMo has succeeded in attracting and retaining customers
ii Price:
MoMo meets the criteria of good quality at an affordable price. To put it simply, managers have adopted an intrusive pricing strategy.
The goal of this strategy is to entice customers to try new products and strengthen market share in the hope of retaining customers, while limiting the risk of price competition from competitors in the same segment. Currently, MoMo only charges fees for 2 services: withdrawal and cash transfer at MoMo transaction points The applicable fee schedule ranges from 8,00035,000 VND or 0.6% of the transaction value.
With a wide presence, covering all consumer needs, MoMo has gradually been in the subconscious of the citizens.
To promote its products, MoMo did not hesitate to spend heavily in advertising campaigns such as TVC on national television stations (VTV1, VTV3 ) In addition, this brand also effectively uses the social platform with viral clips. Cooperating with potential young musician Bui Cong Nam, MoMo has released a song with a fun, easy-to-remember melody that is deeply ingrained in the audience's subconscious. In addition, MoMo also cooperates with KOL, quality influencers to convey messages such as Dieu Nhi, Long Chun, Minh Du, Mac Van Khoa, etc This campaign is very effective when the viral wave has not shown any signs of slowing down, making a strong impression on the target audience
Having used effective marketing strategies to acquire new users, it is the large ecosystem with proper customer services that retain those current customers There are 2 main components that helped M Service to build such a complete ecosystem.
a. MoMo is the first e-wallet in Vietnam
Being the first player in the e-wallet market, M Service had the advantage of introducing, connecting, and co-operating earlier with banks and other partners Indeed, MoMo has 30,000 business partners, connects with 32 domestic and international banks in Vietnam, provides services for more than 90% people with bank accounts across the country [15] Especially, the “Finance – Insurance” service has attracted 10 million people out of 31 million current users after 4 years establishing MoMo [16] The reason behind this is that MoMo has more than 70 financial partners [17] Also, MoMo is the first unit to build connections with supermarkets, F&B points, taxis, air tickets – hotels.
b. The affluent funds helped MoMo to generously bring its plan to play
It could not be denied that the capital invested in MoMo is significantly crucial as it is the foundation for M Service to execute projects and expand to other features or larger scales. In 2016, M Service announced a $28 million investment from Standard Chartered Private Equity and Global Investment Bank Goldman Sachs, with a total investment of $28 million. MoMo said the new investment ($28 million) will be used to strengthen MoMo's presence nationwide, develop services and expand the ecosystem
Warburg Pincus Private Equity Fund Management Company invested in M Service in January 2019 MoMo did not disclose the investment value but said that this could be said to be the highest number so far of foreign investors investing in Fintech and Ecommerce in Vietnam According to MoMo leaders, this money will be used to expand the payment ecosystem and realize the desire to develop millions of payment acceptance points nationwide.
It can be easily seen that the 4 founders of M Service are persistent business makers Although they had to endure 6 years of no success, wearing out their resources, they still continued their initial idea so that it could be as developed as the present Also, they are brilliant businessmen who seized the opportunities at the right time There must be an accurate judgment of the market movements in order to make such punctual decisions
b. And the dynamic, active, gifted current employees
In the context of the year 2025, financial demand in Vietnam is expected to continue to grow strongly when the 40 revolution is booming. As a matter of fact, Vietnam's young future generations also become more invested and involved in this field MoMo, as the ranked e-wallet in Vietnam, also focuses on developing this potential human resource With over 16,000 staff including 600 technical engineers, their creation, non-stop learning, teamwork, and excellent execution played an important role in creating today’s M Service [19]
Independent working environment, freedom of research and challenging goals, affirming Vietnamese intelligence are the two factors that attract such talents Currently, many of the leaders of MoMo have studied and worked in foreign companies for many years, attending great schools such as Chicago, Harvard, Yale, Stanford, OxfordMoMo also provides several learning opportunities for their staff. Working in the company, the employees are trained in English, functional training (Product Foundation, Project Management Fundamentals, Train The Trainer), and other online training courses [20].
In the medium and long-term development strategy, technology is determined to be the "core engine" for MoMo's growth and AI is the key component: Customer Care and Customer Experience, language processing nature and computer vision, business growth, growth and discovery, advertising, and building platforms for ML and experimentation to expand the use of big data and AI Starting to invest heavily in AI/Data since 2019, MoMo has widely deployed AI on its super-app platform, such as: Product recommendation system, offer distribution, protection user. In addition to internal applications, MoMo is currently expanding the integration of its AI solutions into products associated with MoMo external partners. One of the products currently being highly appreciated by partners in the financial/banking industry is the eKYC solution, in which, in addition to popular features, MoMo has integrated a lot of anti-counterfeiting features, risk identification based on our experience and unique database
In recent years, it is clear that the demand for online payments is increasing To explain this we need to consider the shift between generations of consumers. Gen Z is gradually becoming the dominant system of the labor market, so they will be the key consumers in the near future According to Nielsen, gen Z surveyed said that they have a certain influence on shopping and living decisions for the family [21] For this generation, they are often quick to accept change and development, especially technology With the conveniences that e-wallets bring, gen Z quickly changed their payment habits, leading to a significant increase in usage demand Vietnam's $340 billion economy is also smaller than that of Indonesia, as well as that of Thailand and the Philippines. But investors say Vietnam's fintech market is particularly attractive for a number of reasons Vietnam has one of the highest rates of mobile phone usage in the region with about 74% of the adult population [22]. That combination has created fertile ground for startups that want to provide financial services via smartphones
Towards the goal of developing the digital economy and digital society, the Vietnamese government has set a target from 2021 to 2025 In which, the value of non-cash payments is expected to be 25 times higher than GDP by the end of the year 2025, equal to 50% in the e-commerce floor, striving to achieve growth of 20-25% per year [23] In order to achieve this, the authorities have addressed some solutions regarding both state agencies and commercial banks Indeed, regulators have moved to support the FinTech economy, typically handing out ewallet licenses to dozens of companies.
Seeing the potential of the e-wallet market, many businesses have begun to "jump into the game" with the desire to gain market share. Only e-wallet service providers, so far, more than 30 businesses have entered this fertile market Although Momo's main competitors only revolve around names such as Moca, ZaloPay, Viettel Pay, smaller providers are also launching many attractive promotions to attract users Therefore, Momo still needs to be careful to help come up with a reasonable strategy
It can be said that this is not a small challenge for the FinTech field. Indeed, when it comes to payment methods via e-wallets, many people are concerned about their safety and are more used to using cash on hand Although there have been no serious cases so far, e-wallet users can still face some risks such as losing money, fraud or stealing personal information In addition to external factors affecting, customers also face the risk when the internal system has an error causing payment interruption.
Throughout the article, we have gained information about the past, present, and future of M Service company with MoMo ewallet, mainly about previous milestones, current position, and future prospects Also, the background information and some speculations about MoMo in the future are also given.
MoMo deserves to be considered as a typical case of start-up, from the primary stage of establishment to the grab at precious opportunities, and then comes to the position of the number one e-wallet as it is now.
It has left valuable lessons for students and start-ups in this field about the ordinary difficulties that they must experience, how to deal with, and what the core value of success is. MoMo is the combination of fortune and lucidity, of the talents and management board so that it can start from zero, but be at hero and still have a lot of capability in the future It has been the game changer in the FinTech industry and is expected to create another game-changer application in the near future with more technological advances and better meet the growing needs of customers: Early entrant, funding and effective marketing and promotion that targets the right customer segment. [Reference
Case #5: Bitis
Marketers and customers in Vietnam are no strangers to Biti's Hunter advertising campaigns, however, most people do not soundly understand their meticulous and patient re-brand strategy. Old but unyielding, weak but daring to dream and change, the relief of this company is certainly worth your time to read, think and learn from it This article will provide an overview of the footwear market and Biti’s situation in Vietnam, as well as answer your question about how and why this company becomes outstanding among a thousand manufacturers and re-born as one of Vietnamese customer favorite brands. Furthermore, you can look for a deeper discussion about future development predictions of Biti’s in a young but fastidiousbecoming market like Vietnam
International integration in the 20th century forces Vietnamese local brands to face numerous global competitors, especially in the fashion industry, where change and creation are the only way to survive. There are several reasons for the loss of local brands in their own market, however, “no difficulties, no discoveries”, Vietnamese constantly strive in the journey of overcoming adversity is undeniable. Growing from failures and national depressions, Biti’s, an old but strong company, did accomplish an incredible journey not only to survive but to transform and rejuvenate its 40-year-old brand
Vietnam is the third largest footwear manufacturer in Asia (after China and India), and the fourth in the world. Vietnam's leather and footwear export volume is also second only to China Every year, Vietnam exports more than 1 billion pairs of shoes of all kinds to hundreds of countries around the world In particular, Vietnam’s footwear export to the European Union (EU) accounts for the most significant proportion of the total export turnover With a population of nearly 100 million people, Vietnam’s domestic footwear market has always had potential. This is evidenced by the fact that in 2018, the number of leather shoes consumed in Vietnam reached 190 million pairs, equivalent to 1.9 pairs/person/year.
This figure is expected to continue to increase in the near future due to the increasing income and demand for footwear products among Vietnamese people. In March 2021, footwear exports were estimated at 1660 million USD, up 198% compared to March 2020 Revenue in the Footwear market amounts to US$174bn in 2022 The market is expected to grow annually by 7.32% (CAGR 2022-2027). The leather and footwear industry is said to be prosperous when it has taken the initiative in 70% of raw materials for leather shoes in the medium segment, and 50% for products in the mid-range segment.
The shift of leather shoe factories and orders from China to Vietnam is also the reason why Vietnam will become the world's footwear factory in the near future[1]
It can be seen that Vietnam's leather and footwear industry is developing through the above numbers Shoe brands in Vietnam are also extremely diverse Athletic shoes or what we usually call sneakers, have been popular for many decades ago and so do in Vietnam. According to 2019 data, Nike is the world’s top manufacturer and supplier of athletic shoes; however, in terms of online word-of-mouth, Adidas still won the heart of Vietnamese netizens by earning over 4,400 WOM in 2019 Q4 It is then followed by Nike and Lacoste with 3,273 and 1,815 WOM respectively While Nike still relies more on China for its production, Adidas has shifted its manufacturer to Vietnam due to cheaper labor costs, which may bring an advantage for Adidas to easily engage with Vietnamese consumers.
Moreover, the trend of Adidas Superstar that has been released in the market for quite some time has recently come back among Vietnamese youths, which successfully boosted the discussion volume. The Chinese brand “Li-Ning” has ended in failure in the United States and even in its own country, China However, Li-Ning has successfully gained popularity in Vietnam and has received many positive reviews from netizens towards its products.
It is worth mentioning that Biti’s, the not-soyoung local footwear brand, has successfully got into the top 10 most buzzed shoe brands in Vietnam’s list. Biti’s was founded in 1982 and now has become one of the leading footwear companies in Vietnam Its products are not only commercialized in the domestic market but also exported to more than 40 countries. Their newest arrival, Biti’s Hunter has enticed many young people, due to its aesthetic and trendy design [3]
Binh Tien Production HTD Co Ltd is committed to constantly improving the quality of product supply to meet the increasingly high and diverse requirements of customersjust as the meaning of Biti's brand "PrestigeQualified" From year to year, Biti’s top priority is to build long-term trust for all customers
Nowadays, Biti’s has become not only a strong domestic brand but also a leading Vietnam footwear exporter to the world market Their products are currently available in more than 40 countries around the world, including a number of highly demanding markets such as Italy, France, the UK, the U.S, Russia, Japan, South America, China and Mexico The vision of the company is to become a powerful manufacturer of consumables in Asia
According to Mr. Vuu Khai Thanh – General Director of Biti’s, the company will keep on both maintaining the leading position in Vietnam and proactively reaching out for international opportunities [4]
1982: Established Van Thanh GroupDeveloped from family-owned footwear production with a long history, Van Thanh Group (consisting of 20 workers) was founded by Mr Vuu Khai Thanh and his wife to make and export footwear products to Eastern European countries and the USSR under the goods exchange program.
1986: Merged with Binh Tien Group - Mr Vuu Khai Thanh and his wife took over Binh Tien Group in 1986 and merged it with the existing group as Binh Tien Rubber Cooperative. The company then focuses on producing a variety of high-quality footwear products to serve the domestic market and export to Eastern Europe and Western Europe
1990: EVA Technology from Taiwan - Seeking to enhance the quality of products, Mr. Vuu Khai Thanh and his wife decided to go to Taiwan to learn new technologies They later invested in the procurement of machines from Taiwan – EVA foam rubber footwear with the best quality ever.
1992: Officially renamed Biti’s - In 1992, within the renovation period of the country, the company was officially renamed Binh Tien Imex Corp, Pte., Ltd. or Biti’s.
The early 2000s: The appearance of high-end footwear brands such as Nike or Adidas has taken over the market. Gradually, young people form the stereotype that Biti's is "out of time", or is only interested in the elderly who have been used to purchasing habits since the difficult subsidy period In order to be able to fight the cycle of elimination, Biti's faced challenges of overcoming the long-standing mindset of the Vietnamese that only trust imported products and doubt the quality of domestic products In these years, Biti’s struggled to refine its glory in the footwear market
2016: The return of “legend” - Biti’s made an impressive comeback by launching the new campaign “Di de tro ve” and collaborating with famous singers: Soobin Hoang Son and Son Tung MTP In just a few days after the MV was released, the name Biti's has been mentioned more by young people on social networks than in the past 10 years combined. Since 2016, "di de tro ve" has continued to write the story with the performance of other artists, including Huong Tram, Phan Manh Quynh, DaLab. Although it did not resonate as much as the first MV, Biti’s still successfully left an indelible mark on the audience with several ways of exploiting unique insights on Tet such as: Just needs to be home on Tet, no matter where you are, being with your loved ones means Tet.
2018: Biti collaborated with Walt DisneyMarvel’s mother company on a collaboration that included sports shoes and slippers that take inspiration from the company’s superhero character After Marvel, they continued to collaborate. Biti worked with Pepsi to create a shoe line for the World Cup 2018 This project helped Biti’s to work alongside some of the biggest names in the sport such as Lionel Messi
2019: Carrying the mission of honoring the national identity, Biti’s launched a campaign called “Proudly Made in Vietnam” As a result of the Covid-19 epidemic, consumers’ expenditure on fashion, which included all of Bitis's items, drastically reduced in 2019. However, Biti’s considered this as an opportunity for people to slow down and look back at the “origin”, and that “origin” was found in Vietnamese national culture.
As a matter of fact, Vietnamese footwear brand Biti’s is not a young company but their comeback in 2016 in this competitive industry is a beacon for local footwear brands The family’s second generation, Vuu Le Quyen and Vuu Le Minh are making the Bitiss philosophy of “tender care for Vietnamese feet” relevant to the younger generation After a period of absence from the market, by mid2016, the Vietnamese brand returned with a product completely different from what people used to remember about Biti's: "The Brave hunter" - Biti's Hunter
After months of researching, Biti’s found great potential in developing sneakers for Vietnamese youngsters. In an interview with Vietcetera, Biti’s brand manager Nguyen Phu Cuong shared: “Vietnam has been rapidly developing economically in recent years The 9x and 10x generations are switching to local sneakers from global brands because sneakers are a very personal thing
They strongly represent the style of the person wearing them. Research showed that the Vietnamese sneaker market was divided into three sectors Firstly, are international labels like Nike, Adidas, Vans, and Converse This sector is the most costly and primarily foreign-dominated. Second, there’s the middle sector or mid-range We found this segment has relatively few players This sector caters to people who want authentic brands over fakes, but who are not willing to invest so much in a premium pair. Finally, there’s the low-end This consists of either knockoffs or cheap local brands - with no guarantee of quality This helped Biti’s to realize that the Vietnamese market still yearns for locallyproduced sneakers at an affordable price, with high-quality production, and beautiful designs And that is how Biti’s Hunter came about” [5]
Taking young people as the inspiration for the breakthrough, along with the campaign "Di de tro ve" combined with singer Soobin Hoang Son and very subtle but fairly unique product placement (PPL) in the MV "Lac Troi" by singer Son Tung M-TP, Bitis’s continued encouraging young people to experience, broaden their horizons and bring Vietnam to the world Moreover, Biti's listened to the liberal breath of the cultural extremes of Saigon - Hanoi associated with each piece of young people's unique characteristics Old but new, familiar yet strange, Biti's brings the footsteps of young people into harmony with the rhythm of street life, living under cultural extremes to find their own extremes “Di de tro ve” was no longer simply the name of the campaign that re-affirmed the extremely successful brand name, but also echoed the sound of "tireless footsteps" for returning to grow stronger than ever before In this campaign, Biti’s also collaborated with microinfluencers - people with a modest following of between 1000 and 3000 people, but who have deep connections, strong bonds, and constant communication with their fans Micro-influencers play a prominent role in promoting conversations about “going out and experiencing Biti’s Hunter.”
The spreading of the Covid-19 pandemic in 2019 leads to a significant reduction in consumer spending on fashion, which includes all of Bitis’s products. However, this is also a precious opportunity for Vietnamese brands, as national pride is triggered and Vietnamese consumers tend to focus more on “Made in Vietnam” products. This social construct presented a unique opportunity for leading local sneaker brand Biti's Hunter to champion local pride, enhancing its brand imagery and increasing sales
Biti’s Hunter: ProudlyMadeInVietnam focuses on Vietnamese youth who have an innate pride but can't define what specifics about Vietnam make them proud Inspired by Vietnamese humble upbringing and life, adapting and thriving in any sort of living conditions, Bitis cooperates with other Vietnamese brands such as Canifa, Boo, Minh Long, and Thien Long to release a special collection designed by Vietnamese optimistic and resilient stories during the Covid-19 names Canvas of Pride This collection receives enthusiastic support from artists (Hương Giang, Thanh Bùi, Đông Nhi, Ông Cao Thắng), creative communities, Vietnamese youngers, and global reputable news channels (about 380+ articles are posted by Bloomberg, Business Insider, Yahoo Finance News, BBC, Campaign Brief Asia… about this campaign). Each story will be modeled on Biti's Hunter Street Black Line shoes and available for pre-order on Biti's website The 4 most pre-ordered designs will be produced in reality so that the story of Vietnamese pride goes further with every customer’s step. Otherwise, 10% of revenue from actual products will be used to contribute more to Biti's fund, in order to support units directly in contact with infected people and suspected infected people, as the request of the Government
An interesting idea and effective marketing plan brought Bitis 33 million views for the viral clip and more than half a million shares across social platforms – more than any of its Western counterparts Thousands of people join and discuss this topic, 2.5 million interactions, and 50.000+ pre-orders were made in less than 2 weeks for more than 100 works from over 30 artists and creative communities across Vietnam Biti's Hunter Street accounted for a 33 percent sales contribution of Biti's Hunter and 12 percent of total Biti's sales domestically The campaign transformed Biti's Hunter's imagery into Vietnamese youth’s Top of Mind (TOM) about cultural products and marked a new milestone in this local brand’s history, as well as proving the strong vitality of Vietnamese brands in the 40 digital transformation revolution
In most of Biti's hunter media campaigns, the most used type of source is 'people'. And the most used message factors are verbal vs visual messages and emotional ones Furthermore, ProudlyMadeInVietnam was born as an imperative national milestone, which significantly contributed to the massive influence of the campaign The right time, the right slogan and the right influencers are 03 of the numerous factors that contribute to the success of Biti’s. However, several creative ideas from a hard-working marketing team in the miserably hard rebrand position are also undeniable
This catalog is inspired by the battle costumes of the three most important superheroes in Avengers: Thor, Iron Man and Captain America. The technology of Biti's Hunter X Marvel Tribute - Team Tech is also welldeveloped on the basis of the 2K18 version The Evolution: Higher - Quieter - Cooler
Biti’s “handshake” with Marvel and Walt Disney - Marvel’s mother company (in mid2017) spread Biti’s name globally and significantly left a positive impression on young customers This collaboration opens up more opportunities for Biti’s, as well as support for the release of Avengers Infinity War which was launched in April 2018 In addition, the type of source of Biti's Hunter x Marvel is “animated spokescharacters” and the message structure is a verbal vs visual message.
Biti's Hunter X Marvel is an example of Biti’s customer understanding, younger people with a huge passion for superheroes, and the want of having a “cheap moment” with idols. By following customers’ footprints on social media, community, and online discussion, Biti’s find out the younger generation's favorite of showing their personality and ego through custom and shoes. The specially designed shoe collab with an effective trade marketing strategy in retail outlets brings Biti’s huge wins on both online and offline selling channels. 750 first shoes were sold in the first open period, marking a potential development for the collaboration between local and global brands
Thanks to the unstoppable effort of Biti’s, Biti's Hunter X Marvel was born in the “gold” moment when Marvel and superheroes movies are at the customer's top of minds The encouragement to change, to re-position and catch the trend are key factors leading to the success of this campaign
Taking quality to be the primary value
Biti's experienced a period of declining market share and "outdatedness" in the eyes of consumers while growing and developing the brand
Biti's was well-liked for its superior product quality and reasonable pricing prior to 2000, when the footwear market had numerous restrictions on style and buyers' minds solely revolved around the philosophy of "solid food, durable wear." become appropriate. Additionally, Biti's may serve consumers of all ages However, when the Vietnamese economy opened up in the 2000s, wellknown foreign brands and the many cheap Chinese products that were available forced Vietnamese brands to compete. Despite having outstanding quality, Biti's lacks a wide selection of designs and models In the meantime, Biti's still makes a mark of quality in the minds of Vietnamese people. Biti's footwear goods bring back memories of childhood, especially for millennials As a result of their personal product experience, when Biti's officially released Biti's Hunter with contemporary shoe styles, the millennial generation was reminded of a time when Biti's was resounding
When a customer invests money on a pair of sneakers, both comfort and style are equally important Customers are eager to acquire Biti's products since they already come with a quality assurance, and now when there is a touch of fashion, they are even more so Without having "quality" as a guiding principle, Biti's will struggle to win back consumers in today's cutthroat market, and it will take a long time to persuade customers
If we pay close attention to the recent successful campaigns of Bitis, it is not difficult to realize that Bitis is targeting a young user base and gradually coming out of the old Bitis's shadow The association with young artists such as Soobin Hoang Son, Son Tung MTP, Viet Max, and the Proudly made in Vietnam products has proven that orientation.
Conquering Gen Z and sticking to the pride of Vietnam
Bitis's board of directors should be credited for having such a breakthrough and courageous vision Over many generations of users in Vietnam, the image of the Bitis sports shoe has certainly been imprinted in many people's minds. Although it already has such a market and potential customers, Bitis' ambition does not stop there Bitis's leadership team are those people who are most clearly aware that the tastes of Vietnam's shoe and footwear product lines are gradually changing, they need a pair of shoes that can not only walk and run but also have to be suitable for the times and express their own nature That's why Bitis's leadership team decided to renew the image of a series of Bitis shoe products, and at the same time launch new campaigns to catch up with the times such as Going to Return, Bitis Hunter x Marvel has just told above They dared to innovate, be creative, and adapt to the times. Bitis's tireless footsteps are leaving impressive marks on the Vietnamese shoe market
Biti's identity is also influenced by Vietnamese culture and people because she was born in the Vietnamese market In the summer of 2018, Biti's Hunter released The RED Pride Special Edition, which beautifully captured the boys of the Vietnamese football team's presence in the 2018 Asian Games. Early in 2020, amid the unrest brought on by Covid19, Biti's released "Vietnamese Canvas of Pride," a version of Hunter Street that was influenced by accounts of the struggle in Vietnam against Covid-19. The next Biti's Hunter Street x Vietmax 2020 collection also features elements of Hanoi's culture
In October, 2021, Biti's launched a collection called Blooming Central to honor the cultural beauty of Central Vietnam The commercial footwear showcased a collection created from innovative investment, finding here a wide range of materials and a wide range of manufacturing power
However, Biti's new product quickly became a topic of discussion when a user discovered that the brocade material on the shoes was a popular Chinese product, which can be purchased on Taobao (Chinese e-commerce platform) with prices from 40,000 VND/meter. However, Biti’s made an excellent move in handling this communication issue [8] in a very professional and commendable manner Specifically, they offered the following options:
Substitute brocade fabric inspired by Hue culture and art
Recalibrate all images & transmissions within the next 24 hours
Update new materials and textures on shoes
Support customers to return if the product does not match their preferences
Commitment to deduct 100,000 VND from the revenue of each product sold of this collection to contribute to the talent development funds of the Central region, especially the Cham people Through this, Bitis has excelled in pleasing the public from criticizing to fully supporting the product because of its extremely professional and decisive media handling
Moreover, in order to have that spectacular comeback, the role of ingenious leaders, Vuu Le Minh and Vuu Le Quyen, is indispensable They bravely “sailed close to the wind” so that Biti’s was completely refreshed but still successfully expressed the traditional beauty. “Then we have people like Hung Vo - vice marketing director and CEO of REDDER Advertising - he is the brains behind that campaign and all the other marketing ideas for Biti’s. And of course all the employees in the Biti’s family: “They have sustained the fire and the passion behind the brand and have transferred it to the products to create the foundation for these successful campaigns.” proudly shared by Mr. Nguyen Hung Vo [6].
Internal factor - the importance of having a congenial team and strategists
Many Vietnamese consumers have a foreignfavored mindset, preferring foreign-made products even when the same products are domestically produced with equivalent quality and even lower prices. It is not difficult to recognize the foreign-favored behaviors when entering a supermarket and observing people buying garments, cosmetics and food," said Dr Nguyen Tri Hieu [7], which is also true even for the Vietnamese shoe market. Nowadays, it is not difficult to see the image of young people wearing stylish and popular sneakers from brands such as Vans, Nike, Adidas, and Converse The reason comes from the concept and trend of consumption.
For the first time, sneakers ventured out of Vietnam’s underground landscape and into daily life Because of being shaped by foreign footwear products early on, today's Millennials & GenZ generations tend to buy foreign products and prefer to use foreign footwear products, which makes made-in-Vietnam shoes like Bitis find it more difficult to bring their products to domestic consumers
According to statistics, in Vietnam, Millennials (25-38 years old) and Gen Z (18-24 years old) or collectively known as MillenialZ currently account for 47% of the country's population (45 million people) and are becoming the main factors contributing to the development of the current digital economy, they were born and raised in the context of strong foreign imports into Vietnam [8] Vans’ skate shoes were dominant as another student classic.
Endorsed by Vietnamese millennials, sneakers would go on to proliferate as a commodity of American street culture. At the same time, American consumerism would permeate, reshape and, at times, find itself at odds with Vietnamese life as previous generations knew it The emergence of branding power signaled the proliferation of a crop of high school students and young adults Vietnamese millennials who spiritually feed on fashion and consumer culture Seeing as their choice of garments in school was restricted to uniforms, many embraced the freedom to choose nice footwear A fresh alternative to old-fashioned Bitis and Thuong Dinh shoes, Converse officially entered Vietnam in 2003 and quickly became a phenomenon among youths.
Vietnamese life itself saturated with an emphasis on personal success and style is already vastly different from what it was before Doi Moi. Starting with a pair of sneakers, fashion embodies their materialism and drive for idiosyncrasy In 2008, an image of a bundle of water spinach (rau muống), an essential for many Vietnamese meals, was rendered on a T-shirt in the first-ever design from BOO, a fashion company that evolved from one of the first skate shops in Vietnam The concept of merging Vietnamese cultural images with American clothing was a breath of fresh air that worked flawlessly. After BOO’s success came the proliferation of local brands new Vietnamese fashion labels that start out humble, aim for originality, and in time, garner a sizable community of followers, especially shoes local brands. 2012 saw many emerging names in the Vietnamese domestic shoe market such as RieNevan, Ananas These brands are not only aesthetically pleasing and flexible but also suitable for Vietnamese GenZ & Millennials customers. Bitis is later when the company started to launch a new product named Bitis Hunter in 2016, although it was a great success, it does not mean that Bitis will not have difficulty in competing with other domestic shoes brands.
Customers' foreign-favored mindset [Reference List]
Despite operating in unrelated business landscapes and deploying distinctive competitive strategies, five companies mentioned in Company Casebook: Outlying or Outlining? share a common denominator: They challenged conventional successful recipes and reshaped the industries with their out-of-box initiatives. These plans are clever, risky, and representative of the truth that there is no fixed recipe to winning a business game.
In the end, we truly hope readers could gain certain learning points from their own interpretation of this casebook The support and feedback from our dear knowledge consumers are most satisfying rewards for the hardships that the Company Casebook team has overcome to deliver the book into your mailbox. We hope that the response to our product is encouraging enough for the following volumes to be published in the future
