Topic biti’s shoes export process to korea

FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL MARKETING CODE: MK302DE01 CLASS 0200 _ GROUP FINAL REPORT TOPIC: BITI’S SHOES EXPORT PROCESS TO KOREA List of students performing: Trần Anh Tú - 2194039 Trần Hàng Vĩ Khang - 2195561 Thạch Nhật Quang - 2197508 Nguyễn Phát Huy - 2196452 Nguyễn Quang Khải - 2194450 Đinh Hoàng Long - 2196864 Professional Instructor: Ms Đặng Trương Thuỳ Anh 17/08/2022 FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL MARKETING CODE: MK302DE01 CLASS 0200 _ GROUP FINAL REPORT TOPIC: BITI’S SHOES EXPORT PROCESS TO KOREA List of students performing: Trần Anh Tú - 2194039 Trần Hàng Vĩ Khang - 2195561 Thạch Nhật Quang - 2197508 10 Nguyễn Phát Huy - 2196452 11 Nguyễn Quang Khải - 2194450 12 Đinh Hoàng Long - 2196864 Professional Instructor: Ms Đặng Trương Thuỳ Anh 17/08/2022 FINAL REPORT | PAGE ABSTRACT This final report was made by our team to describe the marketing plan and strategy when bringing Bitis shoes to the Korean market During the period of making the report, our group met and exchanged many aspects related to the report, applied the knowledge learned and searched a lot of information on the internet to apply to the article this report thereby offers the most practical plans and strategies to minimize all risks when Bitis enters the Bitis market In addition to the knowledge and theory about "International Marketing" that we learned and cultivated in this short summer, the team also applied the knowledge of some other subjects such as Marketing basics to SWOT analysis, Biti's customer file segment when entering the Korean market The Marketing Strategy and IMC subjects helped my team develop a specific marketing and communication plan for Bitis In addition, journals, books, other references, and related documents on the Internet are also collected and implemented by our team into the ideas in the report as secondary data sources FINAL REPORT | PAGE Table of Contents ABSTRACT ACKNOWLEDGEMENT TEACHER’S COMMENT LIST OF FIGURE DESCRIPTION TABLE A INTRODUCTION B MAIN CONTENT 11 INTRODUCE BITI’S 11 I II THE MARKET 12 Customer in South Korea 12 Characteristics of consumer target group 12 Consumer preferences and buying habits 13 Competition .13 Market size and sales estimates 15 III STATEMENT OF PROBLEMS AND OPPORTUNITIES 16 PESTEL Analysis .16 SWOT Analysis of The Company 28 IV INTERNATIONAL MARKETING OBJECTIVES 30 Financial objectives: 30 Market Share Objectives 31 IV INTERNATIONAL MARKETING PROGRAM 32 Market Segmentation and target market 32 1.1 Demographic segmentation variables 32 1.2 Psychographics segmentation variables .35 Marketing Mix 40 Online: 52 Offline: 54 Truth + Motivation + Tension = Insight 55 VI EVALUATION AND CONTROL 58 B CONCLUSION 60 REFERENCE 61 FINAL REPORT | PAGE ACKNOWLEDGEMENT First of all, we would like to express our sincere thanks to Hoa Sen University, for introducing International Marketing into the curriculum In particular, I would like to express my deepest gratitude to Ms Dang Truong Thuy Anh - Lecturer of International Marketing, thank you for accompanying us during the last semester Although the class had to study in the 3rd shift at the beginning of the afternoon, it was quite sleepy, but with her lectures, her funny way of imparting knowledge made us feel more awake, excited, and passionate about learning During the last semester with her valuable knowledge imparted to us, my friends and I have cultivated a lot of useful knowledge such as: how to bring a product to the international market, how to research international markets, how to implement marketing strategies These are extremely valuable knowledge for those of us who study Marketing and this knowledge will be the luggage for us to work in the future International Marketing is a very good subject, highly practical through real situations Ensure to provide the necessary knowledge and skills for our students to apply in real life I would like to thank Ms Thuy Anh for imparting all her knowledge to the students However, due to the limited ability to absorb, the knowledge is not broad enough, so sometimes we will not keep up with what she has to say Our team has tried our best to complete the final report this time, but inevitably errors are inevitable Please consider and comment so that we can have a better report later FINAL REPORT | PAGE TEACHER’S COMMENT ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… TPHCM, 15th August 15, 2022 MS ĐẶNG TRƯƠNG THUỲ ANH FINAL REPORT | PAGE LIST OF FIGURE Figure ATAR 15 Figure Key Financial Metrics 15 Figure GDP Growth 17 Figure Footwear Users in South Korea 18 Figure Export Volume 19 Figure Export Volume 20 Figure Export Ranking 20 Figure Import Volume 21 Figure Import Volume 21 Figure 10 Import Volume 22 Figure 11 Population by Age 32 Figure 12 Income of Korean 33 Figure 13 Customer's Usage 38 Figure 14 South Korean Footwear Market 39 Figure 15 Biti's Hunter Running 41 Figure 16 Biti's Hunter Running 42 Figure 17 Biti's Hunter Running 43 Figure 18 Biti's Hunter Running 44 Figure 19 KakaoPay 51 Figure 20 BC Card 51 Figure 21 Balance Scorecard 59 FINAL REPORT | PAGE DESCRIPTION TABLE Full Name Code Mission Ghi Trần Anh Tú 2194039 100% Thạch Nhật Quang 2197508 Trần Hàng Vĩ Khang 2195561 The Market, ATAR Model, Evaluation and control (Balance Scorecard), Marketing Mix Statement of problems and opportunities (PESTEL, SWOT), Marketing Mix Marketing Mix Nguyễn Phát Huy 2196452 100% Nguyễn Quang Khải 2194450 Đinh Hoàng Long 2196864 Marketing Mix, Abstract, Acknowledgement, Conclusion Marketing Mix, Market Segmentation and target market International marketing objectives, Marketing Mix FINAL REPORT 100% 100% 100% 100% | PAGE A INTRODUCTION The main goal of making this report is to help our team have a better overview of how to bring a company's products to foreign markets To fulfill the request of Ms Thuy Anh to all groups, our team has selected, researched, and written a report on the topic "Bitis brings sports shoes to the Korean market" related to the article In general, this is an opportunity for members to improve their teamwork skills, and learn and research the shoe market in Korea In more detail, our 3-year learning has helped us a lot in this report We analyze the PESTEL model in Korea to get an overview of the business environment that Bitis is about to enter, thereby seeing potential opportunities and risks Analyze the Marketing Mix so that Bitis understands the real needs of Korean customers to satisfy them most optimally, thereby making appropriate marketing program plans Study the Balanced Scorecard model to establish, implement, monitor, and measure the results of the proposed strategy, from which you can learn from experience and come up with more effective strategies To evaluate the effectiveness and fulfillment of our members, our team has set three goals, which are presented below: • Objective 1: the group members the homework according to the group's • Objective 2: improve skills in researching, analyzing and searching for • Objective 3: Know how to plan marketing,IMC, PR, market assessment… in the progress information on the internet about the Korean sports shoe market in detail most optimal way This final report was made by our team to describe the marketing plan and strategy when bringing Bitis shoes to the Korean market During the period of making the report, our group met and exchanged many aspects related to the report, applied the knowledge learned and searched a lot of information on the internet to apply to the article this report thereby offers the most practical plans and strategies to minimize all risks when Bitis enters the Bitis market FINAL REPORT | PAGE In addition to the knowledge and theory about "International Marketing" that we learned and cultivated in this short summer, the team also applied the knowledge of some other subjects such as Marketing basics to SWOT analysis, Biti's customer file segment when entering the Korean market The Marketing Strategy and IMC subjects helped my team develop a specific marketing and communication plan for Bitis In addition, journals, books, other references, and related documents on the Internet are also collected and implemented by our team into the ideas in the report as secondary data sources FINAL REPORT 10 | PAGE Through a price survey at online sales sites of brands in Korea, Nike, Adidas are brands aimed at high-income consumers because the price of shoes of these brands is quite high and luxury FILA and Kolca have lower prices so they will target consumers with middle incomes and below, especially students In Vietnam, Biti's products are also aimed at young people who not have a stable income and still go to school, so the price of Biti's is lower than international brands in Vietnam Therefore, in South Korea, Biti's will confirm three direct competitors, included Fila and Kolca, to determine the price of the product when entering this market (Korea E G., 2020) 2.2.4 Term of sale Phase 1: Entering the market, Biti’s need to set a cheap price for competitors a little to facilitate consumers to pay attention and try Biti's shoes In the Korean market, the consumers are loyal to the brand of Fila, Nike, Adidas or Kolca Therefore, in the first period when going to Korea, Biti's will determine the market entry price is lower than shoe brands Fila and Kolca to attract more customers from competitors In Vietnam, the price of a pair of Biti's shoes is about 500,000 VND to 1,500,000 VND (28,000 won to 84,000 won), most Biti's shoe products have lower prices than many international shoe brands such as Adidas, Nike, even and Fila, so Biti's will have a price advantage when entering international markets, especially Korea Therefore, Bili's products are affordable with the average income of Vietnamese people But when placing products in Korea, where there are many other products that are better FINAL REPORT 48 | PAGE in quality and design and offer higher value, Biti's needs to offer a suitable price to create competition with competitors Specifically, in the first years in Korea, Biti running Hunter Shoe Price - Biti's main product: 50 đô (65.400 won) Phase 2: Starting in year 3, after initially using a lower price than the competition to gain market share, increase the product's price Biti's will start implementing a price change policy to increase product prices to reflect the position on the market and increase profits after the company captures a sizable enough share of the market, luring many customers away from rivals Biti's will cooperate with a few well-known KOLs in Korea to enhance product and brand value As in Vietnam, Biti's used to work with Son Tung and Soobin Hoang Son to promote its products and brands In Korea, Biti's will combine with KOLs with a youthful, dynamic, creative style and are loved by many young Koreans Biti's will increase product prices by: • Invite KOREAN KOLs to be brand ambassadors • Launch shoes with limited edition • Add extras when buying shoes such as socks, shoe ties, shoe pads, shoe cleaning vouchers, From year 3, Biti's will improve the Running Hunter line in terms of quality, design, add extras and used many Pr strategies so that the consumers will feel that the shoes they buy are better than the previous ones so they will be happy with this price Biti's will also set FINAL REPORT 49 | PAGE prices for the improved lines up 10% from the original price In addition,Biti's will offer a 10% discount on the original Hunter pairs to drive the lower segment 2.2.5 Method of payment Visa, MasterCard, and American Express are the most often used credit card kinds for cross-border ecommerce purchases Besides Visa and MasterCard, many more card brands are available in Korea, including BC Card, Lott e Card, and T-Money E-wallet payment allows consumers to buy products or services online using their virtual wallet, such as KakaoPay or Toss, which has become one of the country's most popular payment options According to KPMG, the value of mobile wallet transactions in South Korea will reach $503 billion by the end of 2024 Mobile payments, often known as "simple payments" by South Korean customers, are simple, convenient, and appealing, particularly to those seeking touchless payment methods In fact, 64.2 percent of South Koreans surveyed said they preferred mobile payments over carrying traditional cards The most commonly used mobile payment method in South Korea is KakaoPay There were around 36.5 million KakaoPay users as of June 2021, an increase of approximately 36.45 million members from September 2014 KakaoPay reached 10 million users 20 months after its inception in September 2014 KakaoPay is simple to use, which explains its rising popularity When customers are ready to make an online payment, they use the KakaoPay app to create a QR code One significant advantage of QR codes for retailers is that they may be dynamic, allowing for increased security to avoid fraud Therefore, about mobile wallet transactions in South Korea, Biti's will choose KakaoPay is one of major methods of payment FINAL REPORT 50 | PAGE Figure 19 KakaoPay Figure 20 BC Card FINAL REPORT 51 | PAGE In addition, Biti's also uses the payment method by card and the brand will choose BC card to pay at retailers BC Card is the No card payment processor in Korea and ranked 2nd globally in terms of Payment Acceptance and links with a network of National Financial Institutions Currently, in the Korean market, there are over 110,000 QR payment acceptance units under BC Card's system, concentrated in duty-free supermarkets, Lotte shopping centers, convenience stores, ginseng stores, souvenirs, tourist attractions 2.3 Distribution/ Place 2.3.1 Entry mode In the first phase, Biti's choose to enter the Korean market through large sales agents and distribution channels Exporting is the promotion and direct sale of products made domestically in another nation A tried-and-true strategy for reaching overseas markets is exporting There is no investment necessary in foreign production facilities because it is not necessary for the commodities to be made in the target country The majority of exporting's expenses are in the form of marketing charges In addition, Biti's will use direct sales sites, and major social media channels in Korea to enter the market 2.3.2 Distribution channels Online: Social Media According to a 2021 study by DMC Media, 89.3 percent of Koreans use social media, and it is 1.7 times greater than the world average, which is 53.6 percent The study further noted that Youtube (37.6 million), Band (19.7 million), Instagram (18.9 million), Facebook (13.7 million) and Kakao Story (9 million) had the greatest number of users in Korea On average, Koreans spent 1,627 minutes on Youtube, 606 minutes on Twitter, 534 minutes on Instagram, 445 minutes on TicToc and 431 minutes on Facebook every month FINAL REPORT 52 | PAGE Biti’s chooses Facebook, Kakao Story, Instagram channels to sell directly or link to the main website Koreans use the internet to be able to search for information about the product before picking it up at the store Social networks are used to discover, evaluate products, and buy Influencers and testers of known products have an influence on consumer decisionmaking South Korean consumers are less and less attracted to domestic products while the purchase of foreign products is increasing E-commerce Popular e-commerce sites include Auction, G-market, 11st, Coupang, and Naver Store Naver was ranked as the top e-commerce site in 2021 (combined mobile and PC users) Biti's will select popular e-commerce sites for sales (Administration, South Korea Country Commercial Guide, 2022) • Gmarket e-commerce site • Coupang e-commerce site • 11 street e-commerce site • Auction e-commerce site FINAL REPORT 53 | PAGE Offline: Indirect distribution: Biti's does not sell solders directly to consumers, but sells through supermarkets: E-Mart, Home Plus, major commercial centers: Lotte World Mall, Coex Mall, I'PARK Mall (Jobst, 2022) The leading hypermarket brands in South Korea in 2021, based on number of stores In 2021, EMART Traders from EMART, Inc ranked top with 158 stores, a small decrease compared to 2020 Following were Home Plus and Lotte Mart • HomePlus Mart • E-Mart • Lotte Mart • Major trade centers in the South Kore • Lotte World Mall FINAL REPORT 54 | PAGE 2.4 Promotion IMC (1/2023-1/2028) Objetive: The goal of this strategy is to improve awareness of Biti's, encourage more people to purchase Biti's products, and grow the market for Biti's goods After five years, Biti's will be well-liked by the Korean market, gain market share, and establish a presence there Biti's will influence Koreans' perceptions of the Vietnamese brand, changing them to believe that Biti's is a brand of high-quality, slick, long-lasting, and reasonably priced goods Create social media networks with user bases like Facebook's 10%, Instagram's 20%, Tiktok's 15%, Kakao Talk's 25%, and YouTube's 30% to raise brand exposure Create and launch shops on well-known Korean e-commerce platforms Create a Korean version of Biti's website to showcase its items, promote the brand, and boost traffic by 20% Insight: Truth + Motivation + Tension = Insight Truth: Koreans love to go hiking and walk a lot Motivation: Koreans attach great importance to physical health Tension: Koreans spend a lot of time at work, so they don't have time for exercise ⇒ Insight: Koreans want to walk, jog after work Detailed insight: