final report topic tiem guoc

Realizing the business potential in this fertile market, TIEM GUOC brand launched a store in Ho Chi Minh City with the goal of expanding and developing more branches spread across the co

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

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THANK YOU

First of all, my team would like to thank the business administration faculty in particular and the marketing industry in general for giving us the opportunity to study this practical topic In addition, the group also expressed their deep gratitude to Ms Tran Thi Thanh Van for her enthusiastic teaching and support during the past time

Our final report details the improvement of ideas through each model taught by Ms Tran Thi Thanh Van From the original idea of simply starting a shop selling homemade high heels, the above idea has transformed into a brand selling high heels

This report helped my group better understand how to apply the models after learning the theory so that they can apply these models well at the right stage of the business process to solve business problems

In addition, this subject is the foundation for us to consolidate and practice knowledge to apply in practice later

If there is something wrong in my group's midterm report, please ignore it and give me feedback so I can improve it better

I hope you always have good health and success in your work Sincerely thank!

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MEMBERS

FULL NAME ID COMPLETE MISSION

Trương Nguyễn Hiền Thơ 719H0911 100%

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 8

CHAPTER 1: COMPANY OVERVIEW 9

1.Company background and purpose 9

2 Mission and vision statement: 10

3 Core product and service offerings: 10

3.1 Describe your product or service and the problem it is solving 10

3.2 List current alternatives 11

3.3 Discuss how you will differentiate yourself from competitors 12

4 TIEM GUOC’s unique value proposition 12

5 Explain the nature of the industry 13

CHAPTER 2: COMPETITIVE AND MARKET ANALYSIS 15

1.Define the estimated size of the market 15

2 Market segmentation: 16

2.1 Target customer 16

2.2 Describe the competition and How TIEM GUOC will gain market share 17

3 Brief competitive plan: 21

3.1 How TIEM GUOC’s offering provides a solution to your segment(s) 21 3.2 TIEM GUOC’s projected volume and value of sales compared to competitors 22

3.3 PESTEL 24

CHAPTER 3: SALES AND MARKETING PLAN 28

1 Describe your pricing strategy for your offerings 28

2 The various methods (marketing channels) you will use to get your message to prospects 28

3 Detail the market materials you will use to promote your product, including an approximate budget 30

CHAPTER 4: OWNERSHIP STRUCTURES AND MANAGEMENT PLAN 46 1.Describe the legal structure of TIEM GUOC business: 46

2 Detail the management team’s roles, relevant experience, and compensation plan 47

3 List the staffing requirements of TIEM GUOC business, including whether you need external resources or services 49

4 Detail any training plans TIEM GUOC will put in place for employees and management 54

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CHAPTER 5: OPERATING PLAN 56

1 Describe the physical location(s) of TIEM GUOC business 56

2 Describe the production workflow 57

3 List any additional physical requirements 59

4 Describe the materials TIEM GUOC need to produce TIEM GUOC‘s product or service and explain how TIEM GUOC‘s plan to source them 61

CHAPTER 6: FINANCIAL PLAN 63

1 Demonstrate the potential growth and profitability of your business: 63

2.Create a projected income statement: 65

3 Create a projected cash flow statement 66

4 Create a projected balance sheet 68

5 Provide a break-even analysis 69

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TABLE OF FIGURES

Figure 1: Logo 9

Figure 2: Shoe box 11

Figure 3: High heels 13

Figure 4: Revenue structure of Vietnamese fashion products 2020 13

Figure 5: Turnover in Vietnam fashion market ( 2017-2021) 14

Figure 11:Salary costs 65

Figure 12:Annual Income Statement Forecast 65

Figure 13:Cash flow Statement table 66

Figure 14:Yearly Balance Sheet Forecast 68

Figure 15:Break-even analysis 69

Table 1: List of alternative services 12

Table 2:Target customer 17

Table 3:Business competitor analysis 22

Table 4:Marketing Mix 31

Table 5: Target customer description 32

Table 6:Preparing for opening 33

Table 7:Marketing plan in 2023 34

Table 8:Marketing Plan in 2024 37

Table 9:Marketing Plan in 2025 40

Table 10:Marketing Plan in 2026-2027 41

Table 11:Marketing plan 2026 (stage 1) 42

Table 12:Marketing plan 2026 (stage 2) 43

Table 13:Marketing plan 2027 45

Table 14:Sale strategy 46

Table 15:Expected Sales in 5 years 46

Table 16:The role of the management team 49

Table 17:List the staffing requirements of your business 53

Table 18:Salary 54

Table 19:List of machines 61

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EXECUTIVE SUMMARY

Currently, the high heel shoe market in Vietnam is very exciting and potential with many business opportunities for businesses Life is becoming more and more modern and developing, women are gradually more confident to express themselves through the style of clothing, so the demand for high heels of customers in Vietnam is from 18 to 45 years old , especially in big cities like Hanoi and Ho Chi Minh City Realizing the business potential in this fertile market, TIEM GUOC brand launched a store in Ho Chi Minh City with the goal of expanding and developing more branches spread across the country in the next 5 years TIEM GUOC specializes in the design and manufacture of high quality, comfortable high heels for women The brand's target market is women aged 18-35 looking for stylish, comfortable and versatile high heel shoes for work and special occasions and casual wear day

TIEM GUOC will set itself apart from its competitors by providing high-heeled shoes with trendy, yet relevant design, with excellent product quality TIEM GUOC's products are all manufactured under careful quality control and censorship before being delivered to customers However, if there are small cases of product defects, customers will be warranted according to the policy on each product In addition, TIEM GUOC provides a special service that no other brand on the market can offer Re-decorate shoes according to customer's request

To market the brand, TIEM GUOC will use a combination of online and offline marketing channels The company will create a website, Instagram, Facebook, Tiktok to introduce its products, provide online shopping services and provide customer service along with running ads to increase brand awareness In addition, there are many other activities outlined in chapter 3 Sales and Marketing Plan

Besides the Marketing and Sales plan, other factors affecting customer satisfaction such as the attitude of experts on online or in-store sales channels are also focused TIEM GUOC always has training sessions to upgrade sales skills and understanding of the products received by employees to ensure that they always provide the most enthusiastic and useful advice to customers

9 CHAPTER 1: COMPANY OVERVIEW

1 Company background and purpose

Established on 5/4/2023, TIEM GUOC is a high heel shoe brand based at 650/27 Dien Bien Phu, Ward 11, District 10, Ho Chi Minh City, Vietnam The brand was created with the goal of providing women with elegant and comfortable high heels that are both stylish and affordable

Realizing that there is a gap in the high-quality, idiosyncratic high-heeled shoes market in Vietnam, TIEM GUOC is a brand created to give Vietnamese women confidence and difference every step of the way

TIEM GUOC uses the highest quality raw materials from reputable and highly reliable suppliers to manufacture its products The brand attaches great importance to ethical values and product quality, so all TIEM GUOC products are manufactured in the factory with strict supervision and strict quality checks to ensure that the product meets the highest customer standards Along with a staff of enthusiastic and passionate about fashion in Vietnam, TIEM GUOC products are committed to not only quality but also elegant designs suitable for many different ages and environments

The store in Ho Chi Minh City with its cozy and luxurious space and professional and enthusiastic staff will definitely bring you a satisfying shopping experience TIEM GUOC is committed to meeting all customer requirements and wishes from products to best service

In the future, in addition to developing a large-scale consumption network, TIEM GUOC also consolidates the main market in Ho Chi Minh City, furthermore Hanoi, Da Nang, , will open many stores in other cities and districts in order to create favorable conditions for products to reach consumers as quickly as possible

Slogan: “Lọ Lem và chiếc giày để quên ở Tiệm” “Cinderella and forgotten shoes at the Shop”

Figure 1: Logo

Vision:

Creating products that meet high quality standards, TIEM GUOC will become a close companion contributing to the success, happiness and prosperity of all Vietnamese women

3 Core product and service offerings:

3.1 Describe your product or service and the problem it is solving

Shoes are accessories that play an extremely important role in women's fashion because they contribute to their femininity and nobility At the same time, it adorns the outfit, making the wearer stand out more High heels are one of the accessories that women are particularly fond of

In contrast to sports shoes, which are more concerned with comfort and practicality for everyday wear, high heels are a little pickier because some people are afraid of the sensation of wearing a pair of shoes that are too high and difficult to wear in commuting However, when wearing high heels, women gain significant height, not to mention increased femininity Furthermore, high heels are especially suitable for polite events, while some types of low-heel shoes can also be used for everyday walking

In recent years, the Vietnamese market has become very differentiated, with two main groups of high-heeled shoes, one of which is a group of low-priced high-heeled shoes with no brand, imported from Chinese merchants and purchased through retail stores Chinese floors, such as Tao Bao, frequently have very low prices with a variety of designs, but the downside is that the quality is very poor The rest of the group are high-end high-heeled shoes from famous fashion brands around the world, such as Gucci, Chanel, Christian Louboutin, and so on, with trendy designs, sophisticated finishing quality, but very high prices, which only a few people can afford

Recognizing this, we are determined to launch a mid-range high-heeled shoe brand to meet the needs of those seeking high-heeled shoes with beautiful design, good quality, and a reasonable price in comparison to the majority of Vietnamese people's income Furthermore, the brand emphasizes culture in its products; all products will be made directly in Vietnam and will have names and designs that are somewhat related to our country

Accompanied service:

In addition to selling shoes, the store will offer a service in which customers can ask employees to repair shoes they have purchased Editing can include adding more accessories (bows, stones, rivets, etc ), drawing more textures, changing the height of the base, and so on

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The shop will also offer a 10-day return policy if the product is found to be defective, a 1-year warranty on all products, free sole stickers, and free retouching for shoes with peeling paint over time The above services will be charged for a one-year period

Figure 2: Shoe box

3.2 List current alternatives

Accompanied service: In addition to selling shoes, the store will offer a service in which customers can ask employees to repair shoes they have purchased Editing can include adding more accessories (bows, stones, rivets, etc ), drawing more textures, changing the height of the base, and so on

The shop will also offer a 10-day return policy if the product is found to be defective, a 1-year warranty on all products, free sole stickers, and free retouching for shoes with peeling paint over time The above services will be charged for a one-year period

Alternatives Describe

Cleaning and restoration of leather shoes services

The store will take care of cleaning and polishing so that the sretain their original color We also get restoration like gluing sore-sewing soles, restoring skin color, and replacing liningsdamaged shoes

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Custom leather shoes

In addition to receiving custom high heels, the shop accepother types of leather shoes if customers have a demand Cuscan personalize their purchases by drawing, attaching rivets, amore accessories, and so on

Table 1: List of alternative services

3.3 Discuss how you will differentiate yourself from competitors

The differences between TIEM GUOC and other competitors such as Juno, Vascara or Trinnie are reflected in a number of factors:

• Price: Although the price of TIEM GUOC products is not too low but when compared with the products of the same type of other enterprises such as Trinnie, TIEM GUOC is confident that customers will buy quality products at a good price Or when compared to Vascara or Juno, we can show guests that at the same price or just a little higher but their choice will be more

• Quality: With the criteria set from the beginning, TIEM GUOC ensures to bring products with high-end materials, quality accessories, new designs and the number of products produced each step should be thoroughly inspected

• New product release time: Each quarter we will have 10 new designs equivalent to 1 year We will launch 40 designs and this number is three times more than TIEM GUOC’s competitors

• Service: Each product of TIEM GUOC, if the customer needs to edit a few small details, we will support the customer because we have the production & design room right in the store TIEM GUOC is confident with this service because currently on the market, no store receives their ready-made shoe editing In addition, in the future we may add additional individual shoe design services on request for each customer That will make TIEM GUOC completely different from its current competitors

4 TIEM GUOC’s unique value proposition Service provider: High heels

TIEM GUOC high heels products are designed and handcrafted by the shop's own workers under the direct supervision of the designer Every pair of shoes you receive comes with their enthusiasm and commitment me about product quality, sophistication and most importantly, your satisfaction

As a brand of Vietnam, the materials of the product are prioritized to be imported in the country and combined with traditional craft villages in Vietnam This is an attractive

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point for TIEM GUOC's customers because Vietnamese people are very fond of "made in Vietnam" products With Vietnamese origin, customers will be somewhat more assured when using the product

Figure 3: High heels

5 Explain the nature of the industry Industry Position

According to a Vietnam report, the Vietnamese footwear market is in a growth phase and is becoming one of the largest markets in SoutheastAsia

14 Figure 4: Revenue structure of Vietnamese fashion products 2020

Figure 5: Turnover in Vietnam fashion market ( 2017-2021)

However, the high heel shoe market in Vietnam is a growing industry in recent years However, compared to other developed countries, this market in Vietnam is still not fully developed and does not have many big brands

Famous high heel shoe brands in the world such as Jimmy Choo, Christian Louboutin, Gucci, Valentino, are being loved and used by many Vietnamese consumers In addition, there are also many high-quality Vietnamese high-heeled shoes brands that are trusted and chosen by customers However, this market still has many opportunities for emerging brands to penetrate and develop, especially TIEM GUOC with high-heeled shoes

Trends

• Sustainable fashion

In recent years, the Vietnamese fashion market has recorded the landing of fashion brands in the world and received many positive business results It is the ability to allow customers to access the latest designs at affordable prices that has created the attraction of "fast fashion" with Vietnamese consumers However, the short life cycle that causes these “fast fashion” items to be thrown away early has had a negative impact on the environment, people and resources

Meanwhile, at TIEM GUOC adopting sustainable fashion – supplying, manufacturing and consuming fashion products designed in a way that ensures environmental, social and economic sustainability – is forecast to be an inevitable trend in the context that the income of Vietnamese people is gradually improving and the sense of responsibility of young people towards fashion products and the environment is increasing

• The popularity of influencer marketing

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Influencer marketing is gradually becoming the most invested media of fashion brands in recent years Facebook, Youtube, Instagram, TikTok… are popular channels for KOLs to introduce new brands and designs In addition, KOLs are also the representative faces in lookbooks and promotional videos of brands.TIEM GUOC also uses some KOLs to promote its products such as GonPink, Giai Y

• Video content

Along with the growth of e-commerce, video content is becoming more and more attractive and is expected to dominate social media According to research by technology company Cisco, by 2022, about 82% of online content will be in the form of video Besides, livestream is also showing its usefulness in promoting sales for fashion brands Many large- ale shopping events are held on livestream and this is scbecoming more and more common

• Distribution on e-commerce channels is increasingly popular

Recently, consumers have turned to online shopping channels more TIEM GUOC has expanded online sales on e-commerce sites such as Lazada, Shoppe, Tiktok

• External influences

Many external factors can affect the Vietnamese high-heeled shoe market and greatly affect the business of TIEM GUOC, from politics to legal regulations, the economy, etc This can be seen more clearly in the PESTLE analysis in section 4.4 because the PESTLE Analysis is a framework for analyzing the key factors influencing a new business or industry from the outside

In summary, through the above factors, it can be seen that the high heel shoe market is also influenced by fashion trends and consumer needs Shoe manufacturers and brands are focusing on developing more beautiful, comfortable and safe high heels to attract customers and increase sales In order to meet the reduction of the impact of the shoe industry on the environment, more attention is being paid, especially in the use of environmentally friendly materials and product recycling TIEM GUOC is also looking to optimize production and transportation processes to minimize emissions and energy consumption

CHAPTER 2: COMPETITIVE AND MARKET ANALYSIS

1 Define the estimated size of the market

Vietnam is the third largest footwear producer in Asia after China, India, and the fourth in the world Currently, Vietnam is producing about 920 million pairs of shoes per year, exporting more than 800 million pairs to more than 50 markets around the world, of which the European Union (EU) accounts for the largest proportion Handbag products are also exported to 40 countries, in which the US market accounts for the highest proportion with 41.6%

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According to the 2022 summary report of the Vietnam Leather, Footwear and Handbag Association (Lefaso), leather and footwear production in 2022 will increase by 15.6% compared to 2021 Regarding exports, from the beginning of the year to the end of November 2022 reached $25.76 billion, up 39.2% over the same period last year

According to statistics of the General Department of Customs, up to June 2020, Vietnam's leather and footwear industry ranks among the top 5 export industries of the country Vietnam - one of the 10 largest leather and footwear exporters in the world has a great opportunity to take over these supply chains as well as develop ancillary industries when businesses tend to move their production bases out of the country out of China This is proof that Vietnamese products are highly appreciated in the international arena for quality and functionality

In Vietnam, the high heel shoe market accounts for 18.8% of total leather shoe production Products are mainly consumed in big cities such as Hanoi, Da Nang, Ho Chi Minh City and Can Tho Dong Nai is a large high-heeled shoe manufacturing area in the South with more than 4 million pairs/month It is estimated that the consumption of high heels in Vietnam is 3.8 million pairs/month The growth rate of shoe consumption in the Ho Chi Minh market is 7.3%/year The consumption of high heels in Ho Chi Minh City is 1.2 million pairs/month

In 2023, 2024, Shop is expected to produce 12,000 pairs of shoes with 20 different designs 4000 pairs in the first year and 8000 pairs in the following year The main market share that the store targets at this stage is individual customers living in Ho Chi Minh City Because it is the beginning stage, the market focuses mainly on middle-income women, accounting for 60% of customers buying shoes at the store, 20% targeting high-income people, and 20% targeting high-income customers to celebrities, according to the fashion industry In the next 2 years, the business increased to 22,000 pairs with 10,000 pairs in 2025 and 12,000 pairs in 2026 accounted for 0.05 percent of the high-heel consumption market share in the city

2 Market segmentation: 2.1 Target customer

Targeted customer Identifying characteristics Age Income

- Being judged by the people around himas having a good taste in clothes and beifashionable

- Enjoy discovering the ideal shoes to

25-35 years old

From 18 million VND/month

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express your personality

KOL Celebrities

Tiktoker

- Very important in terms of form and layout

- Buy trendy items

- Discover the styles of dress in many parts of the world

- Likes to shop and especially interestein limited edition items

- Active and extrovert

18-35 years old

From 20 million VND/month

Table 2:Target customer

2.2 Describe the competition and How TIEM GUOC will gain market share 2.2.1 Market overview

The global high-heel shoe market is estimated to reach US$30 billion by 2022 and is expected to expand at a decent growth rate in the period from 2022 to 2030 Recently, the number of high-income earners in the world market has increased in 2021 This leads to the high purchasing power of individuals In addition, the increasing number of women entering the workforce and the participation of women in the workforce in regions such as Japan, the United Kingdom and France have supported the growth of the global high-heel footwear market growth in the near future

In 2022, worldwide sales of women's footwear will be mainly contributed by high heels

The high heels market contributes a higher revenue share than men's shoes Changing lifestyles, growing interest in fashion and celebrity endorsements have a significant impact on the global footwear market Recent market trends for high heels are sustainable footwear and sports trends Popular motifs in the past including –minimalist style high heels, feather high heels, etc will continue to be the main trend in the near future This is driving overall footwear sales worldwide

Vietnam is the third-largest footwear producer in Asia and the fourth in the world Vietnam's footwear export output is second only to the Chinese market

According to statistics of the General Department of Customs, Vietnam's footwear export in October 2022 is estimated to reach a turnover of over 1.96 billion USD, up 9.54% compared to September 2022 and increasing sharply 109.42% compared to October 2021 By the end of 10 months of 2022, the export of this commodity reached US$ 20.12 billion, an increase of 41.36% over the same period and accounting for over 6.43% of the total export turnover of our country in the first 10 months of this year 2022

According to the Vietnam Leather and Footwear Association, in 2022, Vietnam's leather and footwear industry has overcome many difficulties and challenges to achieve an impressive export turnover But this is no guarantee that the industry will maintain its growth in 2023, as there are many objective factors affecting the growth of the

In addition, Vietnam currently has about 129 enterprises investing in the production of raw materials and accessories, but only about 20 domestic enterprises are capable of supplying high-quality raw materials, making leather and shoe manufacturers facing many difficulties in taking the initiative in ordering and sourcing raw materials Currently, the leather and footwear industry follow the fashion trend that is constantly changing, so it is necessary to develop the Vietnamese leather and footwear industry in accordance with the tastes

2.3.2 Competitor

In recent years, businesses have paid more attention to Vietnam's domestic market Large enterprises in the footwear industry in Vietnam can be mentioned such as Juno, Vascara, Trinnie, Dong Hai, these are considered competitors to TIEM GUOC

JUNO's footwear products are created by the company's own design team and processed at the factory located in Ho Chi Minh City JUNO's product line is diverse in models, colors and types JUNO focuses on products such as: high heels, doll shoes, boots, sandals and sandals The products have high fashion, youthful colors, and dynamic designs and are suitable for many ages and the needs of customers However, JUNO's products have not been able to overcome the foot pain caused by customers when using it for the first time In addition, there are products with excess glue, the excess just not really satisfying customers

Vascara was established in 2007, known as a brand originating from Brazil, with a design center and factory run by Vietnamese people, specializing in fashionable footwear for office women and women Currently, Vascara owns 88 stores nationwide Officially launched in 2015, Trinnie focuses on developing high-end high-heeled shoes in the Vietnamese market and only sells pointed-heel products with slim criteria The designs of Trinnie heels are modern and youthful, loved by many celebrities,

All businesses have their own orientations in the high-heel shoe industry in the Vietnamese market But one thing in common is that they all focus on quality when the product reaches the consumer This requires that the TIEM GUOC store, in addition to focusing on product quality like other businesses, needs to have its own different strategies to stand out and leave an impression in the hearts of customers

2.3.3 Describe the competition

For casually designed shoes, the company must send the design to the workshops for them to produce in large quantities, not exclusively for the owner of the shoes Moreover, mass-produced products make it difficult for women to choose for themselves a particular model and style Besides, customers do not know the materials that the company creates, so it is difficult to know whether the materials are good or not

In order to be able to compete with other competitors, we have thoroughly researched the high-heeled footwear market before producing the product

TIEM GUOC products are produced in limited editions and only 10 new models are available every quarter, the special thing about TIEM GUOC is that it gives customers the right to edit or decorate as required, which helps customers express themselves Get your personality on each product when you wear it In addition, it also helps customers gain confidence in every step

It can be said that high heels are one of the favorite items of men and women, helping to enhance the figure and temperament of the outfit they are wearing To create quality products that meet the needs of the market, must go through a rigorous and meticulous production process at each stage

Each pair of shoes has its own unique style and design, so the production process will be different

Facing fashion trends that are constantly changing and updating, footwear production must provide a system of modern machinery and equipment and attract a team of highly

Figure 6: Compertitors

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skilled grain workers At the same time, comply with the following 7-step machining process

• Sketching and designing designs

• Prepare materials for shoe production Regarding material suppliers, TIEM GUOC chose Alran Leather and Footwear Industry Supplies and Thien Bao International Trading Production Co., Ltd

• Making shoe mold • Stamping and sewing • Assembling the toe • Lining and decoration • Check and finalize

2.3.4 How TIEM GUOC will gain market share Reasonable Prices

Price of shoes: From 700.000 VND

TIEM GUOC has a higher price of products and services compared to the general high heels market but is still on par with competitors such as Juno, Vascara, and Trinnie, so TIEM GUOC is committed to bringing quality products head for customers TIEM GUOC brings values that competitors have not provided in their services such as shoe cleaning service and shoe modification according to customer requirements Therefore, this price is suitable for customers

Advertising

Advertising is done to build the image of company products, attract customers and ultimately increase sales With fierce competition in the market, advertising is a great way of marketing to win gaining the upper hand over competitors, although this is an expensive but effective way to increase market share

If the company does not invest in brand promotion and does not use advertising tools to promote products, customers will never know about the company and its products

Communication today has changed a lot thanks to the rapid development and adoption of new technology That's why TIEM GUOC focuses on developing online marketing and leveraging the power of communication channels such as online social networks (Website, Facebook, Instagram, TikTok, ) to raise awareness and share knowledge with customers

Strengthening Customer Relationship

Build and develop social media channels to prepare for product launch and sale In the first week that TIEM GUOC officially operates, there will be a promotion "Free shipping nationwide"

Run promotions for the first 6 months

Each product sold will have a thank you letter, and shoe care instructions with a QR code