The process of formation and development:- 1982: Started from two production complexes Binh Tien and Van Thanh at Binh TienStreet, District 6, Ho Chi Minh City with 20 workers, specializ
Trang 2MKT101
Group 5 Assignment report
Le Trong Minh – HE170488
Ho Thi Viet Hai – HS163203
Pham Hong Luong – HE163070
Le Thi To Uyen – HS173217
Pham Quoc Nam – HE160934
Dao Minh Duc – HE160082
Trang 42 The process of formation and development:
- 1982: Started from two production complexes Binh Tien and Van Thanh at Binh TienStreet, District 6, Ho Chi Minh City with 20 workers, specializing in the production ofsimple rubber sandals
- In 1986: two cooperative groups merged to form Binh Tien Rubber Cooperativeoperating in District 6, specializing in the production of sandals and slippers, fordomestic consumption and export to Eastern and Western European countries
- 1989: Binh Tien Rubber Cooperative became the first non-state entity in Vietnam grantedthe right to directly import and export by the State
Trang 51990: Binh Tien Rubber Cooperative invested completely in Taiwanese technology andproduced new products (EVA foam footwear)
- 1991: Established Son Quan Joint Venture Company - a joint venture between Binh TienRubber Cooperative and Taiwan SunKuan Company - specializing in the production ofcomedy and slippers for export
- 1992: Binh Tien Rubber Cooperative transformed into Binh Tien Consumer GoodsManufacturing Company (Biti's); specializes in manufacturing all kinds of foam sandals,sports sandals, men's and women's leather shoes, sports shoes, western shoes, comedy, for domestic and foreign consumption
- 1995: Established Binh Tien Dong Nai Co., Ltd (Dona Biti's)
- 2000: Established a representative office in Yunnan, China
- 2001: Biti's was certified by BVQI and QUACERT to meet the international qualitymanagement system standards ISO 9001: 2000
- 2002: Established Biti's Central Highlands Trade Center
- 2005: Established Biti's Northern Trade Center
- 2006: Established Biti's Lao Cai Trade Center
- 2006: Established Biti's Da Nang Business Center
- 2008: Established Biti's Mien Tay branch
- 2009; established Biti's Southern branch, launched Sapaly Hanoi - Lao Cai - Hanoi trainroute
- 2013: opened the first 4-star hotel in Lao Cai: Sapaly Hotel Lao Cai
Description of product/service offerings:
● Bitis's product groups include:
Trang 6- Fashion shoes
- Sandal
- Handbags-Wallets
- High heels
- Baby walking shoes
● Characteristics of Bitis products:
- Ventilation: there are air holes to create the evaporation of sweat, ensuring no sweat moistureand odor-free, and at the same time reduce the temperature generated in the shoe, making it cooland comfortable to wear
- Outsole hardness: capable of withstanding impact, and high abrasion, but still ensures softnessand does not cause the feeling of foot pain
- Flexibility: create elasticity, feel easy, and comfortable when using soft, elastic materials, butstill ensure durability according to the standards register
- Hugging the foot: the strap is designed to fit the ankle according to the parameters exactly thefeet of each different area creating a sense of security when used
- Shock absorption: The sole is designed with EVA, SBR, genuine leather, and soft elastic Sicreates shock reduction in movement when carrying and avoids causing damage to the foot jointswhen operating with high frequency
- Friction: The outsole is designed with particular patterns, with high friction, anti-be slippery;Very suitable for sports activities
- Weight: Biti's products are moderately light in weight, controlled by registration standards, andsuitable for any commuting or sports activity, but also ensure flexibility, and protect the footfrom impact from the outside
- Aesthetics: With the motto of continuous development and improvement, Biti's products alwaysdevelop and launch many new designs according to each season and the tastes of customers indifferent regions
Trang 7Profile of target customer and target market:
- Bitis's target customers will be children (ages 1-15):
Beneficiary customers: Children from 1-15, The audience is divided into several sub-segments
by age:
Children 1-3 years old: Parents who buy shoes for this age are often interested in theshape, softness, and sole of the shoe They are willing to buy expensive but good-qualityshoes to protect the child's feet
Children 2-7 years old: Similar to the segment above but the difference is influenced bythe income of the parents and the child's interests In general, clothing retailers oftencombine versions with some accessories, including shoes Manufacturers began to payattention to the difference between boys' shoes and girls' shoes
Children aged 7-15: According to this segment, parents often buy according to theirchildren's preferences Meanwhile, children are influenced by media ( tapes ) and theInternet ( Facebook, blogs ) Differences in the preferences of boys and girls also have abig impact on the decision to choose footwear
Target customers: Parents, siblings
Potential customers: Grandparents, aunts, and uncles
- Target market: Bitis has a wide range of products (wooden clogs, fashion leather shoes, sportsshoes, sponge sandals, western shoes) The variety is diverse, the price of the product rangesfrom a pair of foam sandals that cost tens of thousands of dong to a pair of shoes with a price ofmillions of dong Bitis targets all types of customers from workers with average wages to theupper class in society, from the elderly to children Every customer becomes the target market ofthe business The business will meet the needs of all customers with the types of products theyneed With the above bases, Bitis has chosen a market coverage strategy
Unique selling proposition: Shoes for everyone from kids to old people with the best features
for each segment But the core value is still a long-lasting product
II Marketing Environment
1 Microenvironment
Trang 8a) Company
- Current Status:
Collecting information about the market in the period of making leather and footwear Vietnam ishaving to deal with the EU's tax imposition, many businesses face difficulties because thetraditional market has been lost, the domestic market is being dominated by the EU made inChina New markets have not yet been discovered In addition, Vietnam's retail market is beinghighly appreciated by world investors, the fierce competition in the domestic market makes itdifficult for many manufacturers in the leather and footwear sector
- Solution:
Facing that challenge, Biti's has proactively built a comprehensive development strategy,invested in brand building and developed a wide distribution system across regions, not only inVietnam but also in the international market The company always finds new directions, dares
to take risks in business in order to serve the business strategy of "Covering the market"
- Effective :
Thanks to the appropriate and effective marketing policy, Biti's company has been present inmore than 40 countries worldwide and is trusted by many demanding markets such as Russia,UAE, etc In any market, Biti's also gain the trust of consumers Biti's customers are verydiverse, including many famous and famous customers, requiring very high technical standards.Besides, Biti's also passed the rigorous assessment of the factory by reputable organizations suchas: ITS, SGS, BV, Pricewaterhouse Coopers,
b) Suppliers
Currently, according to the need to diversify the types of products involved in business on thebasis of ensuring quality standards for the Company's customers, Bitis is implementing abusiness cooperation plan with suppliers at home and abroad specializes in manufacturing allkinds of materials and accessories such as: mesh straps, Si PU, Nubuck, PVC, leather, goat skin,sheepskin, button canopy, plastic (metal) eyelets, metal mark , strap, nylon edge, PP-PE-HD bag,elastic fabric, Satin, Kaky, 4-way elastic, Heel group, sole, eraser, rubber, EVA foam footwearindustry chemicals: glue, EVA plastic beads -LDPE ink printed on EVA silk Biti's has a huge
Trang 9demand for raw materials, but production materials are very large, but these materials are stillvery limited, businesses have production but do not meet the requirements that Biti's has set.Therefore, up to 60% of Biti's input materials are imported from abroad, only 40% are takenfrom domestic manufacturers With the motto of seeing suppliers as partners "Cooperation andsharing profits", Bitis offers suppliers the best policies and business opportunities Currently,cooperation with Bitis has the following main suppliers:
About leather:
Bitis chose Wei Tai Leather Joint Stock Company, which is a company with 100% investmentcapital of Taiwan, specializing in the production and processing of finished leather products Thecompany's head office is located in Nhon Trach III Industrial Park, Nhon Trach District, DongNai Province, led by Mr Huang Yu Hsiu as Director
About buttons, key rings; Bitis prioritizes domestic companies
With Button, keyring, metal mark, Biti’s chooses Tim Do Trading & Production Co., Ltd Since
1980, the metal button brand of Tim Do has been trusted by domestic and foreign companies andcustomers because of its quality products and always applies the diverse needs of the market.About eyelets, plastic buckles,
Bitis chooses Trieu Phong Co., Ltd Originating from a small facility called "Hoan MyProduction Complex" specializing in manufacturing shoes, sponge sandals, leather sandals,saldal, rubber soles, Trieu Phong Shoes Co., Ltd was born on October 10 in 1992
Synthetic resin beads,
The company mainly imports from the Netherlands and France In addition, the company alsochooses a number of domestic suppliers Typical in this selection is Vietnam Polystyrene Co.,Ltd
With a supplier of heels, soles,
Bitis chose Tae Sung company Since its establishment, Tae Sung company has always been aleading company in the production of plastic products In addition, Bitis also chooses TrieuPhong Co., Ltd as one of its sole suppliers
Trang 10c) Customer
Many group customers come to Biti's:
Slippers distribution businesses
Business centers
Northern Bitis trade center
Da Nang Bitis trade center
Central Highlands Bitis trade center
Southern Bitis branch
Western Bitis branch
Marketing outlet: divided by northern region, central region, Zone Central - CentralHighlands region, Southern region
Retail consumers
Customer characteristics:
+ Customers from 0 to 5 years old often prefer vibrant colors and interesting textures
+ Customers are young people from 15 to 25 years old, mainly students For their footwear, it isnot only a garment that serves as a travel requirement, but it also contributes to the expression ofpersonality High subject comfort, convenience and cooperation time
+ Customers who are over 30 years old are working people with stable income They are suitable
to use products that are already reputable in the market
Trang 11+ Wide variable not offset
e) Marketing intermediaries:
Biti's Hunter is distributed through various online shopping channels such as Lazada and Shopeeand domestic distribution system including 156 marketing stores and more than 1500 retail storesnationwide (Biti’s n.d.) Wide market distribution from offline to online, which is veryconvenient for consumers to purchase and stay connected with the consumers and sustain theirprofit regardless of Covid -19
f) General public:
- Around the end of 2016 and the beginning of 2017, Vietnamese youth were buzzing with thecampaign "Go to return", marking the excellent return of Biti's with its sub-brand Biti's HunterBitis was very smart when quickly creating viral effect for the whole campaign, hitting on thepsychology of wanting to go, experience and explore the world around the modern youth butalways remember their family, where they have to go wherever they go
- Especially, Bitis knows how to capture the psychology of young people, when popular idolslike Son Tung MTP, Sobin Hoang Son are brand ambassadors Along with other singers likeErik, Suni Ha Linh, and Dalab group are very popular with young people with songs that inspirepeople
- The spread of this campaign was very successful Because it is not only on the Internet but alsotransmitted from hand to hand through many different ways
- Season 1, to lead young people to the story of Going to Return and realizing their insight, Biti'screated a debate on the topic of "Go or return" on Facebook, with the participation of KOLs such
as: Pho, Giang Hoang, Phan Y Yen, etc use the hashtags #teamđi, #teamtrởvề.
- Season 2, Biti's opened a contest to share the most meaningful trip of the year on Facebook togive 500 lucky young people a chance to reunite during Tet The program called "Share the mostmeaningful trip of the year - Start your journey to return with Biti's Hunter" has attracted morethan 12,000 shares
Trang 12- In a media campaign, the support of the press is indispensable With the role of updatinginformation on debates as well as campaign activities, Kenh14 always has shared articlesthroughout the entire campaign, in both seasons 1 and 2.
Vietnam's population tends to age
c Economic environment:
The market needs purchasing power and the public The purchasing power of the economydepends on people's income and spending
Trang 13- According to statistics, GDP growth rate in 2018 increased income, per capita income alsoincreased, leading to attractive purchasing power, people's purchasing power for goods Bitis hasincreased significantly
- The core inflation rate of our country in August 2018 only increased by 1.54% over the sameperiod, currently still at a low level, the average core inflation in the first 8 months of the yearincreased by 1.38% compared to the same period last year than 1.47% in 2017 In general, ourcountry is performing well the role of controlling inflation Moreover, lending interest rates ofbanks are kept at an acceptable level, this affects people's consumption activities, includingfootwear (Bitis) because interest rates are an important demand for customers customers borrow
to pay for their purchases
d Legal and political environment:
- The law minimizes the problem of buying and selling fake and poor-quality goods This helpsthe fashion market in general as well as Bitis in particular to eliminate unhealthy competitors
- The development of technology shortens the product life cycle When modern machines racetogether, it also means that footwear manufacturing technology has also improved significantly.Businesses competing with Biti's can seize this opportunity to launch products with more diversematerials, designs and quality
- Machinery and equipment is one of the factors directly involved in the production process, sothe modernization of machinery and equipment or technological innovation is very important foreach enterprise An industrial production enterprise that wants to survive and develop needs to