bitis hunter marketing strategy analysis

Biti''''s Hunter Street Black Line in the ‘Vietnamese Canvas of Pride'''' collection is an inspired message for the frontline during the COVID-19, with the motto “#ProudlyMadeInVietNam - #Unit

Hồ Chí Minh, ngày 01/07/2023 -o0o -

Group Assignment

Lecture : Phó Thị Mỹ Hạnh

Group: Devil Duck

Bitis Hunter Marketing Strategy Analysis

Member information

Contents

1 Introduction 3

1.1 Why did we select Bitis? 3

1.2 Bitis Hunter‘s current business performance 3

2 Strategic analysis 3

2.1 Micro environment: 3

2.1.1 Internal analysis 3

2.1.2 External analysis 3

2.2 Macro environment 4

2.3 The S.W.O.T analysis 5

2.3.1 Internal analysis 5

2.3.2 External analysis 5

2.4 Objectives 6

2.4.1 Qualitative objectives 6

2.4.2 Quantitative objectives 6

2.5 Segmentation 6

2.6 Target customer 7

2.7 Differentiating 8

2.8 Positioning 9

3 Marketing mix 10

3.1 Product policy/ strategy in 2020 2023:– 10

3.1.1 Objectives: 10

3.1.2 Actions: 11

3.2 Pricing policy policy/ strategy in 2020 2023:– 11

3.2.1 Objectives: 11

3.2.2 Actions: 11

3.3 Place policy policy/ strategy in 2020 2023:– 12

3.3.1 Objectives: 12

3.3.2 Actions: 12

3.4 Promotion policy/ strategy in 2020 2023:– 12

3.4.1 Objectives: 12

3.4.2 Actions: 13

4 Marketing Plan for the Coming Year: Leveraging Past Success for Future Growth 14

4.1 Objectives 14

4.2 STP 15

4.3 Marketing mix 15

REFERENCES 16

1 Introduction

1.1 Why did we select Bitis?

Biti's, formerly known as the Binh Tien rubber cooperative, is the pride of Vietnam's footwear industry and a well-known brand among most Vietnamese This derived our decision to conduct our research with this brand.(bitis.com.vn (n.d.))

1.2 Bitis Hunter‘s current business performance

Biti's, after a stint at the forefront of the domestic footwear business, has seen a large drop in revenue since 2010 when compared to companies like Nike, adidas and other foreign brands Biti's produces about 25 million pairs of shoes a year and provides 8,500 job opportunities to the unemployed In Vietnam, the company has 1500 retail distribution intermediaries, 7 branch centers and more than 150 marketing stores Biti's is the official distributor in Cambodia and exports to more than 40 countries (bitis.com.vn (n.d.))

2 Strategic analysis

2.1 Micro environment:

2.1.1 Internal analysis

Physical environment:

Competitors:

Two of Biti’s strongest competitors are Adidas and Nike Adidas Vietnam Company has 1.4% when Nike Inc generates 0.4% of the LBO brand share in the 2019 footwear market (Euromonitor International 2020, Figure 2.) Adidas is known for its quality and innovative concepts On the other hand, Nike succeeds by having a smart focus on the athletes’ needs in each sport, said Mark Palmer, Nike’s CEO (Wood 2016) Vans and Converse are considered one of Biti’s substitutes since their price-range is comparable to Biti’s Converse shoes sold at a median of 1,400,000 VND are familiar to the classical Hip-hop community Vans’s price-range goes from 1,150,000 VND for the Vans Authentic line (Vans Vietnam Official 2020)

Public

Biti’s has been verified by the childhood of Vietnamese generations Biti's Hunter Street Black Line in the ‘Vietnamese Canvas of Pride' collection is an inspired message for the frontline during the COVID-19, with the motto “#ProudlyMadeInVietNam - #United” The message was widely spread, and Biti’s committed 10% of the collection profit added to Biti’s 1 billion VND fund to support medical commodities’ frontline (Nam 2020)

In the media public, Biti’s has created a powerful social network that attracts the youths by putting meaningful insights into music videos According to a survey, 46% of the feedback from Biti's social media platforms is positive

2.1.2 External analysis

Suppliers

In the late 1980s, after learning about EVA technology from Taiwan to make raw materials for sponge sandals production, Biti’s decided to buy a production line to bring back Vietnam Although the localization rate of raw materials at Biti’s stages increases, the chemicals used for production still have to be imported about 40% (Dung 2015) During

the company's operation, Biti's has a policy of localizing as many raw materials as possible, this is one of Biti's top priorities in product development (Tran 2019)

Customer

Customers, especially youngsters in Vietnam, tend to distinguish the sense of style by spending more on apparel and footwear Besides, sports footwear are becoming more popular, which can be seen from 2014 to 2019 Footwear was the highest rising industry

in comparison to other FMCG industries in Vietnam (Euromonitor International, 2020) According to Euromonitor, 17% of general Vietnamese consumers are the Undaunted Striver Although may be easily influenced through social media and celebrities endorsements, they also prioritize personalized experiences and material

quality.(Euromonitor International, 2020)

Truong Ngoc Anh, the founder of #HNBMG, said ‘The Vietnamese youth have an undying hunger for new things, and the world is devoting more attention to Asian cultures more than ever (Nguyen, 2018) This explained the delighted reactions from youngsters when Bitis launched the collection about the cultural aspect of VietNam

2.2 Macro environment

Economic

Since the world first discovered the Corona Virus in December 2019, this pandemic negatively affected the world economy, and Vietnam was also impacted by this crisis However, the Vietnamese economy has shown remarkable resilience, achieved a 1.8% GDP growth in the first half of 2020, and is expected to reach 2.8% by the end of the year (The World Bank, 2020) The Vietnamese Economy’s sustainable growth has formed a robust disposable income growth

Natural

Vietnam is currently in a revolution to industrialize and modernize, leading to an immense number of industrial zones By the end of 2018, the occupancy rate of these zones was 73% since 326 industrial zones were operating and building nationwide (Shira & Associates, 2019) Specifically, with its main aim is to make every journey a ‘green-clean’ journey, Biti’s Hunter, together with GAIA, ICHA launched a campaign called “Go and experience green” in 2018 Participants would have a chance to live a green lifestyle and afforest Bidoup - Nui Ba National Park

Technology

Associated with famous E-commerce firms such as Tiki, Shopee, Lazada, and even Amazon, Biti’s and Biti’s Hunter, have the opportunity to sell products, reach online consumers Furthermore, Biti’s Hunter has also taken this chance to design their official website to offer information about their products and add a cart symbol where they make

a purchase right away while surfing the website.( Do Phu, 2022)

Culture

Biti’s has told its New Year story by launching a marketing campaign, “Go far to be truly back '' Thanks to this campaign, the sales revenue of Biti’s Hunter increased by 250% compared to Tet 2017, 60% higher than the sales target, and has managed to achieve its long-goal becoming the “Top of mind” brand in every Tet season (Brands Vietnam, 2018).Biti’s understand Vietnamese culture and the brand’s unique hashtag

#proudlymadeinvietnam “Biti’s Hunter Street Hanoi Culture Patchwork'' - on the occasion

of the 1010th anniversary of Thang Long Hanoi and ”Biti’s Hunter Street Saigon NDA” Biti’s has once again defined its destiny is to adorn Vietnamese identity and reinforce the pride of the whole nation, step by step dominating the footwear industry ( Vũ, Q (2021, March 19))

Political

Since the Investment Law (National Assembly) (2014) 67/2014/QH13 2020 took effect in July 2015, investors’ legitimate rights and interests, investment incentives, and investment from Vietnam to abroad are protected by the Vietnamese Government This law helps Biti’s attract foreign investors more easily Trade agreements allow Biti’s to take advantage of reduced tariffs both within ASEAN countries, EU, and the US to export company merchandise (Shira & Associates 2019) Thus, Biti’s diversified its market presence and reached out to more customers, especially international consumers

2.3 The S.W.O.T analysis

2.3.1 Internal analysis

Strengths

Biti’s has wide distribution channels, with more than 1500 retail distribution intermediaries and more than 150 stores across the country (bitis.com.vn (n.d.)), which makes this a competitive advantage for a broader customer approach and drive to better sales performance

Competitive price in comparison to quality with other brands has made Biti’s Hunter a superior consideration for price-sensitive customers

Biti’s has established a well-known brand name to Vietnamese consumers for being a high-quality national shoes manufacturer since 1982 (bitis.com.vn (n.d.))

Success in Vietnamese culture through ingenious sneaker collections and inspired marketing campaigns, making Biti’s connection with Vietnamese consumers more relatable

Weakness

The inspection of agency activities is not good, reducing the effectiveness of marketing with users Because of Biti's dealer network, it is difficult to manage all the activities of agents (Brade Mar (n.d.))

Biti's has not been active in the source of raw materials Only 40% of fuel is taken domestically because our country's footwear industry cannot take the initiative in input materials (Brade Mar (n.d.))

Biti’s is still limited in the product strategies compared to high profile names, since Biti’s Hunter's rebirth in 2016 was considered being late in the game after the entry of foreign brands Moreover, Vietnamese consumers’ preference for international brands, Biti’s struggles to compete with its competitors Nike, one of the Vietnamese most favorite sportswear brands (Brade Mar (n.d.))

2.3.2 External analysis

Opportunity

Biti’s has been collaborating with many big names in the Vietnamese entertainment industry like Son Tung MTP, Soobin Hoang Son, Dalab and continues to be the influencers’ first partnership choice (Phung, N (n.d.))

Rising GDP per capita in Vietnam (The World Bank 2020) drives Vietnamese consumers’ expectations to rise, Biti’s has better chances to improve their products, aiming for higher quality footwear at a higher cost

There are more than 45.6 million people using E-commerce and are expected to reach 70.9 million users by 2025 (Statista2020) This may benefit businesses like Biti’s in

numerous ways such as going global, better targeting, advertising and staying competitive

Threat

Strong competitors like Vans, Converse, Nike, Adidas are taking over Biti’s market share, particularly in the Sportswear segment Local footwear brands such as Ananas may become potential competitors (Brade Mar (n.d.))

The lack of systematic enforcement and the outspread of multi-channels E-commerce may lead to the sophisticated counterfeit goods issue and cause loss to the brand According to Phap Luat Plus, in September 2018, the market inspector in Hai Duong had detected and conducted administrative sanction on a local enterprise faking the logo of Biti’s on a parcel of sandal (Hải Sơn (n.d.))

2.4 Objectives

2.4.1 Qualitative objectives

Gaining more market share and promoting our Bitis’s product awareness, which make our target consumer will take buying our new collection into consideration and remember our product, service and brand

2.4.2 Quantitative objectives

Specifically, there are some quantitative objectives that the brand has to achieve

to be successful in this plan

First, about the market share Bitis is gaining 15% of the national footwear market

so the goal is that Bitis Hunter can boost the brand’s domestic market share to 18% in the next 3 years

Secondly, about the campaigns interaction in social platform such as Facebook, Tiktok,, Youtube, Instagram, so on

Total interaction: 1.5M

Original post: 6,000

Finally, Bitis Hunter can help increase the BItis’revenue, broaden the business and maximize profit

Increase the profit to up to 250B VND a year

Increase total revenue to up to 3,600B VND a year

Broaden the number of BItis’s shops to 230 in VietNam

2.5 Segmentation

Children (ages 0 to 7):

Parents purchase products for their young children depending on the products' shapes, comfort, safety, and stability They are prepared to spend much money on stylish, high-quality shoes

Children (ages 8 to 15):

Children at this age already have their own interests and ways of thinking Typically, parents purchase goods based on their children's interests Social media can quickly impact those pastimes Children frequently select their favorite character or a charming animal This has increased consumer interest in products with appealing design Teenagers and young adults (ages 17 to 25) :

Individuals in this age group typically make purchases on their own Vietnamese teenagers and young adults tend to be fashion-conscious and desire to make a statement.They are drawn to novel things and distinctive designs They seek out distinctive goods that fit their personality, lives, and the most recent fashions

Office workers:

They typically give attention to the patterns and colors of products Products must have simple shapes, traditional designs, and dark hues that are comfortable and convenient for customers Products might occasionally be both polite and elegant in addition to being contemporary and stylish

Older people:

Their decisions are made based on colors and ease They are concerned with both health issues and comfort

2.6 Target customer

The main goal of Biti's Hunter is to become a famous and loved shoe brand everywhere

To achieve this goal, Bitis focuses on researching, designing and manufacturing high quality footwear products that are tailored to the needs and preferences of customers Through the analysis of consumer preferences, habits and status, segmentation Biti's Hunter has divided the target customer into two objects:

First of all, "The cool kids" is being brought up as a top reach because most of the students have to wear school uniforms making shoes the only item to make them different and stand out from the crowd Most of them will want to experiment with different types of shoes These individuals tend to be easily convinced since they don't care much for quality, so influencer marketing strategies like partnering with famous brands or celebrity endorsements proven effective that Biti's Hunter is doing successfully

Biti's Hunter in Son Tung MTP's MV "Lac troi"

Going back to 2017, we have witnessed an unprecedented "sneaker fever" from a Vietnamese brand, a "fever" called Biti's Hunter When Son Tung wore Hunter Feast shoes in Lac Troi MV, Biti's Hunter really "caused a storm"

The shoes appearing with Son Tung can be considered a fragile butterfly that opens the terrible effect of the Biti's brand: With only 3 seconds of the product appearing in Son Tung M-TP's music video, Biti's Hunter sales increased 300% after one week of sale

2.7 Differentiating

Channel Differentiation:

A distribution system of Biti's products stretching from the South to the North with 07 branch centers, 156 marketing stores In China, Biti's has set up 04 representative offices with 30 total sales, more than 300 sales points to gradually bring Biti's products to dominate the border market which is full of this potential

With a potential Cambodian market, Biti’s has an official wholesaler of Cambo Trading Company to disseminate Biti’s products all through the domain of Cambodia Biti’s has exported to 40 nations worldwide, for example, Italy, France, England, USA, Russia, Japan, South America, Mexico, Cambodia, etc

Service Differentiation:

Biti’s also gives customers a chance to approach useful information about maintaining shoe condition, fake product identification, product information and experience-telling on its official Facebook Indeed, Biti’s offers the Loyalty program via the “Biti’s: Loyalty App” (Apple Store and Google Play available), where customers can accumulate points after purchases and redeem for coupons (Biti’s n.d.) This strategy is a way for Biti’s to encourage repeat customers, form brand loyalty, and make customers understand the purchasing experience values

Image Differentiation:

Proudly made in Vietnam: As a brand that creates a wave of #proudlymadeinVietnam positively and openly, Biti’s Hunter cooperates with the brand ambassador Viet Max to express Vietnam’s pride and calls for the community to join the ‘’Proudly Made in Vietnam’’ campaign

During the Covid-19 pandemic, Biti’s has launched the project “Cùng vẽ lên ni m t hào ề ự Việt Nam”, an exceptional assortment genuinely made by Vietnamese individuals By deconstructing the item into bits of canvas and sharing the edges on the web, the organization prepared and energized each Vietnamese specialists, inventive networks,

individuals - to make and sell their plans, roused by #ProudlyMadeInVietnam stories, created by Biti's Hunter

In 2021, Biti’s launched a new collection in association with Vietnamese artist Max called

“Biti’s Vietnam Arising” the first collection Biti’s has launched international- ly, as a strong affirmation that the Vietnamese market is growing to match the power of 5 continents

Product Differentiation:

For buyers who usually participate in sports or outdoor activities that require many movements, Biti’s shoes insist on elasticity and flexibility Biti’s sports shoes are produced with LiteFlex 2.0 sole technology used in sole manufacturing LifeKnit weave strap technology is used for high ventilation Biti’s also uses Phylon material to significantly reduce the weight of the shoe Inside, the padding is applied with antibacterial-tech and natural foot massage It is created like a spring with elasticity to relieve pressure during running (Viet Review 2020)

Biti’s has utilized AI technology benefits and released a collection called “Biti’s Smart,” These chips track their daily activities so that their parents can track their physical data and recommend the most appropriate activities for their children (Red Cat Motion 2018) 2.8 Positioning

Durability:

Using LifeTraction soles technology combined with rubber material, EVA antibacterial padding to increase friction, anti-slip, Biti’s Hunter helps the wearers to comfortably use

any weather condition and surface (Zing News 2020) Vans, Converse, and Ananas produce vulcanized shoes, which is also a stable shoe-making technology However, as their costs are relatively higher, Biti’s Hunter is more preferred than its competitors

Price:

Biti’s Hunter price is relatively low compared to other competitors’, but still higher than Ananas, which only cost people about 600,000 VND There is a link between brand reputations and price, where most foreign brands’ shoes are sold at a higher price due to their high-profile in the industry

Bitis shoes cost from 500,000 VND to 900,000 VND

Genuine Adidas shoes will have a price range from: VND 1,000,000 - VND 4,600,000 Genuine Nike shoes range from 2,000,000 to 10,000,000 VND

Media awareness:

Since Biti’s Hunter was first introduced in 2016, it generated a large amount of discussion

on social media (more than 21,000 discussion) in 4 months Biti's Hunter maintains an active presence on social media platforms, such as Facebook, Instagram, and YouTube However, other foreign brands have already established great recognition due to their long-life and profitable marketing strategies Nike and Adidas are the leaders in this field with a prevalent presence on social media, online articles, movies, and music

Endorsers:

Biti's Hunter has collaborated with various influencers, celebrities, and artists to endorse and promote its brand A series of posts about Biti’s Hunter created by KOLs with a large fanbase such as Quynh Anh Shyn, Huynh Tu, Hoa Minzy Recently, Musician and singer Phan Manh Quynh became the face of the journey "Going back" with the brand's first short film - "Let's go home early for Tet" Nike's endorsers include some of the biggest names in sports, such as LeBron James, Cristiano Ronaldo, Serena Williams, and Michael Jordan, they willing to pay more than any other (Zeegers 2020).Nike's endorsers are world-renowned athletes with a global reach and association with performance and sports, while Biti's Hunter's endorsers focus more on fashion, music, and entertainment within the Vietnamese market

3 Marketing mix

3.1 Product policy/ strategy in 2020 2023:–

3.1.1 Objectives:

Quantitative objectives

Bitis Hunter, with its lightweight, comfort, and breathability, provides users with efficiency and flexibility in daily and sports activities, while also integrating advanced technology and wearers supervisors to track their health numbers

Qualitative objectives

Create a new look for your customers about shoes, they are not just a pair of shoes but a companion who will always be there to witness and support you to achieve your dreams Bitis hunter have a wide range of items that are aimed at different purposes and are ideal for different events, changing their beliefs about shoes that are intrinsic without variety