TARGET MARKET AND ENTRY METHOD 0.0.00 cee 15 4.1 Shopping behavior of Vietnamese people cc cccecesessesseessesscetecseceserssenseesseneeeaes 15 ALL Consumer behavior ố ốẽ
Sneaker shopping behavior of Vietnamese people .c ccc eeceseesseesteeenteeeneee 15 A.2, Target CUSOMETS “4a
Vietnamese people are willing to spend millions of dong to buy a pair of branded shoes made in Vietnam, but Vietnamese-brand sneakers are struggling to find a foothold in the market Gradually, people began to spend more selectively, focusing on essential goods and reducing spending on fashion and beauty
Therefore, the demand for footwear shopping also decreased People pay more attention to the durability of a footwear product However, for some people with a good income and a part of young people, they still consider shoe shopping an
15 indispensable thing to express their values, update trends, and are willing to spend a lot to buy new, rare shoes on the market
Adidas' target customers belong to a dynamic group of men and women with separate product groups, most of whom are between the ages of 14 and 40 Customers are working people, students, or sportspeople The majority of customers have an average income that is quite enough to spend on shopping.
Consumer behavior ẽ
Buying for personal needs: When buying sports shoes, people often pay much attention to the style, color, and style of the product The chosen sneakers must match your personality and highlight your style
Purchase due to business needs: The selected product requires high specialization, certainty, and maximum safety for users
Buy due to communication needs: This is a product that not only represents the user but also represents the whole team Users are willing to spend large amounts of money to buy suitable products The product must bring luxury and class to the user
Especially, consumers in the Millennials and Generation Z age groups have the following outstanding behaviors:
- Shopping activities are mainly conducted through social networking sites
- Be loyal to the brand, and ask the brand to understand and empathize with them
- Learn more about the product before you buy
- Consumption is associated with ethical attitudes
- "Hard-core loyals": consumers always buy a brand
- “Soft-core loyals": Those who are loyal to two or three brands
- "Switcher": Consumers do not show loyalty to any brand
Benefits sought: cost-effectiveness and aesthetic Personality: enthusiastic and positive
The consumer's preference and use of foreign goods partly comes from the desire to assert their class, besides the very good product quality and the unique- strange factor in the design, which can be noticed in the psychology of consumers when deciding to buy a product
Strong brand: Adidas has used its strong brand to attract consumers in Vietnam They have focused on building advertising and marketing campaigns that focus on product value, design, and quality
Diverse design capabilities: Adidas has adapted and customized products to suit the culture and fashion style of consumers in Vietnam They offer different models, colors, and designs to meet the diverse preferences and needs of their customers
Knowledge and experience: Adidas has long-term experience operating in many global markets, from which they have the ability to understand the cultural diversity and markets in Vietnam, from the way people shop to local fashion trends
Finance: With strong financials, sales revenue is 860,577,000 euros and operating profit is 51,635,000 euros Adidas has the ability to invest heavily in store openings, advertising, and marketing to build its brand and attract the attention of consumers in Vietnam
Distribution system: Adidas has used its global distribution system to open stores and reach customers in strategic locations in Vietnam They have partnered with local distribution partners to ensure their products are available at key retail locations
Marketing and advertising campaigns: Adidas has invested in marketing and advertising campaigns to create awareness of their brand and products in Vietnam
Events, fashion exhibitions, and media activities help create attention and build trust among consumers
4.3.3 Government policy on foreign investment
Favorable laws and regulations for foreign investment: The Vietnamese government has created a stable business environment and favorable foreign investment management and tax policies, supporting Adidas and other businesses as they expand operations into the Vietnamese market Decision No 109/2007/QD-TTg, dated July 17, 2007 of the Prime Minister, promulgating the Regulation on formulation and implementation of the National Investment Promotion Program in the 2007-2010 period; establishing a support group for large-scale potential projects with great influence on the locality; promulgating the list of national projects calling for FDI in the period 2006-2010
4.3.4 Adidas's penetration method in Vietnam
Subsidiary with 100% equity from the parent company overseas Adidas has established a subsidiary company with 100% capital from Adidas International B.V (Amsterdam, Netherlands) The decision to establish a subsidiary has been considered since 1993, when Adidas surveyed the Vietnamese market Opening a company with 100% foreign capital makes Adidas fully autonomous in all its activities By having a subsidiary in Vietnam, Adidas is able to optimize its business, including managing the storage, distribution, and marketing of products more efficiently
Government policy on foreign 1InVesfIneIiL óc c2 1213311151551 xe 18 43.4 Adidas's penetration method 1n V1etnam c2 213 1321351111115 55125, 18
VIETNAMESE MARKET IN THE NEXT 3 YEARS
Sporty, dynamic design, suitable for all customers who want to express their personality Applying advanced technologies with the goal of protecting customers’ health Crafted from ADIDAS shoe products have the above differences, uses, and benefits, so we position ADIDAS shoes as "As a health protection product line, durable, defying time and space, helping consumers have the best experience at an affordable and suitable price."
Price a a we, new balance Puma
Figure 7: Adidas brand positioning map 5.2 COMPETITOR
Adidas' current competitors in the Vietnamese market are mainly the following brands:
- Ananas: Ananas shoes have been on the market since 2010 However, in recent years, Ananas has gradually gained the trust of young people, becoming stronger and stronger to develop a popular local brand up to the present time
- Biti’s: Over 39 years of production and business, with numerous ups and downs and difficulties Currently, Biti's has expanded and flourished alongside the nation,
MARKETING STRATEGY TO PENETRATE THE VIETNAMESE
Marketing Strategy ccc Ắ Ả
Increase brand awareness to 90% among potential customers by 2023 Increase potential customers' brand and product understanding by 70% Increase the customer trial rate to 20% in 2023
5.3.2 Marketing Plan in 3 years a Product
"Becoming the best sports brand in the world" is the mission that Adidas constantly pursues, and product strategy is a core part of how the brand can achieve its goals Given the strengths of the brand and considering its limitations, here are some suggestions for strategy and points for improvement in Adidas products over the next
Product features and quality: Adidas is one of the largest and oldest sportswear manufacturers in the world Adidas' mission is "becoming the best sports brand in the world", so with every product made, the quality of Adidas products has always been proven throughout the years through quality, design, and quality sophisticated design, lightweight, durable, comfortable to move, and suitable for all types of customers: men, women, and children Adidas always tries to bring the best products Adidas products are heat-resistant, lightweight, durable, and highly elastic by applying BOOST technology to both mid-range shoes and Springblade technology to help create a thrust to push the shoe back Using polyester material has the advantage of being soft, avoiding brittleness, and providing a comfortable feeling for a long time Although it is only in the mid-range price range, the quality and durability of the product are not inferior to those in the high-end segment Technologies are always focused on research and development to improve their ability to produce the best shoes
Packaging Products: Packaging for shoe products includes shoe boxes and bags Both the box and the bag use paper materials for the purpose of environmental protection, in line with the trend of environmentally responsible living
- Bag: Has a stand-up design and has a handle, matching the design of the shoebox, using a minimalist design with monochromatic tones, highlighting the Adidas logo and product information in the middle With the design, customers can easily identify the brand, which creates more spiritual value for customers when buying products In addition, it is possible to focus on investing in the color and design of the bag according to consumer trends, such as the color scheme according to the color palette of the year or the design of the bag depending on the product line, creating more accents and value for the product The bag is the outer part and also directly speaks to the value of the brand, contributes to creating more value for customers, and is an effective marketing tool, so it should be emphasized in parallel with the product
- Shoe boxes: In the mid-range segment, Adidas shoe boxes not only protect the product but also create a highlight for the brand and the product inside The box must have a solid design that fits the product, and the color and texture must match the design of the product inside, emphasizing the difference of the product compared to other products and contributing to the trust of customers customers for the product
- Localization is an indispensable part of entering international markets; creating a trend or a cultural trend in Vietnam will help businesses approach and connect customers with the brand Making use of packaging to let customers see the respect and priority of the brand for themselves makes a difference in the design of culture-based packaging, such as printing some typical Vietnamese cities on the
21 website The reverse bag with the logo is also a way to create sympathy and love for customers
Product support service: To be able to create trust with customers about the product, Adidas needs to pay attention to product support services
- It is necessary to build a team with sufficient expertise to be able to advise on information as well as solve problems or answer questions from customers
- For products that are sold, it is inevitable that customers will make mistakes with the product or that customer needs will change, and it is important for customers to have a good experience with the product and trust in the brand Adidas needs to have a good exchange, return, and refund policy Besides, shipping services also need to be considered for customers buying online It is possible to cooperate with a number of local partners, such as Fast Delivery, Ahamove to bring products to customers or ship products when customers need to exchange or return them quickly
New product development: Diversifying product lines helps the brand get closer to the diverse needs of customers and create a competitive advantage over competitors Adidas needs to focus more on launching new products because competitors are always judged to have more diverse products It is possible to consider, research, develop, and produce a number of other product lines, such as:
- Features: basketball shoes, smart shoes with a variety of features such as heart rate measurement, steps, etc., specialized shoes for people with disabilities or problems with bones and joints, etc
- Fashion: Constantly updating trends and creating trends with modern, disruptive, diverse designs is essential for new products when coupled with product features
- Fashion trends are like a cycle of the development of old and new trends, so brands can take advantage of designs that have achieved achievements from the launched line and create designs that achieve certain achievements Add new products and improve quality b Price Continue to use skimming and bidding strategies Combined with conventional products, Adidas offers a stable price, paying attention to competing with current competitors such as Nike, Reebok, and Puma
As for products that are about to hit the market in these 3 years or have a unique design, Adidas continues to use a skimming price strategy In addition, Adidas should expand its products across price ranges from high to low
22 c Place Expanding Store Network: The company can continue to expand its number of stores directly or through local partners Opening stores in strategic locations and in new markets can increase access to customers For instance, Adidas could consider opening an additional flagship store in a major shopping center in Hanoi, Vietnam This store could not only showcase high-quality Adidas products but also create a unique shopping experience with sports events and interactive activities
Enhancing Online Presence: With the growing trend of e-commerce, the company can focus on developing its online store, providing convenience for customers, and offering a comprehensive shopping experience Adidas's online store can provide personalized fashion advisory services using artificial intelligence Customers could interact with a chatbox to receive style suggestions and product recommendations tailored to their preferences
Collaborating with Distribution Partners: Adidas can maintain its collaborations with local distribution partners to access challenging markets This approach helps broaden the distribution reach and enhance the global presence By extending Adidas's presence to other cities with potential, the company can gather market insights and make informed decisions for long-term market development beyond major cities
Integrating New Technologies: Leveraging advanced technologies such as artificial intelligence and augmented reality can improve the shopping experience Adidas could develop an AR-based shoe fitting app, allowing customers to "try on" shoes using their smartphones before making a purchase Additionally, integrating Al- driven foot measurement standards can provide customers with an overview of Adidas's shoe offerings This integration could also allow for convenient online shopping, leveraging Al-driven measurements d Promotion Marketing Campaign with insight: "Fashion trends are constantly changing in the age of multicultural fashion, and | feel lost in the trends and my values 1 admire new things, but I always respect values traditional Therefore, it is difficult for me to determine the fashion style that suits my lifestyle as well as express my personality and preferences in many ways, especially in the confusion between modern shades and colors classic, so that ] can confidently assert myself."
Big Idea: “One moment, BUT not one style”
Explain big ideas: In one moment, not just one but many individuals showed their own style Style here 1s not only fashion style but also includes the lifestyle of each person "Not one style" here also has another meaning, which 1s that