principles of marketing final report

General introduction to the Biti's brand Biti's officially known as Binh Tien Consumer Products Company is a brand specializing infootwear production in Vietnam.. In 1992: Binh Tien Rubb

Ho Chi Minh City, May/2024

I Introduction

1 General introduction to the Biti's brand

Biti's (officially known as Binh Tien Consumer Products Company) is a brand specializing infootwear production in Vietnam It was founded in District 6, Ho Chi Minh City in 1982 by

Mr Vuu Khai Thanh

1.1 History of formation and development of the company

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In 1982: Mr Vuu Khai Thanh started his business with two production complexes, Binh Tien

and Van Thanh, on Binh Tien Street, District 6, Ho Chi Minh City, with 20 organizedworkers specializing in the production of simple rubber sandals

In 1986: The two cooperatives merged into a stronger entity, the Binh Tien Rubber

Cooperative, headquartered in District 6, Ho Chi Minh City Specializing in the production ofhigh-quality sandals and flip-flops, the cooperative's products were not only popular in thedomestic market but also exported to Eastern and Western Europe, contributing to thedevelopment of the country's industry

In 1989: Binh Tien Rubber Cooperative became Vietnam's first state-owned enterprise

authorized by the government to engage directly in import and export activities

In 1990: Binh Tien Rubber Cooperative invested in new technology from Taiwan and began

producing EVA foam footwear to enhance competitiveness against imported products

In 1991: Binh Tien Rubber Cooperative participated in the establishment of the joint venture

company Sơn Quán with SunKuan Company from Taiwan, specializing in the production andexport of sandals and flip-flops This was a breakthrough as it was the first joint venturebetween a private enterprise in Vietnam and a foreign company, with a cooperation period of

18 years

In 1992: Binh Tien Rubber Cooperative transformed into Biti's Consumer Product

Manufacturing Company, specializing in the production and distribution of various productssuch as foam sandals, sports sandals, leather shoes for both men and women, sports shoes,dress shoes, and flip-flops, which were sold both domestically and internationally

In 1995: Binh Tien Dong Nai Co., Ltd (Dona Biti's) was established, expanding the

production and business activities of Biti's

In 2000: Biti's opened a representative office in Yunnan, China, creating opportunities for

penetration and market expansion in China

In 2001: Biti's achieved ISO 9001:2000 certification for international quality management

standards awarded by BVQI and QUACERT organizations, demonstrating the company'scommitment to maintaining and improving product quality and services

In 2010: The ERP-SAP system was introduced, marking a significant turning point in the

information technology system

In 2016: Biti's became the first authorized partner of Disney Marvel in Vietnam.

Additionally, with a continuous commitment to innovation and creativity, Biti's returnedstrongly with the launch of the Biti's Hunter product line - a premium sports shoe product

In 2017: After several years of absence from advertising, Biti's returned with collaborations

with famous music stars such as Son Tung MTP and Soobin Hoang Son, launching

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inspired products to create a media frenzy, becoming a brand accompanying the experiences

of young Vietnamese

In 2018: The Happy Biti's project was launched, laying the foundation for building a

community of happy and effective working and learning

In November 2018: Mr Khai Thanh handed over the position of CEO to Ms Vo Le Quyen,

bringing about a major change in Biti's business strategy and culture, marking a new chapter

in Biti's development

1.2 Scale

Biti's began as two small cooperatives, Binh Tien and Van Thanh, located in Ho Chi MinhCity Today, in addition to its two original production facilities, the company has expandedits network to include 7 branches, 2 commercial centers, 2 business centers, 156 marketingoutlets, and over 1,500 distributors nationwide, as well as exporting products to 40 countriesworldwide Among the markets Biti's has penetrated are Russia, Ukraine, the United ArabEmirates (UAE), and Bahrain

At the beginning of 2021, Biti's constructed and inaugurated two large factories

consecutively: Biti's Bien Hoa Amata, covering over 7.5 hectares with an investment capital

of over 700 billion VND and a designed capacity of 18 million products per year The BaoTien factory in Tra Vinh was also established during the year, covering 16.5 hectares andproviding employment for over 6,000 workers

1.3 Mission and vision statement

1.3.1 Mission

Continuously improving and enhancing the quality of product supply in line with the essence

of the Biti's brand motto "Reputation - Quality"

Binh Tien Consumer Products Manufacturing Company commits to relentlessly improve andenhance the quality of product supply, meeting increasingly higher and diverse demands of3

our customers, in line with the essence of the Biti's brand motto "Reputation - Quality",building long-term trust with all customers.

1.3.2 Vision

Becoming a major consumer goods manufacturing company in the Asian region

The decision to establish a vision and assert its identity aims to develop Binh Tien ConsumerProducts Manufacturing Company into a strong and increasingly expanding corporation notonly domestically but also globally, maintaining its leading position in Vietnam and activelyintegrating with the international community, thus becoming a major consumer goodsmanufacturing company in the Asian region

2 Biti’s Hunter

In 2018, the Biti's Hunter footwear line officially debuted on the market, and its presence not

only shattered the monotony of the domestic sports shoe market but also providedVietnamese consumers with a fresh and innovative choice in the fashion world Since itslaunch, this footwear line has sparked a fashion craze unprecedented in Vietnam

The rapid success of Biti's Hunter is a testament to the creativity and adaptability of theVietnamese fashion industry Additionally, it demonstrates the confidence and ambition ofbrands in competing with international counterparts

2.1 Design

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The design of Biti's Hunter is notably creative and modern, contributing significantly to the

fame and allure of this footwear line

Biti's Hunter shoes feature a classic athletic appearance but are enhanced with subtle details

and refined lines, creating a sporty and fashionable look

Design and color variety: Biti's Hunter offers a diverse range of designs and colors,

allowing wearers to customize their choices according to their style and personal preferences.You can choose from simple solid colors like white, black, navy blue, or even pastel pink.Additionally, there are special editions with prints, patterns, or collaborations with otherfamous brands to create uniqueness and personalization

Sleek design: Despite its athletic style, Biti's Hunter maintains elegance and versatility in

design This makes the shoes suitable not only for sports activities but also for everyday wearand even fashion events

Thick sole design: Biti's Hunter shoes often come with thick and comfortable soles This not

only provides comfort while wearing but also adds height to the wearer, instilling confidenceand a unique style

Ergonomic design: Biti's Hunter features meticulous ergonomic design, fitting the contours

of the foot This ensures that the shoes snugly fit the foot comfortably, reducing slipping andfoot fatigue

With their classy and diverse designs, they offer options suitable for various styles andindividuals, making this footwear line a statement of contemporary fashion

2.2 Synthetic plastic material

The premium synthetic material is a key distinguishing factor of Biti's Hunter, contributing toits prominence and popularity in the sports shoe market Here are some important pointsabout this material:

Lightweight: Biti's Hunter is made from premium synthetic material, making them

extremely lightweight This makes movement and daily activities comfortable and free In particular, these shoes are an excellent choice for outdoor and beach activities whenyou need comfort and don't want to wear heavy shoes

fatigue-Easy to clean: Synthetic material not only makes the shoes lightweight but also easy to

clean You can easily wipe and clean the shoes after a long day or when exposed to mud anddirt

Water-resistant: Synthetic material is water-resistant, making these shoes suitable for wet

weather conditions or when you have to move in a moist environment They help protect yourfeet from water and moisture from the ground

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Durable: Despite being lightweight, the synthetic material used in Biti's Hunter is highly

durable, ensuring that the shoes can withstand daily wear and sports activities

Synthetic material is not only a functional choice but also contributes to the fashion design ofBiti's Hunter It makes these shoes versatile, suitable for various occasions and personalstyles

This is a clear example of how Biti's Hunter is not just a fashion product but also practicaland convenient for users

3 Our new products

Recognizing that Biti's Hunter has been offering incredibly beautiful and high-quality productlines in the market for all ages, however, there hasn't been an expansion and development for

the university student market Therefore, our group has initiated a project called "Biti's Hunter X VNU Marketing Campaign" aimed at launching new Biti's Hunter product lines

to the market, creating a strong impression on the students of the Vietnam National University, Ho Chi Minh City – VNU-HCM, while also reinforcing essential knowledge

about Marketing With the desire to build further loyalty among university students and the

favor from the brand, Biti's Hunter X VNU is a combination of Biti's Hunter sports shoes

specifically designed and produced for the university student segment of various universities

under the Vietnam National University, Ho Chi Minh City – VNU-HCM Currently, we

plan to introduce the following 3 product lines:

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Biti’s Hunter X UEL

It is a combination of Biti's Hunter and the style of the University of Economics and Laws

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Biti’s Hunter X IU

It is a combination of Biti's Hunter and International University (IU) - VNUHCM style

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Biti’s Hunter X USSH

It is a combination of Biti's Hunter and the style of the University of Social Sciences and

Humanities

Biti's Hunter X VNU utilizes high-quality materials with excellent durability and moderntechnology, along with advanced processing techniques to produce shoes that are uniquely9

designed to represent the distinct characteristics of each university This will provide studentswith stylish, durable, and elegant shoes that embody a strong sense of individuality for eachuniversity.

II Analysis of the marketing environment affecting Biti’s

1 Macro environment

1.1 Demographic

According to data from the 2021 population report, Vietnam's population is 98.47million people With the total population living in urban areas accounting for about 37% ofthe total population A large population leads to a large demand for shoes, which is the fullconsumer market for Biti's Young population structure, mostly in working age, leads toabundant human resources, creative thinking, easy to integrate

Data according to the General Statistics Office over the years

Vietnam's economic growth tends to increase in 2019, lower than 2018 but higher thanthe growth rate of 2011 - 2017

Economic growth leads to more customer spending, companies can expand operate andearn high profits

b) Profit

According to legal documents of the State Bank of Vietnam, the basic interest rate in

2008 ranged from 1.4% - 8.5%, in 2009 it was 7% and the current basic interest rate is 9%With a base interest rate of 9%, the ceiling interest rate is 12%, this makes it difficult forbusinesses to borrow capital to invest, expand production,

c) Inflation

Our country's core inflation rate in August 2018 only increased by 1.54% over the sameperiod, currently still at a low, average level According to data from the General StatisticsOffice, the core inflation rate in December 2018 increased 0.09% over the previous monthand increased 1.7% over the same period last year Average core inflation in 2018 increased

by 1.48% compared to the average in 2017

In general, our country is performing a good role in controlling inflation Inflation isbalanced, currency value is less volatile Therefore, basic customer spending needs have notdecreased significantly

1.3 Natural environment

The natural environment provides many raw materials for Biti's production process.Resources are increasingly depleted, leading to the cost of investing in fuel to operategrowing equipment becoming more expensive Investing in the treatment of environmentally

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polluted waste also causes a loss of a large amount of business revenue, affecting thebusiness's ability to make a profit.

1.4 Technology

In the first 18 years of the 21st century, there has been a remarkable development intechnology, leading to bringing significant impacts to Biti's Technology is applied in thedesign and production process to create products that are both effective in quality andcomfortable Developing technology makes communication with customers faster Customerscan order and pay without having to go to the store, making purchasing easy and attractingmany customers

1.5 Politics - Law

Each business sector has its own legal documents

Legal regulations on product safety and quality along with private label brands causeBitis counterfeit products to be eliminated In our country, policies on protecting consumerrights are relatively good, creating peace of mind for consumers, with many consumersbecoming loyal customers to the brand

1.6 Culture - Society

In general, in Vietnamese culture, footwear, especially sandals, are the most popular.Vietnamese people of the 8X and 9X generations are mainly concerned with the durabilityand reasonable price of shoes Today, Vietnamese consumers are young, like dynamism,experience and they have their own style, opening up a new market segment with theopportunity to integrate into the world shoe market

- Extensive distribution system (Agents, stores, supermarkets, shopping centers,international) thanks to which we can bring products closer to customers

- A talented and experienced leadership team can come up with effective strategies tohelp the company grow

- Pay attention to communication and promotion strategies; Well-invested marketingstrategies help promote growth from the number of buyers

- Long-standing reputable brand: The first company in the footwear industry to invest in

a system from Taiwan; The first company to launch high-quality footwear on the market with

a long-standing reputation that has been built, deeply embedded in the minds of consumerswith high-quality products

- Lack of human resources in the design team slows down the process of producingfinished products

- Competing with many big, famous brands makes it difficult to dominate the market

- Due to the epidemic situation, consumers have less need to go out (travel, go out )causing trade to decline, and the amount of goods consumed is low

5 Pressure model

1 Competitors in the industry:

- Are individuals, companies and businesses that produce the same product type, servethe same target customer segment and satisfy the same customer needs This force is the mainfactor that determines the level of competition and profitability of an industry - Currently,Biti's is competing with typical footwear brands such as Bita's, Vina shoes, Ligamex, theyhave advantages in price and design In the future, the market will continue to develop,expand and competition will increase

2 Suppliers: (Who holds the power?)

- Suppliers are organizations or individuals involved in providing goods or services onthe market

- Biti's is completely capable of being put under pressure by current suppliers when thereare too many footwear brands being launched continuously, the demand for inputs increaseswhile the supply does not change, leading to an increase The level of competition betweenfootwear companies Makes it difficult to negotiate with suppliers and has to accept highnegotiated prices These suppliers must be cheaper from other places, …

3 Potential competitors:

- Potential competitors are individuals, companies, and businesses that have not yetcompeted in the same industry but are likely to enter the industry when the opportunity arises.This is one of the biggest threats to businesses

- The Vietnamese shoe or shoe market has so far had most of the major shoe brands inthe world Therefore, competitors who want to join must have strong investments, have trulyeffective campaigns to attract and change consumer loyalty, and must also convincedistribution channels by accepting Receive high commission share

4 Customers:

- Be a final consumer, distributor or industrial buyer

- Biti's customers and distribution intermediaries are very large, they are from manyclasses with different economic abilities, so they can request how the product should beincreased, decreased or changed to fit the needs their hearts the most

5 Substitute products:

- Substitute products are goods and services that can replace other goods and services thathave similar values, benefits, and uses

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- With Biti's, because of the variety of products such as shoes, boots, boots, etc., thepossibility of replacement is not high but not impossible For example, a pair of casual shoes

at Biti's costs the same as a pair of boots from another brand, so buyers can choose the bootsbecause they have a price advantage and can be used on important occasions

2.2 Supplier

- Leather: Wei Tai Leather Joint Stock Company

- Rivet buttons, lock rings: Priority is given to domestic companies - Tim Do Productionand Trading Company Limited

- Plastic eyelets and buckles: Trieu Phong Company Limited

- Synthetic plastic resins: Imported from the Netherlands and France; PolystyreneVietnam Company Limited - Heels and soles: Tae Sung Company; Trieu Phong CompanyLimited

The purpose of choosing the above companies is based on the need to diversify producttypes and ensure product quality for customers, so nearly 70% of raw materials are fromabroad and especially bring partners a Best business policy, win-win

2.3 Intermediaries

Currently, Biti's is operating effectively with a 3-level distribution channel: Manufacturer(Agent) -> Wholesaler/wholesaler/retailer -> Consumer Biti's can cover the market and reachconsumers regularly and quickly Customers can easily buy Biti's products, it is veryconvenient with a variety of types at the place of sale, customers can come to the place to tryand experience the products directly

Biti's warehouse and storage system is also convenient for intermediaries Helpscompanies transport products from the point of origin to the place of consumption quickly

2.4 Customers

Biti's targets all customers from workers with average salaries to the upper class insociety, from the elderly to children, from domestic to exported abroad Every customerbecomes Biti's target market In addition, shoe distribution businesses are also consideredBiti's customers

Biti's customer characteristics:

1 Children and teenagers: Parents are the buyers

From 0 to 7 years old: Parents care about safety, durability and comfort.

From 7 - 15 years old: Have their own interests and experiences This age group's

preferences are easily influenced by mass media and tend to favor beautiful, outstandingdesigns

2 Young people:

At this age, they buy and pay for themselves In general, VIETNAMESE youth havefashion trends and want to assert themselves This is also a young age group that likesdynamism, so they are attracted to new, special, innovative designs that have their ownidentity that matches their aesthetic taste

3 Middle-aged:

They are often interested in products with simple designs, classic style, slightly darkcolors, comfort and good durability For office workers: The product must ensure politenessand elegance For workers: The product must have features suitable for the job and anaffordable price

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- Products are not innovated tosuit the market.

-Biti’s knows how to grasp the psychology of young people when inviting famous idolslike Son Tung MTP and Soobin Hoang Son to be brand ambassadors Together with Erik,Dalab is winning the hearts of the public with inspirational songs -Biti's also organizescontests such as a debate contest around the topic "Going to return" with KOLs and thecontest "Share the most meaningful trip of the year

- Start your journey of Going to return" with Biti's Hunter" these contests are participated

by many people and are also very popular with the public

- And in this communication campaign, the support of the press is indispensable Massmedia channels and newspapers regularly update information about debates and campaignactivities

- The latest information such as Phos Biti's Hunter Touching Stone's Central Region

III Customer research

1 Objectives and goals

a Current situation

Vietnam ranks second globally in footwear exports, constituting approximately 10% of thetotal global export volume Notably, by 2020, Vietnam had ascended to the position of theworld's leading exporter of canvas shoes in terms of value, surpassing even China, as14

reported in the World Footwear Yearbook Vietnamese footwear enjoys a wide reach, beingexported to over 150 markets worldwide, with a particular focus on key markets such as the

US, EU, China, Japan, and the UK In 2023, Vietnam's footwear exports generated over

$20.2 billion USD, marking a 15.3% decline from 2022 Data from the General Department

of Customs indicate that Vietnam's footwear exports in December totaled over $1.8 billionUSD, declining by 3.6% compared to the previous month

In the field of sports shoes, when the majority of products in these categories belong to bigbrands like Adidas, Nike, or Puma, domestic brands have too few choices for customers.Biti’s still maintains its position in the hearts of consumers as it has been around for a longtime and offers quality products at affordable prices

Furthermore, there has been consistent interest in the keyword "sneaker," with a minimum of

49 weekly searches recorded from May 7, 2023, onwards Predominantly, these searchesoriginate from Ho Chi Minh City Moreover, Ho Chi Minh City emerges as the primaryregion in seeking information about the Biti's brand, with the brand's search volumeconsistently hitting at least 50 times per week from May 7, 2023, onwards These statisticsserve as empirical evidence attesting to the widespread popularity of the Biti's brand

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With an extensive legacy of nearly four decades centered on "gentle foot care," Biti's hasingrained itself deeply within the consciousness of domestic consumers The introduction ofBiti's Hunter signifies a refreshing entrant into the athletic footwear market, heralding aremarkable ascent to prominence within the Vietnamese footwear landscape Biti's Hunterstrategically leverages contemporary design aesthetics, aligning with the rapid turnoverinherent in the fashion footwear product lifecycle Boasting enduring quality, commendabledurability, and competitive pricing, Biti's Hunter has garnered trust and commendations fromnumerous young consumers who recommend it to their peers and family members TheHunter line unmistakably targets and prioritizes the youthful demographic, epitomizing Biti's16

commitment to engaging with customers aged 17 to 25 Beyond being aesthetically pleasingsportswear, the Hunter collection, with its evocative name, conveys a message to its targetaudience: "Biti's evolves to cater to your evolving needs, and Hunter embodies the qualities

of a hunter—speed, focus, and precision—to stand by you as you conquer future challenges

on your journey."

b Objectives

In the pursuit of refining business strategies and enhancing marketing approaches for Biti'snovel offering, Biti's Hunter X VNU, a proactive approach is advocated, entailing theestablishment of clear objectives prior to embarking on market research endeavors within theVietnamese market The overarching objective is to gain deeper insights into customerdesires and requirements, thereby stimulating purchase intentions and fostering adoption ofthe new service By comprehensively understanding customer behavior patterns, thisinitiative endeavors to instill a pioneering spirit within Biti's, propelling the brand towards theforefront of service innovation and facilitating expansion of market presence within theindustry Primary research endeavors are strategically structured to align with objectivesspanning three critical domains: business, marketing, and research

● In the realm of business strategy, the development of Biti's Hunter x VNU is driven

by specific objectives:

○ Firstly, the initiative aims to fortify Biti's brand presence within its targetcustomer segment and cultivate potential clientele, thus fostering brand growthand competitiveness comparable brands targeting the same demographic Thisendeavor is envisaged to bolster market share and confer a relativecompetitive edge compared to industry peers

○ Secondly, by pioneering the provision of uniquely designed footwear productstailored to students while maintaining affordability, Biti's endeavors tocompete effectively with foreign brands currently dominating the Vietnamesemarket This strategic approach presents an opportunity to carve out adistinctive niche and challenge the dominance of international competitors

● Marketing is recognized as one of the pivotal contributors to Biti’s sustained successover the years Biti's Hunter targets the youthful demographic aged 18-24, comprisingindividuals with a penchant for exploration and experiential pursuits Consequently,the marketing campaign for Biti’s Hunter x VNU aims to enhance the brand's

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footwear market share, perpetuating the cultivation and consolidation of Biti’s brandimage as customer-centric, empathetic, and amicable.

● In terms of research objectives, a comprehensive understanding of target customersnecessitates discerning their preferences and affordability levels concerning footwearusage Furthermore, the company is anticipated to formulate advertising strategies byconstructing detailed user profiles

c Goals

Drawing from Biti's existing circumstances and predefined objectives, Biti's Hunter x VNU ispoised to attain the following benchmarks:

● Within the business domain, Biti's anticipates a 10% augmentation in total revenue

● In the marketing realm, the company aspires to devise strategies geared towardsbolstering customer retention and fostering loyalty

● The outcomes derived from conducted research underscore the importance ofcomprehending the preferences of target customers towards novel offerings.Consequently, the company aims to formulate adaptable advertising initiativestailored to fulfilling the desires and requirements of these discerning consumers

2 Customer research

a Research process

- Determining the research objectives

- Implementing the methodology of desk research: using resources of secondaryinformation and research as a foundation for discovering the Viet Nam market, ride-hailing industry, customer segmentation, Biti’s, its current situation and makingcustomer consumptions about their demands

- Implementing the primary research by two methodologies: qualitative research

and quantitative research

❖ Synthesizing, analyzing the results, and giving some conclusions:

- Connecting complete research results together

- Determining the targeted customers for GrabSend and identifying their pain points

- Determining the central insights

- Giving accurate conclusions and proposing appropriate solutions

b Customer research planning: Quantitative research and qualitative research

● Tool: Google Forms

● Implementation methods:

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○ Developing an expected questionnaire through Google Forms and conducting

a survey of research subjects

○ Data saving

○ Processing and selecting appropriate data

○ Data analysis based on refined information

○ Giving conclusions about the demand, motivation, and desire of targetedcustomers based on analyzed data

- Research subjects:

Income Below 3.000.000VND to below 10.000.000VND

Geographical location HCM City

Think and do Exhibits a preference for dynamic environments, seeking

novel experiences, and engaging in self-expressionBehavior Selecting renowned brands, quality products, at affordable

prices

Demand Showcase their identity through the products they

incorporate into their livesThe number of interviewees was equal in terms of gender

c Research details

Link Google Forms

- Form: Google Form through Gmail and Facebook

- Scale: College, university, postgraduate in Viet Nam

- The total number of samples collected: 198

- There are 180 valid samples remaining, the final sample size is n = 172

- After cleaning, processing the data, we get the following information:

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