principles of marketing subject developing a comprehensive one year marketing plan for bitis hunter in vietnam

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TRƯỜNG QUỐC TẾ _KHOA QUỐC TÉ - ĐẠI HỌC QUỐC

VNU-INTERNATIONAL SCHOOL GIA HA NOI

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INS2003 06 Group 7 Principles of Marketing

TABLE OF CONTENT

Executive summary

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EXECUTIVE SUMMARY

Biti's Group is currently developing a comprehensive marketing plan for Biti's Hunter, an existing product in Vietnam A marketing strategy serves as a detailed roadmap that outlines where your money is allocated and when It enables effective management of advertising expenses, tracking of expenditures, revenue management, evaluation of promotional costs in relation to sales,

and assessment of the overall effectiveness of marketing initiatives Additionally, it ensures that

resources allocated for product development are utilized efficiently A well-crafted marketing strategy maximizes resource utilization A successful marketing strategy should encompass the following key elements The main objective of this report is to create a thorough business and marketing plan specifically tailored for Biti's Hunter, a product offered by Biti's company Our team has diligently conducted research on Biti's Group, employing a combination of local and international business methods Our findings draw from a range of credible sources, including online platforms and reputable marketing literature, in addition to key insights derived from the Principles of Marketing course

1 BITT’S PROFILE

1.1 Introducing the company

Biti's Company is a renowned footwear manufacturing company located in Vietnam The company's official name is Binh Tien Consumer Goods Production Co., Ltd (Biti’s), which was established in 1982 by its founder, Vuu Khai Thanh The company's slogan "Nang niu ban chan Viét" translates to "Nurturing Vietnamese feet" and represents their commitment to providing high-quality footwear to the Vietnamese people Biti's Company comprises two member units, namely Binh Tien Consumer Goods Manufacturing Company Limited (Biti’s) and Binh Tien Dong Nai Company Limited (DONA Bitt’s) [1] Biti’s Company has achieved exceptional accomplishments over the years It has been recognized as Vietnam's National

Brand Value in 2008 and 2010 It has won the "Top Brand of Quality Goods in Vietnam" award

and has been recognized as a prestigious premium Vietnamese brand by the Vietnam Federation of Science and Technology Associations Throughout its 40-year history, Biti's has prioritized six core values: prestige, quality, change and improvement, development solidarity, corporate advancement, and society building Biti's has evolved and developed with the

country, becoming a reputable, reliable, and familiar brand with consumers, after more than 40

years of manufacturing and business activities with numerous ups and downs and problems Vietnamese people are proud of a "national brand" in the realm of distinguished and high- quality footwear In conclusion, Biti's Company has established itself as a reliable and

trustworthy brand in the Vietnamese footwear industry With a commitment to quality and

exceptional accomplishments, Biti's continues to be a leader in the market 1.2 The process of formation and development

From a small industrial base in 1982 to a cooperative called Binh Tien in District 6 that specializes in the production of rubber sandals with a few dozen employees and, above all, a

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heart for the country's economic progress Biti’s has overcome many challenges during the

subsidized economy thanks to loyal owners However, over the past 40 years, Binh Tien

Consumer Goods Production Co., Ltd (Biti's) has progressively developed for itself a production and export strategy of the times, developing a Biti's Footwear brand connected with consumer requirements and tastes, much like a "tireless footstep" Biti's company is now a powerful unit, displaying a breakthrough in the sphere of footwear production and business; they have adequate people, material, and financial resources to improve the profession and achieve better outcomes

1.3 The scale of operations

Biti's distribution system comprises seven branch centers, 156 marketing stores, and over 1,500 retail distribution intermediaries, providing jobs for over 9,000 people [2] Biti's Corporation and Dona Biti's Company produce around 20 million pairs of shoes annually, offering a variety of designs, including high-quality sports shoes, trendy women's shoes, and leather western shoes Biti's has established four representative offices in China, with 30 total

sales and over 300 sales outlets, to expand into the cross-border market Its official distributor,

Cambo Trading Company, distributes Biti's products throughout Cambodia Biti's products are

sold in over 40 countries worldwide, including Italy, France, the United Kingdom, the United

States, Russia, Japan, South America, and Mexico Biti's is trusted as a processing partner for numerous large-value transactions with well-known brands such as Decathlon, Clarks, Speedo,

Skechers, and Lotto 1.4 Mission and Vision e Mission

The provision of goods that are faithful to the meaning of Biti's brand identification

"Prestige - Quality" must be constantly improved Binh Tien HTD Production Co., Ltd is

dedicated to continuous improvement, raising the caliber of product supply while satisfying customers’ broadening and increasingly demanding needs Biti's brand "Prestige - Quality", builds long-term trust for all customers

e Vision

With the point of view of "innovation for the company's mission of existence and development", Biti's is currently interested in building a long-term and sustainable investment strategy Decided to build a vision and affirm the appearance to develop HTD Binh Tien Production Co., Ltd (Biti’s) into a strong company not only in the country but also reaching out to the world, maintaining its leading position in the world, leading in Vietnam, and actively integrating internationally, becoming a major consumer goods manufacturing company in Asia

e Core factors

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Biti's organizational culture is built on a foundation of six core values This is also the company's long-term strategy for sustainable development:

- Priority is given to prestige

- Quality assurance

- Continuous innovation - Collaboration to generate profits - Encourage business development

- Contribute to creating a more affluent and successful society

1.5 Environment Analysis in Vietnam

In the realm of domestic trade, the footwear industry stands as a prominent contributor to

the country’s export turnover, representing approximately 7% of the total As per data from the General Department of Customs, during the initial nine months of 2022, footwear exports surged to USD 21.21 billion, reflecting a remarkable growth rate of 36.6% Specifically, footwear exports accounted for USD 18.15 billion (an increase of 36.3%), while exports of bags and suitcases reached USD 3.07 billion (up by 38.1%) in comparison to the corresponding

period in 2021 [3]

Throughout 2021, governmental measures enforcing social distancing to combat the pandemic resulted in a significant decline in the number of consumers frequenting modern retail venues such as shopping malls, supermarkets, and hypermarkets However, the demand for sportswear witnessed a boost due to heightened health awareness and government initiatives promoting regular exercise

Despite international brands like adidas and Nike dominating the market, local brands such

as Biti’s have gained popularity among the younger demographic owing to their vibrant designs and dynamic marketing campaigns Biti’s, striving to provide customers with a comfortable, premium, and lively shopping experience, aims to compete on par with renowned international brands In addition to Biti’s, local brands like Juno and Vascara are also focusing on introducing new products with competitive pricing to effectively compete with foreign players Hence, successful endeavors in promotional campaigns and innovative product offerings hold the key to triumph in this sector

2 INTRODUCTION ABOUT BIT?’S HUNTER

Biti's Hunter is a famous sports shoe product of Biti's brand for young people, born in the second half of 2016 The appearance of Biti's Hunter is like a new breeze to change the appearance of old Biti's products

2.1 Introduce the birth context

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Biti’s was a well-known brand with sturdy sandals before the launch of Biti's Hunter,

captivating the hearts of Vietnamese customers of the first generation (8x, 9x) However, due to Vietnam's fast economic integration in recent years, the 9x and 10x generations now choose international brand sneakers Not only do sneakers provide the basic necessities of mobility,

but they are also a sign of youth style and ego Biti's will lose touch with them and future

generations if it continues to focus on traditional shoes and sandals Based on the foregoing, Biti’s concludes that the Vietnamese market is currently lacking in domestically produced sneakers with fair costs, high quality, and trendy designs That is how Biti's Hunter came to be

This line of sneakers not only fills a market niche, but it also aims to assist Biti’s transform the

perception of customers, particularly young people

2.2 The meaning of the name "Biti’s Hunter"

Biti’s Hunter is a product for daring "hunters" who are always looking for new experiences

and ways to broaden their horizons Hunter, which means "hunter," is a representation of a quick, focused, and accurate attitude Each of us has objectives in life, and if we have attributes

like "Hunter," accomplishing those goals will be much easier Biti hopes that with these shoes as a friend, every one of us will be a hunter eager to explore and master life's problems

3 CURRENT MARKETING SITUATION ANALYSIS

3.1 Company

With the growing market economy, grasping trends and promoting strengths is essential for the progress of businesses in the future, especially in fashion When it comes to footwear brands in Vietnam, one of the prominent names is Biti’s After more than 29 years of development, Biti’s has a solid foothold in the economy To achieve that, Biti’s has implemented its marketing strategies effectively With continuous development, Biti’s has

achieved many achievements, thanks to which it has enhanced its position in the footwear

market The outstanding achievements of Biti’s can be mentioned as: being awarded the high quality Vietnamese restaurant award, winning the title of Top 40 Most Valuable Business Brands in Vietnam (2016 and 2017) Currently, the company Biti’s has become a strong unit, demonstrating a breakthrough in the field of footwear production; having enough human resources, materials, and talents to develop the profession and bring about higher results The company's overall goal is to maintain its leading position in Vietnam and to become a large consumer goods company in Asia [4] Biti's is operating under the model of a family company; according to information on the National Business Registration Portal, as of August 2018, Binh

Tien Consumer Goods Production Co., Ltd has a contributed capital value of 436.86 billion

VND Information to the media, in 2019, the net revenue of the parent company Biti's reached

VND 1,954 billion, net profit reached VND 111 billion, an increase of 51% and 42%,

respectively, compared to the results achieved in 2016 From 2016 to 2020, Biti's revenue will reach 1,291 billion VND (2016), 1,588 billion VND (2017), 1,862 billion VND (2018), 1,954 billion VND (2019), and 1,673 billion VND (2020) In 2021, Biti's only achieved revenue of

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VND 1,235 billion, down 26.3% compared to 2020, the lowest level in 6 years Biti's profit after tax also plummeted to only 8.7 billion dong, down 89.6% over the same period [5]

Compared with other competitors (especially those that supply from China), Biti’s products show superior quality Understanding the Vietnamese people's preference for durable utensils, Biti’s mainly focuses on the quality of the product From there, Biti’s gains a competitive advantage

3.2 Customers Opinion

According to a survey of students at Van Lang University - Ho Chi Minh City:

e For students, they think that the price should be more reasonable for their pockets Because, according to them, the price of a pair of Biti’s Hunters VND 495,000 - 650,000 is a bit high Moreover, Biti’s hunter also discriminates against the prices of men's and women's

shoes, which also causes some controversy

e Some people think that the style and color of Biti’s hunter are not diverse Through the survey, Biti’s needs to know what young people need to improve their products For example, launch shoes in pastel colors or with vintage patterns

e Besides, there are also some positive and negative comments, such as: They love, trust, and actively call for priority to use Vietnamese goods, but sometimes the service is not good Thus, from that information, Biti’s should have new product orientations, such as: keeping the same price but eliminating the price division between men's shoes and women's shoes Create special, more diverse designs Organize and manage the service stage more closely to give customers the best experience

3.3 Collaborators

Biti's is also believed by international customers with famous brands such as Lotto, Clarks, Skechers, Decathlon, Speedo, etc to become a processing partner for many large value orders Biti’s implements a business cooperation plan with domestic and foreign suppliers specializing in the production of all kinds of materials With the motto of seeing manufacturers as partners in "cooperation and sharing profits", Biti’s offers suppliers the best policies and business opportunities Regarding leather materials, Biti’s chose Weitai Leather Joint Stock Company - a company with 100% investment capital in Taiwan, headquartered in Nhon Trach - Dong Nai Regarding synthetic resins, the Company mainly imports from the Netherlands and France, the company also cooperates with a number of domestic companies, such as Vietnam Polystyrene Co., Ltd With the supplier of soles and heels, Biti’s chose Tea Sung Company, Trieu Phong

Company, etc 3.4 Competitor

Biti's competitors involve Nike, Adidas, Converse, Puma, Vans, Ananas, RieNevan, Mét đôi giày, ete.

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e Nike

Biti’s competitor, Nike, has long been known for the production of sports shoes However, over time, the company has expanded its product line, to include clothing, accessories, and equipment, which are sold worldwide The company was founded in 1964 and was originally called Blue Ribbon Sports In 1971, the company was renamed Nike The company's headquarters are located in the Portland area of Oregon, near Beaverton Nike has more than 1,000 stores worldwide Nike is ranked 85th on the Fortune 500 list of companies in the United States in 2020

e Adidas

Biti's competitor, Adidas, one of the most popular sports and footwear businesses in the world, has had its ups and downs along the way The company was founded in 1936 and is one of the oldest footwear companies in the world Despite a long history, the "spirit" of Adidas is still very young Adidas faced fierce competition from Nike in the 1980s but quickly kept up with the competition by focusing on youth and sports enthusiasts

e Ananas

Biti's competitor - Ananas, also known as a Vietnamese shoe brand Ananas, in English,

also means pineapple Ananas has been on the market since 2010 But in recent years, Ananas have gradually gained the trust of young people And becoming stronger and stronger to become a popular local shoe brand up to the present time The unique and novel designs of

Ananas make it easy for the wearer to combine them with many outfits to create many different

styles Ananas has also cooperated with many famous brands such as Burberry, Keds, Puma, etc Ananas products are made entirely in Vietnam The target audience is young people who are passionate about sneakers

e “Mét déi giay”

Completely different from Biti's, “Mot” is a relatively new shoe brand in the field of sports shoes in Vietnam, launched in 2018 Although entering the Vietnamese shoe market quite late, "Mot" has achieved impressive results Pursuing simplicity, these shoes are streamlined with many redundant details to bring lightness and rusticity, great for those who love neatness

3.5 Context e Political

- Political stability

Vietnam is a country characterized by high political stability, where the population holds positive perceptions and views towards domestic companies, which provides a solid and favorable foundation for business construction and the development of business strategies In the context of increasing global instability, Vietnam's political and social stability is a significant advantage for growth

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- Legal system

The state has enacted numerous laws to regulate business activities, such as protecting the rights and interests among businesses (Competition Law) This law stipulates behaviors that restrict competition and economic concentration that may have an impact or potential to restrict competition in the Vietnamese market Biti's company always adheres to the spirit of conducting business in accordance with the state's legal principles and guidelines Additionally, the new generation of free trade agreements, with their additions and strengthened commitments from countries

regarding environmental, labor, and intellectual property issues, has become a current

trend of integration among nations

e Economic

The year 2022 was considered a year of significant difficulties and challenges for the global economy, including Vietnam The global economy was forecasted to experience severe recession, and the growth of major economies decreased sharply due to the negative impact of the Covid-19 pandemic However, according to the General Statistics Office's data on the

economy in 2022, Vietnam's economy continued to maintain growth with an estimated GDP

growth rate of 8.02% The continuous GDP growth indicates that the economy is expanding, providing ample opportunities for Biti's to invest in expanding production and business operations, and capturing an increasingly larger market share [6]

e Social

Based on the percentage distribution by age, Biti's will target its target customer base towards the younger generation to create diverse products in terms of designs, styles, and to reflect the vitality of youth For example, the resurgence of Biti's along with Biti's Hunter - closely associated with the image of the youth like Soobin Hoang Son or Son Tung MTP, along with meaningful messages about youth, has brought even greater appeal to Biti's

e Technology

The development of the internet and the shift towards online transactions have impacted Bitrs marketing activities Social media platforms such as Facebook, Instagram, TikTok, etc., serve as online distribution channels to promote products, stimulate consumer demand, and

most importantly, increase interaction between sellers and buyers

Furthermore, Biti's products can easily reach consumers at low cost and in a short time through the internet protocol, aided by the company's doorstep delivery services This service has received high customer satisfaction By applying scientific and technological advancements and innovating technologies, Biti's can enhance product quality, create new and diverse products, increase production capacity, improve labor productivity, and utilize resources efficiently These efforts will enhance competitiveness, expand the market,

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INS2003 06

Principles of Marketing Group 7 accelerate growth, and improve the overall efficiency of production and business operations for Biti's

e Environment

Vietnam has a tropical monsoon climate characterized by its diverse and unpredictable nature The climate in Vietnam exhibits strong spatial and temporal variations, giving rise to different regions and climate zones The climate in Vietnam is highly variable, with significant

fluctuations, including early and late cold spells, rainy and dry years, years with few storms, and years with many storms These variations can have a considerable impact on the production

and business activities of Biti's e Legal

The Intellectual Property Law No 50/2005/QH11 dated November 29, 2005 of Vietnam

plays a crucial role in addressing issues related to idea theft and imitation of products This law govems copyright, related rights, industrial property rights, plant variety rights, and the protection of these rights [7] Any content belonging to Biti's, including trademarks, trade names, company logos or product logos, product designs, etc., are the property of Biti's and are protected under the provisions of the Intellectual Property Law of Vietnam and related documents Therefore, any act of copying, quoting, modifying, distributing, publishing, circulating, etc., for commercial purposes in any form without prior written consent from Biti's constitutes an infringement of Biti's rights Biti's reserves the right to request cessation of such unauthorized use and seek compensation for damages

4, COMPETITIVE ANALYSIS

Trademark consumers and the pride of | conjunction

Vietnamese people in a with world- “National Brand” in the famous singers, field of prestigious and players, and quality footwear “Biti’s— | actors Nurturing Vietnamese

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in society, both the elderly | targeted at both men and with low and

and children) high-income women (for middle customers, and | those who are income,

successful 25 years old or | diverse ages,

entrepreneurs | older) do not focus on the brand name of the product Biti’s Hunter shoes are Nike is Thuong Dinh Shoes from

currently sold for between | considered a shoes are highly | China and

500,000 and more than 1 pioneer in appreciated by | Taiwan (both million dong a fairly adapting the many customers | branded reasonable price for young | latest for the shoes and people who are looking technology to | durability of the | fake ones) forward to owning a real improve their | product and have low pair of shoes with good products Its good price quality, poor

quality and modern and products are However, in durability, but Product youthful design like always terms of are diverse in

quality Hunter In particular, Biti's | appreciated, models, designs, | models and

Hunter also has many comfortable, and colors, there | colors incentive programs when _| easy to move are not many

customers pre-order new and durable varieties

shoe models, seasonal Diverse

promotions or special product lines occasions to promote dedicated to customers’ shopping needs | more than 30

different sports

Biti's Hunter shoes are Due to the high | Ananas' Having a currently sold for between | cost, the products are lower price 500,000 and more than 1 products of evaluated by compared to Price of — | million dong a fairly these suppliers | consumers as other product reasonable price for young | are not as having stable products in

people who are looking popular and quality with the same forward to owning a real popular as reasonable footwear pair of shoes with good those of Biti’s | prices from industry, this

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Principles of Marketing

quality and modern and as well as other | 400,000 to 1 is the

youthful design like domestic million VND advantage of Hunter In particular, Biti's | suppliers in the | Vina Giay's this product Hunter also has many market products are

incentive programs when evaluated with customers pre-order new good quality, shoe models, seasonal prestigious promotions or special brand name occasions to promote despite the high customers’ shopping needs price, from

300,000 to 3

million VND Biti's Hunter opens stores | Nike 1s Vina Giay's Quite

space, exclusively for accounts for around for a

Biti's Hunter fans Here, 62% of the long time and is customers can find unique | global market | very reputable

and latest Biti's Hunter share, present Vina Giay also

shoes, and enjoy attractive | in 170 focuses on promotions and privileges | countries promoting its exclusively for loyal around the brand through Branch customers E-commerce is_ | world The communication network | also a channel Biti's brand has a programs Some Hunter focuses a lot of global and brands such as efforts on, both helping to | nationwide Ananas, build a youthful image and | distribution Reebok, etc

increasing sales significantly throughout

the country

network, which can be

market This

will limit the

remote

customers who want to consult

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and use the

product

Handmade footwear has a factory that is also a store, often located in

densely populated

places

5 SWOT MODELANALYSIS 5.1 Biti’s strength

Biti's has the advantage of a beautiful image of a long-standing Vietnamese brand Biti's, a firm that manufactures shoes and was founded in 1982, formerly dominated the

local market with traditional sandal models, always accompanying the 7x and 8x generations Bitis is also the biggest and most influential company in this industry in Vietnam The six core principles of prestige, quality, change and improvement, development solidarity, firm promotion, and society building have guided Biti's development throughout the course of its 40-year history After more than 38 years of manufacturing and commercial operations, which were fraught with ups and downs and difficulties, Biti's has evolved with the nation, earning a reputation as a trustworthy and well-known brand among consumers Vietnamese people utilize and take pride in a "national brand" in the industry of high-end, high-quality footwear

Good quality product, affordable price

Applying the one-price policy, Biti's 1s one of the first few enterprises in the country to implement the one-price policy for all places m the domestic market Consumers in remote areas still have the opportunity to own Biti'’s products at the same price as urban people Through this policy, the company affirms that all Biti's products are of the same quality; there

are no second-hand goods For the Bitis Hunter brand, it is currently divided into 5 product lines for both men and women, with prices ranging from 599,000 to 899,000 VND, suitable

for the financial ability of many customers With this affordable price, Bitis seems to be gradually becoming the optimal choice of consumers when the price of genuine sports shoes

from foreign brands such as Nike, Adidas, Vans, Converse, Puma, etc Currently on the market

are 1 million VND or more Biti's products are certified for quality assurance through the registration of quality standards at the Ho Chi Minh City Department of Standards, Metrology, and Quality for all products all product categories Biti's products are manufactured according to the quality management system ISO 9001:2000 certified by QUACERT and BVQI.

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Consumers always trust the quality of Bitis In 2006, Bitis was one of the 200 strongest enterprises in Vietnam

Wide distribution system

The product distribution system through agents and domestic stores also thrives in each period according to the company's orientation; in addition, the export business is also expanded Domestic market: including 4 commercial centers, 1 business center, 7 branch

centers, 156 marketing stores, and more than 4,500 agents and stores across 64 provinces in

the country International market: the company has export markets in more than 40 countries around the world Strong financial potential: after nearly 40 years of operation, Bitis's capital potential has become a great strength; there is no need to borrow capital to do business

because Biti's dealer network is so extensive, it is difficult to manage all the activities of the

agents, which can affect Biti's reputation and eventual profits at the same time It also reduces customers’ access to and purchase of product

Biti's has not been active in the source of raw materials

Currently, according to the need to diversify the types of products involved in business on the basis of quality assurance for the company's customers, Bitis has a huge demand for raw

materials and materials However, these materials are still very limited, domestic enterprises

can produce but cannot guarantee the requirements of Bitis, so up to 60% of Bitis's input materials are imported from abroad only 40% domestic use Moreover, this is also the general

situation of our country’s leather shoe industry when it is not possible to take the initiative in

the source of input materials, but most of them have to be imported from countries in the region at high prices, so that the product price depends very much on the quality of the product to the fluctuations of the raw materials market

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mainly focuses on the domestic market The rapidly growing population size will expand the market for Biti's footwear products, creating opportunities to increase sales and product consumption quickly Through this, Biti's Hunter has the opportunity to tap into the prominent

mentality of these generations, which is "You only live once"—you only live once in your

life—emphasizing the expression of personality and living with the passion of the world young system

Marketing campaign

The new era of modern technology and the psychological characteristics of today's youth - quickly approaching and updating new cultural and media trends—create conditions for Biti's Hunter to easily carry out advertising campaigns Access and support users in personalization and product differentiation through social networking sites and the official website of Bitis When using technology to interact with customers, businesses will create a positive image in front of the public

Large, potential market and constantly expanding and developing

Vietnam's GDP grows at an approximate rate of 6—7% a year, which is also a great opportunity for Biti's Hunter, as today's young people spend 25-30% of their income on shoes

and clothes Specifically, GDP in the first 6 months of 2017, with an estimated increase of

5.73% compared to the same period last year, promises to continue to increase in the late 2017 period Average core inflation in the first 6 months of 2017 increased by 1.52% compared to the same period in 2016, lower than the planned level (expected 1.6—1.8%) [8] In general, our country is performing well in controlling inflation Moreover, the lending interest rates of banks are kept at this level, which affects people's consumption activities, including footwear (Bitis), because interest rates are an important demand for borrowers to pay for their purchases This is a remarkable opportunity when analyzing Biti's SWOT model

Improving product quality to compete with international brands comes from the mentality that "Vietnamese people use Vietnamese goods." Along with the combination of modern technology and government support in trade policy, Biti's Hunter has more and more opportunities to improve product quality and increase competitiveness

Notable technologies include LifeKnit and LiteFlex

e LiteKnit weave technology: Application in the production of upper straps for shoes This modern technology helps the shoe straps to have good elasticity, avoid breaking, and have high breathability, creating a cool feeling

e LiteFlex sole technology: Applied in the production of shoe soles, is an exclusive technology researched and owned by Vietnam's No | shoe brand - Biti's The company has used ultra-light phylon material to create shoes with a small weight Shoe products are applied with both IP technology for good elasticity and outstanding flexibility.

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Supporting trade policies from the government: The government proactively reformed administrative procedures, simplified tax procedures, provided solutions to deduct input VAT for raw material purchases, and optimized production time and cost This is a remarkable opportunity when analyzing Biti's SWOT model

5.4 Threat

Consumer demand for quality products is increasing day by day

With the gradually improving living standards of Vietnamese people, they are more and more eager to use quality products This requires Bitis to update with advanced and appropriate technologies

Consumers! confidence in Vietnamese products has not been really high

Especially for sports shoes (also known as “sneakers’”), because it was one of the first brands to seriously invest in quality and design, it is still limited in terms of design diverse designs as well as unique, new, and trendy designs

Calculating the price and design will also be a big challenge for Biti’s

Starting from Biti's competitors, are shoe brands from China Their products meet the needs of consumers in the middle segment in terms of price and quality They are very responsive to the market and constantly change in design; the price is low, suitable for ordinary income

Besides, the domestic market has brands such as Bita's, Ligamex, Vina Shoes, etc They are

also cheap, diverse in design, and increasingly appreciated

6 SEGMENTATION AND POSITIONING STRATEGY 6.1 Market segmentation

Market segmentation involves dividing the entire market into distinct groups of consumers

who possess varying needs, desires, behaviors, or characteristics (Kotler & Armstrong, 2017)

As indicated in the Sportswear in Vietnam report (Euromonitor International, 2018), the

retail value sales of footwear experienced a 12% increase in 2017, reaching VND 7,070 billion,

thereby making sportswear an appealing sector for companies The primary driving forces behind this growth were the growing demand for sporty footwear among young individuals and the increased awareness of the importance of sports among modern parents In the past, local brands like Biti's primarily targeted consumers with low to middle incomes However, the shift from economy to premium brands (Euromonitor International, 2018) prompted Biti's to enhance product quality and cater to a broader range of market segments Biti's employs market segmentation based on demographic, geographic, psychological, and behavioral characteristics

e Geographic segmentation - Nation: Vietnam