final exam principles of marketing marketing plan for bitis

Faced with that situation, one face Biti's, which 1s already very familiar to Vietnamese consumers, has decided to invest in developing a product line called Biti's Hunter with outstandi

VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL

FINAL EXAM PRINCIPLES OF MARKETING

MARKETING PLAN FOR BITT’S

1 Phạm Ngọc Phương Thủy- 20070344

2 Tran Minh Nga- 20070266

3 Vii Dinh Khoa- 20070214

4 Dinh Thi Hué- 20070186

A INTRODUCTION khe E< HE KHE TH TH TH TT HH 4

I CURRENT MARKET SITUATION ANALYSIS kh re HH TH HT tke 4

EXCUTIVE SUMMARY

This report aims to highlight the Marketing Planning of Biti’s- a Vietnamese Footwear brand

It discusses the current strategic marketing strategies that are being implemented by the company for attracting the customers It provides an environment analysis ( including strengths , weaknesses , opportunities and threatens ) of the company using SWOT analysis framework The PEST analysis framework is taken into use for explaining the environmental variables of Vietnam's market that can potentially have an impact over the footwear industry as a whole Furthermore , the Market research and competition analysis has been done to provide a better picture supporting for new marketing plan we would like to apply for Biti’s

A INTRODUCTION

The living standard of Vietnamese people is getting higher and higher, leading to an increasing

demand for beauty That's why the fashion market in general and the shoe market in particular in

recent years have received a lot of potential new faces such as Nike, Converse, Ananas, Faced

with that situation, one face Biti's, which 1s already very familiar to Vietnamese consumers, has

decided to invest in developing a product line called Biti's Hunter with outstanding quality, and at the same time invest a lot in marketing costs to recapture the falling market share into the hands

of other competitors It is this methodical investment that has caused a phenomenon in the

footwear fashion market in recent years

Through this event we can gain a lot of valuable experience in Marketing which is why we chose this company for the final exam Within the limited scope of the essay, we would like to give a general overview of Biti's company and the marketing process for product lines

B BODY

1 CURRENT MARKET SITUATION ANALYSIS

1 Company profile

The tireless steps

From a small manufacturing base started in 1982 with only 20 workers but with a high

determination, ambition, and humility to reform forward, Biti's has experienced a period of Subsidy Period with many difficulties to assert its position The tireless steps From a small

manufacturing base started in 1982 with only 20 workers but with a high determination, ambition, and humility to reform forward, Biti's has experienced a period of Subsidy Period with many difficulties to assert its position

More than a third of a century has passed, as a "tireless step", Biti's has continuously improved

and innovated, gradually building up a brand of footwear with diversified designs and models With that, the strategy of production and import-export has echoed the spirit of the modern era, the physical - financial resources, dynamic and enthusiastic people, enough to compete with major brands in the world

Biti's is one of the first shoe companies in Vietnam which remains and develops until now In

1982, Biti’s, known as Van Thanh cooperation, was launched by Mr and Mrs Luu Khai Thanh

The first purpose was to exchange goods with Eastern European countries and the Soviet Union

The acquisition of Binh Tién cooperation and Van Thanh cooperation happened after 4 years, mainly focused on the high-quality shoes and export named Binh Tién cooperatives In order to increase customer satisfaction, Tatwan was selected for studying the newest technology and transporting such machines and therefore manufacturing new footwear - EVA foam slippers As a consequence, these products were of the best quality at that time From 1992 till now, Biti's (Binh Tién manufacturing goods company) was renamed by the director Mr Vuu Khai Thanh stated a vision: Becoming the strongest consumer goods manufacturing company in the Asia region” According to Mrs Lai Khiém, the mission of the company is that: “Innovate and improve the quality of providing products with Biti's brand identify- Prestige and Quality”

Becoming a large scale of company makes everybody jealous Thanks to wise strategies, Biti's plays a vital role in Vietnamese footwear market This means that there is around 25 million footwears produced per year This company also offers 8500 working opportunities for people who are on the verge of unemployment by training them to become high-skilled labour In domestic market, 1500 retail distribution intermediaries are allocated around Vietnam especially mountainous areas There are 7 branch centers and over 150 marketing stores within Vietnam In China, Biti's has set up 4 representative offices With a potential Cambodian market, Biti's has an official distributor of Cambo Trading Company to distribute Biti’s products throughout the territory of Cambodia Biti's has exported to 40 countries around the world such as Italy, France,

England, USA, Russia, Japan, South America, Mexico, Cambodia and so on

2 Market analysis

According to the Ministry of Foreign Affair, Vietnam consumes the amount of 130-140 million pairs of footwear every year, with a value of over $1.5 billion dollars, and occupies about 30% of the industry's export turnover Realistically, the market is currently dominated by foreign goods As a result, the demand for shoes is rapidly increasing in both domestic and foreign markets There is a diversity of shoes including dockside, loafer, slip-on, sneakers, wedge boots, flip flop, and so on Some customers purchase a product based on the fame of the brand such as Gucci and the luxury design makes them look more formal and elegant Others prefer the reasonable price and the good quality of a product to the lavishment The most important thing is that people consume different types of shoes because of the nature of the event For example, women wear high heels at the wedding event, or leather shoes are often chosen by men in the working environment This is why the shoe market can bring profitable returns and promising prospects in the future On the other hand, although Vietnamese shoes brands have a variety of choices in size, form, and price, the domestic brand rarely meet the expectation of buyers In

terms of Biti's, sports shoes are targeted Simultaneously, they aim at the young generation which

we can clearly see in the targeting figure

3 Competitive analysis

Vietnam is open to many countries to export goods -> people can easily buy a foreign product just at any store in Vietnam Because of the flexibility in product selection, it is not easy for a Vietnamese enterprise to stand firmly in the current market To have the proud position as today, Biti's has to face many domestic and foreign competitors over the years for the same purpose of targeting young people Although domestic brands are still quite new, it can be said that they all have creative, unique and trendy designs to become a formidable competitor to a long-standing company like Biti's In terms of foreign competitors, it is impossible not to mention big brands like Nike, Adidas - famous brands of the young generation for running shoes, sport, or Vans that

Group 3

strongly hit the street style with a variety of designs and styles distributed worldwide Here are a

few detailed analysis of Biti's competitors in recent years

a Domestic competitors (direct competitors)

Vietnamese shoes branches General information Illustration

Mét- Neat, simple, and

durable MOT was born in

2018 in Ho Chi Minh city by

co-founder Huynh Quang

Ngoc Han

Mộts shoes feature a

smooth, simple hug, highly experimental memories and packed with unique messages

- Mét's shoes feature a

slippery, sleek shape

- A pair of shoes target the

youth for daily uses who

have a simple lifestyle and

favour in subtlety

- The price is ranging from 700.000 VND to 1.400.000 VND ($30.14 - $60.29)

- Each design carries 1 color and has white soles

Ananas-Affordable prices,

dynamic design,

youthfulness and solid

quality Ananas was born in

2012

-Ananas’s shoes has fancy color schemes, fabric and suede styles from classic to

modern Ananas designs are mainly made up of low-slip slip-on shoes that hold and respect the foot, firm seams, soft soles that create a sense

of smoothness and comfort

in moving

- Ananas has also produces

T-shirt, caps and socks

-The price is ranging from 400.000 VND to 700.000 VND ($17.23 - $30.14)

Nguyen Ngoc Tien m 2012

in Da Nang City - The shoe is useful for

young people who are passionate about skateboarding or simply want a personal highlight when they go to school or play every day -In order to mark and spread the Vietnamese culture heritage, the RieNevan team has research and put Vietnamese typical symbols into the

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design, such a Lac birds or common patterns on the Dong Son drum

-The price is ranging from 650.000VND to 1.250.000VND

Nike- Just do it The branch

is known as the most

famous sport shoes in the

world The mission

statement is that to bring

inspiration and innovation to

every athletes in the world

- The design is durable with light colors which is suited for all characteristics

- The price is quite expensive comparing to low middle income in Vietnam

However, it 1s worth for the foreign quality

Adidas stated that: "We

believe that through sports

we have the power to

change lives" Adidas has an

effective distribution system

for their products available

through different channels

The first good point is that the shoes are durable in long-term uses “Have lives" draw Adidas produces shoes which are

easy to clean, good force

Liked Nike, the price Adidas offered is also high

Vans- "Off the wall" 66 One

of the most common shoes

branch for Vietnamese

students

The design is simple which

specialize for skateboard users but also suit for students to go to school and hang out It is a famous branch which the price is cheaper than Nike and Adidas because Vans target students

Although Biti's has a variety of competitors, Biti's always improve the quality and learn from competitors In addition, the branch recognises the importance of marketingto promote a new product Therefore, Biti’s hunter can catch the eyes of customers.More and more factors contribute to the success of Biti’s hunter up to 3 years now

Group 3

H MACRO MARKETING ENVIRONMENT

1 Import environment

* In Viet Nam:

The current population of Vietnam is 97,239,469 people (accounting for 1.27% of the world population) The population density of Vietnam is 314 people/km2 With the total population living in urban areas, accounting for about 34% of the total population The population structure

is young, mainly in the working age (63.9% of the population aged 15-64) The average life expectancy is 77 years The average income per capita is about 50 million/year Vietnam's population tends to age

¢ In the world:

The population is large and highly differentiated, especially in areas like China and Southeast Asian countries

> Opportunity:

- Population size and growth rate impact on demand size:

0 The large population leads to a large demand for footwear, which is a potential consumer market for Biti's

0 Population growth tends to slow down, the birth rate decreases, so the demand for

children's footwear decreases, in contrast to the increased demand for adult and

young footwear

- Urbanization has made the demand for footwear even more diverse

- The young population structure, most of which is of working age - > abundant, creative and easy to integrate human resources

> Threaten:

The trend of aging population affects Biti's as the target group of customers targeted

by the business is children aged 1-15 at risk of declining sales and long-term mayors

2 Cultural environment

In general, in Vietnamese culture, footwear, especially sandals, is the most popular

Vietnamese generation 8.9X mainly cares about the durability and price of shoes so that it is

reasonable Sandals have long been a mandatory part of school uniform regulation But in the second half of 2016, with the intersection of Western culture and the trend of young people,

sneakers are increasingly popular, widely used not only with young people but also for older

> Opportunity:

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Open up a whole new market segment and the opportunity to integrate into the sneaker market in the world Keep up with the trend, boost exports to the international market

> Threaten:

Sandals, Biti's branded products, are at risk of being out of favor in the long term Biti's needs to start from a large amount for technology lines and media activities promoting the process of molting, launching sneakers

Our country is on the way to industrialization, so agriculture is also greatly reduced

Much of the income from farming is less, instead of income from industries As incomes

increase, people need to buy more goods That's a good condition for Biti's

In terms of debt, savings and borrowing, the inflation rate:

Consumer spending is also affected by debt, borrowing and saving money If Vietnamese people save a lot, they will spend savings items, debt is more limited to consumption Overall, our country is performing well in controlling inflation Moreover, banks’ lending rates remained at acceptable levels, which affected consumer activity including footwear items because interest rates were an important need for borrowers to pay for their shopping activities

Core inflation is adjusted in balance, the value of the currency is less volatile Therefore,

the basic customer's spending needs have not decreased significantly

Threaten:

Fashion consumer goods such as Biti's are sensitive to changes in these factors The consumption of customers depends heavily on the increase and decrease of interest rates, the source of income that these factors will fluctuate according to the market = > customer spending is unstable over time

4, Political and legal environment

¢ The success or failure of an enterprise in international business depends largely on whether the enterprise understands the policies and laws of the host country or not No matter where a business is located, it is affected by the legal system and government policies Economy and politics are two groups of factors that are closely related to each other Political stability is a condition for economic development and vice versa, economic development is an important factor contributing to political stability On the other hand, institutions and political lines determine the direction of economic policies Politics affects businesses first and foremost through economics Vietnam's politics is in a stable stage, but there are still some negative things happening within the ruling apparatus but not much impact on Vietnamese businesses In terms of

law, Vietnamese enterprises are always favored by the state, especially state-owned enterprises, Group 3

9

compared to foreign-invested enterprises Tariff barriers and business regulations are very beneficial for domestic enterprises

«In Vietnam, footwear exporters enjoy preferential import tax on raw materials (for exports) and export tax on finished products of 0% according to the state's export promotion policy

> Opportunity:

The law minimizes the problem of buying and selling counterfeit, shoveling goods This helps the fashion market in general as well as Biti's in particular eliminate unhealthy competitors

> Threaten:

Many business entities take advantage of the loopholes of the authorities, flouting the law

to transport poor quality items into consumption in the market, causing loss of customer confidence in the product The market is large, the agencies cannot solve all the difficult problems in time

5 Technological environment

* Regardless of the size of the business, large or small, technology still brings practical benefits to help businesses generate profits as well as meet customer requirements Technology

infrastructure affects efficiency the work, culture and relationships of a business It also affects

information security and advantages in transactions

* Currently, science and technology are playing a great role in the formation of the "knowledge economy - digital economy" and "information society", developing high intellectual content in products and services and managed in all countries

* For most businesses, technological innovation involves procuring equipment, traming human resources, learning new technological processes, and performing product/process design However, there are also more and more enterprises that have the ability to decipher the technology, design the process themselves, and actively purchase technology and equipment for production Enterprises gradually gain the ability to improve productivity and product quality as well as deploy new technology

> Opportunity:

- The rise of the Internet makes it easy for customers to interact with Biti's and help Biti's create a public image As well as helping businesses save a lot of travel costs when just holding meetings over the Internet

- Inventory technology helps to best manage product storage costs

- Technology also helps protect financial data, confidential executive decisions as well as proprietary information

> Threaten:

- When moder machines are introduced, it also means that the technology of footwear

production is also significantly improved Businesses competing with Biti's can seize this opportunity to launch products with more diverse materials, designs and quality

- Machinery is one of the direct participants in the manufacturing process, which requires Biti's to accept more payment for equipment investment to keep up with new technology trends

6 Natural environment

* The increasing shortage of raw materials and environmental pollution create a sense of responsibility for environmental protection for businesses producing consumer goods, paying for

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waste treatment activities Besides, government intervention and legal regulation on the use of natural resources also require the company to look for alternative raw materials

¢ With a better understanding of the current natural environment situation, Biti's Hunter has increased its actions to support environmental protection such as the project "Go and experience green" to increase the awareness of environmental protection in tourist destinations , spend large

sums of money on social activities

> Opportunity:

- The natural environment provides the raw material for Biti's manufacturing process

- If Biti's knows how to create a large market for pollution control solutions, looking for non-destructive packaging options such as air filtration towers, regeneration centers and landfill systems, Biti's will make changes towards environmental protection to show that

it cares about the future of the environment world Thereby creating a good impression in the hearts of consumers, helping Biti's have a higher position in the domestic market as well as exports

- Biti's always launches the latest product range, making the most of that model in a time that is suitable for the short life cycle of fashion footwear products

- Some of the main products that Biti's manufactures include: Hunter, sandals, Sports Shoes, Running Shoes, Soccer Shoes, Western shoes

- Biti's products are considered to have beautiful design, follow fashion, light weight, soft sole, durable and breathable fabric

- And especially Biti's develops special footwear with medical functions such as massage, acupressure, stimulating blood circulation for the elderly, office workers, people who are often active

- Product packaging: When buying Biti's products, we are usually packed in blue bags printed with Biti's logo

- Biti's branded footwear products have been evaluated and recognized by a large number of domestic and foreign consumers as having "Prestige and Quality”

- Example: Biti's Hunter weighs only about 225g and is one of the lightest Vietnamese sports shoes to date Not only is it lightweight, but Biti's Hunter still ensures standard quality and has an eye-catching design

- Biti's regularly improves designs and launches the latest products, suitable for consumers

2 Price

- For Biti's Marketing strategy on Price, this brand used Price Skimming Strategy

- The price of Biti's products is still much higher than that of other competitors because the seller sets a relatively high initial selling price to exploit the needs of a group of customers with high purchasing power, to quickly withdraw capital investment and instant profit

- After exploiting this group of customers, enterprises will gradually reduce their prices to exploit groups of customers with lower purchasing power

- All Biti's products have stamps stating the size, color, type and price of the product Footwear products under the Biti's brand are always promoted in terms of quality, prestige, and are recognized and trusted by consumers This is an important basis for the company to price its products according to the objective perception, in line with the company's product positioning idea

3 Place

- Biti's built a chain of stores specializing in selling footwear products from adults to children, stretching from South to North with about 40 models/month

- Currently, Biti's products have been exported to 40 countries around the world such as Italy,

France, UK, USA, Russia, Japan, South America, Mexico, Cambodia, etc

- In addition, Biti's is also trusted by international customers with famous brands such as

Decathlon, Clarks, Speedo, Skechers, Lotto, etc to become a processing partner with many large value orders

- Besides, Biti's also diversified the form of purchase by combining sales through the following websites:

- Today, technology is increasingly developing, the buying trend of customers has changed, they need to buy goods online in the most convenient and fastest way without having to go out Therefore, Biti's products are also distributed through online sales channels such as Lazada, Tiki,

Lotte

- A distribution system of Biti's products stretching from South to North with 07 Branch Centers,

156 Marketing Stores and more than 1,500 retail distribution intermediaries

- It is also possible to organize a show to invite famous singers to perform to attract the attention

of customers: An outstanding advertising campaign of Biti's for Biti's Hunter product line must include the campaign: “Di de tro ve "

- Biti's advertising activities are expanded on television media (maybe after news programs on

vtvl, TV gameshows on vtv3, between movies ); billboards, posters (large billboards mounted

on the street, near bus stops to impress while waiting); Newspaper with the goal of promoting to the public to know about our products

- The advertising activities on the media are carried out meticulously and methodically by the company, so they attract viewers

- In order to promote the completion of the consumption plan, the consumption stimulation program is focused on flexibly by Biti's such as discounting on the occasion of April 30 and May

1, September 2, the first day of the school year, Christmas and New Year holidays

- Biti's also raises the appropriate discount and rewards for the agency units that exceed the revenue In addition, this brand also implements a sales program with gifts for customers when buying products of the company

buildings, restaurants, hotels, amusement parks entertainment, warehouse and other services

Bitis Company specializes in the production of footwear products including: sports sandals,

women's leather sandals, running shoes, western shoes, etc Many kinds of popular footwear,

suitable for fashion and use outside Bitis's products are certified for quality assurance

- Flexible marketing strategy: Bitis is one of the first few enterprises in the country to implement the one-price policy for all places in the domestic market Consumers in remote areas still have the opportunity to own products at the same price as urban people This policy created a good

effect right after its birth Consumers feel secure because they will not have to worry about

paying the price

- Brand marketing: In Vietnam, Biti's company has an international logo It is a combination of simplicity and originality Bit's cherish Vietnamese feet" has become a familiar slogan to users across the country Biti's is proud to be one of the Vietnamese enterprises that has been very successful in advertising Vietnamese footwear products to the world Biti’s has done something

that many other cases cannot do

- Customer care service: Currently, Biti’s is focusing on enhancing the Bitis's brand in the

domestic market by building marketing centers and introducing Biti's products in major cities

across the country Customers coming to the center not only have access to the latest models but

also receive the best and most professional service In particular, customer care services such as promotions, consulting and customer support will be provided to each Biti's customer -

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