principles of marketing topic analysis of the marketing strategy of bitis and suggestions for improvement

It was the leading manufacturer in Vietnam's footwear industry and the first company that success in promoting Vietnamese footwear products worldwide.. Difficulties However, since produc

National Economics University

PRINCIPLES OF MARKETING

Topic: Analysis of the marketing strategy of Biti’s and

suggestions for improvement

Class : MKMA1105( 322)_01

Instructor : Ms Do Minh Diep

Students : Tran Thi Thu Phuong

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I Overview

1 About Biti’s

- Biti’s, also known as Binh Tien Imex Corp, Pte., Ltd, was founded in Ho Chi Minh City in 1982 It was the leading manufacturer in Vietnam's footwear industry and the first company that success in promoting Vietnamese footwear products worldwide

- Since its publishment, Biti’s were popular in Vietnam and other Southeast Asian nations for its durable and high-quality products

- Biti’s sets a significant value on design and innovation, and it has a committed research and development staff that seeks to create shoe designs using modern technology and materials The company also utilizes the use of environmentally friendly products and production techniques whenever possible

- With more than 200 locations around Vietnam, Biti’s has a significant domestic presence and developing international sales in nations like Japan, Korea, and the

US

2, Biti’s products:

- Biti’s offer a varied range of products, from athletic shoes, casual shoes, sandals, and slippers for men, women, and children, all are available at stores - The company had great success with sandals and slippers Since the products launched, Biti’s slippers and sandals have been used in almost every household, associated with the childhood of many generations

- However, the Biti’s Hunter collection is the one that received the most recognition for Biti’s efforts in refreshing their brand image

- Biti’s Hunter is a popular athletic shoe that is designed for running and other sports It features a lightweight and breathable design, as well as Biti’s "Air Cushion" technology for added support and comfort

3 Biti’s development:

- 1982: Biti’s is founded by Mr Tran Van Thoi, who starts the business by producing and selling slippers in local markets

- 1986: Mr Vu Khai Thanh and his wife took over Binh Tien Group and merged

it with the already-existing organization to form Binh Tien Rubber Cooperative The business then concentrates on developing a range of premium footwear products for the domestic market as well as for export to Eastern and Western Europe - The 2000s: Biti’s witnessed a dramatic fall in sales because of the strong influence in the domestic market of foreign brands such as Nike, Adidas, and

Puma,

- 2016 - now: Biti's has had a significant transition in its marketing and commercial strategies to keep up with the trend and the need of consumers Biti’s has regained its position as a leading shoe brand in Vietnam

4 Vision and mission:

- Vision: Offering fashionable, reasonably priced footwear that satisfies consumer demands in Vietnam and around the world is Biti’s' message The company has many slogans that emphasized its determination such as

- “Embrace Vietnamese’s step” which shows its appreciation to customers in their home country and their desire in making a Vietnamese brand become worldwide popular as competitors like Nike or Adidas

- "Start a Biti's life" highlights its commitment to offering footwear that is not only functional but also stylish and enjoyable

- Mission: Biti’s wants to develop new products and broaden its product line while being committed to sustainability and high quality They aim to create distinctive and advanced footwear designs that appeal to younger customers

- Besides concentrating on product development, Biti’s is devoted to supporting communities The company has organized several charity projects, including giving away free shoes to Vietnamese children from impoverished families and supporting environmental preservation

II Overview of Vietnam's sneaker industry

1 How big is Vietnam’s sneaker industry?

With an average export value of more than $10 billion USD per year, Vietnam's footwear sector ranks among the top four nations in the world for the quantity of shoe and footwear production

Vietnamese Footwear Market

Market forecast to grow at a CAGR of 8.1%

USD 38.7 Billion

USD 19.17 Billion

2022 2031

RESEARCH AND MARKETS

2 Difficulties and Opportunities for Vietnam’s sneaker market

a Difficulties

However, since products from abroad hold a 60% market share, the market for

"domestic" shoes and sandals is being left unexploited Since the production of

"domestic" goods requires significant investment and high inventory risk At the same time, the market size is small, and domestic consumers’ support does not appear to be sufficient to ensure that "Made in Vietnam" shoes and sandals dominate the market

The Vietnam Leather-Footwear-Handbag Association claims that because there hasn't been adequate planning for the development of ancillary industries, the leather and footwear industries have long been predominately outsourced and domestic businesses haven't been able to take the lead and improve the value added to the raw material supply chain and lessen reliance on imported raw materials

On the domestic market, there are about 150 million pairs of shoes consumed each year Nevertheless, this is still an insignificant amount and the market primarily consumes "Made in Vietnam" footwear products in the low-end price ranges Mid- and high-end goods are available, but they are few and are still not as quality as leading international brands According to industry experts, the domestic market for footwear products is small in terms of both market size and consumption volume, but it still requires domestic market investment This is why there hasn't been much of a change

in domestic footwear product consumption As a result of the size of the design, the quick capital turnover, and the high inventory capacity, numerous business risks could

arise

As aresult of China's abundant supply of raw materials that completely satisfies the needs of businesses, as well as their ability to change models quickly, "domestic" footwear products are also subject to fierce competition from products imported from China On the other hand, because the State does not impose any technical restrictions

on the importation of footwear products into the Vietnamese market, it is also one of the factors contributing to the competition that "domestic" footwear products face disparity in the “home yard" versus imported goods of the same type

b Opportunities

In fact, the trend toward domestic footwear consumption offers industry businesses

a good opportunity to increase profits, promote production, promote product consumption, and compete with imports of products in the same segment Over 10 million pairs of shoes and sandals will be consumed each year as the average consumption rises by about 8% annually in the upcoming years At that time, the domestic market will offer plenty of chances for manufacturing businesses in the sector to grow

3 Difficulties and opportunities for Biti’s

In light of the aforementioned ambiguous and dependent situation, Biti's, a 100% Vietnamese footwear company, has emerged as a ray of hope for the domestic manufacturing industry after making an impressive comeback in recent years Since its founding in 1982, Biti's has consistently accompanied the 7x and 8x generations while dominating the domestic market with traditional sandal models Biti is in danger

of losing market share as the Vietnamese economy gradually becomes more open to the entry of foreign companies As a result, Biti's CEO must take on the challenge of guiding the business through the process of rebranding, reviving Biti's return to young consumers, and continuing to "take care of Vietnamese feet."

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Ill Market research

1 Macroenvironment:

a Economic environment

Accordingly, Vietnam's GDP in 2023 will be approximately $435.59 billion based on the 6.5% growth projection made by the ADB (the GDP in 2022 will be $409 billion based on data from the General Statistics Office) Vietnam's economic growth

is anticipated to reach 6.3% in 2023, according to a World Bank (WB) Review report released on March 13 As a result, Vietnam's per capita income will be nearly twice as high by 2030 as it is today, and eight times higher by 2050

There is a greater need for fashion-oriented goods like shoes and clothing in addition to necessities when citizens’ income increases

b Cultural environment

It is believed that the younger generation aspires to create their own unique language through aesthetics It is important to view streetwear as a movement rather than a trend because it is a cultural phenomenon According to the fashion industry, the younger generation and other fans of popular culture are known to wear sneakers

as trendy, casual clothing Streetwear is more than a passing trend in casual attire for Gen Z Whether or not sneakers remain in style is irrelevant; what matters is the mindset that has supported the growth of the popular culture

Street fashion and sneaker culture have become mainstream over the past decade, and this has served as a rallying cry for Gen Xers Men in the Gen X generation have experienced this phenomenon the most profoundly —

Consumers today want to be able to express their sense of style while still dressing comfortably, as they are now capable of being tastemakers

c Technological environment

Due to the pandemic, shoppers have shifted significantly to online shopping Consumer preference research revealed that the ease of online shopping (53.33%) was the most important factor 90% of consumers browse the internet for 0 to 5 hours to purchase online Customers no longer need to physically visit markets and stores Having easy access to the market, expanding the market, reducing costs, eliminating the need for pricey retail locations and customer-facing staff, responding as well as boosting growing sales, and more are all made possible by online retailing

The creation of new materials has been one of technology's most important contributions to the sneakers industry Businesses may find it stmpler to produce lighter, more durable, and more fashionable shoes with their use of new materials

d Natural environment

When examining the footwear industry, environmental factors are also crucial

to take into account These elements include resource management, waste

management, and climate change The footwear industry may be significantly impacted by climate change because it may change how products are created For instance, if the climate changes, businesses might need to design sneakers that are suitable for the new climate Altering the design of the shoes or using different materials can accomplish this

e Political environment

Any industry can be significantly impacted by political factors, and the footwear sector is no exception These elements include laws, forms of government, the political environment, levies, and trade agreements Vietnam Government regulations may severely affect the footwear market by limiting or outlawing particular practices or goods Taxes must also be taken into account because they can raise production costs and make it difficult for businesses to compete

Finally, it's crucial to consider trade policies when examining the sneakers sector The Government may increase the cost of imports and exports to make it more challenging for companies to conduct cross-border business They might also enforce limitations on the kinds of goods that can be exported or imported, which would make

it challenging for companies to penetrate certain markets

f Demographic environment

Demographics can affect the Vietnam market because they can predict the most popular product categories Bitis may tailor its marketing and product offerings to

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specific demographic segments based on their preferences, needs, and purchasing power

For example, the company may target younger consumers with trendy and fashionable designs while offering more classic and comfortable options to older consumers It may also consider the purchasing power of its target audience, offering more affordable options in regions with lower average incomes

Additionally, Bitis may analyse demographic trends and shifts in the population

to inform its business strategy For instance, as the global population ages and becomes more health-conscious, the company may seek to develop more supportive and comfortable footwear for older individuals or those with foot problems

Overall, understanding the demographic environment is a crucial aspect of Bitis' market research and product development strategy, allowing the company to stay relevant and competitive in the footwear industry

2 Microenvironment

a The company

Resources:

- Biti's has a charter capital of VND 270 billion

- The production line is applied with modern technology

- Coming from a famous brand in Vietnam, Biti's human resources and potential are quite strong With the purpose of becoming a Vietnam's leading footwear brand, Biti's boldly spent 5 million USD to invest in technology and machinery and 3 billion VND for the Marketing campaign

Employees:

Biti's has a diverse workforce of over 12,000 employees located across Vietnam and other international markets The company values its employees and strives to create a positive and supportive work environment Biti's provides its employees with training and development opportunities to help them grow and advance their careers within the company The company also offers competitive compensation packages and benefits to attract and retain top talent

BLUEWIND

Strengths:

-Wide range of products: Blue Wind offers a diverse range of footwear products, including sneakers, sandals, boots, and dress shoes, that can appeal to a variety of customers

- Affordable prices: Blue Wind's products are priced competitively, making them accessible to a wider range of customers

- Fashionable designs: The brand offers a variety of stylish and trendy designs that can appeal to fashion-conscious customers

- Responsive customer service: Blue Wind provides responsive customer service and support, which can help build brand loyalty and trust

- Limited international shipping: Blue Wind's website indicates that they currently only ship within Vietnam, which may limit their potential customer base Product features:

- Quality materials: Blue Wind's products are made with high-quality materials, such

as genuine leather and durable rubber soles, which can enhance the comfort and durability of the shoes

- Comfortable fit: Many of Blue Wind's shoes feature cushioned insoles and other comfort features to provide a comfortable fit for customers

- Versatile designs: Blue Wind's products are designed to be versatile and wearable 1n a variety of settings, from casual to formal occasions

- Affordable pricing: Blue Wind's products are priced affordably, making them accessible to customers who may be looking for quality shoes at a reasonable price point

Sure, here are more specific descriptions of the strengths, weaknesses, and features of both imported brands (Nike, Adidas, Converse, etc.) and Chinese shoes: INTERNATIONAL BRANDS (Nike, Adidas, Converse, etc.):

Strengths: These brands are known for their high-quality products and cuttingedge designs that are always in line with the latest fashion trends They use top- notch materials and advanced manufacturing techniques to create products that are both stylish and durable

Weaknesses: The prices of these brands are often higher than average, making them more accessible to customers with higher incomes This can limit their appeal to

a wider range of consumers

Features: Imported brands are constantly evolving to stay on top of the latest trends and serve the needs of their customers They offer unique and distinctive designs that aim to set their users apart and make a statement about their identity MADE IN CHINA SHOES:

Strengths: Chinese shoes are often very affordable, making them accessible to customers with lower and middle incomes They also offer a wide range of styles that are designed to resemble popular imported brands

Weaknesses: The quality of Chinese shoes can be hit or miss, as there are many imitation products available that may not meet the same standards as authentic brands This can make it difficult to know what you're getting when you purchase Chinese shoes

Features: Chinese shoes are often crafted with care and attention to detail, and they come in a wide variety of styles to suit any user's preferences They can be a great option for consumers who are looking for a budget-friendly alternative to imported brands

c Marketing Intermediaries

According to Biti's official website as of June 2023, the company has more than 5,000 retail points of sale nationwide in Vietnam, including its own stores, franchise stores, and authorized dealers In addition, the company has expanded to several international markets, including China, Cambodia, Laos, and Myanmar, with a network of authorized distributors and retailers

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Social media: Biti's may use social media platforms such as Facebook, Instagram, and TikTok to promote its products and engage with its customers The company may also work with social media influencers to reach a wider audience Online advertising: Biti's may use online advertising channels such as Google Ads and Facebook Ads to target specific audiences and drive traffic to its website and online stores

Email marketing: Biti's may use email marketing to send promotional offers and newsletters to its subscribers and customers

In-store promotions: Biti's may use in-store promotions such as discounts, free gifts, and loyalty programs to incentivize customers to make purchases and increase brand loyalty

Events and sponsorships: Biti's may participate in events such as fashion shows, sports events, and music festivals to increase brand awareness and engage with its target audience The company may also sponsor events or sports teams to further

increase its visibility and brand recognition

d Customers:

- Because of the variety of products, Biti's customers are of all sexes and ages, including men and women, kids, teenagers, young adults, middle-aged people, and the elderly The business specializes in making shoes that are practical for children aged | to 15 to study and entertain Grandparents, parents, and those who want to buy their children shoes with both attractive designs and great durability are thus Biti's target audience

- In Biti's Hunter line, Bii's target audience is teenagers, young people who are active and have a strong desire to express themselves

- Inthe foreign market, Biti's has also exported to 40 countries around the world such as China, Italy, France, UK, USA, Russia, Biti's has also been recognized

by international customers with famous brands such as Decathlon, Clarks, Speedo, Uniqlo, trusted to choose to become the outsourcing partner with many orders of ereat value

e Suppliers

- At the moment, Biti’s has a great need for raw materials and resources due to the necessity to diversify the sorts of products involved in business based on quality assurance for the company's clients Although enterprises can make these materials, they cannot guarantee that they will meet Biti’s needs, therefore up to 60% of Biti’s input materials are imported from overseas, with only 40% being used domestically Currently cooperating with Biti’s there are the following main suppliers:

+ Leather: Wei Tai Leather Joint Stock Company (Company with 100% investment capital)

+Tatwan- Headquarter in Dong Nai)

+ Buttons, metal key rings: Tim Do Trading & Production Co., Ltd

+ Eyelets, plastic buckles: Trieu Phong Co., Ltd (Headquarter is located in Tan Binh district)

+ Synthetic plastic beads: Mainly imported from the Netherlands and France, in addition, the company also chooses a number of domestic suppliers, typically Vietnam Polystyrene Co., Ltd

+ Heels and soles: Tae Sung Company, Trieu Phong Co., Ltd

- In addition to the usual public impact, since the beginning of 2016, the launch of the Biti's Hunter product line with a completely different and groundbreaking media campaign is seen as a revolution to change the brand's blood Using the heat

as well as the influence of celebrities, Biti's integrates its products in the works of artists such as Son Tung's "Lac Troi" by Son Tung, "Di de tro ve" by Soobin Hoang Son and Viral clips on social networking sites with meaningful messages have increased the heat of the Hunter line as well as this brand

- Extenstve Distribution Network: The brand has established an extensive

distribution network with a presence in major cities and retail outlets throughout Vietnam, allowing for wide accessibility to customers

- Strong Customer Loyalty: Biti's has successfully fostered a loyal customer base over the years through its consistent product quality, customer service, and brand loyalty programs

b Weaknesses:

- Limited International Presence: Biti primarily operates within Vietnam and has limited international reach Expanding into global markets could be a challenge due to increased competition and market dynamics

- Limited Product Differentiation: While Biti's offers a diverse range of footwear, there may be a need to further differentiate its products to stand out in a highly competitive market

c Opportunities:

- E-commerce and Online Sales: Biti's can leverage the growing popularity of e- commerce platforms to expand its reach and tap into the increasing number of online shoppers in Vietnam

- International Expansion: Exploring opportunities to expand beyond Vietnam and enter new markets could help Biti access a larger customer base and increase brand visibility globally

- New Target social class/customer taste: The potential to tap into a previously untapped market segment, tailor products to their specific preferences and needs, and establish a strong foothold in this new customer base, thereby expanding the brand's market share and revenue potential

d Threats:

- Intense Competition: The footwear market in Vietnam is highly competitive, with both local and international brands vying for market share Biti needs to

continually innovate and differentiate itself to stay ahead of competitors

- Economic Factors: Changes in economic conditions, such as fluctuations in currency exchange rates, consumer spending patterns, and inflation, could impact consumer purchasing power and affect Biti's sales and profitability

- New markets and distribution channels: Increased competition from local and international brands vying for the same customer base, the need to adapt to local market dynamics and consumer preferences, and potential challenges in

establishing an efficient and effective online distribution network to ensure product availability and reach

IV MARKETING’S MIX 4P

1 Target

Faced with opportunities and challenges of innovation and economic

integration, the Board of Directors and Executive Board of the Company decided to build a vision and affirm the image to develop Binh Tien HTD Production Co., Ltd Into a company growing and developing not only in the country but also around the world, maintaining the leading position in Vietnam and actively integrating with the world, becoming a large consumer goods manufacturing company in the Asia region

ASIAN

In order to achieve the goal of "Prestige - Quality" which is true to the meaning

of Biti's brand identity, building long-term trust for all customers, Binh Tien HTD Production Co Ltd is dedicated to continuously improving the quality of product supply and meeting the diverse demands of customers

2 Positioning

Biti’s is known for their famous slogan “Nang niu ban chan Viet" Following this slogan, Biti's is still working on developing their brand This company has made strides in the Vietnamese apparel industry by concentrating on repositioning

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The brand's positioning is focused on producing durable and comfortable shoes that can withstand tough conditions and provide support for the feet during physical activity Bitis shoes are designed with features such as breathable materials,

shockabsorbing soles, and slip-resistant treads to enhance performance and ensure safety

Bitis also positions itself as an eco-friendly brand by using sustainable materials in their shoe production, such as recycled rubber They aim to reduce their environmental impact while still delivering high-quality shoes that meet the needs of their customers

In terms of style, Bitis shoes feature a modern and sleek design with a focus on functionality rather than fashion The brand's product line includes shoes for various outdoor activities such as hiking, running, and trekking, as well as casual styles for everyday wear

Biti's now employs more than 8,200 people, produces more than 20 million pairs of shoes yearly, and exports its goods to more than 40 countries after 38 years of nonstop work Furthermore, Biti's marketing strategy has proven to be so successful that well-known international partners like Decathlon, Clarks, Speedo, Skechers, and Lotto have decided to join their outsourcing partner orders

Identity logo - Biti's

Biti's is one of the brands with an internationally designed logo in Vietnam, so the meaning of the Biti's logo is very important It can be said that Biti's is the first brand to have the idea of making a logo of international stature, so this brand has really reached out to the world and has become a familiar brand for many countries in both South- East Asia and East Asia Biti's logo stands out with the image of two birds flying high, expressing the brand's desire to reach out to the world The image of a bird is also a winged sail that brings Biti's boat to the international market

SLOGAN “Nang niu ban chan Viet" - “Embrace Vietnamese’s step”

Whenever mentioning Biti's, the phrase "Embrace Vietnamese's step" comes to mind right away, partially positioning Biti's as a Vietnamese product which is best suitable for Vietnamese consumers This slogan appeals to consumers’ sense of pride

in the country and evokes the cultural identity of the Vietnamese people

Biti's products shown excellent quality when compared to competitors (particularly suppliers from China and Tatwan): high durability, smoothness Biti has

an ISO9001 certification from the General Department of Metrology of Vietnam and the BVQI organization in the UK This is a thing that few Vietnamese shoe companies have achieved this (Thuong Dinh Company has only got the Quacertissued ISO9002 certificate)

The trend "eat well, wear durably" is beloved by Vietnamese consumers, being suitable with their mindset from past years Therefore, quality standards are the primary emphasis of the company's positioning initiatives Additionally, Biti's has made some improvements in convincing buyers that their products are "high-quality