principles of marketing final report

Biti’s logo Biti's officially known as Binh Tien Consumer Products Company is a brand specializing in footwear production in Vietnam.. In 1992: Binh Tien Rubber Cooperative transformed i

PRINCIPLES OF MARKETING Final Report

Lecturer: Cung Thuc Linh

4 K224131632 Truong Ngoc Mai

5 K224111498 Lưu Yên Nhi

6 | K224111485 Ngô Thị Thu Hiền

2.2 Synthetic plastic material

Il Analysis of the marketing environment affecting Biti’s

1.2.3 Slogan

1.2.4 Features and Characteristics of Biti's Hunter x VNU

1.2.5 Goal of Biti's Hunter X VNU

LIST OF TABLES

Il Analysis of the marketing environment affecting Biti’s

Table 1.2 Data according to the General Statistics Office over the years

Table 2.5 Biti”s ComD€ÍẨOF o.6 G5 6 9 2 9.10 0 0000 kh lọ ó0 BI 4 in 4 0 9609 08

TH Customer research

Table 2_1: Research subjects

Table 2_2: Research details

Table 1.4: Comparison of competitive factors advantages and disadvantages of Biti’s and other company

LIST OF FIGURES

I Introduction

Figure 1 Biti's logo

Figure 1.1 Biti’s brand

Figure 1.3.1 Biti’s mission

Figure 2 Biti’s Hunter

Figure 2.1 Biti’s Hunter Design

Figure 3_1 Biti’s Hunter x UEL

Figure 3_2 Biti’s Hunter x IU

Figure 3 Biti’s Hunter x USSH

Il Introduction

Figure 1.2 Net revenue of Biti's Hunter shoe unit in Vietnam according to the report of

III Customer research

Figure 1_1: Search for Sneaker Figure 1_2: Search for Biti’s

V Marketing mix

Figure 3.1_1 Distribution of Bitis stores in Vietnam both offline and online Figure 3.1_2 Bitis's overseas market and partners

Figure 3.2_1 Bitis marketing store

Figure 3.2_2: Bitis's official website

Figure 3.2_3: Bitis's online store on e-commerce platform

I Introduction

1 General introduction to the Biti's brand

Figure 1 Biti’s logo Biti's (officially known as Binh Tien Consumer Products Company) is a brand specializing in footwear 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

Figure 1.1 Biti’s brand

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 organized

workers 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 of high-quality sandals and flip-flops, the cooperative's products were not only popular in the domestic market but also exported to Eastern and Western Europe, contributing to the

development 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 Son Quan with SunKuan Company from Taiwan, specializing in the production and export of sandals and flip-flops This was a breakthrough as it was the first joint venture between 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 products

such 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's commitment 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 returned strongly 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 music- 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 Minh

City Today, in addition to its two original production facilities, the company has expanded

its network to include 7 branches, 2 commercial centers, 2 business centers, 156 marketing outlets, and over 1,500 distributors nationwide, as well as exporting products to 40 countries worldwide Among the markets Biti's has penetrated are Russia, Ukraine, the United Arab

Emirates (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 Bao Tien factory in Tra Vinh was also established during the year, covering 16.5 hectares and providing employment for over 6,000 workers

1.3 Mission and vision statement

1.3.1 Mission

Figure 1.3.1 Biti’s 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 and enhance the quality of product supply, meeting increasingly higher and diverse demands of 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 Consumer Products Manufacturing Company into a strong and increasingly expanding corporation not only domestically but also globally, maintaining its leading position in Vietnam and actively integrating with the international community, thus becoming a major consumer goods manufacturing company in the Asian region

2 Biti’s Hunter

Figure 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 provided Vietnamese consumers with a fresh and innovative choice in the fashion world Since its launch, 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 the Vietnamese fashion industry Additionally, it demonstrates the confidence and ambition of

brands in competing with international counterparts

2.1 Design

Figure 2.1 Biti’s Hunter Design

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 other famous 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 wear

and 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 confidence and 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 and foot fatigue

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With their classy and diverse designs, they offer options suitable for various styles and individuals, 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 to its prominence and popularity in the sports shoe market Here are some important points about this material:

Lightweight: Biti's Hunter is made from premium synthetic material, making them extremely lightweight This makes movement and daily activities comfortable and fatigue- free In particular, these shoes are an excellent choice for outdoor and beach activities when

you need comfort and don't want to wear heavy shoes

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 and dirt

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 your

feet from water and moisture from the ground

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 of Biti's Hunter It makes these shoes versatile, suitable for various occasions and personal styles

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

3 Our new products

Recognizing that Biti's Hunter has been offering incredibly beautiful and high-quality product lines 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:

Biti’s Hunter X UEL

Figure 3 Biti’s Hunter x UEL

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

Biti’s Hunter X IU

Figure 3 Biti’s Hunter x IU

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

Biti’s Hunter X USSH

Figure 3 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 modern technology, along with advanced processing techniques to produce shoes that are uniquely designed to represent the distinct characteristics of each university This will provide students with stylish, durable, and elegant shoes that embody a strong sense of individuality for each

abundant human resources, creative thinking, easy to integrate

1.2 Economy

A Period before 2019

a) Economic growth

2011 20122 2013 2014 2015 2016 2017 2018 2019 Growth level 5,89 5,03% 5,42 5,98% 6,68% 6,21 6,81% 7,08 7,02%

% % % %

Table 1.2 Data according to the General Statistics Office over the years Vietnam's economic growth tends to increase in 2019, lower than 2018 but higher than the growth rate of 2011 - 2017

Economic growth leads to more customer spending, companies can expand operate and earn 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 1s 9%

With a base interest rate of 9%, the ceiling interest rate is 12%, this makes it difficult for

businesses 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 same period, currently still at a low, average level According to data from the General Statistics Office, the core inflation rate in December 2018 increased 0.09% over the previous month and 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 is balanced, currency value is less volatile Therefore, basic customer spending needs have not decreased significantly

B Period after 2019

Figure 1.2 Net revenue of Biti's Hunter shoe unit in Vietnam according to the report of the

General Statistics Office in 2023 Regarding the business situation, Biti's has found prosperity in 2022 when pure revenue and profit after tax both show signs of strong recovery Specifically, this business's net revenue in

2021 decreased by more than 26% compared to the same period in 2020 before ending 2022 with a growth of nearly 2 billion VND Along with that, Biti's net profit also decreased significantly in 2021 and then regained a faster growth rate of VND 96 billion in 2022 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 operate growing equipment becoming more expensive Investing in the treatment of environmentally polluted waste also causes a loss of a large amount of business revenue, affecting the business's ability to make a profit

1.4 Technology

In the first 18 years of the 21st century, there has been a remarkable development in

technology, leading to bringing significant impacts to Biti's Technology is applied in the design and production process to create products that are both effective in quality and comfortable Developing technology makes communication with customers faster Customers can order and pay without having to go to the store, making purchasing easy and attracting many 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 cause Bitis counterfeit products to be eliminated In our country, policies on protecting consumer rights are relatively good, creating peace of mind for consumers, with many consumers becoming 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 durability and 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 the opportunity to integrate into the world shoe market

2 Micro economic

2.1 ENTERPRISE

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SWOT model:

Strength:

- The product has high quality and durability, but the price is lower than imported products of the same type, suitable for all ages and classes, so it is suitable for the consumer psychology of "eat well and wear well" to initially create trust information for consumers

- 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 to help the company grow

- Pay attention to communication and promotion strategies; Well-invested marketing strategies 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 consumers with high-quality products

Weakness:

- Releasing many products with many different lines causes some lines to become obscure and unknown

- Not proactive in raw material sources, most of which have to be imported abroad at

high prices, which costs a lot of money

- Lack of human resources in the design team slows down the process of producing finished 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, serve the same target customer segment and satisfy the same customer needs This force is the main factor 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, they have 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 on the market

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

3 Potential competitors:

- Potential competitors are individuals, companies, and businesses that have not yet competed 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 in the world Therefore, competitors who want to join must have strong investments, have truly effective campaigns to attract and change consumer loyalty, and must also convince distribution 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 many

classes with different economic abilities, so they can request how the product should be

increased, 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 that

have similar values, benefits, and uses

- With Biti's, because of the variety of products such as shoes, boots, boots, etc., the possibility 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 boots

because 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 Production and Trading Company Limited

- Plastic eyelets and buckles: Trieu Phong Company Limited

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

The purpose of choosing the above companies is based on the need to diversify product types and ensure product quality for customers, so nearly 70% of raw materials are from abroad 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 reach

consumers regularly and quickly Customers can easily buy Biti’s products, it is very

convenient with a variety of types at the place of sale, customers can come to the place to try and experience the products directly

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

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 - l5 years old: Have their own interests and experiences This age group's

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

designs

2 Young people:

At this age, they buy and pay for themselves In general, VIETNAMESE youth have fashion trends and want to assert themselves This is also a young age group that likes dynamism, so they are attracted to new, special, innovative designs that have their own

identity that matches their aesthetic taste

3 Middle-aged

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

4 Old people

They often choose products that bring a sense of comfort, simplicity, dark colors and convenience

2.5 Competitors

Biti's has to compete with many big international brands imported into Vietnam such as

Nike, Adidas, Vans, Converse or domestic brands that have a certain foothold such as Vina

Shoes, Juno and especially Bitas

O At the end of 2016 and early 2017, the Biti's empire returned with the Biti's Hunter

brand after many years of being forgotten by customers

- Causing a stir with the "Go to Come Back" Campaign, Biti's was very smart in hitting the right psychology of today's young people wanting to go, wanting to experience and

explore the world around them, but still always remembering their family- Wherever you go, you must turn towards

-Biti’s knows how to grasp the psychology of young people when inviting famous idols like 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 organizes contests such as a debate contest around the topic "Going to return" with KOLs and the contest "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

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

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

1 Objectives and goals

a Current situation

Vietnam ranks second globally in footwear exports, constituting approximately 10% of the

total global export volume Notably, by 2020, Vietnam had ascended to the position of the

world's leading exporter of canvas shoes in terms of value, surpassing even China, as reported in the World Footwear Yearbook Vietnamese footwear enjoys a wide reach, being

exported 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 billion USD, 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 big

brands 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 long time 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 searches

originate from Ho Chi Minh City Moreover, Ho Chi Minh City emerges as the primary region in seeking information about the Biti's brand, with the brand's search volume

consistently hitting at least 50 times per week from May 7, 2023, onwards These statistics

serve as empirical evidence attesting to the widespread popularity of the Biti's brand

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tigure l1: Search for Sneaker

Figure 1 2: Search for Biti’s With an extensive legacy of nearly four decades centered on "gentle foot care,” Biti's has ingrained itself deeply within the consciousness of domestic consumers The introduction of Biti's Hunter signifies a refreshing entrant into the athletic footwear market, heralding a remarkable ascent to prominence within the Vietnamese footwear landscape Biti's Hunter strategically leverages contemporary design aesthetics, aligning with the rapid turnover inherent in the fashion footwear product lifecycle Boasting enduring quality, commendable durability, and competitive pricing, Biti's Hunter has garnered trust and commendations from numerous young consumers who recommend it to their peers and family members The Hunter line unmistakably targets and prioritizes the youthful demographic, epitomizing Biti's commitment to engaging with customers aged 17 to 25 Beyond being aesthetically pleasing

sportswear, the Hunter collection, with its evocative name, conveys a message to its target

audience: "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's novel offering, Biti's Hunter X VNU, a proactive approach is advocated, entailing the establishment of clear objectives prior to embarking on market research endeavors within the Vietnamese market The overarching objective is to gain deeper insights into customer desires and requirements, thereby stimulating purchase intentions and fostering adoption of the new service By comprehensively understanding customer behavior patterns, this initiative endeavors to instill a pioneering spirit within Biti's, propelling the brand towards the forefront of service innovation and facilitating expansion of market presence within the

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industry Primary research endeavors are strategically structured to align with objectives spanning 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 target customer segment and cultivate potential clientele, thus fostering brand growth and competitiveness comparable brands targeting the same demographic This endeavor is envisaged to bolster market share and confer a relative competitive edge compared to industry peers

+ Secondly, by pioneering the provision of uniquely designed footwear products tailored to students while maintaining affordability, Biti's endeavors to compete effectively with foreign brands currently dominating the Vietnamese market This strategic approach presents an opportunity to carve out a distinctive niche and challenge the dominance of international competitors

- Marketing is recognized as one of the pivotal contributors to Biti’s sustained success over the years Biti's Hunter targets the youthful demographic aged 18-24, comprising individuals with a penchant for exploration and experiential pursuits Consequently, the marketing campaign for Biti’s Hunter x VNU aims to enhance the brand's footwear market share, perpetuating the cultivation and consolidation of Biti’s brand

image as customer-centric, empathetic, and amicable

- In terms of research objectives, a comprehensive understanding of target customers necessitates discerning their preferences and affordability levels concerning footwear usage Furthermore, the company is anticipated to formulate advertising strategies by constructing detailed user profiles

c Goals

Drawing from Biti's existing circumstances and predefined objectives, Biti's Hunter x VNU is poised 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 towards bolstering customer retention and fostering loyalty

- The outcomes derived from conducted research underscore the importance of comprehending the preferences of target customers towards novel offerings

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