Company: BITI’S one of the biggest Vietnamese domestic brand on footwear. Established in District 6, Ho Chi Minh City, 1982. BITI’S accounted for 15% of the domestic footwear market in 2016. BITIS’S products have a renowned reputation of being extraordinarily long-lasting. - Business leaders have a great influence on the operation and regulations of the marketing department must work closely with other functions in the company such as finance - accounting, materials - production, succession planning, upgrading and development, design department, human resources department. These units must be closely coordinated within the Company to accomplish the plan set forth in the Company.
THE UNIVERSITY OF FINANCE AND MARKETING INTERNATIONAL BUSINESS MARKETING STRATEGY FOR BITI’S HUNTER IN VIETNAM GROUP Ho Chi Minh City, 2rd November, 2018 BITI’S Hunter Nhóm DANH SÁCH NHÓM SINH VIÊN THỰC HIỆN STT HỌ VÀ TÊN MSSV CHỮ KÝ GHI CHÚ BITI’S Hunter Nhóm LAYOUT I INTRODUCTION II SWOT & Macro-environment Analysis: SWOT of the company The Macro environment 2.1 The Demographic Environment 2.2 The Economic Environment 2.3 The Political and Social Environment Competitors 3.1 Direct competitors: 3.2 Indirect competitors: III.Segmentation and Positioning Strategy Market segmentation 1.1Geographic segmentation Nations: almost in Vietnam Religion: every part of Vietnam 1.2Demographic segmentation 1.3Psychographic Segmentation 1.4 Behavioral segmentation Market targeting Positioning strategy 3.1 Advantages of competitor’s companies: 3.2 Choosing the right Competitive advantages: 3.3 Selecting an Overall Positioning Strategy: IV Marketing Mix (4Ps) Strategy 4Ps Analysis: 4Ps Proposal: 2.1 Customer's feedback 2.2 4Ps Proposal: Print ad 1.Main Purpose 2.Symbols 3.Promotion campaign a.Objective: b.Strategy: c.Timeline: V Conclusion: BITI’S Hunter Nhóm I INTRODUCTION - Company: BITI’S one of the biggest Vietnamese domestic brand on footwear Established in District 6, Ho Chi Minh City, 1982 BITI’S accounted for 15% of the domestic footwear market in 2016 BITIS’S products have a renowned reputation of being extraordinarily longlasting - Business leaders have a great influence on the operation and regulations of the marketing department must work closely with other functions in the company such as finance accounting, materials - production, succession planning, upgrading and development, design department, human resources department These units must be closely coordinated within the Company to accomplish the plan set forth in the Company -The company now has relationships with hundreds of companies in the country and abroad The company imported raw materials for production of footwear from Korea, Taiwan and China -BITI’S is rated one of the companies with a large distribution network with seven branch centers, 68 marketing outlets and more than 1,500 retail distribution intermediaries - BITI’S Hunter is a new line of products added to the company’s portfolio - Since its release in early 2016, it has become the most sought after products of a wide range of products that the company has to offer and become the company’s most efficient line of products thus far - With a sudden burst popularity of the company after the release of this line of products, we believe that this particular line has a lot of potential - Mission Statement: “Nâng niu bàn chân Việt” The slogan shows that BITI’S geared toward not only beauty but also reliability Slogan also highlights the idea "Vietnamese use Vietnamese goods" - Objective: Increase sales revenue by 10% by the November 2019 Increase market share and customer equity by 2.5% by November 2019 BITI’S Hunter Nhóm II SWOT & Macro-environment Analysis: SWOT of the company Strengths: - The products are high quality and are trusted by the public - BITI’S has wide distribution system (68 marketing outlets and more than 1,500 retail distribution intermediaries) - BITI’S is one of the most famous brands in Vietnam and is used trustfully by the public - BITI’S has a meaningful message that customers easily remember - The company has workshops, laborers, modern machinery and equipment that ensure the quantity - BITI’S has highly skilled workers and deep professional knowledge Weaknesses: - Raw materials and auxiliary industries are underdeveloped - Sales and customer care are not focused - Few types, designs are not suitable for the new trend Opportunities: - Customers prefer to Vietnamese goods plan - Success in the initial branding will be a solid foundation for the subsequent business Threats: - Economic depression - Competing with many good quality and fashionable foreign brands - It is easy to lose market share when concentrating too much on exports The Macro environment 2.1 The Demographic Environment Here is some information on the Population Demographic of Vietnam 0-14 years: 23.55% (male 11,909,326/ female 10,735,324) 15-24 years: 16.23% (male 8,098,019/ female 7,509,021) 25-54 years: 45.56% (male 22,087,095/ female 21,719,615) 55-64 years: 8.55% (male 3,798,928/ female 4,419,837) 65 years and over: 6.12% (male 2,281,923/ female 3,601,075) (2017 EST.) As for BITI’S Hunter, we aim to ages from 17 to 25 years old BITI’S Hunter Nhóm 2.2 The Economic Environment Vietnam is a densely populated developing country that has been transitioning from the rigidities of a centrally planned, highly agrarian economy since 1986 to a more industrial and market based economy, raising incomes substantially In 2016 and 2017, Vietnam missed its yearly growth target of 6.7% due to environmental issues – drought and salinization - impacting the agricultural sector, and low oil prices affecting the extractive sector However, annual GDP growth reached 6.3%, reflecting strengthening domestic demand and strong manufacturing exports With average monthly wages at just over 5,000,000 VND (215 USD), most Vietnamese would be able to afford BITI’S Hunter if they deem the value worth it BITI’S Hunter Nhóm 2.3 The Political and Social Environment BITI’S company always grasp the spirit of doing business in accordance with the policy of according to the law, the company has paid attention to the lives of laborers and applied the policy to the laborers right from the first day of the labor law The signing of collective bargaining agreement is a concrete demonstration One special feature of the Vietnam Market is that Vietnamese can easily be influenced to be biased toward products and brands with Vietnamese origin out of patriotism and nationalism Brands that have successfully utilized this feature have seen significant success Competitors 3.1 Direct competitors: Adidas and Nike are direct competitors of BITI’S because of the same footwear, high fashion and same customer segmentation For example, BITI’S Hunter and Adidas Ultra boots are aimed at young people who are dynamic and catch the trend 3.2 Indirect competitors: Juno, Bershka, Zara are potentially indirect competitors of BITI’S although these are not only the major brands in the clothing, fashion handbags but also are investing the production of shoes for young people III Segmentation & positioning strategy: Market segmentation 1.1Geographic segmentation Nations: almost in Vietnam Religion: every part of Vietnam 1.2Demographic segmentation - Age: 17-25 Generally, young generation have a tendency for time and want to assert themselves They are attracted by the new trend, beautiful design - Gender: male and female - Income: medium income, who are less price sensitive 1.3Psychographic Segmentation Social class: middle and upper middle class Life style: dynamic young people today love exploring, have passion of tourism They are looking for a quality sport shoes with fashionable design at reasonable price 1.4 Behavioral segmentation - Personal needs: When they buy a product, they often pay much attention to many styles; colors Selecting shoes should suit for personalities and lifestyle - Work needs: The product is required to be highly specialized, reliable and safe for users - Communication needs: The product must be polite and formal to the users BITI’S Hunter Nhóm Market targeting - Today, young consumers wants to express their style and personalities through the brand they use And to attract the attention of customers, BITI’S Hunter sports shoes with optimal features for consumers are born - So far, most BITI’S products have been targeting customers in the lower middle class and working class With the 500,000- 1,000,000 VND (21.5 USD to 43 USD) range price, BITI’S Hunter is the company’s offer toward the middle and upper middle class who are less price sensitive Positioning strategy 3.1 Advantages of competitor’s companies: * Direct competitors: ADIDAS: + Good durability, sturdy, adaptable in all environmental conditions + Easy to clean, good force + Trendy, stylish, sporty style, comfortable for the user + Adidas has travelled a long way to establish itself as a youthful brand + Celebrity endorsements & sponsoring major sports organizations + Adidas has an effective distribution system for their products available through different channels NIKE + Durable, lightweight, good quality, high strength + Youthful, dynamic, light color + Utilize modern tools and rate 1st place of technology + Celebrity endorsements & sponsoring major sports organizations + Regular promotions are available at the end of the year * Indirect competitors: Bershka - Dedicated canvas sneaker: Although it is not one of the famous names in sports shoes, it has reasonable prices and designs that catch the trend; Bershka has conquered the hearts of people who love shoes Costs only 29.99 Euro (about 710 thousand VND) BITI’S Hunter Nhóm Zara - Ultra light sneaker: Although not prominent in color, Zara sneakers still have plus points thanks to its weight With the base is made from synthetic rubber and body garments from fabrics waterproof, this shoes not only bring a slight sense but also comfort the users Shoes are sold for 29.95 euros (about 710 thousand VND) 3.2 Choosing the right Competitive advantages: Based on the strengths of two great competitors such as Nike and Adidas, BITI’S has launched the BITI’S Hunter product with outstanding colors, youthfulness along with modern designs and Hunter will give you the character the merits of craftsmanship Hunter: fast - focused - accurate to be your companion, conquering the challenges of the future journey 3.3 Selecting an Overall Positioning Strategy: Selecting “MORE FOR THE SAME “for positioning strategy: - BITI’S can attack a competitor’s more-for-more positioning like Nike or Adidas by introducing a brand offering comparable quality at a lower price - The price of 650.000VND for men and 495.000VNĐ for women is considered attractive compared to the quality and make the difference between Hunter and sports shoes are available in the market - BITI’S has made great use of social networks including Facebook and Instagram A good communication strategy with good content, persuasive messages, beautiful images and highly interactive activities helped BITI’S speak the same voice to young people Various online activities such as giveaway, online sales, Uber Move (chance of getting BITI’S Hunter shoes when traveling by Uber); BITI’S also used Influencer 3.4 Developing a positioning statement - So far, most BITI’S products have been targeting customers in the lower middle class and working class with 500,000- 1,000,000 VND (21.5 USD to 43 USD) range price - With the Hunter product, BITI’S are clearly aiming at conquering young customers (17 – 25) - Experience the feeling of "Light as flying" with Hunter is an activity that is extremely consistent with the brand "modern - surprises - overcome the challenge" that BITI’S is looking forward to IV Marketing Mix (4Ps) Strategy 4Ps Analysis: Price: As stated before pricing of this particular type of products is ranging from 500,000 to 1,000,000 VND (or about 21.5 to 43 dollars) This price segment allows the product to be considered by the working class and the middle class when seeking out for a good price for value while also allow for the product to be qualified of a small percentage of customers with higher incomes BITI’S Hunter Nhóm The price range allow BITI’S to development well-designed, relatively high quality products that stand up to its promise to “Fostering your feet” and its former reputation as a brand with reliable and long-lasting products Place: BITI’S Hunter, together with most BITI’S products can be found in regional retailers, shopping malls, and distributers in most part of Vietnam The products can also be acquired through online shopping sites such as Tiki and Lazada As for now, BITI’S is one of the most accessible footwear brands in the Vietnamese market So this is by far not a huge problem Product: The BITI’S Hunter has a relatively well developed portfolio with products such as the Hunter Originals, Hunter Lite-knit Summer Vibes, Hunter 3, Hunter Feast, etc These products offer a wide choice in term of fashion and functionality, together with the durability that BITI’S was once famous for BITI’S aim is to promote youthfulness, energy, and experience to the youths with the Hunter Backed with such core values, BITI’S is aiming at the younger market which can potentially be very profitable Promotion: The Hunter product line of BITI’S has frequent promotion marking down the price of products by 10%, 15%, or 20% There are also other promotions at different times at the year Recent promotion strategies have been quite successful with “Đi để trở về” Marketing campaign using Key Opinion Leaders (KOL) getting a total of 1.2 million interactions on social media which can certainly be a very good indicator that promotion efforts are being effective BITI’S Hunter Nhóm The campaign made BITI’S, especially the BITI’S Hunter being one of the most talked about from mid-December 2017 to mid-January 2018 The after effect came months later as searches for the BITI’S Hunter surge in late March, early April 2018 BITI’S Hunter Nhóm 4Ps Proposal: 2.1 Customer's feedback The feedbacks of customers show the biggest of the Hunter and BITI’S as a whole is problems during purchases Of 100 people who were surveyed, up to 21% found issues at purchasing the product, which is a paradox comparing to the number as well as the variety of sale channels that BITI’S currently have From personal experience, we also found that BITI’S is lacking behind in terms of professionalism and customer service at retailers The issues that we had personally faced were that the sellers are neither knowledgeable about the products, enthusiastic, nor able to make a pleasant first impression toward buyers There is also a problem with the Hunter’s stockpile with a lot of models with the suitable sizes sold out Promotion can also be improve with more proactive campaigns to build a strong brand image rather than just focusing on brand awareness which had been done quite well in recent campaigns Good relations with the press and the public should also be emphasized or more capitalized 2.2 4Ps Proposal: Price: We find the price range for now is reasonable and no changes should be made The mid-tier footwear market, which is the sub-50$ price range doesn’t have much competition and such fact should be utilized to position this line of product Product: Research and development should focus on improving the Air Mesh sole or the rubber lining to improve the look, feel, and structure of the future models Approach focusing on product development, adding a new product the Hunter line BITI’S Hunter Nhóm over the span of 6-12 months would be necessary for the company to keep its competitive advantage Place: Vietnam Market can still be further penetrated It is not yet time to join foreign markets, with a relatively incompetent sale staff and relatively uncompetitive business practices Further development in the system is needed Promotion: Maintaining the usual, on-and-off price promotions or combo discounts or price reduction on certain lines of Hunter Utilizing online retailing intermediaries such as Lazada, Adayroi, and Tiki to offer short time promotion and attractive flash sales is also advisable Promotion campaign: “BE A REAL HUNTER- HUNT FOR REAL EXPERIENCE” on big media networks and systems; spreading the slogan “HERE WE GO.” Use Key Opinion Leaders to spread the message and to gain exposure Public arts on the theme with the tagline “be a real hunter” BITI’S Hunter Nhóm Print ad Campaign: “BE A REAL HUNTER- HUNTING FOR REAL EXPERIENCE” 1.Main Purpose Vietnam is famous for beautiful landscapes and spectacular scenery Let’s live fulfill with our youth without wasting a moment and always trying to find experience as much as possible - Encourages the youth hunting the real experience - Encourages Vietnam Youth naturally share the proud of country; explore their own real and unique experience 2.Symbols - The flash of lightning is the symbol of speed, dynamic and an obsession for boldness - Breaking the stone expresses strength, power, and being firm to face with all challenges 3.Promotion campaign a.Objective: Achieving at least 1.2 million interactions on social media Increase sales by 10% in the next quarter Gaining 5% market share and equity b.Strategy: - Gaining tractions through the use of Key Opinion Leaders - Running promotions over the span of the campaign on the latest Hunter product - Online photo contests with prizes on social media c.Timeline: Summer 2019 (06/2019- 07/2019) - - BITI’S Hunter From 01/06 to 07/06: o Kick starting the promotion program with promotional video, new product introduction, and price promotion follow shortly after o Get Key Opinion Leaders (KOLs) involved through music video, Youtube, and Facebook From 08/06 to 22/06: o Introduce the slogan “be a real hunter” with more imagery about actions and adventures, making BITIS Hunter become not just a line of footwear but rather a symbol for action, energy, and youth Nhóm - o KOLs should be shifting from general youth images to less conventional KOLs who are actually involved with an energetic lifestyle This process should be pace out to only about 2-4 KOLs each week o This is also a good time to get online distributors and retailers involved with special promotion through online orders From 22/06 to 01/07: o Send out a closing message implying the image of youths and boldness that BITIS Hunter want to bring o Conclude the photo competition and declare winners, interview them if possible V Conclusion: In conclusion, BITI’S has done an exceptional job getting themselves back into the market over that last years through the BITI’S Hunter There are a lot of things that they have done right such as raising brand awareness or creating conversations However, most of the Promotion efforts still revolve around awareness rather than preference and actual purchase The perceived values from BITI’S products remain relatively low with bad retail services and short warranty time This can be tweaked, changed, or improved so as to provide customer more values and build profitable relationships with customers BITI’S Hunter Nhóm References: https://www.slideshare.net/ThanhPhm49/kho-sat-kin-khch-hng-v-thng-hiu-bitishunter http://www.younetmedia.com/insights/bitis-hunter-giai-ma-suc-nong-thuong-hieuviet-tren-social-media.html https://tradingeconomics.com/vietnam/wages https://www.indexmundi.com/vietnam/demographics_profile.html https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja& uact=8&ved=2ahUKEwir3p6SiZTeAhXIAIgKHc_IBwcQjRx6BAgBEAU&url=http%3A%2F %2Finsomarketing.vn%2Fbiti-s-hunter-giai-ma-suc-nong-thuong-hieu-viet-trensocial-media-tt5&psig=AOvVaw1itHpOiIvOaYGAE7sShSax&ust=1540092269461608 https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja& uact=8&ved=2ahUKEwje2pP2jZTeAhUbdt4KHTkbBksQjRx6BAgBEAU&url=http%3A% 2F%2Fwww.younetmedia.com%2Finsights%2Fbitis-hunter-giai-ma-suc-nong-thuonghieu-viet-tren-socialmedia.html&psig=AOvVaw1itHpOiIvOaYGAE7sShSax&ust=1540092269461608 BITI’S Hunter Nhóm ... problem Product: The BITI’S Hunter has a relatively well developed portfolio with products such as the Hunter Originals, Hunter Lite-knit Summer Vibes, Hunter 3, Hunter Feast, etc These products... customers BITI’S Hunter Nhóm References: https://www.slideshare.net/ThanhPhm49/kho-sat-kin-khch-hng-v-thng-hiu-bitishunter http://www.younetmedia.com/insights /bitis- hunter- giai-ma-suc-nong-thuong-hieuviet-tren-social-media.html... Positioning strategy 3.1 Advantages of competitor’s companies: 3.2 Choosing the right Competitive advantages: 3.3 Selecting an Overall Positioning Strategy: IV Marketing Mix (4Ps) Strategy 4Ps