Plan for launching biti’s hunter x individual assignment ThachVN SE04094 MKT101 IB1203 final

9 The Impact of KOL on Biti’s Hunter launching plan .... Definitions and Background Information BINH TIEN IMEX CORP., PTE., LTD BITI'S Binh Tien Imex Corp., Pte., Ltd, the brand name –

MARKETING RESEARCH

Plan for launching Biti’s Hunter X

Vũ Ngọc Thạch

REFERENCES

Introduction 2

Definitions and Background Information 2

BINH TIEN IMEX CORP., PTE., LTD (BITI'S) 2

Sơn Tùng M-TP 2

Key Opinion Leader (KOL) 3

Marketing Strategy 4P 3

Analysis 4

Milestones of Biti’s 4

Situational Analysis 5

Objectives 8

Strategies 9

The Impact of KOL on Biti’s Hunter launching plan 10

Conclusion and Suggestion 12

References 13

Introduction

BINH TIEN IMEX CORP., PTE., LTD (Biti's) campaign "Tay Son spirit speed" took place in 2002 has brought back the successful and create a great impression in the mind of customers After 15 years, by the country's expanding integration, Biti's is dying day by day in the old trail, until the launch of Biti's Hunter sports shoes in December 2015 It is a depth investment

in design and competitive pricing, Biti's truly transformed itself and came back strongly

Definitions and Background Information

BINH TIEN IMEX CORP., PTE., LTD (BITI'S)

Binh Tien Imex Corp., Pte., Ltd, the brand name – Biti’s, were established in Ho Chi Minh City from 1982; former two production units called Binh Tien and Van Thanh with 20 employees, and specialized in producing rubber sandals In 1986, the two units has merged into Binh Tien Rubber Cooperative which started producing high-quality footwear for the domestic market and exporting to Eastern and Western Europe It then changed to BINH TIEN IMEX CORP., PTE., LTD Company

At present, Biti’s is the leading footwear manufacturer in Vietnam With the strong growth, Biti’s have also penetrated to real estate investment field They built trade centers and many apartments in the North, in the Middle and in the South of Vietnam in order to meet the requirement of Vietnamese people in doing business and requirement of houses to live

in the situation of integrating to the world market

Biti’s has become a group of 02 companies: Binh Tien Imex Corp., Pte., Ltd (Biti’s) and Binh

Tien Dong Nai Imex Corp., Pte., Ltd (Dona Biti’s)

Sơn Tùng M-TP

Nguyễn Thanh Tùng (born July 5, 1994), known professionally as Sơn Tùng M-TP, is a

Vietnamese singer-songwriter and actor Most of his songs, such as "Cơn mưa ngang qua",

"Em của ngày hôm qua", "Chắc ai đó sẽ về", "Chúng ta không thuộc về nhau",… became big hits and earned the top ranking in Vietnamese music charts

His debut leading role, Đình Phong, in the movie Dandelion won Golden Kite Awards for Best New Actor and received overwhelming positive feedbacks from the media, movie reviewers and public audiences In 2015, he won the MTV EMA Milan 2015 for Best Southeast Asian Act

In the early of 2017, Sơn Tùng M-TP became Biti’s Brand Ambassador His influence, especial

in the young Vietnamese people, has made a big help in Plan for launching Biti’s Hunter X

by wearing a pattern of Hunter Feast on his MV “Lạc trôi”

Key Opinion Leader (KOL)

KOL, better known as Key Opinion Leaders, are what consumers are gravitating towards in hopes to filter the clutter that digital advertising has created They are seen as having more importance and relevance than mass media because they are able to connect and relate

to their audience in a way that’s intimate and authentic

Key Opinion Leaders work double-duty: they not only connect with their audience, but in most cases, they also have a specific target demographic This allows brands to effectively allocate their marketing budget because of the targeted, niche audience the influencer has access to

In this research, we will take the point on Sơn Tùng M-TP as a KOL in Biti’s Hunter Launching plan

Marketing Strategy 4P

Marketing is simplistically defined as “putting the right product in the right place, at the right price, at the right time” Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up And if even one

element is off the mark, a promising product or service can fail completely and end up costing the company substantially

The use of a marketing mix is an excellent way to help ensure that “putting the right product

in the right place, at the right time” will happen The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering The marketing mix is most commonly executed through the 4P’s of marketing: Price, Product, Promotion, and Place

These have been extensively added to and expanded through additional P’s and even a 4C concept But the 4Ps serve as a great place to start planning for the product or even to evaluate an existing product offering

Analysis

Milestones of Biti’s

The process of formation and development:

• In 1982, Biti’s has established in Ho Chi Minh City, former of two units called Binh Tien

and Van Thanh with 20 employees, focusing on simple sandal production

• In 1986, two units had joined into “Hợp Tác Xã cao su Bình Tiên”, production force to

domestic consumption, and exports to Eastern Europe and Western Europe

• In 1989, “Hợp Tác Xã cao su Bình Tiên” has become the first Vietnam Non-state units

of which has grant the right to imports and export directly

• In 1990, “Hợp Tác Xã cao su Bình Tiên” has renovate production technology (EVA)

• In 1991, Sơn Quán joint-venture company has established This is the first Vietnam’s

joint-venture company between a Vietnamese private sector and a foreign

company (for 18 years)

• In 1992, “Hợp Tác Xã cao su Bình Tiên” has transformed into Consumer Goods

Manufacturing Company Bình Tiên (Biti’), producing foam slippers, sandals, shoes…

for consume inside and abroad

• In 1995, Bình Tiên Đồng Nai Co., Ltd (Dona Biti’s) has established

• In 2000, Representative office in Yunnan, China has established

• In 2001, Biti's has been certified ISO 9001: 2000 by BVQI and QUACERT

• In 2002, Biti's Tây Nguyên Trade Center has established

• In 2005, Biti's Northern Trade Center has established

• In 2006, Biti's Lao Cai Trade Center has established

• In 2008, Biti's West Branch has established

• In 2009, Biti's South Branch has established; Launch of Hanoi - Lao Cai - Hanoi Sapaly

railway

• In 2013, Launches the first 4-star hotel in Lao Cai: Sapaly Hotel Lao Cai

Achievements and Evaluation:

• Top 40 The most valuable corporate brand in Vietnam 2016, 2017

• Become Vietnam National Brand Value twice(2008 and 2010)

• Received "Top Brand in Vietnam High Quality Brand" in 2007

Established Openness Renovate Tech ISO 9001:2000 Leading footwear company in

Vietnam

• Won the Top Ten Gold Cup of Vietnamese prestige brand by the Union of Science and Technology Associations of Vietnam 3 years in a row (2005, 2006 and 2007) Situational Analysis

The growing of economy standard goes along with higher competencies In the years of 2000-2014, Vietnam’s Ministry of Industry and Trade has increase in actions of foreign trade Which mean, any Domestic Corporation like Biti’s has to face with a problem of to be in competition with others Foreign Enterprises As a long-standing Domestic Corporation, Biti’s has their unique advantages, in specifically is Biti’s Hunter

Internal Analysis:

Competitive advantages:

• Deep-rooted in Vietnam Market

• Distribution system

• Vietnam high quality goods

• Brand awareness

• Lower cost, to be compared with Nike, Adidas

Brand equities:

• Leader in the footwear for youth in Vietnam

• Good quality, lower price

• Energetic, Comfortable design

• Gender-specific

• The youth loyal to Hunter

External Analysis:

Demography:

• Vietnam has more than 90 million people

• About 18% Vietnam population in the age of 16 - 25

• About 33.6% of total population are Urban citizen

Economy:

• In 2007, Vietnam has joined WTO – more competitive, export-driven industries

• Vietnam was one of 12 nations that concluded the Trans-Pacific Partnership free trade agreement negotiation in 2015

• During 2015, Vietnam’s managed currency, the dong has depreciated about 5%

• GDP growth with the rate of 6.7%

Footwear Industry:

• Majority of the companies are owned by Vietnam government and private sectors

119 enterprises (72 private enterprises and 44 FDIs) that produce raw materials and machinery for the footwear manufacturers

• Total footwear suppliers: 23% are FDIs that share 77% of the country’s total export sales Nearly a half of them are from Taiwan and South Korea Exports of Vietnams’ footwear in 2015 is $12 billion

Fashion styles preference (Teenagers):

• Vietnamese teenagers choose fashion styles that are on trend, but they must reveal theirs characteristic at the same time

 Want to be different and live true to their personality, while still being acceptable and trendy

Fashion styles preference (20-29):

• Although the need to show their personality via fashion is less than the teenagers, the

Vietnamese Young still prefer characterized, but trendy clothing

Behavior trends:

• Social media allows people to express themselves

 Vietnamese youth begin to realize the need to be heard, to stand among the crowd and to build a favorable personal image among the community

• Backpacking is popular among young people

• Vietnamese young people show an interest in daring and adventurous

entertainment activities

• Quick and easy-going relationship is a norm

 Vietnamese young people like to take risks in their lifestyle and behavior They adopt trends that are daring and adventurous very fast, as long as it is not too dangerous Technology:

• Media and Communications: The international communications system and internet infrastructure are very popular in Vietnam

• About 52% population use Internet in Vietnam

• In 2015, mobile broadband Internet have 36.28 million subscribers, with the rate of 40.1 subscribers per 100 inhabitants

Ecology:

• Rapid development combined with deforestation, few or nonexistent vehicle

emission standards, polluting gasolines motorbikes, and poor urban planning have

caused poor air quality in major cities

Competitor Analysis:

• Direct competitors as international sport shoes brands: Nike, Adidas, Reebok, Puma, Vans…

• Other direct competitors: Vina Giày, Hồng Thạnh, Converse…

Positioning map-sport shoes:

SWOT Analysis:

Objectives

Missions:

• Create the high quality and fine design sport shoes with affordable price especially for Vietnamese

• About 50% target audience is aware of campaign

• Gain 10% market share in the firstyear

Vision:

• Gain 30% market share in 2020

• Become the international brand

• Main gaining sale brand for the company

• Spread to the Europe and America market

• Become the leader in Vietnam medium segment sport shoes market

Strategies

Marketing Objectives:

• About 30% target customer is aware of Biti’s Hunter

• About 5% of them buy the product

• 15 times engagement on social media, digital platform in the first year

• About 10 million reach, 1 million engagement (like, share, comment) for online

content on fan page

• About 150 articles on online newspapers (80% is earned media)

• 7 PR Clips appeared on Youtube Trend Dashboards

• Number 1 topic about sport shoes which have most discussion and comment on social media in Vietnam.|

Financial Objectives:

• 500 million lost at most for the first 6 months

• Earn revenue after the first 6 months

• Reach break-even point in 1 year

Marketing Strategies:

Plan for launching Biti’s Hunter X focus on 3 aspects:

- Price Adjustment

- Product Improvement

- Increasing Promotion

Price Adjustment:

• Lowering product price with the aim of increasing sales, getting the number of

customers

• After getting a stable number of loyal customers, the price of the product will

increase to gain revenue, improve the product

Product Improvement:

• Improve quality, develop more designs by recruiting new young design team

• Upgrade the product, expand to many product lines, such as sport shoes for

football, basketball…

Increasing Promotion:

• Target customer: Young people who aged from 16 to 25

• Target cities: 6 big ones (Ho Chi Minh, Ha Noi, Hai Phong, Can Tho, Hue, Da Nang)

 Invest to digital marketing to reach them easier Digital platforms include social media, viral clip, online articles, pay per click, mobile engagement

 Invest to event sponsorship, choose the right KOL (Sơn Tùng M-TP for this case)

Diversity Activity Plan:

• Uber Move: A co-operate campaign between Biti’s and Uber on 01 Apr 2017, that every Uber customers on this day has a chance to receive a pair of Biti;s Hunter

• Giveaway: This is an activity on fan page, where follower need to capture their favorite colors of Biti’s Hunter in a graphic interchange image, like and public share for the chance win to a pair of Biti;s Hunter

• VR Hunter Experience and University Tour: Experiment activities in commercial center and university, where participant can join to win a pair of Hunter in black – a limited version of Biti’s Hunter shoes

• Team Hunter T-shirt Giveaway: Giveaway T-shirt of Biti’s Hunter Team on fanpage

• Hunt Hunter Shoes Online: Giveaway sale off code on popular website like

Dantri.com, Kenh14.vn, Soha.vn …

• “Happiness to me is…” Campaign: It’s became a trend during International Day of Happiness - 20 March 2017, where people share what is the happiness to them

The Impact of KOL on Biti’s Hunter launching plan

The successful KOL strategy has bring Biti’s a great result for Biti’s Hunter launching plan

In 2017, as the release of Lạc Trôi, Biti’s Hunter became one of top 10 Business Strategy has mentioned the most on social media in January 2017 The mini games, competition and the news has updated usually updated on fan page which is influence on Vietnamese youth community (Kenh14.vn, YAN, Yeah1…) also help brand getting closed to their customers

Sơn Tùng M-TP has released a powerful new video for his song: “Lạc Trôi”, he became the most mentioned singer in social media, he also became the famous who has the most reach and like from the news, picture and video about this song

In the first 4 months of 2017, Biti’s had made a good interact on social media (more than

500 discussions) Almost of these come from Facebook because of fan page It’s not a huge number of discussion on 4 months, but the effectiveness is need to be count Nearly 4 million views, 20.000 comments, 4.5 million likes, 2.000 share are really good number to show the success on approaching target consumer

Biti’s spent 3 billion Vietnam Dong on the launching of Biti’s Hunter to win confide of middle and low consumer segment Only one week after the release of MV “Lạc Trôi”, Biti’s Hunter goes on a fire sale in the whole country; 300% is the number of quantity sales that Biti’s received, to be compared with quantitative sales target Even more, Biti’s has the contract with Walt Disney for Vietnam’s Fairy Tale image on production

Conclusion and Suggestion

Plan for launching Biti’s Hunter X, to be compared with other brands, this is not a truly a recognizable campaign It’s a Vietnamese brand is focused on social media for the first time and has the right invested in the campaign

Biti's Hunter has the advantage of price, design and love for domestic brands, but in terms

of emotional benefits - a very important element in the sport production, Biti's has many disadvantageous compared to competitors The market of sports shoes in Vietnam with the fierce competition between the major brands such as Nike, Adidas, Puma now has the name Biti's

However, the question of whether the Vietnamese brand is upstream or not still a big

mystery and needs a lot of time to answer