Phân tích chiến lược thị trường bitis hunter ( BITI’S HUNTER MARKETING STRATEGY)

However, when the major sneaker brands in the world began to enter the Vietnamese market, Biti's seemed to be quite lagging behind in terms of design, technology and user experience.. Th

Table of Contents

I Introduction 2

II Basis of strategy formation 3

1 SWOT analysis 3

2 Macro environmental 3

a Economic 3

b Demographic 4

c Social 4

d Technology 4

e Political 4

3 Micro Environmental 4

a Enterprise 4

b Suppliers 5

c Customerss 5

d Competitors 5

III Marketing strategy analysis 6

1 Market segmentation 6

a Geographic segmentation 6

b Demographic segmentation 6

c Psychographic segmentation 6

d Behavioral segmentation 6

2 Select target market 6

a Market appeal 6

b Company goals and capabilities 7

c Sales 8

d The market supply and demand 9

e Competitor 9

IV Market positioning 10

V Conclusion 11

I Introduction

Established in January 1982, in District 6 - TP Ho Chi Minh, after 39 years of growth and development, Biti's Company has made significant contributions in the economic development of the country Starting from two complexes with about 20 companies specializing in the production of rubber slippers Nowadays, 20 million pairs of shoes are produced every year, it became the largest footwear manufacturing and retailing

corporation in Vietnam “The company focuses on improving the quality, to better meet the expanding and diversified requirements of customerss, similarly as the meaning of the identity of Biti’s brand”, said the chairman of the Board Biti's is not only a big brand of Vietnam, but also a pride of Vietnamese people in the process of national assembly integration with the world economy

Biti's used to be the first choice when thinking about buying a pair of shoes, a sandal or a pair of sandals However, when the major sneaker brands in the world began to enter the Vietnamese market, Biti's seemed to be quite lagging behind in terms of design,

technology and user experience

Everything changed when the Biti's Hunter line was born Biti’s Hunter is a new

product’s line which was established in early 2016, focused on fashion sport-inspired sneakers The shoes are really a breakthrough compared to the "Made in Vietnam"

sneaker products so far.Customerss will be surprised because after more than 30 years, the brand has returned with extremely remarkable points, superior to previous products This not only became the best-selling line of product but also being the company’s most efficient line thus far

II Basis of strategy formation

1 SWOT analysis

- Strengths:

o High quality product

o Wide distribution network (156 Marketing Store and more than 1500

marketing intermediaries retail store)

o Plentiful financial resources

o Self-manufacturing with well-trained worker and modern equipment

o KOLs marketing was attracted with the customers

- Weakness:

o Raw materials and auxiliary industries are underdeveloped.

o Lack of customers services

o Not having a significant technology to apply on the products

- Opportunities:

o Well-known and trusted brand with Vietnamese people

o Variety of fashionable design

o Product exported to more than 40 nations

- Threats:

o Industry competitors from China with various design and cheaper cost

o Expensive manufacturing equipment

o Fake product

2 Macro environmental

a Economic

- Due to the economic and political innovation in 1986, Vietnam rapidly

transformed from one of the poorest country to a low-middle-income nation From

2002 to 2018, GDP increased 2.7 times, reaching over US$2,700 in 2019 The poverty rate diminishes from more than 70% to less than 6%.1

- In 2020, the average monthly income per capita in Vietnam reached approximately

VND 4.19 million, indicating a slight decrease from the previous year.2

- Overall, with the development of economics and the average monthly income per

capita in Vietnam, the Biti’s Hunter products would be able to afford by

Vietnamese

b Demographic

- Biti’s Hunter products tend to late-millennials or generation-Z, which are at the

age of 15 to about 28 According to Vietnam Population Pyramid 20213, the customers of Biti’s Hunter take about 29.5% of the population of Vietnam

- The sneakers form Biti’s Hunter are unisex product, so both male and female can

wear every model of them The increase of gender disparity doesn’t affect their business

c Social

- During the international integration of Vietnam, the sneaker culture became more

and more popular with the young people, especially generation-Z This helps Biti’s Hunter to approach the customers

d Technology

- Biti’s Hunter technology is quite modern with imported equipment On the other

hand, the development team is not good enough to create a break-out significant technology for their products

e Political

- After the “Comprehensive and Progressive Agreement for Trans-Pacific

Partnership - CPTPP” and “European Union-Vietnam Free Trade Agreement - EVFTA”, Biti’s not only have the easier way to import the materials but also the opportunity to export their product into those groups’ members

3 Micro Environmental

a Enterprise

- Biti’s is a well-known brand with a plentiful capital in about 40 years since its

established

b Suppliers

- Biti’s imported about 60% materials, and the rest are from local suppliers The

main supplier is:

o Leather: Weitai JSC.

o Metal button: Tim Do LTD.

o Plastic: Imported from Holland and France, Polystyrene Vietnam LTD.

o Soles: Tae Sung LTD., Trieu Phong LTD

c Customers

- After 39 years, Biti’s has become the most popular Vietnamese footwear brand in

people’s mindset

- Biti’s Hunter products target young people, from 15-28 years old Therefore, their

products are always designed with the trend and the design is always focused on

so they release new models regularly to retain their customers

- With the store and retailers in every region and digital stores in some online

trading platforms such as Tiki, Shopee, Lazada, Biti’s Hunter customers can easily buy the products

d Competitors

- With international integration, there are many sportswear brands from all over the

world comming to Vietnam with various of design, quality, price…

- Direct competitors: Adidas, Nike, Puma because of the same type of footwear,

high fashion and same customers segmentation

- Indirect competitors: Zara, H&M, MLB, basically Pull and Bear,… particularly

are potentially indirect competitors although these definitely are not only the sort

of major brands in clothing, fashion but also are investing in the production of shoes for sort of young people in a subtle way Beside that, the particularly fake

products from China with generally low price, actually good design but fairly low quality really is also a threat to Biti’s Hunter

III Marketing strategy analysis

1 Market segmentation

a Geographic segmentation

- Biti’s has covered all over the nations, their store and retailer are located in every

province, so the customers can easily find the product

b Demographic segmentation

- Age: 15 to 28 years old

- Gender: Both male and female

- Income: Middle income, who are less price sensitive

- Occupation: Every type of occupation, especially the student

c Psychographic segmentation

- Lifestyle: the targeted customers is care about self-assertion, love exploring but

not spend too much money for a footwear goods

- Hobby: Fashion, travel, sports

d 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, for all

intents and purposes safe for users

- Using intensity: almost every day, with various uses like hanging out, playing

sports, traveling,…

2 Select target market

a Market appeal

- Using Porter’s Five Forces model, Biti’s Hunter market analysis is:

o Competition from competitors: at the market, there are various international

sneaker brands with fashionable designs, high quality and modern technology like Nike, Adidas, Puma,… Moreover, in Vietnam, there are many local sneakers manufactures such as Bita’s, Juno, … with low-cost products, which compete with Biti’s Hunter

o The threat of the new entrants: due to the intrusion of sneaker culture, there

are many new local brands coming into the market like Ananas, Mot, Rienevan,… These brands have the same targeted customers, fashionable, cheap and trending product, with good marketing

o The threat of substitute products: firstly, the weather in Vietnam is divided

into 2 seasons: dry season and rainy season During the rainy season, wearing sneakers is a bad choice so people prefer slides or sandals

Secondly, at the age of 22 and above, people will get a job and some of them prefer leather shoes to sneakers for going to work However, when hanging out, traveling or playing sports, people must wear sneakers so the threat of substitute products is not too much

o The bargaining power of customers: Within the last 5 years, when the

sneakers culture became more and more popular in Vietnam, customers can spend a lot of money to buy a pair of sneakers they like, so there are not too many threats

o The bargaining power of suppliers: in the industry decade, there are many

materials suppliers for the company to choose for the manufacturing The government also supports the enterprise by joining CPTPP and EVFTA, which helps easily to connect with the foreign suppliers and import the material

- Overall, the market appeal is attractive with high competition.

b Company goals and capabilities

- Biti’s Hunter goal is to bring a feeling of lightness to the user with structural and

technical features that help the footsteps become “Light as flying”, can feel the

comfort and coolness even though they have to move continuously all day long In order to achieve the set goals, Hunter must have enough resources in terms of capital, technology, production, human resources,… to help the company stay firm

in its market segment

- Human resources: the brand was founded by a company with a long history and

attached to many generations of Vietnamese people, a large and professional staff, the brand representatives are famous celebrities like Son Tung MTP, Soobin, Viet Max, Huong Giang,…

- Technology: The technology applied on Hunter's shoes is the most modern

technology in Vietnam's sneakers manufacturing

- Customerss: Biti’s Hunter is a very familiar name and is always the first choice of

loyal customerss It has a relatively large appeal because of its comfort, light and extremely durable

c Sales4

- Since the beginning of 2017, Biti's finally goes back with the makeover of the new

product line Biti's Hunter in a big way Over the very next three years, Biti's business for the most part continued to specifically grow

- In 2019, the fairly net revenue of parent company Biti's reached VND 1,954

billion, and VND 111 billion in definitely net profit, up 51% and 42% respectively compared to 2016, which basically is quite significant

- Similarly, the business results of Binh Tien Dong Nai Co., Ltd (Dona Biti's), a

subsidiary of Biti's established in 1995, also showed a positive signal when

continuously growing with net revenue and profit Net profit in 2019 reached VND 1,943 billion and VND 113 billion, respectively

- Meanwhile, another newly established subsidiary, Biti's Lao Cai One Member

Limited Liability Company (Biti's Lao Cai) also started to bring in profits

1 Net profit of some footwear company from 2016 to 2019

d The market supply and demand

- In the domestic market in particular, Vietnam is also recognized for its definitely

great development kind of potential definitely due to its growing population In

2018, the population of our country is about 95 million people with an estimated demand for footwear up to 190 million pairs, which is fairly significant So on average, each person will literally consume 2 pairs of shoes in a year

- Moreover, it is essentially predicted that in the coming time, the demand for

footwear consumption of domestic consumers will continue to increase Increasing income levels will mostly boost people's demand for footwear At the same time, the trend of customers using shoes as a fashion accessory will definitely stimulate the consumption of this item

e Competitor

- Adidas:

o Good durability, sturdy, adaptable in all environmental conditions

o Trendy, fashionable, sporty style, comfortable for the user

o Modern technology in products such as boost, primeknit,…

o Adidas has travelled a long way to establish itself as a youthful brand.

o Celebrity endorsements & sponsoring major sports organizations

o Adidas has an effective distribution system for their products available

through different channels

- Nike:

o Durable, lightweight, good quality, high strength

o Youthful, dynamic, light color

o Utilize modern tools and rate 1st place of technology like Nike Air, Nike

ZoomX, Nike Joyride,…

o Celebrity endorsements & sponsoring major sports organizations

o Regular promotions are available at the end of the year

Summary, Biti’s Hunter definitely is using the Market Covered Strategy, which mostly is the business fulfills every customers’s need for the products in a fairly major way Every customers for all intents and purposes is the target market of the business, fairly contrary

to popular belief

IV Market positioning

Compared to other competitors (especially suppliers from Taiwan and China), Biti's products proved to have superior quality: high durability, smoothness Manufactured by modern technology with imported materials, ensuring international standards Biti's achieved ISO9001 certificate by BVQI organization of the United Kingdom and Quacer

of Vietnam General Department of Metrology, things that few Vietnamese footwear enterprises have achieved Combined with the psychology of Vietnamese consumers in previous years, they like to "eat well, wear durable" Therefore, the company's

positioning strategies mainly focus on quality criteria And Biti's has partly succeeded in building in the minds of customers that they are "Vietnamese high-quality goods"

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 makes the difference between Hunter and sports shoes available in the market

The positioning according to product value has shown high breakthrough thinking and professionalism compared to other competitors

To implement this positioning strategy, Biti's has adopted communication campaigns, pricing based on quality and direct consumption by consumers Referring to Biti's, people immediately remember the slogan "Tender Care of your feet", it partly orients Biti's to be

a Vietnamese product, suitable for Vietnamese consumers This slogan has hit the

national pride, evoked Vietnamese cultural identity, and positioned a beautiful brand in the hearts of consumers

Biti’s are the leading company of footwear products in Vietnam based on sales volume and revenue.Since commending operation in 1982, Biti’s have become more and more popular in Vietnam and win the trust of the customers and have leveraged their network

to introduce new product line Hunter to the market

To sum up, in this age the marketplace is highly competitive and to stay ahead of others brands need a strong strategy.However, strategy is at the foundation of everything they need to excel in a highly competitive and fast changing business environment Even if Biti’s Hunter has a strong competitor, they’re trying to be the best sneakers

manufacturing and retailing company in Vietnam and they have no intention to give up the game During the recent years, Biti’s Hunter using digital, technology, speedy

manufacturing processes, innovation, and collaborations for achieving faster growth