THE ANALYSIS OF MARKETING PLAN OF BITI’S

Executive SummaryF+r the purp+se +f having a deeper understanding +f marketing strategies +f a particular c+mpany, we decided t+ make an analysis thr+ugh the marketing plan of 2017 Biti’

HANOI UNIVERSITY Faculty of Management and Tourism

Introduce to Management

-

-THE ANALYSIS OF MARKETING PLAN OF BITI’S

Tutor: Ms Le Minh Hang Tutorial: Tut 1

Group: 04

Lê Thị Diễm Nguyễn Thu Hoàn

Lê Thị Lựu

Lê Thị Thu Phương

Hanoi, May 17 th , 2018

TABLE OF CONTENTS

1 Executive Summary 3

2 Current Marketing Situation 3

3 SWOT Analysis 5

4 Objectives 7

5 Marketing strategies 7

6 Action Program 11

7 Evaluation and recommendation 12

REFERENCES 14

1 Executive Summary

F+r the purp+se +f having a deeper understanding +f marketing strategies +f a particular c+mpany, we decided t+ make an analysis thr+ugh the marketing plan of 2017 Biti’s Hunter launch campaign in Vietnam In the first part +f +ur rep+rt, the current marketing situation +f the campaign gives s+me basic and helpful inf+rmati+n ab+ut the c+mpany’s hist+ry,, size, current devel+pment, current product lines, target cust+mers, micro and macro impacts on the campaign In the sec+nd part +f assignment,

we als+ make an SWOT analysis t+ cl+sely enter the status +f the c+mpany s+ that we can evaluate the results +n h+w the campaign can devel+p c+nsiderably, gain maj+r success and +verc+me its +bstacles.By then, main issue which is out-of-date design is stemmed from SWOT analysis From that,

a fully analysis +f the +rganizati+n’s g+als is presented with the results and fixed time To accomplish the objectives, the campaign has to complete marketing strategies to launch its new products with attractive promotion, reasonable price, and convenient place Next, our report gives action program for 4Ps with specific tasks and every quarter in the year Last but n+t least, we evaluate about effectiveness

of marketing plan of the campaign and s+me useful rec+mmendati+ns are made f+r future impr+vement.

2 Current marketing situation

2.1 Internal environment

2.1.1 History

Binh Tien Rubber cooperative was f+unded in 1986 by Mr Vuu Khai Thanh The f+undati+n was the merge +f tw+ rubber pr+ducing fact+ries f+unded in 1982 In 1992, the company officially changed to BINH TIEN IMEX CORP., PTE., LTD Company., or Biti’s, for short Started with +nly a small number +f empl+yees specialized in pr+ducing +nly sandals made fr+m rubber, n+wadays, there are +ver 2000 empl+yees w+rking f+r the c+rp+rati+n with a more than 1500 sale agents nationwide In addition to manufacturing shoes to serve domestic customer’s need, Biti’s also perform outsourcing for international companies

2.1.2 Sales

Although Biti’s has not been opened about its sales, it can be seen that not only Biti’s but also other Vietnamese companies are facing decreasing proportion in the footwear market According

to Vietnam’s Leather, Footwear and Handbag Association (LEFASO), the sales of Vietnam’s Footwear and Handbag reached 14.95 billion US dollars However, 78.6% of them came from foreign direct investment (FDI) companies, which means that only slightly more than 21% of them came from domestic companies It is estimated that more than 80% of Biti’s revenue came from its outsourcing work

2.1.3 Product line

Biti’s product line includes a variety +f pr+ducts such as sandals, sneakers, luxury sp+rt sh+es, fashi+n w+men sh+es, canvas sh+es, EVA f+am slippers, etc Among them, the most focused line is sandals and sneakers Despite being the top priority of the company, the design of Biti’s sandals and sneakers cannot show anything outstanding from other brands, except from its logo on the products

2.2 Micro-environment

2.2.1 Customers

Over time everything changes, so does customers’ taste Just about a decade ago, when it came

to purchasing a new pair of sneakers, customers generally had only two options: either Vietnamese sneakers, most of which were Biti’s products, or made-in-China sneakers At that time, customers highly praised Biti’s sneakers over sneakers imported from China for its quality However, nowadays, a customer, especially a youngster, would not only care about the quality but also the design of that pair of sneakers They ask for something from which they can show out their personalities That pair of sneakers should go with a customer’s outfit

as an item of fashion

Customers are also changing the way they purchase a product People are getting busier and they do not want to spend a long time wandering sneaker shops anymore Thus it can easily be seen that young consumer are moving to online shopping Also, with ease of the Internet and the reductant in the logistics cost, even ordering sneakers from oversea is not a big deal

2.2.2 Competitors

Biti's faces competition from two aspects: price and design The price from Biti’s has never been so expensive that an average person cannot afford However, compared to sneakers that are imported from China, the price from Biti's is still much higher With the huge natural and human resources, it is easier for Chinese manufacturing companies to lower the the price and take it as an advantage against Vietnamese products

In this field of competition, international brands show a great variables in design against merely some basic designs from Biti’s In each design, they target to a particular group of number and have their own signature images For example, Nike offers a wide range of collections such as Nike Air Yeezy and Supreme x Nike NBA Collection

2.3 Macro-environment

2.3.1 Government policy

Vietnam is actively improving the structure of its footwear products, with high value products now reaching around 10%, which is twice as high as just a few years ago The goal of the industry is to export footwear to $ 20 billion by 2016, which is four times the value of 2016, with the number of products rose just by 1.8 times and join the global supply chain The government is trying to improve the policies and conditions so that Vietnamese companies can increase the localization rate of products from 40% - 45% now to 60% to meet the conditions

of rules of origin and help reduce logistics costs This hopefully will improve the position of Vietnam’s outsourcing in the global supply chain

2.3.2 Technology

Biti’s high quality has always been highly rated, thanks to its innovative technology In recent years,

Biti's has developed a special bonding technology that creates durability for the product, avoiding the

presence of acacia that is commonly seen over time, especially in Vietnam.

3 SWOT Analysis

- A long – lasting brand with a meaningful

slogan: “Biti’s takes care of Vietnamese feet”.

- Reputation for durability

- Strong workforce and manufacturing

technology

+ Skillful and hard workers

+ Application of Taiwan technology - Wide

retailing network

+ Network stores in 40 countries

+ 7 franchise centers and more than 2300 local

stores

- Competitive price

+ Lower price than foreign brands

+ Good price for young people – target customers

WEAKNESS

- Poor product design

+ No eye-catching color + Design without trending and convenience

- Lack of customer services

+ Uncompleted consulting chanels + Bad online selling websites + Limited selling channels – No corporation with online websites

- Underdevelopment of marketing strategies

+ Lack of digital marketing + Unclear marketing strategy on target users.

- Base of customer’s attitude: “Vietnamese

people prioritize using made-in-Vietnam

goods”.

+ Recommendation from the government to

consumers to use more domestic products

+ Trust in the brand from Vietnamese consumers.

- Development in the mid-range market

segment.

- Expands to markets

+ Base of market-opening policies

+ Motivation from the government and other

countries

- Competition:

+ Low-priced sneakers imported from China. + Domestic brands such as Thuong Dinh + International brands such as Adidas, Nike and Converse

- Change in customer taste

+ Rapid change forward trend from the world

- Economic risk + Economic downturns: decrease in demand.

From the SWOT analysis mentioned above, it can be seen that the main problem that Biti’s has to face is the market share loss due to the inefficiency in product design and promotion.

Although Biti’s has many benefits about brand, customer loyalty, market share, product

quality and reasonable price, it has taken no advantage of these

4 Objectives

The objective of Biti's marketing campaign focuses on solving 3 main questions: What?, How? and When?

- What?

The image of the products which is both sneakers’ design and the way it is promoted

+ Viral music video: Biti’s sneakers are featured in Son Tung MTP’s and Soobin Hoang Son’s music videos The music video “Lac Troi” of Son Tung MTP is the first step to raise consumers’ awareness about new collection Later, the series of music videos “Di De Tro Ve” (Leave to Come Back) of Soobin Hoang Son is the main action to deliver the message

+ Collaboration with online shopping sites: Together with sites like lazada.com or

adayroi, Biti’s built attractive promotion campaign with discount codes and gifts

The collection Biti’s Hunter was launched in late 2016; however the campaign just really boomed after the release of these music videos They were released right during Vietnamese Tet’s period, which is the time people would come back home Aiming at customers’ behaviors, that is the most suitable time for the message of Biti’s to work: Leave to come back.

5 Marketing strategies

Product - Biti’s Hunter line

· Change in product weight (225 gram)

· Eye-catching design with diversifying color patterns

· Deversification in types of products (Biti’s Hunter, Biti’s Hunter

X, Hunter Originals, Hunter Liteknit, Biti’s Hunter Feast, Biti’s Hunter Camo)

Promotion - Advertising on social media such as Facebook, Zalo, Instagram

- Application of AIDA (awareness, Interest, Design and Action) strategy

- Organization of contests such as Go and Love and Go and cutural Experience with Kenh14

Place - Offline market: commercial centers, 4000 stores in Vietnam and

foreign countries

- Online market: official Biti’s website, shopping websites and apps such as Lazada, Shopee, Tiki

- Suitable price for young consumers

- Lower price than other brands

5.1 Products

With its strength, the spirit of a Vietnamese brand, Biti's had a tremendous transformation Biti's is back with a powerful and impressive line of versatile sports shoes called Biti's Hunter The newly adapted technology helps to create more breathable holes, keeps the user's feet cool, more comfortable

to wear, and cleans quick and easy sneakers Biti's Hunter X also features a TPU

chassis designed around the shoe and heel, which helps to support the legs, increasing stability

in movement With so many improvements in technology, Biti's Hunter X, despite its launch, has enjoyed the youngster's love for sneakers Biti's new "National Shoes" comes in three colors: gray, red and blue The variety of products helps consumers can choose easily suitable and create stranger feelings for users

Up to now, Biti’s Hunter include six main collections: Biti’s Hunter, Biti’s Hunter X, Hunter Originals, Hunter Liteknit, Biti’s Hunter Feast, Biti’s Hunter Camo Each collection is divided into many sub-collections

From top left: Thuong Dinh sneakers, Biti's sneakers - old version, Biti's Hunter sneakers

Compared to its existing products from both Biti’s and other domestic brands such as Thuong Dinh, Biti's Hunter has really turned out to be a breakthrough in design Biti's Hunter weighs just 225 grams and is one of the lightest Vietnamese sneakers to date Not only did Biti's Hunter achieve that weight, but it also retained its premium quality and eye catching design Without exaggeration, Biti’s Hunters has become the peer in Vietnamese domestic footwear industry.

5.2 Promotion

We will focus on special PR strategies that Biti’s Hunter have carried out Biti's has adopted the AIDA communication formula for its strategy very well and can be said to be quite attractive Also, Biti’s promotes advertising on social media such as Facebook, Instagram and newspapers Moreover, they organize contests “Go and Love” and “Go and cutural Expericence” – photo contests with the meaning of motivating young people to go and travel the beautiful sights with the companionship of Biti’s

5.3 Price

Price is another marketing strategy that Biti’s is trying to adapt Despite having high quality material, eye catching design, and other outstanding features, Biti's Hunter has a relatively reasonable price, ranging from 420,000 to 900,000 Vietnam dong depending on the style and color Compared to many products from other brands like Adidas or Nike, which is hardly lower than 50 US dollars, this is a good value for money

As it is illustrated above, with the similar design for running sneakers, Biti’s offers the range

of price which is just a half as high as that from Adidas This has created an advantage against high-end products It is much affordable for the young consumers which the target customer group of Biti’s

5.4 Place

5.4.1 Offline market

There are two commercial centers in Biti's Lao Cai Trade Center; Biti's North Trade Center; Biti's Central Highlands Business Center, Biti's Da Nang Business Center, 2 Business Centers,

2 branches and more than 4,000 agents across the country Biti's products are available in more than 40 countries and regions around the world, including the most famous and fastidious markets such as USA, Australia and China

5.4.2 Online market

Biti’s has many methods distribute products to customers in the best way as direct distribution in stores and through the intermediary agent of book online and pay at home In addition, Biti’s Hunter also link

to shopping websites to sell products such as Lazada, Tiki and Shopee When

consumers surf shopping websites, they can find Hunter products, price and information, then they can order online and these products will be transferred at home

With a distribution network consisting of hundreds of stores stretching from north to south, stable source of Biti’s always fully meets the needs of customers

6 Action program

Hunter X Promotion Online - Cooperation with Uber to make - Using music video “Lac

market UberMOVE plan Troi” by Son Tung MTP to

- Following trend of Giveaway in create the awareness for

Instagram customers and take advantage

- Using KOLs (Key Opinion of his fame in order to spread Leaders) to increase the reaction of more rapidly, also, “Di De Tro customers on social media Ve” by Soobin Hoang Son fo

- Using music video “Lac Troi” by on Tet holiday with the Son Tung MTP to create the meaning of homecoming awareness for customers and take - Organizing contests “Go and advantage of his fame in order to Love” and “ Go and spread more rapidly, also, “Di De Experience culture”

Tro Ve” by Soobin Hoang Son fo

on Tet holiday with the meaning of homecoming

Offline Experience virtual reality Hunter & Product testing eventsat

market University tour official showrooms

Price - Offers discount codes on particular promotions