(TIỂU LUẬN) CREATING a MARKETING PLAN FOR HNK’S NEW PRODUCT – CHELSEA BOOT IN THE PERIOD 122021 – 122022

Opportunities • A young and potential enterprise that promises to bring freshness to the Vietnamese shoe market in general and Vietnamese fashion in particular with the development of d

Ho Chi Minh city, 2021

Instructors: Master Đặng Hu nh Phươngỳ

Student Implementation:

TEACHER’S COMMENTS Student Implementation:

(This part is for teachers to directly guide and comment on students)

(Score in numbers) (Teacher signature)

MAJORS MARKETING

1

EXECUTIVE SUMMARY 3

CHAPTER 1: HNK COMPANY OVER VIEW 4

1.1 INTRODUCTION 4

1.1.1 Vision 4

1.1.2 Core values 4

1.1.3 Mission 4

1.1.4 Business philosophy 4

1.2 STRATEGIC OBJECTIVES 5

1.2.1 Marketing Objectives 5

1.2.2 Brand Objectives 5

1.2.3 Financial Objectives 5

CHAPTER 2: SWOT & MACRO – ENVIROMENT ANALYSIS 6

2.1 SWOT OF COMPANY 6

2.2 THE SITUATION OF LEATHER SHOES MARKET IN VIETNAM 7

2.2.1 Size and growth rate of Vietnam's leather shoes market 7

2.2.2 Trends of Vietnam's leather shoes market 7

2.2.3 C ompetition in the Vietnamese leather shoes arket 8 m 2.3 SWOT OF PRODUCT 8

2.4 COMPETITORS 10

2.4.1 Direct competitors 10

2.4.2 Indirect competitors 10

CHAPTER 3: STP STRATERGY 11

3.1 SEGMENTATION 11

3.2 TARGETING 12

3.3 POSITIONING 12

CHAPTER 4: MARKETING MIX STRATEGIES 14

4.1 PRODUCT STRATERGY 14

4.1.1 Product mix 14

4.1.2 Product Value 15

4.1.3 Packaging 15

4.1.4 Style and Design 15

4.1.5 Product support service 16

4.2 PRICE STRATEGY 16

4.2.1 Valuation target 16

4.2.2 Pricing strategy 17

4.3 DISTRIBUTION STRATEGY 18

4.3.1 Distribution chanel 18

4.3.2 Distribution channel management 19

4.4 MARKETING COMMUNICATION STRATEGY 19

4.4.1 Advertising: Online advertising only 19

4.4.2 Public relation (PR) 20

4.4.3 Promotion 20

CHAPTER 5: ACTION PLAN .21

CHAPTER 6: FINANCE 22

2

CONCLUSION 24

3

EXECUTIVE SUMMARY

HNK is a start-up company from 2021 specializing in the production of style leather shoes with the leading product of chelsea booths and its variations Our brand name is HNK which is inspired by our shareholders in order to partly appreciate the enthusiastic contribution from the company's shareholders (K: Khang, King – H: Huy N: – Nam, Nghia) Today, there are really few communities for Vietnamese men to express their individuality With the current trend of globalization, when cultures are imported from abroad, "beauty" is no longer only for women, men also have needs in this regard Understanding that, HNK was established to bring classic European-style thick leather shoes, creating a playground for Vietnamese men who are passionate about classic style Therefore, the topic “Creating a marketing plan for HNK's new product, Chelsea boot for the period 12/21 12/2022" will be discussed The structure of the thesis consists of 6 main - chapters:

European-Chapter 1: HNK Company Overview

Chapter 2: SWOT & Macro Analysis - Environment Analysis

Chapter 3: STP Strategy

Chapter 4: Marketing mix - Strategies

Chapter 5: Action plan

Chapter 6: Financial

1.1.1 Vision

Towards the goal of sustainable development and becomes a leading shoe manufacturing and distribution company in the Vietnamese market Enhancing the influence of the brand with the number 1 goal in Vietnam Not only developing strongly in the country but also promoting international integration, stepping into potential markets in Asia

• Customers are all our friends: We do not consider customers as gods, but here they

are close friends We understand them, ready to share all thoughts and feelings with each other And as a friend, we will strive to bring out the best for our friend

• Innovate and creative: Always ready to accept and lead change, seek to learn and

not be afraid of failure, always improve, be creative in everything and create breakthroughs for the benefit of customers

1.1.4 Business philosophy

Let us make you happy Get “Quality, Prestige, Service” to bring the feeling of being worth the money spent by customers We put the quality of each product first, machining and finishing to near perfection to provide the best user experience Reputation is one of the deciding factors for the brand and service that will help customers to solve any problems

In addition, there are three factors that form the foundation of the corporate culture

“Đổi - Nhiệt - Đoàn”

• “Đổi” means always innovating not only the product but also the working style, must change to adapt to the changing environment

• “Nhiệt” means Enthusiasm, blood is always hot, burning wholeheartedly with everything, enhancing the youthful spirit of the whole company

5

• “Đoàn” means unite There is an old saying in Vietnam that "one tree can't be young, three trees together make a high mountain" The solidarity of all members of the company is the decisive factor for its success

1.2 STRATEGIC OBJECTIVES

1.2.1 Marketing Objectives

With the current capital and expertise, HNK will increase the number of target customers knowing about the product with the number of people accessing the media channels looking for information about the product reaching 20000 visits in 3 months to enhance brand value in the mind of consumers

• Reaching a total revenue of about 50000 USD ~ 1.1 billion VND in the first 1 year

• Maintain growth of at least 10% a year

• Maintaining marketing and promotion costs about 10 15% of the total cost of the business

-• Increasing product purchases boosts sales and helps businesses thrive

• HNK is always aiming for men with fashionable and creative dressing style, this is also a new market of the Vietnamese shoe market Giving our customers creative ways to dress and bring more style to them, is something that few Vietnamese shoe brands can do today

Weaknesses

• The research team does not have much experience in product demand, so the design changes are slow compared to the needs, especially the young customers who always want to change their appearance, prefer shoes style, rich colors, youthful

• As a new enterprise in the market, it has not been able to gain the trust of many customers in the domestic market

• Lack of funding is what HNK enterprises are currently facing, as a business with little experience in the market

Opportunities

• A young and potential enterprise that promises to bring freshness to the Vietnamese shoe market in general and Vietnamese fashion in particular with the development

of design and reasonable prices

• In recent times, consumers are gradually tending to "Vietnamese people use Vietnamese goods" because Vietnamese products have had many changes, confirming that the quality is not inferior to products from abroad

• Many Vietnamese companies process and export the leather industry, but few brands focus on the domestic market

Threats

• In addition, in the domestic footwear and footwear market, the main competitors for HNK's shoes are the following companies: The Wolf, Rowan, JOG4 they have the advantage of having a wide variety of designs and appearing on the market sooner

7

• The theft of copyrights, designs and industrial designs that are common in our country also causes many difficulties in the company's production

• Fashion trends are volatile and constantly changing Since HNK is an enterprise with

a young and inexperienced design team, this is a big challenge for HNK

2.2 THE SITUATION OF LEATHER SHOES MARKET IN VIETNAM 2.2.1 Size and growth rate of Vietnam's leather shoes market

According to statistics from the General Department of Customs (2020), Vietnam's footwear export turnover in the 2016-2020 period will grow at an average rate of 7% per year Footwear export turnover increased continuously in the period 2016 2019 In 2020, - due to the influence of the Covid 19 epidemic, the export of footwear of all kinds reached -USD 16.8 billion, down 8% compared to 2019, but up 29.2% compared to 2016 In the first half of 2021, Vietnam's footwear export turnover reached 10.4 billion USD, up 27.7% over the same period in 2020

Footwear is one of the industries with high export turnover of Vietnam, but export turnover is mainly from foreign direct investment (FDI) enterprises The competitiveness

of domestic enterprises is still lower than that of FDI enterprises in the export segment Vietnam's footwear enterprises are still mainly processing and producing shoes for foreign enterprises Therefore, this is an opportunity for domestic enterprises to develop their own footwear brands

2.2.2 Trends of Vietnam's leather shoes market

In a research result of the Journal of Industry and Trade, it was said that: "The open door policy and deeper integration into the regional and world economy have been bringing positive impacts to the footwear manufacturing and exporting industry Thanks to participating in many free trade agreements, the market is increasingly expanding, Vietnam's footwear export industry is going through a fairly good growth period With export turnover to each market area increasing steadily every year Currently, Vietnam has exported footwear products to more than 100 countries For that reason, Vietnam has been missing a huge aspect that is supplying products to its domestic market It can also be said

to be an opportunity for businesses in leather shoes to start investing in the domestic market

In an interview with 10 men between the ages of 18 and 35 (3 people 18 years old,

3 people 20, 2 people 25, 1 person 30 and 1 person 35), the results are surprising when there are 2 young people 18 years old, 2 people 20 and the other 4 people all tend to have minimal fashion, using fashion colors mainly black and white combined with some simple colors such as gray or brown Today, with the trend of globalization, when appearance is enhanced Today's beauty is not only a word to describe a woman, but a man also has a need for his own beauty Fashion is also known as a cycle, the old trends of the last decade have reappeared in the 21st century

8

2.2.3 C ompetition in the Vietnamese leather shoes market

Vietnam is the second largest footwear exporter in the world (after China), but at home, Vietnamese shoe businesses face many difficulties in the long run Specifically, in

2019, Vietnam exported all kinds of footwear with a turnover of 18 billion USD, but the domestic market had to import over 100 million pairs of footwear, worth up to 1 billion USD, accounting for 60% of the demand Imported footwear group, in addition to the popular segment, also has a series of world famous brands such as Adidas, Nike, Puma, Vans, Converse And middle-class consumers in Vietnam do not hesitate to spend money for foreign shoes but ignore Vietnamese goods which are not outstanding In addition, the reduction of import tax to 0% for goods circulated within ASEAN and between ASEAN and China has paved the way for these countries to boost footwear exports to Vietnam In addition, the appearance of giants such as Adidas and Nike is also increasing competitive pressure on Vietnamese products in the domestic market

Back to the time before 2017, the products of famous Vietnamese enterprises such

as Vina Shoes, Thuong Dinh, Hong Thanh, Biti's are still just old-fashioned sandals, leather shoes, sponge sandals, canvas shoes, usually only meet for middle-aged customers, office workers, students Meanwhile, entrepreneurs and young people in the entertainment industry in Vietnam have rapidly changed the way they access to fashion footwear So gradually, young, dynamic sneakers, associated with world famous sports stars are gradually becoming popular The domestic market has become a place for two groups of high-end imported brand shoes and cheap goods Grasping the new consumer trend and taking advantage of the familiar Vietnamese brand, Vietnamese shoe businesses have begun

to change direction and focus on investing in the production of new product lines to please domestic customers Pioneering the most famous brand is Biti's, with the introduction of the new product line Biti's Hunter, along with the image promotion strategy with singers Son Tung M TP, Soobin Hoang Son, create a breakthrough in the look of high-end Vietnamese shoes

To affirm their position in the domestic market, Vietnamese shoe businesses have oriented "where the customer is, we are there" On the market today, Vietnamese shoe products are available in all segments from affordable to high-end, not only with suitable designs but also with quality and price that also meet customer needs

Strength

S1: The company provides products with classic, elegant and luxurious styles that help men shape their own style From there, creating a play about the classic, luxurious and elegant style of men in Vietnam

9

S2: Although it is a newly developed business, HNK always tries to bring diversified leather footwear products in order to meet the unique needs of each customer group, which

is also the core value that HNK is aiming for

S3: HNK brings products with quality commensurate with the price, which will not lose the brand value as well as protect the interests of "friends", this is also the second core value of HNK

Weaknesses

W1: The customer group that HNK targets are only Vietnamese men who want to pursue a classic style This is only a small niche in the fashion market in general and the footwear market in particular, so the number of consumers of HNK is not very diverse

W2: As a new enterprise in the market, HNK's products can be said to be not completely excellent products, so the occurrence of product defects is something that HNK may encounter

W3: Professional knowledge, as well as creativity in product design, are all included

in my own experience, because there is no professional design team Therefore, HNK's products will face many risks in the first months

Opportunities

O1: Industry 4.0 helps to produce high-quality leather shoes but significantly reduces input costs Leather shoes are considered to become the most noticeable trend in

2021 because of their elegance, elegance, versatility and never out of fashion

O2: Minimalist fashion style is increasingly popular So leather shoes are the first choice in coordinating clothes Therefore, the demand for leather shoes is increasing day by day

T4: The design is simple and has little variation, so almost a customer will only buy one pair to two pairs of leather shoes to use

T5: The hot and humid climate in Vietnam is one of the conditions that make leather shoes easily damaged and difficult to maintain

S3 + T3,4: Focusing on investing in production, constantly updating trends to create breakthrough products for consumers

2.4.2 Indirect competitors

In addition to domestic brands specializing in Chelsea shoe products, HNK also faces the clothing market in general and the footwear market in particular In the footwear market in Vietnam, in addition to imported fake products, it is impossible not to mention the big men in the footwear industry from abroad, which can be named as: Dr Martens; H&M; Zara; Vindi …All of them have a long-standing name, and have great purchasing power in the international market and the Vietnamese market

11

CHAPTER 3: STP STRATERGY 3.1 SEGMENTATION

HNK divides the Vietnam market into 3 segments: 18-25 years old, 25 35 years old and 35-40 years old Each segment has its own characteristics

Geographic concentrated in big cities, Region: VietNam,

especially universities,

Region: VietNam, concentrated in big cities, high-rise buildings, concentrated in a large number of offices, apartments,

Region: VietNam, concentrated in big cities, high-rise buildings, concentrated in a large number of apartments, parks, training areas,

Income: Medium low to medium high or high Income: Above average

Lifestyle: Working hard, taking care of family, trying hard at work

Lifestyle: Slow down, tend

to take care of health, beauty

Personality: Cheerful, ambitious and inquisitive

Personality: Careful, calm,

peaceful Personality: Quiet, stable

Motivation: high need for self-expression, dynamic

Motivation: Express yourself, serve daily needs

Motivation: Serving personal needs, hobbies

Behavioristic Reason for purchase: Buy

to use, buy to give away

Reason for purchase: Buy to use, buy to give away

Reason for purchase: Buy

to use, buy to give away