This report is about a famous company in Vietnam called Bitis. It looks at how they sell their products, who they sell them to, and what they plan to do in the future. The report also looks at the things Bitis is good at, the things they need to improve on, the opportunities they have, and the things that could be a problem for them. This helps us understand the market better. The report also talks about how Bitis chooses what products to sell, how much they charge for them, how they get them to the stores, and how they get people to buy them. This makes Bitis different from other companies in the same industry. The end of the report talks about what the report found, what it couldnt find, and what Bitis can do to sell more products and be more successful.
INTRODUCTION
Overview of the Company
At Biti's, our overarching vision is to emerge as a dominant force in Asia's consumables manufacturing landscape We are resolute in our pursuit of global expansion, while concurrently maintaining our market leadership in Vietnam and actively seeking out international opportunities to propel our growth.
At Binh Tien Imex Corp., Pte., Ltd., we are dedicated to delivering superior quality products that cater to the evolving needs of consumers Our commitment to continuous improvement enables us to refine and enhance our offerings, meeting the increasingly diverse demands of our customers By prioritizing quality and customer satisfaction, we strive to build long-term trust with our valued clients and establish a reputation for excellence in the industry.
Van Thanh Group was founded in 1982 as a small family-owned footwear production business by Mr Vu Khai Thanh and his wife, leveraging their extensive industry experience Initially comprising 20 workers, the group began manufacturing and exporting footwear products, primarily targeting Eastern European countries and the USSR through a goods exchange program.
In 1986, a pivotal milestone was achieved when Mr Vu Khai Thanh and his wife took the reins of Binh Tien Group, successfully merging it with their existing business to form Binh Tien Rubber Cooperative This strategic consolidation marked a significant shift in the company's focus, enabling the production of a diverse range of high-quality footwear products that catered to both the domestic market and fueled exports to Eastern and Western Europe.
In 1990, the relentless pursuit of excellence drove the company to Taiwan, where they successfully acquired EVA technology, significantly elevating the quality of their products This strategic investment enabled the procurement of cutting-edge machinery, specifically designed for manufacturing high-quality EVA foam rubber footwear that boasts unparalleled excellence.
In 1992, amidst a period of national renovation, the company underwent a significant transformation, officially changing its name to Binh Tien Impex Corp, Pte., Ltd., and adopting the renowned brand name Biti's This pivotal moment marked a crucial milestone in the company's evolution, propelling its growth and solidifying its position as a leading player in the footwear industry.
Introduction to Products and Achievements
1.3.1 Product walking, or casual wear, with a diverse selection of colors, styles, and sizes to choose from In the Êmbrace series, comfort takes center stage, as these sneakers are crafted from soft, breathable materials designed to snugly embrace your feet, offering both coziness and an elegant, minimalist appearance Meanwhile, the Gosto series showcases sandals and slippers that exude style and quality, crafted with high-grade materials and craftsmanship These designs vary in heel heights and shapes, providing a stylish and trendy option for those seeking fashion-forward footwear Biti's commitment to diversity and quality is evident across these series, catering to a wide range of tastes and needs (Biti’s Footwear, 2015)
Biti's has garnered numerous prestigious awards and honors, underscoring its commitment to excellence and quality The company was listed among the Top 40 Best Listed Vietnamese Companies in 2016 and 2017, reflecting its financial strength and market presence Furthermore, Biti's has been consistently recognized as one of the Top 10 reputable Vietnamese brands, earning the Golden Award from the Vietnam Union of Science and Technology for three consecutive years from 2005 to 2007, and has also received the Vietnam Value Award in 2008 and 2010.
The company has garnered numerous prestigious awards, including the Trade Promotion Department's awards in 2012 and 2014, 3K Certificates from the Association of Intellectual Property Rights, an ISO 9001:2000 Certificate, and the esteemed 2nd class Labour Order, underscoring its commitment to delivering high-quality products These accolades are a testament to the company's remarkable achievements, which extend to its prominent figures, such as Mr Vuu Khai Thanh, who has been recognized as one of the Top Vietnamese businessmen and received a Merit Certificate from the HCMC Association of Literature & Arts.
[Company Name]'s outstanding contributions and commitment to excellence(Biti’s
Target customer and target market
Biti's Hunter primarily targets young and dynamic individuals, encompassing both males and females, who lead active lifestyles characterized by frequent travel, exploration of new destinations, and participation in high-energy activities such as adventure experiences and sports.
Here is a profile of the target customers that Biti's Hunter is focused on:
Biti's Hunter's target customer base is a diverse group, primarily consisting of males and females aged 13-24, residing in major cities like Ho Chi Minh City and Hanoi, with income levels ranging from 7.5 million to 150 million VND This demographic is comprised of young singles with varying educational backgrounds, from elementary school to university Characterized by a passion for travel, outdoor activities, and sports, they lead active lifestyles that involve exploring challenges and experiencing life to the fullest Understanding this demographic is crucial for Biti's Hunter to develop a targeted marketing strategy and offer products that cater to their unique preferences and needs.
Biti's Hunter target customers exhibit distinct shopping behavior, preferring online purchases or in-store experiences, with a frequency of 2-3 times a year, often coinciding with special occasions like Tet, festivals, and back-to-school periods Their purchasing psychology can be categorized into two main groups: one prioritizing comfort and enjoyment, and the other embodying courage, activity, and independence By understanding these characteristics, Biti's Hunter can develop effective advertising strategies to attract and engage with this target customer group.
Biti's has transformed its brand image by introducing the "Biti's Hunter" line, which combines durability and style, catering to the dynamic youth who prioritize high-quality, affordable, and fashionable footwear Our target market is characterized by a strong passion for travel and exploration, valuing design, color, and style that reflects their personality and lifestyle Biti's Hunter offers a wide range of products across various price points, from 200,000 VND to over 1 million VND, targeting consumers of all income levels and age groups With affordability being a key factor in decision-making, Biti's aims to provide elegant, sophisticated, and convenient products that meet the needs of Vietnamese consumers, who allocate a significant portion of their budget to affordable yet quality footwear.
SWOT ANALYSIS
Introduction to SWOT Strategy
A SWOT analysis is a strategic framework that evaluates a company's competitive position by assessing internal and external factors, as well as current and future potential This framework facilitates a realistic and fact-based look at an organization's strengths and weaknesses, enabling data-driven strategic planning By examining both internal and external elements, a SWOT analysis provides a comprehensive understanding of a company's initiatives and industry position, ultimately informing business decisions.
SWOT Strategy of Biti's
Established in 1982, Biti's has solidified its position as a long-standing Vietnamese brand, dominating the domestic market with classic sandal models As the largest and pioneering company in the footwear production field in Vietnam, Biti's has grown and developed over 35 years, embracing sustainable development with six core values With over three decades of production and business activities, Biti's has evolved into a reputable and trustworthy brand, earning the pride of Vietnamese people as a "National Brand" in the field of prestigious and quality footwear.
Biti's is renowned for its high-quality and durable products, boasting a shelf life of 3 to 5 years, catering to the diverse needs of young people and various classes The company's one-price policy ensures that consumers nationwide, including those in remote areas, have access to its products without compromising on quality Biti's Hunter brand offers five product lines for both men and women, priced between 599,000 - 899,000 VND, making it an affordable alternative to foreign sports shoe brands like Nike and Adidas The company's commitment to quality is underscored by its ISO 9001: 2000 certification and registration of goods quality standards at the Ho Chi Minh City Quality Measurement Standards Department With a strong distribution network spanning 156 cities in Vietnam and export markets in over 40 countries, Biti's has established itself as a trusted brand, earning recognition as one of Vietnam's 200 strongest enterprises in 2006.
Biti's product designs lack innovation and uniqueness, failing to capture the essence of modern trends The company's slow response to customer needs hinders its ability to stay competitive in the market Furthermore, Biti's products are characterized by simplicity, with a limited color palette that lacks the vibrancy and youthfulness that appeals to younger generations.
Biti's boasts an extensive product lineup encompassing footwear and accessories, but its long-term sustainability is heavily reliant on shoe sales A decline in the footwear segment would have a ripple effect, potentially impacting the entire organization.
To diversify its product offerings while maintaining quality, Biti's requires a substantial amount of raw materials and fuel, but domestic supply is limited, prompting the company to import up to 60% of its input materials from abroad, with only 40% sourced domestically This heavy reliance on imports is a notable weakness in Biti's SWOT analysis, mirroring the broader challenges faced by Vietnam's leather shoe industry, which struggles to secure domestic input materials, leaving product prices vulnerable to fluctuations in the global raw material market.
Biti's leverages its reputation as a long-standing Vietnamese brand, offering high-quality products that resonate with national pride, particularly among young people who strongly support domestic goods The brand's revamped image, now younger and trendier, has generated excitement and appreciation, marking a significant milestone for Vietnamese brands Additionally, with the growing trend of consumers opting for local products, Biti's is well-positioned to capitalize on this shift.
"Vietnamese people use Vietnamese goods" because Vietnamese products have had many changes, affirming the quality is not inferior to foreign products (Brands
Vietnam's economy is experiencing significant growth, with a GDP growth rate of approximately 6-7% per year, presenting a substantial opportunity for Biti's As young people in Vietnam allocate 25-30% of their income towards footwear and clothing, the country's growing economy and high standard of living contribute to increased consumer spending on fashion products, including Biti's footwear Notably, Vietnam's GDP has demonstrated a steady increase, with a 3.72% growth in the first six months of 2023, and is expected to reach 5.8% by the end of the year, outpacing many Southeast Asian countries.
Development Bank, 2023) , Biti's can take advantage of economic growth to develop new products and attract customers
With its extensive experience in footwear manufacturing and reputable brand, Biti's is well-positioned to expand into new markets, including international ones Having already established a presence in over 40 countries worldwide, including fastidious markets such as Russia, Ukraine, the UAE, and Bahrain, the brand has built a strong foundation for further global growth The 21st century has also seen high economic growth in countries like China, India, Brazil, and South Africa, presenting opportunities for Biti's to tap into these emerging markets, where consumers have high disposable incomes and a growing interest in foreign brands.
Expanding into new markets is expected to drive Biti's future growth and success Developing economies in various markets offer significant potential opportunities for the company's business expansion, paving the way for further development and increased market share.
Biti's has the opportunity to collaborate with other business partners, fostering new business opportunities through strategic alliances A notable example is the partnership between Biti's and ABBANK, which focuses on community building and business development, driving growth and innovation in the industry.
By forming strategic partnerships with business partners, Biti's is able to tap into a broader business ecosystem, acquiring new expertise and skills that enable the company to reach new customers, expand its distribution network, and deliver added value to its customers.
The modern technological era has created an ideal environment for Biti's to implement effective advertising campaigns, leveraging social networking sites and their official website to reach and support users in personalizing products By harnessing technology to interact with customers, businesses can build a positive public image, as seen in Biti's SWOT analysis (Brade Mar, 2022).
Figure 4 ( ABBANK và BITI’S hợp lực , 2023)
Vietnamese domestic products, including Biti's, often struggle with limited and outdated designs, which poses a significant challenge in the market As the living standards of Vietnamese people improve, there is a growing demand for high-quality products, prompting Biti's to update its designs to keep up with the latest trends However, the company operates in a highly competitive industry, with foreign brands like Adidas, Puma, and Nike dominating the market, and local competitors such as Bita's, Ligamex, and Vina shoes offering affordable and trendy products that cater to the needs of young consumers.
One of the significant challenges Biti's faces is the high cost of importing materials from abroad, which accounts for approximately 70% of its production materials, as domestic suppliers have yet to meet the company's stringent requirements Furthermore, the volatile and competitive apparel and footwear market poses another threat, with counterfeit Biti's products flooding the market and being sold at a fraction of the company's price, roughly 1/5 of the original cost This not only affects sales but also undermines the company's brand image and credibility, making it essential for Biti's to maintain its market presence amidst fierce competition.
Unethical business practices can have far-reaching consequences, damaging a brand's reputation globally, as seen in Biti's case As a result, potential customers may be driven to switch to alternative brands, ultimately impacting the company's bottom line To mitigate this risk, it is crucial for Biti's to prioritize social responsibility and maintain a positive brand image, thereby fostering customer loyalty and trust.
4Ps MARKETING STRATEGY
Introduction to 4Ps Marketing Strategy
Philip Kotler defines the Marketing Mix as a set of controllable variables that a firm can leverage to influence buyer response, comprising the 4 'P's: product, price, place, and promotion A well-crafted composition of these elements aims to maximize consumer satisfaction while achieving organizational objectives The Marketing Mix is tailored to meet the needs of target customers, varying across organizations based on available resources and marketing goals.
3.2 4Ps Marketing Strategy of Biti's
A product is defined as an item offered to the market to attract attention, facilitate purchase, use, or consumption, ultimately satisfying a need or desire Biti's caters to diverse customer segments, including children, teenagers, and adults, by offering a wide range of products such as sports shoes, sandals, flip-flops, high heels, flats, and loafers, including notable lines like Biti's Hunter, Biti's Joy, Biti's Kids, and Biti's Basic.
Figure 7: (Brands Vietnam, 2022)Indeed, after conducting a survey of 100 consumers evaluating Biti's products,the results are summarized in the following table:
Biti's product portfolio is diverse, catering to various customer needs with a range of footwear options Notably, sneakers and flip-flops are the most popular choices among consumers, accounting for 72.1% and 44.2% of usage, respectively Additionally, high heels, sandals, and slippers also enjoy significant recognition, further solidifying Biti's position as a versatile footwear brand.
According to the survey results, product quality is the primary factor influencing Biti's customers' purchasing decisions, with a significant 78.4% considering it the top priority This suggests that consumers place a high value on product quality when making buying decisions, making it the key deciding factor in their shopping choices.
The fact that most consumers rate the quality of Biti's products as good through the survey shows:
Biti's shoes use high-quality materials, durable, beautiful, waterproof, scratch-
Biti's shoes are engineered with safety and comfort in mind, incorporating EVA cushioning technology from Taiwan and advanced sewing techniques such as seamless stitching, thermal bonding, and 3D printing This cutting-edge technology not only creates strong and beautiful seams but also enhances grip and elasticity, ensuring a snug and flexible fit With a focus on simplicity and sophistication, Biti's shoes boast harmonious colors and exquisite patterns that reflect Vietnamese cultural heritage, making them versatile and suitable for various styles and occasions Moreover, Biti's shoes adhere to international and national quality standards, undergoing rigorous inspections before leaving the factory to guarantee error-free and high-quality products, backed by a warranty and return policy in case of manufacturer defects.
These advantages have helped Biti's shoes gain customer trust and preference. Biti's shoes are not only durable products but also symbols of pride and affirmation of the Vietnamese brand
Over four decades of operation, Biti's has evolved alongside Vietnam, transforming into a trusted and recognizable brand synonymous with quality footwear, embodying the nation's pride as a 'National Brand' By prioritizing long-term customer trust, Biti's has established a strong presence in the market, not through loud advertising or costly marketing, but rather through its extensive distribution network and diverse customer-centric approach, resulting in a widespread visibility of its stores, distinguished by their prominent name, logo, and slogan.
Biti's has taken significant steps towards enhancing product packaging quality and environmental protection by adopting eco-friendly practices, including the use of recycled or monochrome paper boxes, and implementing transparent packaging solutions to minimize waste in its production and business operations.
Biti's Hunter, launched in early 2016, marked a significant transformation in the sports shoe market with its impressive features Weighing only 225g, it is one of the lightest Vietnamese sports shoes available, boasting standard quality and eye-catching designs The brand has created a frenzy among young people with its products, praised for their beautiful designs, trendy styles, lightweight and soft soles, and durable, breathable fabric To cater to the aspirations of young customers, Biti's Hunter continually releases unique and personalized shoes, such as the high-quality Biti's Hunter X, Biti's Hunter Street, and the latest Biti's Hunter x VietMax, inspired by Hanoi Through creative and impactful communication campaigns, the brand effectively showcases its products to consumers, further solidifying its position in the market.
Price is a crucial factor in a customer's purchasing decision, representing the exchange value that customers are willing to pay for the benefits of a product or service, ultimately driving revenue and profit for businesses A survey of 115 people revealed that price significantly influences Biti's customers' buying decisions, with a staggering 63.5% citing it as a key factor, indicating that these customers carefully consider price before making a purchase, making it an attractive consideration for the business.
Biti's product prices stand out as a highly flexible marketing factor, capable of changing rapidly unlike other elements such as distribution locations or promotional activities The company's diverse range of footwear models, varying in material and style, are priced differently, with costs ranging from 495,000 to 1,700,000 VND, offering customers a wide array of options to suit their preferences and budgets.
Pricing is a crucial component of a brand's identity, playing a significant role in shaping its market position For Biti, price has a direct impact on consumer behavior, serving as a competitive advantage in the market As the most visible characteristic of a product, price represents perceived quality, and Vietnamese consumers tend to prioritize affordability and quality when making purchasing decisions By offering durable, smooth, comfortable, and stylish shoes at a mid-range price of 495,000 - 1,700,000 VND, Biti has successfully tapped into consumer psychology, making it a top choice for many This pricing strategy not only undercuts foreign competitors like Adidas, Nike, and Puma but also caters to the financial capabilities and needs of students and sports enthusiasts, demonstrating the profound influence of price on consumer spending and behavior.
A survey of 86 customers revealed varying levels of satisfaction with Biti's products, with 7% expressing extreme dissatisfaction and 15.1% reporting being very satisfied, while 39.5% were satisfied and 37.2% neutral, and only 1.2% dissatisfied.
A recent survey revealed a notable divide in customer satisfaction with Biti's product prices, with 54.6% of respondents expressing satisfaction or very satisfaction, and 37.2% feeling neutral However, a small percentage of customers, 7% and 1.2% respectively, reported being very dissatisfied or dissatisfied with the prices, possibly due to higher-than-expected costs or unaffordability for low-income segments To enhance customer satisfaction, Biti's may consider offering attractive promotions and incentives, increasing product value, and conducting market research to better understand customer price expectations and stay competitive.
A recent price satisfaction survey revealed valuable insights into the price that customers are willing to pay for the product, with the results presented in Figure 14, providing a comprehensive understanding of customer price expectations.
A survey of 86 participants revealed that 50% of respondents are willing to pay less than VND 500,000 for Biti's products, while 41.9% prefer a price range of VND 500,000 to VND 1 million A smaller percentage, 5.1%, are open to paying between VND 1 million and VND 1.5 million, and 3% are willing to pay over VND 1.5 million for these products.
CONCLUSION
Limitations of the Study and Results
The study's findings are constrained by a limited sample size and scope, as data was collected from a small subset of Biti's customers in Vietnam, which may not be representative of the entire customer base Furthermore, the research only examined the 4Ps marketing strategy, neglecting other potential factors that could impact Biti's success, such as the competitive landscape and macro environment, which may limit the generalizability of the results.
Recommendations on 4Ps Marketing Strategy
While Biti's boasts an impressive portfolio of well-designed and high-quality products, there is room for expansion to cater to a broader customer base Consideration should be given to introducing new footwear lines, including sandals and dress shoes, to diversify the company's offerings Furthermore, investing in research and development to create innovative products with cutting-edge features and technologies could be a strategic move to stay ahead in the market.
To stay competitive in Vietnam's footwear market, Biti's pricing strategy should be regularly reviewed and adjusted Offering more discounts and promotions can help attract new customers and encourage repeat business Implementing a tiered pricing approach, with distinct price points for various product categories and target markets, can also enhance the brand's appeal and drive sales.
To further solidify its market presence, Biti's may consider diversifying its distribution channels to encompass prominent online retailers and international markets, thereby broadening its customer reach Enhancing the in-store experience is also crucial, which can be achieved by employing well-informed sales personnel and offering an extensive array of products By expanding its distribution network and refining its retail strategy, Biti's can effectively capitalize on emerging opportunities and establish a more substantial foothold in the market.
To maximize its marketing efforts, Biti's should consider diversifying its promotional mix by incorporating more digital marketing strategies and social media engagement, allowing the company to reach a broader audience By doing so, Biti's can increase its online presence and build stronger connections with its customers Furthermore, developing targeted promotional campaigns that cater to different customer segments can help the company tailor its marketing approach to specific needs and preferences, ultimately driving more effective brand awareness and sales.
Overall Recommendations
To solidify its position in Vietnam's competitive footwear market, Biti's should prioritize strategic expansion of its product line and invest in research and development to stay ahead of the competition This can be achieved by introducing innovative products, enhancing in-store experiences, and diversifying promotional channels to cater to its loyal customer base Furthermore, offering targeted discounts and promotions, while expanding distribution channels, will enable Biti's to effectively reach and engage with its customers, ultimately driving business growth and maintaining its market success.