Professional Documents
Culture Documents
Biti's - POM Final Report
Biti's - POM Final Report
PRINCIPLES OF MARKETING
MEMBER’S EVALUATION
Student Contribution
No. Name Content Sign
ID
Đỗ Nguyễn Phương
1 719K0021 - Chap 1 100% Signed
Linh
- Chap 2.1
- Chap 3.2
Đào Nguyễn Ngọc
2 218D4000 - Acknowledgement 100% Signed
Anh
- Introduction
- Design report
- Chap 2.2
4 Đoàn Hoàn Mỹ 719K0129 100% Signed
- Chap 3.1
- Chap 2.3
5 Phạm Văn Tuấn 719K0143 - Chap 3.3, 3.4 100% Signed
- Conclution
3
LECTURER’S COMMENT
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
..................................................................................................................................... ..
4
Table of Contents
MEMBER’S EVALUATION.......................................................................................................... 2
LECTURER’S COMMENT ........................................................................................................... 3
CHAPTER 1. INTRODUCTION ABOUT THE COMPANY ..................................................... 8
1.1. Field of business .................................................................................................................... 8
1.2. Business performance and results ....................................................................................... 8
CHAPTER 2. MARKETING STRATEGY ................................................................................. 10
2.1. STP strategy......................................................................................................................... 10
2.1.1. Segmentation ................................................................................................................ 10
2.1.2. Target consumers ......................................................................................................... 11
2.1.3. Positioning..................................................................................................................... 12
2.2. Competitor of Biti’s (Nike, Adidas) ................................................................................... 12
2.2.1. Strengths ....................................................................................................................... 12
2.2.2. Weaknesses ................................................................................................................... 13
2.3. Positioning ........................................................................................................................... 14
2.3.1. Positioning map ............................................................................................................ 14
2.3.2. Positioning strategy analysis ....................................................................................... 14
2.4. The Marketing mix strategies ............................................................................................ 16
2.4.1. Product .......................................................................................................................... 16
2.4.2. Price ............................................................................................................................... 18
2.4.3. Place............................................................................................................................... 19
2.4.1. Promotion ..................................................................................................................... 21
CHAPTER 3. SOLUTIONS AND RECOMMENDATIONS .................................................... 23
3.1. Product solutions ................................................................................................................. 23
3.1.1. Material ......................................................................................................................... 23
3.1.2. Style and color .............................................................................................................. 23
3.1.3. Product packaging ....................................................................................................... 23
3.2. Price solution ....................................................................................................................... 24
3.3. Distribution .......................................................................................................................... 24
3.4. The media ............................................................................................................................ 25
CONCLUSION............................................................................................................................... 27
REFERENCES ............................................................................................................................... 28
5
ACKNOWLEDGEMENT
In order to do this report, we are all surprised of how hard conducting a research
paper is. So far, we can say that this is the hardest assignment we have ever done.
Although this report may not be too valuable but this is the result of enthusiasm of
our group. We think through this report, the knowledge we learned is uncountable.
All the hard work is worthy.
It might be impossible for us if it were not for all the help we received.
Foremost, I would like to show my sincere gratitude to Miss Pham Thai Ngoc for her
continuous support. Beside her enormous specialized knowledge, she is also a
humorous person. Thanks to some of her subject-related videos, we find the
classroom atmosphere less stressful than ever. Everyone in our group felt thankful to
have her as our teacher and instructor.
During the progress of writing in report, our group members were extremely
diligent, enthusiastic and hard-working in order to complete the final one. We want
to thanks ourselves for our stubbornness, trying our best stick with the research till
the end and not giving up. Last but not least is our Ton Duc Thang University. Thank
you for all the handy documents, research papers and informative sources through
library.
Our group will forever remember and cherish this wonderful experience and
make this become our foundation in business researching path in the future. Once
again thank you all for your help with our paper.
Best regards!
6
INTRODUCTION
The country's economy is growing day by day, people are paying more and
more attention to fashion, especially shoes. Since then, a lot of famous international
brands have been imported into Vietnam. However, with the increasing demand of
customers, buyers not only need quality but the product must be combined from many
factors.
Now, Biti’s has grown strongly along with the development of the country. It
is not only the prestigious brand but also a pioneer in exporting to the world market.
Biti’s has their brand marked in more than 40 countries around the world, including
some big and developed countries such as Italy, France, USA and so on. They have
more than 1500 firms across nation and nearly 8500 employees with high skills,
passion with what they are doing and have great sense of responsibility.
Within nearly 40-year journey, Biti’s has achieved lots of big prizes and
accomplishments. They gained gold cup in Top 10 Vietnamese High Quality
Prestigious Brands 3 years in continue, from 2005 to 2007; were recognized as
Vietnam National Brand in 2008, 2010, 2012 and 2014. They were also listed in Top
40 Vietnam Most Valuable Corporate Brand in 2016 and 2017 and more other prizes.
10
2.1.1.1. Geographic
- Nations: Vietnam
2.1.1.2. Demographic
Customers are children from 5-15 years old: this group of customers likes
vibrant colors, with many funny patterns to create excitement for the children.
However, this group of customers is still small, so they are not aware of fashion, so
the decision to buy depends on their parents.
Customers are teenager or young people from 15-25 years old: Customers are
young people from 15-25 years old: mainly students, students, so the income depends
mainly on the family's support. So price is a very important factor. Products of both
quality and reasonable price will decide the choice of customers. This is a very
11
potential market, because young people at this age usually have at least 2 pairs of
shoes to go to school, hang out, ...
Customers over 30 years old: this is the class with stable income.
2.1.1.3. Behavior
Buy due to personal needs: When buying footwear products, they often pay
more attention to the style, color, and style that the product brings. Selected footwear
must match the personality and accentuate style.
Buy for family needs: The products chosen to buy are usually household
products, and shoes are often purchased with a simple design suitable for furniture.
The product is suitable for everyone and brings the enjoyment of the user.
Buy for work needs: Selected products are required to be rugged and for
maximum safety for the user.
Buy for communication needs: Buyers can pay a premium for the right
products that are polite and formal for them.
2.1.2. Target consumers
Biti’s targets all types of customers from workers with average wages to the
upper class in society, from the elderly to children. Every customer becomes the
target market of the business. The business will meet the needs of all customers for
the types of products they need.
2.1.3. Positioning
Compared with other competitors, Biti's products have higher quality.
Combined with Vietnamese consumers like suitable price go with the quality.
Therefore, the company's positioning strategies mainly focus on the quality of Biti's,
which has successfully built its brand as high-quality Vietnamese goods. Speaking of
Biti's, people immediately remember the slogan "Nâng niu bàn chân Việt". However,
in order not to fall behind other competitors, Biti's needs to maintain the following 3
factors: good quality, good customer service, beautiful designs, rich styles, and trendy
designs.
Having customers' trust in product quality due to foreign brands (thinking that
has existed for a long time in Vietnam is to only trust imported products, doubt the
quality of domestic products).
designs and making careful investments, Adidas has built a leading advanced brand
in the market, produce new, innovative products)
High marketing capacity, marketing activities are not regular, clear, and
organized in a systematic way. (Adidas: Promote advertising programs on websites,
television. There are many promotional programs for each product), (Nike: The
company uses promotional tactics to reach target customers and persuading them to
buy the product Nike's promotional activities are sorted by its importance:
Advertising, Personal Selling, Direct Marketing, Sales Promotion, Public Relations)
Have a pricing strategy that makes customers satisfied (Nike: When using a
value-based pricing strategy, Nike considers consumers' perceptions of the value of
its product. This value is used to determine the maximum price that consumers are
willing to pay for the company's sports shoes, clothing, and equipment.), (Adidas:
Depending on the style and design Adidas chooses different prices. To compete with
competitors' products, Adidas will use affordable prices, but for products that are
newly introduced in the market; are uniquely designed, and are "limited" the price of
the products will not be cheap.)
2.2.2. Weaknesses
There is no home-field advantage in Vietnam (with more than 36 years in the
market, Biti's is confident that it can understand the thoughts and spending
psychology of Vietnamese consumers).
2.3. Positioning
2.3.1. Positioning map
Good
quality
minds of customers that they are "high-quality Vietnamese goods". The positioning
according to product quality 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 "nurturing Vietnamese feet", it partly orients Biti's to be Vietnamese
goods, 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. However, if you don't want to be lagging behind other competitors, Biti's
needs to rethink its positioning strategy because today, being durable is not enough.
Shoes have become fashion products, expressing each person's style and personality.
Biti's products in the future need to be positioned according to all 3 factors: Good
quality; form, beautiful design, rich in style, trendy and good customer service.
Should continue to use old materials and search for new materials from
domestic sources to develop a "pure Vietnamese" product, and at the same time, it is
convenient to improve product design and reduce costs. Strongly develop the
production of foam slippers, because in Vietnam market, almost only Biti's company
has the technology to produce foam slippers. The material for the production of shoes
for children and teenagers must be especially cool and not occlusive. Because this is
an active subject, having a lot of fun, often sweaty feet.
Biti's should produce more bags for its products, suitable for different
audiences. The bag should be beautiful and eye-catching, with a clear Biti's logo
18
2.4.2. Price
Continuing to use the one-price strategy to give consumers peace of mind,
without worrying about being overpaid, afraid of pitting, or buying the wrong thing.
Currently, the price of Biti's products is still much higher than other competitors,
mainly due to the cost labor, raw materials. If you can find and use local materials,
the cost will be lower. However, it is still advisable to use the policy of setting a
higher price than other competitors because of the Vietnamese mentality that "you
get what you pay for".
With a reasonable price, Biti's is still a top choice that consumers can consider.
Besides, the widespread coverage of the distribution system to all regions has made
it easier for consumers to access product sources and save time. And a brand value
that cannot be ignored is the slogan "Carrying Vietnamese feet" which shows the
deep concern for Vietnamese consumers as well as the long-term strategy of Biti's
when it wants to maintain investment and development. seriously develop in the
Vietnamese market. Therefore, consumers can be assured of quality as well as be
proud of a prestigious Vietnamese brand. In the past few years, the Vietnamese
market in general as well as the Vietnamese fashion market in particular has made
great strides and has a tendency to internationalize. Therefore, the demand for
branded and classy products of Vietnamese consumers is getting higher and higher,
well aware of that need as well as the desire to provide customers with high quality
products, Being competitive in both brand and aesthetics, Biti's has launched
GOSTO, a high-end fashion brand in Vietnam. After 5 years of establishment and
19
development, thanks to well grasping the increasing needs and tastes of Vietnamese
consumers, GOSTO has a certain position in the current fashion market. Using
GOSTO's products, consumers can not only use high-class products but also see the
professionalism as well as the solemnity that the brand brings through the distribution
system located in the centers. High-class care, the professionalism of the service staff
in consulting and sales and also in terms of packaging and customer service are not
inferior to any leading brand in the world, so Customers can rest assured to choose
for themselves a high-end Vietnamese fashion brand. Price The selling price of Biti's
is also quite diverse, ranging from 50,000 VND (children's products) to 800,000 VND
(adult shoes). Biti's does not have special products, "limited production" products, so
the price does not exceed 1,000,000 VND. Compared with similar Chinese shoe
products.
2.4.3. Place
To be able to optimize profits more, Biti's needs to clearly segment the market,
have pricing policies for each segment and the right time. Continue to use the 3-level
distribution channel.
and more than 2,300 agents - stretching goods. across the country. Biti's distribution
system operates in the form of an indirect distribution channel, specifically a
centipede type: in major cities there will be a distribution center, which will combine
with local retailers and retailers will distribute to consumers.
The advantage of this way is to create a large coverage, easily bring Biti's
brand image to consumers without Biti's side needing to spend a lot of money to
invest. With more than 2300 agents-stores spread across the country, it can be seen
how large the market coverage of Biti's is. If Biti's invests in stores and agents by
itself, Biti's will have to spend a lot of money. huge cost in terms of capital and human
resources. Besides the advantages, there are also disadvantages. The first
disadvantage with such a dense distribution system will be difficulty in managing
distribution channelsThe criteria for choosing a distribution channel of Biti's is just
how Biti's can sell as many products as possible. Biti's needs to set specific rules for
stores and agents and negotiate with distribution channels suitable regulations for
both parties. Stores must commit to comply with regulations on store layout, product
display, merchandise structure and prices. This makes there uniformity between
stores and avoids conflicts between stores and agents. Diversify the form of purchase
by combining sales through stores and websites. Currently, the buying trend of
21
customers has changed, they need convenience in purchasing. Therefore, Biti's needs
to diversify the form of purchase to bring convenience to customers.
Selling over the internet is a trend that many manufacturers are applying, Biti's
can apply this sales form to attract more customers. Select qualified dealers and stores
and invest in more fashionable decoration and presentation to attract customers.
Currently, although Biti's has a lot of stores, there are stores that are just kiosks
in the market. These places do not qualify as a store because they do not have enough
space to display products and may not have enough financial resources to invest in
product display and store decoration. Bitis needs to re-select qualified agents and
stores so that these places can invest in more fashionable decoration and attract more
customers.
Thoroughly research the target market, make a reasonable decision about the
location such as the customer characteristics of the target market, age, occupation,
educational level, income. Repair and upgrade the store's infrastructure to be
spacious, clean and beautiful, arrange reasonable and eye-catching signs, highlighting
the image of the Company's products.
When choosing to open a new branch, it is necessary to take into account the
location where they will arrange the store, the ability to compete with the old agent
of the branch, creating favorable conditions for planning and saving costs.
distribution network costs effectively. It is necessary to maintain customer
conferences and open sales training classes for agents every year, thereby listening to
customers' opinions as well as improving the branch's sales skills to create effective
business conditions.
2.4.1. Promotion
Television communication strategy It can be said that in its heyday, Biti's paid
great attention to advertising communication. At that time, Biti's products were very
22
popular with consumers, it can be said that Biti's is currently leading the market in
footwear products.
The ad with the idea: "Creating Vietnamese feet" by Biti's has resonated with
customers. It can be said that this is the most successful marketing strategy of Biti's
at that time. With a trusted product foundation, strong Biti's brand, the use of
emotional marketing strategy hits the consumer's psychology.
With only the simple image of a footstep, but a step of the Vietnamese people
through each historical period, Biti's steps with the care of Biti's step into the new
millennium of outstanding development. Through those images, Biti's has aroused
the national pride of Vietnamese people, and with the last image, when Biti's feet
enter a new era, it increases trust and peace of mind for consumers. However, it is a
pity that when creating a buzz, Biti's remained silent without taking any action to
continue to maintain that position in the minds of customers, making Biti's image in
the minds of consumers from always at the top has now become a vague silhouette.
Although advertising with the message "Craising Vietnamese feet" is very good, if
there is no plan to maintain and develop it, no matter how good it is, it will be boring.
23
Except for Gosto's high-end fashion products that have their own packaging,
when buying Biti's products, we are usually only packed in blue bags with Biti's logo
printed. This is easy to get boring, moreover, today's trend is to use bags made of
environmentally friendly materials. Therefore, Biti's should produce more bags for
its products, suitable for different audiences. The bag should be beautiful and eye-
catching, with a clear Biti's logo printed, made from environmentally friendly
24
materials such as paper so that consumers can reuse it many times. The production of
more bags may increase the cost a bit but is very meaningful to stimulate customers.
3.3. Distribution
Continue to use the 3-level distribution channel: "Producer - agent -
wholesaler - retailer - consumer" as before because this system is operating
effectively. When choosing to open a new branch, it is necessary to take into account
the location where they will arrange the store, the ability to compete with the old
agent of the branch, creating favorable conditions for planning and saving costs.
distribution network costs effectively. At present, the rampant development of new
agents has caused many difficulties for business activities, causing fierce opposition
from agents to the branch's policies. Biti's does not have a detailed plan on sales
network, affiliated stores and direct agents. Therefore, Biti's should conduct the
planning of retail points to organize rationally between channels to avoid competition
and mutual destruction. It is possible to open more agents or combine with some
wholesalers in new urban areas where population growth is likely to occur, where
many young people will live in the coming years.
consider other factors such as the network of unofficial private agents of the branch
stores as well as the stores and agents of other competitors. It is necessary to maintain
customer conferences and open sales training classes for agents every year, thereby
listening to customers' opinions as well as improving the branch's sales skills to create
effective business conditions.
the product such as giving out Vip cards, membership cards to enjoy incentives when
buying, when there is a new product, the company will distribute catalogs and have
staff deliver home if required. Customers who buy Biti's products when they bring
them home that do not fit their feet or discover product defects, they can exchange
them at the dealer they bought, …
The media and mass information that can be used are television (maybe after
news programs on VTV1, TV gameshows on VTV3, between movies...); posters,
posters (large billboards mounted on the streets, near bus stops to impress while
waiting); newspapers (especially newspapers for young people like Hoa students,
Vietnamese students..., for women like the women's world, family marketing because
these are the main buyers, and posting information on trusted newspapers that they
often read will help increase the credibility of the product for them)
27
CONCLUSION
After completing this project, we have achieved certain goals. Biti's is a typical
example that Vietnamese fashion brands still have the opportunity to dive in today's
vast market if they focus on capturing trends and communication methods. However,
up to now, although the name Biti's has won more or less affection from fashion fans,
the emotional factor is still a great obstacle to this brand compared to Adidas or Nike.
In the process of learning about Biti's brand, we have noticed many gaps in customer
survey to find new positioning strategies that are more suitable with the trend of the
times that the company needs to change. In addition, the search, market expansion
and customer care service... also need to be improved and changed. Through this
project, we learned how to analyze a problem, draw experiences, make judgments
with the right view of the brand value and the benefits it brings.
From there, our team gathered the necessary ideas and solutions to help Biti's
brand orient its future development.
28
REFERENCES
Phân tích chiến lược Biti’s
(https://coccoc.com/search?Query=ph%C3%a2n%20t%C3%adch%20chi%E1%BA
%bfn%20l%C6%B0%E1%BB%a3c%20marketing%20c%E1%BB%a7a%20Bitis)
Biti’s hunter - giải mã sức nóng thương hiệu việt trên social media
(https://vietnammarcom.edu.vn/tint%e1%bb%a9c/chiti%e1%ba%bfttin/tabid/521/ar
ticleid/18849/categoryid/10/default.aspx?fbclid=iwar3x2bqxgxz0r_fqqifugay5deft-
zdcup04vbvn7bfafhnbzlukmk8jx2u)