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

THE FINANCIAL
UNIVERSITY OF FINANCE - MARKETING

Class: CLC_20DMA09

CREATING A MARKETING PLAN
FOR HNK’S NEW PRODUCT – CHELSEA BOOT
IN THE PERIOD 12/2021 – 12/2022

Majors: MARKETING
Specialized: MARKETING MANAGEMENT

Ho Chi Minh city, 2021

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THE FINANCIAL
UNIVERSITY OF FINANCE - MARKETING

Class: CLC_20DMA09

CREATING A MARKETING PLAN
FOR HNK’S NEW PRODUCT – CHELSEA BOOT
IN THE PERIOD 12/2021 – 12/2022

Majors: MARKETING
Specialized: MARKETING MANAGEMENT

Instructors: Master Đặng Huỳnh Phương
Student Implementation:
Name

Student code

Trương Quốc King

2021008461

Nguyễn Hoài Nam

2021008483

Trần Hữu Huy

2021007644

Huỳnh Trọng Nghĩa

2021009395

Nguyễn Phúc Bảo Khang

2021007850

Ho Chi Minh city, 2021

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TEACHER’S COMMENTS
Student Implementation:
Name

Student code

Trương Quốc King

2021008461

Nguyễn Hoài Nam

2021008483

Trần Hữu Huy

2021007644

Huỳnh Trọng Nghĩa

2021009395

Nguyễn Phúc Bảo Khang

2021007850

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

Score in numbers

Teacher signature

(Score in numbers)

(Teacher signature)

MAJORS MARKETING

MASTER ĐẶNG HUỲNH PHƯƠNG

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EXECUTIVE SUMMARY.................................................................................................. 3
CHAPTER 1: HNK COMPANY OVER VIEW ................................................................... 4
1.1.
1.1.1.
1.1.2.
1.1.3.
1.1.4.

1.2.
1.2.1.
1.2.2.
1.2.3.

INTRODUCTION ........................................................................................................ 4
Vision ............................................................................................................................................. 4
Core values .................................................................................................................................... 4
Mission ........................................................................................................................................... 4
Business philosophy ...................................................................................................................... 4

STRATEGIC OBJECTIVES ........................................................................................ 5
Marketing Objectives ................................................................................................................... 5
Brand Objectives ........................................................................................................................... 5
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.
2.2.2.
2.2.3.

Size and growth rate of Vietnam's leather shoes market ............................................................. 7
Trends of Vietnam's leather shoes market .................................................................................... 7
Competition in the Vietnamese leather shoes market ................................................................. 8

2.3.

SWOT OF PRODUCT ........................................................................................................ 8

2.4.

COMPETITORS ...............................................................................................................10

2.4.1.
2.4.2.

Direct competitors................................................................................................................... 10
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
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CONCLUSION ................................................................................................................ 24

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EXECUTIVE SUMMARY
HNK is a start-up company from 2021 specializing in the production of Europeanstyle 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:
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

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CHAPTER 1: HNK COMPANY OVER VIEW
1.1.

INTRODUCTION

In the era of global open trend, elegant, stylish and luxurious dress styles are
increasingly popular. Therefore, with the desire to bring Vietnamese people to stand
shoulder to shoulder with other countries in the world, we are constantly trying to create
leather boots with the best design and quality to accompany "Children of the fairy and
dragon" in every way. That’s the reason why HNK was established.

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.

1.1.2. Core values
Providing quality finished leather shoes with outstanding design and elegance in
classic style for Vietnamese men so they can shape their own style.

1.1.3. Mission
HNK always upholds the bravery of men, does not hesitate or falter in the face of
difficulties and challenges. HNK takes two core factors to develop products and brands:
• 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 - Đồn”.
• “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.
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• “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.

1.2.2. Brand Objectives
Enhancing brand value for customers so that when it comes to stylish, personalized,
quality and affordable leather shoes, HNK will appear in the minds of consumers. Aiming
to build HNK to become one of the leading leather shoe manufacturers in Vietnam within
2 years.

1.2.3. Financial Objectives
•

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.

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CHAPTER 2: SWOT & MACRO – ENVIROMENT ANALYSIS
2.1.

SWOT OF COMPANY

Strengths
• The staff is young, dynamic, enthusiastic and full of enthusiasm at work. Having
knowledge and understanding about Vietnamese fashion today brings many new
things about fashion trends to hit the right psychology of customers.
• 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.

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• 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.

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2.2.3. Competition 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.

2.3.

SWOT OF PRODUCT
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.

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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.

Threats
T1: Although never out of fashion, fashion trends are always volatile and
unpredictable, easily leading to large sales fluctuations.
T2: The uses are not as diverse as the sports shoes that go out, work and play sports
T3: 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.

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.

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SO - ST - WO - WT Strategies
SO Strategies
S1+O2: Promote communication channels, create a community for vintage style
enthusiasts.
S3+O1: Create products with lower prices than the market average but still ensure
quality.

ST Strategies
S1 + T1,T2,T3,T4,T5: Together with the KOLs, create clips on social networking
sites such as facebook, tiktok, youtube, ... to orient consumers in the preservation of leather
shoes, guide to create matching outfits with shoes.
S3 + T3,4: Focusing on investing in production, constantly updating trends to create
breakthrough products for consumers.

WO strategy
W3 + O1: Use capital from reduced input costs to boost the design team.

WT strategy

W3 + T1: Research to create new products.

2.4.

COMPETITORS

2.4.1. Direct competitors
When it comes to gaining a foothold in the market, HNK has to compete directly
with brands specializing in Chelsea shoes with the same target market as middle-class
Vietnamese men with a simple lifestyle. elegant and care about her appearance.
Specifically, HNK has to face domestic rivals such as: The Wolf; Rowan; JOG4... Besides,
domestic enterprises all have a diverse product portfolio, have many branches, and
distribute strongly from the North to the South, so it will create a lot of pressure on HNK.

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.

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3.1.

CHAPTER 3: STP STRATERGY
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

Demographic

From 18 to 25

From 25 to 35

From 35 to 40

Region: VietNam,
concentrated in big cities,
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, ..

Gender: Male

Gender: Male

Gender: Male

Occupation: Students,
students and new
graduates, ...

Occupation: Office worker,
worker, public servant ...

Occupation: Longtime
employee, ...

Family: Independent

Family: Recently married or
with young children.

Family: Stable, raising
children until independent.

Income: dependent on

family or low average
income.

Income: Medium low to
medium high or high

Income: Above average.

Class:popular, middle
class

Class:popular, middle class

Class: middle class.

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

Lifestyle: Slow down, tend
to take care of health,
beauty

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.

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.

Lifestyle: Being sharp in
life, easily absorbing
science and technology,
quickly contacting media
programs.

Psychographic

Behavioristic

Personality: Cheerful,
ambitious and inquisitive.

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Benefits to look for:
Product quality, price and
design, feeling of use.

3.2.

Benefits to look for: Product
quality, price and design,
feeling of use

Benefits to look for:
Product quality, price and
design, feeling of use

Loyalty level: Average,
easily fluctuating if there
is a cheaper product that
still ensures quality.

Loyalty level: Medium high.

Loyalty level: High, once
they put their trust they
rarely change.

Usage status: Potential
users, regular users
Nhạy cảm về giá: Trung
bình và cao.

Usage status: old user
,potential user
Nhạy cảm về giá: Trung
bình.

Usage Status: Former User,
Potential User
Nhạy cảm về giá: ít và
trung bình.

Price sensitive: Medium
and High

Price sensitive: Medium

Price sensitive: Low and
Medium.

Reference groups:
Friends, youtube,tiktok,
facebook,...

Reference groups: Family,
colleagues Friends, social

networks

Reference groups: Family,
colleagues, Friends.

TARGETING

HNK always creates suitable leather shoes for all segments. Each product is changed
to suit the needs and preferences of each customer.
However, our target market is men between the ages of 18 and 40. They always want
to have quality leather shoes and eye-catching designs, but at the price of foreign brands, it
is difficult for a Vietnamese person to easily buy.
For the age group from 25 to 40, at this age men have formed their own fashion style
and have their own personality, so the choice of shoes is extremely thoughtful. So leather
shoes help Vietnamese men to define their own fashion style and express themselves.
About young people from 18 to 25, outstanding design is for young people who love
strong and brave style. This is an extremely potential market for product development.

3.3. POSITIONING
There are many famous brands of leather shoes on the market today. They offer
quality products but with very high prices and no design breakthroughs. It is very difficult
to reach young people with middle incomes. HNK positions itself as a quality product but
the price is still very suitable for all men to help young people can own the shoes they want.
Positioning on quality: With the desire to bring to Vietnamese consumers products
made by Vietnamese themselves with perfection, design and durability comparable to
products from abroad.
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Price positioning: Price is always a problem for those who have a taste for leather
shoes. Understanding this, the company has tried to reduce all possible costs to create
leather shoes that are affordable. The price is suitable for everyone to own and experience.
Although HNK offers quality products that are comfortable to use compared to
competitors, it has a cheaper price to meet all men's needs for a pair. Quality leather shoes.

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CHAPTER 4: MARKETING MIX STRATEGIES
4.1. PRODUCT STRATERGY
4.1.1. Product mix
The HNK Chelsea boots will have many different variations but they always have
the following common characteristics:
• Height more than or equal to the ankle.
• The toe of the shoe is often pointed, it is also possible to vote.
• Just like the oxford or derby shoes, the Chelsea has a captoe or brogue design or is
simply made of two separate pieces of leather: the front and back. They will be
assembled and met at the ankle position and connected by one or two pieces of
stretchy material such as elastic band or vulcanized rubber.
• Low or high heels.
Some chelsea boots products that HNK will aim to produce
Product’s

Illustrations
Characteristics
Design
name

Short ankle boots.
The shoes have
elastic on both sides
running from the
ankle down.

Classic
Chelsea

Commando

It's a kind of military
shoe.

Jodphur

A product
specifically for horse
riding..

Zip

A zip-up shoe with
padding at the ankle.
It will definitely help

the boys become
more "dusty" and
"personal".

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The collar is ankle high or can
be a little over. Rounded toe.
Low heel 1-3cm. The body of
the shoe is made of only two
separate pieces of leather. The
two parts of the shoe are
connected by two pieces of
elastic on the side of the shoe.
This stretchy piece runs from
the collar to near the bottom of
the shoe, 3 4cm from the sole.
The Commando sole is the
classic rubber sole for hiking or
working boots. Characteristic of
this type of sole is the plusshaped protrusions of the shoe.
Compared to many other types
of soles, Commando soles are
usually larger to create better
grip in all terrain and weather
conditions …

Similar in construction to the
traditional Chelsea shoe design.
However, they are wraparound
belts instead of elastic skin. Like
variations of Chelsea shoes, the
simpler the better and the better.
Considered the most modern
variation, less influenced by the
classical style. However, they
are still very flexible in all
situations. That's thanks to the
buckle part. In addition, they are


somewhat more formal and
elegant than traditional Chelsea
boots.
Brogue shoes are a
form of low-soled
shoe, made from
animal skin. Patches
of hard leather are
stitched together in
the shape of a
finished shoe. To
distinguish between
the joints, between
the leather edges will
be serrated.

Broguing

The highlight of the Brogue
shoe is the perforations used as
decoration on the shoe. Due to
the harsh terrain conditions in
the past, these holes played a
role in providing ventilation.
They make it possible for men
to use in different harsh terrains,
especially wet places.

4.1.2. Product Value
• A man's class is made up of many factors, including fashion style. To honor the
beauty of a man, it is impossible not to mention the boots.
• Exuding an elegant and luxurious style for men.
• The shoes designed by HNK are suitable for guys who like simplicity, sophistication
but no less luxury in the way they dress.
The benefits that HNK boots bring
• When walking, you will feel the quality of the shoes through the feeling of softness,
comfort, flexibility and especially protect your feet in the most effective way.
• Choose the right quality leather shoes that are worth your money.
• Exuding an elegant and luxurious style for men.
• Owning a pair of quality HNK men's leather shoes will show off your own fashion
sense.

4.1.3. Packaging
When buying HNK products, they will be put in boxes made of Carton material with
2 outstanding colors: skin color and black so that consumers can reuse it many times with
HNK logo printed and equipped. eye-catching design. The box is designed to be the most

square so that the buyer can hold the lightest and help honor the beauty of the shoes.
In addition, there will be a small cloth bag made of good materials that can be used
many times and also helps to protect the environment to be able to store the shoe box.

4.1.4. Style and Design
Produce boots with simple designs that are easy to match but still have a classic,
elegant and luxurious look.
With many different colors for buyers to choose their favorite color. Usually, the
Boots have specific colors such as: Black, Brown. Tan (black rose-brown), Burgundy (wine
red) and non-traditional colors (green, blue, yellow...).
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4.1.5. Product support service
When buying HNK's products, you will receive a lot of incentives and also support
from our staff on the issue of leather shoes. We will support both online and offline
consultation for customers who are having trouble with our leather shoes.
When buying HNK products, if there is a problem or any defect from our
manufacturer, it will be returned within 30 days from the first purchase. And after the
exchange, we will give the customer a small gift instead of apologizing to the customer for
the unfortunate mistake.

4.2. PRICE STRATEGY
4.2.1. Valuation target
Price target of the business
As a new enterprise in the market, HNK's policy is to "Survival" in its target market.

In the Vietnamese market, the footwear industry is always fiercely competitive, and even
the market in which HNK is currently operating. The target is to include both the lower
middle and the upper middle class, so the price sensitivity in each shoe will have huge
fluctuations. Policy plan that our business aims to achieve break even point in the first 1
year.
Our investment capital starts at 500 million VND. So the goal of the business in the
first year is to recover its capital. According to our survey of raw materials, the leather
material market has a variable cost per unit of 200,000 VND, as well as our estimate, the
fixed cost for the first 1 year is in the range of 300 million VND. Because it's a new business
on market with a small amount of capital, we will proceed to provide our products on the
Online platform. And expected sales is 500 products in the first 1 year, corresponding to
the target of 40 products per month.
Select the product price.
According to calculations, the cost for each product is 800,000 VND
Unit cost = variable cost + (fixed cost/ unit sales)
= 200,000 + ( 300,000,000/ 500)
= 800,000 VND
After determining its unit price, in order to achieve its goal of breaking even in the
first year, HNK has determined the profit per product to be 20%. After calculating to reach
the breakeven point, HNK must sell products with an average price of 1 million.
Target-return price = unit cost + (desired return * invested capital) / unit sales
= 800,000 + (20% * 500,000,000)/ 500
= 1,000,000VND

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To reach breakeven point at the price of 1 million VND per pair, 375 products need
to be sold.
Break-even volume = fixed cost / (price - variable cost)
= 300,000,000/ (1,000,000 - 200,000)
= 375 products

Specifically, the prices of some products that HNK will aim to produce.

Shoes

Classic Chelse

Chelsea Commando

Jodhpur

Zip

Broguing

Price
(VND)

900,000

1,000,000

1,300,000

1,000,000

950,000

In the product line of HNK, although Jodhpur Shoes have the highest price, it is only
1,300,000 VND, a price that anyone can easily own. Besides, the two shoe products, Chelsea
Commando and Zip, priced at 1,000,000 VND. There are also two popular products, Chelsea
boots and Broguing Shoes, with relatively low prices for Vietnamese men to easily access
and own possess.

4.2.2. Pricing strategy
As a new brand, HNK needs to define a pricing strategy that is to penetrate a large
customer market, so that people know the brand more. Although the price is relatively low
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compared to the common ground, the quality of the product always ensures satisfaction of
the needs of consumers. With only an average price of about 1 million VND, you can own
a beautiful pair of boots with great quality.
In order for consumers to pay more attention to the quality of the products we
provide without worrying about the price, we have proposed the following methods:
• The associated organization buys used shoes to make use of usable materials and
then transfers them to leather shoe factories that can be recycled in order to minimize
the cost of buying new materials and protect the environment.
• Greater emphasis on service: Relationships between friends are built on trust. A
good customer care policy will make HNK more connected with its friends. HNK

provides shoe cleaning, shoe repair, shoe polishing, etc., depending on the type of
customer care service, there will be different limits.

4.3. DISTRIBUTION STRATEGY
4.3.1. Distribution chanel
Using direct distribution channels:
•
•
•
•

Distribution channel structure
Distribution Channel Length: Zero Level
Type of intermediaries joining the channel: None
Distribution channel width: Modern distribution channels and traditional
distribution channels.
Traditional distribution channel

Because the business is new to the market, the problem that HNK faces is how to
make the product reach customers in the easiest way. The use of traditional distribution
channels helps customers experience the most authentic products through resellers. So HNK
will build a small store, decorated with classic style for consumers to come try their own
shoes.
Modern distribution channel
With the strong development of the internet, the demand for using social networks
is increasing, so it is not possible to maintain the old distribution direction forever, but it is
necessary to innovate to adapt to specific markets such as selling online on the Internet. ecommerce sites, social networks, websites.
HNK will focus on developing distribution channels in major e-commerce products
such as TIki, shopee, lazada,... Create a separate website for the company with outstanding,
easy-to-see and easy-to-use features. Images posted on e-commerce platforms need to be

clear, true to reality, and have regulations on product size and size to bring products closer
to consumers.

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4.3.2. Distribution channel management
For an enterprise, the consumption of goods is always an important issue, deciding
the existence and development of the business.
In order to manage the distribution channels of enterprises effectively, HNK must
be knowledgeable about products, target markets as well as distribution channels and grasp
market changes. Here are some ways to manage distribution channels for HNK:
According to the traditional distribution channel
• Evaluating business activities: HNK needs to regularly evaluate employees and
make detailed reports to be able to understand the development and development of
the business.
• Careful in recruiting and using people: HNK will focus on getting to know its
employees and from there find out the company's strengths and weaknesses to put
in the search for employees for HNK.
According to the modern distribution channel
• Applying technology to distribution channel management: The application of
software can help HNK overall manage all business activities of the company, from
employee monitoring, customer’s oreder management.
• Process orders carefully and quickly for customers buying online: Customers today
tend to make purchasing decisions quite quickly. Therefore, HNK will always try to
process quickly: confirm with the customer, package, send to the shipping unit.

These should be completed within 24 hours of receiving a new order.

4.4. MARKETING COMMUNICATION STRATEGY
4.4.1. Advertising: Online advertising only.
Use ads on Facebook and Instagram
• Use ads on facebook and instagram to let users know the brand name more.
• Use facebook and instagram as a conversion channel: increase click-through rate on
fanpage and website.

Channel

Facebook

Format

Time (week)

Quanity

Unit

Post: Video Ads - Create a short TVC to
reach consumers.

4

1

Post

Post: Link Click Ads - Use to bring users
to the Website

4

20000

Click

4

20000

Click

Story: Link Click Ads - To bring users

Instagram to the Website

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Using Tik Tok ads: Using TVC on products to increase brand awareness.

Time (month)

Quanity

Unit

Note

1

1

Video

Reach at least 50,000 views

4.4.2. Public relation (PR)
Influencer
• Contact two Influencers who pursue the classic style to collaborate on reviewing and
promoting products.
• Use facebook and instagram as a conversion channel: increase click through rate on
fanpage and website.
Create a Youtube chanel
• Create videos to introduce products
• Educating consumers on how to coordinate and preserve products.
Create a Facebook group
• Create a community where vintage people can socialize.
• Support, interact with consumers about their feelings in the process of using the
product.

4.4.3. Promotion
During the period: 5/2022-7/2022

• Promotion form: Every week Give away for the luckiest customers, when
participating in the following steps: Subscribe to youtube channel and comment on
Youtube. After customers receive the gift about 3 months, invite them to share their
experiences when using the product.
• Purpose: To increase the consumer experience on HNK shoes. Increase brand
awareness.
• Quanity: 15 product.
During the period 7/2022-9/2022
• Promotion form: Organize a contest about matching on shoes of HNK. HNK will
be partnering with two influencers who have an understanding of the classic style
and are following the trend.
• Purpose: Create a playground for consumers, so that they know HNK as a
community rather than a relationship between a seller and a buyer.
• Quanity:
o First prize: 10 million cash 1 pair of shoes of HNK 1 year shoe cleaning
service.
o Second prize: 1 pair of shoes from HNK 1 year shoe cleaning service.
o Third prize: 1 year shoe cleaning service.
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CHAPTER 5: ACTION PLAN
12
2021

Category

Time

Create Fanpage Facebook,
Instagram & Website.

1/12/2021

Post in Facebook, Instagram
& Website.

1/12/2021

Run Ads in Facebook &
Instagram.

1/12/2021

Cooperate with Influencers.

18-25/01/2022 and
21-28/11/2022

Create 1 TVC.

1/1/2022

Create Tik Tok chanel.

1/2/2022

Run Ads Tik Tok about
TVC.

1/2/2022

Run Ads Facebook &
Instagram about TVC.

First week in
months.

Create Youtube Chanel.

1/3/2022

Create Facebook Group and
Invite every one to join.

1/4

Run Give away Promotion.

1/5/2022

Competition announcement.

1/7/2022

Run Competition.

1/8/2022

Awards.

1/9/2022

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1

2

3

4

5

6
2022

7

8

9

10

11


CHAPTER 6: FINANCE
Break-even analysis
• Number of products sold by quarter to break even: 94 products
• Quarterly breakeven revenue: 93,750,000 (VND)
Assumptions:
• Average revenue per product: 997,000 (VND) ~ 1,000,000 (VND)
• Average variable cost per unit: 200,000 (VND)
• Estimated quarterly fixed costs: 75,000,000 (VND)

Sale Forecast
Dự báo doanh số bán hàng
Time

1st quarter
(12 - 1 - 2)

2nd quarter
( 3 – 4 - 5)

3rd quarter
(6 - 7 - 8)

4th quarter

(9 - 10 - 11)

Sales (products)

80

110

130

180

Revenue (VND)

80,000,000

110,000,000

130,000,000

180,000,000

Cost (VND)

64,000,000

88,000,000

104,000,000

144,000,000

As expected, sales from December 2021 to December 2022 are 500 products with
total expected revenue of 500,000,000 (VND) and total cost is expected to be 400,000,000
(VND), so the expected profit in 1 year is:
500,000,000 - 400,000,000 = 100,000,000 (VND)

Cost Forecast
Format

Process

Quanity

Unit

Unit price
(VND)

Cost
(VND0

Note

TVC

Create 1 TVC

1

PER

2,000,000

2,000,000

DIY

Per

Creation fee:
1,400,000
Maintaining fee:
450,000 * 12

6,800,000

Easy to use
and beautiful

Website

Create 1 website

1

Total fee of TVC and Website
MEDIA

Post: Video Ads

– Use TVC to

4

8,800,000
Post

22

4

0

5,000,000/ 1 post

20,000,000

In one
quarter.