(Tiểu luận FTU) chiến lược thâm nhập thị trường hàn quốc của CTY bitis hadi green

TABLE OF CONTENT
I.

INTRODUCTION.............................................................................................................1

II. SWOT & MACRO – ENVIRONMENT ANALYSIS....................................................2
1.

SWOT of the company....................................................................................................2

2.

The Macro – environment...............................................................................................3
2.1.

Economic environment..............................................................................................3

a)

Overview................................................................................................................3

b)

Human Development Progress for South Korea...................................................5

c)

Government size and Tax’s policy.........................................................................5

d)

Open market ( Open economy)..............................................................................5

e)

Labor Features and Structure...............................................................................6

2.2.

Political and legal environment.................................................................................6

a)

Political..................................................................................................................6

b)

Legal......................................................................................................................7

2.3.

Social environment....................................................................................................7

a)

Advantages.............................................................................................................7

b)

Challenges.............................................................................................................9

2.4.

Demographic environment......................................................................................10

2.5.

Natural environment................................................................................................10

2.6.

Technological environment.....................................................................................11

a)

The development of Internet and Ecommerce in Korea......................................11

b)

The impacts of technological factors on Biti’s company.....................................15

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3.

III.

Competitors....................................................................................................................18
3.1.

Shoopen...................................................................................................................18

3.2.

ABC MART(Japan )...............................................................................................18

3.3.

KOLCA( Korea ).....................................................................................................18

3.4.

T. hud.......................................................................................................................19

3.5.

FILA........................................................................................................................19

MARKET ENTRY STRATEGY...............................................................................20

1.

Biti’s entry mode...........................................................................................................20

2.

Targeted market.............................................................................................................21

IV.

MARKETING MIX STRATEGY( 7Ps )...................................................................21

1.

Product...........................................................................................................................21

2.

Place...............................................................................................................................24

3.

Price...............................................................................................................................25

4.

Promotion......................................................................................................................26

5.

People............................................................................................................................27

6.

Process...........................................................................................................................27

7.

Physical aspects.............................................................................................................28

V.
VI.

CONCLUSION................................................................................................................29
REFERENCES............................................................................................................30

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I. INTRODUCTION


Company: Biti's (full name: Binh Tien consumer goods manufacturing company) is a
brand specializing in shoes and sandals manufacturing in Vietnam, established in
District 6, Ho Chi Minh City in 1982. Biti’s accounted for 15% of the domestic
footwear market in 2016. Biti’s products have a renowned reputation of being
extraordinarily long lasting.



A business leader has a great influence on the operation and regulations of the
marketing department must work closely with other functions in the company such as
finance-accounting, materials - production, succession planning, upgrading and
development, design department, human resources department. These units must be

closely coordinated within the Company to accomplish the plan set forth in the
company.



The company now has relationships with hundreds of companies in the country and
abroad. The company imported raw materials for the production of footwear from
Korea, Taiwan, and China.



Bitis is rated one of the companies with a large distribution network with 7 branch
centers, 156 marketing outlets, more than 1500 retail distribution intermediaries.



Biti’s Hunter is the new line of products added to the company’s portfolio, since its
release in early 2016, it has become the most sought after the products of a wide range
of products that the company has to offer and become the company’s most efficient
line of products thus far.



With sudden burst popularity in the company after the release of this line of products,
we believe that this particular line has a lot of potential.



Biti’s Mission: Today, Biti's has not only stopped in the domestic and regional markets
but also brought the Vietnamese brand into the international market. And from So

Biti's affirmed the brand name of Vietnam and Vietnamese high-quality products in the
international market.



Mission statement: “ Tender care of your feet” 

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II. SWOT & MACRO – ENVIRONMENT ANALYSIS
1.

SWOT of the company

Strength

Weakness

-High-quality products, wide range, low -Financial problems: Preparing to penetrate
price, suitable for wearing.
-Strong

reputation

in

new market costs
Vietnam

and -Lack of reputation: Company faces a

international market.

problem of creating a new perception of

-Physical resources: modern machine, Biti’s
technology for manufacturing shoes

-HR is not really good, need to be trained to

-Used Son Tung MTP (he has lots of fans be more professional
in Korea)  as a KOL, Biti’s shoes appeared
in his music video for promotion.
Opportunity




Threat

Korea is a potential market with

Have

to

compete

purchasing power of consumers is

manufacturer

quite good

products are favorable thanks to

Korean are interested in fashion

quickly in catching trends, various in

and this country is the origin of

designs, and especially low in price so

many trendy styles, having a huge

that it can meet the demand of people

impact on the fashion industry in

in all income level

in

is
the

the

Chinese

products.



China

with

large scale, high growth and the

the world




largest

world.

Its

Need to produce more attractive

Products made in Vietnam are now

designs, compared to others shoes

more and more favorable thanks to

brand in the world (Adidas, Nike,...)

low in price but good in quality and

and in Korea(Fila,...)

design, compared to products from
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China, India,...

2.

The Macro – environment
2.1. Economic environment
a)

Overview

The economy of South Korea is the 4th largest in Asia and the 11th largest in the world.
South Korea has experienced one of the largest economic transformations of the past 60 years.
Given its limited geographical size, natural resources and population size (a labor force of
almost 28 million people out of its 51.2 million population), the country has devoted special
attention to technology development and innovation to promote growth, growing from a
predominantly rural, agricultural nation into an urban, industrialized country. Industry
represents 35.9% of the GDP and employs 24.8% of the workforce.  

Year GDP

GDP

(in Bil. US$
PPP)

capita
(in

per GDP

Inflation

growth
US$ (real)

PPP)

rate

Unemployment  Government
(in Percent)

(in

debt
(in % of GDP)

Percent)

2016

1,933.5

37,730

2.8 %

1.0 %

3.7 %

40.0 %

2017

2,029.0

39,434

3.1 %

1.9 %

3.7 %

39.8 %

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South Korea Consumer:

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=>> All the index of the whole economy of Korea is proving that they are developing
dramatically, the standard of living is more and more higher. In Korea, people in young age
are quite interested in the entertainment, accessories, clothes,... because they have enough
income to afford the daily living standard, spend, and the left money is spent on making their
appearance. Nowadays, the market of shoes, clothes, accessories increases sharply, the total
sales of these items are rasing up, it creates the opportunities for all sellers from local brands
to foreign brands. 
b)

Human Development Progress for South Korea



South Korea is ranked 15th in the latest Human Development Index



Life expectancy is high (80.6) and public expenditure on education and training high
(>4% of GDP)



The country is highly urbanised (83% of the population)



Income and wealth inequality is low but it has been increasing in recent years.



Number of people uses Internet: 81,5% population (2011) 

=>> The young population, the high quality of education, and the life expectancy is high
is creating the potential customers for the shoe’s market, especially sneaker, and Bitis. The
urbanization is developing and number of people uses internet is high help brands to increase
the effective of digital marketing and build up the location of showrooms.
c)

Government size and Tax’s policy

The top personal income tax rate has been raised to 42 percent, and the top corporate tax
rate has been raised to 25 percent. Both rates are subject to a 10 percent surtax. The overall tax

burden equals 26.3 percent of total domestic income. Over the past three years, government
spending has amounted to 32.4 percent of the country’s output (GDP), and budget surpluses
have averaged 1.4 percent of GDP. Public debt is equivalent to 39.8 percent of GDP.
d)

Open market ( Open economy)
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The combined value of exports and imports is equal to 80.8 percent of GDP. The average
applied tariff rate is 4.8 percent. In 2018, according to the WTO, South Korea had 394 nontariff measures in force. Foreign investment in some sectors remains restricted, and decisive
policy reforms to facilitate greater investment flows have been absent. The financial sector is
competitive, but business start-ups still struggle to obtain financing.
Regarding South Korea's commitment to reduce import tax for Vietnam, South Korea has
completed the elimination of import tax as committed in the AKFTA Agreement from 2010.
Accordingly, up to now, 90.9% of goods Vietnam's goods exported to South Korea will enjoy
0% tax rate if they have a certificate of origin. 
=>> This advantage of tariff give a big chance for Bitis to penetrate into the shoe’s market
of Korea, the competitive cost with other foreign brand like Adidas, Nike, ...
e)

Labor Features and Structure

Growth and changes in the structure and ownership pattern of the economy also have
changed the labor force. 
By 1958, individual private farmers: >70% of the labor force, had been transformed into
or replaced by state or collective farmers. 
Labor force (12.6 million)—by occupation:


Agricultural: 35%



Industry and services: 65% 

=>> The restructuring of economy in Korea drags on the standard of people is higher than
before. Contemporaneously, this makes the urbanizations develop faster, improve the income
of people which creates the potential customers for shoe brands like Bitis.

2.2. Political and legal environment
a)

Political

South Korea is a democratic country, in which maximum power is vested in the
president. After the financial crisis in 1997, This country was willing to undertake strong
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economics reforms and adopt more economic freedom. As a result of rapid and effective
political intervention, the country's growth rate quickly returned to normal and the financial
sector stabilized. Continued interventions by the government are the main drivers of the
development of South Korea. Moreover, the country maintains diplomatic relations with 191
countries (2019), which proves that the government is looking forward to strong international
cooperation with all other countries around the world. 
Due to those political characteristics, political system of South Korea became more
effective, allowed the country to focus on economic development and made it to be more
attractive for foreign investors. 
b)

Legal

The South Korean judiciary is based on the US and German court systems and juries
are not implemented during trials. The country also has an exclusive constitutional court,
which keeps a supervision on government decisions and lawmaking. 
Since South Korea became a member of the Economic Co-operation and Development
(OECD), it gained the status of a developed country and provides one of the most attractive
regulatory incentives for industrial development among the OECD nations. The incentive
solutions provided by the government is the major attraction for foreign investors, such as tax
deductions or exemptions, cash grants, etc.
In addition, Vietnam and Korea both signed a Vietnam - Korea Free Trade Agreement

(VKFTA) on 5/5/2015. This kind of relation provides more opportunities to Vietnamese
Companies in this potential market.
2.3. Social environment
a)

Advantages

Expressing style

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"Expressing style" is the first trend in Korea in 2019. Consumers today require more than
just use-value. For example, when going on a picnic at the park on the banks of the Han River,
people not only buy a kite and run right there  but want to lie on the grass, next to it is a basket
of various things, even decorative flowers, like romantic images of actors on small screens.
Businesses today focus on products that help consumers express their own personality and
style.  As a company working in a fashion industry, our company needs to be aware of this
trend promptly, because what you wear is not only clothes, or a pair of shoes, it is your
character, it is a way to show your style, to define “who you are”, to express your own slogan
to the world . So that we have launched several collections with a wide range of choices, from

designs, materials, usages, to colors, prices, sizes and genders. With our products, we hope
that our customers can receive a diversity experience and never be limited in choices.
Famous people have a huge influence
Previously, distributors often had to sell goods at stores. However, with extensive
distribution services, anyone can open online stores and sell products and services. With the
era of online multimedia becoming increasingly popular, many influential people on social
networks have opened online sales channels, or combined with other online sales brands on
their own pages. of them, thereby leading the trend of one-person markets. So choosing a
suitable KOL to become the representative of the brand is very important. “Son Tung MTP” is
a single with a good reputation not only in Vietnam but also in all over the world, especially in
Asia, he is a young person represents for the young generation, dare to think, dare to do, dare
to make the dream come true, and dare to express his own style, to make people impress and
remember it. We can say that choosing Son Tung as a representative helped Bitis “turn over a
new leaf”, to make total changes and make Bitis alive again 
Newtro
Another phrase for the trend of 2019 is "newtro" that combines the "new" (new) trend and
the "re-emergence" (retro) trend. This is the trend back to the style of the 1990s, bringing
people back to the memories of the previous generation. Despite the old features, this new
style still brings new experiences for young people about a period that they have not even
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born. The trend of "newtro" combines the past and present styles, helping to attract young
people in their 20s, so we will try to bring this trend to our products through features like
design or combination of color , or the way approaching customers,...
Foreign brands are favorable  and Customers always look for new things
The Korean fashion market is now likened to Japan in the 90s, attractive, fresh and always
demanding new every day from young brands. The reaction from Seoul's consumers also
partly shows the trend of the fashion market here. There are more than two hundred buyers
from foreign design firms to attend Seoul Fashion Week.
The Korean fashion industry is on the rise, but most of the revenue comes from tourists.
The tastes of customers are gradually changing, including older customers. They want to look
for new things at new brands instead of traditional brands. These are potential features which
give Bitis an opportunity to enter this new market.
b)

Challenges

Competition with domestic firms
According to Euromonitor, Korea's garment and accessories market is worth about 5
billion USD and an average increase of 7.2% per year. While the Korean fashion industry is
on the rise, it is still struggling because of the slow economic recovery. Domestic fashion
firms also have to face the same challenge but they face the challenge of launching unique
design products or taking advantage of interesting cafés or galleries to sell their products. .
Boon the Shop, Space Mue or 10 Corso Como are all run by multinational corporations like
Shinsegae, Hyundai , and Samsung. Although their influence has been declining in recent
years, they still account for about 85% of GDP, although only 13% of the workforce is
employed.
Emerging brand "SPA"
As a private clothing brand made in Dongdaemun garment area with cheap production
cost, it offers a trendy and easy-to-wear design such as Stylenanda or Imvely, SPA is a

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formidable competitor for both Korean fashion firms and international. With "backing" from
famous stars and constant demand for new and unique products, despite facing many
difficulties, Korea will remain a promising land for young designers from all over the world.

2.4. Demographic environment
Population of Korea in 2017: 51,181,299 

 Target customer: Age from 15- 30, for Biti’s Hunter 
2.5. Natural environment


Winters are usually long, cold and dry. Summers are very short, hot, and humid.

Spring and autumn are pleasant but also short in duration.

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=> Bitis can launch the products to keep the feet warm. Because South Korea seems to
have a lot of snow, Bitis’s products can be water-proof or not be affected too much by the wet
snow.


Geographic location, natural conditions , and infrastructure:
South Korea has a very advanced and modern infrastructure, which has been
expanding since the 1960s. 

=> Bitis product design should be modern and convenient, which are suitable with young
people living in a busy world.
2.6. Technological environment
a)

The development of Internet and Ecommerce in Korea

Today, young people in Korea can shop online using laptops, mobile computers and
online shopping trends are becoming an increasingly explosive trend. Korean companies in
general and companies in the fashion and footwear industry in particular are making efforts to
make use of the internet to make their online business grow rapidly. E-commerce has changed
the way Korean consumers think about shopping: it's online instead of shopping the traditional

way. It is an exciting new experience that many people want to go through, this activity is
growing by convenience and many other benefits. People even compare online shopping in
Korea to develop faster than a mouse click.

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South Korea's statistics agency said that the total online shopping value in November in
South Korea reached 10.62 trillion won (equivalent to 9.5 billion USD, up 22.1% compared to
the previous year). with the same period last year.

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This is also the highest total revenue since January 2001 when South Korea's statistics
agency began collecting and statistics on e-commerce related numbers.
Online sales in kimchi origin increased by 22.7% year on year to 1.68 trillion won. Sales
of online fashion items alone soared 10.4% to 1.45 trillion won in November. Meanwhile,
online food and beverage sales rose 32.3%. 911.4 billion won E-commerce transactions via
smartphones, tablets and other mobile devices have increased by 28% over the same period
last year.
 

Korea has the world's leading booming e-commerce market thanks to the highest percentage
of people using smartphones.
Korea is one of the countries with the world's leading booming e-commerce market
thanks to the highest percentage of people using smartphones. Currently, the number of

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smartphones in South Korea amounted to 50.5 million last October, compared with 48.3
million a year earlier.

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Kimchi Country is also a leader in new technology trends including 5G network.
According to market research firm Strategy Analytics, the adoption rate of 5G smartphones in
Korea is expected to reach 5.5% by 2019 and 10.9% by 2020. This is the highest number in all
countries. global. By 2021, the 5G smartphone acceptance rate is expected to start to increase
sharply in major countries, with about 27% in the US, followed by 21.3% in South Korea,
19.7% in Japan and 8.5% in China.
 

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b)

Biti’s

Group 8

The impacts of technological factors on Biti’s company

- Help Biti's company collect a lot of information:
 By participating in the global electronic environment, businesses have access to a huge
and diverse source of information; thereby having the opportunity to select the most
appropriate information for their business activities and thereby reducing production, sales,
marketing and transaction costs.
E-commerce reduces production costs, first of all office costs. Paperless offices occupy a
much smaller area, and the cost of searching and transferring documents decreases many times
(of which printing is virtually eliminated).

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E-commerce helps to lower sales and marketing costs. By means of Internet / Web, a
salesperson can deal with a lot of customers, the electronic catalog on the Web is much richer
and more frequently updated than the print catalog with a limited framework and always
always outdated.
E-commerce via Internet / Web helps consumers and businesses to significantly reduce
transaction time and costs (transactions are understood as from the advertising process, initial
contact, order transaction, payment transaction). . Internet transaction time is only equal to 7%
of fax transactions, and is equal to about 0.5 thousand of transaction time via express mail, the

cost of electronic payment via Internet is only 10% to 20% normal payment fee.
Of the reductions, the time factor is the most significant, as the rapidity of making
commodity information accessible to consumers (without intermediaries) is vital for trade and
competition. trade paintings. In addition, the rapid transaction of market quickly captures the
needs of the market, which is especially meaningful for the sports shoes business, which is a
fast changing trend especially for youth.
- Increase customer service quality of Biti’s:
Biti’s with e-commerce can quickly provide customers with catalogs, brochures, price
lists of each footwear product, the contract almost immediately. In addition, with its sales
website, Biti’s can create conditions for customers to have the opportunity to choose the right
product with full information without having to go to the dealer or the store. After the sale, the
supplier uses the utilities of EC to deploy customer care services quickly and immediately.
Customer support for using products and services can be conducted online to help reduce the
time and cost of both businesses and customers.
 
- Increase sales of Biti’s:
Because one of the characteristics of e-commerce is the borderless market, this gives Biti's
company the opportunity to advertise information about its products and services to markets

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across the provinces of Korea, thereby help increase the number of customers and increase
sales.
In addition, with effective utilities and tools of e-commerce, businesses will no longer
passively wait for customers to come but will be proactive in finding customers thereby
contributing to accelerating sales of businesses. .
- Creating a competitive advantage of Biti’s company:
Without e-commerce, medium-sized businesses will have difficulty competing with big
fashion brands in the world (such as Adidas, Nike, ...) because of the gap in capital, market,
human resources, and customer. When e-commerce applications, this gap will be narrowed
because Biti’s company itself can cut many costs. Moreover, with the advantage of online
sales, Biti’s will create its own identity about a new business method which is different from
traditional business. It is these things that will create a competitive advantage for businesses,
help businesses compete with their competitors.
So today, Biti’s with e-commerce has an intimate relationship related to the survival of
the business. However, to apply e-commerce for the long-term development of Biti’s, it is
necessary to consider and pay attention to many factors and have an appropriate roadmap for
the path of brand development and market expansion in Korea.

3.

Competitors
3.1. Shoopen

SHOOPEN can be found almost everywhere in metropolitan cities. SHOOPEN shoes are
sold at extremely cheap prices. This brand also provides a versatile range of styles that suit
everyone: from the elderly to children. Both women and men can shop at SHOOPEN together.
You can find all kinds of shoes at SHOOPEN; you will be able to find many canvas shoes,
sports sneakers, leather dress shoes, snow boots, and many more at SHOOPEN.

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