group assignment bitis o

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LECTURER:

VÕ NGỌC HIỀN

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aspects related to their product:

- Biti's, officially known as Binh Tien Imex Corp. (Biti's Group), is a prominentVietnamese footwear and fashion brand with a rich history and a strong presence in themarket.

- Headquarters: 22 Lý Chiêu Hoàng - Phường 10 - Quận 6 - TP. Hồ Chí Minh.1.1. History:

- Biti's was founded in 1982 by Vuu Khai Thanh, . The name "Biti's" is derived from"Binh Tien," which signifies the company's commitment to being a trustworthy andquality-focused brand.

- In 1982, Mr. and Mrs. Vuu Khai Thanh founded Van Thanh, a footwear company, with20 workers. In 1986, they bought the Binh Tien complex and merged it to create BinhTien Rubber Cooperative, specializing in high-quality shoes and boots. In 1990, theyintroduced EVA technology from Taiwan, resulting in the production of high-qualityEVA foam sandals. In 1992, the company changed its name to Biti's.

- Biti's has earned a solid reputation in the Vietnamese footwear market by focusing onquality, affordability, innovation, and style. As a result, it has become a household nameand a preferred choice for footwear among consumers in Vietnam and neighboringregions.

1.2. Product:

- Biti's - launched in 1992, it is very diverse in products and designs including sandals,flip-flops, sneakers,… but when Biti’s Hunter was appeared became a massive successin the shoe industry due to its lightweight design, standard quality, and eye-catchingdesign. This marked a significant shift in Biti's marketing strategy from traditionalmethods to digital marketing.

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analysis:1.1. Micro-environment:1.1.1. Company’s suppliers:

- Imports 60% raw materials from abroad, the rest is domestic: mesh straps, PU fabric,...depends on suppliers and raw material prices.

- Also cooperates with foreign suppliers: Wei Tai, Tae Sung,a few companies fromFrance.

1.1.2. Resellers:

Biti's product distribution system:

- 7 branch centers: Lao Cai, North, Quang Ninh, Central Highlands, Da Nang, West, South.- 1,500 retail distribution intermediaries.

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- Manufacturing and Supply Chain: Efficient resource use, waste management, andsustainable sourcing practices are vital for reducing environmental impact.

- Sustainability Initiatives: Biti's can use eco-friendly materials, sustainable packaging,and measures to reduce its carbon footprint.

- Physical Locations: Energy-efficient store locations and sustainable store design cancontribute to a smaller environmental footprint.

- Consumer Perception and Demand: Biti's can attract eco-conscious consumers byemphasizing sustainability and product durability.

- Regulatory Compliance: Adherence to environmental laws and eco-labeling standards iscrucial.

1.2.2. Political & legal environment:

- Enterprises always understand the correct way to do business and supplement the law.- Bitis has signed labor contracts for employees since the first days of establishment.- Vietnamese people are easily influenced by brands and products advertised with a

patriotic spirit.

- The government encourages "Vietnamese people to use Vietnamese goods".- Brands that know how to take advantage of that will bring significant success.1.2.3. Economic environment:

- GDP and Economic Growth: Biti's is influenced by the overall economic health ofVietnam. Economic growth and increasing GDP can boost consumer spending and, inturn, demand for fashion and footwear products.

- Income Levels: As disposable incomes rise, consumers may be more willing to invest inquality and fashionable footwear. Biti's may benefit from an expanding middle-classsegment.

1.2.4. Socio-cultural & demographic:1.2.4.1. SOCIO-CULTURAL:

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- Fashion Trends: Biti's must stay attuned to changing fashion preferences and culturaltrends. Vietnam's rapidly evolving fashion landscape impacts the design and style of itsproducts.

- Consumer Lifestyles: Understanding how consumer lifestyles and preferences change,including a growing interest in fitness and sports, helps Biti's tailor its product range.1.2.4.2. DEMOGRAPHIC:

- Biti's Hunter's target clients are both males and women.

- Biti's Hunter's target clients are centered in two major cities (Ho Chi Minh City andHanoi).

- Teenagers (13 - 18 years old) and Young Adults (18 - 24 years old) are Biti's Hunter'starget clientele.

- Income: The income groups of Biti's Hunter's target clients are Group A (15 - 150million VND) and Group B (7.5 - 15 million VND).

- Biti's Hunter's target clients are single young individuals at the beginning of their familylife cycle.

- Biti's Hunter's target clients are primarily from primary schools, secondary schools, highschools, colleges, and universities.

1.2.5. Technological factors:

- E-commerce and Digital Platforms: The growth of e-commerce in Vietnam providesBiti's with opportunities to expand its online presence and reach a wider customer base.Leveraging technology for online sales and marketing is vital.

- Innovations in Footwear: Keeping pace with technological advancements in footweardesign, materials, and manufacturing processes is crucial for Biti's to maintain productquality and innovation.

2. Target customers and Positioning, i.e., consumer behavior analysis and how thecompany executes:

2.1. Target Customers:

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old. These are young customers who like to explore, experience, express and conquer.2.1.2. Fashion-Forward Shoppers: Biti's Hunter, a shoe company catering to the affordableincome group of Vietnamese people, offers comfortable materials, modern styles, and ayouthful, healthy style. The slogan "Nâng niu bàn chân Việt" resonates with manygenerations of Vietnamese people, promoting their individuality and dynamic lifestyle.2.1.3. Sports Enthusiasts: Biti's offers a variety of sports shoes, making it appealing to peoplewho participate in sports and live active lifestyles.

2.1.4. Younger Generation: With its attractive and inventive footwear designs, the companycaters to the younger market, which includes teenagers and young adults.

2.1.5. Budget-Conscious Shoppers: Biti's sells products at a variety of pricing points, makingit appealing to customers who are on a tight budget and looking for economical footwearsolutions.

2.1.6. Families: Biti's offers footwear for the entire family, including children's, men's, andwomen's footwear, making it an ideal choice for family shopping.

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2.3.1. Product Diversification: Bitis continually diversifies its product range to offer a widevariety of footwear options, catering to different tastes and preferences.

2.3.2. Marketing and Promotion: The company uses various marketing channels, includingsocial media, advertising, and collaborations with influencers to promote its products andengage with its target audience.

2.3.3. Retail Presence: Bitis has an extensive network of retail stores and outlets acrossVietnam, enhancing its accessibility to customers.

2.3.4. E-commerce: The official website and partnerships with popular e-commerce platformsenable customers to conveniently purchase Bitis products online.

2.3.5. Customer Engagement: Bitis engages with its customers through feedback collection,loyalty programs, and excellent customer service

2.3.6. Innovation: Bitis invests in product innovation to ensure it stays aligned with changingconsumer preferences and technology advancements.

3. Segmentation/ Differentiation:3.1. Segmentation:

Biti's market segmentation strategy effectively targets diverse consumer groups:- Demographic: Caters to all ages and genders.

- Psychographic: Focuses on different lifestyles and fashion preferences.- Behavioral: Addresses price sensitivity and specific usage occasions.- Geographic: Adapts to regional preferences.

- Family: Offers footwear for the entire family.

- Online/Offline: Engages both in-store and online shoppers.- Seasonal: Tailors products for seasonal needs.

=> Biti's tailors its offerings to meet the unique needs of each group, expanding its reach andappeal in the competitive footwear market.

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3.2. Differentiation:Biti's differentiates itself from its competitors in a number of ways,including:Focus on quality:

- Biti's uses high-quality materials and production processes to produce footwear. Thisresults in shoes that are durable, comfortable and stylish.

- Affordable price: Biti's shoes have competitive prices so they can reach a wide range ofconsumers.

- Strong brand identity: Biti's has a strong brand identity rooted in Vietnamese culture andvalues. This resonates with consumers who are looking for a brand that is authentic andrepresents their values.

- Attractive marketing campaigns: Biti's marketing campaigns are often creative, attractiveand resonate with the target market.

3.3. Targeting:

3.3.1. Demographic Targeting:

- Age: Biti's targets a wide age range, from children to adults. For children, it offerscomfortable and durable shoes, while for teenagers and young adults, it focuses onfashionable and trendy footwear.

- Gender: Biti's caters to both men and women. It offers gender-specific products designedto meet the unique style and comfort preferences of each group.

3.3.2. Psychographic Targeting:

- Lifestyle and Fashion Preferences: Biti's appeals to fashion-forward consumers who seekstylish and trendy footwear. The brand positions itself as a choice for those who valueaesthetics and wish to stay in vogue.

- Sports Enthusiasts: Biti's targets consumers with an active lifestyle by offering sports andathletic footwear. This is an ideal choice for individuals engaged in sports and outdooractivities.

3.3.3. Behavioral Targeting:

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- Price Sensitivity: Biti's caters to price-conscious consumers. It offers products at variousprice points, making it accessible to consumers with different budgets.

- Usage and Occasion: Biti's provides a range of footwear suitable for various occasions,from casual wear to sports and outdoor activities. This targeting approach aligns withspecific consumer needs and usage patterns.

3.3.4. Geographic Targeting:

- Domestic Market: Biti's primarily focuses on the Vietnamese market, leveraging its localknowledge to understand consumer preferences and cultural trends.

3.3.5. Family and Household Targeting:

- Families: Biti's caters to families by offering a variety of footwear options for differentfamily members. This approach simplifies family shopping and ensures that everyone'sneeds are met.

3.3.6. Online and Offline Targeting:

- Biti's targets customers through both physical retail stores and online platforms. Thisomnichannel approach caters to consumers who prefer in-store shopping and those whofavor online purchasing. Biti's effectively targets these segments by adapting its productrange, pricing, marketing messages, and distribution channels to meet the unique needsand preferences of each group. This detailed market targeting strategy allows Biti's toserve a broad customer base and remain competitive in the Vietnamese footwear market.4. Analysis of the marketing mix, i.e., 4P (Price/Product/Promotion/Place)

4.1. Product:

- Bitis primarily focuses on producing and marketing high-quality sneakers and athleticfootwear. They offer a wide range of products with different styles, colors, and designs tocater to various customer preferences. Bitis emphasizes innovation and uses advancedtechnologies in their products to ensure comfort, durability, and performance.4.2. Price:

- Bitis positions itself as a premium brand and sets its prices accordingly. Their pricing

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strategy is based on the value and quality they offer to their customers. While theirproducts are priced higher compared to some competitors, Bitis justifies this byhighlighting the use of premium materials, craftsmanship, and cutting-edge technology.

4.3. Place:

- Bitis operates through a combination of physical stores and an online presence. Theyhave flagship stores in major cities, allowing customers to experience the brand and tryout the products before making a purchase. Additionally, Bitis has a user-friendly e-commerce website that enables customers to conveniently shop online and have theirproducts delivered to their doorstep.

4.4. Promotion:

- Bitis employs various promotional strategies to create awareness and attract customers.They collaborate with popular athletes and influencers to endorse their products andincrease brand visibility. Bitis also engages in social media marketing, utilizing platformslike Instagram and Facebook to showcase their products, share customer testimonials,and run targeted advertising campaigns. They also participate in sports events andsponsor teams to enhance their brand image and connect with their target audience.=> "Bitis" is a Vietnamese footwear and fashion brand known for its sneakers, shoes, andrelated products. When analyzing the marketing mix (4Ps: Product, Price, Place, Promotion)for Bitis, we can get a better understanding of how the company positions and markets itsproducts.

4.5. Biti's strategy follows the AIDA model:4.5.1. Attention:

- To attract customer attention to increase brand recognition, Biti's has cooperated withcelebrities to launch Viral Video - an outstanding method in marketing strategy. The MV"Lac Troi by Son Tung MTP and the MV "Going to Return" by Soobin Hoang Son are

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viral videos that have attracted tens of millions of views and caused fever in the onlinecommunity.

4.5.4. Action:

- To encourage customers to take action and purchase products, Biti's marketing strategy isto offer attractive promotions and discounts. Biti's focus on flexible consumptionstimulation programs, such as discounts on the following occasions: April 30 and May 1,September 2, the first day of school, Christmas, and New Year's Eve.

5. Marketing plan for the next year:

- The Vietnamese footwear market is growing rapidly, with export turnover reaching$28.9 billion in 2022. Major export markets include the US, EU, Japan, South Korea, andChina. To compete, Vietnamese enterprises focus on innovation, product qualityimprovement, and customer service. Key trends include sports and fashion footwear,

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sustainable footwear, and high-tech footwear. Forecasts suggest growth at 10% per year,offering opportunities for international expansion.

Situation Analysis:

- Biti’s is a leading footwear brand in VietNam, known for its high-quality products andaffordable prices. The company has a strong presence in the domestic market, with anetwork of over 4,000 retail outlets. Biti’s also exports its products to over 50 countriesworldwide.

- In recent years, Biti’s has faced increasing competition from both domestic andinternational brands. However, the company has maintained its market share by focusingon innovation and product development. Biti’s has also been successful in building astrong brand image through its marketing campaigns.

Target Audience:

- Biti’s target audience is young people in VietNam, aged between 18 and 30. This groupof consumers is fashion-conscious and has a high demand for high-quality products.They are also active users of social media and digital platforms.

- Strategies and tactics:

- Conduct market research to identify the needs and wants of the target audience.- Develop a new product line that meets the needs of the target audience.

- Launch a marketing plan on digital and social media to promote the new product line.Specific activities:

- Conduct customer surveys to identify the needs and wants of the target audience.

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