MARKETING STRATEGIC PLANNING
FOR SHOLEGA BRAND OF HAIPHONG
FOOTWEAR COMPANY
Introduction
In Economic World Globalization and Achievements, Human – Being have strongly
improved and achieved to match developing chains of Socities and Economic Targets.
Therefore, the needs of improved living standard increasingly, such as: entertainments,
physical cares, that are highly concerned in this modern and busy life. To meet the
Human –Being demands, Haiphong Footwear Compnay has upgraded their qualified
footwear products, SHOLEGA brand with high quality, nice samples, reasonable
prices with medium class of Vietnam Customers.
Our group has choosen this topic to build our Marketing Strategic Plannings for
these products on Vietnam Market to introduce our product’s quality, healthy funtions
which are conquering Vietnam high quality footwear markets.
Because of limited time schedules and researching documents, we could leave our
mistakes in this reasearching report. Do hope to receive lecturer’s sympathies and
inducts to help us complete our managing experiences and Marketing knowledge.
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PART 1. ENTERPRISE INTRODUCTIONS
Confident steps to the top
HAIPHONG FOOTWEAR COMPANY
Trade Mark: SHOLEGA
Address: 276 Hang Kenh, Phuong Hang Kenh - Quan Le Chan - T.P Hai Phong
Tel: 031 3940914; Fax: 031. 3940716
Email:
Website: www.sholega.com
Established date: 19/5/1959
Hai Phong Footwear Company is a state-owned enterprises have traditionally been 54
years of production, imported and exported footwear, leather goods, leather, cloth,
leather processing and products, with leather and other raw materials, auxiliary
materials. - Garment technology. - Education, training footwear, garments, fashion
design templates and other popular craft. - Production of packaging, general printing. Import and export of materials, supplies, equipment and spare parts, construction
materials, consumer goods industry and other commodities.- Export freight services
and logistics. - Building industry and civil works, civil works and infrastructure,
housing development and real estate business and construction materials. business –
Trading and services. The organizational structure of the company now has 9 rooms,
original and professional factory 08 joint ventures and outsourcing manufacturing
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partners in Taiwan and Japan, exports each year from 4-5 million kinds of products, to
countries in the EU and U.S..
PART 2. Marketing Strategies for Footwear Products, SHOLEGA brands of
Haipong Footwear Company
I . Product’ s Name
- SHOLEGA.PASS, Sport Footwear
II. Target Markets and Customers
1. Analysis of Target Markets
1.1 Consumption Volume:
After differences of Global Economic Crisis, the World Footwear Markets have
overcome. Value of Consumption’s Volume has been sharply increased, through these
figures:
+
Orders between firms increased significantly;
+
The market Demands in Footwear and Fashion sharply increased,
matched with several price levels of customer demands;
+ Industrial Brand is significantly increased;
+
Producer’s Markets are widely expanded;
The speading powers from large markets had entered to small retailed markets
creating a major development in the domestic and abroad competitive markets
1.2. Footwear Industrial Trends
Several trends of footwear products that accessing customers:
+
Renewed trends:
Sports shoes products are always accompanied by the more fashionable and
technical characteristics for each specific sport disciplines.
+
Daily life trends:
The images of the famous sports athletes encourage participation in the sport and the
aggressive advertising of the leading brands have affected shopping habits of
consumers.
+
Market Segment Trends:
Sports footwear segment is dominated by the kind of sports shoes used for
regular purposes, used for hiking or sports shoes with high technical characteristics.
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+ Product Trends:
Trends in the use of footwear from formal to relaxed, easy going and continue to
increase in the consumer world. Weight sandals and lighter shoes become more
comfortable and go lighter and brighter colors with black or brown only.
1.3. Market Segment
-
Luxury Consumption Gorup: They usualy buy in store exclusive, genuine, high
price, product quality, luxury design.
-
Active consumption Group: They usually buy in store, dealer, average price,
and fashionable style.
-
Medium Stylish Consumption: They usually buy at shops, agencies, traditional
markets with low prices and simple requirements of styles and designed
appearances.
1.4. Target Markets:
The market segment with customer groups of active life style and medium income
gained.
2. Target Customer’s Analysis:
2.1. Demands/Human – Being Need Evaluations
- Beauty products, fashion, quality, affordable suit youthful dynamic style of youth.
- Diversified product many kinds, many colors with different sizes to suit each
audience.
- In addition to, the normal functions dedicated to the technologies associated with the
auxiliary.
2.2. Product’ Attractive Components:
-
The soles have high elasticity that does not affect the foot, leg joints when
moving.
-
Cushioning, leather massage classes outside the convex and concave design
flexibility, hugging both legs but still comfortable to make the move and the
maximum limit of common injuries.
-
Design youthful, elegant, subtle lines brought me to enjoy the intangible value
of the product.
2.3.Experienced Benefits:
4
-
Good quality and dynamic design, many special colors such as pure white soft,
high elasticity, can be cleaned with water, can be used in the case of wet weather
event.
-
Products have many different types of sizes, affordable prices which are
suitable for all consumers.
-
Lightweight, easy to use, convenient, fashionable products that suit the young
people.
2.4.Consumption Decisional Behaviors:
-
Products are displayed and arranged according to a certain style, is placed
in the eye-catching shelf.
-
To be sold in the supermarkets, fashion shops, shops, business center,
exclusive agencies.
2.5.Spending Budgets
In medium accasion, monthly there is about 1-1,5 bils VND paid for one individual
needs. In which, there estimated twice times for their footwear purchasing per year
with 300.000- 600.000 VND of potiential customers. Therefore, an average
consumption is about 600.000-1.200.000 VND for footwear purchasing.
6.Customer’s excepted Marketing Organizations:
There are many marketing forms used in branding and product promotion strategy and
customers who care more advertising on TV, such as the channel VTV1 & VTV3, the
electronic message, such as:tuoitre online, buy & sam.com, thoibaokinhte, ... In
addition, it also has other ways of marketing directly to customers.
7. Product’ Beliefs:
Customers who always desire to be servied with high qualified products as well as
deversitied styles, reasonable prices and healthily functional products. Nowadays,
there avalably upgrade products that meet these above requirements so it would be
more competitive with Sholega in footwear markets.
8. Customer, several evaluations:
-
Sholega’s target customers whose belong mostly in active living style with
medium aged at under 35 old.
-
Customers are students, people who have physical life, excercises and habits.
Usually jointing into Gym Clubs, Sport teams and physical groups.
5
-
Most of customers who gained medium income that managed enough their
monthly spending targets.
3. Enterprise ‘s current Situation Analysises:
Organizational outstanding benefits
Organizational Weakness
Products
- Quality
There
have
the
toughness,
good Shoes’ sole is slightly rough
strength, smooth legs, buffer pads and heavy.
absorb moisture, heating presses soles
- Packing and
that should be very sure.
Styles
There
have
the
trendy,
stylish, Not many new and varied
powerful sporty style that fits the designs.
slender shapes of the shoes, along with No improvement in their own
rising shoe combined with the stability methods.
of the shoes give customers extremely
Prices
comfortable feeling.
Suitable with medium
Distribution
income’s customers.
There are extensive
Ad &
channels in the market.
distribution channel.
Extensive communication channels, The ad is not totally deep
Promotions
regular promotions.
and
high Not having served the low-
income customers.
distribution Untapped potential of each
sensity
that
stimulates
customer spirits
Techs
Modern techs that apply the advanced
equipments and tech requirements in
Brand
the world.
Bearing in customer’s deep minds for a
Management
long time.
Being leading industrial experts, with No
talented staff and have creative works.
management
subordinates
to
life's
motivate
employees in their work.
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4. Competitive Rivals’ Analysises
Organization
Biti’s
Well durable, surely
Products
- Quality
Vento
Well durable, be sure to
light and supple
Well durable with
adapt in all environmental
good quality and
every occasions that
conditions, whether
high load-carrying
fit in the natural
imported from the best
capacity.
environment gently.
sources in the water, easy to
clean, good strength.
- Packing &
Styles
With young, dynamic, soft
Elegant and chic,
colors, stylist
ladylike styles,
Sample code is not
various designs.
diverse and rich,
elegant contours and
Prices
Distribution
Highly Medium
Dealers, shops,
High
supermarkets, network, trade
Ad &
Promotions
politeness.
Medium
Supermarkets, fairs, Shoppings, business
exclusive agents.
centers.
Media channels,
Televisions, flyers,
television, radio,
such as: television,
stickers, posters.
newspapers, internet
newspapers and
Performances with regular
internet.
Frequency
promotions.
Promotions often.
performances with
center.
Through media, such as:
fewer promotion
Techs
Brands
Management
Up-dated
Leading
Experienced
Up-dated
Leading
Experienced
III. SHOLEGA POSITIONING:
The Usages and benefits of the product:
7
campaigns.
Outstanding
Professional
Medium
-
Sporty styling, dynamic, suitable for all types of customers want to express their
own personality.
-
Applying advanced technology with the aim of protecting their customers' health.
-
Made from the finest ingredients, in line with international standards.
Products SHOLEGA.PASS shoes are differences, such as utility and benefit to our
positioning on shoes SHOLEGA.PASS:
"Being the product brand that protects the health, time challenge endurances and
space, helping consumers have the best experiences with affordable and appropriate."
IV. EVALUATIONS OF REVENUES AND INCOMES
1. Market Segments and Target Market Choice Analisises:
1. Market Segment:
Life Style
Luxury
Good quality product,
Dynamic
Product quality
Simple
Good quality,
durable, beautiful,
durable styling is
durable, simple
sophisticated designs
youthful, energetic,
sensitive designs.
Researching
and luxurious.
colorful, rich
Benefits
Demonstrating
variety of species
individual style and
suitable for young
class.
people.
Supermarket,
Supermarkets,
Markets,
exclusive agents,
shops, exclusive
supermarkets, shops
commercial centers.
agent.
and dealers.
Buy low-frequency
Average purchasing
high purchasing
frequency
Medium
frequency
Low
Customer
Behaviors
Loyal Volume
Incomes
Brands
Market Shares
Quitely high
Over medium,
Medium, under
Nike, Adidas, Puma
medium
Sholega, Biti’s
medium
Vento
45%
15%
10%
high
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2. Target Market, Choosing Analysing:
Customer Groups
Luxury
Dynamic
Small percentage
Large proportion
A higher
Increased growth, small
Growth, large volume
percentage
Attractive
volume
Competing with the
Slow growth
Competing with products Compete with
Coponents
leading brands.
inferior position.
cheap products of
Technology in the
Modern technology
average quality.
saturation stage and
available, easy to price
Low up date
Growth & Size
research should not be able stability, high
Capacities and
Targets
Simple
technology.
to compete in this
competitiveness.
segment.
Investing all resources for
Sufficient resources to
Not eligible to
R & D, not enough
acquire middle-income
meet the target of
resources for this client
market pretty, get
attracting
group.
resources invested in R
investment
& D activities.
resources for R &
D activities.
Market Targeted
3. Marketing Segment Targets:
Terms
Market Shares
Dynamic Market Segment
Targets
20 %
Market Segment
Thu nhập trung bình và khá thuộc nhóm đối
Communication
tượng năng động.
TV: VTV1 & VTV3. THP
channels
Newspaper: Marketing and family, sports,
youth, youth ...
Doanh số
Internet: mua&sam.com, 123mua.com,...
Marketing and family, sports, youth,
youth ...
4. Product Demand Forcasting
• Domestic Footwear Market.
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Facing changing trends of footwear industry in the region and the world, leather
industry Vietnam continuous development, innovation, intensive investment for export
and domestic consumption. In recent years, many companies produce new footwear
business was established, the investment in new businesses, expand production and
constantly growing both in width and depth, especially in the business leading the
footwear industry in Vietnam such as Vento, Biti's ... has developed a powerful, they
have a team of skilled workers machinery and modern style to work better, so they're
going to dominate the domestic market. The product development of domestic
companies with foreign products imported into Vietnam market (with different paths)
has created a diverse, rich product on the market footwear and creating fierce
competition in the market.
Vietnam market with over 80 millions population, of which up to 60% of the
population of working age children (demographic), if only the number of shoes for the
youth, the number of annual consumption is 48 to 72 million pairs (if the user average
1 1 to 1.5 pairs / year).
With this demand shows the demand of this market can be up to 80 to 120
million pairs sold each year. Meanwhile, the current consumption in this market now
about 65 million pairs of new (equivalent to 65% of needs), of which only about 25
million pairs of the product by the domestic business real production, the rest is
imported illegally occupied.
To see the actual situation, we can see the data table below (surveys of Footwear
Association).
Year
Total
Total Domestic
Consumption (1000pair) Consumption ( 1000pair)
2011
2012
2013
53.800
58.600
65.000
18.057
21.645
25.000
Looking at the above table shows annual sales volume to grow at an average rate of
10.8% of consumption by the manufacturing companies increasingly tend to rise faster
(with growth of 27% / year). With this growth in forecast 2016 production of shoes by
the domestic producers supply in the domestic market and the proportion accounted
for the company's market:
Table of forcasting Marketing Demands
10
Year
Target
Total Demands
2014
2015
2016
( 1000 pair)
( 1000 pair)
( 1000 pair )
72200
79781
88397
144000
159562
176794
Although the domestic market, enterprises have the ability, the capacity to produce
Market Share ( 20%)
large quantities to meet demand, but do not actually occupy the market and meet the
needs of even in its domestic market, the main reason is due to the solvency of the
people, the domestic producers have not focused on developing the domestic market,
the production cost of enterprises higher domestic...
According to the recent reports of the Vietnam Leather and Footwear Association, the
2016, the only business in the country to supply about 50% of the actual needs of the
entire domestic shoes market. Thus, the space of the domestic market and the future is
now very large, and must be exploited and satisfy (at risk of being overwhelmed
import market. As such, the current import market accounting more than 40% of the
domestic market).
5. Expected Revenue and Income
Table of projected sales, costs, profits based on sales forecast of 10,000 pairs / month
and total investment of 20 billions.
Year
Target
Expected Revenue
Expected Expense (
2014
2015
2016
( VND, bils)
( VND, bils )
( VND, bils )
36
39,6
43,5
21,6
23,7
26,1
14,4
15,9
17,4
60% revenue)
Expected Income
6. Capital Controls
With the Break – even equation, below:
Break-even point= Fixed costs/(1-Variable costs)= Break-even Sales
= 20000000000đ/180000đ =111.111 products
V. MIXED MARKETING DETAILED PLANS
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•
Along with SHOLEGA brand, product line strategy SHOLEGA.PASS use
"market leader" sneakers for dynamic objects above average income.
•
Based on the following basis:
•
PASS product line is high quality, applying modern technology with affordable
prices of the majority of the people of Vietnam.
•
Designs fashion, elegance is enhanced and upgraded regularly in line with
today's dynamic market.
•
Sponsored the brand's 54 years of professional production of sports shoes of
Hai Phong Footwear Company.
1. Product
Name: SHOLEGA.PASS
Dêp benefits: Self characteristics and dynamic appearences
Expected targets: Satisfy the desire for good quality shoes, dynamic designs at the
right price.
The meaning of SHOLEGA.PASS, following:
+ PASS is SHOLEGA new product lines to provide high-quality products to market
dynamics with incomes above the average in the domestic market.
+ As the compound word: POWER-ACTIVE-STRONG-SPORT.
+ PASS meaning: "Overcome challenging matter who you are."
+ PASS tonal readability closer to Vietnamese accent.
+ PASS converge all the spiritual elements that bring products to customers.
+ PASS wish everyone in the audience to join them in social dynamic, healthy,
thriving and overcome all challenges.
Products Characteristics:
+
Structures: sawn lengthwise, PVC material, suede, durable, supple, cool,
flexible outer shell is a three-dimensional sphere.
+
Its product Natures: lightweight, durable, good moisture absorption,
flexibility in use.
+
Designed Style: powerful, dynamic, elegant, youthful trends with more
colors and variety of shapes, continuous improvement.
+
Functions: used in sport activities, fashion in streetwear.
+
Suitable volume: Consistent with all of the objects in the target market.
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+
Product
durability:
highly
durable,
suitable
for
all
operating
environments.
2. Price
Objective: Deeply Access
Fully capture and manage active sports shoes markets for middle-income class and
above.
Adjustment: The first step will make the average price to match the chosen target
market, then the price will be adjusted depending on business performance, the
elasticity of the market in the near future.
The price ranged: 300000-600000 VND / pair
3. Place, distribution Channels
Producers
Business Agencies
Importers and
Retailers
Sale Agencies
Large Retailers
Super
Markets
Sport
Stores
Franshing
Shops
Footwear
Shops
Business
organizations
Internet
Footwear Shops
Customers
Product Distribution are delivered and applied to each business terms and
Be adjusted depending on the business seasons, by the time sensitive events to suit
customer needs.
4. Advertising and Promotion Campaigns
Advertising Schedule :
Through Advertising Channels
-
TV:
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+ VTV1 alternating at 8:30 in the primetime drama.
+ VTV3 at 7:30 before the sports program.
+ THP at 7:45 before the program The Hai Phong
- Radio:
+ FM broadcast at 10:30 on the show sporting events.
- Newspaper:
+ Sports, Marketing family, youth, youth.
- Internet:
+ Site Sholega.com, tuoitre online, vatgia.com, buy & ban.com, 123 mua.com.
- Letter to the organization offers.
- Financial support for sports programs on television like Sports 360
- Invite a spokesperson for the product (invite promising young players in the domestic
sport markets)
Promotion Campaigns:
-
The sweepstakes when buying products.
-
Sales BONUS: All, Hats, T-Shirts.
-
Discounts for buyers of the major holidays.
* Marketing budgets :
The company expects to spend budgets for marketing activities is: 10% of total
revenue.
CONCLUSION
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In the market economic context, Marketing Strategies concerned the important
strategies that could not lack from any organizations during their operating and
developing processes. With the requirements that evaluated highly increased with
qualified products and satisfied supplies, customers always feel comportable and loyal
with enterprise products and Sholega brand. To get these above outstanding benefits,
enterprise not only concerns about qualitified products but also its strategic marketing
purposes. Sport Footwear SHOLEGA is kind of dynamic, lightweight, durable athletic
shoes that fit is evaluated in accordance with the athletes, sport, more affordable prices
are also consistent with the Viet Nam Consumption Market. However, to be able to
dominate the markets, enterprise needs a marketing strategy that is reasonable to
attract new customers. To make a successful marketing strategy, need effective
collaboration among the members of the Marketing and Market Management. They
must correctly identify the target market and offer appropriate products in design,
price, promotional and reasonable advertising programances.
Within this report, IV Group has concentrated on plan “Marketing Strategic
Planning for Sholega Brand of Haiphong Footwear Company” based on theorical
knowledge that we have received from sybject and lecturer. During our research, we
could get our mistakes of knowledge and supporting ideas, thus we would like to
receive lecturer enthusiasm and helps. And then, we would improve our knowedge and
experience helpful to our management and business. Once more time, we are grateful
to our lecturer
REFERRENCES
1. Marketing Management Stydying
2. Lectuers of “International Marketing Management ” Philip Kotler
3. Documents from Haiphong footwear Company
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