MARKETING INTERNATIONAL MKT601 FINAL ASSIGNMENT

COURSE TITLE:

MARKETING IN A GLOBAL
ENVIRONMENT

MARKETING PLAN FOR

Lecturer:

UBIS

UBIS
CONTENT
Executive summary
Introdution

COURSE CODE:
MKT
601
P a g e |CODE:
1
COURSE
MGT 601

Page
SEPTEMBER 20200
....................................................................................................... 3
....................................................................................................... 4


CONTENT

Page
Executive summary ....................................................................................................... 3
Introdution
....................................................................................................... 4
Marketing analysis
....................................................................................................... 4
Marketing objectives ....................................................................................................... 8
Marketing strategies ....................................................................................................... 9
Marketing budget
....................................................................................................... 11
Control & valuation ....................................................................................................... 12
References
....................................................................................................... 14

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I.

EXECUTIVE SUMMARY

Nike is a world leading company in the field of sports equipment and accessories however this
position is under severe competition by he competitors Adidad and Puma. As the traditional
markets such as North America, Europe is becoming cramped on the quick feet to develop and
dominate in the new markets that are vital strategy to strengthen the leading position of, and
Vietnam is one of the potential market, by:
- Vietnam is a country with a population ranking of 14th in the world, with over 92 million
people, of which less than 65 years accounted for more than 92%.
- A middle-income countries, about U.S. $ 1,540.00 / year
- A national have traditional sports

- Economic growth, high income earners among the highest in the world - this is the class
conditional demand possession of high quality designer goods.
- There is an open culture, popular high-quality foreign goods.
- With favorable geographical location and preferential policies for foreign investors.
- As one of the countries with technical and production capacity world's largest shoe.
Marketing strategy:
- Select each of the footwear business with reputable co-production, the finished product in
athletic shoes and sports apparel products.
- Object target customers are young people, with incomes> 9,000 USD / year in the
country and exported to other markets around the world
- Distribution: Found stores selling products in the largest commercial center in TPHM, Ha
Noi, Da Nang and Can Tho as Diamon, Pakson, Vincom, Trang Tien for sale in the
country and the warehouse on world …
- randing to finance sports athletes have famous, such as ethical: Nguyen Tien Minh badminton racket international level, Le Quang Liem - chess players and chess world
class, team Vietnam U19 ball - the team is well trained, and technically capable of
bringing glory to the football through Vietnam.
- Solution Value (CPV): create an online community Nike.
Financial Goals:
- Export 158 million pairs of shoes in 2014.
- Domestic consumption of 2 million pairs of shoes in 2014.

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II.

INTRODUCTION

Nike is a multinational company based in the U.S.. Business activities are footwear and sports
equipment. Nike is the most country in the world and is planning to enter the market of

Vietnam's 90 million people.
Revenue and Fortune 500 ranking of Nike from 2008-2012 as follows:
Items
2008
Revenue
16,326
Ranking
153
Source: money.cnn.com

2009
18,627
136

2010
19,176
124

2011
19,014
135

2012
20,862
136

The products that Nike are trading as follows:
Clothing and accessories:

Footwear

The other sports equipment

Source: google.com.vn/images.
Nike products that want to invest in Vietnam's major footwear and sports apparel products.
III.

MARKET ANALYSIS (the approach: from close to far, from outside to inside, from the
macro to the micro)
1. Vietnam PEST Analysis
- Political & Legal Environment
Vietnam is a country with a stable political regime: from 04/30/1975 to now, Vietnam
Communist Party is the only party leader and through. Therefore, no riots national scale
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and no competition, between the overthrow of political parties. However, the reverse of
the one party is a lack of transparency, lack of democracy and bureaucracy, corruption.
As reported by the organization Transparency International in 2012, Vietnam ranked
123/176 countries and territories with 31/100 points, which ranks lowest in Somalia
(Figure 1).
Vietnam has a policy calling for foreign investment with attractive incentives such as
corporate income tax, import tax, rent, advertising costs proportion of the total cost ...
Details refer to1:
However, a problem that developing countries are often vulnerable to the policies and
laws have lower stability, intellectual property law is not yet operational management and
strict policies often increase minimum wage faster than planned.
-

Economic Environment

Vietnam is one of countries with economic growth rates are very impressive in Southeast
Asia and in the world at a rate of 7:23% growth from 2000 to 2010 (Figure 2).
Vietnam 2012 GDP of about 136 billion U.S. dollars, per capita income of about U.S. $
1,540.00 / year, is between countries with average incomes.
Growth millionaire Vietnam is growing rapidly, up 33% from 2011 to 2010 and the
highest in Asia2
Vietnam has favorable geographical position in international trade, as an official member
of the largest organizations in the world economy such as the WTO, ASEAN, ASEM,
APEC. As of 09/18/2013 Vietnam is a member of 63 international organizations and
relations with more than 500 non-governmental organizations worldwide3.

-

Social & Culture Environment
Vietnam Population as of May 7/2013 about 92.477 million people, ranked 14th in the
world and accounted 1:32% of the global population 4.
Vietnam Civil hobbyists prefer foreign goods, international brands of high quality
Personality of Vietnam: less conservative, flexible, open to good and new ones, as
advocated "inclusion not soluble" Passionate about fitness and sports. Thousands of
sports events held across the country each year as well the Phu Dong, the sport of the
Board, industry, trade unions, can, by the Company, to the enterprise ... for the

1

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Công ty Merrill Lynch Global Wealth Management và Hãng Tư vấn Capgemini (Mỹ) thực hiện
năm 2011.
2

3

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4

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professional and semi-professional of business disciplines such as football, martial arts,
badminton, table tennis, tennis, volleyball, golf
-

Technological Environment
System information technology, media, and technology products in Vietnam are very
popular and have a high growth rate. According to WeAreSocial research - a research
company on social media globally, Vietnam has 34% of the population equivalent of 30.8
million Internet users, 8.5 million Facebook users, more growth high and is rated as one
of the highest in the world (Figure 3).
In addition, the rate of use of television, radio of Vietnam nearly 100%, of which more
than 60% of cable and satellite television.
=> This enables the advertising, media products that are easy, quick and popular
According to Footwear Association, Vietnam currently has about 500 footwear
enterprises, contribute about 10% of annual exports and ranks 4th in the world of
footwear exports. Especially TPP Union - economic cooperation agreements associated
preparation Pacific force includes 12 countries: the U.S., Japan, Singapore, Mexico,
Astralia .. and Vietnam. Thus, if market participants in Vietnam, they will take advantage
of tax incentives, technical, personal and the system of production of footwear.

2. Potential market
- Global Market

The world population is increasing, it is expected that nine billion people in 2050,
including the percentage of income from about U.S. $ 9,000.00 / year (this is the group of
customers can use the product of) accounted for about 51.43% and this percentage is
increasing (Figure 4). So the potential of the global market in the future will be extremely
large.

-

The sports shoe market is estimated to reach 84.4 billion in 2018 dollars, of which the
Asian market accounted for more than 30% and still occupied the leading position. (as
Transparency Market Research)
China, India - these countries for the processing of shoes is steadily less attractive due to
labor costs and other costs are higher. While production costs in Vietnam are still
relatively low.
Vietnam Market
Vietnam's income increased sharply, upcoming, expected income ratio> 9,000 USD / year
accounted for over 10% of the population # nine million people. This is a fertile ground
for the development
Production capacity for sports shoes and apparel products leading, No. 4
Vietnam prepares to become a member of the TPP (Trans-Pacific Strategic Economic
Partnership Agreement), which makes the rate of the member countries will reduce the =
0, so the company in the United States, a TPP members will have many competitive
advantages over investing in non-TPP countries.
In addition, Vietnam is the work of many other large organizations around the world such
as the WTO, ASEM, BTA, AFTA ..., this is an opportunity for business environment with
international standards

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3.
-

Vietnamese Consumer Behavior
As a national sports enthusiast, so demand for footwear and sports accessories are great.
A high-quality foreign goods: best meets this standard
Taking into account the high degree of, as well as most other Asian countries, with the
largest communities: this maid pharmaceutical sale better. Specifically in the following
example: a chance to play tennis because the degree of a person buys a pair of shoes is
the first to have a good quality service feet, the second is to be able to express
themselves, play in style. At the same time, as the community members in the Assembly
should regularly sharing, exchanging, evaluating the quality ... plus the degree of it from
other members of their shopping and branded shoeswith high quality.
- Consumer Behavior Trend: - With the inherent properties as analyzed above plus incomes
lead to increasing demand for high-quality branded thrive.
4. Competition
Sports footwear and clothing products are one sector with fierce competition. In addition,
competing with products such as the international brand Adidas, Puma, Reebok, new
balance ..., also compete with domestic companies such as Bita's, Biti's, Hiep Hung,
Thien Loc. Since more than 90% market share in Vietnam sports shoe belong to the
Company in the country, the remaining 10% of the premium segment for luxury brands
like .
5. SWOT Analysis
- Strengths
Brand sports shoe and accessories world number 1: so easily attract customers
The management, supervision, operation of professional, modern this ensuring product
quality, service quality
Engage a team of highly qualified human resources: strategic planning will be correct and
appropriate.
Having long experience in multinational business => control and contingency planning

policy, exchange rates, raw materials, personel, communications and cost
-

Weaknesses
Product quality inconsistency: hardly has own factory to product quality depends largely
on the manufacturing partner. Although making process is a very rigorous quality and
direct staff supervision, but this still does not guarantee the quality of each product in the
similar distribution outlets.
Quality of service heterogeneity: by systematic business stretches worldwide, with
hundreds of thousands of personnel from many countries with different cultures and
different knowledge levels should the quality of service is the difference between the
point of business is inevitable.
Easy to catch receiving criticism from international human rights community, trade
unions, environmental management ... by just about product quality, the problem is due
to the outsourcing partner self-control: such as recruitment, welfare policy, environmental
policy, tax policy and compliance with laws ... So when there is a problem due to the
processing caused constructive criticism well, leading to image, brand also affected by

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's strategy of producing products in Vietnam only needs serving overseas in Vietnam
needs to be met from imports in 3rd countries like Thailand, Indonesia should be a very
high price, speed delayed supply of goods and high inventory costs.
-

Opportunities
Vietnam is a member of the TPP should tax import and export of raw materials in the
block = 0, so the strategies to take advantage of this is to increase investment in Vietnam;
Export production from Vietnam Men in the transshipment warehouses and demand for

the country in the cubic
Vietnam political stability should be the limit of social unrest, making long-term peace of
mind
Cost of labor, land, buildings, water and electricity in Vietnam is quite low ... So costs
will reduce, and increase efficiency.
- Threats
The high-quality materials in the industry has to import most of it will increase costs
90% share of the sports shoe are domestic companies, income is not high Vietnam must
take steps to fit firmly and pull as well as market share.
Industry of Vietnam logistic stub should export transportation is largely dependent on
foreign shipping lines => time-consuming and cost.
6. Market entry strategies
- For the production: implementation of strategic contract manufacturing, processing with
the shoe manufacturing company in Vietnam. This strategy has the following advantages:
Consistent with the overall strategy of
Infiltration and exit the market quickly
Reduce the cost of investment and financial personnel management
Take advantage of market products
There are downsides to the analysis of the weaknesses in the SWOT matrix
- For the local business market and product quality control: Establishment of company
100% with the following functions:
Vietnam Market Research
Suggested product strategy: what products sell, features and performance characteristics,
style, size, source: imported or produced from domestic partners ...
Establish pricing strategies and distribution channels.
Center warranty, maintenance, after-sales and customer care.
There is also an important function is to monitor manufacturing processes, monitor
contract compliance and product quality of contract manufacturing partners.
IV.

V.

MARKETING OBJECTIVES:
Financial:
- Export 158 million pairs of shoes in 2014.
- Domestic consumption of 2 million pairs of shoes in 2014
Non financial
- Brand is at least 50 million people in Vietnam know 2014.
MARKETING STRATEGIES:
1. Strategic orientation of 's global:

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-

Regarding the product: Focus on the product segment sports shoes, the product sports
apparel and sports equipment to high-quality value-added.
Regarding income: focus on class with average income (about 9,000 USD / year) or
more, as this is the group of customers can afford to use high-end products by
For ages: focus on the customer group aged 14-30, according to the study because of ,
this age need to use twice the remaining age groups.
On the national focus on sales to the U.S. market (the market is up over 40% of global
revenues ) and developed countries, gradually shifting to the developing countries as well
as the Potential markets. At the time of the contract manufacturing outsourcing
production in the country has a competitive advantage

2. Assessing market potential and choosing target markets or segments: Characteristics of
Vietnam market are more compatible with the selected strategic force
- For the supply of product strategy, Vietnam is the best selection for power:

Production level of world-class industries
Competitive cost
Favorable trade position
As a member of many important economic alliance
- For business strategy, Vietnam is a good choice because:
Ages 14-30 segment of Vietnam more than 20 million people
Segment income> 9,000 USD / year more than 9 million people and income growth rate
is increasing.
Culture and personality of Vietnam is very convenient to .
The main competitors of the world was in Vietnam Nam , cannot procrastinate.
3. Product-market decision
Products selected for Vietnam market: focus on sports shoe and apparel products, and
other products are subsidiary.
4. Strategic target approach
- For the manufacture of finished products
held a launch event in Vietnam, in which the key ingredient is inviting businesses in the
footwear and apparel industry.
Organization of procurement contract manufacturers, selected approximately 40-50
business reputable, qualified, with professional management system and without scandal.
To supervise compliance with the contract manufacturing business of winning bid.
Distribution to focus on fine ordered by at US.
- For business: due to market high-end sports shoes Vietnam is still relatively primitive
understanding of product features in extent and magnitude of the relatively small market
segment should minimize the charges proposed approach applied marketing strategies
regardless selective, as follows:
- Products regardless of age
- Differentiated products in terms of features such as: football shoes, tennis shoes, running
shoes, tennis dresses, outfits ... soccer match specific size of South East Asia
In particular, products sold in Vietnam must be imported, not the products produced in
Vietnam, this has been the following benefits:

- Branded imported

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5.

6.
a.
b.
c.
-

d.
-

Higher profits without fear of authorities looking.
Avoid the smuggled goods from the processing facility to disrupt markets and market
prices of brand
Positioning
Promoting the advantages of brand further cultural features of Vietnam, to the option
proposed in the direction "of sport performance for the discerning professional." With
this positioning product requirements: high quality, suitable for hot and humid climate of
Southeast Asia, youthful design, fashion and color with bright colors, luxurious.
4P1C (strategy for commercial banks in Vietnam market)
Product
The product size fit people of Vietnam and Southeast Asia: about 37 to 42
Being imported from the warehouse in Southeast Asia, participating TPP as Malaysia,
Singapore ...
There is sweat absorbent material strengths to match the characteristics of the humid

Southeast Asia
There distinguishing product features: soccer shoes, tennis shoes ... But do not distinguish
the taste of the age and gender
In addition, the main products are shoes, sports shoes and clothing, also sell other
products such as bags, luggage, socks, backpacks ...
Price
The value of global policies to keep brand and profit.
Place
Distribution system, divided intothree phases:
Phase 1: open approximately 20 business locations in major cities such as Ho Chi Minh
City, Hanoi, Da Nang and Can Tho. Position is located in the major commercial centers
such as Pakson, Diamon, Vincom, Trang Tien Plaza ...
Phase 2: open of business in 10 provinces to develop as: Ba Ria-Vung Tau, Dong Nai,
Binh Duong, An Giang, Hai Phong, Bac Ninh ..., well placement in the major
commercial centers
Stage 3: Allow some franchise businesses for sale products in provinces and regions that
have not store.
Set up two cubic center is located in Ho Chi Minh City and Hanoi to import and
distribute goods to the business location.
Promotion
Set one customer care center in the city, we can set location to the distribution center, the
center's mission:
Free Switchboard Toll 24/7: professional receiving, forwarding and processing feedback
information to customers, partners, agencies and internal management.
Make warranty and product maintenance
Designed for the advertising, PR, promotion, event ...
Registration of intellectual property rights
Established website with full information: leadership, product information, functionality,
utility, price, and store the list of agents, information cooperation, sharing forum, the
communication, consultation, and feedback received orders, receive and respond to

inquiries, complaints ...

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-

In particular, Vietnam will establish a forum for customers as well as society as a whole,
the main content is to create a community, where people will be consulted and received /
sent from sharing experts products, health professionals as well as from the other
customers in the community on these topics:
Proceedings of selecting suitable products
Experience, training courses running processes as well as other subjects to results you
want
The food necessary to exercise the satisfactory
Create an option for each user to manually manage customer processes their practice, for
example: on 01.01.2014 is 60 kg weight; dated 01.15.2014 is 59 kg; dated 30/01 / 2014
58 kg ...

e. Communication
- Organizing a big event debuted in Vietnam in the event the minimum must include:
Board, the U.S. Embassy, the Vietnam government officials, footwear association,
association of investment foreigners in Vietnam
- Post advertising on sports sites, social networking sites such as facebook, twitter
- Advertisement on VTV1, HTV9 and duration of about 30 seconds after the sports
program at 20 hours,3- year period, a period of 15 days.
- Signed 5-year funding for Nguyen Tien Minh - badminton athlete excellence Vietnam
- Contract 6- years funding for Le Quang Liem - Athletes Best chess Vietnam
- Signed 3- year sponsorship deal for the football club U19 Vietnam
VI.

MARKETING BUDGET
1. Spreadsheet costs of marketing plan

No
1
2
3
4
5
6
7

Events
The cost of establishing and running a customer care center about 50
people
Cost of establishing and operating sites
Event launches
Costs clips and TV advertising, web (Figure 6 and 7)
Financing costs for Tien Minh, Quang Liem
Financing costs for U19 team
Other contingent costs
Total

Chart costs:

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USD/year
500,000

100,000
500,000
300,000
200,000
500,000
200,000
2,300,000


2. Investment efficiency
No
1
2
3
4

Item
Revenue from shoes (2,000,000 pair x 100 USD / pair)
Revenue from other products
Cost (including tax expenditures)
Profit after tax

USD/year
200,000,000
10,000,000
191,100,000
18,900,000

Interpretation:
-

Revenue from the sale of shoes, sometimes projected 2,000,000 sales, the average price
of 100 USD / pair
Other revenue is the revenue from the sale of associated products, is estimated at 5% of
the revenue
The cost and profit after tax in proportion to the current average of , respectively: 91%,
9% (Figure 5)

VII.
CONTROL & VALUATION
To control and evaluate marketing plans, we make the process steps implemented, as follows:
1. Control the work performed
No Task
1
Establish customer service center

Execution time
01/10 - 31/12/2013

2

Design and operation website

01/10 - 31/12/2013

3
4

Event launches
1/1/2014

Clip + TV advertising, web
Early Q1, 2,3/2014
Contract funding Tien Minh,
Q1/2013
Quang Liem and U19

5

2. Control business results
Month Average shoe sales / month
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Person responsible
CEO Viet Nam
CEO
Viet Nam + IT
manager
CEO
Viet Nam + PR
manager
PR manager
PR manager

Other Product Sales per / month


16,
1

666,667

833,333
16,

2

666,667

833,333
16,

3

666,667

4

666,667

5

66,667

6

666,667

7

666,667

8

666,667

9

666,667

10

666,667

11

666,667

12

666,667

Tổng

0

833,333
16,
833,333
16,6
833,333

16,
833,333
16,
833,333
16,
833,333
16,
833,333
16,
833,333
16,
833,333
16,
833,333
200,000,00
10,000,000

Target business in 2014 will be allocated to all the shops and CRM
Every month, the company will evaluate the performance targets. Months of 6th will total
assessment, if the results affecting the business plan, the marketing plan remains set.If not
achieved will be marketing plan provision, as follows:
- Free Weight Loss Advice at the point of sale for bill of 100 USD or more.
- Program donated 10 tickets for football final Winter Olympics in Sochi, Russia's 10 Best
CRM sales.

APPENDIX
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Figure 6 : Table transparent national ranking 2012

Figure 7: Chart of economic growth in Vietnam 2000 - 2012

Figure 8 Statistics using the internet and social networks in Vietnam

Figure 9: Statistical classification table of world income

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Figure 10: Quote of the business reported year 2012

Figure 11: The advertised HTV9 2013
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Figure 12: The advertised price VTV1 2013

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