Marketing Plan–Biti’s Vietnam

On 2011 December, 18, in Business Plan, Entrepreneurship, Marketing Plan by

Nguyen Duy Tuan (阮維俊)

Id student: 10099529103

Executive Summary

In the fast economic integration and the recent joining to WTO of Vietnam,

Vietnamese enterprises are finding ways to d o business in a more sustainable and

competitive manner. Vietnamese enterprises join the global supply chain and that

would require the compliance as well as the innovation in practices.

Biti’s Company has successfully gained its brand reputation and market by good

practices in Corporate Social Responsibility, in particular its supply chain. BITIS

takes the strong focus on environment and human resources improvement while

entering partnership with foreign partners. The development of the company has

attached to the “INOVATION” of Vietnam and openness in Vietnam economy

over the last 20 years. This case will present the context and experience and

practices where BITIS, as a successful case on good CSR strategy in Supply chain

contribute well to the economy.

"BITIS" - "TENDER CARE OF VIET’S FEET”

BINH TIEN Consumption Goods Production Company limited is known as

BITIS, with its slogan “Best solution of your sourcing in Vietnam”. Over its 29

years of operation, BITIS is the highest well-known in the sector for its value for

human resources to build customers’ trust as the core of the company business

strategy.

Founded in 1982, Biti’s has become a popular shoe brand in Vietnam with a well-

known slogan – “Tender care of your feet”. However, in some recent years, the

widespread invasion of Chinese goods together with Biti’s slow innovation in

pattern and design has pulled Biti’s lagging behind its counterparts.

In an effort to regain the leading position and increase the market share, Biti’s is

going to launch a new series of sandals and shoes. This is one reason which make

Biti’s Vietnam should find new market for our self. And Taiwan is good market we

have been thought about it. We will collection targeted at the children ranging

from 1 to 14 years old.

The objectives of this marketing plan are to position consumer’s perception

about Biti’s as a “high quality and reasonable price”, gain a market share of 2-5%

in the children-shoe market and achieve high. In order to achieve these objectives,

Biti’s will apply the marketing mix as below:

* Product:  The design will be continuously improved, catching up with changing

taste of children. The quality will also be upgraded to make children comfortable

with every of their footsteps.

* Price: Consumers have defined Biti’s as a high-price product. Biti’s will still

keep the same price, ranging from 100 TWD to 1000 TWD and will position its

brand image in buyer’s perception as a “high quality and reasonable” product.

* Promotion: An intensive marketing campaign will be carried out Taiwan.

Advertising: since the target segment are children and adult, TV ads will

be the focus of this advertising campaign. Advertisement

on newspaper, magazines and some popular websites

like www.alibaba.com will also be used to reach parents – the final

decision making people.

Sales promotion: Biti’s will apply both consumer promotion, trade

promotion and business promotion.

Public Relation: Biti’s will sponsor for game show on TV and Radio

channel. In addition to that, Biti’s will donate shoes and sandals to some

orphanage schools

Biti’s will cooperate with other strong Taiwan, to work closely with the media to

launch a campaign of encouraging Taiwanese to use made-in-Vietnam goods and

introduce good product to abroad.

* Place: Biti’s will apply hybrid marketing channel. Biti’s will reach customers

through its own showrooms and through its widespread retailers all over Taiwan,

including supermarket and small shops at markets.

1. Background information

Biti’s manufactures shoes including EVA sandals/slippers, PVC sandals,

sports shoes, indoor slippers, leather and PU sandals. Founded in 1982 with two

small production units, namely Binh Tien and Van Thanh, the company initially

produced rubber slippers with 20 workers.

After 29 years of continuous reform and development, BITIS has now evolved into

a group consisting of 3 companies, 1 representative office in U.S.A, 1

representative office in China, 1 borderland Business Center in Lao Cai province,

14 Branches, and over 4,500 agents. Biti’s Group has a production capacity of 20

million pairs per year, with a labor force of 5,000. Its main exporting market

includes EU, Russia and China.

2.     Situation analysis.

2.1. Biti’s current marketing situation

From 1997 to 2001, Biti’s enjoyed its prosperous period due to its robust

investment in advertising and quality development. Biti’s brand has been identified

with the shoe industry.

However, Biti’s has been quite slow in innovating design, upgrading quality and

especially ignoring marketing activities. In addition to that, Chinese goods have

invaded intensively and become the key player in the shoes market. These fact

leads to Biti’s decreasing market share, estimated about 15%.

To make matter worse, the consumer‘s perception about Biti’s is “durable but

expensive and out-of-date design”, though actually its price is reasonable.

2.2 Why we should invest into Taiwan?

- Culture and climate: Almost like Vietnam. Bitis is already successful in Vietnam.

Hence we have a lot of ability for this market.

- Population: According to May 2006 statistics from the Ministry of the Interior,

the population of Taiwan was 22,805,547. 99.6% of which live on Taiwan Island

(Taiwan, Taipei City and Kaohsiung City). The remaining 0.4% (82,618) live on

offshore islands (Penghu, Jinmen, Mazu, Lanyu, and Green Island).

Taiwan has 22,805,547 peoples. And age range highness is adult people. After that

is children generation. Hence we should focus about age range.

2.3. Market analysis

2.3.1 Macro environment

* Demographic: According to Taiwan General Statistic Office, children ranging

from 1 to 14 accounts for 15.65% of Vietnam, adult ranging from 15 to 64

accounts for 73.61% (2010). This is the target market that Biti’s is aiming at

Taiwan

* Economic: Taiwan is now considered as a developing market. Real GDP growth

10.8% (2010) According to http://www.gfmag.com, GDP per capita on purchasing

power parity basis, is $ 21,410 

* Culture: Supermarket systems have all of Taiwan. They have habit which used

supermarket for shopping and sell product.

Children are often keen on TV ads and their parents tend to use TV ads to entertain

them during the hardship of feeding them. Beside almost Taiwanese people has

been used internet for searching and buying.

2.3.2 Micro environment

* Competitors: the main competitor is Chinese, Taiwanese guru. The WTO

membership is also promising to bring more competitors for Biti’s.

*Suppliers: Competition in the market for input also happens. Although Biti’s now

owns a stable supplier of rubber, still it has to take a cautious eye to keep these

suppliers from the rivals.

2.4. SWOT analysis (Case issues)

2.4.1 Strengths

* The first well-known shoe brand name made in Vietnam.

* High quality and durable shoes.

*The design for it is not attractive, especially to young ladies.

Therefore, Biti’s presently is only popular for children between the age of 6~13.

* The customer’s perception about Biti’s is durable BUT expensive and out-of-date

design.

* Children ranging from 0 to 14 accounts for 15.65% of the population.

Hence, there is a great demand for children shoes.

* Higher income and living standards leads to increase in buying power.

* Vietnam’s WTO membership has paved the way for company to enter a lot of

country shoe market.

* The population is a lot more wealthy due to the rapid economic growth in the last

few decades which means they are willing to spend more and most importantly,

they care a lot about style and brand names, something Biti’s does not have.

* If the same quality, so Biti’s Vietnam often chipper than Taiwanese product.

* Repositioning Biti’s in customers’ mind as “durable, high quality and especially,

reasonable price”.

* Make relationship and expand the distribution channel intensively.

* Reach the high revenue.

2.4.2 Weaknesses

- The market potential is small, showing saturation point.

- The lack of research and development professionals.

- Lack of automated equipment manufacturing ability.

- Lack economic, good infrastructure and service.

- Lack of supply raw materials safety and stability.

2.4.3 Opportunities

- Accession to the WTO, to increase the competitiveness of abroad exports.

- Mainly to OEM, less own brand.

- High concentration of export markets.

- Island Taiwan's market opening, bringing vast market opportunities.

- Government support for research and development and technology upgrades.

- The valuable currency between VND and $ create opportunity for export.

2.4.4 Threats

- Raw materials prices rose sharply.

- New market, lack much of information and experience for abroad market.

- Raise consumer awareness, improve the product requirements.

- The supplier system don’t have, we have to dependence about partner.

3. Product objectives

We will concentrate about shoe’s children. All of shoes product must responded

children generation about shape, style, and colors… In next few years, our purpose

promote Biti’s product to all of Taiwanese. Market share is about 2-5% shoe’s

children. This is first period time we sell our product in Taiwan; we will meet a lot

of difficult. And the profits will not main purpose in next few years.

4. Target market

Currently, Biti’s has advantages in children shoes industry Vietnam. Hence, we

have a lot of opportunity and experience for this segment. However, the company

has not really focused on this potential segment. Therefore, this marketing plan

will focus on this target segment. The profile for Biti’s customer consists of the

following geographic and demographic factors:

4.1 Geographic

According to the chart, the

populations are concentrated in big

city. Biti’s decides to focus and

expand its market in the big city like

Taipei, Kaohsiung, Taichung…

Especially Taipei because it is the

nation’s capital and biggest city.

4.2 Demographic

According age range board: from 0 to 14 years old. It is estimated that

3569068.1055 children of this age range goes to school and are involved in daily

out-door activities. Kids at these ages do not care much about style or brand name,

which are our weaknesses and parents just want to buy shoes for their kids which

are durable and comfortable, so our products perfectly fit in their expectations.

4.3 The rate of income

This is one important thing when the company wants to sell this product in Taiwan.

Because, we have to know who is customer in the future of company. And who is

object, who is target of company? After that, we must have marketing for that

customer.

Following this table, we can see the middle-income household occupies the

majority of the population in Taiwan. If we can conquer this customer we can get a

lot of profit.

Since the price is reasonable, Biti’s targets people with middle income.

5. Positioning

5.2 Positioning Statement

For an enjoyable and joyful childhood, going to school, going out and playing with

friends, Biti’s sandals and shoes are delighted to make every step of yours

comfortable.

We highly recognize that all parents give their kids an ocean of cares. We can

assist them in nurturing their children’s feet. Biti’s shoes and sandal are made of

soft, durable and high-qualified materials with fashionable design, and as our

slogan has spoken of: “Biti’s – tender care of your foot”.

5.3 Perception map

As Biti’s only focus on children, the perception map mentions about price, design

and quality

Brand Price Design Quality

Biti’s 100-1000 NTD undiversified good

Chinese 150-1000 NTD diversification not good

Sun York(Taiwan) 500-1500 NTD undiversified good

Other imported brands >1000NTD very attractive very good

6. Strategies

6.1 Product

Biti’s offers a variety of children shoes from sports shoes to sports sandals,

skating shoes. Our goal is to provide our customers with an unparalleled shoe-

shopping experience, offering the best selection of quality and comfort styles in a

convenient and friendly shopping environment.

* Quality: Lab- tests at factories are done for all new items and only those passing

the Quality Standard are selected into Biti’s collection. Biti’s provide a minimum

six month guarantee for every product.

* Brand: Since Biti’s was the first shoe manufacturer made in Vietnam with

distinctive brand name, it is popular over all Vietnamese, recognized for its image

and quality. Therefore Biti’s have the dominance among other local manufacturers

in market.

* Designing and Packaging: The children shoes are available in colorful and

different designs according to age groups. Each pair of shoes are issued and packed

in a convenient box and a shopping bag with Biti’s logo on it.

Biti’s will continuously catch up with changes on tastes and habits of

children. Biti’s will design shoes with popular cartoon celebrities among children

such as Spiderman, Hugo, and Hello Kitty etc. The carrying shopping bags will

also be designed more colorful and attractive for children with their favorite

cartoon celebrities on.

* Labeling: The stock is labeled and tagged after manufactured from

the Biti’s factories with a model number issued for each pair of shoes in the stock.

In future Biti’s will also label a warranty card attached to each model of the shoes.

Currently Biti’s is trying to extend their product life cycle. At the

moment Biti’s has reached maturity stage they are trying to make sure that the

product does not go into decline. Therefore- Biti’s will promote their product by

adding new designs and more attractive packaging to attract customers and

promoting more frequently through TV, Internet, magazines, leaflets, radio banners

and posters.

6.2 Price

Although buyer’s perception about Biti’s is “expensive but poor design”,

still Biti’s will not reduce the price, even increase for some particular products, like

sport shoes. Biti’s will convince customers that Biti’s price is not high. It is

reasonable. It is probably higher than Chinese or Taiwanese ones but the value

they receive from Biti’s is worth the deal.

Biti’s will mix between cost-based and competition-based pricing strategies. The

price will range from 100 NTD to 1000 NTD.

Although Biti’s are distributed nationwide, Biti’s apply the same price at all shops

regardless of the geographic and economic situation of each particular regions. The

customers can be care free from bargaining or getting into a tricky deal when

entering Biti’s shop

6.3 Promotion

6.3.1 Advertising

The promotion of this Biti’s shoes is carefully targeted at the children and early

teenagers. Therefore- they are promoting their product more frequently through

TV, Internet, magazines, leaflets, and posters. The message conveys in all these

activities are Biti’s – tender care of your feet, at a reasonable price. Children will

feel comfortable and enjoy every of their footsteps.

* TV ads: In order to reach huge audience Biti’s use the TV commercials as their

main marketing channel. Biti’s will broadcast on national TV channels at peak

time (19.45-20.00) of children’s transmit ion and 12.00-12.30 at weekend.

* Newspaper and magazines: In order to catch every eye of the

public, Biti’s advertises on newspapers and magazines. Recognizing that the final

buying decisions are made by children’s parents, Biti’s will advertise

* Internet: Internet is used as a quite new advertising channel in Taiwan. The cost

is quite low compared to TV, newspaper and magazines. Biti’s have started to put

its banners at the most eye-catching corners at some popular websites like:

Facebook.com, alibaba.com.tw…

6.3.2 Sales Promotion

a. Consumer promotion

* Cooperate with kindergarten, primary schools and secondary schools to supply

coupons, or vouchers to buy Biti's shoes and sandals. The school may use these

coupons and vouchers as the gifts and rewards to students at the end of each

semester.

* Issue loyal customer card which will provide some discount to customers when

they buy more than 1000NTD. Moreover, becoming registered customers, they

will enjoy more benefits than other customers, receiving information about latest

collection, getting bigger discount than unregistered customers

* Since the new-school year in Taiwan has come in September, Biti's will apply

10% discount on all products at all shops nationwide

* During New Year holiday, Biti’s will offer a discount of 10% for all products.

b. Trade promotion

* Biti’s will offer higher discount – if the retailers reach revenue of more than

15000 NTD per month.

* Offer an advertisement allowance for retailers to have special shelf space.

* Give retailers free specialty advertising items that carry Biti’s brand name such

as pens, hats, notebooks, calendars, etc.

* Biti's are also donating their shoes and sandals to some orphanage schools during

new school year, Mid-Autumn festival, New Year holiday and International

Children Day (1st June).

6.4 Place – Channel of distribution

Presently, Biti’s has been quite successful in Vietnam; it is the right time to

enlarge Biti’s target market segment to abroad such as Taiwan. Firstly of all,

Taipei would be a very potential one.

According to the official website of Biti’s, at the moment, Biti’s has 2

manufacturers which both are locating in the South (Ho Chi Minh City and Dong

Nai)

Hence, Biti’s needs to have a distribution channel (a warehouse) in the Taiwan in

order to be able to provide enough products to its retailers and customers.

A very important factor that contributes to the company success is how to provide

customers the most convenient service. Therefore, Biti’s should apply the

penetration marketing strategy with the aim of improving sales as much as

possible.

In the future, we will build Biti’s Shop in Taipei, Kaohsiung, and Taichung… We

will good for marketing campaigns.

Moreover, Biti’s can also provide its products to some big super market such as

Carrefour, 24H… in Taipei and Kaohsiung city in order to spread its brand name to

Taiwan shoes market and enhance the interest from customers.

As mentioned above in the Taiwanese lifestyle, people prefer market to

supermarket for their daily shopping needs, therefore Biti’s will expand its

distribution channel to the market. Biti’s salesman will negotiate with shoe-shop

owners of the best location in the market to hang the banner of Biti’s there and to

become the retailers for Biti’s.

7. Reference.

http://www.mplans.com/hotel_marketing_plan/marketing_strategy_fc.php

http://www .Bitis.com.vn

Book : Marketing strategy _ McGraw –Hill international edition