MARKETING PLANBITIS VIETNAM

On 2011 December, 18, in Business Plan, Entrepreneurship, Marketing Plan by Nguyen Duy Tuan (

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. Bitis 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 VIETS 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, Bitis has become a popular shoe brand in Vietnam with a wellknown slogan Tender care of your feet. However, in some recent years, the widespread invasion of Chinese goods together with Bitis slow innovation in pattern and design has pulled Bitis lagging behind its counterparts. In an effort to regain the leading position and increase the market share, Bitis is going to launch a new series of sandals and shoes. This is one reason which make Bitis 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 consumers perception about Bitis 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, Bitis 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 Bitis as a high-price product. Bitis will still keep the same price, ranging from 100 TWD to 1000 TWD and will position its brand image in buyers perception as a high quality and reasonable product. * Promotion: An intensive marketing campaign will be carried out Taiwan. y 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. y Sales promotion: Bitis will apply both consumer promotion, trade promotion and business promotion. y Public Relation: Bitis will sponsor for game show on TV and Radio channel. In addition to that, Bitis will donate shoes and sandals to some orphanage schools Bitis 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: Bitis will apply hybrid marketing channel. Bitis 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 Bitis 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. Bitis 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. Bitis current marketing situation From 1997 to 2001, Bitis enjoyed its prosperous period due to its robust investment in advertising and quality development. Bitis brand has been identified with the shoe industry. However, Bitis 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 Bitis decreasing market share, estimated about 15%. To make matter worse, the consumers perception about Bitis 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 Bitis 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 Bitis.

*Suppliers: Competition in the market for input also happens. Although Bitis 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, Bitis presently is only popular for children between the age of 6~13. * The customers perception about Bitis 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. * Vietnams 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 Bitis does not have. * If the same quality, so Bitis Vietnam often chipper than Taiwanese product. * Repositioning Bitis 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 dont have, we have to dependence about partner. 3. Product objectives We will concentrate about shoes children. All of shoes product must responded children generation about shape, style, and colors In next few years, our purpose promote Bitis product to all of Taiwanese. Market share is about 2-5% shoes 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, Bitis 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 Bitis customer consists of the following geographic and demographic factors: 4.1 Geographic According to the chart, the

populations are concentrated in big city. Bitis decides to focus and expand its market in the big city like Taipei, TaichungEspecially Kaohsiung, Taipei

because it is the nations 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, Bitis 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, Bitis 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 childrens feet. Bitis shoes and sandal are made of soft, durable and high-qualified materials with fashionable design, and as our slogan has spoken of: Bitis tender care of your foot. 5.3 Perception map As Bitis only focus on children, the perception map mentions about price, design and quality
Brand Biti s Chinese Price 100-1000 NTD 150-1000 NTD Design undiversified diversification undiversified very attractive Quality good not good good very good

Sun York(Taiwan)
Other imported brands

500-1500 NTD
>1000NTD

6. Strategies 6.1 Product Bitis offers a variety of children shoes from sports shoes to sports sandals, skating shoes. Our goal is to provide our customers with an unparalleled shoeshopping 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 Bitis collection. Bitis provide a minimum six month guarantee for every product. * Brand: Since Bitis 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 Bitis 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 Bitis logo on it. Bitis will continuously catch up with changes on tastes and habits of children. Bitis 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 Bitis factories with a model number issued for each pair of shoes in the stock. In future Bitis will also label a warranty card attached to each model of the shoes.

Currently Bitis is

trying

to

extend

their

product

life

cycle.

At

the

moment Bitis has reached maturity stage they are trying to make sure that the product does not go into decline. Therefore- Bitis 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 buyers perception about Bitis is expensive but poor design, still Bitis will not reduce the price, even increase for some particular products, like sport shoes. Bitis will convince customers that Bitis price is not high. It is reasonable. It is probably higher than Chinese or Taiwanese ones but the value they receive from Bitis is worth the deal. Bitis will mix between cost-based and competition-based pricing strategies. The price will range from 100 NTD to 1000 NTD. Although Bitis are distributed nationwide, Bitis 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 Bitis shop 6.3 Promotion 6.3.1 Advertising The promotion of this Bitis 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 Bitis 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 Bitis use the TV commercials as their main marketing channel. Bitis will broadcast on national TV channels at peak time (19.45-20.00) of childrens transmit ion and 12.00-12.30 at weekend. * Newspaper and magazines: In order to catch every eye of the

public, Bitis advertises on newspapers and magazines. Recognizing that the final buying decisions are made by childrens parents, Bitis 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. Bitis 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, Bitis will offer a discount of 10% for all products. b. Trade promotion * Bitis 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 Bitis 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, Bitis has been quite successful in Vietnam; it is the right time to enlarge Bitis target market segment to abroad such as Taiwan. Firstly of all, Taipei would be a very potential one. According to the official website of Bitis, at the moment, Bitis has 2 manufacturers which both are locating in the South (Ho Chi Minh City and Dong Nai) Hence, Bitis 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, Bitis should apply the penetration marketing strategy with the aim of improving sales as much as possible. In the future, we will build Bitis Shop in Taipei, Kaohsiung, and Taichung We will good for marketing campaigns. Moreover, Bitis 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 Bitis will expand its distribution channel to the market. Bitis salesman will negotiate with shoe-shop owners of the best location in the market to hang the banner of Bitis there and to become the retailers for Bitis. 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