MARKETING PLANBITIS VIETNAMOn 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. 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 ³INOVATION´ 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 ³Best 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 y Advertising: since the target segment are children and adult. Biti¶s is going to launch a new series of sandals and shoes. the widespread invasion of Chinese goods together with Biti¶s slow innovation in pattern and design has pulled Biti¶s lagging behind its counterparts. This is one reason which make Biti¶s Vietnam should find new market for our self. in some recent years. The quality will also be upgraded to make children comfortable with every of their footsteps. The objectives of this marketing plan are to position consumer¶s perception about Biti¶s as a ³high quality and reasonable price´. Biti¶s will apply the marketing mix as below: * Product: The design will be continuously improved. Advertisement . In an effort to regain the leading position and increase the market share. Biti¶s will still keep the same price. However. * Promotion: An intensive marketing campaign will be carried out Taiwan.human resources to build customers¶ trust as the core of the company business strategy. * Price: Consumers have defined Biti¶s as a high-price product. In order to achieve these objectives. TV ads will be the focus of this advertising campaign. And Taiwan is good market we have been thought about it. gain a market share of 2-5% in the children-shoe market and achieve high. catching up with changing taste of children. ranging from 100 TWD to 1000 TWD and will position its brand image in buyer¶s perception as a ³high quality and reasonable´ product. We will collection targeted at the children ranging from 1 to 14 years old. Biti¶s has become a popular shoe brand in Vietnam with a wellknown slogan ± ³Tender care of your feet´. Founded in 1982. Biti¶s will donate shoes and sandals to some orphanage schools Biti¶s will cooperate with other strong Taiwan. y Sales promotion: Biti¶s will apply both consumer promotion. including supermarket and small shops at markets.S. 14 Branches. Russia and China. Background information Biti¶s manufactures shoes including EVA sandals/slippers. .000. After 29 years of continuous reform and development. and over 4. leather and PU sandals. magazines and some popular websites like www. the company initially produced rubber slippers with 20 workers. 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. 1 representative office in U. trade promotion and business promotion. 1 borderland Business Center in Lao Cai province. namely Binh Tien and Van Thanh. Founded in 1982 with two small production units. y Public Relation: Biti¶s will sponsor for game show on TV and Radio channel. Biti¶s Group has a production capacity of 20 million pairs per year.com will also be used to reach parents ± the final decision making people. BITIS has now evolved into a group consisting of 3 companies. In addition to that. Biti¶s will reach customers through its own showrooms and through its widespread retailers all over Taiwan. Its main exporting market includes EU.on newspaper. with a labor force of 5. 1 representative office in China.A.500 agents. sports shoes. PVC sandals. indoor slippers. 1.alibaba. * Place: Biti¶s will apply hybrid marketing channel. 2. Hence we have a lot of ability for this market. After that is children generation.2 Why we should invest into Taiwan? .4% (82. Mazu. the consumerµs perception about Biti¶s is ³durable but expensive and out-of-date design´. In addition to that. To make matter worse.547 peoples.805. Lanyu.618) live on offshore islands (Penghu. These fact leads to Biti¶s decreasing market share. Biti¶s brand has been identified with the shoe industry. Chinese goods have invaded intensively and become the key player in the shoes market.547.805. Taiwan has 22. the population of Taiwan was 22. Jinmen. Situation analysis. upgrading quality and especially ignoring marketing activities.1. The remaining 0. 99. Biti¶s current marketing situation From 1997 to 2001. However. estimated about 15%. Biti¶s has been quite slow in innovating design. 2. . Hence we should focus about age range. Biti¶s enjoyed its prosperous period due to its robust investment in advertising and quality development.Population: According to May 2006 statistics from the Ministry of the Interior.6% of which live on Taiwan Island (Taiwan.2. and Green Island). Taipei City and Kaohsiung City). And age range highness is adult people.Culture and climate: Almost like Vietnam. Bitis is already successful in Vietnam. . though actually its price is reasonable. They have habit which used supermarket for shopping and sell product.8% (2010) According to http://www. This is the target market that Biti¶s is aiming at Taiwan * Economic: Taiwan is now considered as a developing market. Real GDP growth 10.65% of Vietnam.2. adult ranging from 15 to 64 accounts for 73. Children are often keen on TV ads and their parents tend to use TV ads to entertain them during the hardship of feeding them. . Taiwanese guru.61% (2010).1 Macro environment * Demographic: According to Taiwan General Statistic Office. Beside almost Taiwanese people has been used internet for searching and buying.gfmag.2 Micro environment * Competitors: the main competitor is Chinese.com. children ranging from 1 to 14 accounts for 15.3. Market analysis 2.3. GDP per capita on purchasing power parity basis. is $ 21. The WTO membership is also promising to bring more competitors for Biti¶s.3. 2.410 * Culture: Supermarket systems have all of Taiwan. there is a great demand for children shoes. * If the same quality. * High quality and durable shoes. Therefore. * 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. * Vietnam¶s WTO membership has paved the way for company to enter a lot of country shoe market. * Higher income and living standards leads to increase in buying power. * Children ranging from 0 to 14 accounts for 15. * Repositioning Biti¶s in customers¶ mind as ³durable. so Biti¶s Vietnam often chipper than Taiwanese product. .4. still it has to take a cautious eye to keep these suppliers from the rivals. SWOT analysis (Case issues) 2. reasonable price´.1 Strengths * The first well-known shoe brand name made in Vietnam.65% of the population. high quality and especially. * The customer¶s perception about Biti¶s is durable BUT expensive and out-of-date design. they care a lot about style and brand names. Biti¶s presently is only popular for children between the age of 6~13. especially to young ladies. *The design for it is not attractive.*Suppliers: Competition in the market for input also happens. Although Biti¶s now owns a stable supplier of rubber. 2.4. something Biti¶s does not have. Hence. 4.Lack of supply raw materials safety and stability.The valuable currency between VND and $ create opportunity for export.Raise consumer awareness.The market potential is small.4. .New market.Mainly to OEM.4 Threats . .Lack of automated equipment manufacturing ability.The lack of research and development professionals. . . bringing vast market opportunities. improve the product requirements. .* Make relationship and expand the distribution channel intensively. . .Raw materials prices rose sharply. 2.Lack economic. . lack much of information and experience for abroad market. . good infrastructure and service.Island Taiwan's market opening. 2. .3 Opportunities . showing saturation point.Accession to the WTO. . * Reach the high revenue. less own brand.High concentration of export markets. to increase the competitiveness of abroad exports.4. 2.2 Weaknesses .Government support for research and development and technology upgrades. . Market share is about 2-5% shoe¶s children. This is first period time we sell our product in Taiwan.. Product objectives We will concentrate about shoe¶s children. And the profits will not main purpose in next few years. the populations are concentrated in big city. Taichung«Especially Kaohsiung. Biti¶s decides to focus and expand its market in the big city like Taipei. 4. Target market Currently. Hence. Taipei because it is the nation¶s capital and biggest city. we will meet a lot of difficult. All of shoes product must responded children generation about shape. our purpose promote Biti¶s product to all of Taiwanese.1 Geographic According to the chart. 3. The profile for Biti¶s customer consists of the following geographic and demographic factors: 4. style. Therefore. However.The supplier system don¶t have. the company has not really focused on this potential segment. Biti¶s has advantages in children shoes industry Vietnam. we have a lot of opportunity and experience for this segment. this marketing plan will focus on this target segment. we have to dependence about partner. . and colors« In next few years. Kids at these ages do not care much about style or brand name.4.2 Demographic According age range board: from 0 to 14 years old. Because. . And who is object. who is target of company? After that. 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.1055 children of this age range goes to school and are involved in daily out-door activities. 4. we must have marketing for that customer. we have to know who is customer in the future of company. It is estimated that 3569068.3 The rate of income This is one important thing when the company wants to sell this product in Taiwan. durable and high-qualified materials with fashionable design. Biti¶s sandals and shoes are delighted to make every step of yours comfortable. Biti¶s shoes and sandal are made of soft.3 Perception map As Biti¶s only focus on children. Positioning 5. Biti¶s targets people with middle income. If we can conquer this customer we can get a lot of profit. 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 . we can see the middle-income household occupies the majority of the population in Taiwan. Since the price is reasonable. 5. We can assist them in nurturing their children¶s feet. going out and playing with friends. and as our slogan has spoken of: ³Biti¶s ± tender care of your foot´. the perception map mentions about price. We highly recognize that all parents give their kids an ocean of cares.2 Positioning Statement For an enjoyable and joyful childhood. going to school.Following this table. 5. recognized for its image and quality. offering the best selection of quality and comfort styles in a convenient and friendly shopping environment. Hugo.tests at factories are done for all new items and only those passing the Quality Standard are selected into Biti¶s collection. * 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. Strategies 6. Our goal is to provide our customers with an unparalleled shoeshopping experience. In future Biti¶s will also label a warranty card attached to each model of the shoes. * Quality: Lab. . * Brand: Since Biti¶s was the first shoe manufacturer made in Vietnam with distinctive brand name. it is popular over all Vietnamese. The carrying shopping bags will also be designed more colorful and attractive for children with their favorite cartoon celebrities on. * Designing and Packaging: The children shoes are available in colorful and different designs according to age groups. Biti¶s will continuously catch up with changes on tastes and habits of children.6. Therefore Biti¶s have the dominance among other local manufacturers in market. Biti¶s will design shoes with popular cartoon celebrities among children such as Spiderman. and Hello Kitty etc. Each pair of shoes are issued and packed in a convenient box and a shopping bag with Biti¶s logo on it. skating shoes.1 Product Biti¶s offers a variety of children shoes from sports shoes to sports sandals. Biti¶s provide a minimum six month guarantee for every product. 6. Therefore.Currently Biti¶s is trying to extend their product life cycle. leaflets.3 Promotion 6.Biti¶s will promote their product by adding new designs and more attractive packaging to attract customers and promoting more frequently through TV. like sport shoes. At the moment Biti¶s has reached maturity stage they are trying to make sure that the product does not go into decline. radio banners and posters. Internet. It is probably higher than Chinese or Taiwanese ones but the value they receive from Biti¶s is worth the deal. Internet.1 Advertising The promotion of this Biti¶s shoes is carefully targeted at the children and early teenagers. The price will range from 100 NTD to 1000 NTD.2 Price Although buyer¶s perception about Biti¶s is ³expensive but poor design´. leaflets. magazines. and posters. The customers can be care free from bargaining or getting into a tricky deal when entering Biti¶s shop 6. magazines. Although Biti¶s are distributed nationwide. Biti¶s will convince customers that Biti¶s price is not high. The message conveys in all these . still Biti¶s will not reduce the price. Biti¶s will mix between cost-based and competition-based pricing strategies.3. even increase for some particular products. Therefore.they are promoting their product more frequently through TV. It is reasonable. Biti¶s apply the same price at all shops regardless of the geographic and economic situation of each particular regions. Moreover. becoming registered customers. The school may use these coupons and vouchers as the gifts and rewards to students at the end of each semester. Consumer promotion * Cooperate with kindergarten. newspaper and magazines. Recognizing that the final buying decisions are made by children¶s parents. * TV ads: In order to reach huge audience Biti¶s use the TV commercials as their main marketing channel. at a reasonable price. they will enjoy more benefits than other customers. Children will feel comfortable and enjoy every of their footsteps.2 Sales Promotion a.45-20. The cost is quite low compared to TV. alibaba.00) of children¶s transmit ion and 12. * Newspaper and magazines: In order to catch every eye of the public.3. primary schools and secondary schools to supply coupons.com. * Issue loyal customer card which will provide some discount to customers when they buy more than 1000NTD. Biti¶s have started to put its banners at the most eye-catching corners at some popular websites like: Facebook. Biti¶s will broadcast on national TV channels at peak time (19.com.00-12. or vouchers to buy Biti's shoes and sandals.activities are Biti¶s ± tender care of your feet. receiving information about latest collection. Biti¶s will advertise * Internet: Internet is used as a quite new advertising channel in Taiwan. getting bigger discount than unregistered customers . Biti¶s advertises on newspapers and magazines.30 at weekend.tw« 6. Firstly of all. 6. calendars. b. hats. etc. Mid-Autumn festival. * Give retailers free specialty advertising items that carry Biti¶s brand name such as pens. Biti¶s has been quite successful in Vietnam.4 Place ± Channel of distribution Presently. Biti¶s has 2 manufacturers which both are locating in the South (Ho Chi Minh City and Dong Nai) Hence. According to the official website of Biti¶s. New Year holiday and International Children Day (1st June). * Biti's are also donating their shoes and sandals to some orphanage schools during new school year. Trade promotion * Biti¶s will offer higher discount ± if the retailers reach revenue of more than 15000 NTD per month. Biti's will apply 10% discount on all products at all shops nationwide * During New Year holiday. * Offer an advertisement allowance for retailers to have special shelf space. at the moment. Taipei would be a very potential one. . it is the right time to enlarge Biti¶s target market segment to abroad such as Taiwan. 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. Biti¶s will offer a discount of 10% for all products.* Since the new-school year in Taiwan has come in September. notebooks. we will build Biti¶s Shop in Taipei. As mentioned above in the Taiwanese lifestyle. people prefer market to supermarket for their daily shopping needs. Therefore. Moreover. 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. Biti¶s can also provide its products to some big super market such as Carrefour. Kaohsiung. and Taichung« We will good for marketing campaigns. http://www. In the future. 24H« in Taipei and Kaohsiung city in order to spread its brand name to Taiwan shoes market and enhance the interest from customers.com.com/hotel_marketing_plan/marketing_strategy_fc.Bitis. 7.mplans. Reference.A very important factor that contributes to the company success is how to provide customers the most convenient service.php http://www . therefore Biti¶s will expand its distribution channel to the market.vn Book : Marketing strategy _ McGraw ±Hill international edition . Biti¶s should apply the penetration marketing strategy with the aim of improving sales as much as possible.