IBA1304_MKT101_TranThiBichHanh

Individual Assignment
Project: BUSINESS SITUATION AND MARKETING
STRATEGIES FOR A PRODUCT

Lecturer: Tran Thi Bich Hanh

Full name: Chu Hoang Trung
Roll number: HS130150
Class: IBA1304
Course: Principle of Marketing
TOPIC
Analysis business situation and marketing strategies for a product (or product line) of a company? Based on the
analyses, provide recommendations for improving performance of that company (i.e. focal and specific
recommendations).

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I. INTRODUCTION ......................................................................................................... 3
II. METHODOLOGY ....................................................................................................... 3
III. ANALYSIS ................................................................................................................. 5
IV. CONCLUSION ........................................................................................................... 6
V. REFERENCE ............................................................................................................... 6

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I. INTRODUCTION
 Company: BITI’S one of the biggest Vietnamese domestic brand on footwear. Established in District 6, Ho
Chi Minh City, 1982. BITI’S accounted for 15% of the domestic footwear market in 2016. BITIS’S products
have a renowned reputation of being extraordinarily long lasting.
 The company now has relationships with hundreds of companies in the country and abroad. The company
imported raw materials for production of footwear from Korea, Taiwan and China.
 BITI’S is rated one of the companies with a large distribution network with seven branch centers, 68
marketing outlets and more than 1,500 retail distribution intermediaries.
 BITI’S Hunter is a new line of products added to the company’s portfolio.
 Since its release in early 2016, it has become the most sought after products of a wide range of products that
the company has to offer and become the company’s most efficient line of products thus far.
 With a sudden burst popularity of the company after the release of this line of products, we believe that this
particular line has a lot of potential.
 Mission Statement: “Nang niu ban chan Viet”. The slogan shows that BITI’S geared toward not only beauty
but also reliability. Slogan also highlights the idea "Vietnamese use Vietnamese goods".
 Objective:
Increase sales revenue by 10% by the November 2019
Increase market share and customer equity by 2.5% by November 2019

II. METHODOLOGY
1. Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve
profitable customer relationships. The company decides which customers it will serve (segmentation and
targeting) and how (differentiation and positioning) (Kotler & Armstrong, 2017).

 Market segmentation: Dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, and who might require separate products or marketing programs (Kotler &
Armstrong, 2017).

 Market targeting: The process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter (Kotler & Armstrong, 2017).

 Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing
products in the minds of target consumer (Kotler & Armstrong, 2017).

 Differentiation: Actually differentiating the market offering to create superior customer value (Kotler &
Armstrong, 2017).

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2. Marketing mix
The set of tactical marketing tools —product, price, place, and promotion— that the firm blends to produce the
response it wants in the target market (Kotler & Armstrong, 2017).

 Product means the goods-and-services combination the company offers to the target market.
 Price is the amount of money customers must pay to obtain the product.
 Place includes company activities that make the product available to target consumers.
 Promotion means activities that communicate the merits of the product and persuade target customers to buy
it.

Product Price
Variety List price
Quality Discounts
Design Allowances
Features Payment period
Brand name Credit terms
Packaging
Services
Promotion Place
Advertising Channels
Personal selling Coverage
Sales promotion Locations
Public relations Inventory
Transportation
Logistics

3. Marketing analysis
Managing the marketing function begins with a complete analysis of the company’s situation. The marketer
should conduct a SWOT analysis (pronounced “swat” analysis), by which it evaluates the company’s overall
strengths (S), weaknesses (W), opportunities (O), and threats (T) (Kotler & Armstrong, 2017).
 Strengths include internal capabilities, resources, and positive situational factors that may help the
company serve its customers and achieve its objectives.
 Weaknesses include internal limitations and negative situational factors that may interfere
with the company’s performance.
 Opportunities are favorable factors or trends in the external environment that the company may be able
to exploit to its advantage
 Threats: are unfavorable external factors or trends that may present challenges to performance.

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III. ANALYSIS
1. Market segmentation
1.1. Geographic segmentation
 Nations: almost in Vietnam
 Religion: every part of Vietnam
1.2. Demographic segmentation
 Age: 17-30. Generally, young generation have a tendency for time and want to
assert themselves. They are attracted by the new trend, beautiful design.
 Gender: male and female
 Income: medium income, who are less price sensitive.
1.3. Psychographic Segmentation
 Social class: middle and working class
 Life style: dynamic young people today love exploring, have passion of tourism. They are
looking for a quality sport shoes with fashionable design at reasonable price.
1.4. Behavioral segmentation
 Personal needs: When they buy a product, they often pay much attention to many
styles; colors ... Selecting shoes should suit for personalities and lifestyle.
 Work needs: The product is required to be highly specialized, reliable and safe for
users.
 Communication needs: The product must be polite and formal to the users
2. Marketing targeting
 Young customers ( age from 17 to 30): are people want express their style and personalities.
 Targeting in the lower middle class and working class who have medium income, who are less price
sensitive.
3. SWOT Analysis
Strengths Weaknesses
 Good quality and are trusted by the public  Design and find the output for the product is not
 Good price goods
 Large distribution system  Lost the market share
 Loyal customer  It’s wrong for focus on foreign markets.
 Famous brand for a long time  Raw material and auxiliary industries are
 Meaningful message “ Nang niu ban chan Viet” underdeveloped
 Modern factories, machines and equipment
 High skilled workers
Opportunities Threats
 Market segmentation has a few middle class  Competitors: Nike, Adidas, Converse …
 Technological advances  New markets/ New distribution channels
 Expand to new markets  Fake shoes
 Customers prefer to Vietnamese goods

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4. Marketing mix ( 4Ps ) strategy

4.1. Price:
All most type of products is ranging from 500,000 to 1,000,000 VND (or about 21.5 to 43 dollars). This
price segment allows the product to be considered by the working class and the middle class when seeking
out for a good price for value while also allow for the product to be qualified of a small percentage of
customers with higher incomes BITI’S Hunter.
4.2. Place:
BITI’S Hunter, together with most BITI’S products can be found in regional retailers, shopping malls, and
distributers in most part of Vietnam. The products can also be acquired through online shopping sites such as
Tiki and Lazada. As for now, BITI’S is one of the most accessible footwear brands in the
Vietnamese market.
4.3. Product:
The BITI’S Hunter has a relatively well developed portfolio with products such as the Hunter Originals,
Hunter Lite-knit Summer Vibes, Hunter 3, Hunter Feast, etc. These products have fashion and functionality,
together with the durability that BITI’S was once famous for. BITI’S aim is to promote youthfulness, energy,
and experience to the youths with the Hunter.
4.4. Promotion:
The Hunter product line of BITI’S has frequent promotion marking down the price of products by 10%,
15%, or 20%. There are also other promotions at different times at the year. Recent promotion strategies
have been quite successful with “ Di de tro ve”, “ Lac troi” and “ Hay trao cho anh” Marketing campaign
using Key Opinion Leaders (KOL) getting a total of 1.2 million interactions on social media which can
certainly be a very good indicator that promotion efforts are being effective.

IV. CONCLUSION
After analyzing business situation and marketing strategy of Bitis, I learned some lesson to apply in the
company, reality. The first lesson is Promotion strategy of Bitis that using Key Opinion Leaders to introduce some
new products. The second lesson is Price strategy of Bitis that is the cheapest in the segmentation in Vietnam market.
If some company use traditional model, so Bitis catch up trend of youth. I think Bitis should develop and grow the
business situation and marketing strategy to bring many value for people.

V. REFERENCE
1. Philip Kotler & Gary Armstrong, Principles of Marketing fourteenth

2. History of Establishment
<https://bitis.com.vn>
3. Từ "ngắc ngoải", Biti’s bỗng vươn mình trỗi dậy
<https://www.brandsvietnam.com>
4. McCarthy, Jerome E. (1964). Basic Marketing.

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