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Case Study Analysis - Bitis Hunter

Principles of marketing (Đại học Kinh tế Thành phố Hồ Chí Minh)

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Introduction

Biti’s Hunter’s Tet 2017 campaign was a great success within the Vietnamese market, gaining 1.7 million
interactions in social media and 300% sales target within 7 days (BrandsVietnam, 2018). This essay will
highlight the key success factors: clearly defined and profitable market segment, distinguished
differentiation from competitors and distinctive position in the mind of target customer. However, this
essay also mentions a few weaknesses where Biti’s Hunter might improve.

Segmentation

Market segmentation refers to breaking the whole market into specific groups of consumers who have
different needs, desires, behaviors, or characteristics (Kotler & Armstrong, 2017).

According to the Sportswear in Vietnam report (EuromonitorInternational, 2018), in 2017, footwear

faced a rising in retail value sales by 12%, reaching VND7,070 billion which made sportswear become
attractive for companies. Increasing in youngsters’ demand for sporty footwear and the rising in
awareness of importance of sport among modern parents are the main impulse. Before 2017,
consumers with low and middle income are targeted segments of local brands like Biti’s. However, a
shift of purchasing from economy to premium brands (Euromonitor International, 2018) motivated Biti’s
to improve product quality and serve more market segments. Biti’s segments the market based on
demographic, geographic, psychological, and behavioral characteristics.

The first segment is urban young which refer to people in both genders, aged 17 to 25 (mostly
generation Z), having middle and upper-middle income, living in urban cities with tropical weather (Ho
Chi Minh city, Hanoi, Da Nang, Hai Phong…). They are most active on social media platforms, seek out
new experiences (Kantar, 2019), tend to follow trends, and have the ability to influence others’ decision-
making. They can be ex-users with high loyalty or new users. They look for fashionable shoes with high
quality and affordable price.

The second segment is urban office workers aged 25 to 32 (mostly Millennials) in both genders with low
and middle income. They look for the convenience to make lives easier (Kantar, 2019). They use high
heels shoes, doll shoes, or Western shoes during working hours.

The third segment is children aged 1 to 10 in both genders who are active, energetic students and
engage in outdoor activities need durable and long-lasting shoes and sandals. They live in both rural and
urban areas.

The fourth segment is daily users aged 5 to 35 in both genders with low and middle income living in both
rural and urban areas. They seek for convenience and comfort rather than fashion. They also want
durable and long-lasting flip-flops or slippers used in daily activities.

The final segment is male soccer players aged 17 to 25 with middle income living in urban cities. They
seek for football shoes that fit Vietnamese’s foot. Also, they want high quality products with affordable
price.

Because of different needs among groups of consumers, segmentation helps create a better match
between consumers’ wants and values of the product (Hiam & Schewe, 1993). All segments of Biti’s
include middle income and urban customers who create a great profit potential in the future. According
to a report by Breu, Francois, Kuijpers, and Sawaya (2019), by 2035, over half of Vietnamese (60 million)
people will join the global middle class. Moreover, another report by World Bank and Ministry of

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Planning and Investment of Vietnam (2016) predicted that by 2035, 50% of the Vietnamese total
population are urban citizens. The children segment is the most accessible and sustainable segment.
Biti’s products for children are sold in big supermarkets, Biti’s stores, and rural markets to approach
more potential customers. Due to the quality, parents prefer their children to use Biti’s products.

Targeting

According to Kotler and Armstrong (2017), market targeting is the determining how many and which
segments to serve. This decision, according to Abratt (1993), is based on the following criteria: ability to
reach consumers, market size and growth, position in comparison with competitors, and the match with
firm’s targets and resources.

Biti’s Hunter follows concentrated marketing strategy. This marketing approach aims at a small, specific
segment by using one specialized marketing plan that best match with needs and desires of consumers
("Concentrated marketing strategy: Saviour of small businesses," 2016). The targeted segment of Biti’s
Hunter is urban youngsters aged 17 to 25.

With the price 495000VND and 650000VND, the brand targets at middle and upper-middle income
customers who live in urban cities. The campaign started with product placement and conveying the
message with 2 MVs by famous singers on Youtube, and a conversation on Facebook and Instagram
between many KOLs. All these steps were done through social media platform where youngsters are
most active, and also the most effective channel to connect with the brand’s target consumers. One part
of this targeted segment is ex-users with high loyalty who used Biti’s products since their childhood and
still preferred Biti’s Hunter when they grew up. According to McNeal (1992), consumer loyalty is evolved
at an early age, and that positive reactions toward the brand are maintained and enhanced through
time. Another part is new users who are trend followers. They are attracted by the fashion outlook of
KOLs who using Biti’s Hunter.

At the time Biti’s Hunter decided to create “Going far to be truly back” marketing campaign, its budget
was around 3 billion VND compare to hundreds billion of Coca-cola, Nestle, or OMO (Uyen, 2018). Niche
marketing strategy helps Biti’s operate efficiently by focusing its limited resources on attracting target
consumers that it can serve best and most profitably. Also, successful concentrated marketing helps the
brand get attention and gain strong reputation due to the understanding of consumers’ insights (Kotler
& Armstrong, 2017). Moreover, research has found that young people are likely to be influenced by
their peers (Grant & Waite, 2003). It turns out that the profit is greater when youngsters are the target
segment. Besides, Biti’s did not stop at this campaign, it continued to convey the same message in its
later campaigns in 2018 and 2019. This action helps Biti’s develop a long-term and strong relationship
with consumers which is vital to successful niche marketing (Dalgic & Leeuw, 1994).

Differentiation

Differentiation refers to creating remarkable customer value through make the firm’s market offering
become different from its competitors (Kotler & Armstrong, 2017).

Before, Biti’s brought to customers durable and affordable products. However, its target customers -
young people want not only high-quality products but also a brand helping them to express their
characteristics and lifestyles. Therefore, Biti’s Hunter with colorful appearances, fashionable and
modern forms, still keeping its core features, was established to satisfy the needs of youngsters. These
attributes differentiate Biti’s Hunter from two groups of competitors: high-priced luxury brands (Nike,

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Adidas…) and low-priced brands with attractive appearances but poor quality (Redder, 2016). Biti’s
Hunter’s shoes are made of airy and cool materials suitable for tropical weather.

Biti’s Hunter has chosen the right channel and right methods to approach its targeted consumers. Due
to the preference of youngsters, Facebook, Instagram and Youtube are communication tools. It also
offers a variety of online activities such as Give Away, buying online, Uber Move (Redder, 2016).
Moreover, the participation of influencers contributes to success of the campaign because young people
have a tendency to follow trends. The campaign has gained over 20 million interactions on Youtube and
1.7 million brand’s mentions on Facebook (Advertising, 2017). Besides, the campaign is successful in
catching the insight of Vietnamese youngsters and conveying a catchphrase at heart to solve their
problem.

The biggest reason for the success of this campaign is the unique idea in familiar platform “Homing”
which many big brands such as Neptune, Oppo, and Pepsi also use in Tet holiday 2017 (Cao, 2017).
While other brands tell stories about coming back, Biti’s Hunter raises the issue of going far
(BrandsVietnam, 2018). It understands and sympathizes with the going-to-gain-experience-attitude of
Vietnamese youngsters, and on behalf of the young speak out their insights. Biti’s Hunter brings not only
shoes to customers but also the answer for the problem between two opinions: the traditional one is
coming home for reunion at Tet, the other is going far for experiences. The meaningful message is
repeated and becomes the lever helping Biti’s Hunter marketing campaign in Tet 2018 gain the growth
rate 250% compare to the campaign in 2017 (BrandsVietnam, 2018). Moreover, the product placement
in music video contributes to the success. Research has found that for adolescents, products'
attractiveness is greater when shown in non-marketing contexts such as music video or film (Nelson &
McLeod, 2005).

Positioning

Positioning is identifying the unique value that firm brings to consumers and its product position in
customers’ minds. Then, it creates an appropriate marketing mix to obtain the desired position.
Positioning map represents consumer impression of a brand in comparison with its competitors on
important criteria (Kotler & Armstrong, 2017).

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The first competitive advantage of Biti’s Hunter is the existent reputation of Biti’s. Biti’s – one of the
oldest domestic footwear brands – was established in 1982. Over time, Biti’s is well-known for durability
and affordability products and its products are associated with the childhood of many youngsters
(Redder, 2016). Therefore, when Biti’s Hunter was established with new products, customers’ sympathy
is a reason for its success. The second strength is that Biti’s Hunter not only provides physical products
but also satisfies psychological needs of its targeted customers.
In comparison with Biti’s Hunter, there are 2 international brands (Nike and Adidas) and 1 local brand
(Dincox) that also have seniority in Vietnamese footwear market. However, Dincox provides only
physical value. Nike and Adidas do provide psychological values (young and sporty lifestyle) but they do
not catch Vietnamese youngsters’ insight as Biti’s Hunter. Ananas and Mot are new local brands who
also provide high-quality product but less psychological value than Biti’s Hunter. Biti’s Hunter has chosen
the right combination of values to serve targeted customers which results in higher consumer loyalty,
greater buyer willingness to try its products, and higher profit (Almquist, Senior, & Bloch, 2016).
Recommendations

Most Biti’s stores are small in comparison with Nike, Adidas and have classic appearances while
youngsters prefer creativity and colorfulness. The first Biti’s Hunter collection does not fulfill the
requirement of diverse product designs. Moreover, some customer complained about product shortage
on Biti’s Hunter’s online sale system (Redder, 2016). Therefore, more flagship stores with innovative
appearance is advisable. Besides, more collections with diverse product’s forms and designs are
recommended. Also, Biti’s should improve productivity to erase the shortage of products on online sale
system.

Beside the advantages, concentrated marketing strategy has a drawback that the company’s resources
are spent all or mostly on serving one segment. A sudden and unexpected trouble in the industry can
make the company suffer severely ("Concentrated marketing strategy: Saviour of small businesses,"
2016). This idea also raises a problem about managing the sustainability of the targeted segment while
preferences of youngsters can change due to the influence of KOLs or new experiences. Moreover,
benefits of concentrated marketing can attract large competitors to participate in serving the same
segment (Toften & Hammervoll, 2013). Biti’s should be aware of possible risks and prepare contingency
plans due to the disadvantage of concentrated marketing strategy.

Conclusion

This essay has shown that strong application of STDP is reason for the success of “Going far to be truly
back” campaign. A few areas for improvement are store appearance, product shortage, and diversity.

References

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