BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TP.HCM

MINI PROJECT

BITI’S INTERNATIONAL MAKETING

CAMPAIGN IN INDONESIA
Lecturers : Dr. Đỗ Thị Hải Ninh
Course name : International Marketing
Course code: : 21C1MAR50309604
Group : Pandas
Member list : Phạm Mai Trinh
Lê Nguyễn Quỳnh Như
Trần Minh Quân
Nguyễn Trọng Triều
Lê Nguyễn Khánh Vân
Hoàng Trần Thế Ngọc

TP. HỒ CHÍ MINH – 2021

 TABLE OF CONTENTS
INTRODUCTION................................................................................................................. 3

I. OVERVIEW..................................................................................................................... 4

1. Biti’s overview.................................................................................................................. 4

2. Indonesia overview............................................................................................................ 4

II. ECONOMIC DEVELOPMENT AND INVESTMENT.............................................................7

1. Indonesia’s economy.......................................................................................................... 7

2. Indonesia’s footwear market.............................................................................................10

3. Tariff.............................................................................................................................. 11

4. Consumer....................................................................................................................... 13

5. Competitors.................................................................................................................... 13

5.1. Global brands............................................................................................................ 13

5.2. Local brands in Indonesia...........................................................................................14

III. SWOT ANALYSIS........................................................................................................... 15

IV. ENTRY MODE................................................................................................................ 16

1. The reason for choosing this entry mode.............................................................................16

2. Advantages..................................................................................................................... 16

3. Disadvantages.................................................................................................................17

4. Recommendation............................................................................................................. 18

V. 4Ps.................................................................................................................................... 19

1. Product........................................................................................................................... 19

2. Price............................................................................................................................... 20

3. Place.............................................................................................................................. 22

4. Promotion....................................................................................................................... 23

REFERENCE......................................................................................................................... 25
 INTRODUCTION
Nowadays, due to the pressures of worldwide economic integration, commodities are no
longer restricted to national boundaries that encourage the local businesses to enter the
worldwide market. In the integration process, most domestic enterprises do not have much
expertise so when they reach out to the global market, they depend only on their inherent
potential, but there are also successful companies which are stable and continuously thrive in
both domestic and international markets. As one of the typical businesses for the
aforementioned ideas, Biti's has provided products to the global market with over 40 nations
and reinforced its position in the international market. Thanks to its manufacturing
experience and the learning of modern trends from international cooperation, Biti's is
increasingly upgrading its products more completely. One of the most obvious things is the
introduction of Biti's Hunter line products. Biti's success is not simply an outstanding short-
term value but an event that maintains its status throughout the development process by
learning from the domestic and international markets.

Among the countries that Biti's will penetrate, Indonesia is the company's strategic market.
Not only the size of the market but also the culture that lead to the consumption habits of the
two countries which are quite similar. In addition, cooperation between the two countries is
being strongly promoted. Part of the reason for this collaboration is that the governments
have policies in place to promote bilateral trade to develop. Although the penetration can be
risky when Indonesia is one of the shoe exporters, with a detailed analysis of the market,
Biti's has a very high chance of penetration. Furthermore, the Indonesian market also has
advantages in terms of climate, economy as well as development benefits. Through an
International Marketing course, our team will analyze in-depth Biti's penetration into
Indonesia. 
 I. OVERVIEW
1. Biti’s overview

Binh Tien Consumer Goods Firm abbreviated "Biti's", is a prominent footwear

company in Vietnam, founded in 1982 in District 6, Ho Chi Minh City. Bitis is the country's
first non-state firm to be granted the ability to directly import and export by the government.
Biti's goods are currently available in over 40 countries and regions across the world,
including the most well-known and demanding markets such as the United States, Australia,
etc.

Biti's Hunter is a unique product line for energetic young people. Furthermore, Biti's Hunter
is appealing by its sophisticated and luxurious aesthetic, which provides consumers with a
sense of certainty. Accompanied by the application of modern technology LiteFlex -
exclusive shoes sole making technology at Biti's Vietnam. The advantage of the Hunter series
is that it is super light in weight. The sole is constructed of high-grade Phylon, which
provides great durability and strong anti-slip since there is a spike groove system on the
bottom plate with a very high grip. Biti's could be comparable to global brands like Nike,
Adidas, etc. but with cheaper versions to easily provide young people an exciting journey and
a memorable experience.

2. Indonesia overview

2.1. Basic information

Official name: The Republic of Indonesia

Geographical location: located in Southeast Asia
Area: 1,905,000 km²
Population: 276,912,387 (2021 est.)
Capital: Jakarta
Currency: Indonesian Rupiah (IDR)
Official language: Bahasa Indonesia is an official language (the common language derived
from the Malay). English, Netherlands, Javan, and over 700 more languages accessible.
2.2. Physical condition

Geographical location: Indonesia is located in Southeast Asia, consisting of 3.700 islands of

which 300 are inhabited. More than two-thirds of the territory is tropical rainforest. 
Natural resources: petroleum, tin, natural gas, timber, fertile soils, coal, gold, silver, etc.

2.3. Climate: Intense tropical weather with high humidity. 

2.4. Society 

According to Indonesia: Urban Population of Cities - Population Statistics, Maps, Charts,

Weather and Web Information, n.d.

Population  

● Total population: 276.912.387 (2021 est.).

● Indonesia is the world’s fourth-largest population. 

● Population of main cities: 

City Population

Jakarta 9,607,800

Surabaya 2,765,500

Bandung 2,394,900

Bekasi 2,334,900

Medan 2,097,700

Tangerang 1,798,600

Depok 1,738,600

Semarang 1,520,500

Palembang 1,440,700

Makassar 1,331,400

Tangerang Selatan 1,290,400

● Age structure (2020 est.)

o 0-14 years: 23.87% 

o 15-24 years: 16.76% 
 o 25- 54 years: 42.56% 
o 55-64 years: 8.99% 
o 65 years and over: 7.82%
Average age: 29.7 

Ethnic groups: There are over 1,300 ethnic groups in Indonesia; 95% of those are of Native
Indonesian ancestry.

Religion:

o Islam 88%
o Protestantism 5%
o Roman Catholicism 3%
o Hinduism 2%
o Buddhism 1%
o Other religions 1%
2.5. Culture 

Indonesia has a diverse cultures, which influenced by Western cultures such as Spain,
Portugal, the Netherlands, etc.

Cuisine: Indonesian cuisine is a collection of numerous regional culinary traditions that make
up the archipelago nation of Indonesia. There are many different recipes and cuisines, partly
because Indonesia is made up of about 6,000 populated islands out of the total 17,508 in the
world's biggest archipelago, with over 1,300 ethnic groups.

Music: The music of Indonesia demonstrates its cultural diversity, in particular, the local
musical creativity, as well as subsequent foreign musical influences which shape
contemporary music scenes of Indonesia. 

Holiday: There are a total of 16 public holidays annually.

Sport: Sports activities have developed quite strongly compared to those of other countries in
Asia. The most popular sport is football. 

2.6. Politics & Policy 

The legal system is based on Roman-Dutch law and has been modified by customary law. In
Indonesia, a company is commonly classified as either public or privately-held, depending on
whether its securities are publicly traded on the open market, as a government-owned
company or private company based on government ownership, or a financial company or
non-financial company based on its main business.
 II. ECONOMIC DEVELOPMENT AND INVESTMENT
1. Indonesia’s economy

Figure 1. GDP of Indonesia from 2010 to 2020

Figure SEQ Figure \* ARABIC 1. GDP of Indonesia from 2010 to 2020

 Figure 1.GDP growth rate of Indonesia from 2010 to 2020

Figure 2. GNP of Indonesia from 2010 to 2020

Overall, Indonesia witnessed an upward trend in its economy in the last 10 years; however,
the economic development has been harmfully affected by the spread out of the Covid-19
pandemic.

As can be seen from the GDP line chart, the GDP of Indonesia grew remarkably from nearly
800 billion dollars to over 1100 billion dollars in the period of 10 years from 2010. Moreover,
Indonesia’s GDP hit the peak at 1,119.09 billion dollars in 2019, which was high compared to
that of countries in the southeast Asia area. Therefore, this is a big market with numerous
products and services exchanged.

Moving to the GDP growth rate line chart, the GDP growth rate of Indonesia experienced a
steady trend with the figure being around 5 percent from 2010 to 2019. This trend implies
that Indonesia had a good growth in its economy which is attractive to an array of investors
from all over the world. The figure in 2020 is not taken into consideration because of the
negative effect of the Covid-19 pandemic, with the number dropping dramatically to -2.7
percent.

For the GNP line chart, the GNP of Indonesia explains the income of citizens. In detail, there
was a significant increase in the GNP with the figure growing from 600 billion dollars to over
1000 thousand dollars in the surveyed timeline.

Taxes

There is a 22% of CIT rate applying for the net income in the year 2020-2021. However, this
rate will reduce by 2% from the fiscal year of 2022.

The discount applied for public companies: public companies which at least meet the
requirements of 40% will be provided with a more effective tax rate of 19% in 2020-2021
and 17% in 2022.

The discount applied for small companies: small businesses with annual revenue that is lower
than IDR 50 billion can get a 50% tax discount of the standard rate. From that, they can save
up to IDR 4.8 billion. In addition, those enterprises which can not release revenue of more
than IDR 4.8 billion are entitled to an income tax of 0.5%.
Figure 4. Foreign exchange rate between IDR and VND
 Indonesian Rupiah to Vietnamese Dong Exchange Rate Chart | Xe

Because the foreign exchange rate changes every single hour, it is necessary to click on the
link to keep track of the current FX rate and see the accurate number when comparing the
value of the two currencies.

As can be seen from the chart, the foreign exchange rate between IDR and VND has
witnessed a significant reduction in the period of 10 years, with the figure has fallen from
2.35 in 2011 to nearly 1.6 in the present day. In detail, this decrease in the FX rate means that
the VND (home country) becomes stronger compared with the IDR (foreign country). This
phenomenon leads to the growth in exports of Indonesia to Vietnam which causes the trade
deficit to Vietnam. However, if we do business and earn the income of IDR in Indonesia, we
can make a huge profit when converting the IDR to VND. On the basis of the foreign
exchange rate, we better do business to manufacture and sell our products directly in
Indonesia instead of exporting them to Indonesia from Vietnam.

2. Indonesia’s footwear market

Footwear is one of the key industries in Indonesia. Footwear manufacturers, which produce
shoes for a variety of global brands, are an important source of employment and foreign
currency for the country.

Changing lifestyles in Indonesia is expected to drive particularly strong demand growth for
athletic footwear, providing an appealing alternative to exports for manufacturers in this
segment. Providing that costs are kept under control, the country has all it needs to maintain
or even expand its position as a leading footwear exporter, which will benefit both local
businesses and international investors.

The value and amount of production of the Indo footwear industry are generated mainly by
large and medium industries.
The distribution of small and micro footwear industries is mainly located in the provinces of
East Java and West Java.

Figure 3. Indonesia Footwear Consumption Per Capital (IDR)/ Growth 2017

As can be seen, Indonesian footwear consumption skyrocketed from 2015 and hit nearly 95

Pic 1. Indonesian footwear industry distribution

Figure 6. Market segmentations in terms of gender and generation

million IDR in 2017. However, the growth rate experienced a fluctuated trend throughout the
years. Those statistical numbers indicate that Indonesia is a potential market with huge
consumption of Indonesian footwear. Thus, foreign investors will find it intriguing to spend
their money on this place.

When paying deeper attention to the value of the footwear market on the basis of gender and
generation, we can see that the value of the man and children in the footwear market
separately was two-thirds of that of women. The footwear market has already been crowded;
therefore, it is a good idea to provide a more variety of options for men and children.

3. Tariff

Imported goods will be taxed on the import sales tax at the entry point (except for goods that
are assigned by the government ) at rates ranging from 5% to 30%. Vietnam and Indonesia
Figure SEQ Figure \* ARABIC 7. Market segmentations in terms of gender and generation
are both members of the ASEAN Free Trade Agreement. Therefore, we can enjoy
preferential tax rates that vary from zero to five percent, except for some crucial products.

Imports of products usually necessitate customs intervention in both the sending and
receiving nations. As a result, obtaining an Indonesian import license is a requirement when
bringing goods into the country. Licenses are specific to a specific industry and do not allow
the entry of goods that are not relevant to that industry.

There are three types of Import License:

1. API-U (General Import License):

This license is applied for trading companies that import finished products or trade goods
with a third party. The minimum time to have API applications is one month.

As soon as you register as a Trading Company, you will receive a Business License Trading.
API-U will enable trade companies to import finished goods and products for sale or
distribution in Indonesia (General Import License).

2. API-P (Producer Import License):

This license is applied only for the production/manufacturing use process. Hence, API-P is
for manufacturing enterprises in Indonesia that import raw materials or support goods for use
in the production process.

3. A Limited Import License (API-T):

The Indonesian Investment Coordinating Board issues this license, which can be used as a
limited importer identification number (BKPM). Goods imported via an API-T are subject to
a lower withholding tax of 2.5 percent, compared to 7.5 percent otherwise. Time to have
applications for an API Terbatas: 5 months.

The following documentation must be provided by businesses importing into Indonesia:

 “ Commercial invoice, signed by the manufacturer or supplier as true and correct;

 Bill of lading, in three endorsed originals and four non-negotiable copies;
 Certificate of insurance;
 Packing list;
 NIB/import permit;
 Customs import declaration.”

According to Import and Export Procedures in Indonesia – Best Practices - ASEAN

Business News, n.d. and Import License in Indonesia: How to Obtain Import & Export
License, n.d.

3. Consumer

3.1. Income and expenses

The GDP per capita PPP in the country is 12,301 USD in 2019, as reported by the World
Bank. The average salary in the country is around 12,100,000 IDR per month (USD 862).
Household spending in Indonesia is a major contributor to the country’s GDP. Indonesia's
GDP per capita in 2021 is expected to reach 3,622 USD/person if the Indonesian economy
maintains the same GDP growth rate and population level as before. (Business Environment
in Indonesia, n.d.)

Income disparity in Indonesia is uneven. On average, women earn 23% less than men.
People with low income will be more careful in choosing and buying products.
Understanding consumer needs and attitudes will make an important contribution when
companies think of expanding their footprint in Indonesia.

3.2. Consumption preferences and tendencies

Indonesia is a developing country with a large young population and a growing middle class
in Jakarta and other cities which has a high potential for consumer spending. Although
Indonesians are among the world's largest Internet users, online shopping is low and
uncommon. Consumers still do not trust online shopping because they are afraid of payment
safety, lack of sales support and product quality.
In order to retain consumers, there should be innovative programs such as loyalty programs
that can bring long-term benefits. A brand is the first thing consumers will consider when
buying a product. A reputable brand image will bring consumer loyalty and have an edge
over competitors. Consumers trust the Indonesian company's products, they are satisfied
when using local brands, and think that the companies understand Indonesian consumer
psychology.

4. Competitors

4.1. Global brands

 General marketing strategy: Global brands in the footwear industry like Nike, Addidas,
Puma,etc have common strategies using such as: Product placement, celebrity
endorsement to promote their products to customers worldwide.

 Target customers: mostly world youth and sports players, different in personality. 

 Strength & Weakness: 

Strength Weakness

o Brand name’s reputation was built for a o Narrow range of target customers;
long time;
o Difficulties in protection and
o Efficiency in manufacturing and maintenance systems;
workforce;
o Limited share growth;
o Effective campaigns;
o Huge competition against one another;
o Catchy tagline;
o Diversification leading to dilution.
o Environmental involvement.

4.2. Local brands in Indonesia

 General marketing strategy:

Local footwear brands in Indonesia like Brodo, Exodos57, Heiden Heritage, League, etc.
They all have the same marketing plan and that is to follow the STP (Segmenting, Targeting,
and Positioning), they promote their products in a more affordable forms like introducing
through ads on Facebook page, uploading pictures on Instagram to get follows, etc. Their
means of marketing are through digital marketing.
Target customers are people of all ages, genders

 Strength & Weakness:

Strength Weakness

The products are diverse, suitable for The overload of shapes and colors may lead
customers with or without a unique to brand dilution and lose customers’s
personality and they have professional interest in the long term. 
photographers to keep their products'
images fresh and eye-catching.
 III. SWOT ANALYSIS

Strength Weakness
● Products have high quality, high ● A new brand compared to local brands
durability, diversification in products, in Indonesia. 
and meet the requirements of ● Lack of knowledge about the law
customers of all ages.  system and the business culture of
● The distribution system thrives.  Indonesia.
● Biti’s pays much attention to the ● The One-price policy by Bitis’s is to
media. Communication strategies are cut down on its profits for its
noticed and developed through Music reputation to the customers, more
Marketing.  specifically by keeping all shoes at the
same price, Bitis’s shows that its
● Biti's has a large number of loyal
products are at the same quality and
customers. 
suitable for everyone.
● Competitive price. 
● Poor attention to customer service.

Opportunities
● With the large consumption of
footwear (Ex: an array of potential
customers, the government
successfully boosted the purchasing
power of its citizens by offering the
thirteen’s salary in 2018).
● It is a good chance to approach new
segments.
Threats
● Competitors: Nike, Adidas,
Indonesia’s local brand.
● Newmarket, new distribution channels.
● Technological advances.
● Other competitors offer a very
optimized price which puts Biti’s
products under a lot of pressure.

● Cheap labor market (Indonesian labor). ● Laws barrier.

● The footwear industry is subsidized by

the Government.
● Stable political environment.
 IV. ENTRY MODE
After considering the opportunities and risks the Indonesian market may hold, our group
decide to choose the Wholly Owned Business mode. The analytics will be shown in the
discussion below.

1. The reason for choosing this entry mode

On the basis of the supply chain side in market research, the Indonesian footwear industries
are distributed differently from Vietnam. The distribution channels of Vietnam are mainly
airplanes and road vehicles, whereas most Indonesian territories are islands where boats and
ships are the main traffics for transporting commodities. Moreover, the finished products will
take much time to reach customers due to the unfamiliar supply chain. Therefore, we will
meet a variety of difficulties when beginning manufacturing our products.

Moving on to the tax aspect, there are many tax incentives based on the income of the
business. If we know how to take advantage of the tax discount, our net profit will be
optimized. The footwear industry is subsidized by the Indonesian government, so it is a good
opportunity to hire local people having a deep understanding of the legal system of Indonesia.

Regarding the foreign exchange rate analysis in the market research, the VND has
appreciated against the value of IDR in the past 10 years. In detail, the exporting value of
commodities from Vietnam will decrease significantly compared to that of Indonesia. Hence,
we’d better manufacture complete products and sell them in Indonesia.

2. Advantages

Footwear industry subsidized by the government: the footwear industry has been made a
priority sector by the Indonesian government.

● Exemption of VAT for import machines and spare parts for train, airplane, and ship:
Deduction of Income Tax Article 21 from employers in the textile and footwear
industry by 2.5%. (policy).

● Income tax deductions of employee income: Deduction of Income Tax Article 21

from employers in the textile and footwear industry by 2.5%. (policy).

● KUR for Export-Oriented Company (KURBE): MSMEs can use the credit facility to
increase the competitiveness of their export products. Exporters are supported with a
maximum financing facility of Rp 50 billion by export financing in the form of
 financing, insurance, and guarantee. This facility is given to some manufacturing
sectors such as furniture, textile, and footwear, etc. (policy)

● The footwear industry was a highly assisted industry in Indonesia until the removal of
import licenses in 1986. This removal has helped local footwear producers achieve
good quality leather at below international prices. (policy)

● The footwear industry, like textiles and clothing, has benefited from trade and other
regulatory reforms in Indonesia.

● Taxation: The government recently relaxed the requirements for tax incentives, which
also include taxes on the footwear industry. The current tax allowance scheme cuts
taxable income to 30% of total investment, speeding up depreciation and
amortization. Labor-intensive and export-oriented companies can have their forward
loss extended from 5 years to a maximum of 10 years to support the government's
goal of creating two million jobs annually (Yulisman, 2015).

Make use of cheap labour and renting cost: minimum wage in Indonesia range from IDR
3,355,750.00 (around US$ 251) to IDR 1,337,645.00 (approximately US$ 100). However, in
smaller cities, this number is even lower. This is considered to be low compared to other
countries; hence, we can take advantage of the labour aspect to minimize the organization’s
cost.

The population in Indonesia ranks fourth in the world, so the labor force is abundant. Besides,
the youth unemployment rate in Indonesia is the highest in Southeast Asia and high human
resources are scarce, so labor costs will be much cheaper than those of other countries in the
region.

A wholly owned subsidiary allows the organization to reach diverse geographic regions,
markets, and different industries with high control, high commitment, high presence, high
reward.

Therefore, Biti’s has more freedom to make its own decision since there are no parties
involved in the operation and planning of the company. Moreover, we can receive advices
from local business executives if something new occurs in the economic and political
environment.

3. Disadvantages

● The company must have the strong financial potential and large investment capital for
 leasing land to build companies, branches, equipment, etc.

● It is better to have great internal resources from the firm to protect technology secrets.
(Facilities placement findings).

● Bitis will face high competitiveness (Indonesia is the 5th largest country in footwear
exporters).

● Domestic manufacturers actively improve production lines and constantly change

technology, as they receive a lot of capital from abroad.

● Apart from having to compete with Indonesia manufacturers, Biti’s also has to face
big competitors such as Thailand footwear companies, famous brands Nike, Adidas,
Reebok, and other brands from countries like Korea, China, etc.

4. Recommendation

Although Indonesia's competitive environment is very difficult, if a business knows how to

find the best niche, it can still penetrate into this market.

In terms of geographical location: The major cities in Java island such as Jakarta, Bandung,
Semarang, etc. All have strong economic growth, modern transportation, advanced
technology in production than other islands or regions such as Yogyakarta, Gorontalo,
Palangka Raya, etc. Despite having a lower standard of living, these places still demand good
quality products at fair prices. This demand is completely consistent with the product, quality,
and price of Biti’s. Therefore, with many years of experience in the footwear industry and
presence in more than 40 countries in the world, Bitis have high competitive strength in these
cities.
 V. 4Ps
1. Product

1.1. Core customer value

Biti’s staff slogan is “Tireless steps' by means that we always put our dedication, desire into
every product that we make, ensuring their comfort and convenience. Customer experience is
our top priority whenever we start to work.

Biti’s products are very popular in terms of quality, product durability as well as product
safety, bringing a feeling of lightness and comfort. Those things are suitable for the climate
and terrain in Indonesia to help customers have the best possible experience.

If Indonesia customers want to express their style and individuality through the brands they
use. Biti's Hunter sports shoes with optimal features for consumers were born to capture the
attention of this customer segment.

1.2. Actual product

 Design

Biti's products are primarily designed for ease of use, convenience, and active performance in
a variety of situations. These features are happened to be suitable for Indonesian customers
since they really enjoy sports activities. Biti's Hunter boasts a body constructed of high-grade
synthetic leather, which has a high weight and durability, is simple to dry, and wash when
dirty and has a high-end phylon base elastic, which ensures a smooth sensation and glide with
every step of movement. Over the years, Biti's have evolved to utilize materials that are
smooth, comfy, and bouncy. Furthermore, the rubber has a stronger grip, allowing for
increased flexibility. All important parameters are brought to Asian standards.

 Materials

Bitis hunter differentiates its products owing to the application of Liteknit technology which
the company calls Knit technology. This technology is attached to the shoes’ upper face with
the use of yarn-like wool yet very firm and elastic. Moreover, football in Indonesia is very
popular so due to the help of this technology and the addition of a TPU plastic frame at the
heel of the shoes, the whole foot will be embraced, creating a comfortable movement as well
as prevent injuries.

 Packaging
Using plastic bags with the brand name printed to package goods is now considered
unprofessional and even environment-unfriendly. Hence, the bag should be beautiful and eye-
catching with a clear Biti’s logo printed, made from eco-friendly materials such as paper so
that consumers can reuse it many times.

1.3. Augmented product

● Warranty period: 3 months from the date of purchase. In case the warranty period
expires, or footwear is damaged by normal wear, or by strong external impact, Bitis
would still repair as requested. However, repairing and shipping costs will be paid by
customers.

● Warranty processing time: From 1 - 20 working days from the date the factory
receives the product, depending on the damage status.

● Free of warranty charges for the following cases: poor glue, broken threads, broken
buckle, loose decorative parts.

● The support is not available for products to be sold with notice: no return - no
warranty applied.

● Locations of Warranty Reception: At all Bitis’s marketing stores nationwide.

● No support for products to be sold with notice: no return/warranty.

These ideas are based on Chính Sách Bảo Hành – Biti’s by n.d.)

2. Price

At the Vietnamese market, Biti's aims to be a product with affordable prices, suitable for the
majority of young people. So, for a new market that is similar to Vietnam, Biti's will keep
selling at an affordable price to be able to reach most consumers in Indonesia. Furthermore,
Indonesia provides the majority of policy support for the footwear industry, allowing Biti's
products to avoid being overpriced and maintain a stable price like in the Vietnamese market.

Regarding features increasing products’ prices, Bitis Hunter is a product aiming at the middle
class; therefore, it is not affected by the gray market which is common in developing
countries.

Moving to the price escalation, Bitis Hunter is made directly in Indonesia; consequently,
factors such as taxes, quotation, currency risk are not serious problems.

Relating to the distribution channel, we have our own stores. Hence, products’ prices will not
be increased by the added profit of middlemen and distributors.

2.1. New product - pricing strategies

Skimming: Indonesia is an entirely new market to Biti’s. The market share we got is 0
percent which is not appropriate for gaining huge profits. As a result, the skimming strategy
is applied.

2.2. Price adjustment strategies

Psychological pricing: The goal of psychological pricing is to further increase demand by

creating an illusion of added value for the consumer.

For example: Setting the price of the product to $199.99 proveed to be more attractive to
consumers than setting the price of $200, even if it's only a very small difference. Due to the
fact that most of the psychology of customers will rely on the first numbers of the price to
make a purchase decision.

2.3. Discount and allowance pricing

Offering discounts with requirements: Young customers tend to be attracted by discount

offers on special occasions.

Free a pair of socks for each pair of shoes purchased.

Membership card: Each level will earn a different discount rate.

2.4 Promotional pricing

Promotional pricing refers to a sale strategy that stimulates the customers’ purchasing
behavior in a short period of time. This strategy is applied in order to improve the short-term
cash flow of the company which can help to window-dress (Promotional Pricing Strategies &
Examples - SheerID, n.d.)

2.5. Competition-based pricing strategies

Biti’s continues to maintain the image of serving high-quality sandals at competitive prices.
This policy allows the product to be considered by the medium-class segmentation when
seeking out value, and also allows the product to be qualified by a small percentage of
customers with higher incomes.

2.6.Premium pricing

Bitis will have some types of products belonging to limited versions which are priced higher
than the others. The final price of these high-end products will include extra benefits such as
increased profits in a short period of time.

3. Place

3.1. Location

 Bitis’s subsidiaries located near sports centers in Indonesia: West Sulawesi, South
Kalimantan, Central Kalimantan, and East Java.
o Advantages: Easy to take feedback, attract a wide range of customers, easy to see
how competitors are doing, and plan to compete with them.
o Disadvantage: High competition rate
 Biti’s subsidiaries are located in remote areas in Indonesia
o Advantages: Easily reach customers who have low income. .
o Disadvantages: Complicated procedures, lack of facilities

3.2. Distribution channel

● Specialty store: it is usually a retailer specializing in a particular brand or a particular

kind of product. Biti’s builds its own stores in densely populated areas where we will
have a huge opportunity to attract a number of customers. However, the land rental
needs to be taken into consideration owing to the high cost of renting in the crowded
area. We recommend that the company should hire local people who have a deep
understanding of real estate in Indonesia to optimally negotiate the rental price with
the landlords.

● Shopping mall (small store): Small stores are the most preferred place, where
customers would like to visit because of the convenience and professionalism. It
contributes to making the company’s product widely introduced in the market to
consumers in a prestigious way, increasing their trust.

● Digital platform: we can collect customers’ information or understand the customers’

behavior through the use of cookies. By having the insights of their customers, Biti’s
can plan out strategies to produce their products efficiently

● Middlemen: Biti’s has actively combined with some middlemen to develop the
distribution system. Consequently, we can create favorable conditions for the
company’s goods to penetrate deep into the Indonesian market quickly and easily
through supermarkets like AEON, Alfamidi, etc.
3.5. Inventory management: In order to check whether the products are available or not, we
have to manage the inventory well. Hence, we can assure the supply of Biti’s hunters in stock
in case too many customers want to purchase it.

3.6. Transportation

There are 2 options

● The company can have its staffs deliver products from stores

● Technology riders will be our partners if products are purchased from the e-commerce
website, apps.

4. Promotion

4.1. Advertising

4.1.1. Traditional ads

● Biti’s is known as a brand that has been built by Vietnamese for 39 years.

● Distribution of product brochures (especially new products) in crowded areas such as

supermarkets like AEON, Alfamidi, the Foodhall, etc (crowded area in Indonesia).

● Public Relations: Promote Biti’s by persuading the external or internal audiences

through unpaid or earned methods.

● PR combined with advertising: creating funny or meaningful clips that have elements
of showing the advertisement to the viewers (check Blackvines or Thailand
advertisement).

● Billboards: Showing images of Biti’s Hunter and slogan of the company on the
Billboard standing by the side of the road or the elevated positions to attract the
attention of people driving on the road.

4.1.2. Digital ads

● Advertising through Tiktok, youtube channels, social media like Facebook,

Instagram, Snapchat, etc.

● Celebrity endorsement: By convincing or hiring KOLs (Key opinion leaders), we can

reach a wide range of audiences and get them to buy our products.

4.2 Sales Promotion

 ● Giveaways: Organizing giveaways is also one of the most essential things of sales
promotion to encourage customers to buy products. Through social networking sites
like Instagram, Facebook, Tiktok, we can organize photo trends with your favorite
Biti's Hunter shoes, etc. It not only creates a new wave for young Indonesian, but it
also allows Biti's to become closer to the fashion industry throughout the world.

● Online shoes hunting: Biti's implements shoes hunting strategies through minigames,
as well as hitting buyer sentiment in limited quantities, promotions during the time
limit to boost sales revenues.

● Hunter & University virtual tour experience: The virtual reality experience program is
conducted in commercial centers and colleges in Indonesia. In detail, the gift of a pair
of Biti's Hunter limited edition attracts a great amount of attention from young people.

4.3 Discount

● Biti's Hunter will launch numerous shocking discounts. One of Biti's promotions is
the discount code that minimizes orders cost per purchase on E-commerce platforms
or Biti's website through various special occasions.

4.4 Promotion/ Discount strategy

● Sponsoring in sports events: People do sports every day in Indonesia, they have
activities for sportsmen/sportswomen, they hold sports events very often and one of
them is Marathon. By having our people join in the Marathon wearing Biti’s Hunter,
we can promote it to people watching the event through cameramen.

● Cooperating with special partners to sell our shoes at a favorable price. Thus, we
could have them promote our products to customers.

● Participating in the fair market, especially fair for Sports, Clothes, etc. where we can
introduce products through our booth.
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