II.

MARKET
A. Discuss the market for your product. Provide market information to explain the
market characteristics and market potential.
Market characteristics: Vietnam is considered an easy-going market with a relatively
large consumption capacity. The shoes are mainly processed for foreign countries, there are very
few Vietnamese shoe brands that "specialize" in manufacturing and designing exclusively for
Vietnamese customers. Vietnamese consumers’ needs and tastes are Vietnamese people use
Vietnamese goods, products have reasonable price, quality products and certain durability.
According to The General Statistics Office of Vietnam (GSO), Vietnam consumes the
number of 350-360 million pairs of footwear every year, with the value at over $17.5 billion
dollars, and accounting for about 30% of the industry's export turnover. It means that domestic
footwear enterprises only meet about 40% of demand. There are multifarious types of shoes
including sneakers, loafer, dockside, wedge boot, slip-on,...in Vietnam field footwear, which
creates the diversity for customers to select conveniently. However, in reality, the Vietnam’s
market is being dominated by foreign footwear, with the majority of products originating from
China. Footwear is one of Vietnam's key export industries, accounting for about 7% of the
country's total merchandise exports, with an average double-digit growth per year.
As one of the leading world's exporters, Vietnam is currently ranked second in the world
in terms of footwear exports, only after China in terms of footwear export output to the world
market with an export volume of 1.23 billion pairs of shoes in 2020.

Rank Country Pairs (Millions) World Share

1 China 7,402 61.1%

2 Vietnam 1,233 10.2%

3 Indonesia 366 3.0%

4 Germany 301 2.5%

5 Turkey 280 2.3%

Table 1: Top 5 Footwear Exporters (Quantity) 2020

With this result, for the first time, Vietnam surpassed 10% of the world's total export of
footwear (accounting for 10.2%), an increase of 4.4 times compared to 2011 (accounting for
2.3% with 316 million pairs of shoes exported). Notably, Vietnam became the largest exporter of
canvas shoes (in terms of value), outstripping China. This is the first time since the publication of
the World Footwear Yearbook that China does not lead the export of a footwear category.
 Regarding the domestic market of Biti's shoes, the company has a wide scale. A
distribution system of Biti's products stretching from South to North with 07 Branch Centers,
156 Marketing Stores, and more than 1,500 retailing distribution intermediaries, has created
stable jobs for more than 9,000 employees. at Biti's Corporation and Dona Biti's Company with
an annual output of over 20 million pairs, a wide range of products, diverse in designs and
models such as high-quality sports shoes, fashionable women's shoes, leather western shoes,
canvas shoes, EVA foam slippers,...
In Vietnam, Biti's has penetrated the market in more than 50 provinces and cities
nationwide, especially expanding its stores in big cities such as Ho Chi Minh City, Hanoi, Hai
Phong, Can Tho, and Da Nang. Biti’s brand was registered in the Socialist Republic of Vietnam
in 1982, preceded by two small production complexes Binh Tien and Van Thanh located in Ho
Chi Minh City. After a period of market research for more than 39 years, the company has
become a prestigious, reliable, and familiar brand with consumers and it is the pride of the
Vietnamese people as a "National Brand" in the field of prestigious and quality footwear sector.
Besides, Biti's constantly explores the tastes of consumers and they have also achieved a lot of
success. The company pays attention to the characteristics and business psychology of
Vietnamese people to find the best method to cooperate with them. When working in the
country, Bitis's experience is always to research and analyze the market accurately and
specifically to correctly identify which location is good to sell products and focus on investing to
do our best to achieve the intended success.
Market potential: In the domestic market, in particular, Vietnam is also recognized for
its great development potential due to its growing population. In 2022, our country's population
has been about 97 million people with an estimated demand for footwear up to 2,000 million
pairs. Hence, on average, each Vietnamese person will consume 2 pairs of shoes in a year. At the
same time, the footwear industry is regarded to be extremely prosperous when it has taken the
initiative in 70% of raw materials for leather shoes in the mid-range segment, and 50% of
products in the mid-range segment. Therefore, it will become easier for Biti's businesses to
actively produce Biti's Tropical Paradise shoes with materials at affordable prices with people's
income ability. What is more, according to statistics of the Ministry of Industry and Trade, our
country's youth population was estimated at 23,3 million in 2018, accounting for 24.6% of the
country's population, proving that Biti's new products will acquire a remarkable number of
potential young customers who are extremely interested in youthful, dynamic and stylish shoes.
“Biti's Tropical Paradise” will also have the potential to export shoes to other countries
after the new product is launched. Because in fact, over the past time, the proportion of footwear
import turnover from Vietnam has not stopped increasing. For the EU market, the EVFTA in
force from August 1, 2020 is considered the biggest motivation for the growth of the footwear
industry in recent years. Footwear is one of the items on the list of export products of Vietnam
with positive changes in export. After the EVFTA officially took effect, Vietnam's footwear
exports to the EU market gradually recovered. Vietnamese footwear currently has an advantage
over competing countries such as China, Myanmar, India, and Cambodia.
 Comment: Vietnam market is the appropriate place for “Biti's Tropical Paradise” to
launch and develop widely because of the aforementioned preeminent characteristics. It is
inevitable that the footwear market in Vietnam is on the rise and this field has the potential to
expand in the next few years, regardless of the considerable difficulties of the ongoing COVID-
19 pandemic. With the product line "Made in Vietnam", Biti's Tropical Paradise promises to
attract a large number of domestic consumers, especially young people when the new product is
launched with its long-term reputation. and the freshness of many attributes. At the same time,
Biti's footwear company will contribute a significant number of shares in the Vietnam footwear
field, thereby developing the country's economy and promoting product development
opportunities in the world. However, Biti's Tropical Paradise requires wise strategies to compete
with other sports shoe brands also presenting in the Vietnamese market and avoid being inferior
to other brands.

B. What market segment will your product appeal to?

Dynamic youngsters are the main demographic segmentation of the new product. The
average age of the right audience for “Biti’s Tropical Paradise” is from 15 to 25. Generally,
young people have a tendency to assert themselves. They are always drawn to the new trend of
attractive design. Although the main age group we target is from teenagers to young workers, we
believe that children aged from 10 to 15 are also potential customers of Bitis's new products.
Children who are active, energetic students and engage in outdoor activities need durable and
long-lasting shoes and sandals. Besides, Biti's goods are preferred by parents because of their
high quality. In addition, Biti’s products for children are sold in big supermarkets. Furthermore,
“Biti’s Tropical Paradise” is a product suitable for all genders, men and women. With the price
of 1,000,000 VND, we believe the product is suitable for most young people in Vietnam with
medium incomes. Moreover, Bitis's customer segment is always diverse in all regions of
Vietnam, both rural and urban. People living in urbanization areas are considered the most
accessible and sustainable segment while Biti’s stores in rural markets are likely to approach
more potential customers. The middle class and upper-middle-class are the most potential social
classes to purchase the new product. Middle-class citizens 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 might be devoted ex-users or brand new users but they
are always willing to buy a new pair of shoes which are fashionable and comfortable.
Furthermore, dynamic young people love exploring and have a passion for tourism. Also, they
want high-quality products at affordable prices. Their lifestyle perfectly fits our new product’s
spirit.

Behavioral segmentation is another crucial factor to identify and build potential customer
portraits. Regarding personal needs, our potential customers will have a tendency to pay
attention to the colors, styles, and comfort of the products. They will select shoes that suit their
personalities and lifestyle. Fashionable shoes with high quality and affordable prices will be their
best option. Communication needs are also a requirement that the product will provide. The
“Biti’s Paradise Tropical” will be comfortable for users to hang out with friends and family at the
weekend or during a holiday. It also enables youngsters to have fast movement in sporty events.
Moreover, the shoes not only support sports activities but also protect your feet from water
absorption. Therefore, the one who regularly exercises even in the rain or in puddles will be the
aiming customer for our upcoming product.

III. SITUATION ANALYSIS

A. Industry Analysis – Discuss:
i. Industry trends
With the fast pace of high technology, a wide range of global footwear brands keep up
with sustainable innovations with the aim of attracting more potential customers by adopting
modern recycling or environment-friendly materials, high-tech features. Because people's living
needs are higher, the trend of footwear development in general also has more demanding
requirements. As for functionality, the current trend is for shoes that are resistant to the weather
as well as possess durable materials in the environment, for instance shoes with good water
resistance when going out on rainy days. Moreover, fashion is the second most harmful to the
environment industry in the world. Emissions from factories, shoe waste and waste in production
lines are making these problems much worse. And for the past nearly a decade, in the process of
changing the footwear picture to become environmentally sustainable, brands in industry have
embarked on a commitment and had a tendency of creating more eco-friendly products. For
example, they started using reusable, biodegradable organic materials that do not harm nature,
cut down on most or all animal products, artificial skin, reducing the amount of water input –
chemical waste at the output. On top of that, The shoe industry indicates that an eye-catching
shoe that attracts buyers needs to possess a youthful, fresh color, a simple but no less
sophisticated style, making the shoes more gorgeous. Depending on a certain age, for example,
for teenagers, there will be a group of people who like simple black and white shoes, or there
will be a group of people who like slightly colorful shoes to increase highlights for themselves
when wearing.
ii. Competition

SPORTS SHOES PERCEPTUAL MAP

In general, Biti's has a relatively clear positioning strategy for its sports shoes. Currently, our
new product - Bitis’s Tropical Paradise’s positioning strategy is built according to two main
criteria: the price and quality of the product. Good quality is especially what makes our shoes
different.

In comparison with sport shoes from domestic brands (Ananas, Rienevan, Thượng Đình,...) or
Chinese brands, Biti’s Tropical Paradise sports shoes are leading in quality due to internationally
qualified materials & modern technology. Combined with the Vietnamese consumers’ mindset of
wanting long-lasting products, that is the reason why Biti’s is prioritizing quality. Moreover, It
can be seen that the price of our Biti’s sports shoes compared to domestic competitors is quite
high. This is also Biti's policy in pricing its products in order to show the premium quality of its
products through the price. As a result, Biti’s has built up a reputation of providing Vietnamese
high quality sports shoes in the customer’s mind.

In comparison with sports shoes from top international brands (Nike, Adidas, Puma, Vans,...),
Biti’s Tropical Paradise offers good value for money. For less than 1 million to several millions
VND compared to international sports shoes, you can already get a pair of high quality Biti’s
Tropical Paradise.
For the above reasons, we continue to follow the quality-focused positioning strategy for our
new Bitis’s sports shoes considering its success in the past. Moreover, income and living
standards are increasing, which will give rise to the propensity of using high quality products. In
addition, we can opt for the "more for the same" positioning strategy. This means we can take on
its contenders' more-for-more positioning, such as that of Nike or Adidas, by introducing new
sneakers with relatively similar quality at a lower price.

Moreover, we will consider other strategies because quality alone may not be enough to stand
out in the competitive market nowadays. Unique designs that can show customer’s personalities
and lifestyles will also be an important criteria in the customer’s decision-making. This is also
the aspect that Biti’s sports shoes are lacking compared to foreign ones. Recently, Biti's Hunter
products have displayed amazing colors, freshness, and contemporary designs, demonstrating
that Biti's is already catching on and attempting to breathe new life into the outer appearance of
their shoes. Therefore, we will also put more emphasis on designing beautiful, original and
diverse sneakers.
iii. Customer Profile
a. Demographic
Age: 15-25
Sex: All
Job Title: Students
Income: Middle to Upper-Middle
Education Level: Secondary school, High school and College

b. Psychographic
Lifestyle: Energetic, youthful
Goals: Seek shoes that are durable, comfortable for daily wear, aesthetic and trendy to suit their
style, good value for money
Habits: Hang out with friends, travel, engage in outdoor activities, take pictures, use Facebook,
Instagram, Tik Tok, You Tube
Values: Comfort, Durability, Aesthetic, Trend, Modern, Famous brands with good quality
Interests: Traveling, new experience, trends, fashion, new technology, influencers

c. Behavioral
Engagement: Medium
Readiness to Buy: Low to Medium
Purchasing History: Mostly new consumers or have purchased from Biti’s once or twice
Product Usage: Daily

d. Geographic
City: Big cities like Hanoi, Ho Chi Minh, Hai Phong, Can Tho, Da Nang.
Area: Mostly urban, rural
Country: Vietnam
IV. TARGET MARKET STRATEGY

Firstly, utilizing online communities is the best way to reach young people. According to
statistics by June 2021 of NapoleonCat (a tool to measure social network indicators), the total
number of Facebook users in Vietnam is nearly 76 million people, accounting for more than 70%
of the national population. Therefore, Facebook surely is one the most important tools to connect
to the lifestyle and habits of youngsters. Facebook groups are a fantastic way to create and
interact with a community with the same passions. We will create a group of people with healthy
lifestyles and always be energetic with outdoor activities with the name “Be healthy with Biti’s”.
Once we create a group, we will focus on educating the community and fostering trust. Then we
have our loyalty community, which will be a good way to market our new product - “Biti’s
Tropical Paradise” to the mass of people. In addition to Facebook, Instagram is another popular
social network in Vietnam with 10,717,000 users, of which the audience is mainly young people,
aged 18-24 (accounting for more than 30% of the total). Therefore, building a brand and
advertisement campaign on Insta by posting stories, images, and reels, is a close and friendly
approach to young people.

Secondly, telling a story about products by using short videos is getting trending. Video
is taking over. Under the impact of the COVID-19 epidemic, Tiktok is growing stronger and
stronger thanks to its superior features for users with high entertainment value. In Vietnam, since
the first lockdown at the beginning of last year, this social network has gradually become more
popular than ever and the number of users has not stopped increasing. Therefore, young people
are forming a habit of accessing products through short videos. We can produce short videos to
share customer stories, lifestyle tips, and sports activities as massages of new product campaigns.
It is the friendly, close-to-life content that is the most genuine way to connect with youngsters
and the image of the “Biti’s Tropical Paradise” will become more widely known with the
meaningful message behind it.

Thirdly, replicating the image of a tropical paradise with influencers and ambassadors is
an extremely effective way. The choice of famous person like Tiktoker Hua Phuong Ngan
always has a great influence on the community by forming a new trend, new hobby, and new
approach. Although this is a traditional marketing style, it is still one of the most effective
marketing methods. Besides, micro-influencers are also influential people to a certain customer
base, so this is also a source we cannot ignore to make the product's image spread widely.
Customers are also the power ambassadors of the brand. Posting customer feedback pictures in
the “Biti’s Tropical Paradise” is also a practical way of marketing to reach another customer's
heart.

Reference
Abdulkadir, A., Afriana, Wendra., & Azis, H. A. (2020). Footwear Export Competitiveness of
Indonesia-Vietnam. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 269-284. doi:
http://doi.org/10.15408/sjie.v9i2.15404.

McKenzie, B. (2020, April). Beyond COVID-19: Supply Chain Resilience Holds Key to
Recovery. Retrieved April 18, 2021, from
https://www.bakermckenzie.com/-/media/files/insight/publications/2020/04/covid19-glob al-
economy.pdf

World Footwear. (2019). Vietnam is already taking advantage of the US-China trade war
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World Footwear. (2020). 2020 edition of The World Footwear Yearbook. Retrieved from
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