I.

The marketing mix in marketing strategy (4Ps – Product, price, place

and promotion)

A few solutions for the Marketing Mix plan of the company’s Biti’s
Hunter product from 2017 to 2018.

Life Cycle of Biti’s Hunter Shoes:

The life cycle of a product usually has 4 main stages: deployment, growth,
saturation and degradation.

According to researches, the group found out that Biti’s is currently in a period of
growth and is about to reach saturation.

1. Target Market - Marketing objectives:

In order for a Vietnamese sports footwear manufacturer to thrive in Ho Chi Minh

City Market (in particular) and across the country (in general), the marketing plan of Biti’s
Hunter footwear product of Biti’s company must meet the following requirements:

- Regarding sales and output:

The company must strive to achieve 50% higher revenue in 2018 compared to 2017.
Regarding the number of products consumed, the company aims to increase production to
45% in 2018.

- About product quality:

Increasing output must go hand in hand with providing high quality products and ensuring
to meet customers' needs.

Ensure the product details to match the needs of customers and achieve the best efficiency.
 - About customers and partners:

Try to maintain sales volume from customers, re-enter into contracts with partners who are
distributors in the distribution network or online distributors.

Building customer relationships, 60% of customers come back after the improved product
line is launched.

Expanding the target market to a new target group of children when becoming a strategic
partner of Disney multinational corporation in Vietnam.

- About branding:

Facebook Fanpage: Biti’s Hunter Vietnam gained 80,000 likes in 2018.

Ensure the operating budget for advertising reaches VND 4 billion / year from 2018.

2. Product

To compete with other brands of sports shoes on the market nowadays, especially
after the successful launching of Biti's Hunter products, the appearance of some new
competitors in the market is very demanding for Biti's Hunter to improve or innovate a
whole new product line.

In this report the group proposes that the company should improve the products
that have been successful in the market and are well known. In addition, the team
proposed that Biti’s should consider trial experiences for kids aged range from 7 to 13
years old to attract younger consumers and their parents.

a. Improve product quality

The product will be improved based on the designs of the Biti’s Hunter Originals
product line and some other details used from the Biti’s Hunter X product line.

Innovative products are made to overcome the weaknesses that customers may
have already reflected; and at the same time, to increase fashion statements in line with
world trends. Some of the product details will be changed (from the material and design as
well as used details) to increase the ability to complement the user.

Design and material: Use Liteknit technology (how Biti’s Hunter calls its Knit
technology).

Knit is a new technology applied to the upper face of the shoe, using a special soft
yarn-like wool but very firm and elastic. With this Knit technology, the fibers are
scientifically knitted to help create a lightweight shoe body and hugs the entire foot like a
pair of socks. The Liteknit yarn stretches according to foot movement for optimum
flexibility and comfort when moving. Liteknit can completely replace traditional shoe
materials such as leather, fabric,...

Retaining the Air Mesh detail in the upper face of the shoe helps to increase the
ventilation of the product while performing as a highlight, it also helps the shoe to
maintain a sturdy structure, suitable for going out on long distance, travels…

Image 15. Biti’s Hunter LiteKnit technology

The next improvement detail will be the special TPU plastic frame (inspired by the
Biti's Hunter X series) in the heel cage (Heel Cage), which helps the shoes look more
modern and trendy, while also helping the shoes to firmly hug the feet more effectively.
The quality of the hard TPU hard plastic frame is equal to that of Adidas Ultra BOOST
product line which is the famous product line of Adidas brand for athletes.
 Image 16. Biti’s Hunter Heel Cage designs

Sole:

The insole of the shoes uses 6-point technology, which helps to soles the foot and
provides a smooth experience for the consumers, minimizing pain during prolonged
movement. In addition, the pads are made with antibacterial woven fibers, which help
prevent the formation of bacteria during long movements, reducing the likelihood of
odors.

Soleplate:

Finally, the sole of the shoes uses Pylon material, which is smooth, light weight
and helps reduce the cost of the shoe. Combined with the sole of the shoes are a few
rubber details that help increase grip, suitable for all terrain and wear resistant when used
regularly. With this base, the shoes promise to give you the gentle feel typical of the Biti’s
Hunter product line but is very solid in slippery terrain.
 Image 17. Biti’s Hunter Pylon soleplate

“Hugs the entire feet like a pair of socks”:

As mentioned above, the use of Liteknit technology and the addition of TPU
plastic frame at the heel of the will help the users feel the embrace. The certainty from the
moment they put onto their feet, the whole foot will be held comfortably thanks to the very
good ventilation of Knit technology.

Also, the tongue designs (the tip of the shoe will protrude) in the Originals product
line is being fused with the upper by technology Knit had help support as well as protect
the nose and toes during jogging, helping users feel light and avoid fatigue.

Color scheme:

The new product will have 5 main colors: Gray, White, Red, Black and Blue
because these 5 colors are suitable for various purposes such as going out, going to the
gym and in line with the trend of the "Sneaker Heads” these days.

Also during this period, Biti’s products should be manufactured more and more
continuously, to avoid out of stock and product shortages that could easily lead to
customers choosing another sports shoes brand.

Offer trial experiences for kids from ages 7 to 13

In the Sports Footwear Market today, many big brands do not only offer products
for adults but they also offer product lines for younger users aged from 7 to 13. The reason
to why our group recommended this kind product lines is that, the needs of many
Vietnamese families nowadays are to improve their quality of living, the demand for
sports practice is growing and there are only some brands on the market today that
targeting children. However, because of the limit sources of children footwear, the price is
still high, there is no assurance of a good quality product but the price is guaranteed.
 In terms of design, the products will be designed similar to the version for young
people but the textures will be simpler, suitable for young age with diverse set of colours
to attract children.

3. Price
 Prices for individual customer purchases:

In general, the price of Biti’s Hunter product lines is suitable for those with mid-
range income with prices from: 450,000 VND to 1,000,000 VND for a pair. The price of
Bitis’ Hunter is generally low compared to some major competitors in the sports shoes
market today such as Nike, Addidas ...

The price of Biti's Hunter products is built based on production costs. So, in order
to improve the product quality but still ensure costs, the company is required to reduce the
cost of importing raw materials from foreign partners by cooperating with local companies
to produce and reduce input costs.

Chart 3. Survey result of different price range that customers are willing to pay for a good to high
quality pair of Vietnamese shoes
 Chart 4. Survey result of the reasons why Biti’s Hunter is so successful

With the pricing strategy proposed by Biti’s group, they should build their products
priced below 1,000,000 VND, so that the products offered by Biti’s Hunter will attract
more consumers, especially young people with average income.

 Corporate customers (B2B)

For Biti’s institutional customers, there are two types: Biti’s dealers and Biti’s
authorized agents. For each store the company has different policies or incentives to
maintain these customers:

For belt stores:

There are different discount rates for products such as foam slippers, flip-flops,
shoes, sandals,… that will have different discount rates with Hunter product lines. The
company will offer 24% discount for customers when they purchased a Biti’s Hunter line.

The team recommends that the company maintain this discount for its agents, and
if the agents have revenue increase of more than 1.5 times, the company should have a
bonus policy of percentage of revenue exceeded the target goals.

For stores specializing in dealing in Bitis products:

Just like the agencied, with each product there will be different discount rates. For
Hunter product line, the company has a higher discount of about 27%.

The group also suggested that if these stores have a revenue increase of about 1.5
times, they should have a bonus discount of about 0.2%.

For supermarkets and trade centers:

Hunter offers a discount of 24% on their sports shoes.

 And if the sales exceed the company's targets, the group recommends rewarding
2% of the sales exceeded the target.

 The suitable price for a testing/trial product

With the new Hunter Kid trial product, the price will be much different from the
Hunter product for young people. Because it is for the little ones, the materials being used
to manufacture will be less than the product lines for adult. So these products should be
marketed at a price of 300,000-400,000 VND, with the proposed price, the product can
meet the affordability of the Vietnamese families.

4. Place
Biti’s Hunter's target customers are nationwide, so it is important for the
company’s products to be distributed everywhere in the country.

Currently, the number of stores that Biti's covers is relatively large in the market
with 7 branch centers, 68 marketing stores and more than 1,500 retail distribution centers,
showing that the distribution of the company's products has done amazingly well. But
there are also some issues that the company has not done well in distributing products to
consumers as:

- Some models of Biti’s Hunter products are often out of stock, so some customers
who arrived at Biti’s agencies cannot purchase the product.
- The cooperation with many individuals to expand the store as the intermediary of
distribution of the company also takes place easily with a number of regulations that are
not yet thorough, so the company's products when distributed at Outlying stores often have
higher prices.

 Proposing solutions for problem solving:

The company's agents need to have a strict management system for the number of
samples as well as the size of shoes available at the store. When the store has less than 50
samples (the proposed group), it is necessary to notify the company immediately to
transport the sample as well as the timely quantity to best serve customers. The product
samples are in high demand, the company should produce in large quantities to meet up
the requirements.

The company should choose units capable of meeting the needs of the company. In
addition, regulations should be more closely drafted, which should include regulations on
product prices as well as policies for each region.

The e-commerce sites that the company works with also need to assure the product
quality, as well as pricing, to ensure that products are aligned.
 5. Promotion

A marketing strategy is one of the campaigns that is carried out throughout the
company's development. Therefore, it requires Biti’s Hunter to build a long-term
promotion and clear activities with specific goals such as: "What needs to be done?" And
"How?". In the promotion process, Biti's has built up the values with customers, as a brand
that has been built by Vietnamese for 35 years and is a company associated with
generations of Vietnamese.

Regarding the brand ambassador for the proposed product group, Biti’s continues
to choose Son Tung MTP as a brand ambassador because the singer's ability to attract
young people is enormous. Besides previous successful campaigns such as "Di de tro ve"
or "Di roi se den" at the beginning of last year. Then in the new year of 2018, Biti’s needs
to build an attractive campaign like "Di tu Qua Khu ve den Tuong lai".

a. Advertisements

Advertising is an effective tool and the fastest means to introduce products to

customers. This is also an important factor that helps the company's brand reaches people
and increase sales quickly. In addition, advertising can also be considered as a way to
attract customers of competitors. The company should use the following advertising tools:

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

as big supermarkets such as Big C, Co.op Mart, Lotte Mart. Although this form of
advertising is not high cost, its effectiveness is quite good.
- Advertising on TV with high coverage such as HTV, VTV ... Currently on these
channels, the advertising for sneakers is very limited and almost none. This can also be an
opportunity to easily introduce the product to consumers. Besides the advantages, the cost
to slideshow a fragment of advertising on is relatively high. If the company wanted to
advertise on these channels, it should choose to advertise in the middle of the hour of
programs that may attract the largest amount of young people.
-