Case Study Analysis - Bitis Hunter PDF

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IntroductionBiti’s Hunter’s Tet 2017 campaign was a great success within the Vietnamese market, gaining 1 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, ...

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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’ decisionmaking. 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

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, 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).

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 Abratt, R. (1993). Market segmentation practices of industrial marketers. Industrial Marketing Management, 22, 79-84. Advertising, R. (2017). Biti's Hunter | Going Far To Be Truly Back | Case Study. Retrieved from https://www.youtube.com/watch?v=11RLlnjSp_w Almquist, E., Senior, J., & Bloch, N. (2016). The Elements of Value. Harvard Business Review. BrandsVietnam. (2018). Campaign: Biti's Hunter - Di de tro ve. Retrieved from https://www.brandsvietnam.com/campaign/209-Bitis-Di-de-tro-ve Breu, M., Francois, M., Kuijpers, D., & Sawaya, A. (2019). Seizing the fast-growing retail opportunity in Vietnam. Retrieved from https://www.mckinsey.com/~/media/mckinsey/industries/retail/our %20insights/how%20companies%20can%20seize%20opportunity%20in%20vietnams %20growing%20retail%20market/seizing-the-fast-growing-retail-opportunity-in-vietnam.pdf

Cao, H. (2017). Top clip quang cao Tet 2017 thanh cong nhat tren social media. Brands Vietnam. Retrieved from https://www.brandsvietnam.com/congdong/topic/4751-Top-clip-quang-cao-Tet2017-thanh-cong-nhat-tren-social-media Concentrated marketing strategy: Saviour of small businesses. (2016, Jan 04). Daily Mirror. Retrieved from https://search.proquest.com/docview/1752964734?accountid=63189 Dalgic, T., & Leeuw, M. (1994). Niche Marketing Revisited: Concept, Applications and Some European Cases. European Journal of Marketing, 28(4), 39-55. doi:10.1108/03090569410061178 EuromonitorInternational. (2018). Sportswear in Vietnam. Retrieved from https://app.bitisgroup.vn/FilePB/sportswearinvietnam.pdf Grant, I. C., & Waite, K. (2003). “Following the yellow brick road” – young adults’ experiences of the information super-highway. Qualitative Market Research: An International Journal, 6(1), 48-57. doi:10.1108/13522750310457375 Hiam, A., & Schewe, C. D. (1993). Market segmentation: Can it work for your company? Incentive, 167(1), 65. Kantar. (2019). Insight Handbook 2019. Retrieved from https://www.kantarworldpanel.com/vn/news/Insight-Handbook-2019#downloadThankyou Kotler, P. T., & Armstrong, G. (2017). Principles of Marketing, Global Edition (Vol. 17th): Pearson. McNeal, J. U. (1992). Kids as customers: A handbook of marketing to children. New York, NY: Lexington books. Nelson, M., & McLeod, L. (2005). Adolescent Brand Consciousness and Product Placements: Awareness, Liking and Perceived Effects on Self and Others,” in: International Journal of Consumer Studies, 29(6), 515-528. International Journal of Consumer Studies, 29, 515-528. doi:10.1111/j.14706431.2005.00429.x Redder. (2016). Biti's Hunter - Thang trai tim, thang tat ca. Brands Vietnam. Toften, K., & Hammervoll, T. (2013). Niche marketing research: status and challenges. Marketing Intelligence & Planning, 31(3), 272-285. doi:http://dx.doi.org/10.1108/02634501311324618 Uyen, D. (2018). The Brief #2: Biti’s Hunter – Đi đ ểtr ởvềề. Brands Vietnam. World Bank & Ministry of Planning and Investment of Vietnam. (2016). Vietnam 2035 : Toward Prosperity, Creativity, Equity, and Democracy. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/23724/VN2035English.pdf...