REPORT ON INTERNATIONAL BRANDING PROJECT BITI’S EXPANSION IN CAMBODIA

FOREIGN TRADE UNIVERSITY

VJCC INSTITUTE

———***——–

GROUP 1

REPORT ON

INTERNATIONAL BRANDING PROJECT

BITI’S EXPANSION IN CAMBODIA

Student Name- ID:

Pham Minh Ngoc – 1715520076

Nguyen Ngoc Son – 1715520056

Nguyen Thi Ngoc Tram – 1715520069

Nguyen Phuong Thao Anh – 1715520007

Pham Le Thao Chi – 1715520012

Nguyen Ngoc Huyen – 1715520028

Ho Thi Yen Chi – 1715520010

Class: K56 JIB

Instructor: MSc. Doan Anh Tuan

MSc. Tran Hong Hanh

Hanoi

, November 11st, 2020

Tables of content

1

Contents

Page

Abstract

2

I. Introduction

3

1. About the brand Biti’s

3

2. About the market Cambodia

3

II. Market potential

4

1. Some potential markets evaluation overview

4

2. Cambodia market evaluation

5

III. Penetration strategy

8

1. 3C analysis

8

2. Focus products

9

3. Customer-based brand equity

9

4. Standardization and customization strategy

11

IV. Conclusion

13

1. Highlight

13

2. Limitations and reasons

13

References

14

ABSTRACT

Biti’s, one of the Vietnamese high-quality brands, has introduced its products

in Cambodia since the 2000s through a local distributor and won local customers’

trust. On September 7, Bitis launched its first official store in Phnom Penh, Cambodia,

marking its official presence on the market. However, in the current time, Bitis’ image

is not of high awareness of Cambodia people due to their preference of Thailand and

Chinese products. For this reason, in this report, our group has caught up with some

recommendation for the Bitis brand to penetrate this potential market in a more

successful way. The report is divided into four relative parts: Introduction, Market

potential, Market penetration and Conclusion. In the first place, we will give out the

overall understanding of the brand Bitis and the market Cambodia. To conduct the

second part, we will analyse how the potential Cambodia market is by comparing

among those markets such as China, Thailand, Indonesia and the USA. From that, we

will analyze some economic indicators of the Cambodia market. The third part is our

strategic solutions for Cambodia to implement including 3C models, customization

and standardization, building brand equity strategy. Last is our conclusion for the

whole report, we will synthesize the main and important ideas.

2

I. INTRODUCTION

1. About the brand Biti’s

Going along with childhood for many generations (8x, 9x) from sandals to

school, Biti’s have been a well-known footwear brand on the market and gain value in

the consumer’s mind. They step by step became the No.1 footwear brand in Vietnam

and was known as “ The people’s Brand ”, “ The Childhood Brand ”. Starting with 20

staff in 1982.

Only after 33 years, Biti’s have set up more 4000 retailer stores in Vietnam.

They can produce 25 millions pairs of shoes per year, and now their footwear

appeared in 40 countries, even USA, Australia. But for only focusing on the

product’s quality, skipping the renewable steps, not launching the new design in a

long time, and not concentrating on marketing, there was a period when Biti’s sunk

down. Until 2016, with the new mission of keeping the old value but bringing the new

atmosphere in modern design and colourful paint. They officially reveal the brand

new series called HUNTER – high essential sports shoes, suitable for the design and

style for Vietnamese consumers. Then spend 5M$ to re-create the technology and

marketing the new product. That marked a big point in Biti’s history in general, in

marketing from traditional methods to digital marketing

2. About the market Cambodia

Cambodia is a country in Southeast Asia that borders the Gulf of Thailand and

has neighbouring countries including Laos, Thailand, and Vietnam. Cambodia has a

mixed economic system, self-defined as a planned economy with markets, in which

the economy includes a variety of private freedom, combined with centralized

economic planning and government regulation. Cambodia is also a member of the

Association of Southeast Asian Nations (ASEAN).

Recently, Cambodia is hoping to attract more investors to its fast-growing

footwear industry with the establishment of the Cambodia Footwear Association

(CFA). An International Labour Organisation (ILO) report released in July showed

that Cambodia was among the world’s top 10 footwear producers, exporting more

than $1 billion worth of footwear products last year – up 19 per cent from 2017.

Cambodia’s garment and footwear exports were valued at $10 billion last year – up 24

per cent from $8 billion in 2017 according to the National Bank of Cambodia, with

growth in the footwear sector now outstripping the garment industry. The creation of

the CFA is expected to help create new opportunities for investment and production in

Cambodia and invite further research in the sector. And it is also a wonderful chance

for Bitis when focusing on Cambodian market.

3

II. MARKET POTENTIAL

1. Some potential markets evaluation overview

Country

Footwear

revenue

(2020)

(million$)

Footwear

average

revenue/

capital

(2020) ($)

Pros

Cons

Thailand

1 160

16.62

– The similarity in taste

and term of market

segments of consumers

– Vietnam’s largest

trading partner in

ASEAN

– Import tax incentives

– Footwear average

revenue/capital is still

low, and can exploit

more

– The market is very

competitive, there have

been many international

businesses entering

Thailand

– The low-priced segment

in Thailand is still full of

fake and poor quality

products.

Indonesia

3 916

14.48

– Import tax incentives

– The income is not high,

so the consumption of

goods is weak

– Regulations on

imported goods are not

transparent and

complicated.

– Top 5 footwear exporter

in the world