Ananas international marketing plan in thailand market

Nội dung text: Ananas international marketing plan in thailand market

1. MINISTRY OF FINANCE UNIVERSITY OF FINANCE AND MARKETING INTERNATIONAL MARKETING ANANAS INTERNATIONAL MARKETING PLAN IN THAILAND MARKET Lecturer: Ngô Minh Trang Group : Lê Nguyễn Mai Anh Nghiêm Thị Thanh Phương Nguyễn Thị Thu Phương Nguyễn Ngọc Thu Phương Vũ Trung Anh Sang
2. TABLE OF CONTENTS 1. Introduction 1 1.1. Brief overview of the company 1 1.2. Company’s main product 1 1.3. Target country: Thailand 2 2.Research Methodology 2 3.Situational Analysis 2 3.1. Company analysis 2 3.2 Organization Assets and Skills 2 3.3. Market Analysis 3 3.3.1 Business Environment Analysis 3 3.3.2. Nature of Demand 14 3.4. Competitor Analysis 15 4. SWOT Analysis 17 5. Objectives 19 6. Recommended Marketing Strategy 19 6.1 Target Marketing Identification and Segmentation Strategy 19 6.2 Marketing positioning 20 6.3 Market Entry Strategy: 20 → Exporting: 20 7. Marketing Mix Strategies and Tactics 20 7.1 Product 20 7.1.1. Core product: Vulcanized shoes 20 7.2.2. International product mix decisions 21 7.2 Price 23 7.3 Place 24 7.4. Promotion 25 7.4.1. Advertising 25 7.4.2. Sale promotion 27 7.4.3. Public Relation: 27 7.4.4. Promotion budget 28 8. Planning Budget 29 9. Implementation and Control 30 10. Reference 36
3. LIST OF TABLES TABLE 3.1- GDP THAILAND 7 TABLE 3.2 – AVERAGE SALARY 8 TABLE 3.3- HOUSEHOLD CONSUMPTION EXPENDITURE 9 TABLE 7.1- PRICE FOR EACH LINE 25 TABLE 7.2- CHANNEL 27 TABLE 7.3- PROMOTION BUDGET 32 TABLE 8.1 - BUDGET 33 TABLE 9.1- CONTROL 35
4. LIST OF FIGURES FIGURE 3.1 – UNEMLOYMENT RATE 10 FIGURE 7.1- VULCANIZED SHOES 20 FIGURE 7.2 - POSTER 22 FIGURE 7.3-ANANAS BOX 23 FIGURE 7.4- ANANAS BOX 24 FIGURE 7.5- ANANAS BOX 24 FIGURE 7.6 – POSTER SUBWAY 29 FIGURE 7.7- POSTER SUBWAY 29 FIGURE 7.8 – ANANAS MASK 30
5. 1. Introduction 1.1. Brief overview of the company Ananas was first launched in 2012, is a brand belonging to Footwear Corporation Dong Hung Group - the "big man" in the shoemaking industry. However, the company's marketing strategy at that time was not effective, causing the brand to fail for the first time. It was not until 2017 that Ananas finally turned the tables, started to be recognized and held its position among the young generations. As Ananas's target customers aging from 18 to 25 who are energetic, dynamic and always in motion, Ananas brand’s top priority is customer's convenience and comfort when wearing our shoes but still trendy and being able to reflect their own personalities. Hence, "high quality" and "reasonable price" are core values that we offer to our dear customers. With the message DiscoverYOU, Ananas wants to remind everyone that "Whatever you do, you need to know yourself and know what you want". The more you understand who you are, the easier life will be. Ananas is also on the journey to discovering the brand itself, finding our originalities, and building our own path. 1.2. Company’s main product Ananas product's are vulcanized shoes and sneakers. Vulcanized is a long- standing shoe manufacturing method, reflected in vintage shoes with rubber soles and minimalist designs such as Converse Chuck Taylor All Star, Vans Old Skool. This type of shoes is considered an everyday sneakers for its basic design and concept. Customers can wear it to school, to work, friends meetings or even their skateboard practices. By using this material and design, Ananas wants to integrate sustainability into our products, focusing on the original attributes of a shoe but still keeping up with the current fashion trends, as it is the brand lifestyle that we are aiming for. All of Ananas products are manufactured by our parent brand Dong Hung Group and directly distributed at Ananas stores in Ho Chi Minh City. In addition to the 4 main shoe lines currently available in stores which are Basas, Vintas, Urbas and Pattas, Ananas also sells other clothing products. 1
6. 1.3. Target country: Thailand According to the ASEAN Consumer Survey conducted by HKTDC Research, ASEAN consumers, including those in Thailand, are willing to spend more on better quality products and have a strong sense of personal style. For international brands, Thailand is a key market among the developing Asian countries, not only because of its growing demand from the emerging middle-income class, but also the country’s flourishing tourism sector. Also, Thailand is a South East Asian country with close proximity to Vietnam. Hence, the two countries partly share different things in common including climate characteristics, genetic traits, religions and most importantly, culture. 2.Research Methodology Secondary data resources on Internet 3.Situational Analysis 3.1. Company analysis Ananas was founded in 2012 under Dong Hung Footwear Group. Dong Hung Footwear Joint Stock Company was established on October 1, 1992 with the mission to provide Vietnamese and international consumers with high-quality footwear products at reasonable prices. With our modern factories and advanced shoe production process, Dong Hung Footwear Group aspires to be a companion of consumers around the world in their journey of discovering life. Moreover, Dong Hung Footwear Group has more than 20 years of experience in manufacturing vulcanized shoes and being the main manufacturer for not only domestic but also foreign major brands such as Puma, Reebok and Burberry. Over nearly 30 years of development, Dong Hung is in the top 30 Vietnamese leather shoe manufacturing enterprises, with a total annual export turnover of more than 150 million USD and more than 10 million pairs of shoes. Therefore, we are confident that Ananas possesses the ability to provide customers with high-quality products which absolutely not inferior to any other brands. 3.2 Organization Assets and Skills ❖ Assets: 2
7. Over the past 3 years, Ananas has 9 stores in Ho Chi Minh City. Customers in other cities and provinces could also purchase our product through Ananas's website and Facebook fanpage. All Ananas products are made by parent brand - Dong Hung footwear - with more than 20 years of experience in footwear manufacturing and have cooperated with many large and small, both domestic and foreign shoe brands. Currently, Dong Hung Group has 5 member companies, 2 affiliated branches, and a joint venture company associated with business components, including: shoe production, shoe sole production. , shoe production supporting stages, logistic activities, footwear supply and distribution on e-commerce channels, retail stores etc. ❖ Skills: Ananas and parent firm - Dong Hung Footwear Group has constantly researched and updated the latest technology, manufacturing methods. With factories meeting international standards, modern production processes, product safety are guaranteed by limiting chemicals used in production in accordance with EC 1907/2006 (REACH). Dong Hung Group also has long experience in the field of footwear production and excellent human resources with professional skills. Before being delivered to consumers, each Ananas product has to go through a lot of meticulous steps from product design, stitching and evaluation to create perfect shoes with the best quality. All manufacturing factories are equipped with professional wastewater treatment systems in compliance with the Vietnam laws and regulations. 3.3. Market Analysis 3.3.1 Business Environment Analysis 3.3.1.1 Political and Legal Environments Thailand is one of almost 40 constitutional monarchies that exist in the world today. Normally, an elected Prime Minister heads the government, while the head of state is the hereditary monarch.Thailand is one of almost 40 constitutional monarchies that exist in the world today. Normally, an elected Prime Minister heads the government, while the head of state is the hereditary monarch. In Thailand, the King exercises his 3
8. legislative power through the Parliament, executive power through Cabinet and judicial power through the courts. Thailand is now facing continuous anti-government protests by students demanding political reforms that also include the role of the monarchy in politics. The protests were initially triggered by the dissolution of the Future Party (FFP) in late February 2020, which criticized Prayut, changes to the Thai constitution. Persistent political tensions can undermine the credibility and effectiveness of the institutional framework, especially if they hinder the ability of authorities to effectively enforce macroeconomic policy such as support finance during the Covid-19 epidemic. From there, it could undermine the interest of foreign investors and cause difficulties for businesses to thrive in Thailand. The Foreign and Commonwealth Office (FCO) assesses that terrorists are very likely to try to carry out attacks in Thailand. Since 2004, there have been almost daily attacks in Thailand’s deep south, including arson, bombings and shootings. Targets have included civilians and members of the security forces, government offices, tourist hotels, discos, bars, shops, marketplaces, supermarkets, schools, transport infrastructure and trains. Corruption hinders economic and social development also needs to be taken seriously. Thailand ranked 99th with the Philippines (out of 180 countries and regions) in the Corruption Perceptions Index 2018 of Transparency International on Corruption 2018 (Bangkok Post, 2019). Most sectors in Thailand are at high risk of corruption, and as a result, a lot of work is needed to deal with it. However, Thailand’s periodic political volatility tends not to affect day-to-day business operations. Although Thai politics is sometimes unstable, the administration of the country is very sound and all political parties in Thailand, without exception, are pro-business. *Legal Consumer Protection Act (1979) The right to be informed Goods, domestic and imported, must bear appropriate labels description, name or trademark of manufacturer, location of manufacturer, information of the goods, and marks indicating countries of 4
9. origin (imports) Labels are to be accurate and not misleading. Advertisement must be truthful, honest, decent.[5] Unfair Contract Term Act (1997) Protects consumers with little ability to negotiate or negotiate Commercial Competition Law (1999) Maintaining free and fair competition of markets and discouraging business operators from engaging in anti-competition activities 3.3.1.2 Regulatory Environments Thailand belongs to the 10-member Association of Southeast Asian Nations (ASEAN), a regional free-trade and economic bloc comprising a total population of 600 million. Thailand remains an attractive destination for foreign investors and business owners seeking out new markets to open a new or expand an existing business. Nevertheless, those who wish to establish majority or wholly foreign-owned business entities need to be aware of Thailand’s laws and regulations regarding foreign investment. ● Limits on Foreign Control and Right to Private Ownership and Establishment A foreign entity seeking to engage in any of these business activities must first obtain a Foreign Business License (FBL) from the Foreign Business Committee and the Director-General of the Department of Business Development (DBD). There are also cases for exemptions or special permissions from the Board of Investment or Industrial Estate Authority of Thailand, as well as through free-trade agreements and treaties between Thailand and certain nations. The FBA details the types of business activities reserved for Thai nationals. Foreign investment in those businesses must comprise less than 50 percent of share capital, unless specially permitted or otherwise exempt. Restricted businesses in this list include: accounting, legal, architectural, and engineering services; retail and wholesale; advertising businesses; hotels; guided touring; selling food and beverages; and other service-sector businesses. A foreign 5
10. company can engage in List 3 activities if a majority of the limited company’s shares are held by Thai nationals. Any company with a majority of foreign shareholders (more than 50 percent) cannot engage in List 3 activities unless it receives an exception from the Ministry of Commerce under its Foreign Business License (FBL) application. Aside from these general categories, Thailand does not maintain a national security screening mechanism for investment, and investors can receive additional incentives/privileges if they invest in priority areas, such as high-technology industries. ● Laws and Regulations on Foreign Direct Investment The Foreign Business Act (described in detail above) governs most investment activity by non-Thai nationals. Other key laws governing foreign investment are the Alien Employment Act (1978) and the Investment Promotion Act (1977). ● Competition and Anti-Trust Laws The Office of Trade Competition Commission (OTCC) is an independent agency and the main enforcer of the Trade Competition Act B.E. 2560 (2018). The OTCC comprises seven members nominated by a selection committee and endorsed by the Cabinet. The government has authority to control the price of specific products and services under the Price of Goods and Services Act. The MOC’s Department of Internal Trade administers the law and interacts with affected companies. 3.3.1.3 Economic Environments Thailand is the second largest economy in Southeast Asia after Indonesia. According to IMF, it is expected that growth will be at a moderate rate, accepting all stable values in the country. Investment firms are forecast to remain the main driver of growth over the next few years, in line with the host company's infrastructure plan to attract private individuals. The capital Bangkok has become the centre of economic activity and the most prosperous part of the country, accounting for about 60% of national GDP. Thanks to its good infrastructure, the city is competing with Singapore to become a regional hub for air travel within Southeast Asia. The relationship between Vietnam and Thailand is constantly developing steadily and well in all fields, especially in the economic and commercial sectors. Vietnam - Thailand is a member of many regional and international forums, such as: ASEAN, ASEAN Economic Community (AEC), Asia-Pacific Economic Cooperation (APEC). According to ITPC, Thailand is 6
11. currently the largest trading partner of Vietnam in ASEAN. Particularly, Vietnam's merchandise exports to Thailand account for about a fifth of the total exports to ASEAN. Inflation drops to 0.7% in 2019 and is estimated to drop to -1.1% in 2020 and will reach 0.6% by 2021 (IMF forecasts the World Economy in April 2020). Public debt remains relatively stable in 2019, according to IMF estimates of 42.4%, although it is expected to increase in 2020 and 2021 to 43% and 43.8%, respectively. Despite high debt, household use standards, amounting to 49% of GDP in 2019 (Central Bank of Thailand), is still forecast to be high, reflecting real income levels. The National Strategic Plan (2017-2036) focuses on improving the business environment, enhancing the country's competitiveness and long-term economic efficiency. TABLE 3.1- GDP Thailand ● Income distribution Although wealth has increased in Thailand, not everyone has received a share of this growth. Specifically, 91.7% of adults are in the group of assets below $ 10,000, 7.5% in the group from $ 10,000 to $ 100,000, and 0.7% in the group from $ 100,000 to $ 1 million. Only 0.1% are members of the wealth group over $ 1 million. Thailand's middle class is emerging and is expected to make up about 13% of all households. This translates into the high value of income inequality of 90.2 on the Gini coefficient. ● Average Salary Percentage of people Earn this salary or more 7
12. 5% THB 3,733,000 12% THB 2,663,076 23% THB 1,788,268 58% THB 815,776 82% THB 476,011 94% THB 249,070 98% THB 123,380 TABLE 3.2 – Average Salary ● Consumer spending Growing domestic income is generating optimism among the population and increasing consumer demand for a wide variety of products. With the increase in income, consumers - especially the richer ones - have spent more on experiences, such as eating out and traveling. The luxury market is also growing domestically. When it comes to buying luxury, consumers prefer to buy directly than buy online, as they say they can't make any buying decisions without seeing the product in person. Price, quality and availability of service are the main selling factors in Thailand. However, consumers are willing to pay more for the brands they love, and they rarely switch brands - even if the prices are better. Thai consumers are the most brand- conscious and loyal in Southeast Asia. They also spend more than their neighbors, which is reflected in their higher debt levels. Furthermore, consumers tend to like and shop impulsively, instead of saving their money - as is common in other Southeast Asian countries. ● Household Consumption Expenditure Sector Percentage 8
13. Food and beverages 39.6% Housing 29.3% Transport 10.9% Energy 3.8% ICT 3.5% Clothing and footwear 2.8% Personal care 2.5% Health 1.3% TABLE 3.3- Household consumption expenditure ● Inflation rate ( ản tin bộ công thương. According to TPSO, Thailand's CPI, a measure of overall inflation, in June fell 1.57% from the same period last year, after falling 3.44% in May - the highest drop in nearly 11 years. Generally for the first six months of this year, Thailand's overall inflation was 1.13% and core inflation was 0.32% (Thailand's core inflation in June was -0.05%). Thailand's deflation is likely to be worse than initially expected, after the Southeast Asian country's consumer price index (CPI) fell for the fourth consecutive month in June 2020. ● Unemployment Thailand's unemployment rate was 0.69% in 2019 according to the latest data from the World Bank. The Thai unemployment rate increased by 0.02% in 2019 compared to 0.67% in 2018. Statistics of Thailand's unemployment data up to 2019 are in tables and graphs. During this period the unemployment rate in Thailand peaked in 9
14. the year with 3.40% of the working age population without a job. Lowest in the year with an unemployment rate of 0.49%. FIGURE 3.1- Unemployment Rate ● Interest rates (base lending rates) On November 6, the Central Bank of Thailand (BoT) cut its prime rate down to 1.25%; This is the second basic interest rate cut in the past three months to boost economic growth and curb the baht's appreciation against the dollar. Five out of 7 members of the Monetary Policy Committee under BoT voted for this decision. The Thai government is stepping up the monetary and financial management measures to boost the economy, which is currently at low growth. The Thai baht's value has risen by around 9% against the dollar over the past year and has become the most bullish currency in emerging markets. This trend has constrained Thailand's exports and tourism, with an economy quite dependent on the trade sector. 10
15. According to the new data released by the Ministry of Commerce of Thailand, in October, the consumer price index (CPI) of this country increased by 0.11% over the same period last year, lower than the previous month. and make the inflation rate in this Southeast Asian country at the lowest level in 2 years. → Overall, the economy is in good condition thanks to the current account surplus, adequate foreign exchange reserves, low unemployment, and relatively low public debts enabling the use of fiscal policy as an economic stimulus. Still, all sectors of the economy should work on risk management and boost competitiveness in the face of today’s structural changes such as the use of automation in many industries, consumers’ changing behavior in everyday spending, and higher business competition from both domestic and international firms. Despite the Thai economic stability, these factors may have a negative impact on households, labors, and businesses that cannot adapt in time. 3.3.1.4 Social and Cultural Environments ❖ Social The total population of Thailand, as of December 2019, is around 69 million. There is no official state religion in the country; however, Buddhism is the most widely practised religion. Other major religions are Islam, Christianity, and Hinduism. The life expectancy for men is 71 years, while 79 years for women. The major language in Thailand is Thai. The people of Thailand are generally very friendly. They are very hard working as well. Thailand is a diverse country and tensions between ethnic groups are few and far between as people love to live freely and practise their faith as they wish. Many Thai women are very educated, and tech savvy; hence well-paid. Thai consumers are very brand conscious and do not mind paying some extra for their favourite brands. The demand for luxury products such as smartphones, jewellery, designer watches & sunglasses, and luxury cars is on the rise. However, Thai society faces some big social challenges. For example, adolescent pregnancy, ageing population, human trafficking, and corruption to name but a few in this regard. 11
16. ❖ Cultural Language: The main language used in Thailand is simply called Thai, although it can also be referred to as Siam or Central Thai. Thai is the official language of the country and is widely used in government and education. Thai is part of the Tai-Kadai family, and is closely related to Lao, the main language spoken in Laos, so the two can understand each other for the most part. There are different dialects of Thai that are spoken across different regions of the country, including Southern Thai and Northern Thai. There are also a wide range of minority languages spoken across Thailand, including Khmer, Malay and various Chinese dialects, in addition to many tribal languages, many in that number are in decline. Religion: Religion is a core feature of Thai life. While Buddhism is regarded as the national religion, practised by more than 90 per cent of the population, Islam, Christianity, Hinduism and other faiths are also represented. Thailand has nearly 94.6% Buddhism, 4.3% Islam and 1% Christianity, mainly belonging to the Theravada school (including the Traditional Thai Forest and the Dhammayuttika Nikaya and Santi Asoke sects). In addition, there are also Muslim minorities in Thailand (5-6%), Christians (1%) and other religions. Buddhism in Thailand is strongly influenced by the traditional beliefs related to ancestral and natural spirits, which have been incorporated into Buddhist cosmology. Most Thais have installed divine houses (Thai: ศาล พระภูมิ; RTGS: san phra phum), miniature houses outside their dwelling, where they believe that family spirits live. They offer food and drink to these souls to make them happy. If these souls are unhappy, it is believed that they will dwell in the house and cause chaos. These god houses can be found in public places and on Thai streets where the public makes offerings. Customs: One of the most distinctive features of the Thai custom is bow (Thai: wai), almost like the way of bowing by the Indians (Hindi: namaste). This gesture is used when meeting, breaking up, or confirming, with various forms depending on the person's 12
17. social position, but in general it is usually a ceremony-like gesture with hands clasped and head down. Another Thai custom is bun khun, which is indebted to the births, as well as guardians, teachers, and people who have taken care of them. This custom includes emotions and actions in reciprocal relationships. In addition, stepping on Thai baht is also extremely disrespectful because the first image of the king appears on Thai coins. When sitting in temples, people should avoid pointing at pictures and statues of Buddha. Temples in Thai residences are built in such a way that the feet are not pointed directly to the symbols of worship - for example, do not place a temple for a bed if the house is too small, there is no other place to place a shrine. Thailand is a collectivist society, which dictates that the needs of the group are placed ahead of those of the individual. Subtlety and indirect forms of communication are highly valued in Thai society which, as in the case of many others across Asia, is hierarchical. Individuals are viewed as being either higher or lower in status, measured between one another in relative terms – younger or older, weaker or stronger, junior or senior, subordinate or superior, and rarely equal. As a result, young Thais grow up needing to learn appropriate behaviour within the confines of the existing hierarchy, taught to recognise the difference between ‘high place’ and ‘low place’, particularly in regard to the roles in society of adults and children, or teachers and students. In such a hierarchical society, status is important. Such a ranking can be determined simply by someone’s clothing and general appearance, their age or job, education, family history, as well as their wealth and social connections. Status dictates that subordinates will generally listen to and accept advice and direction from his or her superior without question. But this courtesy imposes on superiors an unstated obligation to lead and to be mentors in return. 3.3.1.6 Technological Environments Thailand is gradually becoming a country with advanced technology. Government encourages new organizations to adopt technology. The investment of Thai companies into new change and corporate infrastructure is also worthy of attention. 13
18. Therefore, the country is expected to witness an increase in e-commerce and similar technology activities in the coming years. Thai companies now provide technology products and services overseas. For example, CCS Advance Tech (a Thai company) manufactures and supplies aerospace and aerospace components to global companies including Boeing and Airbus (Lowe, 2019). Thailand is also the Southeast Asian country at the forefront in the use of social media. Facebook, YouTube, Line (a Japanese company), Instagram and Twitter are the most used social media in the country. However, trustworthy activities are mainly focused on Bangkok. 3.3.1.7 Natural Environments Thailand is a country rich in natural resources, has played an important role in supporting local livelihoods and promoting economic growth. Management of natural resources and the environment has not been effective, and has revealed the conflict between environmental conservation and economic development. Natural disasters tend to occur frequently, threatening agricultural production, food and energy security, health and quality of life. Rapid economic development has affected natural resources. Biodiversity loss, air and water pollution, deforestation, water scarcity and desertification are some of the major environmental challenges facing Thailand today and protecting the environment has become one of the top priorities of the country. 3.3.2. Nature of Demand Sneakers and athletic shoes play an important role in footwear. Thai people, especially young people, normally like to wear casual shoes and simple sandals, and many of them keep sneakers in their shoe cabinet to wear both when doing exercise and in their daily routine, as the athleisure trend continued to be strong in 2019: Some people tend to wear sneakers to work, as many offices allow a relaxed dress code on some days. Given that consumers are also participating in more sports activities, they are therefore interested in purchasing sports footwear or sneakers in response to their healthy lifestyles. 14
19. A number of men are interested in purchasing sneakers or sports footwear, they wear sneakers more often, pairing casual street sneakers or gym sneakers with their daily outfits, including jeans, shorts or trousers. So, when fashion style influences purchases, the decision becomes more complicated. In terms of distribution: Footwear specialist retailers, mainly located in department stores and shopping centres, are the places consumers normally look when wanting to buy a pair of shoes. Footwear sections in shopping centres provide a range of brands for both men and women, and special promotions and price discounts are usually offered from time-to- time. Nonetheless, when it comes to sports shoes or sneakers, consumers tend to get products at sports goods stores in shopping centres. Some brands provide exclusive shops with independent space, whilst others are offered at sports footwear distributors, namely Sports World, Super Sports, Carnival Store, SneakaVilla and Hoops Shop. Distribution is expanding. As internet retailing is being developed, certain brands have developed their own websites for online transactions, whilst some brands rely on other retailers. There is an emerging trend of using the internet in footwear in Thailand. This is either as an alternative shopping channel for digital-minded consumers, or the use of digital marketing strategies with the purpose of getting connected to a modern target audience. IMPACT: Due to the strong athleisure trend amongst Thai consumers, their preference tends to be shifting towards casual fashion inspired by sports, as well as urban street fashion trends. Gym sneakers, running shoes, training shoes, as well as casual street sneakers, are becoming more popular and eroding the shares of the other types of footwear available in the marketplace, such as leather flats, high heels, boat shoes, loafers and boots. 3.4. Competitor Analysis ❖ Converse 15
20. Converse is an American shoe company and was established in 1908. It creates brand trends in footwear, apparel and ice skates. Since 2003, it has become a subsidiary of Nike. Currently, Converse has been present in Thailand with more than 20 stores concentrated in the big city of the Golden Temple country today. According to the demographic segment, the market has been divided into three segments: under 13 years old, group 13-19 years old, age group 20-35 and over 35 years old, including both men and women. Income is also divided into no income (students) and middle and upper class people. According to the psychology segment, Converse targets ambitious people who are materialistic, receptive and visual. Converse has also analyzed people's activities on the web and targeted behavioral segments like fashion, outdoor sports enthusiasts, and more. This brand is positioned as a retro modern subculture and is a classic shoe for the younger generation. High quality, carefully selected price range, the picture has got a good position in the minds of buyers. ❖ Vans Vans is an American manufacturer of skateboarding shoes and related apparel, started in Anaheim, California, and owned by VF Corporation. The company also sponsors surf, snowboarding, BMX, and motocross teams. Since the late 1960’s Vans has targeted Core Sports athletes, enthusiasts and followers and this has not changed much to today. With significant diversification of their product range Vans nowadays target males and females between the ages of 15- 24 years who have an interest in action sports and lifestyle fashion. Vans however can cater to a much broader market with over 200 shoe styles, size from infants to adults, as well as apparel items and accessories including watches, belts, hats, bags and clothing. Vans heavy involvement in the youth music scene with the Vans Warped Tour has added another dimension to their target market, while still maintaining the same youth culture and style. ❖ Rompboy Rompboy was founded by Tanan Boonyatanapiwa. The brand started as a clothing label but shortly finds its way into the streetwear game with great success. Heavily influenced by tennis and badminton shoes from the 1960s, Tanan Boonyatapiwat handmade his first pair of shoes in 2015. Each pair highlights the vintage-inspired design made by hand from high-grade material and the craftsmanship of the team of experienced shoemakers. 16
21. At first, the brand offered only a limited number of shoes and made them only available through the online store. The vintage styling and minimalistic appearance added with appealing little details on each pair sparked extreme interest among sneakerheads, causing the shoes to sell out in no time and cementing the brand’s reputation in the realm of sneakers. Building on their success, Rompboy now has its outlet and new product lines in fashionable leather shoes and student kicks. ❖ Mitzahai Mitzahai, translating to friends or companions in Thai, is a Thai footwear brand that focuses on vintage-style sneakers inspired by the events of World War 2 from the 1940s. Originally a footwear company focusing on vintage-style sneakers, the brand has since expanded its range of products to include comfortable tees, shirts and hats. Mitzahai’s footwear and apparel are sold at CAZH outlets in Siam Discovery and ICONSIAM. It also offers worldwide shipping for purchases made via its online store. The assortment of color options allows you to mix and match Mitzahai shoes with any style of clothing. Their sneakers come in all types from regular running shoes to high- tops. Each creation features an iconic wavy pattern on the curved toe cap made from rubber and lightweight materials that are easy to put on and extremely durable. The iconic gimmick of a printed brand-name in Thai-style font incorporated on the designs of their upper and soles. ❖ Truly Another sneaker brand for all the fashionable men out there. Truly comes with a health- centric concept that pays attention to the wellness of your feet and making sure that you get the most comfortable yellow-colored sole for one foot and a red-colored sole for the other foot, a creative gimmick that is still talked about today. Furthermore, the GUM collection uses pure Para rubber and unbleached canvas fabric that offers superb softness and flexibility, reducing stress on the feet and helps with shock absorption as you walk. Materials used for every collection are all homegrown, with the meticulous production process ensuring that an international standard of quality is met in every pair. 4. SWOT Analysis 17
22. ● STRENGTH: ● WEAKNESS: - 20 years experience of the shoe - Lack of experience in new markets, factory has cooperated with many especially international (Thailand) famous brands such as Puma, markets. Reebok, Keds, Burberry, - A new brand in customer's perception - Ananas flagship product is the - Ananas has yet to build relationships vulcanized shoe with a minimalist with partners in Thailand design that is easily combined with many different types of outfits. - Website with many eye-catching colors, bringing a youthful and dynamic look - Colors range from monochrome to ombre. This makes Ananas no need for sophisticated motifs but still able to conquer the most demanding customers. ● OPPORTUNITIES ● THREATS - Thailand has undergone rapid - Concentrated spending patterns due urbanisation with a sustained to high household debts and a slow improvement in household recovery of household income incomes, this will support the - Uncertainties from the upcoming growth of consumer spending on national election which will discretionary items, such as significantly affect consumer and lifestyle products and services investor confidence as well as future - The rapid adoption of e-commerce economic policy. in Thailand help the company reach - Various problems of national security target customers more easily and have been increasing at an alarming less costly rate due to political unrest, terrorism, - Thai society maintains good values economic crisis and international and culture. These factors competitions contribute toward social cohesion - There is still a lack of law and reduce the negative influences enforcement to prevent piracy. 18
23. of modernization and conflicts in - Thailand is becoming an ageing Thai society. society due to changes in population structure, characterized by the increase of older persons while the size of younger population and workforce decrease - Severe natural and man-made disasters are likely to have greater impacts in the future. 5. Objectives With being a new foreign product in the market and facing competitors that are local and foreign brands that already have a presence and a certain market share. The basic and most important goal when Ananas enters the Thai market is increase market penetration and increase product awareness, attract new consumers to use products that combine strong and continuous communication. 6. Recommended Marketing Strategy 6.1 Target Marketing Identification and Segmentation Strategy Demographics ● Gender: Both male and female ● Age: 18 - 25 ● Income: >= 2604.27 THB/month (86.30 USD/month) ● Occupation: College students and newcomers to the workforce Geographics: Urban area - Bangkok Psychographics: ● Personality: Youthful, dynamic and active ● Lifestyle: Extrovert, enjoying experiences and participating in outdoor activities, having a healthy lifestyle Behavior: ● Buying places: supermarkets, shopping centres, online ● Behavioral Occasion: - Regular occasion: go to school, work or hanging out - Special occasion: As gifts on important occasions such as birthdays, anniversaries, ● Benefit: 19
24. - Looking for a shoe that is comfortable and suitable for school, work or hanging out. - No shoelaces - Easy to slip on and off - Easy to map. ● Usage rate: medium or heavy (use everyday) ● User status: daily user 6.2 Marketing positioning Reasonable price - Good quality; Good customer service 6.3 Market Entry Strategy: → Exporting: ● Direct sales (e-commerce website) ● Use of an intermediary (retailers) 7. Marketing Mix Strategies and Tactics 7.1 Product 7.1.1. Core product: Vulcanized shoes Overall, Vulcanized shoes overall have two main parts: Upper and Sole in which Upper are all the components located in the upper body while Sole is the rubber-made foundation below. FIGURE 7.1- Vulcanized shoes (1) Vamp: toe box - the front part of the shoe, a hard covering to protect the toes in a shoe (2) Tongue: A shoe tongue is a strip of leather or other material located under the laces of a shoe. The tongue sits on the top center part of the shoe on top of the bridge of the foot. It's attached to the vamp and runs all the way to the throat of the shoe. (3) Stamp: The pineapple logo stamp is sewn or heat-pressed directly on the tongue. (4) Eyestays: is the part that contains 2 rows of shoelace holes. Shoes may or may not have these depending on the intentions of the design. 20
25. (5) Eyelets: Eyelets are usually holes in a shoe through which shoelaces are threaded, allowing the shoes to be tightened. Eyelets are found at the throat of the shoe which is located along the top of the foot (6) Stitching: decorative stitches used to attach discrete parts together (7) Laces: shoelace - the composition is familiar and can be changed easily. (8) Aglets: a metal or plastic tube fixed tightly around each end of a shoelace. (9) Heel counter: heel counter - heel fixer for the shoe (inside) and heel decoration (outside). (10) Heel strap: also known as rear brace. The main use is to increase the aesthetics of the product. This component may not be available in some shoe styles and styles. (11) Lining: also known as the body lining - the inner lining of the shoe body. In item number (12) Insock: the first layer that your foot touches when you wear the shoes. Insock in some shoe models will be used to keep warm, deodorize while others are parts to create a smooth wearing and limit friction with the Sole (sole). (13) Insole: insole - the part below the Insock, not visible from the outside because it is hidden. (14) Outsole: outsole - the only part of a shoe in direct contact with the ground. Because the part that bears a lot of friction while the shoe is used, the sole material must also be a material with high durability. (15) Foxing: the rubber is glued to the shoe for reinforcement, connecting the Upper and Sole, this is the detail that makes it easy for you to recognize Vulcanized shoes and differentiate them from Cold Cement shoes. (16) Bumper: Bumper is often used to reinforce the foxing more firmly. Depending on the purpose of decoration, the material / color of the bumper may be different from the overall foxing. You can clearly see this through the products in the Basas Bumper Gum set that was released not long ago by Ananas. (17) Heel label: the heel stamp - the highlight is no less important because it conveys the message of the brand. 7.2.2. International product mix decisions ● Product lines and mix Ananas will export to Thailand four of our existing shoe lines that target to middle-income segment including Basas, Vintas, Urbas and Pattas as these 4 are the most popular ones within the brand. Elaborately, Basas is the most basic line, meanwhile Vintas looks more vintage with the yellowish sole. Urbas shoe line, in which the sole is decorated with a horizontal line, has a modern youthful style. However, the last one - Pattas, is quite different from others. For this product line, Ananas still retains 21
26. its basic form, but the basic monotonous-color designs are replaced with carefully invested graphic designs. In the future, Ananas plans to expand the Pattas line with products designed specifically for the Thai market. In addition to the current shoe lines, Ananas will launch Mulas, in which the main product is a new kind of shoes - mules, to meet the needs and preferences of consumers in Thailand. Mule is a style of shoe that has no back or constraint around the foot's heel. Mule shoes are popular with both women and men for an assortment of reasons. Firstly, in a world where shoes/sneakers often have all sorts of straps and buckles and confusing ways to put them on, mule is the type of shoe you can just slide into so it's convenient. Another reason mules are so popular is that they can be worn with almost any outfit and to anywhere. FIGURE 7.2 - Poster 22
27. ● Packaging Carton box: Length: 31.5cm Width: 18cm Height: 11cm Box: 230g Box + shoes: 820g All the information on the box will be translated to Thai except for the brand name FIGURE 7.3-Ananas box 23
28. FIGURE 7.4- Ananas box FIGURE 7.5- Ananas box 24
29. ● Labeling There is no adjustment for the heel stamp (Hình 7.2 Price With the goal to maintain Vietnam's current price range in Thailand market, after considering all production costs, Ananas decides that the product will be priced according to cost-based pricing strategy. In order to secure the company's profitability, Ananas will follow cost - plus pricing strategy. In addition, all Ananas product lines are priced evenly, so that customers will perceive the company’s product as high-quality products, which is what the company wants to focus on. Price for each line: Line product Price in Thai market Basas ฿760 Vintas ฿900 Urbas ฿950 Mulas ฿1000 Pattas ฿1450 TABLE 7.1- Price for each line Term of sale The company’s delivery condition is CIF ( Cost, Insurance, Freight ). The company will buy insurance for the order. Specifically, we’ll sign the contract with Export Insurance services to ensure that if there’s an incident during the transporting process, the insurance company will have to deal with the customer. Term of payment ● Customers can pay in many different forms such as cash, credit cards, COD (cash of delivery), etc. ● At the store, the main forms of cash or credit card payment are. 25
30. ● As for online, COD will apply, and delivery within 2-3 days depending on the region (may take longer). 7.3 Place Analyzing the consumers: Ananas’s target customers are young, dynamic, trendy and diverse (aged 18-25). They often prefer the trend and creativity in each product as well as distribution channels. According to surveys, consumers tend to get products at sports goods stores in shopping centres. In addition, 69% shop online on mobile devices, while 34% on computers. Number of online shoppers 34.8 million people, market size 1.33 billion baht. The average amount of shopping per person is 3844 baht per year (equal to Thailand's GDP of 22,600 baht or 7,273.56 USD for online shopping is approximately 1.7%) Objective: ● Ensure product flow and product availability. ● Product protection (for indirect channels) ● Reduce costs and maximize profits (for direct channels) Selecting channels Ananas applies a selective distribution strategy and uses channel level 0 or level 1 - only sells Ananas’s products through direct channels (Facebook, Instagram, LAZADA and Shopee) and 2 indirect, retailer channels in Bangkok (Carnival Store and Outcast Store) . During two years, we will focus mainly on online channels and intermediaries to minimize costs, risks and increase brand awareness. INDIRECT CHANNEL CHANNEL LOCATION DISTRICT POPULATION CARNIVAL Siam Square Soi 1 Pathum Wan 84,356 District Siam Square Soi 7 Pathum Wan District Central Ladprao Chatuchak District 332,877 KNOCK BKK Sukhumvit Soi 55 Wattana District 24,877 26
31. DIRECT CHANNEL Fanpage (for Thailand): Facebook, Instagram LAZADA Shopee TABLE 7.2- Channel 7.4. Promotion ● Message: “DiscoverYou” - Via this message Ananas wants to remind everyone, especially young people, that "Whatever you do, you need to understand yourself and what you want". The more you understand who you are, the more accurate the decision will be. The company applies Push Strategy to promote the product. ● Objectives: - Inform the customer about the brand and product and create brand awareness by 30% target audience in Bangkok in the 1st year. - Stimulate customers to purchase products through customer promotion activities and increase the number of products distributed by retailers via the trade promotion activities. 7.4.1. Advertising Objectives: - Create brand awareness by 30% target audience in Bangkok in the 1st year. - Inform the customer about the product and persuade them to try it. 7.4.1.1. Social Media: We choose Facebook and Instagram to be our platform because of those wide accessibility and strong effect on young people. Content, images and tvc about are designed and conceptualized to suit the trends and preferences of the Thai market. The TVC’s message strategies will include both rational and emotional message strategies. Not only show customers the quality of products through TVC about the meticulous production process from factories in Vietnam, but also express the spirit of Ananas - a shoe that inspires young people through the TVC advertises a product and source is active young people. Facebook ads and instagram Ads are used to run the advertisement. Execution techniques: Combination: Personality symbol and imagery 27
32. 7.4.1.2. Support media: In Thailand, MRT (subway) is the common public transportation so posting posters at crowded subway stations may attract the attention of the target audience. Carnival and Knock Bkk retail stores are located in major department stores such as Siam Square Soi 1, Siam Square Soi 7, Central Ladprao and Sukhumvit Soi 55.So we’ll display our poster in space where many people pass by and are easy to see. 28
33. FIGURE 7.6 – Poster Subway FIGURE 7.7- Poster subway 29
34. 7.4.2. Sale promotion Objectives: Encourage customers to buy and drive sales. ● Consumer - oriented: - Price-off deals: In the first 1 week of product launching, we’ll discount 20% for customers who purchase in both e-commerce (Shopee, Lazada) or in retail stores. In the annual discount festival in Thailand from June 15 to August 15, all products will be discounted up to 50% in both retail stores and online. - Premiums: There will be 2 premiums in 1 year In June 2021, Ananas will launch a new product named Mulas - shoes without back or constraint around the foot's heel. Customers who purchase this product will be given a Summer Ananas face-mask . This program will last until the end of June. FIGURE 7.8 – Ananas Mask A week before Christmas, when buying a shoe product the customer will be given a pair of plain colored socks. ● Trade - oriented: - Dealer incentives: When each price-off deal happens, if the retail stores reach the revenue target set by the company, we will deduct an amount as commission to divide to the retailer. 7.4.3. Public Relation: Objectives: Create a good image in customers and increase the brand awareness. - Tham gia dựng booth bán hàng và quảng bá sản phẩm tại các hội chợ tại Thái Lan. 30
35. - Donating 100 pairs of shoes for poor students in Bangkok city in back-to- school season. 7.4.4. Promotion budget Promotion Expenditures (in 1 1st quarter 2nd 3rd 4th Note year) quarter quarter quarter Advertising Social Facebook 40000 baht 30000 20000 20000 Media baht baht baht Instagram 30000 baht 10000 10000 9000 baht baht baht Others (Poster, 120000 baht 100000 80000 60000 MRT station, ) baht baht baht Sale Price-off deals Brand Sale-off promotion Launching festival discount (up to (20%): 50%): 950000 baht 800000 baht Premium Face - Stocks: mask: 2000 3000 units units 13300 15700 baht baht Public Trade-market 20000 20000 20000 Relation baht baht baht Sponsors 100 pairs of shoes 31
36. (Batas line) 76000 baht Total : 2440000 baht TABLE 7.3- Promotion Budget 8. Planning Budget COST In Vietnam Shipping Warehouse - Cat Lai Port 3,000,000 VND Raw material 3.657.500.000 3.491.000 Transport fee(O/F) Document fee 931.000 Seal fee 233.000 Telex 698.000 Ask for paper C/O 582.000 1.164.000 Export customs services 1.862.000 Shipment Insurance Fees In Thailand Workers (5 people) 1.200.000.000 Warehouse 236.864.000 Transportation 15.550.000 Electron and water power 140.000.000 32
37. Marketing 2.000.000.000 Costs Incurred (10%) 611.394.000 Total 7.873.269.000 TABLE 8.1 - Budget Revenue Mulas: 10,000 x ฿1000 = ฿10.000.000 Basas: 12,000 x ฿760 = ฿9.120.000 Vintas: 8000 x ฿900 = ฿7.200.000 Urbas: 4000 x ฿950 = ฿3.800.000 Pattas: 1000 x ฿1450 = ฿1.450.000 Total ฿ 31570.000 approximately 24.178.368.952 VND Profits: 16.305.099.952 9. Implementation and Control CONTROL Criteria Risk Solution Product - The product is damaged during- Cancel all the defective transportation. items, fix the defective orders and after-sales to confirm the - Defective product reaches product's quality in the hearts of consumers. customers. - Return policy according to company regulations when customers give feedback on defective products. 33
38. Financial - Exchange rate: the fluctuation- Flexibility with exchange rate of exchange rate in the place of policy to balance the devaluation production (Vietnam) against the of both domestic and foreign place of consumption (Thailand) currencies. causes damage to the enterprise. - Financial calculation and - Inaccurate financial planning planning should be done based causes damage to the business. on specific reports from previous product lines to avoid - Did not reach the target of the future losses. product. - Find the cause and fix cash to avoid losing money of the business. - It is necessary to have a contingency plan for situations in which product target is not met to respond promptly. Distribution • Indirect distribution • Decorate a special display through intermediary space for the brand to stores is limited in the make an impressive exhibition space and difference to attract limited in the centralized customers. Planning for sales management for the special sales "festivals,". brand. • Detailed product • Direct online distribution description and customer is passive in controlling to feedback receiving policy receive customers and to improve risks. strong competitive pressure from different brands. Marketing - Customers don't know / don't - Using a strategy to attract Strategires care about the product. other customers, businesses change segment or can change target market. 34
39. Natural - Threats caused by natural - Update situation quickly in environment disasters, bad weather, time to prevent and overcome epidemics natural difficulties. - Use marketing campaigns to attract customers to buy products on "topics towards a good future." Politics - Changes in government - Flexibility in host country policies, the influence of policies and remote preparation agreements that Thailand has for adaptive change minimizing signed with Vietnam. risk. - Thailand's internal turmoil - Calculate solutions to relieve (epidemics, protests, ) led to customers in time when goods slowdowns in operations, loss of are late. Establish a good important assets, disturbance in support system when there are the distribution system complicated developments that (difficulties in importing goods adversely affect the brand's on stock). reputation. TABLE 9.1- Control 35
40. 10. Reference [1] Reaching the Thai consumer - Santandertrade.com. (n.d.) [2] Dong Hung footwear group [3] Thai protests (2020), Wikipedia [4] Thailand travel advice, GOV.UK [5]Wikimedia, South Thailand insurgency (2019), Wikipedia [6] Corruption rises in Thailand, Bangkok Post Public Company Limited transparency-international [7] Thai Legislation [8]Unfair Contract Terms Act, Thai Law Texts [9] Permitted Business Activities in Thailand for Foreign Entities, GPS Legal [10] Thailand: The country starter pack [11] Thailand Economic outlook report (2019), Deloitte Thailand economic-outlook-1h-2019.pdf [12] Growth Markets Centre The Future of ASEAN-Time to Act (2018) [13] THAILAND NATIONAL PROFILE [14] The State of Fashion 2020 0of%20fashion%202020%20navigating%20uncertainty/the-state-of-fashion-2020-final.ashx [15] Thai economy outlook 36
41. [16] A global country study report on “ PESTEL ananlysis and study of various sectors of Thailand (2013) [17] ASEAN in Focus: The Thai Consumer Market [18] The Thai Apparel and Accessories’ Market: Entry Strategies and Potential Partners, Hong Kong Business Accessories%E2%80%99-Market-Entry-Strategies-and-Potential-Partners 37