ENTREPRENEURSHIP

1. What are common characteristics of entrepreneurs? In your opinion, what is the

most important characteristic for an entrepreneur?
a.What are common characteristics of entrepreneurs?
Entrepreneur is the businessperson who accepts both the risks and the opportunities
involved in creating and operating a new business venture. The entrepreneur usually has
some of the popular characteristics.
Firstly, the entrepreneur has a high level of achievement motivation. Motivation is the
will to accomplish certain things. Entrepreneurs are driven to make their business a
success and push themselves. Successful entrepreneurs are driven by much more than
financial gains. The top reasons someone decides to become an entrepreneur are because
they want to share their knowledge as a subject matter expert, be recognized as a leader
in their field, experience personal growth and improve the world.
An internal locus of control:Locus of control is an important trait in entrepreneurship. It
is the springboard to self efficacy. The entrepreneur is said to haven internal locus of
control if believes he is the master of his own destiny. Those with external locus of
control easily succumb to fate and believe that their lives are controlled by the external
forces like economic conditions, politics, technology and social factors. A person with
internal locus of control believes s/he can influence outcomes through their own ability,
effort or skills rather than external forces controlling these outcomes.Entrepreneurs show
responsibility for their actions and show positive relationship between control orientation
and entrepreneurship. Individuals with internal locus of control differ from those with
external locus of control. The former take initiative and responsibility in a performance
situation, they are ready to search and utilize information promptly and display signs of
being in touch with the outside world.
A tolerance for ambiguity:Unlike an established company, a startup has to plan with a
number of unknowns: you don’t know what will be happen in the future. The plan has a
number of assumptions. As you make progress those assumptions may or may not prove
to be accurate.If any assumption is not accurate, the entrepreneur has to replan and adjust
the plan as opposed to lament that they failed. For them the ‘failure’ is not the same as
defeat. It is something that you did and it did not work out. No big deal. Try again.
Extract the lesson from it not working out.
Of course,nobody is perfect, so they are not necessarily experts in all areas of business.
They only know in one or some areas of business, in other fields they can hire experts.
But, they should need to learn and know just enough about the business to not be misled
by employees.
They are very good at establishing networks of people who can help them in areas that
are not their strengths. One of the greatest personal characteristics entrepreneurs need,
and which is crucial for success, is the ability to connect with people and identify
opportunities for partnership.Meeting new people gives you access to resources and
knowledge required in your field. It gives you opportunities to learn from the success and
failure of others, meet new clients, and promote your goods or services.
Entrepreneurship is both a great opportunity and a challenge, and you need to have
certain personal traits to succeed at it. There are no hard rules to becoming an
entrepreneur.
b. I think, all of characteristics are important, but if must choose, i will choose the second
characteristic: An internal locus of control. Why? Because, an entrepreneur is the
businessperson who accepts both the risks and the opportunities involved in creating and
operating a new business venture. All decisions of new business belong the entrepreneur,
they can not blame others elements.Successful leaders have high internal locus of control.
The link between internal LOC and leadership may be explained by the fact that
individuals with internal locus of control have faith in their ability to achieve their
objectives and transforming their environment. They hold themselves responsible for
their success and accept their short-comings in the event of failure.Internally driven
entrepreneurs may become more successful. The process of going into an entrepreneurial
venture is difficult and call for decisiveness and goal orientation. Orientation impacts on
an individual’s ability to initiate, take that moderate risk and persevere.

2. What are the four types of entrepreneur personalities, which one do you most
identify with, and what leads you to identify yourself with this characterization?
❖ Personal Achievers:Personal achievers are the classic entrepreneurs. They are the
types of people that we picture when the term “entrepreneur” is used. They are the
only types who must become entrepreneurs to succeed in life. If they are placed in
a non-entrepreneurial environment, they stand a good chance of failure. They
possess seven characteristics that relate to entrepreneurial success:
1. Need for feedback
2. Need for achievement
3. Strong commitment
4. Internal locus of control
❖ Expert Idea Generators: Expert idea generators are people who have ideas for a
business that can provide a real competitive advantage. They become
 tremendously enthused about their ideas and spend a great deal of time
implementing them. Unlike personal achievers, who spend energy on an overall
venture, expert idea generators tend to focus on the idea exclusively. Very often,
they will try to persuade others to contribute to implementation and, if
unsuccessful, they will abandon the idea. They possess a majority of the following
five characteristics:
1. Build venture around new products
2. Involved with high-tech companies
3. Desire to innovate
4. Intelligence as source of competitive advantage
❖ Super Sales People: Generally, onlookers don’t view super sales people as having
the potential for entrepreneurial success. Their entrepreneurial strength is their
approach to selling. They truly cater to the needs of clients and customers, thus
placing a strong stress on service. Super sales people are interested in managing
the customer into a sale, not in applying pressure tactics.They have personal
characteristics that relate to entrepreneurial success, including:
1. Capacity to understand others, empathize
2. Belief that social processes are important
3. Good at external relationship building
4. Belief in sales force
❖ Real Managers:Real managers exhibit some of the traits of established
entrepreneurs and some of the abilities of corporate managers. They possess at
least three of the following six traits:
1. Desire to take charge, compete, be decisive,stand out
2. Desire to be corporate leader, desire for power
3. Positive attitude towards authority
3. Analyze the challenges of entrepreneurship and the causes of failed entrepreneurship.
● I think I belong to the “Expert Idea Generators” group. I’m creative and have
interesting ideas
4. Distinguish between a business idea and a business opportunity. Someone said
that: “A good business idea does not surely turn into a good business opportunity
but a good business opportunity certainly comes from a good idea”. Do you agree
with that opinion, and why?
● WHAT IS THE DIFFERENCE BETWEEN BUSINESS IDEAS AND
BUSINESS OPPORTUNITIES?
As one of the many reasons why startup businesses fail is often the confusion of
an entrepreneur about two terms that are very important to them: business ideas
and business opportunities. What is the difference between these two terms?
Both terms are highly used in the business startup process by an entrepreneur. However,
what is notable is that often businesses are started only with the idea, that they do not
convert or transform into a real business opportunity. Because of that business startups
immediately begin to suffer after the startup stage.
-You generate ideas by thinking creatively.
- Ideas become opportunities when they are evaluated and exploited.
- Business opportunities are ideas that have commercial potential:
+ to be able to create profit
+ be new and innovative
+be attractive and desirable
● Good businesses start with a good business idea. That fundamental principle has
inspired dozens of generations of hopeful entrepreneurs, fueling them with the
promise that one good idea and a lot of work is all it takes for anyone to become a
billionaire. Unfortunately, there's another side to this equation: Just because all
good businesses need a good idea to get going doesn't mean that a good idea is the
only thing they need to get going.Countless businesses have been created from
great ideas, only to collapse under their own weight, fall victim to competitors or
fail to gain any momentum from the beginning. Why is this?
1. Good ideas aren't necessarily unique.
A "good" idea has the potential to make money in a given environment; yet this
doesn't guarantee that someone else isn't already out there who's developed his or
her own version of this idea.

A bit of competitive research up front protects you against this possibility; if you
find a competitor with a similar idea, you can either pull out before you're too
invested, or differentiate your idea enough for it to stand on its own. You'll still
have to move cautiously, of course: Once your idea has developed into a full
business, a separate competitor may emerge to threaten your business.
Competitors can be -- and will be -- vicious. Keep that in mind when you flesh out
the strengths and weaknesses of your idea.
2. Timing is critically important.
As Idealab founder Bill Gross once explained, there are many factors responsible
for why businesses succeed, and the biggest one seems to be timing. A good idea
that appears before the market is ready for it can fizzle out despite its huge
potential. Imagine a piece of technology that consumers aren't ready for, like
Google Glass or even a television sitcom whose humor is ahead of its time.

Both ideas, though strong, and with great potential, get squashed. Similarly, an
idea that comes too late -- once consumers have already had their fill or moved
onto another trend -- will fail to have the same impact. Timing the release of your
business in that "sweet spot" is crucial to success.
3. "On paper" doesn't always translate to real life.
Hopefully, if you have a good business idea, you also have a good business plan.
Business plans are where you flesh out the details of your enterprise, from who's
going to buy your product to when you plan on launching and at what point you
will become profitable.
In theory, the numbers may support your plans. Your idea may seem like it will
really work. But real life doesn't always work the way it "should" on paper. Your
customers may not be as interested as they seemed during your market research.
Your cost basis may not be as tight and predictable as when you put your plan
together. Those unpredictable factors will always be a danger, even to the best of
ideas.

4. Circumstances change.
Business environments never remain static. New technologies are constantly
developed, trends come and go and economies fluctuate between periods of
consumer spending and periods of frugality and fear. The circumstances in which
your business emerges will certainly be different from the circumstances you face
mere months into your business' existence.
 Successful businesses aren't those that took an idea, adopted it, then kept it static
for years. They're the ones that took an idea and allowed it to change and develop
as new circumstances emerged. Truly great business ideas are flexible enough for
talented, insightful entrepreneurs to develop them over time, in accordance with
changing circumstances.

5. Execution is as important as planning.

This goes back to the idea that "on paper" doesn't exactly equal reality. Remember
that a good business idea is only as good as the people who are able to execute it.
If you have a masterfully designed workflow, you need an operations manager
skilled enough to oversee it. If you have ambitious financial goals, you need a
controller with enough experience to help you hit those goals.
Building a team is an important part of the process, and without a strong one on
your side, even the best business ideas can result in failure. Human resources
should be one of your top priorities.

If you have a great business idea, and you're interested in starting your own
business, don't let all these reasons dissuade you. Starting a business is tough, and
making one successful is even tougher. But if you go into it with the right
expectations and a reasonable vision for development, you won't fall victim to the
misconceptions that have disrupted so many.
5. How can you identify creative ideas? What do you think a good business idea
should be based on?
To identify creative ideas:
● Observe the world around you: Creative ideas are all around us, all the time.
Uncovering them is often a matter of how we’re looking at things and less of
where we’re looking.Consider something as plain as a table. The purpose of any
table is straight-forward enough: to hold things. But what about specialized tables?
Poker or pool tables, picnic and the tables you’d be seated at in a fine-dining
restaurant. The table built for a modern office worker might have plugs and power
adapters built in, whereas the traditional family dinner table will need to be larger,
sturdy, and power-less.What if the table meant to hold our computers and cups of
coffee was designed to instead hold thousands of pounds of materials, how might
that affect how it looks and functions? What if a table needed to expand or shrink
depending on how many people will be using it? What if your table could
 transform into a shelf when not in use? What if the table was modular, or entirely a
touch screen, or embedded with floral smells or haptic feedback mechanisms?

When we start to see a table as more than just something “to hold things” we begin
to unlock new and possibly provoking ideas. These once overly-familiar objects or
projects begin to take on new characteristics and, inevitably, expose us to new
ways of thinking.
● Watch for demographic changes: Changing demographics will create new trends,
new habits. for example, developed countries tend to age their populations, so we
can create robots that take care of the elderly.
● Be an avid reader.In order to produce creative ideas yourself, you will need a flow
of new ideas.Seeing the work of others might inspire you and give you ideas to
challenge, change, or explore further.
● Consider your interests, hobbies, and work experiences: when you're passionate
about something, or already experienced in a subject, you tend to want it better, so
you want to innovate on it, thereby creating an innovative idea. For example, you
work in the design department for apple, after manufacturing iphone 6,7,8
fingerprint unlocking is not convenient, so you switched to face ID unlocking
● Consult outside sources of information: of course, from outside sources of
information, You will know what is missing, not suitable and come up with ideas
to change and supplement. for example, during the covid pandemic, many people
need oxygen tanks, so there are creators who create "oxygen tank ATMs"
❖ I completely agree with this opinion. A good business idea will first come from our
passion, from which we can stick with it for a long time. Next, a good business idea
will need to respond to the needs and trends of the environment. Trading in things that
the environment needs and does not have will be the advantage of the business.
6. What is the business plan? Purposes of business plan for a new venture?
The business plan
Describes
o what your business will produce
o how you will produce it
o who will buy your product or service
Explains
o who will run your business
o who will supply it with goods
States
o how your business will win over customers from competitors
o what your business will do to keep customers
Provides
o detailed financial information that shows how your business will succeed in
earning a profit
The main body of the business plan will contain the bulk of the information about the
business idea. It provides details on how the business will succeed. Details from the
main body will be used to compile the other components in the business plan.
BASIC ELEMENTS OF A BUSINESS PLAN should be organized into five sections.
Introduction
Marketing
Financial Management
Operations
Concluding Statement
❖ The business plan serves three important purposes.
1. A business plan explains the idea behind your business and spells out how your
product or service will be produced or sold. To convince investors that your business idea
is solid, you will need a completely new product or service or one that is better or less
expensive than products or services that already exist. You will need to identify who your
target customer is and show how your company will be able to obtain and keep
customers.
2. A business plan sets specific objectives and describes how your business expects to
achieve them. A good business plan includes sales projections for the short term (the first
year), the medium term (two to five years after start-up), and the long term (fi ve years in
the future). It describes what products and services will be introduced over the next five
years and sets forth future business plans, such as expansion of the business.
3. A business plan describes the backgrounds and experience of the people who will be
running the business. Banks and other lenders make financing decisions based on how
well they think a company can meet its objectives. If you provide information on the
background and experience of the people who will be running your company, the bank or
investor will be more likely to invest money in your business.
7. What is the definition of marketing? Why marketing is critical for
entrepreneurs?
“Marketing is the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit”- Philip Kotler.
Definition of marketing by the American Marketing Association:an organizational
function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization
and its stakeholders.
Marketing practices vary depending on the type of company and the products and
services it sells.
Marketing is a vital process for entrepreneurs because no venture can become established
and grow without a customer market. The process of acquiring and retaining customers is
at the core of marketing. Entrepreneurs must create the offer (design the product and set
the price), take the offer to the market (through distribution), and, at the same time, tell
the market about the offer (communications). These activities define the famous Four Ps
of marketing: product, price, place (distribution), and promotion (communication).

Entrepreneurs often are faced with designing the entire "marketing system"—from
product and price to distribution and communication. Because it is difficult and
expensive to bring new products and services to market—especially difficult for new
companies—they need to be more resourceful in their marketing. Many entrepreneurs
rely on creativity rather than cash to achieve a compelling image in a noisy marketplace.

An important part of gaining the market's acceptance is building brand awareness, which,
depending on the stage of the venture, may be weak or even nonexistent. Entrepreneurs
must differentiate their company's product or service so its distinctiveness and value are
clear to the customer. This is the job of marketing.

Marketing also plays a central role in a venture's early growth stages when changes to the
original business model may be necessary. Companies focused on growth must be able to
switch marketing ...
8. What sources of capital that an entrepreneur can mobilize from?
Capital is any form of wealth employed to produce more wealth.
At the first stage of financing, entrepreneurs usually invest their own funds. Coming from
the owner’s personal savings.
Raising financial capital from friends and family is a common approach for entrepreneurs
launching a new venture. Friends and family are more likely to invest in a venture
because of the personal relationship established with them over time.
Angel investors includes any individual who invests his or her own money in a new
venture, typically in return for equity in the venture. Angels range from professionals,
such as doctors and lawyers, to successful entrepreneurs who are now seeking to finance
one or more new ventures. Angels are private investors who not only invest their money
in small companies, but they also offer valuable advice and counsel to them.
Commercial loans:
4.1. Short-term commercial loans (30 to 90 days) are the most common loans made to a
small business. They usually cover business operation expenses such as rent, insurance,
advertising, inventory or salaries. Short-term loans are often unsecured and repayment is
usually a lump sum, including interest when the loan matures.
4.2. Long-term commercial loan is for five years or more to purchase an existing
business, buy real estate, or construct or improve a building or facility. The long-term
loan is always secured by the assets for which the loan was made, usually requires
constant monthly payments and often has a variable interest rate.
Trade or supplier credit
Payment terms offered by suppliers are a potential source of credit. Study the discounts
for early payment and the penalty for late payment to determine the true cost of the credit.
While some suppliers will extend credit only to well-established, proven firms, many will
extend limited credit to new businesses to encourage another outlet for their merchandise.
Leasing companies
Leasing business equipment is another way to reduce capital needs. Everything from
office furniture to food processing equipment can be obtained from leasing companies or
commercial finance companies. Leasing is generally more expensive than bank financing
and is limited to items that have a long serviceable life, widespread use, and are easily
repossessed in the event of default.
Venture capital companies
Are for-profit, professional investors looking for fast-growing companies in “hot”
industries. When screening prospects, venture capital firms look for competent
management, a competitive edge, a growth industry, and important intangibles that will
make a business successful.
Commercial finance companies
Offer many of the same types of loans that banks do, but they are more risk oriented in
their lending practices. They emphasize accounts receivable financing and inventory
loans.
Crowdfunding
the practice of funding a project or an activity by raising many small amounts of money
from a large number of people, usually using the internet.

Analyze the advantages and disadvantages of these forms of capital mobilization.

1. Owner’s equity
This is the amount of personal money an owner, partner or shareholder of a business has
at his disposal to do whatever he wants.When a business seeks to borrow the personal
money of a shareholder, partner or owner for a business’s financial needs the source of
finance is known as personal savings.
Advantages;
The owner would not want collateral to lend money to the business.
There is no paperwork required.
The money need not necessarily be paid back to the owner on time.
Can be interest free or carry a lower rate of interest since the owner provides the loan.
Disadvantages;
Personal savings is not an option where very large amounts of funds are required.
Since it is an informal agreement, if the owner demands the money back in a short notice
it might cause cash flow problems for the business.
2. Friends and Family:
There are clear advantages to approaching family or friends, rather than conventional
sources of funding, for a loan or investment.

Family or friends:

Will be flexible. On a practical level, they may offer loans without security or accept less
security than banks.
May lend funds interest-free or at a low rate.
May agree to a longer repayment period or lower return on their investment than formal
lenders. They may also seek a lower rate of initial return than commercial backers.
Already know your character and circumstances and so are less likely to need a detailed
business plan.
However, there are also some disadvantages to family or friends financing your business.
Transactions of this nature can be complex. Any misunderstandings about the
arrangement can damage relationships.

There is a risk your investors may offer more than they can afford to lose, or that they
will demand their money back when it suits them but not your business. They may also
want to get more involved in the business, which may not be appropriate.
3. Angel investors:
#1 Flexible and risk-taking
When compared with others, Angel investors are usually negotiable, since they invest it
from their own pocket. In most of the cases, many angels are successful entrepreneurs
who have cashed out and understand the amount of risk involved with establishing a
business. This flexibility and risk-taking ability make Angel investors one of the best
sources of capital.

#2 No repayment or interest required

Unlike banks, Angels fund business with the money you need to get going and, in
exchange, they get an ownership stake in the business typically starts at about 10 per
cent. If the startup takes off, both will reap benefits, if not, angel investors don’t get paid
back.
#3 Offer valuable knowledge
Since most of the angels are season investors, they can provide contacts, expert support,
and guidance that can support your business grow swiftly. Their insight and resources can
be of tremendous value for the company’s growth.

#4 Suitable source to get business going

Angels are the best source if you require funding to get the business established. They
usually invest in amounts from a few hundred thousand dollars up to $2 million. For
more capital, entrepreneurs can raise more money through venture capital.

#5 Angel investors are found everywhere

One of the worthiest things about angels is that they can be found everywhere. In fact,
some groups of angels meet frequently to explore local and regional opportunities that
may be available.
Disadvantages
#1 Higher expectation!
With high tolerance and risk comes higher expectations. Since they are in business to
make money, angels expect to see a return on their investment. Customarily, most angels
will give around 5 to 6 years to hand out the return. At times, the pressure to deliver
results can be intense as well.

#2 Future profit is limited

Since you’re trading equity in your company as part of the deal, you’re essentially giving
away a portion of your future earnings based on the ownership stake you agreed before.
For example, if you give the angel investor a 33% stake in your company, then $1 out of
every $3 is going to angles pocket. It might not be a big deal initially, but when image
when your business takes off.
#3 You will lose some control over your business
Typically, Angel investors often take an active role in the decision-making process. Plus,
they will seek a way to exit after they’ve received the return that they want.
#4 Don’t expect to receive to follow up investment
Due to the risk involved in the business, most angels are unwilling to invest additional
funds. Having said that the scenario may change if the business is generating profits.

#5 Take longer to find a suitable angel investor

While some angels genuinely look beyond the promise of monetary returns, some are
greedy and motivated only by money rather than taking interest in promoting the startups.
In this case, it is better to obtain complete information about the character and reputation
of the angel investor before proceeding.
4. Commercial loans
Commercial bank loans are widely sought after by entrepreneurs due to providing
business owners with several key incentives.

Commercial loans offer the lowest interest rates of all loan options, enabling business
owners to access critical funding while maintaining lower overhead costs.
The loans are long-term, often between 3 and 10 years, allowing you to pay the money
back slowly as you work to increase business profits.
Lower interest rates and extended payment plans decrease the potential for default, which
reduces your investment’s risk.
Commercial loans can be used for very large sums, allowing you to cover the bulk of
startup costs with a single loan.
Commercial loans are often unsecured, meaning you don’t need to provide any collateral
to obtain the loan.
You retain complete ownership of your company. Venture capital investments typically
require signing over a fraction of your company to the investor, whereas commercial
bank loans enable you to retain total ownership of the business.
With lower interest rates and flexible long-term payment plans, commercial business
loans often provide the most cost-effective loan option for business owners. Though
eligibility can be challenging, a commercial bank loan is often the ideal solution for
obtaining startup capital.
While their low interest rates and adaptable payment plans make commercial loans an
appealing funding option, they also have their shortcomings.
Funding can be very challenging to qualify for and require excellent business credit.
First-time business owners are unlikely to be eligible and will have to build credit prior to
applying.
The application process is exhaustive, often requiring a detailed financial report of the
business, an accurate assessment of projected revenues, and detailed information of all
associated business risks. Basically, you need to provide a highly compelling proposal
that will assure bankers there is a relatively low risk of business failure.
You must also provide your personal financial history including your credit score, annual
income, and unpaid debts. Even minor problems with your financial history could render
you ineligible for the loan.
Commercial loans provide less personal autonomy than with some loan options. Larger
loans often require detailed accounts of how the money will be spent.
In the event you fail to qualify for an unsecured loan, you may have to secure the loan
with your home or car as collateral. If you default on a secured loan, the bank retains the
right to seize any property used as collateral.
5. Trade or supplier credit:
Advantages: access to supplies without immediate payment and no interest.
Disadvantages: short term, must be paid off quickly, usually small amounts
6. Leasing companies
Advantages: no large upfront payments and leasing company may be responsible for
repairs and maintenance.
Disadvantages:over time it can be a more expensive way to obtain assets, assets aren’t
owned by the business
7. Venture capital companies:
Advantages: gain money quickly, potential to raise huge amount of money, they may
offer advice and help
Disadvantages:owner must give away part of the business, they may have a different;
vision for the business than the owner does
8. Commercial finance companies
Banks usually offer lower interest rates, more flexible terms, and higher loan amounts
than commercial finance companies, so why wouldn't one choose a bank with whom to
finance their business expenses? The primary reason is that banks are extremely tight
with their credit. Only 20 percent of business owners who apply for loans through a bank
receive the loan.

On the other hand, alternative lenders, such as finance companies, have much more
flexible financing options that allow many small business owners to use their services.
Not only do these lenders offer lines of credit and term loans, but they also offer
merchant cash advances, invoice financing, short term loans, working capital loans, and
much more. In addition, commercial finance companies work much faster than banks.
Some might even approve a loan the same day you apply.
Dis: More risk, more interest rate than bank loan.
9. Crowdfundings
If you are considering raising finance for your business, project or venture through
crowdfunding, there are a number of factors that you might want to consider.

Advantages
Eight advantages of crowdfunding:
1. it can be a fast way to raise finance with no upfront fees
2. pitching a project or business through the online platform can be a valuable form
of marketing and result in media attention
3. sharing your idea, you can often get feedback and expert guidance on how to
improve it
4. it is a good way to test the public's reaction to your product/idea - if people are
keen to invest it is a good sign that the your idea could work well in the market
5. investors can track your progress - this may help you to promote your brand
through their networks
6. ideas that may not appeal to conventional investors can often get financed more
easily
7. your investors can often become your most loyal customers through the financing
process
8. it's an alternative finance option if you have struggled to get bank loans or
traditional funding
Disadvantages
Six disadvantages of crowdfunding:
1. it will not necessarily be an easier process to go through compared to the more
traditional ways of raising finance - not all projects that apply to crowdfunding
platforms get onto them
2. when you are on your chosen platform, you need to do a lot of work in building up
interest before the project launches - significant resources (money and/or time)
may be required
3. if you don't reach your funding target, any finance that has been pledged will
usually be returned to your investors and you will receive nothing
4. failed projects risk damage to the reputation of your business and people who have
pledged money to you
5. if you haven't protected your business idea with a patent or copyright, someone
may see it on a crowdfunding site and steal your concept
6. getting the rewards or returns wrong can mean giving away too much of the
business to investors

● Series “ Di de tro ve” of Bitis Hunter:

At the end of 2016 and early 2017, Vietnamese young people talked much about
the campaign “Đi để trở về” (which means: Going far to return/to come back
home), marking the outstanding “comeback stage” of Biti’s with the new brand:
Biti’s Hunter. By starting the controversial product placement in a screen cut of
music video named “Lac troi” of Son Tung MTP (a famous singer in Vietnam),
then raising a storm of debate which was that young people should travel or return
home on Tet Holiday with hashtag #teamdi (who agreed that they should go far on
Tet) and #teamtrove (who agreed that they should come home) on social networks,
and after that officially launching the “Di de tro ve” which means “going far to
return home” music video (ft. young singer up Soobin Hoang Son) as the final
answer of the brand, Season 1 of the campaign has been greatly successful,
making Biti’s be a brand in “Tet communication war” which was considered
merely for big brands.
In early 2018 and 2019, Biti’s continued Season 2 and 3 with the MV “Di de tro
ve 2” and “Di de tro ve 3” performed by Soobin Hoang Son and continuously
achieved certain successes, increasingly affirming the image of the brand of Biti’s
Hunter in consumers’ mind.
Before the campaign, Biti’s is a domestic brand (sneakers, slippers) with a tight
budget with small market share in Vietnam. It was nearly like a memorable
products in people’s childhood. It was popular in the past when Vietnam economy
was not good and people’ income was low. However, by understanding young
people’s mindset, Biti’s hunter made this campaign to express the spirit of “going
and experiencing” and to build up again their brand. What did they do?
1.Idea:

From young people’s perspective, Tet is a long holiday in Vietnam nowsaday.

Many young people want to travel to relax, to experience on those days instead of
coming home, while others shares that they need to go home to visit parents after
long-time far from home. It leads to a question which is “traveling or going home”
?

From brands’ perspective, Tet Holiday is regarded as the best time of year to for
many brands to launch their message about “Homing”. However, when most of
big brands talked about story of “coming back home”, Biti’s did opposite way
which was a story of “going far to return”. This story was new and different from
other brands but it did imply “homing” message, which was not against the
crowd’s mindset.

The idea of Biti’s Hunter was reinforced through music video- “Di de tro ve 1”
which the content of message was “going far to return” . In season 2, they implied
message which was “young people had a lot of journeys, but the most meaningful
journey is home”. In the season 3, they focused on “traveling toghether” on Tet
Holiday.

2. Action:

In Season 1 (2017), the campaign was divided into 3 stages:

-Stage 1: KOL’s debate on social network about: #teamdi (going far) and
#teamtrove (coming home) within 4 days
-Stage 2: Released MV “Lac troi” (Son Tung MTV singer) and “Di de tro ve”
(Soobin Hoang Son)

– Stage 3: PR activities on famous online news/magazine like Kenh14

Season 2 (in 2018) Biti’s also released “Di de tro ve 2”, then focused on PR
activities on Kenh14 and the competition about “Share the most meaningful
journey of yours” with Biti’s Hunter.

Season 3 (in 2918) they released “Di de tro ve 3” to reinforce their brand
awareness by emphasizing “Promise to go far together” by a competition (stories
sharing) with the prize which was going to Japan with family.

a. Social

Season 1, with the purpose of leading young people to the story of “Homing”,
Biti’s raised a storm of debate on Facebook, with KOLs participation. As a
temporary trend at that time, there were 87,000 talks/posts about #teamdi (going)
and #teamtrove (returning).
Season 2, Biti’s started a competition on Facebook. Biti’s encouraged fans to share
stories about their “meaningful journeys”. The prize was 500 tickets for coming
home. This activity was appealing to many fans and the result was 12,000
participants and many shares on social network.
Season 3, Biti’s continued kicking off new activity on Facebook which was “Hứa
sẽ đi cùng nhau” (Promise to go far together). Then, they received a lot of fans’
sharing about the journey of them and thier friends.
b. Video content:
On January 1, 2017, the MV “Di de tro ve” was released, opening the Season 1 of
the campaign. In addition, MV “Lac Troi” of Son Tung MTP was released on the
same day with a screen placement controversial when placing modern sneaker
with ancient costume style. It caused controversial topic on social network and
online press.
MV “Di de tro ve 2” and “Di de tro ve 3” launched on January 1, 2018 and 2019
with insight exploited from a new aspect: the trip to back home. The music videos
were intentionally released on the first day of January 1, not December 31,
because Biti’s wanted to choose a special day, the first day of the year, to let
young people navigate new journeys, but also did not forget “Go so far to return”.

c. PR

To make a successful marketing campaign, the support of press is very important

nowadays. Kenh14 was the press that Biti’s chose to do PR activities. Kenh14-
one of the most popular online press – usually updated information and follow the
campaign during season 1, 2 and 3.
3. Results

After 3 seasons, Biti’s and Biti’s Hunter (a small brand of Biti’s) has increasingly
carved into the minds of consumers with extremely meaningful messages for
young people: Going far, to explore, to experience, to grow up and then respect
return, cherish homing journey. In addition, Soobin Hoang Son and Son Tung
MTP were considered good choices for marketing campaign as celebrity
involvement because they are young and famous, have big fanclubs in Vietnam
and usually create trends that inspire young people. Their images are suitable for
Biti’s Hunter’ concept. As a result, the sale revenue of Biti’s has increased
significantly after those campaigns. Sometimes, the website was overloaded
because of huge number of visitors and orders. Products in Biti’s online and
offline were sold out quickly, and many consumers had to wait for weeks. It can
be considered the rise of Biti’s after years of silence.

Season 1:

2 MVs were in Youtube Trending for 21 consecutive days

MV “Đi để trở về” of Soobin Hoang Son is present in Zing’s social chart for 6
consecutive months.
Only the MV “Đi để trở về” has created 1.7 million social network interactions, in
which the brand mention accounts for more than 10%.
Achieve 300% of sales target within 7 days.
Number 1 Youtube Ads Leaderboard 2017 Tet
Best Asia Media Campaign Bronze Award, Best Use of Video Gold Award at the
PR Asia Awards 2017
Season 2:

MV “Đi để trở về 2” more than 38 million views within 1 month.

18 consecutive days in the top Youtube Trending
Ranked No. 3 in the top 10 campaign highlights on social media Tet 2018
(according to the ranking of YouNet Media)
Over 3,500,000 interaction and nearly 300,000 mentions on social networks
(according to YouNet Media’s ranking)
Sales grew by 250% compared to 2017, exceeding 60% of the target
Number 1 Youtube Ads Leaderboard 2018- in Vietnam
Besides those marketing campaigns for young people, Biti’s did some campaign
for special days like Women day (with image of Mr. Universal H’Hen Nie).
Furthermore, they made animation for kids as one of their market segments is
kids’ slipper and sneakers.

In conclusion, Biti’s did successfully marketing campaign (especially using SNS

marketing). Biti’s is expected to keep investing in Marketing to expand their
brands in the future.