USING BRAND AS AN EFFECTIVE WEAPON TO COMPETE IN THE MARKET:

A CASE STUDY OF NHAT LINH COMPANY

by
Duong Manh Cuong
A research study submitted in partial fulfillment of the requirements for the degree of Master of
Business Administration.
Examination Committee Dr. Truong Quang Chairman!
Dr. "ans #toessel
Dr. Clemens Bechter
$ationality %ietnamese
&re'ious Degree( Bachelor of Engineering
"anoi )ni'ersity of Transport * Communications
"anoi+ %ietnam
#cholarship Donor The ,o'ernment of #-it.erland/#-iss De'elopment
Cooperation #A%!
Asian 0nstitute of Technology
#chool of Management
Bang1o1+ Thailand
April 2334
ACKNOWLEDGEMENTS
0 -ish to express my profound gratitude and great appreciation to my ad'isor Dr. Truong Quang
for his 'aluable guidance+ ad'ice and encouragement throughout the research study.
#pecial than1s are extended to the other members of the Examination Committee+ Dr. "ans
#toessel and Dr. Clemens Bechter for ta1ing interest and gi'ing 'aluable suggestions to impro'e
the content of this study.
Deep appreciation and than1s are also extended to Mr. $guyen %an Dong Assistant Manager+
Mr. $guyen %an Bien+ Deputy Manager+ and Ms. $guyen Thu &huong of $hat 5inh Co. 5td. for
pro'iding me the needed information and data to complete this research study.
5ast but not least+ 0 -ould li1e to than1 the go'ernment of #-it.erland for pro'iding me a full
scholarship to study at #A% in "CMC+ %ietnam and at #chool of Management in Bang1o1+
Thailand.
ABSTRACT
0n a mar1et economy+ the success or failure of the companies depends on ho- they fulfill
consumers6 needs and -ants. 0n a fierce competition en'ironment+ companies must compete -ith
each other in terms of price+ quality+ ser'ices+ technology+ inno'ation+ and brand name+ etc. To
differentiate their products from other competitors6+ companies often create brand names for their
products or their corporate. Therefore+ branding has become an essential means for companies to
sur'i'e and de'elop in the long term.
0n case of -ide product portfolio+ 7branding8 e'en replaces 7mar1eting8 acti'ities. Many
companies recogni.e that branding is the most effecti'e -eapon to -in consumers6 purchasing
decision. 0ndeed+ attracting consumers becomes a 'ery difficult tas1 for any company in a highly
competiti'e mar1et.
Although a company gets many benefits from its brand name+ it is not easy to manage a strong
brand. To understand more ho- a company builds and manages its brand to get the full benefit
from it+ a study into the case of the 5i9A brand at $hat 5inh Co.+ 5td.+ an auto 'oltage stabili.er
A%#! manufacturer+ is underta1en.
The case study -ill focus on analy.ing the external mar1et en'ironment+ the company internal
situation and its brand de'elopment and management basing on inter'ie-s -ith the Company
managers and its employees. At the same time+ a customer sur'ey is carried out to e'aluate -hat
consumers 1no- about 5i9A6s brand name and products. :rom the analysis of the sur'ey results+
some recommendations for 5i9A branding management and communication program -ill be
made to help the Company manage its brand better and to strengthen its 5i9A brand name in the
A%# mar1et.
TABLE OF CONTENTS
Chapter 4;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4
0ntroduction;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4
1.1 Rationale of the Research......................................................................1
1.2 Problem Statement................................................................................1
1.3 Objectives of the Research....................................................................1
1.4 Research Methodology..........................................................................2
1.5 Scoe and !imitations of the Research.................................................3
1." Str#ct#re of the Research Reort..........................................................3
Chapter 2;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<
5iterature =e'ie-;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<
2.1 $ntrod#ction..........................................................................................4
2.2 %hat is a &rand'...................................................................................4
2.3 (he $mortance of &rand )ame............................................................5
2.3.1 The main contribution of brands........................................................5
2.3.2 A brand is more than a product.........................................................6
2.4 (he &rand *+#ity...................................................................................,
2.5 &rand $dentity........................................................................................,
2.5.1 Definition ..........................................................................................7
2.5.2 The brand position trap.....................................................................8
2.5.3 Four brand identity perspectives.......................................................8
2.5. The identity structure.........................................................................!
2." -al#e Proosition...................................................................................
2., Strategic &rand Management..............................................................1/
2.0 &rand osition......................................................................................12
2.. 1omm#nication Program.....................................................................13
2.1/ &rand !everage..................................................................................13
2.11 $mortant 2actors 2or &#ilding Strong &rands................................14
Chapter >;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?
A$A5@#0# 9: T"E C9M&A$@ C)==E$T #0T)AT09$;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?
3.1 *3ternal *nvironment 4nalysis...........................................................15
3.1.1 Macro *nvironment..........................................................................15
3.1.2 The "ndustry #nvironment...............................................................17
3.2 $nternal 4nalysis..................................................................................2/
3.2.1 $ompany %vervie&.........................................................................2'
3.2.2 $ompany (erformance...................................................................21
3.2.3 )trate*ic intent................................................................................23
3.2. $ompany )tructure.........................................................................2
3.2.5 $ompany resources and core competencies..................................2
3.3 S%O( 4nalysis....................................................................................3/
Chapter <;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>4
Company6s Brand Management;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>4
4.1 !iO45s Positioning ..............................................................................31
.1.1 The A+)s ,ar-et...........................................................................31
4.2 &rand 4nalysis.....................................................................................32
.2.1 The ori*in of the name....................................................................32
.2.2 .i%A symbo/....................................................................................32
.2.3 Trade mar- protection.....................................................................33
.2.3 Advertisin* activities........................................................................33
4.3 &rand Management ...........................................................................34
4.4 &rand !everage 4nd *3tension...........................................................34
4.4 (he 1omany5s &rand $ntention..........................................................35
4.4 1oncl#sion............................................................................................35
Chapter ?;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>A
findings 9: the Customer sur'ey;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>A
5.1 Overvie6 of the Samle5s 1haracteristics...........................................3"
5.2 1ons#mers5 &rand 46areness and their &ehavior..............................3"
5.2.1 0rand a&areness............................................................................36
5.2.2 0rand choice...................................................................................37
5.2.3 Factors Affectin* $onsumers $hoices of A+) 0rand.....................38
5.3 7#estions Relating (o !iO4 Prod#cts ...............................................3.
5.3.1 .i%A name......................................................................................3!
5.3.2 $ountry of ori*in..............................................................................'
5.3.3 .i%A -no&/ed*e information sources..............................................'
5.3. .i%A usa*e ....................................................................................1
5.3.5 $onsumers1 eva/uation of .i%A A+)..............................................1
5.3.6 (rice of .i%A A+)s.........................................................................2
5.3.7 .i%A shops convenience ...............................................................2
5.3.8 .i%A advertisement contents..........................................................2
5.3.! .i%A promotion pro*ram.................................................................3
5.4 1oncl#sion...........................................................................................43
Chapter A;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<?
De'eloping a Branding strategy for 5i9A;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<?
".1 8eveloing !iO4 &rand $dentity.........................................................45
6.1.1 The brand as a product...................................................................5
6.1.2 The 0rand2as2or*ani3ation..............................................................6
6.1.3 The 0rand2as2person4 0rand persona/ity........................................6
6.1. 0and as a symbo/............................................................................6
".2 &rand -al#e Proosition......................................................................4"
6.2.1 Functiona/ benefits..........................................................................6
6.2.2 #motiona/ benefits...........................................................................7
6.2.3 )e/f2e5pressive benefits..................................................................7
".3 &rand 4natomy of !iO4 ......................................................................4,
".4 !iO4 &rand Position............................................................................40
".5 &randing activities in line 6ith its intention strategies.....................40
6.5.1 $onso/idate .i%A brand name in the 6orth....................................8
6.5.2 #5pand its mar-et share and brand a&areness in the )outh..........5'
6.5.3 .i%A e5pansion to other forei*n mar-ets........................................51
6.5. .i%A $A0.# brandin* ...................................................................51
Chapter B;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;?2
Conclusion and recommendations;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;?2
,.1 1oncl#sions..........................................................................................52
,.2 Recommendations...............................................................................53
=eferences;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;??
A&&E$D0C;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4
LIST OF TABLES
Table 2.4 The Brand &osition Trap;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;D
Table >.4( %ietnam6s Economic 0ndicators;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?
Table >.2( #ummary of the Business 9pportunities and Threats;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;23
Table >.>( 5i9A A%# Current &roduct 5ine;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;24
Table >.<( #ales &erformance of $hat 5inh Co. 5td.+ 4EEA;2333;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;22
Table >.?( #ummary of the Company6s #trengths and Fea1nesses ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2E
Table >.A( #F9T Analysis #ummary;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>3
Table ?.4( :actors Affecting Consumers Choices of A%# Brand;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>D
Table ?.2( =espondent6s E'aluation of 5i9A A%#s;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<4
Table ?.>( =espondents6 E'aluation of 5i9A Ad'ertisement Contents;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<>
LIST OF FIGURES
:igure 4.4( =esearch :rame-or1;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2
:igure 2.4 A Brand 0s More Than a &roduct;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;A
44
:igure 2.2( The Brand Management &rocess;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;44
:igure 2.> ( A %ariety of Fays of 5e'eraging Brand;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4<
:igure >.4( Changes in :oreign Direct 0n'estment;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4A
:igure >.2( $hat 5inh Company6 s 9rgani.ational Chart;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2<
:igure <.4 5i9A 5ogo;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>>
:igure ?.4( =espondent6s A-areness about A%# Brands;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>B
:igure ?.2( Brand #election of =espondents;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>B
:igure ?.>( 0nformation #ource for Gno-ing 5i9A;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<3
:igure( A.4 5i9A Brand Anatomy;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<D
:igure B.4 The &roposed Model for #trategic Brand Management &rocess;;;;;;;;;;;;;;;;;;;;;;;;;;?<
Chapter 1
INTRODUCTION
11 Rat!"#a$e "% the Re&ear'h
0n a mar1et economy+ the success or failure of the companies depends largely on ho-
companies fulfill consumers6 needs and -ants. 0f the products or ser'ices meet the
consumers6 needs physical and emotional!+ consumers -ill be satisfied. 9nce they are
satisfied -ith the products+ they -ill continue to buy or refer to other consumers by means of
7-ord;of;mouth8. As a result+ the companies -ill enHoy a long;term profitability and
customer6s loyalty.
0n a fierce competition en'ironment+ companies must compete -ith each other in terms of
price+ quality+ ser'ices+ technology+ inno'ation+ and brand name+ etc. To differentiate their
products from other competitors+ companies often create brand names for their products or
their corporate. Consumers are made a-are of the products by their brand names -ith unique+
distincti'e and particular characteristics. 0n this case+ the choice of a customer for a product+
then+ is a result of brand recognition for quality or uniqueness of the company6s offer.
Therefore+ branding has become an essential means for companies to compete -ith other
competitors. 0n case of -ide product portfolio+ 7branding8 e'en replaces 7mar1eting8
acti'ities. Many companies recogni.e that branding is the most effecti'e -eapon to -in
consumers6 purchasing decision. 0ndeed+ attracting consumers becomes a 'ery difficult tas1
for any company in a highly competiti'e mar1et.
Although a company gets many benefits from its brand name+ it is not easy to create and
maintain a strong brand. To understand more ho- a company builds and manages its brand to
get the full benefit from that+ a study into the case of 5i9A brand at $hat 5inh Co. 5td.+ an
auto 'oltage stabili.er A%#!manufacturer is carried out.
1( Pr")$e* State*e#t
To compete -ith other competitors in automatic 'oltage stabili.er mar1et+ $hat 5inh
Company has to build its o-n brand name and manage it -ell. This study -ill see ho- the
Company manages its brand as an effecti'e -eapon to compete -ith other competitors.
1+ O),e't!-e& "% the Re&ear'h
This study focuses on analy.ing brand management of the Company. 0ts specific obHecti'es
are(
To analy.e the external mar1et en'ironment of the auto 'oltage stabili.er industry and the
Company situation.
To analy.e the current Company branding management process .
To sur'ey customer6 attitudes to-ards the Company6s brand/products.
To recommend a brand strategy and mar1eting communication program for the Company.
4
1. Re&ear'h Meth"/"$"01
The conceptual frame-or1 of the study can be illustrated by the :igure 4.4
F!02re 11: Re&ear'h Fra*e3"r4
Data '"$$e't!"#: Data for the study -ere collected from t-o sources(
Primary data: The primary data -ere gathered through direct in;depth inter'ie-s -ith the
Company6s Board of Directors+ Mar1eting Managers+ and other 1ey staff members of the
Company. 0n addition+ a sur'ey by questionnaire -as conducted to e'aluate the
consumers6 attitudes to-ard the Company6s brand/products. The number of
questionnaires sent out -as 233. Both buyers and non;buyers of the Company6s products
are respondents of the sur'ey.
Secondary data: rele'ant data on the current mar1et and possible target mar1et of the
Company and competition -ere collected from public media+ the Ministry of &lanning and
0n'estment+ %ietnam Chamber of Commerce and 0ndustry+ from the 0nternet+ and other
sources.
2
SWOT A#a$1&!&
SWOT A#a$1&!&
C"*pa#1 Bra#/!#0
C"*pa#1 Bra#/!#0
C"#&2*er S2r-e1
C"#&2*er S2r-e1
L!terat2re Re-!e3
L!terat2re Re-!e3
De-e$"p a Bra#/!#0 Strate01
De-e$"p a Bra#/!#0 Strate01
C"#'$2&!"# 5Re'"**e#/at!"#&
C"#'$2&!"# 5Re'"**e#/at!"#&
Data a#a$1&!&:
Qualitati'e analysis -as done for secondary data and primary data collected from inter'ie-s.
Quantitati'e analysis -as done for primary data collected from the questionnaire sur'ey in
order to e'aluate consumer6s brand a-areness+ factors affecting their purchase decision+ and
their attitudes to-ards 5i9A6s A%# products. The soft-are #&## 43.3 -as used to process
quantitati'e data.
16 S'"pe a#/ L!*!tat!"#& "% the Re&ear'h
Though the Company6s products are a'ailable throughout the country+ the customer sur'ey
-as done in "anoi and its 'icinity only+ as "anoi represents one of the t-o main mar1ets of
the A%# products.
The research ha'e some limitations due to follo-ing reasons( i! =ele'ant data collected from
different sources may be inconsistent. ii! 0t is difficult to get some sensiti'e information from
the Company6s managers. iii! 0t is difficult to get an o'erall picture of the attitude of
consumers throughout the country to-ards the Company products -hen the customer sur'ey
is only conducted in "anoi.
17 Str2't2re "% the Re&ear'h Rep"rt
The research report -ill be organi.ed as follo-s(
Chapter 4( A general introduction+ comprising rationale+ identification of the problem+
obHecti'es+ methodology of the research study and its scope and limitations.
Chapter 2( 5iterature re'ie-.
Chapter >( Analysis of the external en'ironment and the Company6s strengths and
-ea1nesses.
Chapter <( The Company6s current branding situation.
Chapter ?( :indings of the sur'ey on customer6s attitude to-ards the Company6s product.
Chapter A( De'eloping a branding strategy for the Company.
Chapter B( Conclusion and recommendations.
>
Chapter (
LITERATURE REVIEW
(1 I#tr"/2't!"#
An increasing number of the -orld6s most influential companies ha'e recogni.ed the
enormous 'alue of their brands. Fell;de'eloped bands ha'e become an effecti'e strategic
-eapon to -in consumer6s heart and mind. This applies for all companies+ big and small
ali1e.
Branding has become much more important recently because of the proliferation of choice
that is made a'ailable to consumers. To ha'e competiti'e ad'antage -ithin the -hole
industry+ the successful corporation should ha'e not only good quality of products+ ser'ices
abo'e other competitors but also good image in the consumersI mind. That is brand name.
Brand name makes the companys product distinctive from those of competitors.
This chapter -ill re'ie- the literature in'ol'ing building and maintaining brand. The chapter
-ill also highlight the importance of branding in the mar1etplace.
(( What !& a Bra#/8
There are many definitions of 7brand8. :ollo-ing are some of them(
Gotler 2333! defines a brand as 7a name+ term+ sign+ symbol+ or design+ or a combination
of them+ intended to identity the goods or ser'ices of one seller or group of sellers and to
differentiate them from those of competitors.8
According to "an1inson and Co-1ing 4EEA!+ a brand is a simply a product or ser'ice
-hich can be distinguished from its competitors. The distincti'eness reflects a brand6s
positioning relati'e to the competition and by its personality. #uccessful brands are those
-hich meet the needs and aspirations of a defined target mar1et.
Gapferer 4EE2! ma1es a clear distinction in -riting that+ 7products are -hat the company
ma1esJ -hat the customer buys is a brand.8 Therefore brand can be understandable as the
product in the customer 'ie-point. A brand is landmar1. Buyers are actually purchasing a
position in the minds of potential customers be in the stalls or in the royal circle.
Arnold 4EE2! comments that brand is the personality or identity of a product+ range of
products or an organi.ation+ deri'ed from consumer perception of both tangible and
intangible attributes. Brands are recogni.ed and understood on an emotional le'el+ in a
-ay that most of their founders -ould find astonishing.
Tennant 4EE<! also has a similar definition of a brand as a sign of identification+ the label
that differentiates your product from those of your competitor. A brand also can act as a
type of shorthand encapsulating the 1ey features of the product such as its image+ use and
price in an easily recogni.ed and remembered form.
0n short+ all these authors agree that a brand identifies the seller or maker. 5i1e identification
cards+ it is a -ay of differentiating the company6s product from those of another company.
This becomes the increasingly important issue in fiercer competition no-adays+ -here
consumers al-ays ha'e a greater choice of offers.
<
(+ The I*p"rta#'e "% Bra#/ Na*e
(+1 The *a!# '"#tr!)2t!"# "% )ra#/&
As stated earlier+ many companies ha'e recogni.ed brands as a po-erful strategic -eapon.
&o-er brands can pro'ide their o-ners -ith considerable re-ards if handled correctly and
managed sensibly. They can ensure a gro-th in mar1et share and corporate profitability.
#tobart 4EE<! points out three reasons -hy brands play an important role to their o-ners(
To serve as a focus for consumer loyalty. Thus+ they can be de'eloped into assets that
generate steady and reliable streams of cash flo-. They help to guard against competiti'e
encroachment.
To capture the promotional investment put into it. Enormously 'aluable brands li1e Coca+
Goda1+ &epsi and Marlboro are still benefiting massi'ely from the past huge ad'ertising.
This ability to capture promotional in'estment is in direct contrast to -hat happens -ith
generic goods or commodities+ -hich ha'e no brand name or image.
To be of critical strategic importance to their owners. 0n fact+ brands enable
manufacturers to communicate directly -ith consumers regardless of the actions of the
middleman. This communication gi'es their producers po-er to-ard retailers.
Temporal 2333! indicates the benefits of po-er brands to-ards companies and
consumers as bello-s(
The market power of brands: "ere are some -ays in -hich strong brands can transform
ordinary businesses into elite ones
#ur'i'al in ad'erse condition
5onge'ity
Transportability across national cultures
,reater distribution po-er
Crossing mar1et boundaries
#taff moti'ation+ recruitment and loyalty
Mo'ing a-ay from commodity status
The financial rewards of brands: &o-erful brands pro'ide long;term security and gro-th+
higher sustainable profits+ and increased asset 'alue because they achie'e(
Competiti'e differentiation
&remium prices
"igher sales 'olumes
Economies of scale and reduced costs
,reater security of demand
?
:or consumers+ they buy branded products because of the follo-ing reasons(
Brands generate choice
Brands simplify decisions
Brands offer quality assurance and reduce ris1s
Brands help self;expression
Brands offer friendship and pleasure
(+( A )ra#/ !& *"re tha# a pr"/2't
Brand is more than a product. Branding is about the -ay people percei'e+ not about the
products in isolation Aa1er+ 4EEA!.
A brand represents a pact bet-een brand o-ner and consumer. Brand allo-s consumers to
shop -ith confidence in -hat is an increasingly complex -orld. The brand offers the
consumer a guarantee of quality+ 'alue and product satisfaction.
&roducts cannot spea1 for themsel'es. The brand is -hat gi'es them meaning and spea1s for
them. :igure 2.4 describes all possible attributes of a brand.
The most important attribute of a successful brand is+ of course+ the product itself. Creating a
brand image for a product+ -hich does not match the consumers6 expectation+ is a formula for
a certain failure Tennant+ 4EE<!.
"o-e'er+ non;tangible factors ha'e come to play an increasingly important role. =ecently+ the
-ay in -hich branded products or ser'ices ha'e been distinguished from one another has
increasingly concerned non;tangible factors rather than tangible factors. Therefore+ branding
has become a highly s1illed and speciali.ed discipline. 0t concerns -ith managing and
maintaining a mix of factors+ both tangible and intangible to attract consumer loyalty #tobart+
4EE<!.
F!02re (1 A Bra#/ I& M"re Tha# a Pr"/2't
#ource( Aa1er 4EEA!
A
PRODUCT
S'"pe
Attr!)2te&
92a$!t1
U&e&
Brand
&ersonality
9rgani.ational
Associations
Country of 9rigin
#elf;Expressi'e
Benefit
Emotional
benefit
Brand;Customer
=elationships
#ymbol
)ser 0magery
BRAND
BRAND
(. The Bra#/ E:2!t1
)psha- 4EE?! defines 7the brand equity is the total accumulated 'alue or -orth of a brandJ
the tangible and intangible assets that the brand contributes to its corporate parent both
financially and in terms of selling le'erage.8
Brand equity can be defined as the added 'alue pro'ided to a product or company by its brand
identity. 0t is the set of associations and beha'iors that increase or decrease the 'alue of the
brand compared to its financial 'alue alone &ettis+ 4EE?!.
0t is pointed out that brand equity does not Hust happenJ it is a combination of quality product+
ad'ertising+ mar1eting programs+ point;of;sale programs ; a bundle of consumer experiences
that create the ultimate brand image. 0t requires a long sophisticated process of the brand
building and maintaining.
According to Gotler 2333!+ a brand can con'ey up to six le'els of meaning. There are
attributes+ benefits+ 'alues+ culture+ personality and users. The challenge in branding is to
de'elop a deep set of meaning for a brand+ it is called as a deep brandJ other-ise it is a
shallo- brand. :or instance+ Mercedes is a deep brand because -e understand its meaning
along all six dimensions.
This author also suggests fi'e measurements of brand equity. Brands 'ary in the amount of
po-er and 'alue they ha'e in the mar1etplace(
Brand unawareness( most buyers in the mar1etplace do not 1no- that brand.
Brand awareness( brands for -hich buyers ha'e fairly 1no-n measured either by brand
recall or recognition!.
Brand acceptability: most consumers -ould not resist buying these brands.
Brand preference: brands that are enHoy a high degree of brand preference. Consumers
-ould select those brands o'er the others.
Brand loyalty: brands command high degree of brand loyalty. The loyal consumer -ill
-al1 out of the store to buy it else-here in case of stoc1;out of his fa'orite brand.
0t is noted that brands ha'e become tradable assets. There ha'e been many big mergers and
acquisitions o'er last decades. 0n most cases+ the price of the acquired company highly
exceeds its tangible assets example the cases of $estle and =o-ntree!. 0t is reasonable to
thin1 that the extra 'alue comes from the company6s brand.
(6 Bra#/ I/e#t!t1
(61 De%!#!t!"#
A brand identity pro'ides direction+ purpose and meaning for the brand. Aa1er 4EEA! gi'es a
'ariety of definitions of brand identity such as(
Brand identity is a unique set of brand associations that the brand strategist aspires to
create or maintain. These associations represent -hat the brand stands for and imply a
promise to customers6 form the organi.ation member.
Brand identity should help establish a relationship bet-een the brand and the customer by
generating a 'alue proposition in'ol'ing functional+ emotional or self;expressi'e benefits.
B
Brand identity consists of t-el'e dimensions organi.ed around four perspecti'es ; the
brand;as;product+ brand;as;organi.ation+ brand;as;person+ and brand;as;symbol.
Brand identity structure includes a core+ extended and proposition identity. A brand
identity is to brand strategy -hat 7strategic intent8 is to a business strategy. #trategy intent
in'ol'es an obsession -ith -inning real inno'ation+ stretching the current strategy and a
for-ard;loc1ing dynamic perspecti'e.
(6( The )ra#/ p"&!t!"# trap
A brand position has been defined as 7the part of the brand identity and 'alue proposition that
is to be acti'ely communicated to the target audience and that demonstrates an ad'antage o'er
competing brands8.
Thus+ the brand position guides the current communication programs and is distinct from the
more general brand identity construct. There is a distinction bet-een three related constructs
as illustrated in the Table 2.4.
The brand position trap occurs -hen the research for a brand identity becomes a search for a
brand position+ stimulated by a practical need to pro'ide obHecti'es to those de'eloping the
communication programs. The goal becomes an ad'ertising tag line rather than a brand
identity.
Ta)$e (1 The Bra#/ P"&!t!"# Trap
Bra#/ I*a0e Bra#/ I/e#t!t1 Bra#/ P"&!t!"#
"o- the brand is
no- recei'ed
"o- strategists -ant the
brand to be percei'ed
The part of the brand identity and
'alue proposition to be acti'ely
communicated to a target audience
Source: Aa1er 4EEA!
(6+ F"2r )ra#/ !/e#t!t1 per&pe't!-e&
Aa1er 4EEA! classifies brand identity into < categories(
;1< The )ra#/=a&=pr"/2't
Although strategists should a'oid the product;related associations+ they remain to be an
important part of a brand identity as they are directly lin1ed to brand choice decisions and the
use experience. &roduct;related associations may comprise product;scope+ product attributes+
quality/'alue+ uses+ users and country of origin.
;(< The )ra#/=a&="r0a#!>at!"#
The brand;as;organi.ation perspecti'e focuses on attributes of the organi.ation rather than
those of the product or ser'ice. #uch organi.ational attributes as inno'ation+ a dri'e for
quality+ and the concern for the en'ironment are created by the people+ culture+ 'alues+ and
programs of the company. 9rgani.ational attributes are more enduring and more resistant to
competiti'e claims than are product attributes. 0t is difficult to duplicate an organi.ation -ith
unique people+ 'alues+ and programs. These attributes may apply to a set of product classes.
D
;+< The )ra#/&=a&=per&"#: )ra#/ per&"#a$!t1
The brand;as;person perspecti'e suggests a brand identity that is richer and more interesting
than one based on product attributes. 5i1e a person+ a brand can be percei'ed as being
upscale+ competent+ impressi'e+ trust-orthy+ fun+ acti'e+ humorous+ casual+ formal+ youthful+
or intellectual. A brand personality can create a stronger brand in se'eral -ays. :irst+ it can
help create a self;expressi'e benefit that becomes a 'ehicle for the customer to express his or
her o-n personality. #econd+ brand personality can be the basis of a relationship bet-een the
customer and the brand. Third+ a brand personality may help communicate a product attribute
and thus contribute to a functional benefit.
;.< The )ra#/=a&=&1*)"$
A strong symbol can pro'ide cohesion and structure to an identity and ma1e it much easier to
gain recognition and recall. 0ts presence can be a 1ey ingredient of brand de'elopment and its
absence can be substantial handicap. #ymbols in'ol'ing 'isual imagery can be memorable
and po-erful. A strong symbol can be the cornerstone of a brand strategy.
(6. The !/e#t!t1 &tr2't2re
Brand identity consists of a core identity and an extended identity. 0n addition+ the identity
elements are organi.ed into enduring patterns of meaning+ often around the core identity
elements Aa1er+ 4EEA!.
;1< C"re !/e#t!t1
The core identity represents the timeless essence of the brand+ -hich contains the associations
that are most li1ely to remain constant as the brand enters to ne- mar1ets and products
classes. 0n addition+ the core identity for a strong brand should be more resistant to change
than elements of the extended identity. )ltimately+ the core identity follo-s from the ans-ers
to some tough+ introspecti'e questions+ such as(
Fhat is the soul of the brandK
Fhat are the fundamental beliefs and 'alues that dri'e the brandK
Fhat are the competencies of the organi.ation behind the brandK
Fhat does the organi.ation behind the brand stand forK
;(< E?te#/e/ I/e#t!t1
The extended brand identity includes elements that pro'ide texture and completeness. 0t fills
in the picture+ adding details that help portray -hat the brand stands for. 0mportant elements
of the brand6s mar1eting program that ha'e become or should become 'isible associations can
be included. A brand personality does not often become a part of the core identity. "o-e'er+
it can be exactly the right 'ehicle to add needed texture and completeness by being part of the
extended identity Aa1er+ 4EEA!.
The extended brand identity may include product scope+ retail experience+ slogan+ logo+
personality+ and relationship.
(7 Va$2e Pr"p"&!t!"#
Aa1er 4EEA! stated that 7a brand6s 'alue proposition is a statement of the functional+
emotional and self;expressi'e benefits deli'ered by the brand that pro'ide 'alue to customer.
E
An effecti'e 'alue proposition should lead to a brand;customer relationship and deri'e
purchase decision.8
&ropositioning is a description of an appeal of a brand to its consumers. 0t offers the reason
-hy a consumer might prefer the brand. There are three types of benefit+ -hich brand name
product/ser'ice can bring to consumers(
Functional benefit: The benefit based on a product attribute that pro'ides functional utility
to the consumer. #uch a benefit -ill usually relate directly to the functions performed by
the product or ser'ice for the customer. The functional benefits ha'e limitation of failure
to differentiate+ easy to copy. 9ther benefits attributes can o'ercome those limitations.
motional benefit: Fhen the purchase or use of a particular brand gi'es the customer a
positi'e feeling+ that brand is pro'iding an emotional benefit. 0t adds richness and depth to
the experience of o-ning and using the brand.
Self!e"pressive benefit: A brand can pro'ide a self;expressi'e benefit by pro'iding a -ay
for a person to communicate his or her self;image.
:or each indi'idual+ the people -ill ha'e an associated self;concept and a need to express that
self;concept. The purchase and use of brands is one -ay to fulfill this need for self;
expression. :or example+ using a positioned brand name products/ ser'ice -ith strong
personality associated -ith a 'isible athlete generates self;expression Aa1er+ 4EEA!.
(@ Strate0!' Bra#/ Ma#a0e*e#t
Brand management is abo'e all about balancing 'ariety of inputs. Balances ha'e to be struc1
bet-een the external mar1et and internal capabilities of the companyJ bet-een the company6s
inputs into the product and the influences on the consumer perceptionJ bet-een the short;term
need to maximi.e profit and the long;term need to in'est and de'elop Arnold+ 4EE2!.
This author also suggests a model for the brand management process containing fi'e steps as
illustrated in :igure 2.2.
This model describes the brand management process as an incremental one+ -hich stands at
the Hunction of company and consumer. Brand management encompasses all steps of this
process.
Step 1: Mar4et a#a$1&!&
Basic mar1et analysis is abo'e all the trac1ing of trends. 0nformation must be gathered
continuously+ li1e military intelligence. A company must understand the follo-ing aspects of
its territory(
The si.e and scope of the mar1etJ
The segment in the mar1etJ
The players in the mar1et and their positionsJ
The trends in all these areas.
43

F!02re ((: The Bra#/ Ma#a0e*e#t Pr"'e&&
Source: Arnold 4EE2!
Step (: Bra#/ &!t2at!"# a#a$1&!&
Brand situation analysis should produce(
An in;depth understanding of the brand personality and 'aluesJ
A picture of the brand anatomy+ and ho- its attributes are contributing to its o'erall
positionJ
The same information for competitors brands.
Step +: Tar0et!#0 %2t2re p"&!t!"#
The strategy formulation phase should produce(
A 'ie- on the future character of the mar1etJ
A strategy outlining the future targeted brand positionJ
Benefits offeredJ
Brand personality de'elopmentJ
#cope of brandJ
44
Mar4et A#a$1&!&
Mar1et definition
Mar1et segmentation
Competitor positions
Trends
Mar4et A#a$1&!&
Mar1et definition
Mar1et segmentation
Competitor positions
Trends
Mar4et A#a$1&!&
Brand personality/
0ndi'idual
Mar4et A#a$1&!&
Brand personality/
0ndi'idual
Tar0et!#0 F2t2re P"&!t!"#&
:uture de'elopment/
Brand strategy
Tar0et!#0 F2t2re P"&!t!"#&
:uture de'elopment/
Brand strategy
Te&t!#0 Ne3 O%%er&
0ndi'idual elements of mix
Test mar1ets total offer!
Te&t!#0 Ne3 O%%er&
0ndi'idual elements of mix
Test mar1ets total offer!
P$a##!#0 5 E-a$2at!#0 Per%"r*a#'e
5e'el of expenditure
Type of support acti'ity
Measurement against obHecti'es
P$a##!#0 5 E-a$2at!#0 Per%"r*a#'e
5e'el of expenditure
Type of support acti'ity
Measurement against obHecti'es
Target segment.
Step .: Te&t!#0 #e3 "%%er&
The practice of ad'ance testing is designed to do the follo-ing(
,ain understanding of contribution of indi'idual brand attributes to the o'erall positionJ
Assess ho- changes to any element of the brand -ill influence its positionJ
Test the total brand proposition -hen attac1ing ne- mar1ets or after fundamental change.
Step 6: P$a##!#0 a#/ e-a$2at!#0 per%"r*a#'e
&lanning and trac1ing acti'ities are designed to pro'ide the follo-ing(
A clear plan for timing and obHecti'es in consumer terms! of mar1eting acti'ityJ
A basis for Hudging the le'el of acti'ity and in particular the le'el of expenditure
necessary to achie'e those obHecti'esJ
A program of e'aluation mechanisms to monitor progressJ
A basis for continuing mar1et analysis.
(A Bra#/ p"&!t!"#
Brand position is the part of the brand identity and value proposition that is actively
communicated to the target audience and that demonstrates an advantage over competing
brands.
The four salient characteristics of a brand position as reflected by the phrases 7part+8 7target
audience+8 7acti'ely communicated+8 and 7demonstrates ad'antage.8
;1< A part "% the !/e#t!t1B-a$2e pr"p"&!t!"#
Fhen a brand position exists+ the brand identity and 'alue proposition can be de'eloped fully+
-ith texture and depth. They do not ha'e to be concise statements of -hat is to be
communicated+ because the brand position ta1es on that role.
Brand position can be changed -ithout changing the identity or 'alue proposition of -hich it
is a subset. The brand position includes the core identity+ points of le'erage -ithin the identity
structure+ and the 'alue proposition benefits that dri'e relationships!.
;(< The tar0et a2/!e#'e
The brand position should also target a specific audience+ -hich may be a subset of the
brand6s target segment. There can also be a primary and secondary target audience.
;+< A't!-e '"**2#!'at!"#
That implies that there -ill be specific communication obHecti'es focused on changing or
strengthening the brand image or brand;customer relationship. These obHecti'es+ if feasible+
should be accompanied by measurement.
Brand image reflects current perceptions of a brand. 5i1e brand identity+ brand position is
more aspirational+ reflecting perceptions that strategists -ant to ha'e associated -ith the
brand.
42
Comparison of the identity -ith image -ill usually result in one of three different
communication tas1s being reflected in brand position statement( augmenting an image#
reinforcing an image or diffusing an image.
;.< De*"#&trate a# a/-a#ta0e
:inally+ brand position should demonstrate an ad'antage o'er competitors. The bottom line is
that the position should specify a point of superiority that is a part of the 'alue proposition.
The point of ad'antage should resonate -ith customers and be differentiating;that is+
represent something different from -hat competitors pro'ide.
(C C"**2#!'at!"# Pr"0ra*
The communication program consists of the follo-ing acti'ities Gotler+ 2333!
4. 0dentifying the target audience
2. Determining the communication obHecti'es
>. Design the message
<. #elect communication channels
?. Establish the total mar1eting communications budget
A. Decide on the communication mix
B. Measure the communications6 results
D. Manage the integrated mar1eting communication process
(1D Bra#/ Le-era0e
9ne recipe for strategic success is to create and le'erage assets. Fith its a-areness+ percei'ed
quality+ associations and customers loyalty+ a brand is usually the most po-erful asset that a
firm o-ns. A strategic question+ then+ is ho- that brand can be le'eraged to create larger and
stronger business entities.
4>
LEVERAGING
THE BRAND
LEVERAGING
THE BRAND
Stret'h!#0 the
Bra#/ Vert!'a$$1
in existing
&roduct Class
Stret'h!#0 the
Bra#/ Vert!'a$$1
in existing
&roduct Class
Bra#/
E?te#&!"#&
in different
&roduct Class
Bra#/
E?te#&!"#&
in different
&roduct Class
C"=Bra#/!#0
C"=Bra#/!#0
L!#e E?te#&!"#&
in existing
&roduct Class
L!#e E?te#&!"#&
in existing
&roduct Class
A/ H"'
Bra#/
Extensions
A/ H"'
Bra#/
Extensions
Creat!#0 a
Ra#0e Bra#/
Creat!#0 a
Ra#0e Bra#/
Stret'h!#0
Up
Stret'h!#0
Up
Stret'h!#0
D"3#
Stret'h!#0
D"3#
F!02re (+ : A Var!et1 "% Wa1& "% Le-era0!#0 Bra#/
#ource( Aa1er 4EEA!
(11 I*p"rta#t Fa't"r& F"r B2!$/!#0 Str"#0 Bra#/&
To ma1e brands strong+ the follo-ing guidelines in order should be implemented Aa1er+
4EEA!
4. Brand identity
2. %alue proposition
>. Brand position
<. Execution
?. Consistency o'er time
A. Brand system
B. Brand le'erage
D. Trac1ing brand equity
E. Brand responsibility
43. 0n'est in brands
4<
Chapter +
ANALYSIS OF THE COMPANY CURRENT SITUATION
+1 E?ter#a$ E#-!r"#*e#t A#a$1&!&
A company6s external en'ironment consists of the industry en'ironment in -hich the
Company competes and the country in -hich it is located. 0n this chapter+ factors influencing
A%# industry -ill be considered.
+11 Ma'r" E#-!r"#*e#t
E'"#"*!' E#-!r"#*e#t
0n an effort to o'ercome the currently stagnant trend and try to boost the economic gro-th of
the country+ the %ietnamese go'ernment has implemented the open;door and reform policy
since 4EDA. As a result+ the country has achie'ed considerable economic de'elopment since
then.
:rom its lo- le'el of ,D& gro-th of <L in 4EDB+ the annual gro-th rate increased to D;EL
since the early 4EE3s+ a'eraging B.> percent annually for the past decade. Due to the Asian
financial crisis+ ho-e'er+ the ,D& gro-th fell to ?.D and <.B percent in 4EED and 4EEE+
respecti'ely. 0n 2333+ the ,D& increased to A.B?L+ signaling the beginning of a reco'ery
period %ietnam #tatistics 9ffice+ 2333!.
Ta)$e +1: V!et#a*E& E'"#"*!' I#/!'at"r&
E'"#"*!' !#/!'at"r& 1CC+ 1CC. 1CC6 1CC7 1CC@ 1CCA 1CCC (DDDF
,D& gro-th rate L! D.4 D.D E.3 E.> D.D ?.D <.B A.B?
,D& )#M billion! 4A 4B.B 4E.< 24.2 2>.4 2<.< 2?.? >3.2
Export ,ro-th rateL! $/A $/A $/A >A.A 2A.A 4.E 2>.4 23.2
0mport ,ro-th rateL! $/A $/A $/A >>.2 <.3 ;3.D 3.E 2A.?
0nflation rate L! ?.2 4<.< 42.B <.? >.A D.2 3.4 ;3.?
Exchange rate %$D/)#M! 43+D33 44+333 44+233 44+433 4>+333 4<+333 4<+3<3 4<.?A3
#ource( ,eneral #tatistic 9ffice+ 2333! and N! %ietnam %enture ,roup+ 2334!
:or many years+ the inflation rates ha'e been 1ept under control. :rom D33L in 4EDB+ the
inflation rate -as brought do-n to a reasonable le'el Table >.4!. 0n 4EEE+ the inflation rate
-as further decreased to 3.4L and ;3.?L in 2333. That -as caused by low purchasing power
of %ietnamese people.
After a booming period from 4EDD to 4EEA+ foreign direct in'estment :D0! has decreased
since 4EEB :igure >.4!. This do-nturn has affected the economic gro-th and de'elopment in
recent years.
4?
F!02re +1: Cha#0e& !# F"re!0# D!re't I#-e&t*e#t
#ource( Data of 4EDD to 4EEB( M&0+ 4EEDJ Data of 4EED;2333( $guyen+ 2334.
0n deed+ the Asian financial crisis forced a number of foreign in'estors in %ietnam to
-ithdra- or restructure their business. 0n addition to numerous high ris1s associated -ith the
%ietnamese mar1et e.g. poor infrastructure and a lac1 of transparency in the legislati'e
system!+ foreign in'estors are generally becoming more prudent in direct in'estment. The
slo-do-n in :D0 acti'ities is negatively affecting the demand for industrial $%Ss# as foreign
in'estors used to buy a large amount of A%#s for their in'estment proHects.
Another important e'ent is that %ietnam is expected to Hoin A:TA in 233>+ i.e. the tariffs for
many import and export products -ill be remo'ed or reduced. 9n the one hand+ it -ill be
much easier for companies to import materials -ith lo-er prices and expand its mar1et to
other neighboring countries. The competition -ill be stronger as foreign competitors -ill also
extend their mar1et to other countries. Therefore+ pri'ate enterprises can favorably e"pand its
market internationally. They+ ho-e'er+ ha'e to prepare for coping -ith future foreign
competitors.
De*"0raph!' a#/ S"'!a$ E#-!r"#*e#t
Fith the population of around D3 million at present ,eneral #tatistics 9ffice+ 2333!+ %ietnam
is among the most populous countries in the -orld. 0ts urban population is 2>.?L in 4EEE
4E.<L in 4EDE census!+ and the urbani.ation rate is still on the rise due to the current
industriali.ation dri'e of the country.
The educational le'els of the %ietnamese people ha'e been increased together -ith their
income per capita also increases+ especially in large cities such as "anoi and "o Chi Minh
Cities. 0n addition+ the number of personal computers has been increased rapidly+ -hich
heighten the demand for A%# and )&#.
4A
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Number of projects
Registered capital (millio !"#$
The analysis of the economic environment has shown that %ietnams economy has slowed
down since &''(. This results in a slow growth of some industries like construction# and of
the purchasing power of %ietnamese consumers. Therefore# this may in turn cause low
demand for electric home appliances as well as $%Ss. From )**+ on# private enterprises
will be able to e"pand their market to other countries# as a result of %ietnam ,oining $FT$
but to do so they also have to cope with fierce competition from foreign producers.
The economic de'elopment in recent years has brought about the emergence of a middle+
-hich is estimated at ? to AL of the population http(//tradeport.org/mar133AB.shtml!.
Therefor# the demand for durable products will increase and thereby open a potential market
for $%S producers.
"o-e'er+ there is a big gap bet-een li'ing standards of the urban areas and the countryside.
Differences in annual income and purchasing po-er can be seen bet-een the $orth and the
#outh of the country. A report Hointly prepared by the FB+ )$D& and ADB points out that
%ietnam remains a poor country( >BL of the population still li'es under the po'erty line and
A3L of the labor force+ 2? million people+ are underemployed or unemployed. Thus# the
market for $%S products at present is mainly concentrated in big cities.
0n addition+ the consumers ha'e become more sophisticated by getting acquainted -ith ne-
methods of mar1eting in a consumption mar1et. According to a research on %ietnamese
consumers6 beha'iors conducted by AC$ielsen Co.+ %ietnamese consumers began to pay
attention to brand name more than e'er before #aigon Times Fee1ly+ 9ctober 4<+ 4EEE!.
Therefore# producers with well!known brands will benefit from this trend.
Te'h#"$"0!'a$ E#-!r"#*e#t
Most of the equipment and production processes being used in the country are out;of;date+
e'en in foreign/O% companies. %ietnam has many sources of ra- materials but it still has to
import some semi and final products. :or example+ due to a lac1 of state;of Pthe;art
technologies to process its ra- materials+ some A%# producers ha'e to import silica metal bar
and bron.e -ires in order to ensure high quality of their products.
P"$!t!'a$ a#/ Le0a$ E#-!r"#*e#t
The Enterprise 5a-+ -hich -as issued in Oanuary 4+ 2333+ is -idely regarded as a 'ery
positi'e addition to the %ietnam6s legal frame-or1 for pri'ate sector de'elopment. 0n effect+
it abolishes se'eral redundant of pre'ious legislation by introduce a one;step registration
system. 0t also allo-s companies to engage in all acti'ities unless officially prohibited.
The Enterprise 5a- -as seen as a big push for local businesses and if implemented
consistentlyJ it -ill certainly impro'e the business en'ironment greatly. 0n practice+ this
attempt to de'elop the #ME6s sector has been th-arted by the follo-ing shortcomings(
Complicated administrati'e procedures in implementing the 5a-.
0nterference of the go'ernment in the mar1et forces+ -hich pre'ent fair competition.
#till lac1ing appropriate policies and incenti'es regarding ban1 credit.
Though the legal frame-or1 for the operation of #MEs has yet to complete+ #MEs ha'e
enHoyed increasing attention from international donors+ such as )$D&+ FB+ ADB+ M&D:.
#upports of these international donors are in the forms of soft loans+ technical assistance+ etc.+
aiming at enhancing the competiti'eness of %ietnamIs economy.
+1( The I#/2&tr1 E#-!r"#*e#t
The &orter6s fi'e;force model &orter+ 4ED?! is used to analy.e competiti'e situation in the
A%# industry in order to identify the opportunities and the threats of the Company.
4B
The macro environment signals both opportunities and threats for private enterprises# in
general# and for $%S producers# in particular. -pportunities include simpler
application.licensing procedures# easier access to soft loans provided by international
donors# and customers increasing attention to brand# etc. /owever# there are still many
obstacles on the way to their full development# such as incomplete legal framework for
their operation and high competition from several sources# both local and foreign.
The r!&4 "% #e3 e#tr1 )1 p"te#t!a$ '"*pet!t"r&
#o far+ only domestic companies compete in the A%# industry in %ietnam. :oreign
companies ha'e not yet entered the A%# mar1et because of 'arious reasons+ such as high
import tax and high transportation fee+ etc. :urthermore+ they do not thin1 that this is a big
mar1et for them to enter in a long run+ as the need for using A%# arises+ only -hen the
electric current is unstable. )sing A%# to 1eep the po-er current stable is Hust a situational
solution. Fhen the country pro'ides enough po-er and has a good po-er distribution system+
it is not necessary to use A%#.
:ollo-ing are discussions of forces affecting the ris1 of ne- entry by potential competitors(
Capital requirement
At present+ it is easy for a local company to enter into this industry. The A%# business usually
does not require much money to run. E'eryone can set up a business -ith %$D 2 billion up
front capital. E'en some small -or1shops can also produce the products.
Product differentiation
There is not much difference in A%# products. &roduction technology in use is almost similar
in 'arious companies. Therefore+ ne- companies can compete -ith established ones easily in
terms of technology. "o-e'er+ the product durability depends mainly on the quality of the
silica metal bars co'ered by bron.e -ires. And high quality silica metal bars can only be
imported. $e- domestic companies -ith small in'estment are facing difficulties in buying
these high quality materials. Big companies get the ad'antages than1s to their economies of
scale.
Easy access to technology
0n the A%# industry+ companies can easily access to technology. Different companies can
ha'e the same technology. :urthermore+ there is no disrupti'e technology in this industry at
present. "o-e'er+ it ta1es time and efforts for small companies to buy the technology since
the technology for producing A%# must be imported.
Economies of scale
Among companies in this industry+ only a fe- ha'e higher mar1et share and dominate the
mar1et. These big companies may ha'e the economies of scale and the ability to import high
quality materials. This -ill be a barrier for ne- entry and a disad'antage for existing small
producers in the industry.
Established brand in customers
As mentioned in #ection >.4.4+ customers are increasingly paying attention to brands. Brand
identity and a-areness are also maHor obstacles for ne- companies to compete in the mar1et.
Consumers often see1 for products offered by long established and -ell;1no-n companies in
the industry. Thus+ it is difficult for ne- companies+ e'en -ith big in'estment capital+ to
compete in the mar1et.
4D
Current situation of industry
The A%# industry already has a 'ery high competiti'e structure and reached a mature phase.
#ome big companies are playing significant role in the mar1et and 'irtually dominate the
industry. At present+ there are about 0* domestic companies ser'ing the A%# mar1et. Most of
them are located in "o Chi Minh City. 1hat 2inh 3o. is the only big $%S company located in
/anoi. Therefore# it is not easy for producers in /o 3hi 4inh 3ity to e"pand their markets to
/anoi and not easy for new entrants to enter into the $%S market in /anoi.
R!-a$r1 a*"#0 '"*pet!t"r&
Slow growth of industry
The slo- gro-th of the A%# mar1et at this moment has forced companies to compete fiercely
in order to ta1e o'er the mar1et shares of others. The demand for the product is slo-ing do-n
in big cities such as "anoi and "o Chi Minh City+ but increasing in other pro'inces
Company report+ 2333!. To o'ercome this challenge+ companies ha'e to expand their
business to other pro'inces. This -ill create a strong competition among exiting companies in
the industry all o'er the country.
Brand identity
As consumers are beginning to pay attention to brand name -hen they -ant to buy A%#
products+ the fi'e biggest local A%# producers ha'e spent a lot in ad'ertising+ sponsorship
and public relations programs to create consumers6 a-areness to-ards their brand names.
&roducers -ith -ell;1no-n brand name ha'e gained competiti'e ad'antage+ -hile other small
companies are actually left -ith fragmented and small shares in the A%# mar1et.
Barrier to exit
Although doing business in this industry need not much money 4 to 2 billion %$D could be
sufficient to run a business!+ companies ha'e disad'antages to exit. 0t is difficult to use the
machine for other purposes. 0t is e'en more difficult for big companies to exit than small
ones. This tends to intensify competition among existing companies.
Bar0a!#!#0 p"3er "% )21er&
The number of buyers is 'ery large. "o-e'er+ their buying quantity is small+ especially for
indi'idual customers+ -ho usually buy one or t-o products throughout their li'es. Buying
A%# products requires high in'ol'ement. Customers usually -ant high quality and -ell;
1no-n products. The price does not affect their buying decision much. :urthermore+ there are
only fe- big companies offering the same products dominating the -hole mar1et. Therefore+
the bargaining po-er of buyers is lo-.
Bar0a!#!#0 p"3er "% &2pp$!er&
0n the A%# industry+ although domestic suppliers can pro'ide many materials+ they cannot
supply the main materials -ith high quality. That is the reason -hy companies ha'e to rely on
foreign suppliers li1e Thailand companies for high quality materials. Thus+ the bargaining
po-er of foreign suppliers is high. "o-e'er+ there are no problems in s-itching suppliers+ as
the s-itching cost is rather lo-.
4E
A-a!$a)!$!t1 "% &2)&t!t2te&
As mentioned earlier+ consumers -ill not buy or use the product as and -hen the po-er
system pro'ides stable po-er current. "o-e'er+ it -ill certainly ta1e a long time before
%ietnam can o'ercome the current po-er problem. At present+ there is only one substitute
productJ the 'oltage adapter. "o-e'er+ this product is not superior to A%#. Thus+ A%#
products can retain its strong position in the mar1et for some time to go.
:rom the external factor analysis+ the follo-ing 1ey opportunities and threats are identified
Table >.2!.
Ta)$e +(: S2**ar1 "% the B2&!#e&& Opp"rt2#!t!e& a#/ Threat&
O
p
p
"
r
t
2
#
!
t
!
e
&
There -ill be more mar1ets to ser'e because of the urbani.ation and the
increasing li'ing standards of urban population in maHor cities!.
%ietnamese consumers become more brand conscious.
A%# producers can expand its mar1et internationally.
A%# producers ha'e opportunities in mobili.ing capitals from financial
institutions.
#MEs gain supports from the go'ernment and international organi.ations.
T
h
r
e
a
t
&
The gro-th rate of demand for A%#s is decreasing+ especially for industrial
A%#s.
Entrance of potential local competitors into the mar1et.
&roducers -ith imported materials suffer from the de'aluation of %ietnamese
currency.
&roducers -ith imported materials depend to much on foreign suppliers.
:ierce competition among big existing companies as different competitors can
produce A%#s -ith the same quality by importing high quality materials.
+( I#ter#a$ A#a$1&!&
+(1 C"*pa#1 O-er-!e3
$hat 5inh Co.+ 5td. -as established on August E
th
+ 4EE< under the license $o.4>A3/,&;)B+
issued by the "anoi &eople6s Committee.
Address( 22A Tay #on #treet+ Dong Da District+ "anoi
Tel( D< < A<< 3B34+ :ax( D< < A<< 3B33+ Email( 5i9A.coQhn.'nn.'n
=egistered capital( %$D ? billion.
Current number of staff( 4D3 people.
The Company originally -as a small electrical -or1shop producing one;phase 'oltage
adapters and po-er measurement equipment. #ince then the founder of the Company+ and the
Company director today P Mr. 5inh+ -ith his electricity 1no-ledge+ has spent time to study
imported Auto %oltage #tabili.ers A%#! and then single;handedly produced A%# products
successfully by himself.
After that+ Mr. 5inh used high quality materials to impro'e the products. "is family+ friends
and relati'es -ere the first users to test the products. The A%# quality -as accepted. 0t is
23
deemed comparable to imported products from =ussia former #o'iet )nion! and from
Tai-an and Oapan. "o-e'er+ the price is 2 to < times cheaper than those imported products.
That is -hy his product has been recommended and -idely consumed.
Fith the de'elopment of his business o'er time+ Mr. 5inh decided to establish his o-n
company. The ne- establishment ga'e him the legal identity to import materials to produce
A%# -ith large quantity that generated more benefits.
To differentiate his A%# product from that produced by other electricity equipment
-or1shops+ the founder has put a simple name 7 5i9A8 on his products -ithout registering it
as trademar1. The letters 2i are the initial letters of the founder+ Mr. 5inh. - and $ are the
initial letters of 79n Ap8+ the %ietnamese translation for auto 'oltage stabili.er. #ince then the
name has been used and recogni.ed -idely by the consumers. "e then reali.ed the necessity
of registering his A%# product name and applied for a license on Ouly B
th
+ 4EE<.
+(( C"*pa#1 Per%"r*a#'e
After its foundation+ the Company has continuously impro'ed and expanded its A%# ranges
and other products. :or its one;phase ser'omotor A%# used for households+ the products
range from 3.>?G%A to ?3 G%A. 0t has started producing >;phase ser'omotor A%#s since
4EE<+ -hich are used in factories and companies or big institutions. The capacity range of this
1ind of product is from > G%A to ?33G%A Table >.>!.
Ta)$e ++: L!OA AVS C2rre#t Pr"/2't L!#e
O#e pha&e AVS Three=pha&e AVS
M"/e$ Capa'!t1 M"/e$ Capa'!t1
$5;>?3 3.>?G%A $5;>+333F/> >G%A
$5;?33 3.?G%A $5;A+333F/> AG%A
$5;B?3 3.B?G%A $5;43+333F/> 43G%A
$5;4333 4G%A $5;4?+333F/> 4?G%A
$5;4?33 4.?G%A $5;23+333F/> 23G%A
$5;2333 2G%A $5;2?+333F/> 2?G%A
$5;>333 >G%A $5;>3+333F/> >3G%A
$5;<333 <G%A $5;<?+333F/> <?G%A
$5;?333 ?G%A $5;B?+333F/> B?G%A
$5;B?33 B.?G%A $5;E3+333F/> E3G%A
$5;43333 43G%A $5;4?3+333F/> 4?3G%A
$5;4?333 4?G%A $5;233+333F/> 233G%A
$5;23333 23G%A $5;NNNNNNF/> R?33G%A
$5;2?333 2?G%A
$5;>3333 >3G%A
$5;?3333 ?3G%A
#ource( Company data+ 2333
24
The Company also has other electric and electronic products. They are automatic fuse soc1ets+
emergency lamps+ 'oltage adapters+ high quality amplifiers+ and recently )&# and electric
cables.
9'er the past 43 years+ $hat 5inh company has gained a strong foothold in the mar1et. 0ts
mar1et share in the "anoi is about '*5 and in "o Chi Minh City is around 6*5 Company
report+ 2333!. 0t has also expanded its distribution net-or1 throughout the country. At present+
there are around &*** retailers selling 5i9A A%#. A part from its main territory in "anoi and
neighboring pro'inces in the $orth+ the Company has also set up its branch offices in Da
$ang and "o Chi Minh Cities. The Company uses these t-o branches as a springboard to
expand its distribution net-or1 to other pro'inces in the Central and the #outh of %ietnam.
This product de'elopment and distribution net-or1 strategy has yielded considerable results.
#ales performance of the Company in the past fe- years is illustrated in Table >.<.
Ta)$e +.: Sa$e& Per%"r*a#'e "% Nhat L!#h C" Lt/G 1CC7=(DDD
1CC7 1CC@ 1CCA 1CCC (DDD
Re-e#2e ;*!$ VND< 44+3D< 4A+3D3 24+3DD 4E+433 23+DB2
Ta? '"#tr!)2t!"# ;*!$ VND< >EE A<E E4< ED3 E?3
#ource( Company report+ 2333
)ntil no-+ 5i9A has been recogni.ed as one of the most popular brands in %ietnam. 0t has
been percei'ed as the symbol of high quality product in the eyes of many %ietnamese. The
Company also has been a-arded >4 gold medals at se'eral %ietnam6s 0nternational 0ndustrial
&roduct :airs for its outstanding A%# products. 9ne gold medal is a-arded for its )&#. The
)&# product is e'aluated to be e'en better than many imported ones.
0n the 4EED;2333 period+ the Company6s products -ere selected by %ietnamese consumers as
the %ietnam6s "igh Quality &roduct it -as ran1ed 4E
th
out of 233 selected businesses and in
the Top;? list of Electrics and Electronics Companies!. The A%# product of the Company has
been selected as the $umber 9ne among all existing automatic 'oltage stabili.ers a'ailable so
far in the domestic mar1et.
At present+ the Company is on its -ay to carry out a proHect on setting up an electric -ire and
cable factory. This proHect aims at meeting the increasing demands of electric industry and the
de'elopment of national po-er infrastructure. The Company considers this product as one of
its core products in the future+ because of follo-ing reasons(
A%#s only help households and companies sustain the ha.ardous 'oltage po-er current.
They+ ho-e'er+ cannot sol'e the problem completely. 5o- 'oltage current is due to poor
po-er transmission system and shortage of po-er capacity of %ietnam at present.
The %ietnamese go'ernment has paid attention to and encouraged the de'elopment of the
electric -ire and cable producers.
There is a high demand for these products.
Most of high quality electric -ires and cables used in %ietnam are imported. A large sum
of hard currency has to be used for these imported products.
&roducing these products domestically could benefit the country and the society at large+
i.e.+ bringing benefits to companies and creating Hobs for %ietnamese people+ etc.!
22
+(+ Strate0!' !#te#t
The Company6s mission+ obHecti'es and strategies ha'e been mentioned in the inter'ie- as
follo-s(
M!&&!"#
The Company6s mission is 7to be a leader in $%S products and electric wires and cables in
%ietnam8.
O),e't!-e&
0n order to achie'e the abo'e mission+ the Company has the follo-ing obHecti'es(
To continue impro'ing the management system+ physical conditions+ product quality and
its competiti'eness in its A%# business.
To focus on product inno'ation and de'elopment and use its 43;year accumulated
resources to de'elop ne- products.
To construct electric -ires and cables factory and put it into operation as soon as possible.
Strate0!e&
The Company de'elops and implements its strategy at three le'els(
3orporate strategy: The Company uses growth strategy for its core businesses. 0n particular+
it plans to construct a ne- factory in "ung @en pro'ince to catch up -ith the increasing
demand in electric -ires and cables.
Business strategy: The Company uses differentiation strategy to compete -ith 1ey players in
the industry by differentiating its product line. "o-e'er+ the Company has also paid attention
to reducing costs by ta1ing ad'antage of the economies of scale.
Functional strategy:
&roduction( mass;production+ using ne- and modern technology -ith impro'ed
management s1ills.
Mar1eting( extensi'e communication and intensi'e distribution net-or1 through retailers.
Policies and management principles:
"igh quality assurance
:ocus on inno'ation
Encouraging -or1ers to impro'e their s1ills
:rom the abo'e strategies+ together -ith its top;do-n management culture the Company has
the follo-ing strengths and -ea1nesses(
2>
Stre#0th&
The Company can use its core resources to its best ability differentiation -ith economies
of scales and scope! to compete -ith other competitors in the A%# and electric -ires and
cables mar1ets.
The Company also has a highly centrali.ed decision;ma1ing structure. Most decisions are
made by the director of the Company. This is understandable+ considering the history of
the Company and the personality of the director also founder!. This type of organi.ation
helps create a more discipline en'ironment in -hich all the employees 1no- exactly the
aims and obHecti'es of the Company+ thus being much easier to be mobili.ed to-ard
achie'ing the common goals.
The Company culture emphasi.es on high 9uality through quality chec1s. As part of its
determination+ the Company has also registered for 0#9 E332 standards for its electric
-ires and cables.
Wea4#e&&
The top;do-n management approach can also be a -ea1ness as it may result in stifling of
inno'ati'e ideas from the lo-er employees thereby reducing the Company6s creati'ity.
The capability to manage a number of retailers is limited.
+(. C"*pa#1 Str2't2re
F!02re +(: Nhat L!#h C"*pa#1E & Or0a#!>at!"#a$ Chart
#ource( Company6s report+ 2333
+(6 C"*pa#1 re&"2r'e& a#/ '"re '"*pete#'!e&
;1< Mar4et!#0
The Company offers high;quality products -hich are -ell positioned in the A%# mar1et. 0t
uses both push and pull strategies brand and retail oriented!+ aiming at expanding its
distribution net-or1. The sales acti'ities are supported by intensi'e ad'ertising on national
and local T% channels and ne-spapers and other sponsorship acti'ities. 0t has set up
2<
Director
Director
Director Assistant
Director Assistant
%ice Director
%ice Director
%ice Director
%ice Director
&roduction
EA prs.!
&roduction
EA prs.!
&lanning
< prs.!
&lanning
< prs.!
&urchasing
? prs.!
&urchasing
? prs.!
#ales
?D prs.!
#ales
?D prs.!
Accounting
< prs.!
Accounting
< prs.!
Admin6
< prs.!
Admin6
< prs.!
sho-rooms at some strategic locations to attract consumers6 attention to its high quality
products.
:ollo-ing are detailed analyses of each component of the Company6s mar1eting mix(
&roduct(
5i9A A%#s6 quality is percei'ed to be superior to that of competitors. 5i9A A%# consumes
less po-er -hen other electric appliances do not operate. Moreo'er+ its response time is short
from 3.? to 3.D second depending on A%#6s capacity! so that the current outputs are al-ays
stable e'en -hen inputs are not stable.
The Company has produced -ide 'ariety of products both household and industrial A%#! to
meet customers6 choice. 0t has also impro'ed its A%# products o'er time. :or its household
A%# -ith capacity smaller than <G%A+ it puts soc1ets in front of the A%# for consumers6
con'enient use. :use and 'oltage gauge are installed for those household A%# -ith capacity
under 4.?G%A+ and so it adds a strap in top of the A%#s. Therefore+ it is easy to mo'e the
products from one place to others. :or A%#s -ith higher capacity+ additional ample gauge is
installed.
0t also has hung;A%# products of > to ? G%A capacity. Consumers can put these t-o
products on the -all to reduce their home space ta1en by the A%#. :or A%#s -ith capacity
more than ? G%A fe-er in;front soc1ets are installed. #ince high capacity A%#s are used for
se'eral family electric appliances+ the outputs of A%#s is directly connected -ith electric
lines. The Company also puts -heels on A%#s -ith capacity abo'e 4? G%A for con'enient
mo'ement. &roduct capacity+ company6s logo+ and model are all printed on the A%#.
:or its pac1aging+ the Company puts its 5i9A logo+ technical specification+ company6s name+
instruction for deli'ery and use+ production place and product series number. There are t-o
big logos put opposite at 2 different sites of the carton box.
Distribution(
The Company has set up sho-rooms at con'enient locations in "anoi+ Da $ang and "o Chi
Minh Cities to introduce its products to consumers. 0f customers buy its products at
sho-room+ free deli'ery and installation are offered. :or big retailers6 shop+ the Company
installs signboard and other mar1eting support facilities. #mall retailers ha'e to put up
signboard by their o-n. Company6s distribution net-or1 is no- a'ailable at most pro'inces
in %ietnam. "o-e'er+ the 5i9A logo is inconsistent at retailers6 signboards.
&rice(
The Company6s A%# products are sold at a premium price based on its superior quality. The
Company is a price leader in the mar1et+ i.e. other competitors often set the prices for their
products on the basis of the Company6s price.
&romotion(
0n terms of mar1eting communication acti'ities+ the Company ad'ertised a lot on T% by
inter'als during films and football programs. 0t also sponsored other cultural acti'ities such as
,ala 2333+ and 7Music 5etter8 programs. 0n addition+ the Company has frequently
participated in trade fairs and exhibitions. 0t also spends money on building billboards and
lighted panos at selected high traffic Hunctions in "anoi and "o Chi Minh City. "o-e'er+ the
2?
Company does not promote its products consistently and in a -ell coordinated manner+ Hust
on special occasions such as company foundation celebration and important e'ents.
:rom the abo'e mentioned analysis+ the company6s main strengths and -ea1nesses in
mar1eting can be summari.ed as follo-s(
Stre#0th&
Brand awareness and recognition ha'e been created through its ad'ertising acti'ities and
its superior A%#s in a short period of time+ -ell ahead of its competitors.
/igh 9uality products together -ith its mar1eting support acti'ities ha'e differentiated
5i9A A%# from that of other competitors. This also creates a percei'ed added 'alue in
the mind of consumers.
By not using distributors+ the Company can acti'ely communicate -ith retailers to
understand more about the mar1et and reduce financial ris1s and other logistics problems+
-hich may occur -hen using distributors as a sales agent.
The Company6s -ell implemented after!sales services and supporting ser'ices ma1e
customers more confident -hen using the Company products.
Wea4#e&&e&
0t is beyond the Company6s capacity at present to manage its -ide distribution net-or1
throughout the country.
0ts relationships -ith retailers are not 'ery strong as the number of retailer is too high.
This ma1es coordination and control almost ineffecti'e.
5i9A logo is not -ell managed by the Company due to inconsistent in brand
management.
0t ta1es time and money to deli'er the product from "anoi to "o Chi Minh City and other
pro'inces. Though "o Chi Minh City is one of the biggest mar1ets+ the Company has
factory in "anoi only.
;(< R 5 D
The Company has paid due attention to =*D. 0t has been impro'ing its core A%# se'eral
times such as design+ si.e and colors+ noise;free feature and easy;to;use operation. The =*D
acti'ities result in product de'elopment and product range expansion as illustrated in the
mar1eting part. "ence+ its A%# name is -ell;1no-n in the mar1et.
The Company also produces industrial A%#s. These products are accepted by many
organi.ations. 0ts ne- )&# also impro'es the Company reputation further.
Stre#0th&
:nnovative culture led by the director of the Company helps the Company continuously
impro'ing and introducing many high quality products.
The number of skilled workers in the Company is high.
2A
The in'estment in the de'elopment of the production system is also an ad'antage because
it helps 1eep costs do-n -hilst adding 'alue to customer benefits.
Wea4#e&&e&
Equipment and technology in use for de'eloping ne- products are limited.
Many -or1ers still need more training on ne- technology and model management
principles.
The Company relies too much on the director/founder.
;+< Operat!#0 a#/ L"0!&t!'&
The Company uses imported technology from ,ermany for its core production acti'ities. 0ts
technology at present is better than that of other competitors. That is -hy the Company+
together -ith imported materials+ can produce high quality A%#s and 1eep the lead in the
mar1et. This is ho-e'er by no means guarantee the Company6s success in the future.
By using the mass production mode the Company gains economy of scales and the learning
cur'e effect. To retain its current competiti'e edge+ the Company concerns much about
quality control. E'ery finished product and materials are chec1ed thoroughly.
Stre#0th&
Fith its mass production for its A%#s+ the Company benefits from the economies of scale
and scope. 0t also benefits from the learning curve effects. That is -hy its margin is
higher than its competitors.
Wea4#e&&e&
The Company has to import some important materials from Thailand. 0n addition+ the
suppliers usually require that the order quantity of materials must be large enough to
reduce transportation costs. As a result+ it incurs high inventory cost and the business is
much dependent on overseas suppliers. The purchasing cost is also affected by the
exchange rate fluctuation.
Management in the distribution net-or1 is -ea1 and coordination bet-een functions
sometimes is not good.
Company6s factory is located in "anoi+ i.e. the Company has to rent depot in "o Chi
Minh city and Da $ang. The cost of rental is high and so is transportation cost gi'en the
geographical condition of the country. :urthermore+ its deli'ery is sometimes
bloc1ed/interrupted by natural disaster and poor infrastructure of %ietnam.
;.< H2*a# Re&"2r'e& Ma#a0e*e#t
Stre#0th&
The Company hires both full;time and part;time employees. Fith this mix policy+ the
Company can sa'e costs as it can increase or decrease the number of -or1ers in
accordance -ith -or1 requirements.
2B
The Company has also pro'ided training opportunities to its full;time and part;time
employees through on;the;Hob and off;the;Hob training.
Wea4#e&&e&
Most indirect employees are from Mr. 5inh family and his friends+ since the Company
originated from a family business. Many of them lac1 management 1no-ledge and s1ills.
This mode of management can foster nepotism.
The Company has ris1s from hiring part;time -or1ers. 0t may ta1es times for quality
control+ since their s1ills sometimes do not match actual requirements.
#ince it is family;based company+ it lac1s clear Hob descriptions+ and monitoring system to
assess the -or1 quality of each employeeJ as -ell as training budget and training plan for
employees.
The Company also does not ha'e appropriate -age and incenti'e system to create an
impetus for employees to -or1 effecti'ely.
;6< F!#a#'e
The Company sustains and de'elops basing on its o-n capital and capital mobili.ed from
Company6s members and their family/friends. As a result+ the Company lac1s capital for its
expansion. The Company has Hust mobili.ed only ?L capital for the proHect of building the
electric -ires and cables factory from financial institutions. 0t still needs more money to
implement the second phase of the proHect around %$D A3 billion!. "o-e'er+ it is difficult
for them to obtain this amount of money from financial institutions+ due to cumbersome loan
procedures and lac1 of support from the go'ernment.
;7< I#%"r*at!"# S1&te*
:or this area+ the Company capacity is still 'ery -ea1+ although the Director has paid
attention to it. The Company has an unclear management information system and lac1 of
retailers and consumers database to manage the distribution net-or1.
$e'ertheless+ the Company has used computers in managing its in'entory and -or1ing out
production plan as -ell as monitoring sales data in different areas.
The abo'e internal analysis has sho-n the most important strengths and -ea1nesses of the
Company as sho-n in Table >.?(
2D
Ta)$e +6: S2**ar1 "% the C"*pa#1E& Stre#0th& a#/ Wea4#e&&e&
S
t
r
e
#
0
t
h
&
The Company is the leader in the A%# mar1et.
The Company has a talented and aggressi'e director to run the business.
0ts brand name is -ell recogni.ed.
The Company has earned good reputation.
0t has superior A%#s to those produced by competitors.
0t benefits from the economies of scale and scope.
0t emphasi.es on inno'ation as a dri'e for high quality products.
0ts has -ide distribution system and strong ad'ertising campaigns.
W
e
a
4
#
e
&
&
e
&
The Company relies too much on imported materials and the director
5ittle attention has paid to 5i9A brand management
The Company6s ability to manage its -hole retailer system is limited
0t is -ea1 in "=M and modern management.
Centrali.ed management style does not foster creati'e and inno'ati'e ideas of
-or1ers.
0t lac1s capital for further business expansion.
0t di'ersifies to electronic productsJ in -hich it is not strong compared -ith other
international companies.
2E
++ SWOT A#a$1&!&
Ta)$e +7: SWOT A#a$1&!& S2**ar1
I
#
t
e
r
#
a
$
Stre#0th&
The leader in the A%# mar1et.
A talented and aggressi'e director
,ood brand name/reputation
#uperior A%#s compared to
competitors6
Benefits from its economies of scale
and scope
:ocus on inno'ation
CountryP-ide distribution system
and strong ad'ertising campaigns.
Wea4#e&&e&
"ea'y reliance on imported materials and
the director
5ac1 of attention to 5i9A brand
management
5imited ability to manage its -hole
retailer system
Fea1 in "=M and modern management
for gro-th and de'elopment
Centrali.ed management style does not
foster creati'e and inno'ati'e ideas of
-or1ers.
5ac1s of capital for business expansion
Di'ersification to other segments -here it
is not strong compared -ith other
international companies.
E
?
t
e
r
#
a
$
Opp"rt2#!t!e&
More mar1ets to ser'e urbani.ation
and the standards of li'ing of maHor
cities are increasing!
%ietnamese consumers are more
conscious in brands
Expansion its mar1et internationally
Mobili.ing capitals from financial
institutions
,ro-ing supports from the
go'ernment and other international
organi.ations for #MEs
de'elopment
Threat&
Demand is slo-ing do-n for A%#s+
especially for industrial A%#s.
&otential competitors entering into the
mar1et.
The de'aluation of %ietnamese currency
0mpro'ement in product quality of other
maHor competitors
0ts dependence on foreign suppliers
>3
Chapter .
COMPANYES BRAND MANAGEMENT
.1 L!OAE& P"&!t!"#!#0
.11 The AVS& Mar4et
&rior to the ad'ent of A%#s+ most of %ietnamese consumers used electric 'oltage adapters to
deal -ith unstable po-er current. "o-e'er+ this solution is not economical and could be only
temporary. 9ccasionally the users ha'e to chec1 -hether output currents are stable or not. 0f
not+ they had to manually adHust the lo- or strong outputs to the normal le'el.
:urthermore+ the A%# supply could not satisfy the high mar1et at that time. Most of A%#s
-ere bought from =ussia for family usage. $o trade of A%# -as made at that time. These
first generation of A%# also consumed quite a lot of po-er e'en though they did not pro'ide
outputs to other electric equipment.
9nly middle and rich families could afford to buy A%#s that mostly imported from =ussia+
Oapan+ China and Tai-an. E'en so+ the imported A%#s ha'e only fe- capacity le'els+ unable
to meet the requirement of modern electric home appliances such as -ashing machine+
refrigerator+ air conditioner+ etc.
As the li'ing standards has continuously increased in recent years+ people start to buy more
electric home appliances. Today+ consumers are -illing to pay for A%#s despite of high price+
as they do not -ant to ha'e their expensi'e home appliances out of order due to unstable
po-er current.
Fhile imported A%# cannot meet customer requirements+ domestic A%#s offer a -ide range
of capacity for the consumers to choose. 0n addition+ locally made A%# is reliable and
cheaper than imports+ as most high quality home;made A%#s are produced -ith imported
technology and materials+ in that A%# producers Hust produce some small parts and assemble
them together.
Among the high;quality A%#s produced domestically+ 5i9A A%#s are on the lead. 5i9A
product is the first locally made A%# that can meet consumers6 requirements of today. That is
-hy the Company6s products are -idely accepted all o'er the country.
Tar0et '2&t"*er&
0t can be said that the target consumers of the Company6s A%#s are those ha'ing expensi'e
home appliances and &Cs. The number of households+ -hich represent the emergence of a
middle class+ in %ietnam that ha'e had T%+ cassette recorder+ refrigerator+ etc. is not small
since 4EE3 and is increasing -ith the time.
Along -ith the economic de'elopment of the country+ many :D0 proHects ha'e been appro'ed
and implemented. :actories and other ser'ices such as hotels need more po-er. Fith its high
po-er consumption+ po-er supply is in shortage. The country6s po-er transmission line at
present is also not good+ resulting in the instability of the po-er current+ especially -hen the
transmission distance is long. Thus+ there arises a high and urgent demand for products to
reco'er po-er for production and business use.
>4
Moreo'er+ there are no imported A%#s to stabili.e industrial po-er system -hich used the >;
phase po-er!. $hat 5inh Co. is mar1et;oriented enough to be one of the first producers
introducing > phase A%#s in %ietnam.
0n short+ the Company6s 5i9A A%#s are used as alternati'e for imported products -ith high
quality and rather lo- price and aimed at t-o mar1et segments( households ha'ing expensi'e
electric home appliances and factories or other business entities li1e hotels.
.( Bra#/ A#a$1&!&
.(1 The "r!0!# "% the #a*e
The name 75i9A8 arose -hen the Company6s founder -anted to differentiate its A%#s from
other competitors6. The founder put a simple name 7 5i9A8 on its products -ithout
registering for its trademar1. 5etters 5i are the t-o initial letters of the founder6s name+ Mr.
5inh+ and 9 and A are the initial letters of 79n Ap8+ the %ietnamese translation of auto
'oltage stabili.er. #ince then the name has been -idely used for the -hole product range. "e
then reali.ed the necessity of registering his A%# product name and applied for the license in
Ouly B
th
+ 4EE<.
The founder of the Company put the name of his A%# in such a simple -ay -ithout much
thin1ing of ho- the name of his product should be. "o-e'er+ the name is easy to remember
and gradually becomes familiar -ith %ietnamese consumers.
.(( L!OA &1*)"$
The company also registered one logo for its 5i9A A%#s. :irst+ the 5i9A symbol -as a logo
registered on Ouly B
th
+ 4EE<. 9riginally+ 5i9A symbol -as a A ring;shaped arro- circle. The
arro-s are put in opposite direction in pair. 0nside the circle is 5i9A name. The symbol is in a
descripti'e manner. The meaning of the A ring;shaped arro-s illustrate alternati'e current
AC!. The circle+ together -ith the 5i9A name put in the center of the circle+ means using
5i9A gi'es you stable AC. )nder the circle is the name 5i9A as 7the best solution for your
po-er problem8.
$o-+ 5i9A6s updated symbol is an D ring;shaped arro- circle. The D ring;shaped arro-s are
put in opposite directions in pair. The meaning of the D ring;shaped arro-s illustrate
alternati'e current. At the center of the circle+ is the 5i9A name+ upper of inside of the circle
is the name of the Company. At the lo-er of inside of the circle are 2 -ords( electric and
electronics. These 2 -ords sho- the Company6s product range that are A%#+ soc1ets+ etc.! or
-ill be produced electric -ires and cables! by the company. The logo -as registered on May
3B
th
+ 4EED :igure <.4!. "o-e'er+ the Company should correct the -ord 7electric8 into
7electrics8 since it represents the Company6s all electric products.
By changing the logo this -ay+ the company still 1eeps people remembering the name of its
A%# and its functional benefits to the customers. Customers also feel confident -hen buying
and using 5i9A A%#s since they 1no- the company producing them. That is the source of
the consumers6 trust for the Company6s products. :urthermore+ they 1no- that the company
produces not only A%#s but also other electric and electronic equipment.
0t is note-orthy from the company6s information that most %ietnamese people identify the
company name $hat 5inh Co as 5i9A instead of brand. That is the reason -hy the Company
continues to use its 5i9A logo as the company brand.
>2
F!02re .1 L!OA L"0"
Despite some adHustment to its original logo+ there is no problem -ith its brand at the
moment. The 5i9A brand is -idely 1no-n and accepted by %ietnamese consumers.
.(+ Tra/e *ar4 pr"te't!"#
There are many -ords -hich ha'e the same pronunciation as 5i9A. 0n 4EED+ the Company
registered many -ords that are pronounced the same as 5i9A such as 5@9A+ 5E9A+ 50FA+
5@9A+ 5iMiTa+ 5EQ)A. #ince the Company also ad'ertised its products on the radio+ it is
difficult for people to 1no- exactly -hich name is the brand name of the Company. That is
-hy the Company had to register these -ords to protect other competitors from using this
brand name.
As mentioned abo'e+ the 5i9A logo -as also registered. #o both 5i9A brand name and its
logo ha'e become 'aluable assets of the company o'er times. The question is ho- the
company uses+ maintains and de'elops these assets in order to get their full benefits.
Although all the names and logos that the Company has registered are 'alid -ithin %ietnam
territory only+ they are not 'alid in international territories. Therefore+ Hut li1e any other
companies if the Company -ant to protect its brand names and logos internationally+ it is a
must it registers them properly in the future mar1et destination Quang+ 2333!.
.(+ A/-ert!&!#0 a't!-!t!e&
Along -ith the gro-th of his business+ many people ha'e got accustomed to the Company6s
A%# product name+ 5i9A. The Company has also spent a lot in ad'ertising in the local T%+
ne-spapers and maga.ines. The Company has planned an annual budget for ad'ertising
ranging from B to 43 percent of its re'enue. 0n recent years+ the budget for ad'ertising has
been bet-een 4.? to 2 billion %$D Company =eport+ 2333!. This ad'ertising budget is quite
si.able for a #ME in %ietnam+ -hich highlights the Company6s determination to use modern
>>
The company
name is
illustrated
The company
name is
illustrated
The po-er
current is
stable
The po-er
current is
stable
The brand
name of
A%#
The brand
name of
A%#
Company6s
core business
Company6s
core business
mar1eting techniques to de'elop and maintain its position in the mar1ets. 0n the -ords of the
Company6s director it -ants to build strong 5i9A brand name in the mind of %ietnamese
people and to stimulate the demand for the Company6s products.
5i9A commercials are often sho-n on national and local T% channels at prime times. 9n the
national channel+ 5i9A spots are sho-n during the brea1 of the English &remier :ootball
matches+ i.e. the Company focuses mostly on male audiences. &ro'incial T% channels are also
used for sho-ing its ad content since the Company -ants to reach potential consumers in
other pro'inces far from big cities.
To reach other audiences+ the company has spent its money on ad'ertisement on some
selected ne-spapers and maga.ines. 0n addition+ it has participated in national trade sho-s
and sponsored some cultural programs to ma1e its brand 1no-n to the mass.
The Company6s ad'ertisement messages mostly focused on the functional benefits and did
not mentioned emotional benefits much. :urther more+ the -ay of deli'ering the intended
message is not 'ery impressi'e but rather con'entional+ typical for a technical product.
.+ Bra#/ Ma#a0e*e#t
The Company does not clearly define -ho is in charge of brand management+ nor it has a
consistent brand management strategy. The Director is the one -ho decides on all branding
acti'ities of the Company -ith the assistance of his young brother+ the Company6s %ice
Director.
Fhen as1ing about the soul and other attributes of 5i9A brand name such as brand identity+
brand personality and brand equity the %ice Director said that the Company did not know
those things. The Company6s ad'ertising messages Hust tried to sho- consumers its high
quality A%#. #ome slogans li1e 7an ideal A%# for all electric equipment8 or 7happiness to
e'ery family8 -ere added on the ad content in association -ith functional benefits of its 5i9A
A%# 5i9A A%#s -ith durability and reliability+ etc. features are produced from imported
materials -ith modern ,erman technology!. 5i9A6s functional benefits sho-n on the ads
-ere also supported by the Company6s technology.
The Company has no information to measure the reaction of its consumers on this matter. #o
far+ no customer sur'ey or research has been done on the impacts of its ad'ertising campaign
and promotion on sales.
:n short# although the 3ompany has spent a lot on advertisement and promotion# it does not
fully appreciate what a brand is. :t ,ust put a brand name on its $%S and tried to create
consumers awareness of its brand name through aggressive advertising. For further
business development# the 3ompany should pay more attention to systematic brand
management.
.. Bra#/ Le-era0e A#/ E?te#&!"#
The Company had used its 5i9A brand name for other products using this as a corporate
brand umbrella. 0t has put 5i9A logo on some supplementary products li1e emergency lamp+
soc1et+ 'oltage adapter+ etc. "o-e'er+ it should be noted that 5i9A name is Hust registered for
its A%# only. )sing the name registered for one product on other products is not a good
practice+ both legally and practically. Moreo'er+ if those products are not good+ some defects
for instance+ the 5i9A brand name -ill be affected or damaged.
><
The Company also expanded the scope of its A%#+ and its one phase A%# to >;phase A%#s
-hich are used for industrial po-er system. The extension to >;phase A%# has opened a ne-
mar1et for the Company under the same brand.
0n the same fashion+ the Company uses the name 5i9A CAB5E for its ne- product electric
-ires and cables!. "o-e'er+ the Company has applied separately for this brand name
registration. By so doing+ the Company ma1es use of the 7silver bullets8 effect from its 5i9A
brand name. The Company started ad'ertising for its 5i9A CAB5E since the end of the year
2333. This product is expected to be the Company6s high flyer in the future.
.. The C"*pa#1E& Bra#/ I#te#t!"#
As mentioned on #ection >.2.>+ the company -ants to strengthen its 5i9A brand name and
remain firmly in the leader position in the A%# mar1et. To do so the Company has spent a
large share of its re'enue in ad'ertising campaigns+ public relations and other cultural
acti'ities as -ell as trade exhibitions.
The Company intends to expand its business to electric -ires and cables business. This
business -ill be the core of the company in the future. To optimi.e the benefits of its
established brand+ the company uses 5i9A name as a prefix for the brand name of its electric
-ires and cables products+ since 5i9A name is already familiar to many %ietnamese people.
The name chosen for the ne- product+ therefore+ is 5i9A CAB5E.
The Company also intends to export its 5i9A A%#s to foreign mar1ets such as China and
other neighboring countries in the future. 0t is noted that the company had exported its 5i9A
A%# to China sometimes before. #ome Chinese traders also bought its A%# for sales in
China+ -here 5i9A A%#s6 quality are accepted by local consumers. 0n order to succeed in
these foreign mar1ets+ it is necessary for the Company to ascertain -hether its current brand
name+ logo and other ad'ertising content are suitable to other foreign cultures or not. This
requires combined efforts from other functional departments not only from mar1eting and
from the -hole company.
.. C"#'$2&!"#
The abo'e;mentioned acti'ities of the Company ha'e sho-n that though the Company has not
-ell understood the importance of brand name+ its in'estment in building the brand+ to some
extent+ has so far contributed to the success of its brand name. "o-e'er+ during the inter'ie-+
the Assistant Director of the Company+ admitted that ad'ertising messages are not so
impressi'e to attract buyers but only able to create a-areness about 5i9A brand. This
problem can be attributed to the shortage of 1no-ledge on brand management and the essence
of brand+ as -ell as the -ea1ness of the ad'ertising agent in de'eloping the ad'ertisement.
These arguments highlight the need for a clear for its brand management in line -ith the
Company6s 'ision+ strategy and its internal strengths. This brand strategy should also rely on
the consumer6s beha'iors to-ards the A%# mar1et and its 5i9A A%#. :or this+ the Company
should systematically build its brand identity and brand positioning according its actual
mar1et potential and future 'ision of its business. 9n the basis of this+ it can construct an
effecti'e communication program to its target audiences+ -hich are no- expected to co'er the
-hole electric and electronic range.
>?
Chapter 6
FINDINGS OF THE CUSTOMER SURVEY
The sur'ey is underta1en to in'estigate consumers6 a-areness about auto;'oltage stabili.er
brand name and their e'aluation to-ards 5i9A brand in details. 0ts obHecti'es are(
To e'aluate the brand a-areness of consumers to-ards A%# products.
To 1no- important factors affecting consumers6 beha'iors in ma1ing A%# buying
decision.
To e'aluate the consumers6 a-areness to-ards 5i9A brand in details.
To understand the consumers6 e'aluation on the strengths and -ea1nesses of 5i9A A%#
and 5i9A6s mar1eting mix.
9n the basis of the findings+ some recommendations are pro'ided to impro'e 5i9A A%#
brand name position.
61 O-er-!e3 "% the Sa*p$eE& Chara'ter!&t!'&
233 questionnaires -ere deli'ered and the number of 'alid questionnaires after ta1ing out
in'alid ones! is 4D<. About ?EL of respondents is male and <4L is female. Around ?BL of
the respondents is among the ages bet-een 23 to >?+ >3L bet-een >A and ?3+ 44L o'er ?3
and only 4L under 23 years old Appendix+ Table A4+ A2!.
0n terms of educational le'el+ about B3L of the respondents graduated from college or
uni'ersity. More than 4AL of them finished high school and 42L master degree or abo'e. The
number of respondents -ho ha'e degree lo-er than high school is 'ery fe-+ Hust 4L
Appendix+ Table A>!.
#ince there are not many under 23;year;old and o'er ?3;year;old respondents in the sample+
the first group -ill be grouped -ith those from 23 to >? years old and the latter -ill be group
-ith those from >? to ?3 years old for easily analy.ing the data. The respondents -ith high
school dergree and under are grouped together+ so are those -ith college and uni'ersity
degree and abo'e.
6( C"#&2*er&E Bra#/ A3are#e&& a#/ the!r Beha-!"r
6(1 Bra#/ a3are#e&&
The result of question 4 has sho-n that the respondents 1ne- 5i9A brand the most among
existing popular brands of A%#. More than EDL of the respondents 1ne- this brand. :rom
the results+ it can be said that the ad'ertising efforts of $hat 5inh Co. ha'e been effecti'e in
generating customer a-areness to-ards its brand name :igure ?.4!.
The second popular A%# brand name follo-ing 5i9A is that of A#T. More than half of the
respondents 1ne- the A#T brand name. The A#T products ha'e been ad'ertised frequently in
some popular ne-spapers and maga.ines+ as -ell as participated in many trade fairs. 0t should
be noted that though the producer of A#T is located in "o Chi Minh City+ customer
a-areness about A#T is rather high in "anoi+ -hich is not the most important mar1et of the
company. This indicates that A#T is one of maHor competitors of $hat 5inh Company.
>A
$early t-o fifth of the respondents -ere a-are of =obot brand name. This company+ founded
in August 4EEB+ is based in "o Chi Minh City. The Company has also ad'ertised aggressi'ely
on national T% channels. #o far the Company has not opened any branch yet in "anoi.
About >3L of the respondents 1ne- about 5ion brand name products. The 5ion products
ha'e been ad'ertised on nation T% for se'eral months. The Company+ -hich produces 5ion
products+ is located in "o Chi Minh City. 9ther brand names -ere still ne- to many
respondents.
F!02re 61: Re&p"#/e#tE& A3are#e&& a)"2t AVS Bra#/&
There -as no significant difference bet-een gender about the a-areness of A%# brands+
except for the =obot brand. More males 1ne- =obot brand than females Table A?+ AA!.
There -as a significant difference bet-een age group about "ansil brand name a-areness.
Those o'er >? years 1ne- more than those under >? Table AB! did.
6(( Bra#/ 'h"!'e
More than four;fifths of the respondents said that they -ould choose 5i9A brand products
-hen they -anted to buy an A%#. The number of the respondents -ho made decision of
buying =obot+ A#T and "ansil brand name products -as not many. 5ess than 43L of the
respondents -anted to choose each of these brand names :igure ?.2!.
F!02re 6(: Bra#/ Se$e't!"# "% Re&p"#/e#t&
>B
5i9A
D2L
5ion
4L
=obot
DL
A#T
BL
"ansil
4L
9thers
4L
0% 20% 40% 60% 80% 100%
&i'(
(")
Robot
&io
*asil
't+ers
,o- .o/t 0o-
Therefore+ 5i9A brand -as not only -ell;1no-n but also selected by the respondents -hen
they -anted to buy an A%# product. Therefore+ -e can say that 5i9A -as a good brand name
in the A%# mar1et in "anoi.
:rom the results of the sur'ey sho- that there is no relationship bet-een gender+ age and
educational le'els and the choice of A%# brands Table A43!.
6(+ Fa't"r& A%%e't!#0 C"#&2*er& Ch"!'e& "% AVS Bra#/
The respondents ran1ed safety and reliability among the most important factors affecting their
buying decision. The next important factor affecting their buying decision -as brand
reputation of the product. :ollo-ing reputation -ere durability and noise!free characteristics.
&rice and user;friendly factors -ere the next important factors after durability and noise!free
Table ?.2!.
Ta)$e 61: Fa't"r& A%%e't!#0 C"#&2*er& Ch"!'e& "% AVS Bra#/
Fa't"r& N Mea# St/ De-!at!"#
9thers < ?.3333 .3333
#afety 4D4 <.B<?E .?DD<
=eliability 4D> <.B3<E .AA>>
Brand reputation 4B? <.??<> .?B>?
Durability 4BD <.<>2A .E343
$oise;free 4BE <.2AD2 .E<??
&rice 4D3 >.EB22 4.3A<A
)ser;friendly 4BA >.D>?2 4.3?>?
#upporting ser'ices 4B> >.>D4? 4.4DD2
#i.e 4BB >.42EE 4.4DB4
Design 4BA >.3BE? 4.4EB>
Easy;to;find shop 4BB 2.EE<< 4.4B?3
Ad'ertising 4B? 2.AADA 4.4<AB
&romotion 4B? 2.A333 4.222<
#cale of importance( 4 the least important+ > important+ and ? the most important!
Supporting services -as ran1ed a little bit more important than si;e. <esign and easy!to!find
shop factors -ere rated around the neutral point of the least important to the most important
scale. The respondents ran1ed ad'ertising and promotion among the least important factors .
Among the respondents+ there -as no significant difference bet-een the male and female
respondents in ran1ing the important of factors affecting their A%# buying beha'iorsTable
A4>!.
Although there -as no significantly different ran1 bet-een age groups to-ards safety+
reliability+ brand reputation+ durability+ user;friendly+ price+ easy;to;find shops+ si.e+ design+
and ad'ertising factors+ there -ere significantly different views towards supporting services
>D
and promotion factors bet-een different age groups. Those under >? years old ran1ed
supporting ser'ices more important than those bet-een >A to ?3 years old and abo'e ?3 years
old. :or promotion factor+ although it -as ran1ed belo- neutral point less important!+ those
abo'e >A years old considered it more important than those under >? years old Table A4<+
A4?!. There -as no different ran1 among the buying;decision factors bet-een different
education le'els among the respondents Table A4A!.
:rom the abo'e results+ it can be said that the respondents considered product benefit factors
such as safety+ reliability+ durability+ noise;free the most important ones affecting their buying
decision. Brand reputation of the product -as also one of the most important factors. &rice
factor affected their buying decision less than the abo'e mentioned factors. 0t is
understandable+ as consumers -anted the high quality product. They also considered the
price. "o-e'er+ price -as not among the top most important factors affecting their buying
beha'ior. :urthermore+ buying this 1ind of products requires high in'ol'ement. That is the
reason -hy consumers -ant to buy the product that can -ell operate for a long time.
Supporting services such as deli'ery+ installation instruction+ -arranty -ere also considered
important. These supporting ser'ices partly sho-ed the -ay of doing business of the A%#
Companies. :rom these supporting ser'ices+ consumers could e'aluate -hether the companies
cared for their consumers or not.
The results of the sur'ey ha'e sho-n that supporting ser'ices -ere more important than the
a'ailability of the shop to buy the products. Moreo'er+ the respondents did not consider
ad'ertising and promotion factors as important ones affecting their buying decision. Fe can
say that "anoian people did not care much for promotion and ad'ertising -hen they -anted
to buy A%# products.
6+ 92e&t!"#& Re$at!#0 T" L!OA Pr"/2't&
6+1 L!OA #a*e
)p to E?L of the respondents said that 5i9A name -as the product name of A%#. The 5i9A
A%# name -as 'ery familiar -ith them. More than one third of the respondents thought that
5i9A -as also the corporate brand of $hat 5inh Co. 5td.Table A4B!.
9nly about >3L of the respondents considered 5i9A as the name of electric cable. This
indicates that the Company6s ad'ertising campaign for its electric cable+ -hich has been
lasting for fe- months+ -as not 'ery effecti'e. That is -hy the Company should deal -ith this
ad'ertising campaign more.
5i9A name is also used for the Company6s other products. "o-e'er+ the respondents did not
1no- these products 'ery -ell. 5ess than 23 L of the respondents 1ne- these products. These
products are not the Company6s main products. They are Hust supplementary ones.
There -as no significant difference bet-een gender+ age+ educational le'els to-ards their
1no-ledge about -hich products the 5i9A brand name -as put on except that 5i9A Cable
nameJ the male respondents thought that 5i9A -as name of electric cable more than the
female respondents Table A4E!.
:rom the results of the analysis+ -e 1no- that most of the respondents 1ne- -hat 5i9A
stood for. 5i9A name stands for the company6s A%# products that are its core products.
9ther products ha'ing name related to 5i9A -ere not 1no-n much by the respondents.
>E
6+( C"2#tr1 "% "r!0!#
More than four fifth of the respondents 1ne- that 5i9A products -ere produced by local
Company -hile nearly 23L of them thought that the products -ere made by foreign one.
#ince 5i9A name+ the abbre'iation name of 7 5inh 9n Ap8 5inh Auto %oltage #tabili.er! +
is similar to other %ietnam brand names such as %0$ATABA+ CA#)M0$A+ B0%0$A etc+
consumers easily recogni.ed it as local products Table A23!.
The result of the sur'ey analysis sho-s that there -as no relationship bet-een gender+ age
groups+ education le'els and their 1no-ledge about the 5i9A name origin. Therefore+ -e can
say that 5i9A name -as easily recogni.ed as a %ietnamese brand name Table A24!.
6++ L!OA 4#"3$e/0e !#%"r*at!"# &"2r'e&
$early E3L of the respondents 1ne- 5i9A through ad'ertising programs and around <?L of
the respondents 1ne- it through ne-spapers and maga.ines. More than t-o fifth of the
respondents -ere referred to 5i9A A%# through their friends and relati'es. More than one
sixth 1ne- 5i9A through trade fairs. About 44L and AL of the respondents reali.ed 5i9A
A%# products through electric technicians and 5i9A sponsorship programs respecti'ely
:igure ?.>!.
F!02re 6+: I#%"r*at!"# S"2r'e %"r K#"3!#0 L!OA
:rom the analysis results+ it can be referred that advertising was the most effective means to
communicate -ith consumers about the Company6s products and build their a-areness
to-ard 5i9A brand. $e-spapers and maga.ines -ere the second most effecti'e means.
:riends and relati'es6 referrals -ere the next sources of information to 1no- about the
products. Therefore+ -ord;of;mouth is also helpful in communicating the Company6s
products. This only happens -hen products bring functional and emotional benefits to
consumers.
Trade fairs seem to be less effecti'e means to inform consumers about the products than
ad'ertising+ ne-spapers+ and maga.ines+ but it helped in building the Company6s reputation.
<3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
(d1ertisig
Ne-spapers23aga4ies
5rieds2relati1es
)rade fairs
6lectric tec+icias
"posors+ip programs
't+ers
7es No
The Company6s sponsorship programs -ere also not the effecti'e means to communicate -ith
people about the Company6s products. That is -hy the Company should reconsider this
communication means in order to use its ad'ertising budget more effecti'ely and efficiently.
9ur results sho- no difference in the attitudes to-ard the sources of information for 1no-ing
5i9A among different gender+ age groups and educational le'els Table A2>!.
The results let the Company 1no- -hich are the most effecti'e means to communicate -ith
consumers. :rom that the Company can construct its communication program in order to best
utili.e its ad'ertising budgets.
6+. L!OA 2&a0e
More than A<L of the respondents said that their family has used 5i9A A%#+ against only
>AL did not Table A2<!. This indicated that the product is -idely accepted in "anoi.
There -as a significant difference bet-een gender among the respondents about 5i9A usage.
The male respondents6 family used 5i9A A%#s more than the female respondents6 family.
#o+ the Company should focus more on both male and female audiences. 0t is understandable
that men often 1no- and buy this 1ind of products more than -omen. Men may refer the
products to -omen Table A2?+ A2A!.
6+6 C"#&2*er&E e-a$2at!"# "% L!OA AVS
=espondents ran1ed 5i9A A%#6 safety and reliability the best characteristics. They rated
these t-o characteristics more than < in the scale from 4 to ?. The respondents agreed that
durability# brand reputation# user!friendly# and noise!free features are the next best
characteristics of 5i9A A%#. They ran1ed 5i9A A%#6 si;e and design Hust only abo'e the
neutral point of the scale Table ?.<!.
Ta)$e 6(: Re&p"#/e#tE& E-a$2at!"# "% L!OA AVS&
N Mea# St/ De-!at!"#
#afety 44D <.3BA> .BDA2
=eliability 423 <.33D> .BB2<
Durability 442 >.D24< .BA4E
Brand reputation 44? >.BD2A .B43A
)ser;friendly 44E >.BD4? .D>?2
$ose;free 44D >.BA2B 4.32AD
#i.e 44B >.>BA4 .BA2A
Design 44? >.43<> .BBAA
The results sho- no difference in the e'aluation of 5i9A A%#6 features bet-een genders and
among education le'els Table A2E+ A>4 !. There is only a difference bet-een age groups in
e'aluating safety and brand reputation of 5i9A A%#. The younger group+ under >? years old+
e'aluated both safety and brand reputation better than the elder group+ o'er >A years old
Table A>3!. &erhaps+ the reason is that elder people are often more cautious than the
younger.
<4
0n short+ the respondents6 e'aluation of 5i9A A%# is good+ especially in terms of safety and
reliability. 0n #ection ?.2.>+ it is mentioned that these t-o features are the most important
factors that affect the choice of consumers. Therefore+ it is possible to say that the Company
has succeeded in focusing on the most important features of an A%# to meet customer6s
requirements.
Though respondents e'aluated such features as design# si;e or noise!free of 5i9A A%# as
a'erage+ they do+ by no means+ represent a problem for the Company. As these features are
not the most important factors that affect their brand choice+ i.e. impro'ing these factors are
not the first priority of the Company. "o-e'er+ the Company should impro'e these features
in order to ma1e consumers more satisfied -ith its products.
6+7 Pr!'e "% L!OA AVS&
Most respondents rated the price of 5i9A A%# high or too high. More than <<L of the
respondents said that the price of 5i9A A%# is high+ and nearly one fifth considered the price
too high. 9nly 22L of the respondents said that the price is reasonable Table A>>!.
"o-e'er+ they still bought the products as mentioned in 5i9A usage section! because of its
high quality and excellent functionality. Therefore+ the price do not affect the respondents6
buying decision much. This result is the same as the analysis results of question >.
The Company should communicate -ith consumers about the cost and benefits -hen buying
in its 5i9A A%#s more in details so that they -il be more -illing to pay for the products.
6+@ L!OA &h"p& '"#-e#!e#'e
More than E3L of the respondents said that they could find 5i9A A%# shop easily and 'ery
easily+ against less than 43L of the respondents said it -as difficult to find a 5i9A shop
Table A><!. Therefore the distribution system of the Company is considered 'ery good in
"anoi and in the 'icinity areas.
There is no significant difference bet-een genders+ age and education le'els on the e'aluation
of 5i9A shop location Table A>?!.
6+A L!OA a/-ert!&e*e#t '"#te#t&
=espondents Hust ran1ed the easy;to;understand feature of the ad'ertisement not far from the
neutral point. They agreed that the ad'ertisement content is easy to understand+ -hile they
ran1ed the slogan and product information at the neutral point of the scale. Corporate
information -as not e'aluated at the neutral point of the scale. The respondents found that
'oice and music and Hingles -ere not attracti'e to them Table ?.>!.
0n conclusion+ the Company6s ad'ertisement content is not 'ery impressi'e to audiences. The
Company6s %ice Directors and assistant director also ha'e the same 'ie-s on the effect of its
ad'ertisement. They admitted that they -ere not much satisfied -ith the Company6s
ad'ertisement at present+ and the Company should do more on this area. 0t can hire some
professional ad'ertising companies to de'elop proper commercials so that the ad'ertisement
-ill be more appealing and effecti'e. Although this -ill cost the money a large amount of
money+ it is still -orth doing+ according to the Company6s management.

<2
Ta)$e 6+: Re&p"#/e#t&E E-a$2at!"# "% L!OA A/-ert!&e*e#t C"#te#t&
Fa't"r& N Mea# St/ De-!at!"#
Easy;to;understand ad content 4AD >.A4E3 4.34EA
Easy;to;remember ad content 4A3 >.2D4> 3.E?E<
Easy;to;remember slogan 4?A >.3?BB 4.43DA
&roduct information 4?< 2.EB<3 4.33E<
Corporate information 4?2 2.B<>< 4.3BA?
%oice 4?4 2.>BB? 4.3D4A
Music and Hingles 4?> 2.2<D< 4.3?>4
9thers 4 4.3333 .3333
There -as no difference in e'aluating the Company6s ad'ertisement bet-een different gender
groups. "o-e'er+ there -as a different opinion bet-een age groups and educational le'els.
Fhile those o'er >? years old considered that product information in the ad content is not
good+ the other age groups thought that product information in the ad is acceptable. Those
ha'ing undergraduate degree and abo'e also e'aluated 'oice characteristics in the ad content
-orse than those -ith lo-er degrees Table A>D+ A>E+ A<3!.
This is understandable+ as the old people are often more careful than the young generation.
Accordingly+ the ad content should deli'er product information and functional benefits in
details.
6+C L!OA pr"*"t!"# pr"0ra*
:rom the sur'ey result+ it indicates that nearly half of the respondents did not 1no- the
Company promotion campaign. The promotion is not considered attracti'e by a large number
of the respondents about E4L of the respondents!. More than one fifth of the respondents
said that the campaign is not attracti'e at all. 9nly more than 4BL of the respondents thought
that the promotion -as attracti'e and nearly 4>L of them said it -as fairly attracti'e Table
A<4!.
There -as a significant difference bet-een age group about 5i9A promotion campaign.
Those under >? years old 1ne- less 5i9A promotion campaign than those o'er >? years old
did. &erhaps+ those o'er >? paied more attention to media than the other group Table A<2+
A<>!.
To be sure+ the outcomes of this question sur'ey do not surprise the Company. )sually+ the
Company does not use promotion to attract consumers in "anoi+ but only use them in "o Chi
Minh City and "o Chi Minh people tend to buy promotional products more than "anoians
Company report+ 2333!. 9nly fe- promotions -ere conducted in "anoi on Company6s
anni'ersaries or special national holidays.
6. C"#'$2&!"#
:rom the results of the sur'ey+ it can be said that most "anoian residents 1no- the 5i9A
brand name and -ant to choose 5i9A A%# for their usage. They thin1 that the product6s
safety+ reliability and durability characteristics are the most important factors influencing
their buying decision. Brand name characteristic is the next most important factor
<>
affecting their buying beha'ior. Although they are price;conscious+ they consider the
abo'e mentioned characteristics more important than price. They are -illing to pay high
price for A%# -ith safety+ reliable+ durable and popular brand name characteristics.
Therefore+ the company should not only rely on its high quality A%#s to attract
consumers+ but also build its brand name a-areness further.
To enhance its brand name a-areness+ the company should optimi.e on its ad'ertising
campaigns to communicate -ith consumers. As re'ealed from the result of the sur'ey+ E3
percent of the respondents 1ne- 5i9A from ad'ertising campaigns sho-n on T%+
ne'ertheless+ the Company6s ad'ertising content -as not considered good by the
respondents. 0t should be noted that the company has spent a lot on its ad'ertising
campaigns so far for not much effect. Therefore+ the company should pay more attention
to the quality of the ad content.
$e-spapers and maga.ines also pro'ide effecti'e channels for the Company to
communicate -ith target consumers. "o-e'er+ the company should select the most read
by its target consumers in order to gain the highest cost;effecti'e benefits.
Ford;of;mouth from satisfied consumers is an important means to build its 5i9A brand
name. "o-e'er+ this only happens as and -hen the company6s A%#s ha'e been used and
e'aluated directly by the consumers. That is -hy product quality+ product price and other
supporting acti'ities such as technical assistance+ after sales ser'ice and free deli'ery+ etc.
are all necessary factors that enhance the consumers reference to-ards their friends and
relati'es. Although the respondents did not specially mention that such acti'ities as
supporting ser'ices -ere the most important affecting their buying decision+ they are
certainly important to enhance the customer6s -ord;of;mouth.
Therefore+ the company should focus not only on its product6s quality+ but also on its other
sales related acti'ities to ma1e it a full fledged customer;oriented company to get full benefits
from that.
0n sum+ to fulfill its ne- obHecti'es and mission+ the Company should continuously impro'e
its A%# quality to remain superior to that of others and try to de'elop a good distribution
system and supporting ser'ices. At the same time+ the Company should also impro'e the
quality of its ad'ertising campaigns to impress the consumers in order to increase the
consumer6s a-areness for its 5i9A brand name and thus further push the demand for the
products. 9nly by so doing+ the Company can optimi.e on its current strengths and de'elop a
firm and long lasting competiti'e edge for its future gro-th.
<<
Chapter 7
DEVELOPING A BRANDING STRATEGY FOR LIOA
:rom -hat has been found at the Company internal situation and its obHecti'es+ together -ith
the results of the sur'ey+ -e can say that although 5i9A brand name is quite strong in
%ietnam A%# mar1et+ it should be protected from fierce competitions from other A%# brand
names. The competitors are spending a lot of their money for ad'ertising acti'ities aiming at
gaining the mar1et share in the slo- gro-th A%# mar1et.
The company has not ad'ertised for its 5i9A on T%s for a long time. 0t has Hust ad'ertised for
its 5i9A Cable and neglected its 5i9A A%#. Moreo'er+ 5i9A ad'ertising quality is not
impressi'e to audiences since the Company does not -or1 out its brand positioning.
"ence+ apart from its other acti'ities in product+ price and distribution+ the Company should
do the follo-ing acti'ities to use its 5i9A brand name as a 'aluable asset.
)nderstand ho- to manage a brand systematically
5earn the nature of the brand name+ its brand personality+ brand identity+ brand equity and
its brand anatomy.
:ind a good ad'ertising agency to ma1e its ad'ertisement
Building communication programs in line -ith its corporate strategy and branding
strategy+ brand identity and brand position for particular areas.
Consolidate its brand name in the $orth
Expand its mar1et share and brand name a-areness in the #outh.
&repare necessary actions to export 5i9a A%# to the #outh China mar1et
9nly by doing these acti'ities+ can the Company ma1e its 5i9A brand name actually strong in
%ietnam A%# mar1et and use it as an effecti'e -eapon to compete -ith other competitors.
71 De-e$"p!#0 L!OA Bra#/ I/e#t!t1
711 The )ra#/ a& a pr"/2't
Pr"/2't &'"pe a&&"'!at!"# 3!th pr"/2't '$a&&: 5i9A A%# is di'ided into 2 1inds+
household and industrial products. Therefore the Company can ser'e t-o types of
consumers+ family and industrial ones. Fhen thin1ing of 5i9A A%#+ people -ill 1no-
that the product is a'ailable for their electric equipment both at their family and at their
business. The Company can use 5i9A as the company brand name to communicate -ith
consumers.
Pr"/2't re$ate/ attr!)2te&: Fhen people buy 5i9A they -ill get a high quality productJ
safety+ reliability+ durability+ and use;friendly product. They -ill recei'e free deli'ery if
needed and product -arranty -ithin > years.
92a$!t1 a#/ -a$2e: :or 5i9A A%#+ it is considered the highest quality products -ith
reasonable prices. #ince the Company is the big one among A%# manufacturers+ it can
benefit from the economies of scale and scope and easily buy imported high quality
materials. That is -hy the cost of producing the highest quality is not much higher than
<?
that of competitors+ if not smaller. Therefore+ consumers can get the highest quality
domestically made products -ith affordable price.
A&&"'!at!"#& 3!th 2&e "''a&!"#: The product is used -hen unstable po-er current occurs
or -hen the po-er current is too lo- or too high for some time. Fith the presence of
5i9A these problems -ill be settled and consumers feel safe for their other modern
electric equipment.
A&&"'!at!"#& 3!th 2&er&: &eople ha'e to use the product due to the unstable po-er
current happening at their li'ing en'ironment. &eople+ -ho are careful and -ant their
modern electric equipment to be safe+ usually use the product.
C"2#tr1 "% "r!0!#: 5i9A A%# is a %ietnamese product. 0t has a name similar to other
%ietnamese products. as mentioned abo'e the name 5i9A means 75inh 9n Ap8 5inh
Auto %oltage #tabili.er!. Moreo'er+ Although the brand name does not suggest the
country of origin+ it suggests the name of producer and is 'ery similar to the name of other
%ietnamese products li1e CA#)M0$A+ "A50DA+ ")DA ...#outh =ubber Company+
"anoi And Denmar1 O% Bre-er Company+ "ue And Denmar1 Bre-er Company!.
Therefore it easy for people to reali.e that it is domestic product.
71( The Bra#/=a&="r0a#!>at!"#
$hat 5inh Co. is an organi.ation -ith inno'ation culture to pursue for the highest quality
products in order to get and maintain the position of A%# mar1et leader in %ietnam that it has
aimed at. 0n addition+ the Company has better technology than competitors to build better
products.
Although+ the Company is a local one+ its product quality is as good as imported ones+ e'en
better than some imported ones. The Company has achie'ed some a-ards in the name of
7%ietnam products -ith high quality8. #o consumers feel more confident in buying the
Company6s products.
71+ The Bra#/=a&=per&"#: Bra#/ per&"#a$!t1
5i9A A%# is the highest quality domestic A%# product in %ietnam -ith affordable price.
5i9A A%# has many functional attributes -ith high reliability+ safety and durability etc.
Therefore -hen the users use the product they thin1 that they use the best locally made
product. This ma1es them safe for themsel'es as -ell as for their electrical appliances. The
product is trust-orthy.
71. Ba#/ a& a &1*)"$
5i9A symbol is a descripti'e one. 0t is easy for %ietnamese people to understand and
accepted. #o far+ there has been no problem -ith its logo. "o-e'er+ the Company should
correct the -ord 7electric8 into 7electrics8 since it present for the Company6s all electric
products.
7( Bra#/ Va$2e Pr"p"&!t!"#
7(1 F2#'t!"#a$ )e#e%!t&
5i9A A%# is produced from high quality materials -ith imported technology. 0ts quality is
better than that of other local competitors and the same as that of foreign ones. Among
products6 attributes+ reliability safety and durability are the highest attributes of the products
<A
since the product is made of high quality materials -ith competiti'e technology. That is -hy
the Company use the slogan 7an ideal A%# for all electric equipment8 to inform the
consumers its products6 functional benefits.
7(( E*"t!"#a$ )e#e%!t&
Fhen using 5i9A+ consumers benefit not only from its functional benefits+ but also gi'e
consumers a positi'e feeling+ emotional benefit. They feel safe for themsel'es as -ell as their
electric home appliances+ and abo'e all for their family.
5i9A ad'ertisements try to con'ey message 7happiness to e'ery family8 to refer consumers
the emotional benefits -hen using 5i9A.
7(+ Se$%=e?pre&&!-e )e#e%!t&
5i9A is the highest quality domestically made A%# -ith superior functional characteristics to
those of competitors. Although consumers consider it high price+ a lot of them still buy it.
#ince they thin1 that they use the best A%# that is a'ailable in %ietnam.
7+ Bra#/ A#at"*1 "% L!OA
C"re !/e#t!t1: The most important component of a brand is its core identity+ that is -hat
consumers feel inside -hen thin1ing of a product. #tarting -ith the idea of a high quality
product that sol'e unstable po-er current+ bringing the safe mood to the users+ the core
identity of 5i9A A%# is reflected in the follo-ing message(
LiOA is an ideal AS with affordable price for all electric equipment!
The main idea is to impress the consumers that they -ill use equally imported high quality
products -ith affordable price. The Company ensures a consistent quality and pricing policy
and its supporting mar1eting acti'ities li1e after sales ser'ice+ deli'ery and -arrantee to
support the product.
E?te#/e/ !/e#t!t!e&: are the brand name+ the symbol+ country of origin+ and pac1aging etc.
Apart from core identity+ other brand characteristics -ill be in the extended identities of the
brand.
The brand anatomy of 5i9A can be illustrated in :igure A.4
<B
F!02re: 71 L!OA Bra#/ A#at"*1
7. L!OA Bra#/ P"&!t!"#
Basing on the brand identity and its 'alue proposition and other characteristics of 5i9A
brand+ 5i9A brand positioning is constructed. 5i9A brand positioning consists of the target
customer group and need+ the brand name+ the benefits that it brings to the consumers+ the
reason -hy and the brand characters.
To those having electric e9uipment# who live in unstable power system condition and want to
keep their electric e9uipment safe and operating smoothly. 5i9A is the brand of high 9uality
$%Ss that is best for resuming stable power in a blink and consuming little power to protect
your electric e9uipment. The products are produced by selected materials and modern
technology# and checked thoroughly before sales. 5i9A is a strong# reliable# durable and
dependable $%S with affordable price.
:or the brand characters and the benefits+ -e can emphasi.e more about the brand identity
and its 'alue propositionJ and both functional and emotional benefits in order to inform
consumers more detail about the product as a 'alue;added one.
76 Bra#/!#0 a't!-!t!e& !# $!#e 3!th !t& !#te#t!"# &trate0!e&
761 C"#&"$!/ate L!OA )ra#/ #a*e !# the N"rth
:rom chapters >+ <+ and ? -e 1no- that 5i9A6s mar1et share and brand a-areness in the
$orth+ especially in "anoi are 'ery high. "o-e'er+ the Company is still 'ery -ea1 at
ad'ertising and other competitors -ant to enter into the $orth. #o the Company must+
together -ith other acti'ities+ consolidate its brand name in the $orth in order to pre'ent other
competitors from penetrating into the $orth A%# mar1et.
The Company should focus on ad'ertising acti'ities in order to strengthen its brand name in
the $orth. The Company should hire and experience;ad'ertising agent to do the Hob and the
<D
5o- po-er
consumption
#afe for
electric
equipment
#afety
D;arro- circle
Domestically
made
Brand name
familiar -ith
%ietnamese
country name
)nstable
po-er sol'er
I/ea$ pr"/2't& 3!th
a%%"r/a)$e pr!'e&
=eliability
"igh quality
0nno'ati'e
Company
)ser;
friendly
=ed bro-n *
dar1 blue
colors
country
name
:amily *
industrial
products
Trust-orthy
Durability
communication message should be built based on its 5i9A brand identity+ 'alue proposition
and brand position.
A/-ert!&!#0
The Company should continue using mass media ad'ertising such as nation T% and local T%
channels+ to create and maintain its 5i9A brand a-areness and its brand loyalty. The
Company can use national channel %T%> and pro'incial channel to communicate -ith
consumers in the $orth since most %ietnamese people can see programs %T%> channel and
for those not seeing %T%> they can see 5i9A ads on the pro'incial channel.
:or ad'ertising on ne-spapers in the $orth area+ the Company should also can ad'ertise on
selected ne-spapers such as 7Thoi Bao Ginh Te+8 7,ia Ca Thi Truong+8 and 75ao Dong+8 for
5i9A products. These papers are often read by the Company6s target consumersJ mild income
people.
:or ad'ertising on maga.ines+ the Company should select 7Consumer Maga.ine+8 to ad'ertise
since this maga.ine is most read by people that -ant to 1no- -hat ne- products are a'ailable
in the mar1et.
Both ne-spapers and maga.ines can be use to sho- the company6s achie'ements so far in
order to inform people more about the Company and its products since ad'ertising on T%
channels can not deli'er a lot of information in a short time period.
The Company should continue to use billboards at strategic location in big cities such as
"anoi+ "ai &hong. 0n "anoi+ the Company should continue using its lighted billboard at "ang
Bong+ Dien Bien &hu+ Trang Thi and $guyen Thai "oc #treets to build "anoians a-areness
to-ards 5i9A brand. The Company should manage its 5i9A brand accordingly since some
retailers did not ma1e the signboard -ith correct logo colors. By doing it is easy for people to
notice 5i9A brand.
Apart from that brochures and boo1lets+ and poster should be done and distributed to retailers
in order to build s strong position for 5i9A in retailers6 shop and remind target audiences
once they come to the shops.
At Company6s sho- rooms+ the company should spend money for reno'ating its sho-rooms
since the sho-rooms ha'e not been paid attention much so far. :urthermore+ sho-rooms
represent the Company images. 9nly by doing so consumers can see a consistent message that
the Company -ants to deli'er to them.
P2)$!' re$at!"#&
:rom the results of the sur'ey -e 1no- that electric technician is also a good source of
information for the respondents to 1no- 5i9A. "ence+ the Company should create
relationships -ith electric/electronic school at the colleges and uni'ersities in "anoi and other
$orth pro'inces. By doing that the Company can reach those -ho -ill be effecti'e informers
in future.
Per&"#a$ &e$$!#0
The Company should participate in all the related trade sho-s and exhibitions organi.ed in
"anoi so that it can communicate its products to both potential family and industrial
consumers. :urthermore+ the company can gain some a-ards from the trade sho-s and
<E
exhibitions. These a-ards -ill contribute an e'idence of high quality product to the
consumers.
Sa$e& pr"*"t!"#
#ince "anoian people do not care much for sales promotion+ the Company may not need this
method to consolidate its 5i9A brand in the $orth mar1et.
9nly by doing all of the mentioned acti'ities+ together -ith other mar1eting acti'ities+ the
Company can communicate a consistent message to its target consumers+ strengthen 5i9A
brand a-areness and image in the $orth mar1et.
76( E?pa#/ !t& *ar4et &hare a#/ )ra#/ a3are#e&& !# the S"2th
The Company should do the follo-ing communication acti'ities+ together -ith its other
acti'ities such as distribution and supporting acti'ities+ in order to expand its mar1et in the
#outh.
:rom the inter'ie- -ith Company6s 'ice director+ -e 1no- that "o Chi Minh people and
people in the #outh in general -ant to buy products -ith promotion more than "anoian
people do. #o among its communication acti'ities to inform the #outh consumers+ the
Company should focus on its promotion acti'ities in the areas in order to maximi.e its
benefits.
Sa$e& pr"*"t!"# a#/ a/-ert!&!#0 a't!-!t!e&
The Company should -or1 out its promotion acti'ities and budgets in details in order to
attract target consumers from other competitors. 0t is noted that there are about <3 A%#
companies in the #outh area. #o the competition in the #outh -ill be much tougher than in the
$orth.
To support its promotion acti'ities partly and build consumers a-areness about 5i9A brand+
the Company should ad'ertise on "T% "o Chi Minh T% channel! and other pro'incial T%
channels in the #outh to reach its potential consumers
:or ad'ertising on ne-spapers and maga.ines in the #outh area+ the Company should also can
ad'ertise on selected ne-spapers such as 7#ai ,on Tiep Thi+8 7Tuoi Tre+8 and 75ao Dong+8
for 5i9A products. Most people in "o Chi Minh City and in the #outh area read these
ne-spapers.
0ts lighted billboards at #aigon ri'er is a good one to build 5i9a a-areness to "o Chi Minh
people and other li'ing in the #outh pro'inces since there is a -ater bus station near the
billboard location. Many #outh pro'incial people go to "o Chi Minh City by -ater road.
Brochures and boo1lets+ and poster should be done and distributed to retailers in order to
build s strong position for 5i9A in retailers6 shop and remind target audiences once they
come to the shops.
P2)$!' re$at!"#&
9nly basing on further study of the #outh people demographic characteristics+ can the
Company -or1 out its acti'ities for &= in the #outh in order to strengthen its position in the
#outh.
?3
Per&"#a$ &e$$!#0
The Company should participate in all the related trade sho-s and exhibitions organi.ed in
"o Chi Minh City and in Can Tho pro'ince to introduce its products to consumers.
:urthermore+ the Company can 1no- its competitors6 products more from the trade sho-s
and exhibitions.
76+ L!OA e?pa#&!"# t" "ther %"re!0# *ar4et&
To extend its 5i9A A%#s to foreign countries li1e as China+ the Company face not many
difficulties as many Chinese traders ha'e bought 5i9A A%#s so far. 5i9A quality is accepted
by Chinese people. Therefore+ the Company should do the follo-ing acti'ities(
:ind a good distributor to sell the product
Chec1 its name and symbol to 1no- -hether they are culturally accepted in the target
mar1et or not.
=egister its 5i9A name and logo internationally in order to a'oid fraud.
&ut Company name and address in the product pac1age for easy contact
&ut its certificate of quality management process on its 5i9A A%# the Company is
applying for 0#9 E332! to ma1e foreign consumers confident in 5i9A A%#.
Ad'ertise on ne-spapers that are often read by targeted consumers and on T%s
76. L!OA CABLE )ra#/!#0
:or its electric -ires and cables products+ the Company should register its 5i9A Cable brand
name and manage the brand systematically. The Company must build 5i9A brand identity+
'alue proposition+ brand personality and brand position for its 5i9A Cable. 9nly by doing
li1e that and -or1ing out a communication program for its 5i9A Cable+ can the Company
build its 5i9A Cable a strong brand name.
"o-e'er+ each of its branding acti'ities in different areas must follo- the Company brand
identity+ 'alue proposition and brand position of the Company. 0f it does not strictly follo-+ it
can not build and maintain its brand as a strong one.
?4
Chapter @
CONCLUSION AND RECOMMENDATIONS
@1 C"#'$2&!"#&
The A%# mar1et in %ietnam has been negati'ely affected by the slo- do-n of :D0
in'estment in %ietnam rooted from the Asian financial crisis+ %ietnamese currency
de'aluation+ and foreign exchange rate. The slo- gro-th of the A%# mar1et ma1es
existing A%# producers compete more -ith one another to gain the mar1et share.
Moreo'er+ the demand for industrial A%# and >;phase A%#s ha'e been decreased. A%#
producers no- focus on family A%#s. The frequency of ad'ertising message of
competitors on T%s has been increasing recently. Competitors ha'e launched promotion
programs aiming at attracting attention of consumers -ho are price conscious. $hat 5inh
Co. has not paid due attention to ad'ertising its 5i9A A%#s on T% recently.
:urthermore+ the Enterprise 5a- that came into effect from Oanuary 4
st
+ 2333 has opened
many fa'orable conditions for establishing small and medium enterprises. To establish
and A%# company requires no much money. "ence+ many companies -ant to enter into
the A%# business if the loo1 from outside+ i.e. the A%# mar1et -ill be tougher.
Although $hat 5inh co. has+ -ith its modern technology and selected materials+ produced
better A%#s than its competitors+ consumers are still influenced by frequent ad'ertising
and promotion programs launched by competitors. :urthermore+ the Company6s products
depend so much on the quality of imported materials. 9ther competitors can see1 high
quality imported materials and technology to compete -ith the Company. This -ill affect
the Company6s business and reduce 5i9A reputation if the Company does not ta1e proper
actions.
0n addition+ according to the Company report in 2333+ the demand for A%# still gro-s for
? to B years before it slo-s do-n. The Company has paid more attention to its ne-
business+ electric -ires and cables+ and seemed lac1 of focus on 5i9A business+ especially
in its communications acti'ities.
The sur'ey results of consumers in "anoi sho-ed that many people 1ne- 5i9A name and
-anted to choose the products for their home usage. They could easily find a 5i9A retail
shop in "anoi. Although the price of 5i9A -as considered high+ consumers still -anted
to choose the product. "o-e'er+ the Company6s ad'ertising message -as not impressi'e
to consumers.
Most of them 1ne- that the Company ad'ertised for its 5i9A but they rated the quality of
the ads not high. Therefore+ the Company should do something to impro'e the quality of
the ads+ since ad'ertising is the information source to create consumer a-areness about
the Company product and to stimulate their purchase beha'ior.
:urthermore+ the Company6s people did not 1no- -hat the essence of the brand+ the
brand identity+ 'alue proposition+ and brand position are. That is -hy the Company and its
ad'ertising agent could not create a good ad'ertising message to attract the attention of
consumers and the Company6s communication acti'ities -ere still -ea1.
"ence+ the Company should build a consistent brand strategy to build 5i9A a strong brand
name basing on de'eloping brand identity+ managing brand image+ and maintaining brand
?2
equity. 0ts communication programs should be built on the basis of the created brand position
and current A%# mar1et situation in each area.
:or the $orth area+ the Company should consolidate its ad'ertising acti'ities in order to build
a-areness and confidence in consumers. :or the #outh area+ the Company should+ together
-ith its ad'ertising acti'ities+ focus on promotion acti'ities+ in order to attract #outhern
people. As from the Company report -e 1no- that they -ant to buy products -ith promotion
campaigns.
:or its further expansion to foreign mar1et and 5i9a cable the Company should -or1 out the
plan+ especially communication plan+ to build its 5i9A as strong brand in these mar1et.
@( Re'"**e#/at!"#&
Although the Company has paid attention to its branding acti'ities and achie'ed fairly good
results so far+ it has managed its brand unsystematically. "ence the Company should
understand the essence of brand management and the benefits of strong brand in order to use
it as an in'aluable asset.
0t should be noted that a brand becomes a 'aluable asset as and -hen it is managed
systematically and carefully. "o-e'er+ a good brand first has the follo-ing characteristics(
A typical image of a Company or product
Assurance of high quality
As a competiti'e ad'antage of company and an important source of generating benefits
0ncreasing percei'ed 'alue and consumers satisfaction and product usage encouragement
A 'aluable asset of a company
A brand must be maintained in a prolonged period
&rotected by legal registration
A brand should be unique and distinct from other brands. 0t means that it should ha'e the
follo-ing features(
0ts name should be easily read and remembered.
0ts logo should be sharp and meaningful.
0ts slogan should be short+ deli'er the essence of the brand and be used together -ith
ad'ertising.
Ad'ertising methods should be massi'e+ intensi'e and focused+ and targeted.
&roduct should be directly sold to consumers through the Company6 s distribution channel
or through distributors and retailers.
&roduct achie'ements can be illustrated through its leading mar1et share+ accepted by
many people.
The branding process requires high commitment of top management. A need for establishing
a position of brand management department becomes urgent+ especially -hen the Company
-ants to expand its brand.
A brand should be thoroughly managed throughout its life but in a consistent manner to
ensure its original brand 'alues. Care should be ta1en to harmoni.e all brand attributes and
associations.
?>
Brand identity and image are in constant adaptation+ -ithout changing the fundamental
'alues+ -hich could create confusion for consumers. :or instance+ its logo should not changed
much and often. 0nteraction bet-een the Company and consumers and retailers should be
emphasi.ed especially during sales and after sales. 0t should be noted that brand identity and
image al-ays change as culture and circumstance change.
The Company should allocate adequate resources+ structures+ people and commitment to
communication. The Company must follo- the needs and -ant of consumers and act upon
-hat it disco'ers.
The Company should systematically follo- a strategic brand management process so that it
can gain maximum benefits. The Company has to 1no- ho- to de"elop# manage and
maintain its 5i9A brand basing on its consistent brand strategy. 0t means that the Company
has to de'elop brand identity for 5i9A from brand conceptJ manage its 5i9A brand image
through portfolio managementJ and maintain its brand loyalty through equity building :igure
B.4!.
F!02re @1 The Pr"p"&e/ M"/e$ %"r Strate0!' Bra#/ Ma#a0e*e#t Pr"'e&&
#ource( Quang 4EED!
The Company6s communication program -ill+ then+ be made on the basis of the brand
strategy. 9nly by doing so+ can the Company build its 5i9A brand as a strong brand and a
'aluable asset of the Company.
?<
DEVELOP
Bra#/ I/e#t!t1
Brand concept
MANAGE
Bra#/ I*a0e
&ortfolio management
MAINTAIN
Bra#/ $"1a$t1
Equity building
C"#&!&te#t )ra#/ &trate01
C"**2#!'at!"# pr"0ra*
MARKETS
REFERENCES
Aa1er+ D.+ 4EE4!+ 4anaging Brand 9uity: 3apitali;ing on the value of a Brand 1ame+ $e-
@or1( :ree &ress.
Aa1er+ D.+ 4EEA!+ Building Strong Brands+ $e- @or1( :ree &ress.
Arnol+ D.+ 4EE2!+ The /andbook of Brand 4anagement+ Canada( Addison;Fesley.
Annual =eport of $hat 5inh Co.+ 5td.+ 2333
Co-1ing.+ &.+ and "an1inson+ ,.+ 4EEA!+ The =eality of >lobal Brands: 3ases and Strategies
for the Successful 4anagement of :nternational Brands+ 5ondon.
C.ernia-as1i =.D.+ 4EEE!+ 3reating Brand 2oyalty: The 4anagement of Power Positioning
and =eally >reat $dvertising+ American Management Association.
"anh+ $.+ 2334!+ 7Dri'e up Effecti'eness of 0n'estments+ )rges Minister8+ %ietnam
:nvestment =eview+ $o. <D2 / D ; 4< Oanuary.
Gapferer+ O.+ 4EE2!+ Strategic Brand 4anagement: 1ew $pproaches to 3reating and
valuating Brand 9uity+ $e- @or1( :ree &ress.
Gotler+ &.+ 2333!+ 4arketing 4anagement: the 4illenium dition+ &rentice "all.
Ministry of &lanning and 0n'estment+ 4EED!+ 7Some issues on foreign direct investment
&'??!&''(8+ Documents of the Conference on &lanning and 0n'estment on 4<;4? Oanuary.
$hung+ T.C.+ 4EEE!+ S%ietnamese Consumers Are &aying 0ncreasing Attention to Brand6+
Saigon conomic Times+ 9ctober 4<.
$icholas+ 0.+ 4EEB!+ The 3orporate Brand+ Macmilian &ress.
&ettis+ C.+ 4EE?!+ Technobrands: /ow to 3reate @ Ase 7Brand :dentity8 to 4arket#
$dvertise @ Sell Technology Products+ :ree &ress.
&oter M.E.+ 3ompetitive $dvantage: 3reating and Sustaining Superior Performance+ :ree
&ress.
Quang+ T.+ 2333!+ 2ecture note on global branding and advertising. Bang1o1( #chool of
Management+ A0T.
Quang+ T.+ 4EEE!+ SBrand( An Effecti'e Feapon to Compete6+ Saigon conomic Times+
Oanuary 2D.
#tatistics @earboo1+ 2333+ ,eneral #tatistics 9ffice.
Temporal+ &.+ 2333!+ Branding in $sia: The 3reation# <evelopment# and 4anagement of
$sian Brands for the >lobal 4arket+ Oohn Filey * #ons Asia!.
Tennant+ A.+ 4EE<!+ 3reating Brand Power+ 5ondon( Macmilian &ress.
??
)psha-+ 5.+ 4EE?!+ Building Brand :dentity: $ strategy for Success in a /ostile 4arketplace+
$e- @or1( Oohn Filey * #ons+ 0nc.
%ietnam %enture ,roup 2334!+ %%>!conomic :ndicators+ http(//''g;
'ietnam/com/economicsTc'r.htm+
?A
APPENDIH
9UESTIONS USED IN THE INTERVIEW WITH NHAT LINH CO LTD
I#%"r*at!"# a)"2t the C"*pa#1:
Fhat are the Company6s current productsK
Fhat are the Company6s consumersK
Fhich pro'inces does the Company ser'eK
Fhich pro'inces does the Company sell bestK
"o- about the Company6s distribution net-or1K
Fhat are the Company6s sales re'enues for the past ? yearsK
Fhat is the Company6s o'erall mar1et shareK 0n $orth %ietnam+ and in #outh %ietnamK
Fhat is the Company6s organi.ation structureK
Fhat are its main departments and the roles of each departmentK
"o- does the Company delegate authority to its departmentsK
Fhat is the Company6s communication mechanism and net-or1K
"o- many employees are there in your CompanyK "o- about their attitudes and
experience in -or1ingK And ho- about the Company6s policy for "=MK
Describe the Company6s mar1eting strategy in terms of segmentation+ positioning+
product+ price+ distribution and promotion.
Describe acti'ities in =*D+ operation management+ in'entory control+ inbound and
outbound logistics.
Describe the Company6s branding acti'ities so far+ trade mar1 registration+ etc.
Describe the Company6s infrastructure systemsK
"o- is about the Company6s financial situationK #ources of capitalK
0n general+ -hat are the Company6s strengths and -ea1nessesK
Fhat are the main problems that the Company has to confrontK And -hat are the
solutionsK
Fhat are external factors that affect the CompanyK
Fhat are the Company6s 'ision+ missionK
Fhat is the Company6s strategyK
Fhat are the Company6s obHecti'esK enhancing mar1et shares+ maximi.e profit+..!
I#%"r*at!"# a)"2t C"*pet!t"r&
Fhat are the Company6s main competitorsK
Fhat are their mar1et sharesK
Fhat are their strengths and -ea1nessesK
Fhat are their competiti'e strategiesK
A;4
9UESTIONNAIRE
Dear #ir/Madam+
0 am an MBA student at Asian 0nstitute of Technology. This questionnaire is an enquiry for
information for my final research study+ -hich is a requirement of the academic program. All
information -ill be 1ept confidential and be used for the research study only.
Fe -ould highly appreciate if you could share some of your 1no-ledge by filling out the
questions belo-. @our input is certainly of necessity to my -or1.
Than1 you 'ery much for your cooperation.
4. Fhich 1inds of the follo-ing automatic 'oltage stabili.er/regulator do you 1no-K @ou
can choose more than one ans-er.!
"ansil =obot
5i9A A#T
5ion 9thers specify!..................................
2. 0f you -ant to buy an automatic 'oltage stabili.er/regulator+ -hich one of the follo-ing
-ill you chooseK #elect only one.!
"ansil =obot
5i9A A#T
5ion 9thers specify!..................................
>. &lease rate the follo-ing factors according to the importance of each factor on your
decision to choose an automatic 'oltage stabili.er/regulator brandK
$ot important at all %ery important
- =eliability 4 2 > < ?
- $oise;free 4 2 > < ?
- #afety 4 2 > < ?
- )ser friendly 4 2 > < ?
- #i.e 4 2 > < ?
- Design 4 2 > < ?
- Durability 4 2 > < ?
- Brand reputation 4 2 > < ?
- Easy;to;find shops 4 2 > < ?
- #upporting ser'ices 4 2 > < ?
- &rice 4 2 > < ?
- Ad'ertising 4 2 > < ?
- &romotion 4 2 > < ?
- 9thers specify!............... 4 2 > < ?
<. 0n your opinion+ 5i9A is the name of you can choose more than one choice!(
Automatic 'oltage stabili.er/regulator Amplifier
%oltage cable A company
A;2
Emergency lamp 9thers specify!..........................
#oc1et
?. Fhen you heard 5i9A the first time+ you thought that the product is made
by local manufacturer by foreign manufacturer
A. Through -hich sources of information do you 1no- about 5i9AK @ou can ha'e more
than one choice!
Ad'ertising $e-spapers/maga.ines
:riends/relati'es 5i9A sponsorship programs
Electricians 9thers specify!.................
Trade fairs
B. "a'e your family used 5i9A automatic 'oltage stabili.er/regulatorK
@es $o
D. 0f your family ha'e used 5i9A automatic 'oltage stabili.er/regulator+ ho- much you
agree -ith the follo-ing statements about 5i9A automatic 'oltage stabili.er/regulator
A%#!K
#trong disagree #trongly agree
- 5i9A A%# is reliable 4 2 > < ?
- 5i9A A%# is noise;free 4 2 > < ?
- 5i9A A%# is safe 4 2 > < ?
- 5i9A A%# is user friendly 4 2 > < ?
- #i.e of 5i9A A%# is appropriate 4 2 > < ?
- Design of 5i9A A%# is good 4 2 > < ?
- 5i9A A%# is durable 4 2 > < ?
- 5i9A brand reputation is strong 4 2 > < ?
E. 0n your opinion+ price of 5i9A automatic 'oltage stabili.er/regulator is
Too high =easonable Don6t 1no-
"igh 5o-
43. 0s it easy for you to find a 5i9A shopK
%ery easy Difficult
Easy %ery difficult
44. 0f you ha'e e'er seen a 5i9A ad'ertisement+ ho- -ould you agree -ith the follo-ing
statements about 5i9A ad'ertisementsK
#trongly disagree #trongly agree
- Easy;to;understand 4 2 > < ?
- Easy;to;remember ad content 4 2 > < ?
- Easy;to;remember slogan 4 2 > < ?
- &roduct information 4 2 > < ?
- Corporate information 4 2 > < ?
- Music and Hingles 4 2 > < ?
- %oice 4 2 > < ?
- 9thers specify!................. 4 2 > < ?
A;>
42. 0n your opinion+ the promotion campaign of 5i9A is
%ery attracti'e $ot attracti'e at all
Attracti'e @ou don6t 1no-
:airly attracti'e
4>. @our gender(
Male :emale
4<. @our age(
23 >?;?3
23;>? ?3
4?. @our education(
&rimary school and under )ni'ersity/college
"igh school Master and abo'e
9nce again+ than1s for your 1ind support.
A;<