1205BUILD AND DEVELOP A FASHION BRAND CASE STUDY: MATTANA BRAND.

Build and develop a brand today is not simply to create good appearance for a company such as: name, logo, color, slogan, uniform, transaction papers, office, business space or marketing

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBAVB3 _

NGUYEN DANG HUNG

BUILD AND DEVELOP A FASHION BRAND CASE STUDY: MATTANA BRAND

MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION

(PART-TIME)

Tutor’s name: Dr Bui Thanh Trang

Ho Chi Minh City (2010)

ACKNOWLEDGEMENTS

First of all, I would like to thank my tutor, Dr Bui Thanh Trang, for his valued guidance and comments

I want to thank Mr Dinh Quang Thien for his help in giving comments and helps

I also would like to thank Ms Le Thi Ha Chi, supplain chain manager of Nha Be Corporation and her commercial group for their cooperation and spending time for this thesis

My unforgettable thanks go to my wife who always support and encourage me during this time

Finally, I’m grateful to my parents, my family whose patient love inspires me to complete this MBA program

SUPERVISOR’S COMMENTS

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION -1

1.1 Introduction -1

1.2 Background -1

1.3 Statement of problem -2

1.4 Objective of study -4

1.5 Research questions -4

1.6 Data and Methodology -4

1.7 Scope of study -5

1.8 Structure of study -5

CHAPTER 2: LITERATURE REVIEW -6

2.1 Introduction -6

2.2 Definition and role of brand -6

2.3 Different of Band in B2C and B2B -7

2.4 Build a brand -7

2.4.1 Brand building process: model of Philip Kotler -7

2.4.2 Brand building -8

2.4.2.1 Brand positioning -8

2.4.2.1.1 Targeted customer -8

2.4.2.1.2 Frame of reference -8

2.4.2.1.3 Point of difference -8

2.4.2.2 Designing Brand -9

2.4.2.2.1 Customer perception -9

2.4.2.2.2 Evaluating brand design -9

2.4.2.2.3 Brand systems -10

2.4.2.3 Brand meaning -10

2.4.2.3.1 Brand perspective -10

2.4.2.3.2 Triangulating brand meaning -11

2.4.2.3.3 Manage brand meaning -12

2.5 Marketing plan to develop brand -12

2.5.1 Product -12

2.5.1.1 Product quality -12

2.5.1.2 Product design -13

2.5.1.3 Product-support service -13

2.5.2 Price -14

2.5.2.1 Cost-based pricing -14

2.5.2.2 Competition-based pricing -14

2.5.3 Promotion -15

2.5.3.1 Sales promotion -15

2.5.3.2 Public relation -16

2.5.3.3 Advertising -16

2.5.4 Place -18

2.5.4.1 Channel organization -18

2.5.4.2 Location -19

CHAPTER 3: METHODOLOGY OF RESEARCH -21

3.1 Introduction -21

3.2 Research Design -21

3.2.1 Qualitative Research -22

3.2.2 Quantitative research -23

3.3 Questionnaire -23

3.4 Sample -24

CHAPTER 4: BUILDING PROCESS AND MARKETING PLAN TO DEVELOP MATTANA BRAND -25

4.1 Introduction of Nhabeco and Mattana brand -25

4.1.1 Company profile -25

4.1.2 The brand identity system of mattana -27

4.2 Sample description -28

4.3 Brand building result -28

4.3.1 Brand positioning -28

4.3.1.1 Targeted customer -28

4.3.1.2 Frame of reference -30

4.3.1.3 Point of different -31

4.3.2 Designing brand -31

4.3.2.1 Customer perception -31

4.3.2.2 Brand system -32

4.3.3 Brand management -33

4.4 Marketing plan to develop brand -34

4.4.1 Product -34

4.4.1.1 Product quality -34

4.4.1.2 Product design -35

4.4.1.3 Product-support service -36

4.4.2 Price -38

4.4.3 Place -39

4.4.4 Promotion -40

4.4.4.1 Sales promotion -40

4.4.4.2 Public relation -42

4.4.4.3 Advertising -43

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS -45

5.1 Conclusions and recommendations -45

5.1.1 General -45

5.1.2 Building process -46

5.1.3 Marketing plan -47

5.2 Limitation of the thesis -48

REFERENCES -

APPENDIX 1: QUESTIONNAIRE -

APPENDIX 2: SURVEY RESULT -

APPENDIX 3: AWARDS AND ACCOLADES -

APPENDIX 4: ORGANIZATION CHART -

APPENDIX 5: BOARD OF DIRECTOR -

APPENDIX 6: PRODUCTION CAPABILITY -

APPENDIX 7: LIST OF PROMOTIONS USED IN 2010 -

APPENDIX 8: EVENTS PARTICIPATED IN 2010 -

APPENDIX 9: MATTANA SHOP CHAIN -

LIST OF FIGURES

Figure 2.1: cost plus pricing model -14

Figure 2.2: Channel organization models -19

Figure 3.1: Research design -21

Figure 3.2: Research process -22

Figure 4.1: The history of NBC from 1975 to 2008 -26

Figure 4.2: Key markets -26

Figure 4.3: Export turnover -26

Figure 4.4: targeted customer – age range -28

Figure 4.5: Targeted customer - Job function -29

Figure 4.6: Targeted customer - income level -29

Figure 4.7: Product charactestics -30

Figure 4.8: Point of difference -31

Figure 4.9: Customer perception – logo -31

Figure 4.10: Customer perception on logo’s color -32

Figure 4.11: Brand systems -32

Figure 4.12: Brand management -33

Figure 4.13: Product satisfaction range -34

Figure 4.14: customer loyalty -34

Figure 4.15: Product design -35

Figure 4.16: Fashion trend -36

Figure 4.17: product changing system -36

Figure 4.18: customer satisfaction on service -37

Figure 4.19: market segment -38

Figure 4.20: Price comparision -38

Figure 4.21: location of mattana shops -39

Figure 4.22: Sales promotion -40

Figure 4.23: Promotion perception -41

Figure 4.24: Promotion tools -42

Figure 4.25: Public relation -42 Figure 4.26: Advertising -43

Chapter I INTRODUCTION

1.1 Introduction

The first chapter starts with an introduction to the background of the project topic

It is followed by a problem discussion which leads to the overall purpose the research objectives and research questions of the study This part also describes the methodology used, and finally presents the structure of the study

1.2 Back ground

Nowadays, concepts of brand are familiar to consumers in Vietnam and all over the world Brands allow customers to have trust in specific products they use For instance, coffee drinkers have trust in the Trung Nguyen coffee brand, or drivers have trust in the Toyota they drive According to Philip Kotler (2006), brands are the ideas, perceptions, expectations and beliefs that were in the mind of consumers, your potential customers or any individual who could affect your enterprise A brand is not only simply a fancy name, logo or slogan but also make its customer think of the image, the products, and the promises to customers For example, when thinking of search engines, internet users will think of Google, or when thinking of operation system, computer users will think of Microsoft, and etc

Brands help consumers make buying decisions The best brands consistently win two crucial moments of truth The first moment occurs when customers choose, select or sign the contract to buy after having evaluated all other offerings of the competition The second moment occurs at the customers’ homes, offices or production sites when they use the brand, experience on it, and finally are satisfied or dissatisfied with it Brands that consistently win these moments of truth earn special place in the customers’ minds and hearts These brands are remembered, and the repurchasing will happen more readily and more profitably The value of trust earned between the brand promise and the brand experience realized has always been the simple foundation in any sustainable commercial

attempt Brand, therefore, is company’s intangible asset and should be protected

as well as developed effectively In the world, brands such as: Coca Cola, IBM, Motorola, Nokia, Microsoft, etc are evaluated as strong brands This proves how powerful a brand can bring to corporations if it is built, developed well and correctly in the market

Build and develop a brand today is not simply to create good appearance for a company (such as: name, logo, color, slogan, uniform, transaction papers, office, business space or marketing products), but to sell high quality products and services to customers Furthermore, build and develop a brand also is to build and maintain company’s prestige and characters Therefore, the customers should truly get what the brand promises

1.3 Statement of problem

Nha Be Corporation (NBC), one of the biggest textile and garment companies in Vietnam, has over 30 years of existence with great success It has gained a great reputation of producing capacity and quality of products with domestic and foreign customers And it also has built a strong and united staffs, who always aim for higher goals

Up to now, NBC has developed into a corporation with 34 member units, 17,000 employees and operating in various fields and areas all over the country

With domestic market, NBC’s products such as suits, shirts, trousers, etc., with brands like Novelty, Cavaldi, Style of Living, etc have been being trusted by domestic customers for a very long time All of them are results of the crystallization of NBC’s advantages – the delicacy in selecting materials and models, the skillfulness in designing and tailoring – to best serve Vietnamese consumers For 14 consecutive years, the consumers have showed their belief in NBC by voting the title “Vietnamese high quality product” for NBC’s products With international market, NBC is one of Vietnamese leading businesses in producing and processing garment products for export with great ability and experience For years, NBC has directly produced many famous brands such as JCPenney, Decathlon, Tommy Hilfiger, etc and has been high rated by

international partners for its quality of products, level of production skills and other relative factors

NBC has constructed a system of factories, covering over 50,000 square meters, which have been equipped with over 13,000 specialized equipments and, most important, have employed nearly 17,000 skilled workers

In July 2007, Nha Be Corporation introduced Mattana as a new fashion brand in Vietnam with the ambition to become main player for the segment of office fashion after next 5 years, of which Viettien has been keeping the leader role for more than 6 years and gained around 60% of the total market

NBC has planed to build and develop mattana in different ways of Viettien by using standard fashion shop chain All of mattana shops must follow the same standard from design to quality of shops

Mattana aims to focus on medium and high class customers with price range from VND 200,000 to VND 1,000,000

After 2 years of launching although mattana had a good sales revenue in 2010

VND 100 billion but still lower than their target by 20% and had a far distance

compared to Viettien – VND 1 Trillion

Another concern that even NBC could reach their target by now but the brand of

mattana is still not public in Vietnam, or in another hand the awareness of mattana is still low in customers’ top of mind and it may cause to their master 5

year plan for building and developing mattana become brand number one of the domestic market

Whether mattana can replace Viettien to lead the market or not? And whether mattana can become a strong and sustainable brand name or not? That’s the main questions that NBC’s Board of Director worry for mattana’s future and this thesis will help to analyze the building process of mattana and marketing plan in order

to provide useful information for NBC’s BOD to build strategy to meet their target

Overall, there are two main problems that NBC facing during this time: The sales revenue was lower 20% compared to its target for 2010 and the awareness of mattana was still low in customers’ top of mind

1.4 Objective of study

The purpose of thesis is:

- To analysis and evaluate the current situation of mattana brand based on: brand building process and marketing plan to develop brand

- To provide recommendations to NBC in building and developing brand on track

1.5 Research question

This thesis is trying to answer the following research questions:

1, What is the difference between mattana brand and other fashion brands?

2, Where is the positioning of mattana brand in the market?

3, How does customer aware of the brand?

4, How do customers perceive the quality of products and service of mattana?

1.6 Data and Methodology

This thesis used both quantitative and qualitative research techniques to answer the above research questions

The qualitative research was conducted based on group discussion and an

in-depth interview Commercial forces of Nha Be Corporation (Owner of Mattana brand) were invited to the meeting which they could share their opinions Besides,

an in-depth interview with Ms Nguyen Thi Lan Chi, supply chain manager of Nha

Be Corporation with the topic “How about the current status of mattana brand and what is the marketing plan in the next 3 year” was implemented

The information from above discussion as well as in-depth interview was used to construct questionnaire for the quantitative research

With the help of the sales force in Hanoi and Ho Chi Minh (from Nhabeco and

Song Lam company), the quantitative research was conducted directly to

customers After that, data was collected and analyzed in order to answer the research questions

This thesis was also carried out based on secondary data from accounting and logistic departments of Nhabeco

1.7 Scope of study

This thesis focuses on:

1 Office fashion market in Vietnam

2 Limit to do research in Hanoi and Ho Chi Minh City

Chapter V summarized the main results of the thesis and provided recommendations Finally this part revealed the limit of study which can be used

as a guide for future research

Chapter II LITERATURE REVIEW

2.1 Introduction

This chapter reviewed literatures relating to the thesis In this chapter, role of brands, the comparison between business to business (B2B) and business to consumer (B2C) in brand, brand building process, brand developing process were introduced Moreover, brand building process and marketing plan to develop brand were addressed more precisely in terms of brand positioning, brand design, brand meaning and 4Ps (Product, Price, Promotion, Place)

2.2 Definition and role of Brand

“Consumers view a brand as an important part of a product, and branding can add value to a product Branding has become a central issue in product strategy On the one hand, developing a branded product requires a great deal of long-term marketing investment, especially for advertising, promotion and packaging.”(1) Manufacturers often find it easier and less expensive simply to make the product and let others do the brand building

Powerful brand names have consumer franchise, they command strong consumer loyalty This means that a sufficient number of customers demand these brands and refuse substitutes, even if the substitutes are offered at somewhat lower prices Companies that develop brands with a strong consumer franchise are insulated from competitors' promotional strategies Thus it makes sense for a supplier to invest heavily to create strong national or even global recognition and preference for its brand name

Branding is not a new phenomenon In the last hundred years, however, its use has developed considerably Legal systems recognize that brands are also property in a very real sense Currently, over 160 countries have trademark laws allowing owners of brands to claim title in their brand names and logos through trademark registration But brands, unlike other forms of intellectual property,

such as patents and copyrights, do not have expiration dates and their owners have exclusive rights to use their brand name for an unlimited period of time

Source: (1) Philip Kotler, principle of marketing, 2006

2.3 Different of Brand in B2C and B2B

Consumer market consists of purchasers or individuals in their households who personally consume or benefit from the purchased products, and who do not buy products primarily to make a profit Similarly, Phillip Kotler stated that consumer markets consisted of individuals and households that bought goods and services for personal consumption (Phillip Kotler et al, 1999)

On the other hand, business market consisted of businesses that acquire goods and services to use in the production of other products or services which were sold, rented or supplied to other businesses (Phillip Kotler, 2006)

Although most products or services are aimed to serve individuals or households

as end users, most manufacturers of consumer products have to sell their products

to other businesses (retailers or wholesalers) first In one way or another, almost all companies are engaged in business markets Therefore, B2B sells much more than B2C in terms of volume in one time The main difference is found in many aspects, such as: the nature and complexity of industrial products and services, the diversity of industrial demand, the significantly fewer number of customers, larger volumes per customer, and closer and longer-lasting supplier-customer-relationships

2.4 Build a brand

2.4.1 Brand building process: Model of Philip Kotler

According to Phillip Kotler, ideally, the branding initiative came from top management – the Chief Executive Officer (CEO), Chief Marketing Officer (CMO), or Chief Business Officer (CBO) who geared to establish the brand strength, including brand stability, brand leadership and international presence Brand building, brand consolidation, and brand expansion should have the dimensions of clarity, consistency, and leadership adapted to the surrounding

conditions That should be done with special attention to competition and technology To get all these in line with a long term view, this brand building process involved the following five steps: brand planning, brand analysis, brand strategy, brand building, and brand audit And brand building will be focused on this thesis to be analyzed the building result of mattana brand

2.4.2 Brand building

According to Alice M Tybout and Brian Sternthal on “Kellogg on branding, 2005”, the brand building concept based on 3 steps: brand positioning, designing brand and brand meaning And these 3 steps are the guidelines for this thesis to follow

2.4.2.1 Brand positioning

2.4.2.1.1 Targeted customer

A brief description of the targeted consumers in terms of some identifying characteristics is demographics and psychographics (activities, interests, opinions) These target characteristics are typically selected on the basis of category and brand usage In this thesis, the targeted customer will be focused on the groups of age, income and gender

2.4.2.1.2 Frame of reference

As stated by Alice M Tybout on “Kellogg on branding, 2005” a statement of the target’s goal that will be served by consuming the brand, commonly referred to as the frame of reference The frame of reference may guide the choice of targets, identify situations in which the brand might be used, and define relevant competitors (i.e., brands that claim to serve the same goal)

The frame of reference can be based on product feature and customer goals A consumer goal–based frame of reference may also be helpful in planning the marketing strategy because it typically identifies potential competitors beyond those in the category where the brand holds membership

2.4.2.1.3 Point of difference

The point of difference indicates how the brand is superior to other alternatives within the frame of reference Like the frame of reference, the point of difference

can be expressed at various levels of abstraction Some brands claim relatively concrete, functional benefits such as superior performance or greater economy Other brands promise more abstract, emotional benefits related to how important, special, or good the consumer will feel as a result of using the brand Attribute, image, or attitude information provides a reason for believing the functional or emotional benefit

2.4.2.2 Designing brand

According to BOBBY J CALDER on “Kellogg on branding, 2005” the psychology of consumer perception is fundamental to creating strong brands It should be the basis for designing brands And in this thesis will focus the designing brand process on 3 parts: customer perception, evaluating brand design and brand systems

2.4.2.2.1 Customer perception

As Bobby J Calder mentioned on “Kellogg on branding, 2005”, customer perception means that brands, as concepts, depend heavily on cues that surround the product These cues can dramatically affect how a product is categorized We need to consider carefully how perception will affect the categorization process of

a product Perception dramatically impacts how easy it is for consumers to get the intended brand concept This means that the sensory cues surrounding a brand should be designed to lead to desired perceptual categories This in no way obviates the need for good design in a traditional graphic arts or industrial design sense, but design objectives should also focus on design elements as cues that lead

to perceptual categories

2.4.2.2.2 Evaluating brand design

“In order to design brands the way it is, it is critical that we need to separate brand design from product design Ultimately the two will be intertwined in the marketplace, but they must be evaluated separately” as Bobby J Calder said

The best technique for brand design evaluation is to expose the design briefly and then measure the attention given to various design cues by asking consumers about what they remember seeing—names, colors, and the like It is possible in

this way to obtain a perceptual profile of a design across all the perceptual categories that are the objectives of the design The result is both useful evaluative and diagnostic information

2.4.2.2.3 Brand systems

Intimately related to the focus here on the design of individual brands is the issue

of systems or portfolios of related brands Brand systems and portfolios must also

be considered through the lens of managing perceptions and concepts across categories The classic case of this is extending brands through flavors and sizes Companies increasingly count on taking successful brands into new forms, alternatives and categories

2.4.2.3 Brand meaning

According to John F Sherry on “Kellogg on branding, 2005”, Marketers, consumers, public policy makers, and consumerists are engaged in a perpetual game of discovering, creating, translating, transforming, and reconfiguring meaning This quest for meaning drives marketplace behavior In this part, the thesis will discuss on brand perspective, triangulating brand meaning and manage brand meaning

2.4.2.3.1 Brand perspective

A treatise on meaning rightfully begins with a lexical focus The word brand has a tripartite etymology One emphasis clusters around burning, with connotations both of fiery consummation and of banking the domestic hearth A second emphasis clusters around marking, with connotations of ownership and indelibility, as well as paradoxical allusions to intrinsic essence, whether of merit

or stigma A third emphasis clusters around the delivery of, or deliverance from, danger (stoke, anneal, cauterize; conflagration, possession, aggression).The brand embodies the transformative heat of passion, properly tended It is bestowed, and

it is earned The brand bespeaks the forging of family, as John F Sherry mentioned

Definitions are another direct avenue into meaning A brand is a differentiator, a promise, a license to charge a premium A brand is a mental shortcut that

discourages rational thought, an infusing with the spirit of the maker, a naming that invites this essence to inhabit this body A brand is a performance, a gathering, an inspiration A brand is a semiotic enterprise of the firm, the companion spirit of the firm, a hologram of the firm A brand is a contract, a relationship, a guarantee; an elastic covenant with loose rules of engagement; a non-zero-sum game; improvisational theater at best, guerrilla theater at worst As perceived vessels of exploitation, brands provide the impetus for generics and voluntary simplicity, as well as targets for demonstrations of cultural nationalism

2.4.2.3.2 Triangulating brand meaning

According to John F Sherry, the principal sources of brand meaning arise in three primary domains, these sources are brand image, brand essence, and brandscape Brand image is the external form and observe characteristics of marketer’s offering This is the artifact as offered It is the embodiment of the marketer’s offering Image is the operational meaning of the brand It is the meaning the marketer has been able to infuse into the brand, and it is the most susceptible to strategic manipulation

Brand essence, on the other hand, is the meaning that arises in the customer’s creative engagement with the marketer’s offering It is the internal form of the offering that must be elicited on the ground It is the meaning that is co-created and co-produced by customers Consumers’ interpretations of the brand (along with all other aspects of their active reception of marketers’ efforts) may not have been intended or anticipated by the marketer, but they must be thoroughly understood, if not embraced Brand essence is exegetical meaning Image and essence are suspended in webs whose filaments anchor and nourish them, and whose constant plucking encourages these modes of meaning to cross-pollinate and hybridize Collectively, these webs constitute the brandscape The brandscape is all about positional meaning, as it casts brands in relationships with one another, and with the culture industries at large, to create entire networks of associations that consumers use to limn their lives In cultural terms, the brandscape is the material and symbolic environment that consumers

build with marketplace products, images, and messages, that they invest with local meaning, and whose totemic significance largely shapes the adaptation consumers make to the contemporary world As marketing and other cultural forms—art, education, religion, politics, technology, journalism, and so on—grow increasingly imbricated and globalized, the meaning-bank from which all stakeholders draw grows larger and more variegated by the moment

2.4.2.3.4 Manage brand meaning

Also according to John F Sherry on “Kellogg on branding, 2005”, although have

a lot of ways to manage a brand meaning but this thesis only focus on moral geography cause it’s the primary source of meaning It requires the strategist to evangelize That is, the meaning manager must harness the collaborative and consultative potential of brand co-creation and -production, to facilitate the emergence of proselytes among customers, and to abet the flourishing of brand communities and subcultures on the ground and in the ether Mapping these meaning management directives against traditional templates of brand dynamics can provide very specific guidance for the strategist Usually, managing a brand meaning is to manage the dimension of equity, the equity dimension includes loyalty, awareness, perceived quality and associations

of buyers' perceptions Companies rarely try to offer the highest possible quality

level - few customers want or can afford the high levels of quality offered in products such as a Rolls-Royce, a Sub Zero refrigerator or a Rolex watch Instead, companies choose a quality level that matches target market needs and the quality levels of competing products

Beyond quality level, high quality can also mean consistently delivering the targeted level of quality to consumers

As competition intensifies, design will offer one of the most potent tools for differentiating and positioning product of all kinds

2.5.1.3 Product-support service

Customer service is another element of product strategy, a company's offer to the marketplace usually includes some services, which can be a minor or a major part

of the total offer In fact, the offer can range from a pure good on the one hand to

a pure service on the other According to Philip Kotler (1997), he addressed product-support services - services that augment actual products More and more companies are using product-support services as a vital tool in gaining competitive advantage Good customer service makes sound business sense It costs less to keep the goodwill of existing customers than it docs to attract new customers or woo back lost customers Firms that provide high-quality service usually outperform their less service-oriented competitors

2.5.2 Price

2.5.2.1 Cost-based pricing

The simplest pricing method is cost-plus pricing - adding a standard mark-up to the cost of the product Construction companies, for example, submit job bids by estimating the total project cost and adding a standard mark-up for profit

Figure 2.1: cost plus pricing model (Source: Principle of marketing, 1997)

On “Marketing management, millennium edition” Philip Kotler mentioned, still, mark-up pricing remains popular for a number of reasons First, sellers are more certain about costs than about demand By tying the price to cost, sellers simplify pricing - they do not have to make frequent adjustments as demand changes Second, when all firms in the industry use this pricing method, prices tend to be similar and price competition is thus minimized Third, many people feel that cost-plus pricing is fairer to both buyers and sellers Sellers earn a fair return on their investment, but do not take advantage of buyers when buyers' demand becomes great

2.5.2.2 Competition-based pricing

“Consumers will base their judgements of a product's value on the prices that competitors charge for similar products Although have two forms of competition-based pricing: going-rate pricing and scaled-bid pricing but in this thesis we focus

on going-rate pricing” as Philip Kotler (1997) said

In going-rate pricing, the firm bases its price largely on competitors' prices, with less attention paid to its own costs or to demand The firm might charge the same

as, more or less than its chief competitors In oligopolistic industries that sell a commodity such as steel, paper or fertilizer, firms normally charge the same price The smaller firms follow the leaden they change their prices when the market leader's prices change, rather than when their own demand or costs change Some

firms may charge a bit more or less, but they hold the amount of difference constant Thus, minor petrol retailers usually charge slightly less than the big oil companies, without letting the difference increase or decrease

Although it gives firms little control of their revenue, going-rate pricing can he quite popular When demand elasticity is hard to measure, firms feel that the going price represents the collective wisdom of the industry concerning the price that will yield a fair return They also feel that holding to the going price will prevent harmful price wars

2.5.3 Promotion

2.5.3.1 Sales promotion

According to John Saunders on “Principles of marketing, Second European Edition”, sales promotion includes a wide assortment of tools - coupons, contests, price reductions, premium offers, free goods and others - all of which have many unique qualities:

• They attract consumer attention and provide information that may lead to a purchase

• They offer strong incentives to purchase by providing inducements or contributions that give additional value to consumers,

• Moreover, sales promotions invite and reward quick response Whereas advertising says 'buy our product', sales promotion offers incentives to consumers

to 'buy it now'

Companies use sales promotion tools to create a stronger and quicker response Sales promotion can be used to dramatize product offers and to boost sagging sales Sales promotion effects are usually short-lived, however, and are not effective in building long-run brand preference To work, manufacturers must carefully plan the sales promotion campaign and offer target customers genuine value Only then will they enhance perceived brand image, build sales and maintain customer loyalty

2.5.3.2 Public relation

Another important mass-promotion technique is public relations This concerns building good relations with the company's various publics by obtaining favorable publicity, building up a good 'corporate image' and handling or heading off unfavorable rumors, stories and events The old name for marketing public relations was publicity, which was seen simply as activities to promote a company

or its products by planting news about it in media not paid for by the sponsor

“Public relation (PR) is a much broader concept that includes publicity as well as many other activities” said Gary Armstrong on “Principles of marketing, Second European Edition” Public relations departments use many different tools;

• Press relations or press agency Creating and placing newsworthy information in the news media to attract attention to a person, product or service

• Product publicity Publicize specific products

• Public affairs Build and maintain local, national and international relationships

• Lobbying Build and maintain relations with legislators and government officials

to influence legislation and regulation

• Investor relations Maintain relationships with shareholders and others in the financial community

• Development Public relations with domms or members of non-profit organizations gain financial or volunteer support

“Public relation is used to promote products, people, places, ideas, activities, organizations and even nations Trade associations have used public relations to rebuild interest in declining commodities such as eggs, apples, milk and potatoes Even nations have used public relations to attract more tourists, foreign investment and international support Companies can use PR to manage their way out of crisis, as in the case of Johnson & Johnson's masterly use of public relations to save Tylenol from extinction after its product-tampering scare” Said Philip Kotler on “Marketing management, millennium edition”

2.5.3.3 Advertising

On “Principles of marketing, 2nd edition”, Philip Kotler defined advertising as any paid form of non-personal presentation and promotion of ideas, goods or services

through mass media such as newspapers, magazines, television or radio Advertising is used by many organizations to communicate specific messages about themselves, their products and services, or their modes of behavior to a predefined target audience, in order to stimulate a response from the audience The response may be perceptual in nature: for example, the consumer develops specific views or opinions about the product or brand, or these feelings are altered

by the advertising The response could be behavioral: for instance, the consumer buys the product or increases the amount that he or she buys Advertisers that sponsor advertisements include not only business firms, but also non-profit and social institutions such as charities, museums and religious organizations that promote causes to various target publics

Advertising is a good way to inform and persuade, whether the purpose is to build brand preference for Nokia mobile phones worldwide, or to motivate a nation's young consumers to drink more milk, or to encourage smokers to give up the habit

Advertising strategy covers two major elements: creating the advertising messages and selecting the advertising media In the past, most companies developed messages and media independently Media planning was often seen as secondary to the message creation process First the creative department created the ad; then the media department selected the best media for carrying the advertisements to the desired target audiences Separation of the functions often caused friction between creative and media planners

Today, however, media fragmentation, soaring media costs and more focused target marketing strategies have raised the importance of the media planning function In some cases, an advertising campaign might begin with a good media opportunity, followed by advertisements designed to take advantage of that opportunity Increasingly, companies are realizing the benefits of planning these two activities jointly Messages and media should blend harmoniously to create an effective overall ad campaign (1)

Source: (1) Principles of marketing, second European edition, page 907

2.5.4 Place

2.5.4.1 Channel organization

According to Gary Armstrong on “Principles of marketing, second European edition”, distribution channels have been loose collections of independent companies in historically, each showing little concern for overall channel performance These conventional distribution channels have lacked strong leadership and have been troubled by damaging conflict and poor performance However, over the last decade, new channel organizations have evolved to challenge conventional channels

One of the biggest recent channel developments has been the vertical marketing systems that have emerged to challenge conventional marketing channels

A conventional distribution channel consists of one or more independent producers, wholesalers and retailers Each is a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole

No channel member has much control over the other members and no formal means exists for assigning roles and resolving channel conflict

In contrast, a vertical marketing system (VMS) consists of producers, wholesalers and retailers acting as a unified system One channel member owns the others or has contracts with them, or wields so much power that they all cooperate The VMS can be dominated by the producer, wholesaler or retailer Vertical marketing systems came into being to control channel behavior and manage channel conflict They achieve economies through size, bargaining power and elimination of duplicated services

Figure 2.2: Channel organization models (Source: Principle of marketing, 1997) 2.5.4.2 Location

One more important factor in the marketing plan is location To develop a brand better than the location plays an key role, not only selecting the place of selling points but also selecting selling partners With the fashion field, the location is vital thing to advertise as well as develop brand, in general we can select the location at:

• Supermarkets: large, low-cost, low-margin, high -volume, self-service stores that carry a wide variety of food, laundry and household products

• Superstores: well developed in many parts of Europe, where they account for a sizeable share of total retail sales

• The latter group of retailers is also known as category killers They are a new breed of exceptionally aggressive discounters, offering a wide range of branded products in a clearly defined category

• Hypermarkets arc even bigger than superstores A typical hypermarket occupies around 10,000 square metres of space, almost as big as six football fields They carry more than just routinely purchased goods, for they also sell furniture, appliances, clothing and many other things

• A department store carries a wide variety of product lines - typically, clothing and fashion accessories, cosmetics, home furnishings and household goods – each operated as a separate department managed by specialist buyers or merchandisers

• Retail stores come in all shapes and sizes, and new retail types keep emerging Generally, they can be distinguished by the amount of service they offer, the product line and relative price emphasis Retailers vary in the length and breadth of their product assortments (1)

Source: (1) Principle of marketing, Philip Kotler, 1997

Chapter III METHODOLOGY

3.1 Introduction

This chapter addressed the research design, methodology of collecting data, research tools, research process and sampling It focused on group discussion guide and questionnaires

3.2 Research Design

William G Zikmund (1997) stated that the nature of the problem that was well known based on its basis of purpose would determine whether the research is (1) exploratory, (2) descriptive, or (3) causal Professor Claire Gruslin in her market research course in 2010 also classified researches into three kinds as above Following that descriptive research is to (1) describe a situation, (2) know supplier and market structure (3) follow the evolution of a marketing variable, and (4) make predictions

This project aimed to analyze the current situation of Mattana brand, therefore description research is the most suitable methodology In order to answer the research questions, research design and research processes were provided as follows:

Figure 3.1: Research design Source: Lecture of Market research course, Claire Gruslin, 2010

Methodology

Description

Method for collecting data

Qualitative Quantitative

Sampling

260 customers

Research tool

Group discussion Questionnaire

in-This interview aimed to know more about the capacity of Nhabeco and requirement of customer regarding to mattana brand The in-depth interview with supply chain manager of mattana has shown the overview picture of mattana situation in the market From her opinion, although mattana has a big jump to enter the market but still remain a lot of difficulties, especially the competitive from other manufacturers such as Viettien, An Phuoc, etc

The interview with group of business development people of nhabeco has opened some information regarding to mattana They all concerned to price of mattana was rather higher compared to other same level brand name Another aspect was the image of brand, mattana has trended to young and active people in the cities but did not many customers aware to the brand meaning, even some people they did not recognize that mattana was the brand of nhabeco An important point mentioned in this interview was the quality and design of products According to them, the quality of products would be the key point of mattana, it’s an advantage

of nhabeco with its experience in many years in this field The distribution channel as well as its location could affect to sales revenue of mattana also

Problem

statement

Literature review

Draft questionnaire

Qualitative research

Adjust questionnaire

Pilot test Official

questionnaire

Quantitative research

Analysis and finding

Conclusion and recommendation

The opinions from sales group discussion and in-depth interview with supply chain manager were used to establish questionnaires in the quantitative research

3.2.2 Quantitative Research

With the help of the sales force in Hanoi City and Ho Chi Minh City, qualitative research was conducted with totally 260 customers (n=260) Of which 160 direct customers were asked when they bought the products at mattana shops and 100 questionnaires were sent through email directly (they could be officers, engineers, etc) After that, data was collected and analyzed by EXCEL in order to answer the research questions

3.3 Questionnaire:

The questionnaire was comprised of three parts

Part I collected information on customers: age, gender, income level

Part II focused on analysis of building process of mattana It was divided into three sections: brand positioning, designing brand and brand meaning

• Brand positioning: the brand positioning evaluation will be focused on criteria, such as targeted customer, frame of reference and point of difference In point of difference, the thesis focused on the shop chain that has very different definition compare to others

• Designing brand: the analysis based on Customer perception, Evaluating brand design and Brand systems

• Brand meaning: the analysis based on brand perspective, Triangulating brand meaning and Manage brand meaning

Part III focused on analysis of marketing plan to develop the brand, it was divided into 4 Ps: Place, Promotion, Price and Product

• Product: Focused on product quality, product design and product-support service

• Price: Focused on cost-based pricing and competition-based pricing

• Promotion: Focused on Sales promotion, Public relation and advertising

• Place: Focused on Channel organization and location

Part IV Requested some additional information to give suggestions from customers for improvement of brand

3.4 Sample

Samples were selected by using simple sampling technique

According to William G Zikmund (1997), if the sample size was more than five percent of a finite population, the finite correction factor could be used to reduce the sample size In B2C market, the population is big so the thesis can select the sample size is 250 (1)

A total of 260 questionnaires were distributed 160 (61.5%) were sent directly to customers when they bought products at mattana shops in Hanoi and Ho Chi Minh City, and 100 (38.5%) were sent through emails directly

In geographic, have 100 questionnaires sent out for customers in Hanoi and 160 for customers in Ho Chi Minh City

Finally, there were 230 questionnaires (88.4%) returned with valid answers

Source: (1) William G Zikmund, (1997), Business research methods, Fifth edition, The Dryden Press-Harcourt Brace College Publishers, p 474

Chapter IV BUILDING PROCESS AND MARKETING PLAN TO DEVELOP

MATTANA BRAND

4.1 Introduction of Nha Be Corporation and Mattana brand

4.1.1 Company profile

History of Nha Be Corporation:

Nha Be Corporation (NBC) was founded from two garment factories named Ledgine and Jean Symi in Saigon Export Processing Zone, which have been operating since before 1975 After the unification in 1975, the Department of Light Industry took over these two factories and changed their names into Export Processing Zone Garment Factory The number of employees who worked in the factory at that time was about 200

The early 1990’s was the period of strong development of the textile and garment industry to become a main force in Vietnam’s export-oriented socioeconomic development strategy In order to address the needs of strong economic units to accomplish the strategic task of the industry, on March 1992, the Ministry of Industry decided to found Nha Be Garment Company based on the foundation of Nha Be Garment Factory

On April 2005, Nha Be Garment Company was privatized and transformed from a state-owned company into Nha Be Garment Joint Stock Company Also in this period, the company implemented various in-depth investment plans in producing processes and technologies, machines and equipments, and workers’ skills The goal was creating major product ranges such as suits, high-class shirts, etc which had high added-values, could create the competitive advantage and were directed

to big markets like America, Japan and EU Until now, Nha Be Garment has been being assessed as the leader of Vietnam in suits products area

In the year of 2008, the company had a lot of changes in orientation, organization and domestic market development It re-organized its departments to streamline producing processes, separated some functions to form member units, and expanded operation to high potential areas

On October 2008, the company changed its name again into Nha Be Garment Corporation - Joint Stock Company (NBC) and introduced a new brand identity system

The domestic market became a focus of NBC’s operation with many large-scale plans NBC renovated its vital tasks such as market researching and product designing, and introduced new brands and extended its distribution system in the whole country

After over 30 years of existence, the NBC’s greatest success so far is it has gained

a great reputation of producing capacity and quality of products with domestic and foreign customers, and it also has built a strong and united staffs, who always aims for higher goals

Figure 4.1: The history of NBC from 1975 to 2008 (source: From NBC)

Up to now, NBC has developed into a corporation with 34 member units, 17,000 employees and operating in various fields and areas all over the country

Figure 4.2: Key markets (from NBC) Figure 4.3: Export turnover (mils USD)

Core values

NBC always acts according to the following values:

1 The customers are the focus

The customers always are the focus of our strategy and policy planning process

2 Social responsibility

With the responsibility of a leading business, NBC operates not only for trading purpose; NBC also commit to actively participate in promoting the quality of life and developing society

3 Creativity and Quality

Key elements of creativity are the skills of creating appropriate designs, selecting right materials, improving equipments and processes NBC always promote our abilities to meet suitable standards and the needs of markets and customers

4 Flexibility and Effectiveness

Our managing and producing systems are highly flexible, ready to fulfill every need of customers in fashion area

5 Profit

Always maximize profits based on using resources reasonably, effectively and responsibly

4.1.2 The brand identity system of mattana

Mattana has been created by combination between Italian famous designer Mr Lucas Hubscher and NBC Mattana products combine color, new material, modern style and new technology for Vietnamese people Mattana trends to officer men and ladies, it brings the trust to customers by supply high standard products

Customers can offer by their own design or veston with their hobbies combined with high-tech standard of NBC, that’s the different of mattana compared to other fashion products

With mattana products, NBC would like to serve by its best for targeted customers are business people, officers, students with the age range from 22 to 40 years old They are young, active and have sustainable income They respect traditional culture but accept the new trend and believe on lighter future They want to explore the world, like to travel, have active life, like to visit other peoples and want to be successful They are all the people that you can see when using mattana products, 7 aspects of brand that you can see: Strength, dynamic, young, fashion, passion, successful and polite

4.2 Sample description

Total 260 questionnaires have been sent to customers, of which 160 sent directly

to the customers who bought mattana products at mattana shops and the rest 100 has been sent though emails The value answers can be calculated in 230 In 160 answers from direct customers had all of them 160 were valued feedbacks and in

100 feedbacks from emails, got 70 valued answers