Chuyên đề thực tập bachelor of business administration in english (e bba) thesis

.575.2 SOLUTIONS AND RECOMMENDATIONS FOR HAI HA CONFECTIONERY JOINT STOCK COMPANY TO ENHANCE BRAND EQUITY...57 5.2.1 Establishing a marketing department...57 5.2.2 Refurbishing the compa

NATIONAL ECONOMICS UNIVERSITY

BUSINESS SCHOOL

FACTORS AFFECTING THE BRAND EQUITY OF HAI HA

CONFECTIONERY JOINT STOCK COMPANY

Bachelor of Business Administration in English (E-BBA) Thesis

Student : Vu Thi Hoang Ha Class : E-BBA 8B

Supervisor : PhD Dao Thi Thanh Lam

Hanoi, 2019

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First of all, I would like to express my deep gratitude to my supervisor Dr

Dao Thi Thanh Lam, who has directly guided and encouraged me from the

beginning to the final level of this study Thanks to that, I was able to complete

my graduation thesis and gained a lot of valuable knowledge and skills

Secondly, I would like to express my sincere thanks to all the lecturers and

professors for giving me great inspiration, which made me realize the interesting

nature and the imperative of business administration and me, as well as other

students of the National Economics University, are extremely grateful for those

lessons In addition, I am grately indebted to the School of Business of National

Economics University as well as the E-BBA Program for providing me with the

best learning environment, where I not only have the knowledge and experience

to broaden my horizens, but also have many opportunities to participate in

extracurricular activities that improve my life skills Besides, I would like to send

my greetings to my beloved E-BBA friends, who have accompanied me for

nearly 4 years, always encourage and support me academically and spiritually

Finally, I am grateful to my loving parents for supporting me and creating

favorable conditions for me during my time at National Economics University

and now being here, to complete this thesis Without them, I would not be able to

go this far and become who I am today

Author,

Vu Thi Hoang HaChuyên đề thực tập Tốt nghiệp

TABLE OF CONTENTS

ACKNOWLEDGEMENTS i

TABLE OF CONTENTS ii

ABBREVIATIONS v

LIST OF TABLES vi

LIST OF FIGURES vii

EXECUTIVE SUMMARY 1

CHAPTER 1 INTRODUCTION 3

1.1 RESEARCH RATIONALE 3

1.2 RESEARCH OBJECTIVES 4

1.3 RESEARCH QUESTIONS 4

1.4 RESEARCH SCOPE 5

1.5 RESEARCH STRUCTURE 5

CHAPTER 2 THEORETICAL FRAMEWORK OF FACTORS AFFECTING THE BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 6

2.1 OVERVIEW OF BRAND AND BRAND EQUITY 6

2.1.1 Definition of brand 6

2.1.2 Function of brand 7

2.1.3 Role of brand 8

2.1.4 Brand equity 9

2.2 MEASURING FACTORS AFFECTING THE BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 12

2.2.1 Foreign research: 12

2.2.2 Domestic research: 14

2.3 PROPOSED RESEARCH MODEL 16

2.3.1 Brand awareness 18

2.3.2 Brand association 19

2.3.3 Perceived quality 19

2.3.4 Brand loyalty 19

2.4 DIMENSIONS AND CONSTRUCTS TO MEASURE BRAND EQUITY OF HAI HA 20

CHAPTER 3 RESEARCH METHODOLOGY 22

3.1 RESEARCH PROCESS 22

3.2 DATA COLLECTION 22

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3.2.1 The secondary data 22

3.2.2 The primary data 23

3.3 DATA ANALYSIS 26

CHAPTER 4 FACTORS AFFECTING THE BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 27

4.1 OVERVIEW OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 27

4.1.1 Development history of the company 27

4.1.2 The organizational structure of the company 28

4.1.3 Vision – mission and the core values of the company 30

4.1.4 Operating areas of the company 31

4.1.5 Strengths and weaknesses of the company 32

4.2 RESPONDENTS PROFILES 34

4.2.1 Gender 34

4.2.2 Age group 35

4.2.3 Income levels 36

4.3 RELIABILITY TESTING AND EXPLANATORY FACTOR ANALYSIS 37

4.3.1 Descriptive analysis for all factors 37

4.3.2 Reliability testing on examined dimensions 39

4.3.3 Explanatory Factor Analysis 44

4.4 ANALYSIS ON FACTORS AFFECTING THE BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 46

4.4.1 Correlation 46

4.4.2 Results of Regression Analysis of influence off independent variables on customer satisfaction 48

4.4.3 Summary of findings 50

4.4.4 Analyze the effects of qualitative definitions in assessment of brand equity 51

4.5 DISCUSS THE RESULTS 55

CHAPTER 5 SOLUTIONS FOR ENHANCING BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 56

5.1 DEVELOPMENT ORIENTATION OF HAI HA CONFECTIONERY JOINT STOCK COMPANY 56

5.1.1 The main objectives of the Company 56

5.1.2 Medium-term and long-term development strategy 57

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5.1.3 Objectives for the Company's environment, society and community .57

5.2 SOLUTIONS AND RECOMMENDATIONS FOR HAI HA

CONFECTIONERY JOINT STOCK COMPANY TO ENHANCE

BRAND EQUITY 57

5.2.1 Establishing a marketing department 57

5.2.2 Refurbishing the company's production headquarters, developing the chain of product displaying shops 58

5.2.3 Promote advertising activities to spread the brand equity for HAIHACO 59

5.2.4 Invest in designing and innovating packaging 60

CONCLUSION 61

REFERENCES 62

APPENDIX 1 IN-DEPTH INTERVIEW QUESTIONS 64

APPENDIX 2 SURVEY QUESTIONS 65

APPENDIX 3 STATISTICS 68

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LIST OF TABLES

Table 1 Factors affecting the brand equity in previous researches 16

Table 2 Factors affecting the brand equity in previous researches 20

Table 3 Measurement 25

Table 4 Business situation of Hai Ha Company over a period of 3 years 31

Table 5 Sample distributions by gender 34

Table 6 Sample distributions by gender 35

Table 7 Sample distributions by gender 36

Table 8 Descriptive analysis for all factors 37

Table 9 Reliability Testing statistics 39

Table 10 Cronbach’s Alpha of Brand Awareness variable 40

Table 11 Cronbach’s Alpha of Brand Associations variable 41

Table 12 Cronbach’s Alpha of Perceived Quality variable 42

Table 13 Cronbach’s Alpha of Brand Loyalty variable 43

Table 14 Cronbach’s Alpha of Brand Equity variable 44

Table 15 KMO and Bartlett's Test after EFA 45

Table 16 Rotated Component Matrix 45

Table 17 Total Varience Explained 46

Table 18 Pearson correlation coefficients 47

Table 19 Model Summary 48

Table 20 ANOVA 48

Table 21 Regression coefficient 49

Table 22 Summary of hypothesis testing result 50

Table 23 Test the difference in the assessment of brand equity in gender 52

Table 24 Test the difference in the assessment of brand equity among 53

Table 25 Test the difference in the assessment of brand equity among income levels 54

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LIST OF FIGURES

Figure 1 Brand equity model of Aaker 12

Figure 2 Brand equity model of Keller 13

Figure 3 Brand equity model of Eda Atilgan, Safak Aksoy and Serkan Akinci .14 Figure 4 Brand equity model of Vietnam’s consumer goods market 15

Figure 5 Brand equity model of beverage industry 16

Figure 6 Model of factors affecting the brand equity of Hai Ha Confectionery Joint Stock Company 18

Figure 7 Research process 22

Figure 8 Sample distributions by gender 34

Figure 9 Sample distributions age group 35

Figure 10 Sample distributions by income levels 36

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EXECUTIVE SUMMARY

Today, globalization and integration are becoming the fundamental andindispensable trend that dominate the economic situation of each country.Globalization is opening up opportunities and challenges to every country,especially developing countries like Vietnam In order to build a brand that canstand up to such fierce competition, Vietnamese businesses must have a long-termstrategy of building, developing, promoting and protecting brands from now on.However, branding is still a relatively new problem to most Vietnamese businesses,many of them only focus on producing products without exploiting, even wastingtheir inherent assets, that is the brand

Established in 1960, Hai Ha Confectionery Joint Stock Company (HAIHACO)

is one of the leading confectionery manufacturers in Vietnam with more than 1,300employees and total revenue reached 100,8 billion VND at the end of year 2018.Besides, the company has set clear development goals and orientations One ofthose goals is to promote branding activities and enhance products’ brand tomaintain the position of business in the confectionery market Consequently, thisresearch aims to identify factors affecting the brand equity of HAIHACO through 4aspects: brand awareness, brand association, perceived quality and brand loyalty

By measuring the aforementioned variables, the study will help company devise along-term strategy to build and develop the brand - this is an effective tool toenhance the competitiveness of Hai Ha Confectionery Joint Stock Company

The author collected secondary data via internet and primary data throughsome in-depth interviews and survey questionnaire The study applied linearregression which is analyzed by SPSS 20 software based on 4 independent variablesand from that will find out their influence on the brand equity of Hai HaConfectionery Joint Stock Company For this purpose, responses were collectedfrom customers directly at the counter of Hai Ha with sample size of 128individuals, in which survey questions created by the author are the input to analyzethe factors affecting the brand equity of Hai Ha Confectionery Joint StockCompany The results revealed that brand awareness is the most influential factoraffecting brand equity, followed by perceived quality, brand associations and brandloyalty, respectively However, it does not mean that the company just need tofocusing on improving the elements of brand associations and brand loyalty,

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besides, promoting and maintaining well brand awareness and perceived quality forcustomers to have a good impression of the brand

Finally, the author has proposed some solutions to develop and enhance thebrand equity of Hai Ha Confectionery Joint Stock Company such as establishing amarketing department, renewing the production headquarters and the displayingshops of the company, promoting advertising activities to promote the value ofHAIHACO brand, improve the packaging

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CHAPTER 1 INTRODUCTION

1.1 RESEARCH RATIONALE

In recent years, along with the development of the economy and the increase inthe population size, confectionery is one of the highest and most stable growth ratesindustries in Vietnam Currently, there are many confectionery companies in theVietnamese market, which makes the confectionery market become more exciting.Products as well as the packaging and design are becoming more diverse withnationwide supply range Vietnamese brands have affirmed their value in bothdomestic and export markets thanks to good quality such as: Kinh Do, Trang An,Bibica, Hai Ha Kotobuki, Besides, there are also more adhesion from theconfectionery production companies of China, France and Indonesia with a variety

of products The speed of development and development prospects in the futuremake the confectionery market more competitive Domestic confectionery brandsare now facing fierce competition pressure, not only among domestic enterprisesbut also foreign enterprises However, domestic businesses are increasinglyaffirming their position in the market with a variety of products, good quality andconsistent with the taste of Vietnamese consumers In parallel with thedevelopment, consumers are increasingly sharp and fastidious, requiring productsthat are not only good in quality but also need to maintain and attract customers.Facing many choices, the consumers’ trend currently is not only leaning towardprice and quality but also the value of that brand As a result, businesses mustdevelop effective branding strategies so that customers can have knowledge ofproducts and businesses can convince them of the benefits they can gain compared

to other brands

In the context of competition, the brand is an extremely important factordetermining the success or failure of manufacturers and businesses Hankinson andCowking (1996) stated that building a strong brand is one of the ways companiescan develop and maintain strengths with competitors and thereby maintain andincrease sales and market share With limited resources, having to choose how tobuild a brand can have a positive impact on the customers' buying intentions,furthermore, the customers’ choice becomes a difficult problem for confectioneryenterprises Besides, confectionery industry is a highly competitive industry withthe pressure of integration process that makes the company sometimes focus on

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dealing to survive rather than implementing strategies for long-term development.

On the other hand, confectionery is not an essential human need, so theconsumption of confectionery products is highly dependent on the people's income

In addition, consumers are increasingly concerned with health, afraid to use sugaryproducts Therefore, confectionery products of Hai Ha want to penetrate into themarket will be under great pressure in moderation to ensure good quality anddiversify types, models and flavors to suit the tastes of each customer’s object.However, Hai Ha Confectionery Joint Stock Company currently has capital mainlyfrom commercial loans This has reduced the initiative in implementing thecompany's marketing strategy In addition, the absence of an independent MarketingDepartment that still has to operate depending on the Market Planning Departmentwhich has greatly influenced the brand development, new products, market demandsurvey, of Hai Ha confectionery joint stock company Consequently, researchingthe factors affecting the brand equity of Hai Ha confectioner is really necessary andmeaningful for building business strategy, developing brand and supporting themarket planning department, also the marketing department of the company inparticular and managers in the confectionery industry in general That is the reason

why the author chose the research topic "Factors affecting the brand equity of Hai

Ha Confectionery Joint Stock Company" to help businesses understand more

about the role of these factors and measure the impact of them on brand equity

1.2 RESEARCH OBJECTIVES

The main objective of this thesis is determining the factors affecting the brandequity of Hai Ha Confectionery Joint Stock Company in order to propose solutionsfor building and promoting brands more effectively

To achieve this overall goal, the study is based on the following specificobjectives:

- Review theories on brand equity to select the most appropriate model ofbrand equity to identify the main factors affecting the brand equity of Hai HaConfectionery

- Measure the impact of each factor on brand equity of Hai Ha Confectionery

- Recommend some solutions to enhance the brand for Hai Ha ConfectioneryJoint Stock Company

1.3 RESEARCH QUESTIONS

The aim of this research will answer these following questions:

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- What are the factors affecting the brand equity of Hai Ha Confectionery JointStock Company?

- How do these factors affect the brand equity of Hai Ha Confectionery JointStock Company?

- How to build and develop the brand equity of Hai Ha Confectionery JointStock Company?

1.4 RESEARCH SCOPE

- Research content: Factors composing the brand equity of Hai Ha

Confectionery Joint Stock Company assessed by customers who have been usingthe products of Hai Ha Confectionery Joint Stock Company in Hanoi area

- Research location: Hanoi

- Time:

+ Secondary data: from 1995 to 2019

+ Primary data: from November 2019 to December 2019

+ Solution applying time: from January, 2020

1.5 RESEARCH STRUCTURE

Chapter 1: Introduction

Chapter 2: Theoretical framework of factors affecting the brand equity of Hai

Ha Confectionery Joint Stock company

Chapter 3: Research methodology

Chapter 4: Factors affecting the brand equity of Hai Ha Confectionery Joint

CHAPTER 2 THEORETICAL FRAMEWORK OF FACTORS AFFECTING THE BRAND EQUITY OF HAI HA CONFECTIONERY JOINT STOCK COMPANY

2.1 OVERVIEW OF BRAND AND BRAND EQUITY

a whole, the preferred term is trade name”

With this brand definition, a brand is simply considered to be a component

of a product, including physical physical elements used to distinguish itsproduct from those of competitors However, in today's fierce competition, thisbrand concept does not reflect the role of the brand Many people believe thatthe brand includes only a few factors such as color, font, logo, slogan (Slogan)

or maybe sound In fact, a brand is not just a name or a symbol, but also morecomplicated They are the attributes that differentiate an enterprise's productfrom those of existing competitors in the market and provide customers withthe value they require It can be said that "Brand is the image of company" Thebasic idea and core concept behind "company’s image" is really important.Everything that belongs to the company and its products must reflect the valuesand goals of the entire enterprise Those meanings are not just in colors, fonts,logos and slogans

Nowadays, the definition of brand has changed the way of looking at businessand marketing around the world In Vietnam, the brand is being captured andapplied firstly by professionals in the field of consumer products business Thefollowing is a summary of the definitions of organizations, individuals and thequotes of top brand experts that will help us understand more about brand

Philip Kotler - the founder of modern marketing: “A brand is a name, term,sign, symbol, ordesign or a combination of them, intended to identify the goods and

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services ofone seller or group of sellers and to differentiate them from those of thecompetitor”, then, whenever a marketer creates a new name, logo or symbol for anew product, he or she has created a brand.

According to Nicolino (1996) "A brand is a defining entity that creates its ownvalue commitments."

AI Ries (1981) asserted that: “A brand is a singular idea or concept that youown inside the mind of a prospect” - “Positioning – the battle for your mind”

David Aaker said in the book “Building Strong Brands”: “A brand is theproprietary visual, emotional, rational and cultural image that you associate with acompany or aproduct”

According to Moore (2003): “A brand is a combination of all materials,aesthetics, arguments and emotions of a product, or a product line, including theproduct, name, logo, image and all visual representations, over time it is clearlycreated in the minds of consumers to establish a foothold there”

However, in a nutshell, it is conceivable that a brand as an organization,service or product, has a personality trait formed by consumer perceptions Hence,designers can not create a brand, only customers can do this, designers only createthe foundation of the brand “And the brand is an intangible and valuable asset ofthe business It is a combination of many factors, the achievements that businessbuilds during their operation It is the reputation of the brand as a guarantee for thepotential profit of the business.”

2.1.2 Function of brand

a) Market segmentation

Through market research, business segments the market by criteria such asgender, geography, income, interests, etc With its strengths and potentials, thesegmentation helps business has appropriate strategies, which will design productssuch as packaging, logo, so that consumers can easily distinguish and recognizecompared to other products

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b) Perception and trust creation

Brand needs to create an impression, a certain perception (the feeling aboutluxury, difference, comfort and confidence, ) of customers about products andservices

When a brand creates good perception and customer trust, it brings to thecompany a loyal customer base

Creating a brand is not an easy task for enterprise Being built with differentcosts and investments, those elements will create genuine brand equity of thebusiness The profits and future potentials of the brand will help businessesdetermine their own financial value

2.1.3 Role of brand

a) The role of brand to business

Brand is a functional tool for consumers to identify and distinguish a productfrom another A famous brand will bring to business many advantages, not onlycreating the image of the product but through the brand, creating a reputation for theproduct will also help business sell goods faster

Even if the buyer and the seller do not meet, through the brand, the they stillcan understand each other, ensuring the quality of products It is a promise oragreement between businesses and consumers

Brand helps business meet the purpose of identification to simplify thehandling or traceability of products In addition, it allows businesses to legallyprotect the characteristics or own featured form of products

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b) The role of the brand to consumers

With a famous and reputable brand, when choosing to use, consumers willhave confidence in the product, feel secure about the product and become loyal tothe product

“When using a product, thanks to the experience in the use process combinedwith the marketing program of that product over the years, customers know whichbrand satisfies their needs, which brand does not As a result, the brand becomes atool to help customers simplify their purchasing decisions This allows customers toreduce the time and effort of finding products

In addition, brands can limit customers' risks when they decide to buy andconsume products by buying them from famous brands, especially those that havebrought them a good experience in the past

Therefore, the brand is also an important risk handling tool for customers.”

There are many different views and assessments about factors affecting thebrand equity However, let me summarize some of the concepts that are commontoday

Lassar et al (1995) assessed brand equity in two groups: evaluating fromfinancial opinion and consumer opinion The assessment from a financial view is topoint out the added value that brands bring to the assets of organization andbusiness This determination technique separates brand equity from other corporateasset values This method splits the stock value of an enterprise into tangible andintangible assets, and then separates the brand equity from that intangible asset.However, this appraisal does not help business in building and improving brandequity Brand equity from the perspective of consumers is classified into 2categories: based on signalling theory derived from information economics theoryrelying on market information conditionṣ and based on cognitive psychology theorycoming from the attitude of consumers To summarize, from a point of view of

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customers, this is a set of factors related to the brand, logo and brand name,contributing to increasing or reducing the value of products and services for thecompany and customers

In general, brand assessment from the perspective of consumers is more widelyused, which helps businesses apply and develop brand equity to consumers,moreover to measure brand equity through consumer reviews

According to Keller (1993), brand equity is a customer's knowledge of thatbrand From there, the brand equity consists of 2 main parts including: (1) brandawareness and (2) brand image In brand awareness, it includes: brand recall andbrand recognition In brand impression, there are types of brand association such as:attributes, benefits, attitudes, favorability of brand associations, strength of brandassociations and uniqueness of brand associations And in the above sub-attributesinclude other sub properties such as: functional benifits, experiential benifits andsymbolic benifits

According to Aaker (1996), brand equity will create value for both customersand businesses, the value created for customers will increase the value forbusinesses He has built a model of brand equity that is composed of 4 elements:

o The brand recognition of customers (brand awareness)

“Brand awareness is the ability that a potential customer can recognize orrecall a brand The level of brand awareness speaks to the ability of a customer toidentify, and distinguish the characteristics of a brand in a brand set available in themarket When consumers decide to consume a brand, they must first recognize thatbrand Buyers often choose brands that they already know because they feel saferand more comfortable As a rule, a well-known brand will be more reliable andhave better quality Brand awareness will be very important for consumer goods,when people buy goods, they often plan their brand in advance In this case, theunknown brand will not have the opportunity to be selected Therefore, brandawareness is a factor affecting brand equity (Aaker, 1991; Keller, 1998).”

o Customer's associations when hearing or seeing a brand (brand associations)

Brand associations is the idea of connecting to consumers' memory when itcomes to brands From brand associations will help the company make a difference

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in brand positioning, create a reason to buy, create positive inspiration and createopportunities for developing sub-brands As a result, the more positive associations

a brand has, the better it will be (Aaker, 1991; Keller, 1998)

o Quality of products or services provided in perceptions of customers (percived quality)

Perceived quality, which is the difference between the total value of consumersreceived and the quality they expect in a product when deciding to buy at a certaincost, is a key factor to compare brands with each other However, the true quality of

a brand that the manufacturer provides and the quality perceived by customers often

do not overlap The simplest reason is that the customer is not an expert in this field.Therefore, the technical features are often not fully and accurately evaluated bycustomers Quality perceived by customers is the factor that customers use as abasis for making consumer decisions A brand often accompanies a customer'soverall perception of product quality The perceived quality will directly influencethe purchasing decisions and customer loyalty, especially in the case that the buyerdoes not have the time or ability to thoroughly research product features beforepurchasing Perceived quality also supports the determination of a high price policy,

so it will generate more profit to reinvest in branding

Thus, quality perceived by consumers is the third element of brand equity (Aaker,1991; Keller, 1998)

o Customers’ loyalty to the brand (brand loyalty)

Consumer loyalty to a brand indicates the tendency of consumers to buy anduse a brand within a product family and repeat this behavior (Chaudhuri, 1999).Brand loyalty plays an important role in the success of a brand The higher thebrand creates the loyalty of consumers, the greater profit it brings for the company,which means, the brand has high value Thus, consumer loyalty to the brand is acomponent of brand equity

According to the Pareto rule, which is often applied in many areas, 20% ofcustomers will bring 80% of the profits for businesses Strong brands are alwaysidentified and guaranteed by these "fans." In addition, finding a new customer ismuch more expensive than maintaining an old customer This is especiallyimperative in a market where it is increasingly easy to switch to competitors'products For a loyal customer, the company also has a great benefit that thesecustomers will recommend and persuade relatives and friends to use the company's

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products In addition, brand loyalty will cause competitors to be discouraged inseeking to attract new customers because the cost they spend will be very large butthe effect is not high Consequently, loyalty is the last component of brand equity(Aaker, 1991; Keller, 1998).

2.2 MEASURING FACTORS AFFECTING THE BRAND EQUITY OF HAI

HA CONFECTIONERY JOINT STOCK COMPANY

Before proposing a research model for the topic, the author will give someforeign and domestic research models as a basis for building the closest and mostaccurate research model for brand equity of Hai Ha Confectionery Joint StockCompany

2.2.1 Foreign research:

a) Model of Aaker (1996)

Aaker (1996) built a brand equity model with 4 elements: (1) Brand awareness,(2) Brand associations, (3) Perceived quality, (4) Brand loyalty Aaker's theory ofbrand equity is considered to provide a useful foundation for the brand managementand development process, as well as the doctrine and model used by manyresearchers, executives and inherited until today

Figure 1 Brand equity model of Aaker

Source: David Aaker (1996)

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b) Model of Keller (1993)

The model was introduced in 1993 by Kevin Lane Keller, one of the mostfamous scholars in the world in the field of brand research and has received widesupport and application in branding strategy According to Keller (1993), “brandequity is a different effect of brand knowledge on consumers’ reaction to brandmarketing activities” From the results of this research, managers can use marketingtools to increase brand equity by increasing the brand image in the minds ofcustomers This research model has created more in-depth researches on brandequity and methods of measuring brand equity

Figure 2 Brand equity model of Keller

Source: Keller (1993)

c) Model of Eda Atilgan, Safak Aksoy and Serkan Akinci (2005)

The research “Determinants of the brand equity: A verification approach in thebeverage industry in Turkey” applied on brand equity model based on customersincluding four elements: brand loyalty, brand awareness, percived quality, brandassociation The study concluded that brand loyalty is the most influential factor forbrand equity, the remaining 3 factors including perceived quality, brand awarenessand brand associations do not have an important impact on brand equity However,

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comparing the pair of observations of the brand equity model shows a correlationbetween the aforementioned four factors.

Figure 3 Brand equity model of Eda Atilgan, Safak Aksoy and Serkan Akinci

Source: Eda Atilgan, Safak Aksoy and Serkan Akinci (2005)

2.2.2 Domestic research:

a) Model of Nguyen Dinh Tho & Nguyen Thi Mai Trang (2002)

In the topic "Researching factors affecting the brand equity and measuringthem in Vietnam's consumer goods market", the author Nguyen Dinh Tho &Nguyen Thi Mai Trang (2002) proposed the model including four factors: (1) Brandawareness (2) Brand passion, (3) Perceived quality, (4) Promotion attitude

The testing results of this model showed that the four components of brandequity were very closely related In particular, consumers’ passion for the brand wasmade up of brand loyalty and desire Brand awareness was the cause of brandpassion and perceived quality The promotion attitude affected the perceived qualityand brand awareness In addition, perceived quality had an impact on brand passion.Thus, perceived quality of consumers about the brand played a key role in creatingbrand equity The results of this model have become the basis for managers to planmore effective branding strategies for Vietnam market

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Figure 4 Brand equity model of Vietnam’s consumer goods market

Source: Nguyen Dinh Tho & Nguyen Thi Mai Trang (2002)

b) Model of Le Dang Lang (2014)

Research model on brand equity in the beverage industry implemented by LeDang Lang in 2014 including: brand awareness, brand association, perceivedquality and brand loyalty

The results showed that increased brand awareness can increase brandassociations and increased perceived quality will increase brand loyalty Thisfinding displayed a close relationship between the components of brand equity andexplained for the phenomenon of well-known brands that were often perceived astrusted brands and when the product was perceived as having a high brand quality,

it is likely that the loyalty to the brand is also raised

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Figure 5 Brand equity model of beverage industry

Source: Le Dang Lang (2014)

2.3 PROPOSED RESEARCH MODEL

To make a suitable research model for the topic, the author conducted a review

of the relevance of the reference model

Table 1 Factors affecting the brand equity in previous researches

Aaker (1996)

Keller (1993)

Eda Atilgan, Safak Aksoy and Serkan Akinci (2005)

Nguyen Dinh Tho &

Nguyen Thi Mai Trang (2002)

Le Dang Lang (2014)

Promotion Attitude X X

Source: Author’s summary

After making a statistical table and evaluating the models through the brandequity components of the model, the author began to analyze, evaluate and selectthe appropriate model to build a research model for the topic:

- There are many research models of brand equity based on customers in theworld today In which, Aaker's research model has been studied and verified inmany previous studies such as Yoo et al (2000) research in the field of technologyproducts (television, camcorder), Kim & Kim (2004) research in the restaurant field Aaker's brand equity model is one of the most accepted and comprehensivestudies The model proposes 4 factors affecting the brand equity: (1) brandawareness, (2) perceived quality, (3) brand associations, (4) brand loyalty

- As the theory presented, model of Keller (1993) includes many such elements This model has identified two factors affecting the brand equity: brandawareness and brand image However, these two factors include many otherfactors such as brand strength, brand companion, brand associations In which,branding includes many other sub-elements such as attributes, benefits,attitudes and in these sub-factors include many other sub-factors that make itdifficult to measure

sub Two models of Eda Atilgan, Safak Aksoy and Serkan Akinci (2005) and LeDang Lang (2014) are also based on Aaker's brand equity research model including

4 factors: brand awareness, brand associations, perceived quality and brand loyalty

- Regarding the model of Nguyen Dinh Tho & Nguyen Thi Mai Trang (2007)using the following factors: (1) Brand awareness, (2) Brand passion, (3) Perceivedquality, (4) Promotion attitude This is the basic model for managers to plan moreeffective branding strategies for Vietnam market

Based on relevant researches in the world as well as in the country before, Ihave selected four elements to form a model of factors affecting the brand equity ofHai Ha Confectionery Joint Stock Company as follows: (1) Brand awareness, (2)Brand associations, (3) Perceived quality, (4) Brand loyalty To clarify this model, I

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will analyze the factors mentioned in the proposed model and suggest thehypotheses for my topic.

Figure 6 Model of factors affecting the brand equity of Hai Ha Confectionery

Joint Stock Company

Source: David Aaker (1996)

2.3.1 Brand awareness

In this day and age, there is so much information and media, so creatingcustomer awareness to a brand is really necessary Aaker (1991) defined brandawareness as “the ability of the potential buyer to recognize andrecall that a brand is

a member of a certain product category” According to Keller (2003), “brandawareness requires consumers to be able to distinguish a word, an object or animage or what they can see” Consumers can identify brand in many differentbrands and in every situation Nguyen Dinh Tho introduces the concept of brandawareness, is “the ability of a consumer to identify and distinguish thecharacteristics of a brand in a set of brands available in the market” The higher thelevel of brand awareness is, the more familiar and reputable this brand is and themore chances that it will be chosen In other words, it affects consumers' buyingdecisions Therefore, the first hypothesis would be:

H1: Brand awareness has a significant positive effect on brand equity.

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2.3.2 Brand association

Brand association is defined as “anything linked in memory to a brand”(Aaker, 1991), “these are stored directly or indirectly in the minds of customers andare associated with the brand or brand equity” (Aperia, 2004) According to Keller(1993), “brand image is defined as brand awareness, reflected by brand associationsstored in the minds of customers.” “Brand associations can be created throughassociation with their respective attitudes, attributes and interests” (Keller, 1998)

“Brand associations can create value for the company and its customers bydistinguishing and positioning the brand as it can reflect products’ characteristics”(Jalilvand et al., 2011) and can encourage potential customers looking for productswith physical features or emotional links Therefore, “brand equity can be stronglysupported by the associations that consumers create with a brand, which contributes

to a specific brand image" (Yasin et al., 2012) In other words, high brand equitymeans that customers have strong positive associations with the brand From this,the second hypothesis is given as follows:

H2: Brand associations have a positive impact on brand equity.

2.3.3 Perceived quality

Perceived quality is defined as “customer’s perception of the overall quality orsuperiority of a product or service with respect to its intended purpose relative toalternatives'' (Aaker, 1991) Acccording to Farquhar (1989), “brand equity willdepend on perceived quality as a need to develop a positive brand assessment in theminds of customers” High-quality perceptions give customers a reason to buy abrand, allow the brand to differentiate itself from competitors, and it is a solid basisfor expanding its market share by using the same brand for a variety of products.Therefore, perceived quality is an imperative aspect of brand equity Based on thedefinition and role of perceived quality, the third hypothesis is given as follows:

H3: Perceived quality has a positive impact on brand equity.

2.3.4 Brand loyalty

“Brand loyalty is described as a reaction behavior and a function of thepsychological process” (Jacoby & Kyner, 1973) It includes several levels ofcommitment to brand quality, which is a function of positive attitudes and repetitivepurchases Brand loyalty is a valuable asset that is expressed by trust, intention ofbuying and introduction to others about the product or service “It indicates the

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tendency of consumers to buy and use a particular brand and repeat this behavior”(Chaudhuri, 1999) This is the core element of brand equity Brand loyalty is ameasure of customer engagement with the brand “The higher the brand loyalty is,the less customers are likely to switch to another brand just because of the price andloyal customers also buy more often” (Bowen & Shoemaker, 1998) In addition,

“loyal customers bring a great benefit to the company by introducing their products

to other customers” (Assael, 1995) Based on the importance of brand loyalty, thefourth hypothesis is proposed as follows:

H4: Brand loyalty has a significant positive effect on brand equity.

2.4 DIMENSIONS AND CONSTRUCTS TO MEASURE BRAND EQUITY

I have an opinion about this brand Aaker (1996)

In-depth interview with

Ms Bùi Thị Thanh

Manager of Hai Ha Confectionery Joint Stock Company

I know what this brand stands for

I can recognize products of thisbrand

I can identify this brand and theirproducts among other competitors

Brand

Associations

Perceived value+ This brand provides good value forthe money

+ There are reasons to buy this brandover

Aaker (1996)

Secondary data

Personality+ This brand has a personality + This brand is interesting

+ I have a clear image of the type ofperson who would use the brand

this brand has high quality

In comparison to alternative brands,this brand has consistent quality

Brand

Loyalty

In-depth interview with

Ms Bùi Thị Thanh

Manager of Hai Ha Confectionery Joint Stock Company

Satisfaction/loyalty (among thosewho have used the brand)

+ I was delighted with the product orservice during my last use experience+ I would buy the brand on the nextopportunity

+ The brand is the only that I buy anduse

+ I would recommend the product orservice to others

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CHAPTER 3 RESEARCH METHODOLOGY 3.1 RESEARCH PROCESS

Figure 7 Research process

Source: Author’s research

3.2 DATA COLLECTION

Based on two sources which are secondary data and primary data.”

3.2.1 The secondary data

Data collected via the internet about research topics, in particular information,articles and previous researches both domestically and internationally related tobrand equity and factors affecting it to provide a theoretical framework

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3.2.2 The primary data

Key data will be collected by in-depth interviews and customer surveys whohave been using the products of Hai Ha Confectionery Joint Stock Company Thequestionnaire is organized based on Likert's 5-point scale Respondents will beasked to rate the brand equity

3.2.2.1 In-depth interview

Objectives: The in-depth interviews were used to collect opinion of managers

who participate in marketing and branding and have widely acknowledged abouttheir speciality, brand and company and directly control the employees

Interview method: The author interview directly face-to-face with the

respondents at their workplace

Interview structure: The interviews were divided into three parts, included:

general information of the respondents, their opinions about the current situation ofrecruitment and selection process in Hai Ha Confectionery Joint Stock Companyand their evaluation about the problem, makes some recommendations to enhancebrand equity of Hai Ha Confectionery Joint Stock Company

Interviewees are:

+ Ms Bùi Thị Thanh Hương, General Manager of Hai Ha Confectionery JointStock Company

+ Mr Nguyễn Thành Trung, Manager of Market Planning Department of Hai

Ha Confectionery Joint Stock Company

3.2.2.2 Questionnaire survey

Surveys via internet with google form tool The target audience of online dataare people who have been using the products of Hai Ha Confectionery Joint StockCompany, who are living and working in Hanoi

Survey respondents: People who have been using the products of Hai Ha

Company

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Sample size: 135 questionnaires had been distributed to current customers of

Hai Ha Confectionery Joint Stock Company through printed forms Only 128 validquestionnaires were collected 7 invalid questionnaires were eliminated because therespondents just rated all the questions with 3 or 5 mark which is not appropriateand logical or haven’t used products of Hai Ha Confectionery before

Questionnaire design: Questionnaire evaluates brand equity to customers

using the product

Structure of questionnaire

There are three main parts:

Part 1: Refinement questions to select customers who have been using theproducts of Hai Ha Confectionery Company for further survey

Part 2: Questions about factors affecting the brand equity of Hai HaConfectionery Company

Part 3: Question to collect some basic information about customers

Scale design

As presented in chapter 2, the author identifies factors affecting the brandequity based on customers according to Aaker's research model including 4components: (1) Brand Awareness, (2) Brand associations, (3) Perceived Qualityand (4) Brand Loyalty with a total of 18 observed variables

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I know about Hai Ha Confectionery brand BA1

I can identify Hai Ha Confectionery brand and their

I can recognize Hai Ha Confectionery’s products BA3

I can recognize the logo of Hai Ha Confectionery

Hai Ha confectionery brand is constantly innovating

Products of Hai Ha Confectionery is worth of money AA4

Hai Ha Confectionery brand is very prestigious, is

I want to use the products of the Hai Haconfectionery brand instead of other brands even ifthey have similar products and the same quality

BE2Chuyên đề thực tập Tốt nghiệp

Distribution of questionnaire:

The author is present at the company's confectionery counters and delivered to customers everyday of the week Besides, issuing online surveys incustomer groups using Facebook, in the group of smart consumers,

hand-3.3 DATA ANALYSIS

To understand the factors affecting the brand equity of Hai Ha ConfectioneryCompany, the scale of the influencing factors is tested through Cronbach's Alphareliability factor, EFA discovery factor analysis, and Multiple linear regressionanalysis through SPSS statistical processing software

- Cronbach's Alpha tool is used to verify the reliability of each scale(Reliability Analysis) If any variable whose existence reduces Cronbach Alpha,that variable will be removed to increase Cronbach's Alpha, the remaining variablesexplain more clearly the nature of that general concept

- Analyzing exploratory factor EFA (Exploratory Factor Analysis) is used tocollapse and summarize data In the study, the collection of variables is quite large,but the variables are related, so they include them into groups of related variables toconsider and present in the form of a few basic factors affecting the brand equity.The factor extraction method used is Principal Pomponent with Varimax vortex andstops when extracting elements with Eigenvalue of 1 Factor loading factors lessthan 0.50 will be disqualified The scale is acceptable when the Cumulative ofVariance is equal to or greater than 50%

- Then, the scale is put into multiple linear regression analysis with the input isthe number of factors that have been determined to consider the impact of thesefactors on brand equity The Independent-Samples T-test and One-way ANOVAtest are used to consider the impact of qualitative variables on the factors that need

to be improved to enhance brand equity based on customers

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CHAPTER 4 FACTORS AFFECTING THE BRAND EQUITY OF HAI HA

CONFECTIONERY JOINT STOCK COMPANY

4.1 OVERVIEW OF HAI HA CONFECTIONERY JOINT STOCK

Web address: www.haihaco.com.vn

4.1.1 Development history of the company

“Hai Ha Confectionery Joint Stock Company, whose international name isHaiha Confectionery Joint-Stock Company (HAIHACO) The company wasestablished on December 25th, 1960, underwent 58 years of striving and growing,from a sauce factory to become one of the largest and oldest confectioneryenterprises in Vietnam with more than 1,300 employees, 6 departments, 5 factoriesand 3 branches in Bac Ninh, Viet Tri, Nam Dinh, Ho Chi Minh City and Da NangCity

In January 2004: The company was transformed into a joint stock companywith an initial charter capital of VND 36.5 billion, of which 51% is state capital and49% is capital of employee

On December 9th, 2004: The Ministry of Industry (now the Ministry ofIndustry and Trade) issued a decision to transfer the State's capital at the Company

to the Vietnam Tobacco Corporation for management

On November 8th, 2007: The company was approved to list shares at HanoiStock Exchange of the Director of Hanoi Securities Trading Center and officiallytraded from 20th November 2007.”

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In July 2016: The company completed the issuance of shares to increase itscharter capital to 164.25 billion VND.

In 2017: The Company successfully relocated the entire production area fromHanoi to Bac Ninh In the process of relocation, quality, progress and labor safetywere ensured, installing 2 new production lines Currently, the new factory hasproduced stably and efficiently: increased output and improved quality In March

2017, the company had a major change in the organizational model implemented bythe Vietnam Tobacco Corporation to divest all state capital and transfer it to a JointStock Company with 100% private capital

In 2018, the Company reached the revenue of VND 1,000 billion, marking anew breakthrough and growing strongly on all indicators of profit, output, exportsales and average income of employees

4.1.2 The organizational structure of the company

General Meeting

of Shareholders

Board of Management

Board of Directors

Internal control

Department Market Planning Department

Financial Accounting Department

Materials Department DepartmentTechnical Office

Hai Ha Confectionery Factory 2

Hai Ha Confectionery Factory 1

Hai Ha Confectionery Factory

Southern branch

Central

branch

Supervisory Board

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Company Officers

- General Meeting of Shareholders: is the highest authority of the company,

deciding all important issues of the company according to the Enterprise Law andthe Company's Charter The General Meeting of Shareholders is the agency thatapproves the long-term investment policy in the development of the company,deciding the capital structure, electing the regulatory authority and operating themanufacturing business of the company

- Board of Management: is the regulatory authority of the company with full

powers to perform the rights and obligations that are not under the authority of theGeneral Meeting of Shareholders, orientating of existing policies and development

to implement the decisions of the General Meeting of Shareholders through makingpolicy and resolution of actions from time to time in accordance with the productionand business situation of the company

- Supervisory Board: elected by the General Meeting of Shareholders, on

behalf of shareholders to control all business activities, management andadministration of the company

- Executive Board: appointed by the Board of Directors, including General

Director, Deputy General Director, Chief Accountant The General Director isresponsible to the Board of Directors and decides all matters relating to the dailyactivities of the Company The Deputy General Director and the Chief Accountantare appointed by the Board of Directors according to the proposal of the GeneralDirector

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- Departments in the organizational structure of the company:

+ Office: Arrange and distribute labor appropriately, develop a plan for

managers and scientific and technical staff throughout the company, build a salary,bonus, insurance regime, to be in charge of construction activities, administration,cafeteria, healthcare and driving activities

+ Financial Accounting Department: collecting, processing and providing

information about finance - accounting for the General Director and the Board ofDirectors of the Company to serve the management better

+ Market Planning Department: planning production and business,

approaching the market, balancing the plan and implementation, organizingmarketing activities from production to consumption, managing and developingHaiha Bakery store system, researching and developing new investment projectsand new product programs

+ Materials Department: has the function of forecasting supplies demand,

balancing procurement plan, signing material procurement contract and monitoringcontract performance

+ Technical Department: has the function of researching and experimenting

new products, ensuring the technical of the production line, constructing materialconsumption level for each product type, maintaining factory equipment, materialfacilities of the company Having task of checking product quality, monitoring theimplementation of technical regulations on product manufacture, ensuring allpositions of product quality, verifying causes and remedies for unqualified products

4.1.3 Vision – mission and the core values of the company

4.1.3.1 Vision – mission

“- Developing and improving HAIHACO brand, associating with jointventures in domestic and foreign enterprises in order to bring the company's brand

to a strong domestic and regional brand

- Businesses need to continue promoting development to not only maintaintheir position but also to target the market for high-income earners

- HAIHACO aims to invest in renewing equipment, developing new productlines to meet the needs of the market and in accordance with the needs oftechnological innovation of the company, striving to maintain its position as one ofthe leading enterprises of Vietnam's confectionery industry

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- Strengthening the management system, developing human resources,attracting a skilled labor force, constantly improving working conditions andwelfare regimes for employees.”

4.1.3.2 Core values

“- People are an invaluable source and strength of HAIHACO

- Solidarity, cooperation in work, high discipline, industrial style are the corevalue, tradition and culture of HAIHACO

- The best quality of products and services constantly improved, meetingcustomer requirements

- Profit is the vital requirement of the existence and growth of HAIHACO

- Social responsibility is the motto of HAIHACO.”

4.1.4 Operating areas of the company

The main production and business activities include:

- Producing and trading in confectionery and food processing

- Import and export: raw materials, machinery, specialized products, consumergoods and other goods

- Investing in construction, leasing offices, houses, commercial centers

- Running other industries that are not prohibited by law.”

Table 4 Business situation of Hai Ha Company over a period of 3 years

(2016 – 2018)

ST

T

2 Profit before tax Billion VND 42,025 42,257 53,21

3 Equity of the owner Billion VND 327,25 352,3 392,7

VND/person/month

7,603 9,12 10,2

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9 Dividend % 15 0

Source: Financial Accounting Department

In 2018, the Company has not advanced the dividend to shareholders yet Thedividend for 2018 will be decided by the 2019 Annual General Meeting ofShareholders

4.1.5 Strengths and weaknesses of the company

4.1.5.1 Strengths of HAIHACO

- HAIHACO owns one of the strongest brands in Vietnam, Hai HaConfectionery products have been voted by consumers as "High-quality Vietnamesegoods" for many consecutive years from 1996 to the present Most recently,HAIHACO was voted into the list of 100 strong brands of Vietnam

- HAIHACO brand has been registered for industrial protection in Vietnam andsome Asian countries such as China, Laos, Cambodia, Malaysia, Russia,Singapore

- HAIHACO's products are very rich and diverse, the quality is uniform tomeet the requirements of customers Many products dominate the market since itsinception, have a characteristic delicious taste In particular, HAIHACO is assessed

to have advantages in producing candies and muffins

- The relationship with domestic and foreign raw material manufacturersensures to stabilize sources of raw materials and reduce raw material consumptioncosts As a state-owned enterprise under the management of the Ministry ofIndustry, which has been equitized, so when compared to other businesses in theconfectionery industry, the capital size of the company is relatively large

4.1.5.2 Weaknesses of HAIHACO

a) Weak brand equity

- Currently, the company's capital is mainly commercial loans This hasreduced the initiative in implementing the company's marketing strategy

- The absence of an independent Marketing Department that still has to operatedepending on the Market Planning Department which has greatly influenced thebrand development, new products, market demand survey, of Hai Haconfectionery joint stock company

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