G1_00309 BÁO CÁO DỰ ÁN CAPSTONE CHIẾN LƯỢC THƯƠNG HIỆU CÁ TRÊ TẠI THỊ TRƯỜNG MỸ CỦA CÔNG TY VINAFISH CAPSTONE PROJECT REPORT STRATEGIES OF CATFISH BRAND IN US MARKET FOR VINAFISH COMPANY

G1_00309 BÁO CÁO DỰ ÁN CAPSTONE CHIẾN LƯỢC THƯƠNG HIỆU CÁ TRÊ TẠI THỊ TRƯỜNG MỸ CỦA CÔNG TY VINAFISH CAPSTONE PROJECT REPORT STRATEGIES OF CATFISH BRAND IN US MARKET FOR VINAFISH COMPANY

I PHAM HUU NHAN

2 TRINH HOAI NHON

3 BUI DUC QUY

4 DANG VAN SANG

5 MAI NGOC DINH

Class: GaMBA.C0410

Ho Chi Minh City, April, 2011

G Strategic Management Group 8 C0410 RIGGS:

II 1 Concepts of strategic management 7

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C1 (G09 Strategic Management Group § C0410

Theories and statistics demonstrated in the Dissertation is our work and partly referenced from textbooks, syllabuses, readings, newspapers and magazines

in both English and Vietnames Facts of Vinafish Company are provided by the Company itself Facts of competitors like Hung Vuong Company, Vinh Hoang Electricity Company are collected from announcements officially published on their

websites

Based on these sources of information and the approved outline, our Group has accomplished this Dissertation The business strategies especially brand development strategies are developed based on the theories learned as well as on expertise and experiences of the group members

Also, through this Dissertation, the group members have been able to accumulate valuable experiences in developing a pratical corporate strategy

G R GGS) Strategic Management — Group 8 C0410

We firstly would like te extend our thanks to the management and lecturers

of GRIGGS University for the enthusiasm and valuable knowiedge they nave given

us throughout the course

Especially, we would also like to extend our sincere appreciation to Dr Soren, Dr Le Van Bay for spending their time guiding us through this Dissertation

We sincerely thank Vinafish Company for providing us with valuable information and figures used for the Dissertation

In addition, we would like to thank the teaching assistances, class assistances and our friends who have supported us during our study

Lastly we would like to thank the Managements where we are working and our family for their support, without which we would not be able to complete this course

With our deep and sincere thanks,

Group 8 — Class C0410

( I G9 Strategic Management Group 8 C0410

With revenue accounting for between 3.5% and 4% of GDP, and being the means of living for millions of laborers, Vietnam's fishery products exporis are yradually reaching the world market Frora 2006 to 2011, aquaculture is one of the industries that have the highest growth value, at about 15% In 2010, Vietnam's exporting value exceeded US$ 5 billion In 2011, aquaculture exporting value has reached over US$ 6 billion, demonstrating a 20% increase in exporting value compared with that of 2010

Suiting with the soil and climate of the Mekong Delta, catfish has become one of the main exported fishery products Catfish products currently account for about 28% to 30% of the total fishery exporting values and are exported to 136 countries around the world In the times to come, Vietnam's catfish export is evaluated to be very potential, which opens up new opportunities for fish enterprises

Nevertheless, besides achievements, catfish processing and exporting enterprises, as usually, will confront great challenges generated both objectively and subjectively They may include instability of input material created by pollution, diseases, instability of labor created by labor competition, increased barriers for products exporting to overseas markets especially US and EU, competition among enterprises within the industry, risks from local and international macro factors like economy, politics, etc

Being a reputed catfish exporting enterprise in Vietnam, Vinafish Company

is facing huge opportunities as well as threats in catfish export especially to US

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_—— ee eee

mat: {ptr#ossWySECbáVtere&poempcttion today 1t 1s essential for the company

to build and develop Vinafish brand globally as a strategy

- Qbjectives of the study and applicability

Based on knowledge of Strategic management and Marketing management, our group has analyzed and evaluate the internal and external factors and the competition environment of Vinafish Company Based on such analysis, we have built strategies for brand development and business strategic solution in order to vradually build Vinafish value in US market

- Methodologies

The group researches qualitatively and quantitatively based on figures of business and financial performance provided by Vinafish; on market research data, macroeconomics evaluations and expectations, forecasts on the potential of aquaculture industry by experts and by domestic and international organizations Besides, we also use figures published on the websites of organizations like Bureau

of Statistics, Bureau of Customs, the Association of Vietnamese aquaculture

- The dissertation consists of 3 chapters:

" Chapter 1: Theoretical framework in Strategic management, Marketing management applied to the dissertation

* Chapter 2: Analysis of the business operation of Vinafish Joint Stock Company

se Chuong 3: Development of brand building strategy and business

solutions for Vinafish in US market

ON at csi Strategic Management — Group § C0410 GRIGG:

Those solutions have been formulated and developed during the history of the mankind, forming concepts of strategic management Studies from the world’s renowned enterprises have led to different concepts of strategy

- According to Fred R David (2003): Strategy is the means to achieve long- term objectives

- According to Alfred Chandler, Harvard University: Business strategy is the determination of basic and long-term objectives of the enterprises, at the same time the selection of methods or processes and allocation of necessary resources in order

to achieve those objectives

- According to Michael E Porter: Strategy is the selection of what needs to

be done and what needs not, what serves the needs of a group of customers rather than all people

In general, despite the differences in the way they are expressed, the concepts of business strategy all concern about the determination of and putting forward solutions as well as stages to achieve short- and long-term objectives set

by the organization

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| LAPP Ross niatrataais managsment

Strategic management is the process of studying current environment and

- Business strategy helps managers foresee risks and unexpected events that may happen in the present as well as the future Thus, depending on their potentials, enterprises will be able to actively deal with such unexpected conditions

- Business strategy helps managers utilize available resources effectively and allocate them reasonably

- Business strategy helps to co-ordinate different functions of the organization for the achievement of shared organizational goals

1.1.1.3 Importance of strategic management

- It helps managers play active roles in responding to environmental changes For example, by maximizing opportunities and minimizing threats, managers can bring out solutions adaptable with the environment and thus achieve organizational goals

- It helps managers to better use resources such as human, finance, etc., leading to success and high profits

- It helps managers match short-term development with long-term vision and concentrate on both productivity and effectiveness

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1.1 2p Rrecsns ofeelanning and implementing strategies

Strategic management consists of three main stages, which are inter-related and supplementary for each other:

1.1.2.1 Stage 1: Strategy formulation

Strategy formulation includes developing a vision and mission, identifying

an organization’s internal strengths and weaknesses, determining external opportunities and threats, establishing long-term objectives, generating alternative Strategies, and choosing particular strategies to pursue The analysis of business condition needs to be based on facts or reliable information as this is the first and most important stage that can affect the success or failure of strategy

- Studies: studies can be conducted to determine strength and weakness in functional operations Internal factors can be determined by calculating rations, measuring performances and comparing the results with previous time or with average rate of the industry Other investigations can be designed and implemented

to examine internal conditions include employee morale, manufacturing efficiency, advertising effectiveness, and customer loyalty

- Integrating intuition and analysis: There are techniques of strategic management that allows strategists to combine intuition and analysis to put forth and select alternative strategies such as Boston Consulting Group (BCG) matrix, Strategic Position & Action Evaluation (SPACE) matrix

- Decision making: Decisions in the stage of strategy formulating will connect organization with specific products, markets, resources and technologies in

a certain period of time Strategic decisions have long-term effect, either better or worse, on the organization Strategists need to have a good vision to understand the empowerment of decision making

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- Setting annual objectives;

- Devising policies;

- Allocating resources

1.1.2.3 Stage 3: Strategy evaluation

It is the process of evaluating and controlling the results, looking for solutions to match the strategy with environment condition It is the review of Strategy implementation through each stage, analysis of what was right and what was wrong, what was suitable and what was not in order to have timely adjustments The investigation needs to be done on a regular and continuous basis including the following main activities:

- Examining factors which are the bases for current strategies

- Measuring performance

- Taking corrective actions

These three stages reflect the Plan — Do — Check circle in modern management, which is being applied largely in business management nowadays

The process of strategic management can be studied and applied using models Each model represents a certain kind of process Model 1.1 demonstrates a comprehensive management model which is widely accepted The model is not a guarantee for success, however it represents a clear and practical method in formulating, implementing and evaluating strategies

10

:

Defining

There are different kinds of strategies within an enterprise, which, depending

on approaching levels, could be differentiated into corporate, divisional, and

functional levels

1.1.3.1 Corporate strategies

Strategies at corporate level are those directed towards overall objectives of the organization as a whole Corporate strategies often aim at basic and long-term objectives There are different corporate strategies with different names According

to Fred R David, there are fourteen (14) kinds of basic strategies at the corporate level classified into four groups as follows:

Strategic Mlanagement — Group 8 C0410

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PDI€QWWsd@r Machado, Porter there are three general competition strategies at division level:

- Cost leading (lowest and best price)

Strategies at functional level are strategies of functions such as marketing,

finance, human resources, etc

1.1.4 Development of business strategies for enterprises

1.1.4.1 Analyzing external environment

External environment is a system of complex factors including opportunities

as well as threats that may, of different levels, affect business activities Enterprises are almost impossible to respond successfully to environment changes no matter how rich of their resources Therefore, in analyzing external environment, managers would like to develop a list of both opportunities that may benefit the organization and threats which the organization needs to prevent or avoid External environment consist of general environment and industry environment

1.1.4.2 General environment

Factors included in general environment are the social aspects that may have influence on an industry and sector companies

Griccd Strategic Management Group 8 C0410

b) Sociocultural

Sociocultural environment consists of factors like opinions on ethics, ways of living, manners and customs, society concerns and priorities, awareness and education level

Cc) Politics and legislation

These include point-of-views and policies of the Party and laws of the State There is also a need to have a thorough understanding of the Government's diplomatic and political trends as well as internal and external political changes

a Strategic Management Group 8 C0410

natural resources

e) Technology

Technology may bring about opportunities or threats for enterprises in the Strategic management process Technological advances may create new markets, which make products and services out-of-dated This environment has deeply impact on manufacturers of industries such as telecommunications, information technology, etc

f) Globalization

In the global environment, social and economic changes are created by the

Increase in associations and exchanges among countries, organizations or individuals in regards of culture, economy, etc These lead to important political events, main global markets, newly industrialized countries, differences among

cultural and institutional characteristics

1.1.4.3 Industry environment

Each industry has its own specific characteristics, and organizations need to study about those of their industry Also they need to analyze industry factors and study about other organizations of the same industry that may have immediate impacts on their own They then need to define opportunities and threats and to develop appropriate strategies Industry environment consists of the following

factors:

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Suppliers _ Competitors THÊ

nung Bargaining power of

- Competitors’ objectives and expectation

- Competitors’ ability and potential

- Competitors’ strength and weakness

- Competitors’ strategies and tactics

- only a small number of suppliers selling to a large number of buyers in the industry;

Grigcs) Strategic Management — Group 8 CO410

e) Substitutions

Substitutions reduce the potential profit of the sector by imposing a ceiling yet profitable rate for companies in the sector

1.1.4.4 Analyzing internal environment

Analyzing an organization’s internal environment helps it realize its Strengths and weaknesses in comparison with competitors, at the same help managers capture competitive advantages in certain periods of time

The functional internal factors include human resources, finance, marketing, management, information system

a) Human resources

In the continuously changing business environment as today, an organization’s human resources have a very important role in the implementation of Strategies, leading to the success or failure of that organization Strategies will not

be successful without competent people being capable to execute them, even when Strategies are soundly, promisingly, and feasibly set

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b) PIYPaANGfn pressor Free Version

For often, financial condition is considered as a method that can best assess

an Organization's competitive condition and a most attractive element to investors For an efficient development of strategies, it 1s necessary that financial strengths and weaknesses of an enterprise be defined, which can be expressed through some basic financial indicators such as liquidity, asset structure, capital structure, profitability

c) Marketing

Marketing research is to identify market opportunities, market segmentation, target market selection, and market positioning, at the same time to analyze customers and other related factors in order to formulate customer-driven and competition marketing strategies

- Organizing include managerial activities that build up the relationship structure between rights and responsibilities Specifically it includes organizational design, job specialization, job descriptions, work details, extended control, unified commands, coordination and arrangements, job design and job analysis

- Leading includes efforts to orient people activities, specifically leadership, communications, working groups activity changes, delegation, work quality improvement job_ satisfaction, needs satisfaction, organizational changes, employees’ and managers’ morale

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PDF Contras sridatyd tg gnanagerial activities designed to make sure the results are agreeable and consistent with desired outcome Main activities include: quality control, financial control sales inventory, expenses, change analysis rewards and punishment

e) Information system

Information ts the mean through which all business functions are connected with each other It 1s the basis for all managerial decisions and is the foundation of all organizations Information manifests major competitive disadvantages or advantages A comprehensive analysis of the strengths and weaknesses of the internal information system is an important part of the internal control process Information system is an essential source of strategy, which can help organizations monitor environmental changes, realize competitive threats and assist in implementing, evaluating and controlling strategies

1.1.5 Strategy-planning and strategy-selecting tools

Strategies can be developed using different kinds of matrix This section of the thesis would only describe the meaningful matrixes and their purposes The calculations to formulate those matrixes will be discussed in details in Chapter 3 when planning organizational strategies

1.1.5.1 External Factor Evaluation (EFE) Matrix

The development of EFE matrix helps summarize and quantify the impacts

of external environments, including opportunites and threats, on the organization

a Strategic Management — Group 8 C0410

Figure 1.4: External Factor Evaluation (EFE) Matrix

1.1.5.2 Internal Factor Evaluation (IFE) Matrix

The development of IFE matrix helps to summarize and evaluate strengths and weaknesses of each operational function, which have certain impacts on the organization

List of Internal

Figure 1.5: Internal Factor Evaluation (IFE) Matrix

1.1.5.3 Internal — External (IE) Matrix

In the IE matrix, organizational functions are put into a figure as demonstrated

below:

20

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- Total weighted score of IFE matrix

- Total weighted score of EFE matrix

The IE matrix consits of the following implications:

- Grow and build (cells LH, IV): appropriate strategies include intensive Strategies (market penetration, market development, product development) and integration strategies (backward integration, forward integration, and horizontal integration)

- Hold and maintain (cells III, V VII): appropriate strategies include market penetration and product development

- Harvest and exit (cells VI VIII, IX): appropriate strategies include downsize, liquidation and remove ineffective functions

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1.1.Bifịlmase,cembpFtfep tin

Image competition matrix helps an organization identify its competitors together with their advantages and shortcomings, then to develop appropriate business strategies

This matrix consists of all internal and external factors that have vital impact

on the success of organizations Using this matrix, competitors are also studied and their total weighted scores are calculated These scores are then compared with that

of the Model Competitor, through which information is gained to develop business Strategies for the organization

Competitor

Rate | Weighted | Rate | Weighted | Rate | Weighted

The SWOT matrix allows us to evaluate the internal strengths and

weaknesses of the organization as well as opportunities and threats in the external environment Business strategies are developed based on such information of the internal and external environment of the organization The SWOT matrix is

demonstrated in Figure 1.8

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PDF Compressor Free VajgipORTUNITY (O) THREAT (T)

S-O Combination S-T Combination STRENGTH (S) Promoting internal Promoting internal

strengths to take strengths to avoid external advantage of opportunities — threats

WEAKNESS (W) W-O Combination W-T Combination

Overcoming internal Overcoming internal weaknesses to take weaknesses to avoid advantage of opportunities external threats Figure 1.8 SWOT Matrix

1.1.5.6 The Strategic Position and Action Evaluation (SPACE) Matrix

The SPACE matrix is a management tool used to analyze and define which Strategies an organization should deployed

The SPACE matrix is broken down into four quadrants where each quadrant suggests a different type of strategy:

- Aggressive

- Conservative

- Defensive

- Competitive

On the two axises of the SPACE matrix are four dimensions that are essential for

deciding overall strategy:

Financial strength (FS)

- Competitive advantage (CA)

Environmental stability (ES)

Industry strength (IS)

Gricos) Strategic Management — Group 8 C0410

1.1.5.7 Quantitative Strategic Planning Matrix (QSPM)

The QSPM serves the assessment and ranking of alternative strategies, based

on which the best strategies could be selected This matrix uses inputs from all other matrix types including IFE, EFE, image competition, SWOT, etc

Advantages of the QSPM are that it enables users to integrate internal and external factors into the decision making process or to research different strategy groups continuously and concurrently without limiting number of strategies being

evaluated

On the other hand, there are also disadvantages First, performing QSPM requires intuitive judgment as well as experiences Besides, discussions among managers and participants in the process of analysis and strategy selection may generate different opinions

PDF Compressor Free [Version Alternative strategies

Strategy | Strategy 2 Strategy 3

1.1.6 Lessons gained in choosing business strategies

Figure 1.10: Strategic matrix

The development of an enterprise’s business strategy 1s not an uncomplicated task as it depends on different factors of the past, the present and the future forecast

It also depends on industry and business sector During the process of researching and analyzing business strategy development, some lessons have been learned about developing business strategies:

- First and foremost, there needs to be an appropriate process for developing business strategy

PDr ©btWlssoftvtt Ѐr€cfIigsponding to internal business condition and

external environmental factors

- Information needs to be collected and analyzed to define organization's strengths and weaknesses

- Organization’s opportunities and threats on the market need to be

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2 IppRrend And Qoinniae verpen overview

1.2.1 Brand and trademark

1.2.1.1 Concept of trademark:

Trademark 1s a concept of legislation and 1s a tangible asset of a business In Enterprises operating on the market are required to register their trademarks with local and international authorities through which they will be legitimated on paper

In accordance with Vietnamese law, the concept of trademark could be

understood as below:

Trademark insists signs that are used to distinguish products and services of the same kind but from different manufacturers Trademarks could be words, images or combination of the two factors and are illustrated by different ways

(Article 785 of Civil Law)

To create a trademark, enterprises need to consider carefully based on the Strategis Enterprises will be unable to create their own trademarks without a strategy being developed

Initially, enterprises must evaluate the current situation and future development plan of a brand Then, they consider all the factors of the products/ services that would be conveyed through the trademark

1.2.1.2 Brand concepts:

Brand 1s the sum of material, aesthetic, proportional and emotional elements

of a product or a product line, name, logo and image, which through time establishes its own position in consumer’s mind

Researches show that brand value is a commercial concept, an intangible asset of a business Brand existing in consumer's mind could generate consumer loyalty regarding consuming the products/services It is a time taking and effort evoking process that enterprises need in order to be accepted by consumers

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PDIGDthpieWesrte-e'eEPiton of quality and trust from customers as well as establishes enterprise's image on the market It can be said that brand 1s a business commitment, a pledge of business reputation between enterprises and customers

The differences between trademark and brand are briefly summarized in the

table below:

Trademark is a concept of legislation, a

| tangible asset of a business

Brand

4+— —-—

|Brand is a commercial concept, an

_ intangible asset and the soul of a _ business

Established by enterprise and accepted

as well as trusted by consumer

Brand is an intangible value which generates the ability of making profit of

an enterprise Products of the same kind

variety of prices

may have similar functions but are sold at

Brand does not convey the differentiation in quality, design or function of a product Brand mainly focuses on consumer's psychology It could be about the lifestyle or social class of consumers Those psychological factors play an important role in deciding the price of product

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PDF AAPM Praadeqonere defined by researchers as follows:

- Brand value is the combination of the relationships and attitudes of customers and distributors towards a brand Brand value allows the company to achieve higher profit and revenue from products as compared to the non-branded companies

(Marketing Science Institute)

- Brand value is a collection of intangible assets

Brand value ts a set of intangible assets associated with brand’s name and icon It may increase or decrease the value of product or service to the company or its customers The main components of brand value include: (1) brand identification, (11) customer loyalty, (111) perceived quality, and (iv) brand relations

(David Aker, University of California at Berkeley)

- Brand value includes brand advantages and values Brand advantages come from the combination of relationships with attitude of customers and distributors Brand value provides a brand with dominant and sustainable competitive advantages It is the financial result of the management capacity in promoting the brand advantages through strategic and tactical activities in order to achieve higher profit and fewer risks in present and the future

(Raj Svivastava, University of Texas & Allan Shocker, University of Minnesota) b) Elements of brand value

- Brand awareness: illustrates the advantage of brand’s existence in consumer's mind Brand awareness is represented through the amount of information about the brand that consumer receive Brand awareness may lead to positive impression and attitude toward the product It helps attracting new customers, expanding market share, reinforcing interest and understanding about the

brand

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to consume enterprise's product; an important factor that make the product different from the others That perception is one of decisive factors that ensure the price stability It also generates more chance to expand the brand

- Customer loyalty is a considerable factor when it comes to brand value evaluation It has significant impacts on communication and advertising cost, which helps enterprises with strategies of brand establishment Enterprises need to raise their costumer’s loyalty in order to maintain and consolidate their market share It is the element that reinforces customer’s awareness about brand reputation and enhances the competitiveness of enterprises on the market

- Customer’s association with the brand is one of the most important factors

of brand value The association could be the feeling about product’s features, a personal image or a certain symbol That association creates an unforgettable impression that encourages customer to link the use of product with tangible benefits and intangible feelings That would generate positive attitude and consuming style as well as reinforce brand awareness and brand loyalty All of above factors contribute to building a solid brand

1.2.1.4 Brand’s functions

Brand plays a vital role in market segmentation Products are manufactured with certain functions and image that suite the need and taste of certain groups of customers Therefore, enterprises need to make their products different from the others’ in order to maintain and development customers

Today, the development of production, communication and intense competition has created conditions for consumers to have more options to choose and bargain on the market The enterprises may lose their key role in the

30

a Strategic Management — Group 8 CO410

So, enterprises take advantage of brand to shift their passive position into active

- To consumer: distinguish products/services, create personal value, establish perception of safety, and protect consumer’s benefits

- To enterprises: a commitment, a market segmentation tool, create commercial profit, attract investment, an intangible property, a competition advantage, legal status of the owner

1.2.1.5 Branding process

Branding process of a product on the market stems from the product’s trademark and creates the differences of the product from the other merchandises of

the same kind

Branding process in the market economy is the existence and acceptance of product, the establishment of the link between product and manufacturer’s brand Through the existence of product cycles, through the connection between consumers and products, product brand will be formed and make a bold impression

in public Thank to that, when a product is launched it inherits that good impression from the brand and has more competition advantage

Branding process is a confrontational course with many challenges and difficulties Enterprises need to consider the stages in the product cycle and the decrease in customer loyalty Furthermore, enterprises must pay attention on the rapid increase of competition, the difficulty of differentiation, the binding terms of distribution system, communication In addition, they have to face financial issues

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The implementation of product positioning is based on the reasons for customer's product selection and the target customer of product Those reasons could be certain benefits that customers demand for; or it is just because some outstanding features of the product satisfy the taste of some groups of people in society

Besides, brand positioning needs to consider the ability and potential of the enterprise’s competitors Enterprises need to analyze their competing brands on the market

1.2.2 Brand Strategy overview

1.2.2.1 Concept of Brand Strategy

Brand strategy is strategy with long-term goal to promote and expand the influence of the brand values in the market Brand strategy has impacts on all activities from managing, manufacturing to marketing, communication and distribution through identifying objectives, commitments and differences of an enterprise

a) Product - Brand Strategy

Product-brand strategy 1s the strategy that creates a brand for an independent product, which is suitable with segmented market of that product The goal of the Strategy 1s for the product to have its own brand on the market

Enterprises that choose product brand strategy when focusing on segmented markets have certain advantages:

- Establishing many brands helps enterprises easily dominate the market

- To similar market segments, creating many brands makes customers consider products in different ways That generates advantages for distribution channels and retailers They can introduce to customers many different brands of the enterprises

-This strategy is suitable for enterprises which encourage creativity, innovation and are willing to take risk when entering new markets with ambition of becoming market leader

Enterprises that choose product brand strategy when focusing on segmented

markets have certain difficulties:

- Product brand strategy requires much financial investment in research & developing and marketing communication

- Distributors would be more careful with new brands

- When applying this strategy enterprises need to consider the relation between increasing the number of brands and the ability as well as speed of capital redemption

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In application, this strategy brings certain advantages to enterprises:

- Increasing the consumption of the brand and create a positive image on the consistency of the product

- Business profits when developing new product in the line

- Reduce distribution cost to market of the product

In application, this strategy brings certain disadvantages to enterprises:

- Enterprises should be aware of the limitation in expanding a product line They need to carefully consider when including new or related products to existing ones

- This strategy may restrict the development of new products

c) Range brand strategy:

Range brand strategy is strategy that builds a brand, a message for a range of products that have same features and functions However, in range brand strategy, products maintain their features

In application, this strategy brings certain advantages to enterprises:

- This strategy helps enterprises avoid the dilution of information which ts caused by paying attention on one single brand only This strategy builds brand awareness and product awareness

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In application, this strategy brings certain disadvantages to enterprises:

- This strategy is not practical in cases in which brand is over-expanded Then, brand’s information would be blurred Products with that brand would lose their distinctiveness Enterprises would consider all the possibility of developing brands with distinctiveness and customers would need more assistance in order to choose the desired product

- This strategy creates a group of heterogeneous products with one same function To make those products exist in customer’s mind, enterprises need to narrow down the structure of the whole product range

- This strategy requires transformation from one product relation to product range relation Under some circumstances, it is not suitable for many customer segments

d) Umbrella brand strategy:

Umbrella brand strategy is strategy that builds one mutual brand for all products of the enterprises on different marketplaces However, each product would

be promoted to customers in a distinctive way

In application, this strategy brings certain advantages to enterprises:

- This strategy puts all products under one single brand and takes advantage

of production, communication, research Umbrella brands are used worldwide by multinational corporations Once a trustworthy brand is established, those corporations have foundation to enter other areas and segments of new market

- This strategy may receive more support from distribution channels, retailers and publics This strategy is appropriate for sectors that do not require high cost of communication and product promotion

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PDF Compress trey VRwh the development of the core brand through aligning new product of the enterprises with brand value created from existing products

In application, this strategy brings certain disadvantages to enterprises:

- This strategy needs to prove different results in each market segment that the brand has succeeded in It shows that a mutual brand would establish distinctive brands for distinctive product lines Each product line needs its own communication Strategy to achieve the highest efficiency

- When demand ts not correctly evaluated, enterprises diversifies umbrella brand to reduce cost Enterprises need to consider the brand's profitability

- Expanded umbrella brand may be harmful to enterprises Moreover,

umbrella brand does not allow a copy of itself Incidents happening to one product would affect the other products The more brand is expanded, the more newsworthy

the brand becomes

- Umbrella brand that is vertically expanded regarding to quality and positioning has several weaknesses The strength of the brand will not affect all market segments

- Umbrella brand in some cases may cause deformation of the brand into a variety of other products

e) Source Brand Strategy:

Source brand strategy is also called parent brand strategy This strategy is similar to umbrella brand strategy, but each product has its own brand name It is

also called two-level brand architecture or double brands

However, under the influence of original brand, adjacent products must have their own name and are bounded, dominated by the prestige of the original brand

In application, this strategy brings certain advantages to enterprises:

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In application, this strategy brings certain disadvantages to enterprises:

- This strategy is net practical when the adjacent products get beyond the limitations of the core feature of the original brand It requires enterprises to carefully consider brand expansion

f) Endorsing Brand Strategy:

Endorsing brand strategy is strategy that shows a certificate or confirmation

of the enterprise for all its diverse products This strategy could be implemented along with the product brand, line brand and range brand strategy

All of the products are freely presented with its origin and features This is the reason that brands and product symbols are diversely established

In application, this strategy brings certain advantages to enterprises:

- This strategy provides enterprises with more freedom in business tips It makes the enterprise’s purview unlimited

- This strategy takes advantage the strengths of specific products It helps customers to link new products with the prestige of the existing product of the same brand

- This strategy would help enterprises reduce cost in promoting brand and take a brand advantage

- The guarantee of endorsing brand about innovative values, technology and social responsibility would help the enterprises save their resources for differentiating their products

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1.2.8 HP URTHPPR SO IRIENO ORE brand value:

Through the analysis of strategies above, enterprises have chosen the appropriate brand developing strategy in order to create a valuable brand That Strategy would contribute to helping the enterprises complete their missions set out

However, in such a complicated market today, enterprises who want to establish and maintain a brand must build an effective comprehensive competing Strategy

Although Michael Porter’s theory about cempetition 1s cerrect, due to currently arising problems, researchers have noticed many new issues to study on Under the circumstance of outsourced manufacturing, competition among corporations working in one manufacturing fields is no longer about quality or price All corporations have the same sources of detail accessories so tangible cost

is almost the same The differentiation in competition is then merely about brand

1.2.3.1 Product Strategy:

Researchers suggest that product is the core of brand value It is the factor that generates feeling Therefore, enterprises should pay more attention on it for maximum satisfaction of customer’s expectation

a) Quality of perception:

Quality perception is the perception of customer about the distinctiveness in quality of one product in comparison with the others It is a comprehensive evaluation based on feeling and functions of the product It is divided into different aspects including: (1) major features and extras; (11) quality standard; (111) credibility, logicality, support services; (iv) economics, (v) designs, art

Enterprises apply concepts of quality function development (QFD) and total quality management (TQM) to maximize the quality of products

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Enterprises need to pay attention on the process of creating values Since then, they could get more competition advantages by completing organizing their business and reducing production cost Moreover, enterprises need to care about quality and speed of ingredient supply, distribution

c) Consumer behavior research:

In the process of creating brand value, enterprises need to understand consuming behavior and habits of customers This factor would build up data of customer’s satisfaction then make it easier to timely respond to customer’s feedback and complains It is the basis to build an appropriate promotion strategy which maintains customer’s loyalty and establishes solid relationship between enterprises

and customers

1.2.3.2 Price strategy

Price is a very important factor that decides the achievement in revenue targets Being able to set a high price is the most important advantage in creating brand awareness

a) Customer’s perception:

Price strategy in branding could create in customer’s mind the relation between different prices of products of the same kind Customers usually evaluate a brand’s quality based on price Enterprise's product must satisfy customer’s expectation Customers accept higher price if the product could satisfy not only