Building a leading position of vietfund management

This project has three main objectives of exploring the brand personality characteristics of VietFund Management VFM brand in investors’ minds, finding out its brand position in the mark

TRƯỜNG ĐẠI HỌC MỞ TP HCM

HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITE LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MBMM1

PHAM NGUYEN MAI TRAM

BUILDING A LEADING POSITION OF VIETFUND MANAGEMENT

MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Dr Nguyen Minh Kieu

Ho Chi Minh City

Statement of Originality

This work has not been submitted for a degree or diploma in any university To the best

of my knowledge and belief, the project contains no materials previously published or written by another person except where due reference is made in the project itself

Pham Nguyen Mai Tram

March 03, 2011

me their opinion and perceptions for this research

My special thanks to Mr Pham Nguyen Vinh – Corporate Communication Director of Dragon Capital and Mr Pham Khanh Lynh – Deputy CEO of VietFund Management for their valuable advices, guidance and significant assistance

Finally, I would like to send my sincere appreciation to my husband Geoffrey Klein, my daughter and son for their sympathy, sharing and encouragement during the time I was very busy with daily works and study It will be my concrete foundation of my professional career and happy life

The comments of Tutor

I am writing to confirm that the project entitled BUILDING A LEADING POSITION

OF VIETFUND MANAGEMENT prepared by Pham Nguyen Mai Tram has satisfied

the requirement for a Master’s project in Business and Marketing Management

I, therefore, recommend that the project will be presented

HCMC, March 03rd, 2011

Dr Nguyen Minh Kieu

Executive summary

The creation and positioning of a brand is an important topic for Vietnamese companies that are trying to attract and maintain their customers With competition becoming fierce, companies are organizing strategic plans to differentiate themselves from their rivals My project is to develop a better understanding on how an organization is identified through its brand To achieve this goal, the questions are looking at the various attributes of position as well as a description of a company’s brand personality This project has three main objectives of exploring the brand personality characteristics

of VietFund Management (VFM) brand in investors’ minds, finding out its brand position in the market, and proposing implementation of improving or maintaining its brand position to be a leader of fund management in term of total asset under management, professionalism and activeness By using a Brand Personality Scale (BPS) as a framework, the questionnaire survey was conducted in sample size of 150 investors trading at securities companies; a literature study was performed to help build

a framework for the questionnaire and data collection The findings in Chapter 4 showed the major brand personality characteristics of VFM brand and its position in the market are different with the ones which VFM assumed

Implementation plans for enhancing VFM brand personality characteristics are discussed and recommended in Chapter 5 with the aim of achieving the development strategies of the company in the new decade of 2011 – 2020

Table of Contents

Acknowledgements 4

Executive summary 5

List of Tables 8

List of Figures 8

CHAPTER 1: INTRODUCTION 9

1.1 Background of project 9

1.2 Project objectives 10

1.3 Scope of the project 11

1.4 Methodology 11

CHAPTER 2 LITERATURE REVIEW 12

2.1 Brand 12

2.2 Brand personality 13

2.3 Brand position 15

CHAPTER 3 OVERVIEW OF THE FUND MANAGEMENT INDUSTRY AND VIETFUND MANAGEMENT (VFM) 17

3.1 Overview of fund management industry in Vietnam 17

3.2 Introduction of VietFund Management 17

3.3 Major competitors in the market 18

CHAPTER 4 PERSONALITIES AND POSITION OF VIETFUND MANAGEMENT COMPANY 21

4.1 Brand personality characteristics of VFM 21

4.2 Brand position of VFM 25

CHAPTER 5 CONCLUSIONS AND IMPLEMENTATION 28

5.1 Conclusion 28

5.2 Development strategies of the company 28

5.3 Implementation 29

5.3.1 Short-term plan (1- 2 years) 30

5.3.2 Long-term plan 31

5.4 Limitations of the projects 32

REFERENCES 33

LIST OF APPENDICES AND ABBREVIATES 34

List of Tables

Table 1 Aaker’s brand personality dimension with related items   15 

List of Figures

Figure 1 Brand as an Interface   12 

Figure 2 The components of Brand Identity   14 

Figure 3 Respondent’s type.   22 

Figure 4 Respondent’s age.   22 

Figure 5 Respondent’s career and jobs.   22 

Figure 6 Communication channel   23 

Figure 7 Personality characteristics of VFM   24 

Figure 8 Comparison of Personality characteristics with competitors   25 

Figure 9 Position map of brands   27 

CHAPTER 1: INTRODUCTION

This chapter shows readers the objectives of the project and how the project is organized in order to describe real problems that VietFund Management is facing In the first chapter we explore what is the definite of branding and positioning and there attributes create a iconic brand To understand of these concepts, the paper will also discuss relevant theories of branding personality and brand positioning in the next chapters Finally, the research questions will be addressed

1.1 Background of project

Vietnam stock market was established in 2000 and has known as an emerging market for domestic and international investors Ten years after Vietnam stock exchange began, it's become a symbol of what the country is trying to achieve: a market-based economy The stock market has grown significantly — only two stocks were traded in the beginning, compared with 586 today on both the Ho Chi Minh Stocks Exchange and the Hanoi Stocks Exchange — and is attracting a growing number of domestic investors The market capitalization of Vietnam's stock market total is $33.2 billion, 40% of the country's GDP Number of securities companies and fund management companies were established to offer wide range of financial services to individual and institutional investors in Vietnam and abroad This expanding causes market competition higher and higher by time over time

In addition, the global financial crisis has made strategic leaders concerned with how to turn around their fortunes restore their countries and companies to profitability Strong market forces are subtly at work with most nations seriously strategizing for what the new world order will look like in the future The building of strong brand of products, services or business is one of the ways in which a company can develop and sustain an advantage over its competitors, and thereby maintain or increase its sales or market share (Hankinson & Cowking, 1993) If brand owners use their products correctly, the

payoffs can be substantial However, if brands are mismanaged, the results can be damaging Successful brand-building strategies create a distinctive market position for a company, protecting it against the five basic competitive forces: rivalry among existing firms, the bargaining power of supplier, the bargaining power of buyers, the threat of substitutes, and the threat of new entrants (Hankinson & Cowking, 1993) To build a competitive advantage of one’s rivals, branding uses our human desires to attach meaning and feelings to objects and concepts

Understanding of the importance of brand building, after 5 years of development, VietFund Management (VFM) has positioned itself as a leader in fund industry replacing of the first domestic fund manager in Vietnam However, with this fast growing market, the big question is that if VFM brand is strong and competitive to other fund management companies in Vietnam, and VFM is still a leader of financial services market Brand positioning is much more than an advertising claim or slogan It is a discipline that defines an enterprise and shapes the very fundamental beliefs people have in a product, service, and company

To strengthen the good image in mind of investors, partners, the important thing VFM should do is to position or re-position its brand among competitors in the mind of investors, and bring its unique advantages for employees, business partners and investors

1.2 Project objectives

This project has three major objectives: (1) explore the brand personality characteristics

of VFM brand in investors’ minds; (2) find out its brand position in the market; (3) propose implementation of improving or maintaining its brand position if the company still wants to be a leader of the market

1.3 Scope of the project

The scope of this paper has been limited to setting the necessary research agenda by simply applying a qualitative survey that will capture the emotional and physical needs

of investors toward VFM brand based on its typical brand personalities, then bring its position in a matrix map of market The survey was taken place in some securities companies in Ho Chi Minh City

1.4 Methodology

The project outline is developed on the basis of the real concerns of VietFund Management (VFM) The process of collecting, analyzing the information which was collected from questionnaires, and reporting were processed by using MSExcel The questionnaire contained core questions addressing to issues such as target segment of audiences, personality characteristic, and current position of the brand

Targeting the investors who are male or female investing money to stock exchange and trading at securities companies in Ho Chi Minh City Sample size is approximately 100 – 150 respondents, in which 10 - 15 people at each of 5 selective securities companies According to the objectives of this project, the questionnaire was organized main parts: the respondent’s basic information, brand personality and brand position

The investors who were trading at securities companies may be more aware of the brand VFM and would have more experience with and greater preference for fund certificates In order to reinforce the coverage of the questionnaire survey, the survey was conducted during the stock trading time from 8:30am to 11:00am by directly delivering to respondents and returning back to the author after filling information This survey was taken 7 working days at 5 different securities companies

CHAPTER 2 LITERATURE REVIEW

This chapter aims to review the brand personality literature from all dimensions It has started from the broadest view (brand and its importance) and then has clarified the position of brand personality in the brand structure and then has been narrowed to the brand personality concept and its application

2.1 Brand

According to the marketing association, brand is a name, term, sign, symbol, or design,

or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors The definition has been criticized for being too product-oriented and lack of intangible features like image (Kotler 1996)

Brand is an interface between the firm’s activities and consumer’s inter-perceptions

Figure 1 Brand as an Interface

Source (De Chernatony, 1998)

Brands are born with distinctive names and then by the help of functional capabilities people start to recognize them, symbolic features are first steps to make the brand different in the mass market these features like brand personality makes the brand hard

to copy

BRAND

CONSUMERS’

PERCEPTIONS FIRM’S INPUT

Today definition of the brand is something beyond the simple view decades ago, not just a log or advertising message; it is a collection of expectations, hopes, relations which arises from a company or product (Leiser, 2004)

2.2 Brand personality

Distinct brand personality plays a key role in the success of a brand It leads customers

to perceive the brand personality and develop a strong connection to the brand (Doyle, 1990) A brand personality should be shaped to be long lasting and consistent Besides,

it should also be different from other brands and meet consumer’s demands Hence, investors of products and services are like the brand spokespersons and become the basis for suppliers to build brand personality With the specific brand personality, consumers of varying personality traits will be attracted and their brand preference will then be further developed In addition, a company can maintain a good relationship with customers through its brand personality (Aaker and Biel, 1993)

Because brands have their own particular personalities, consumers may treat brands as real human beings In this case, consumers will expect the people’s words, attitudes, behavior or thoughts and so on to meet their respective personality traits (Aaker, 1997) Consumers may likely use the brand and products in line with their own personality traits, in other words, all the marketing activities are aimed at having consumers believe and recognize a brand personality, and reinforcing the communication between the brand and the consumer (Govers and Schoormans, 2005), in order to enhance the brand’s loyalty and equity

The model of core brand identity is based on six central components: physique, personality, culture, relationship, reflection and self-image According to this model, the core values of a brand are not just functional abilities but also emotional ones like personality As a matter of fact personality helps the company direct their marketing activities through what brand really stands for and in the other side helps the customers

recognize, by quick and little information, what value the brand is offering (Aaker, 1997)

Figure 2 The components of Brand Identity

Source: Kapferer, 1993

The use of brand personality in brand management strategies can help the whole company gaining satisfaction, loyalty, profitability and overall economic advantage over its competitors

Based on the human personality model (big five), Aaker (1997) found a new five dimensional model in the context of brands named Brand Personality Scale (BPS) Each

of five dimensions of the model includes several corresponding attributes

Table 1 Aaker’s brand personality dimension with related items

Factor

name

Positioning is the process whereby information about the organization or the product is communicated in such a way that the object is perceived by the consumer/stakeholder

to be differentiated from the competition, to occupy a particular space in the market (Fill, 2002)

Like brand identity, brand position is more aspirational, reflecting perceptions that the strategists want to have associated with the brand Brand position demonstrates and advantage over competitors The bottom line is that the position should specify a point

of superiority that is a part of the value proposition The point of advantage resonates with customers and should be differentiating from what competitors provide

Perceptual mapping is a common used tool for determining the position of a brand in the marketplace (Fill, 2002) It is a visual representation of consumer perceptions of the brand its competitors using attributes (dimensions) that are important to consumers Four key steps in developing a perceptual map are identified: a set of competing brands, important attributes that consumers use when choosing between brands, conduct marketing research and finally plot the brands on a two dimensional map (Jobber, 2001)

This chapter includes concepts on brand, brand personality, brand position which will be the conceptual framework for the author to have suitable direction of designing the questionnaires and analyzing data in the next chapters

CHAPTER 3 OVERVIEW OF THE FUND MANAGEMENT INDUSTRY

AND VIETFUND MANAGEMENT (VFM)

The brief of the fund management industry and short introduction of VietFund Management (VFM) are shown in this chapter Thus, the readers may understand more about the brand and its branding activities

3.1 Overview of fund management industry in Vietnam

After 3 years of establishment of Vietnam Stock Market in 2000, fund management industry in Vietnam was known through the opening of VFM and the launching event of the first securities investment fund to investors in 2003 Continuously, 54 fund management companies were set up and offered around 26 investment funds to investors, domestically and internationally for raising 987 million dollars in total initial capital In the market, there are some big names which are considered as top companies

in providing funds and asset management for individuals and institutions such as VFM, Prudential Vietnam Fund Management, Manulife Asset Management, SSI Asset Management, MB Capital, and Viet Capital Currently, there are 5 close-ended funds listing in Ho Chi Minh Stock Exchange

With the target of increasing total number of funds and fund size in the market, the State Securities Commission (SSC) planned to grant some new rules which permit fund management companies to launch new models of funds such as open-ended fund, ETF

to call more capital to stock market

3.2 Introduction of VietFund Management

VietFund Management (VFM) is the fist financial services and investment firm, established in 2003, providing a comprehensive range of investment management and discretionary portfolio management products, to domestic and international investors VFM was initially formed by joint venture (JV) between a leading domestic bank, Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Dragon Capital

Management Limited (Dragon Capital) In 2009, VFM changed its legal status from Joint Venture Company to Joint Stock Company (JSC)

VFM started its operations with 16 employees, and currently VFM employs almost 50 investment professionals with a strong discipline in developing financial products and services, investment research and analysis across Vietnam’s capital markets

As the pioneer of the local fund management industry, VFM’s vision remains to be the leading fund manager in Vietnam, in terms of assets under management and investor satisfaction VFM strives to deliver successful investment strategies and superior financial performance and services to our clients, using integrity, teamwork, innovation and commitment to excellence VFM is the only domestic fund manager to have developed its core product base to four funds, including three publicly listed funds on the Ho Chi Minh City Stock Exchange (HoSE) and one member fund, attracting over 15,000 domestic and international investors, and with the total asset under management

of approximate USD200 million In addition, VFM also offers institutional discretionary portfolio management services, in accordance with their specific investment needs

3.3 Major competitors in the market

In spite of 30 activating local fund management companies in Vietnam, only the 5 largest companies named VFM, SSI Asset Management, MB Capital, Prudential Vietnam Fund Management, Manulife Asset Management and Viet Capital are considered as main competitors in the market

Brief information on the above competitors:

SSI Asset Management:

SSI Asset Management (SSIAM) is an one-member limited liability company under