Brand indentity prolem based on customer percive a casestudy of mrbachkhoa

One of potential problem is brand identity of MrBachKhoa based on company’s perspective and brand image based on consumers’ perspective seem not correspond effectively.. Therefore, we wi

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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BRAND IDENTITY PROBLEM BASED ON

CUSTOMER PERCEIVE: A CASE STUDY OF

Firstly, I would like to express our gratitude to my supervisor– Mr Tran Ha Minh Quan, who has been constantly giving me helpful advices and orientation during our thesis process

Secondly, I would like to thank MrBachKhoa’s BOD and managers for their sincere participations in the interviews; and thank for my respondents who spent their time for my surveys

Finally, I am thankful to our families and friends for their sincere supports during this period I also would like to thank my classmates for all the constructive criticism and recommendations that helped me to develop and improve the research

TABLE OF CONTENT

Acknowledgement……….……….………… ……….…… 01

Chapter 1: Abstract……… ……….……… ….….….03

Chapter 2: Problem identification ………….……….……… …….04

2.1 Company background.………….……….…… ……… 04

2.2 Situational analysis.………….……… … ……….05

2.3 MrBachKhoa’s brand perspective…… ……….………….……….09

2.4 Consumer’s perspective of MrBachKhoa …… ……… ….……… 19

Chapter 3: Cause findings and validication ………….……… …… …….29

3.1 Comparison.…….…….……… ……… ……… 29

3.2 Cause-effect map….……….……… …33

3.3 Cause validation.……….……….… 33

Chapter 4: Solution……….… ……….36

4.1 Alternative 1……… ……….…… ………….……….… 36

4.2 Alternative 2……… ………….……….………… 39

4.3 Master timeline and estimated budget….……….……… ….…… 41

Chapter 5: Conclusion and limitation ……… ……….…….…………42

References……….……….…….………….…… ……….44

Appendix……….……….………… …….……… …….45

CHAPTER 1: ABSTRACT Problem:

This thesis is about investigate what is real problem in MrBachKhoa when there was lot of symptom in revenue, competition capacities and brand One of potential problem is brand identity of MrBachKhoa based on company’s perspective and brand image based on consumers’ perspective seem not correspond effectively Communication between the company and the customer is a useful way to understand the core of the brand identity and its role in the market place Therefore, we wish to answer the following problem:

Does the brand identity of MrBachKhoa agree with consumers’ image of MrBachKhoa?

Is it a problem of MrBachKhoa and how to solve or improve in better way?

CHAPTER 2: PROBLEM IDENTIFICATION 2.1 Company Background

The Bach Khoa Computer JSC is currently distributing digital mobile devices in 38 cities and provinces of Vietnam, through a network of more than 85 stores and nearly a thousand employees The first store was launched in May 1997 in HCMC, which was the first player

in Vietnam computer market

The key products of BKC are mobile phones, PC, tablets, laptops, and accessories BKC is not only do business in B2C, but also in B2B with many big firms such as Lazada, Tiki, Vinpro, FPT, etc Bach Khoa Computer has three participations: the south, the middle and the north The Bach Khoa Computer in the South is the biggest participation, which has 23 stores in 15 cities and provinces

2.2 Situational analysis

In a digital world where markets become more and more competitive, where access and offer of different products increase and where products become more and more similar, the importance of brands gain essential meaning Aaker (2009) explained that brands have become a major player in modern society and shape our lives, which represent immaterial assets that often have greater financial value than material assets Keller (2003) suggested that brand is a name that influences buyers, by creating mental associations and

relationships built up over time among customers and distributors A product can be copied

by a competitor but a brand is unique “A product can be quickly outdated, a successful

brand is timeless”

Competition among different digital retail stores is increasing in HCMC This industry has developed and the increasingly competitive retail environment is one cause behind the store’s offer of more equivalent products Simultaneously as the range of similar products increase the brands have not been strengthen or are not acknowledged

With this system in nearly 15 years, BKC has been developed and got a good position in the digital retail market However, in nearly years, something was wrong The sale revenue has decreased during 4 year from 2012 to 2016

Figure 2: Sales Revenue

year) Revenue (Billion

VND)

The managers reveal many problems which have influences on the sale revenue They claimed that in fact the competition abilities of BKC has been decreasing which lower than competitors in HCMC During the latest years, new stores brand has appeared such as Guphukien.com, DidongViet and old brand have been built more stores such as Thegioididong, FPTShop, VienthongA in HCMC With well investment in diversify range

of product and service, they give to customers a lot of good choice

Since 2014, BKC has had a lot of change in business concept and extend product line to increase BKC’s competition capacity The BOD also decided to renew the brand name from Bach Khoa Computer to MrBachKhoa in 4th quarter of 2014 In their voice, brand is one of the most challenging problems of the company when not too much customer think about BKC when trying to buy a new digital devices They have a bias with the name “Bach Khoa Computer” so they choose another rivals instead, such as Thegioididong.com, FPT shop, Viettel Store, or other smaller such as DiDongViet, GuPhuKien, etc

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In order to satisfy this wide base of different customers’ needs, MrBachKhoa offers products in the premium price segment as well as the lower price segment, regular as well

as unique for consumers should be able to find some accessories products that they can’t find anywhere else It prioritizes to be diversify, lively and eventful by focusing on experiential retailer In BOB perspective, they want the customers to associate MrBachKhoa as the best accessories store in town

In order to investigate this claim, researcher has a short interview with buyers and buyers of BKC The respondent didn’t claim MrBachKhoa as the best accessories provider like it want to be Most of them can’t clarify what is MrBachKhoa or product which it sells Computer, IT school or software are the first perception of them

non-In their mind, the most important thing when they seeking for hi-tech product is useful information: search it online, references from their friends or relatives However, BKC usually lacks of both of these elements When they have been searching on internet, they rarely to see an article or data about MrBachKhoa, instead they are easy to touch with TheGioiDiDong, FPT… Interviewees who surfed in MrBachKhoa website, said that website is quite hard to use without good structure

Additional, it is also lack of word-of-mouth from their friend or relatives, who they seem

as their hi-tech guru Some of their “guru” said that their experiment in MrBachKhoa was not satisfaction enough They claimed MrBachKhoa give them lower value than the other did such as TheGioiDiDong, VienThongA, H-Nam Mobile… so they can’t recommend

MrBachKhoa for another These elements show that MrBachKhoa has not completely succeeded with their market communication

In the buyer side, they mention a lot of about another problem: the visual of MrBachKhoa

In their opinion, the decoration with boring main color is not outstanding and attractive in comparison with other stores “It’s boring and didn’t make a noise or impression on the street” The image and logo at store make them confuse because of inconsistence: they feel that different space of store has different name and color People can’t identify what MrBachKhoa brand stand for Somehow, the perspective of customer could not meet the company perspective like the BOD expect

As mentioned above, the BOD decided to renew the brand name from Bach Khoa Computer to MrBachKhoa in 4th quarter of 2014 But after nearly 2 years, how well a company has communicated the brand identity which reflected in the mind of the customers?

As above interview, our customer can’t identify a well image for our brand In fact, nowaday in digital retail market, when the product is just any other commodity and the price becomes relevant, if customers do not recognize the brand and can’t identify themselves with one, which means that customer loyalty is low When necessary they will not hesitate to look for other alternatives

We claim this as a potential concern in the company, which could be one of causes make low brand awareness and low brand image, which decrease MrBachKhoa’s competition

abilities in market Hence we try to investigate more in brand identity which the company want to communicate with customer

In order to understand what MrBachKhoa expect to communicate their brand with the consumer, we dig deeply when interview company’s managers & customer We have chosen to use opened questions were used in order to attain a deeper understanding of the respondents’ actual perception and what they are based upon

The interview company’s managers result will structure in the following sections, which focus on present the brand identity It’s also have quick look to the business concept, brand associations, market communication and customer needs of MrBachKhoa

Lack of WOM

Lack of online info

Low brand awareness

Unclear brand image

Low brand equity Product/ Service

Competitive Market

Decrease Sales Revenue Not Satisfy

Change business

concept

central part in the development towards becoming “Best in hi-tech accessories product”, which is the vision of the new brand

The purpose with the re-branding process is to strengthen the brand and to market MrBachKhoa, in order to attract more customers and increase the growth The brand building is a continuous process and goes far beyond just the surface that the customers see, for example the logotype It is a tool for communicating the identity of MrBachKhoa, which creates an image in the consumers’ minds

2.3.1 Brand identity of MrBachKhoa

Applied the elements in the identity prism of Kapferer (2012), on MrBachKhoa by defining

these elements in the sender - MrBachKhoa, which is expressing a picture of the company

In its turn, the customers observe the image of MrBachKhoa depending on how well MrBachKhoa succeeds in communicating their identity

Physique

According to Mr Quan, the founder, MrBachKhoa rebranded as the best place for hi-tech

accessories in town, where diversify digital products not only phone, tablet, computer but

also focus on accessories and easy to choose

The stores are situated in the big streets of HCMC which tend to have consistency

decoration There are also include in the mall center chains such as Coop Mart, Big-C The logotype of MrBachKhoa is visible and placed in entrance, doors, standee, experiment shelve space, etc

Personality

It is essential to have a personality that express what kind of person MrBachKhoa wants to

be perceived as, who they are and what they stand for

Mr Quan share that when rebranding, MrBachKhoa wants to be perceived as a modern

gentleman which above 30 years old and good experience in hi-tech He is active, outgoing and experienced He is also stabile, secure, trustworthy He likes technical, IT and social network

Culture

It is of significant importance for MrBachKhoa because there are not different too much

between stores in town The core values MrBachKhoa want to point are hospitably,

professional, lively, diversify, accessible and the culture is the source of these values BOD

of MrBachKhoa believe that these elements are the core values of the brand which regularly communicated from the company management to the employees

Hospitably

According to Mr Quan, welcoming means that MrBachKhoa wants the costumers to feel welcome and comfortable when entering the store, through kindness, good service and creating a pleasant environment This is shown by, for example, welcoming signs in the parking lot, some decorations by the sitting areas in the middle of the store, sale staffs behavior “Store managers have to open and close the door when every customer enter is the first step to show the culture of us”, he said

Professional

Mr Quan notes this attribute as one of point he want the customer remind about He mention professional in customer service, sales advice, guarantee, even delivery or decoration In his words, “in any case, customer is the best”

According to Mr Quan, it is important that the employees are aware of this core values and it is an important stage in the brand building process The employees can help communicating what MrBachKhoa want to be through their service and the way of treating the customers That is reason why professional is also one of KPI of sales team to estimate the performance The managers want highlight professional will be one top of mind to guide all staffs in MrBachKhoa

Lively

Lively is one of MrBachKhoa’s most important values, which has always been highly prioritized To fulfil this value, MrBachKhoa has organized different events frequency, such as mini game shows in stores, sale-off activities, launching product exhibitions, etc

Further actions made in making MrBachKhoa a lively atmosphere and more experiential store is the broad range of products In order to stay competitive and attract more customers, Mr Linh – Marketing Director, claims that MrBachKhoa will expand the range

of events in the future

Diversify

Mr Quan wants the customers to associate MrBachKhoa with the wide range of products and mentions that customers can buy various products, such as mobile devices (smartphone, tablet), PC (computer, laptop, software), hi-tech accessories He points out that it is important to continue to let new products line establish in MrBachKhoa Consumers should be able to find products such as accessories that they can’t find anywhere else

Accessible

Accessible refers to the location of MrBachKhoa, which in the big street of the city of HCMC, which increases the accessibility and makes it easier to park at shop MrBachKhoa has chosen to have longer opening hours, even on weekends, in order to be as accessible

as possible The shops in MrBachKhoa is open every day of week from 8a.m to 10 p.m

Relationship

The MrBachKhoa brand want to satisfy customers’ needs via its variety of stores and products Sometimes the customers’ want to buy hi-end mobile devices, sometimes they want to buy a PC or a software Sometimes customers are unique and want to special

accessories for their devices Mr Quan believe that all demand could be satisfy in one

place: MrBachKhoa

They are trying to be an experiential digital mobile center The management of

MrBachKhoa want to take action towards a more experiential retailer, hence connect well

strong with customer to gain loyalty and return buying

Reflection

MrBachKhoa gives customer a unique buying experience and delectation It is always

accessible for everyone and easily gives them not only what they want but also the good atmosphere It satisfy their needs, where is a diversify place where the customer can find

everything for mobile devices, PC, software, accessories

Self-image

When choosing MrBachKhoa for buying, the BOD believe that customers can reflect themselves are smart and modern users They are careful and brainy when choose a good product and good service in one of best modern store in the town

In summary, the fact of the brand identity which the company want to claimed MrBachKhoa consists of the following words:

- Physique – Hi-tech retailer store, accessories, in big street

- Personality – Modern gentleman, experienced, stabile, secure, trustworthy, social

network

- Culture – Welcoming, lively, professional, diversify, accessible

- Relationship – Satisfy customer, strong connection, loyalty and returning

- Reflection – Diversify product, unique atmosphere, accessible for all customer

- Self-image – Smart, modern, careful

2.3.2 Business concept

When rebranding, MrBachKhoa’s vision is to become “Best player in the market of accessories product”, which means not to be focus too much in PC market and mobile devices To reach the vision, MrBachKhoa has developed a business concept: the brand will have a category of products and services that meet to the demands of the customer MrBachKhoa will appear as the most modern and experiential digital mobile accessories store in HCMC More space of store has be for hi-tech accessories which in the best eye-catching booth

2.3.3 Brand associations

Mr Quan wants the customers to associate MrBachKhoa with the wide range of products and mentions that customers can buy various products, such as mobile devices (smartphone, tablet), PC (computer, laptop, software), hi-tech accessories He points out that it is important to continue to let new products line establish in MrBachKhoa Specially, consumers should be able to find products such as accessories that they can’t find anywhere else

Other associations, which Mr Linh mentions is welcoming, and an overall good service and quality in the shops It is essential for the employees to have knowledge about MrBachKhoa’s vision and the core values, in order to work on communicating these associations and live up to a good service that MrBachKhoa wants to be associated with

It is also important to have a nice environment in MrBachKhoa, in order for customers to associate MrBachKhoa as welcoming

MrBachKhoa prioritizes to be eventful, by events taking place in the store and by focusing

on experiential retail According to Mr Linh it is important that the shops are eventful as well and that the shop is like an experience, which is why the employees are being encouraged to make the shop more eventful

MrBachKhoa’s marketing department has been ran many online campaigns, which are advertising and developing MrBachKhoa brand which is the good place to buy digital

things MrBachKhoa is also available on their homepage, www.MrBachKhoa.com There

is information about products, price, promotion, guarantee policies, stores address, etc This is a way of connecting the consumers to the store and not going to the same store somewhere else

Since MrBachKhoa is situated in an attractive market, there are also many online articles written about different incidents in MrBachKhoa This type of publicity could be both positive and negative, but Mr Linh - Marketing Director, believes that the negative publicity has decreased over the past years The total amount of paid publicity for 2015 was more than 10 articles This was written in different newspapers such as 24h.com.vn, kenh14.vn, news.zing.vn, pcworld.com, etc

The advertisement of MrBachKhoa has changed over the past years Before, advertisement

of MrBachKhoa could just be a picture of the logotype on the main entrance Today, MrBachKhoa’s advertisement is based more on emotions, where you can see two people interacting for example This type of advertising is better corresponding to the brand identity that MrBachKhoa wants to communicate, such as being lively and that MrBachKhoa wants to offer experiential retail This kind of advertisement is also easier for customers to relate to, as creating more emotion and Mr Linh believes that it better represents how MrBachKhoa wants to be perceived

As mentioned before, it is essential that the employees are aware of MrBachKhoa’s core values and the vision in order to transmit that to the customers The staffs of MrBachKhoa

regularly receive information from the management of MrBachKhoa to be able to stay updated about activities and events It is also important that they receive information about the core values, says Mr Linh, which is why there has been a weekly meeting for stores managers in MrBachKhoa

2.3.5 Customer needs

According to Mr Linh, the target group of MrBachKhoa is broad and consists of youths, families and elder people Faced with competition from other big brands like Thegioididong, VienthongA, FPT store, it is of great importance to meet the needs of their consumers The way to do so is by offering a broad range of stores In MrBachKhoa, people can buy mobile devices (smartphone, feature phone, tablet), PC (computer, laptop), software and hi-tech accessories

In fact, PC market in nearly few year was not expend, because of decreasing consume needs And in mobile devices segment, there are bigger competitor such as Thegioididong, VienthongA, FPT stores However, not too much people have a loyalty brand when trying hi-tech accessories

Hence, MrBachKhoa renew brand and focus on hi-tech accessories and to satisfy this wide base of different customers’ needs, MrBachKhoa offers products in the premium price segment as well as the lower price segment, regular as well as unique for consumers should

be able to find some accessories products that they can’t find anywhere else

2.4 Consumer’s perspective of MrBachKhoa

We have explained the perspective of MrBachKhoa Further follows the consumers’ perceive and how they perceive the image of MrBachKhoa

Based on our interview and our secondary data we have formed a questionnaire to find answers to our sub research problem which is to find out how the intended image is perceived by the customers The questionnaire consists opened questions The consumers’ perspective indicates the experienced quality and how the consumers perceive the new brand of MrBachKhoa

The interview customer’s perspective result will structure in the following sections, which focus on present the brand image of MrBachKhoa

is belong to Bach Khoa HCMC University, because he saw a big store of BachKhoa Computer is in front of this university

Ms Diem Nguyen is the same idea Having twice time shopping, she said that she knows Bach Khoa Computer has diversify products, including computer, mobile, accessories… But she is no idea about new name of MrBachKhoa In her voice, she can’t see the change because the store was not different in visual: logo, name in billboard, colors She though the new name is not more impressive than the older one

Another buyers, Mr Chien Tran - who buy a smartphone in Feb 2016, said that he was have a convenience when choosing an accessories for his new phone He is quite surprise because he imaged MrBachKhoa looks like a small store with laptop or phone After visiting, he though MrBachKhoa is a good choice to buy digital product because of its diversification with many product categories

With the people who didn’t have experience in shopping in MrBachKhoa Ms Thao Do, who choose HNam Mobile instead MrBachKhoa when buying her smartphone, she did not see the name when searching product information She said that she just think about computer or a university when heard the brand name Ms Huong Nguyen shared same idea

“MrBachKhoa sounds like an IT college or software company”

In summary of MrBachKhoa’s physique, computer (laptop and PC) is top in mind of buyers, and IT school or software firm is the answer of non-buyers

Personality

When the respondents were asked if the brand MrBachKhoa were a person, who would it

be, many answer from both buyers and non-buyers

Mr Dung Nguyen though that MrBachKhoa sounds like a seriously man with knowledge

in technology, a name of old teacher who can guide you in that major

Ms Thao Do says “MrBachKhoa is a name of a man who know everything like a “live encyclopedia” He has knowledge and experience who you can trust

Ms Diem and Ms Huong Nguyen have the similar ideas They said that MrBachKhoa make them image about an elder: more than 60 years old, unsociable, slowly and inflexible However, he gained a lot of experience and can give you great advices to do

Another opinion from Mr Chien Tran He thinks MrBachKhoa is a gentleman within middle age He is the best in IT, software and hi-tech He is clever and stabile with careful thinking

In summary, most answer for personality of MrBachKhoa sounds like a middle age men who has a good knowledge in technology and looks like have some “IT-man character”:

smart and careful to trust, but unsociable and boring to communicate

Culture

When the respondents were asked how they would explain MrBachKhoa or Bach Khoa Computer culture, an opinion from a buyer, Ms Diem Nguyen told when she came to store, she feel little strange such as “lack of something make good atmosphere in store” Although

the store is in big street but hard to find out because its color doesn’t stand out She said

“honestly I think it is quite cold, lack of warm and fun in the first see like I fell in Thegioididong or VienthongA” However, the salesman was so enthusiastic advices to

have a good choice, so she was quite satisfied

Mr Dung Nguyen, who buying a laptop in MrBachKhoa, show his viewpoint that while

he chooses MrBachKhoa because one store is front of Bach Khoa University and on a big

crowded street, so it easy to access The products category is diversify However, Mr Dung

also shared that he has some experience in buying hi-tech product, hence he think

MrBachKhoa product is still complex and don’t have sale promotion frequency like

TheGioiDiDong, VienThongA, etc Other opinion is want more space for experience product area and more activities in store (such as event, unique promotion)

Mr Chien Tran said that the sales team was friendly “The store manager open the main

doors when I entry, and then have another salesman guide me in the store” Chien think

they were professional when make customer feel comfortable in a good way He says “It’s

easy to pick accessories when they are next to the phone categories where I buying” However, the second time when Chien came back, he had a chance to join a sale-off event

in MrBachKhoa He told that his experience in event was quite boring “The sale-off

product is not good quality and not in best price Almost of them are old or from China, so

make people afraid that can be buy an out-of-date product” The atmosphere is nothing

special activities “while the other competitor did it better” so he did not enjoy and buy

anything He said for example, when TheGioiDiDong launching a new product line, they create a big promotion event with crazy sale-off, colorful and make a noise so get impression

Mr Dung and Ms Chien both said that the visual of store is regular in boring ways With main color is green, Mr Chien said it is quite peaceful, but not create impression or fun

feeling to create inspire like TheGioiDiDong, VienThongA… The visual is also not

identical: the logo and name of brand in outside such as billboard, main door are different

with inside (standee, brochure…), so that make him confuse

In other side which non-buyer, responders can’t really put a finger on what MrBachKhoa try to convey after they hear or see the brand

Relationship

In response, only Mr Chien Tran thinked that MrBachKhoa gave him a quite good relationship after visiting He said the professional of store managers in the first see and then the enthusiasm of sales team was impressive, which made him feel comfortable

“Although it still has other fault, MrBachKhoa is the one of the choice for me when I consider to buy hi-tech products”, he says

Mr Dung and Ms Diem gave a same feedback when they had a neutral relationship with

MrBachKhoa

Mr Dung’s opinion is between him and MrBachKhoa is in a normal connection “Just a

choice for buying Something good and also something bad in the store” If the others have better in price, location, policies… he will choose them instead MrBachKhoa, according his word

After twice times experience visiting, Ms Diem said that she would consider to come back

or not because of comparison with other competitors “The price is quite the same, so I will

be back where I fell more fun and happy While I experience the warm and colorful visual

in TheGioiDiDong or VienThongA, it’s not in MrBachKhoa.”

In the side of non-buyer, Ms Thao said she didn’t try visit the store before Maybe she can try in the next time if she looks for some interesting information about her seeking product

in MrBachKhoa

Other non-buyer, Ms Huong said that she has a good relationship with TheGioiDiDong when she is a membership and them always give her a good deal for buying

“TheGioiDiDong give me almost of comfortable and satisfaction which I hope So that it’s

so hard to change my choice to MrBachKhoa”

Reflection

When asking the question about the refection of MrBachKhoa, most of visitors claimed

MrBachKhoa is a hi-tech store which is diversify of product “The store satisfies my need

when I am seeking for a hi-tech product”, Ms Diem claim Mr Chien, who after visiting and purchasing, said that he has to change his previous mind-set about a small store with