Research objectives: Brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System. The basis of brand development principles and brand development reality of Vietcombank system, recommending some solutions for brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System– Vietcombank.
Trang 1MINISTRY OF EDUCATION AND TRAINING
VIETNAM UNIVERSITY OF COMMERCE
-
NGUYEN TIEN DAT
BRAND DEVELOPMENT OF JOINT STOCK BANK FOR
FOREIGN TRADE OF VIETNAM SYSTEM –
Trang 2The Thesis was completed in:
Vietnam University of Commerce
Scientific Instructors: 1 Associate Prof Dr Nguyen Quoc Thinh
2 Associate Prof Dr Nguyen Van Thanh
Reviewer 1: ………
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Reviewer 2: ………
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Reviewer 3: ………
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The Thesis will be defended before University Level Thesis Assessment Council met at Vietnam University of Commerce at……… hours………… date ……… month ……… year…………
For more details of the thesis, refer in: National Library Library of Vietnam University of Commerce
Trang 3List of the Scientific Research Works Published By The
Author Related To The Thesis
The papers published in scientific journals, research works
Name and Number of Publication Review, Title, subject code
The level of participation
(Author or Co-author)
2012 The issues raised for the
brand development of bank sector
Financial and Monetary Market Review, No 13 (358) dated 01/07/2012, ISSN 1859-2805
Co-author
2012 Factors affecting the
ability of sustainable development of commercial banks
Financial and Monetary Market Review, No 17 (362) dated September /2012, ISSN 1859-2805
Co-author
2012 Assessment of the level of
competition of the banks
in the system through market concentration index
Financial and Monetary Market Review, No 18 (363) dated September /2012, ISSN 1859-2805
Co-authors
2012 Commercial banks'
synchronous implementation of many solutions to improve the quality of human resources
Financial and Monetary Market Review, No 22 (367) dated November /2012, ISSN 1859-2805
Co-author
2012 Brand Development for
Commercial Banks in Vietnam
Banking Review, No 12 dated June/2012, ISSN-0866-7462
Co-author
2012 Risks in lending coffee
commercial business enterprises
Banking Review, No 23 dated December /2012, ISSN-0866-7462
Author
2012 Brand development and
the issues raised for the brand development of bank sector
Proceedings of Scientific Conference of ONA and Vietnam Union of Science and Technology Associations, dated 12/08/2012
Co-author
2015 Solutions to enhance the
brand power in the Vietnam Commercial Banks
Financial and Monetary Market Review, No 3+4 (420+421) dated February/2015, ISSN 1859-2805
Co-author
Trang 5In conditions of fierce competition among commercial banks at present, it is necessary for commercial banks to constantly improve operational efficiency and increase brand value in the international economic integration process The brand development of commercial banks is not only a requirement for commercial banks in Vietnam in general but also the Joint Stock Commercial Bank for Foreign Trade of Vietnam System in particular, and it is not only a matter to banking leaders, state authorities but also researchers who are interested
in With the problems posed, student has chosen the topic “Brand Development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System – Vietcombank” for his thesis Research contents will be focused on assessing the real situation of Vietcombank brand development and then recommend the system of solutions for brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System
2 RESEARCH GOALS
- Research goals: On the basis of brand development principles and brand development reality of Vietcombank system, recommending some solutions for brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System– Vietcombank
- From such research goals, the research tasks include:
Overview and systematization of simple theoretical basis of brand, service, bank brand, bank brand development and brand development of banking system for commercial banks
Research of branding experience of some domestic and international banks Thence, drawing experiences for Vietcombank
Analysis of real operations of brand development of Vietcombank system in recent years showing the limitations to be overcome in this bank
Recommendations of some solutions to suit the new context for brand development of Vietcombank system
- Question 2: For the banking sector, what is the conception and definition of brand? What is the feature
of the banking brand?
- Question 3: What are experiences in brand development of the domestic and foreign banks?
- Question 4: What is the difference between corporate branding and banking branding? Which factor
will decide the bank brand development?
- Question 5: In the context of the banking sector in Vietnam, what is actual situation of brand development in the banking sector at present? And what about Vietcombank?
- Question 6: What are solutions for brand development of Vietcombank system in period 2015-2020?
4 OBJECTS AND SCOPE OF RESEARCH
- Research object: Brand development of Joint Stock Commercial Bank for Foreign Trade of Vietnam System
- Research scope:
For space: Overview of researching situation on brand theory and brand development for commercial banks in Vietnam and around the world; the basic theoretical issues of bank branding and brand development of commercial banks in the trend of international integration; the basic issues of branding
and brand development at Joint Stock Commercial Bank for Foreign Trade of Vietnam
For time: The thesis focuses on researching brand development situation at the Joint Stock Commercial Bank for Foreign Trade of Vietnam in the period from 2010 to 2014; and sets out the brand development
Trang 62 orientation and solution for Joint Stock Commercial Bank for Foreign Trade of Vietnam for the period
2015 – 2020
4 RESEARCH METHOD
Measurement of branding results is done with the aim of gathering information to measure the perceived value of the Joint Stock Commercial Bank for Foreign Trade of Vietnam’s brand However, the purpose of the research is to explain the role and development of the Joint Stock Commercial Bank for Foreign Trade of Vietnam system Moreover, the purpose of the research is also to resolve the inspection and determination of relationships between the variables studies and measuring efficiency of Vietcombank’s brand value
Research approach refers to the way used to answer the questionnaire Four types of research methods have been developed, including:
- Qualitative research methods
- Quantitative research methods
- Comparison, analysis, synthesis, interpretation and inductive methods
- Interview and investigation methods
These research methods used in this research will help the generalization of results on objects selected for survey and investigation Moreover, the quantitative tools are used to collect and analyze data to identify and clarify the effectiveness of brand value measurement of Vietcombank
The research has selected objects to be surveyed, including individual customers using banking services and other ones are organizations/companies with relationship to Vietcombank In this research, the number of
individual customers and companies nationwide surveyed directly was 456 individual customers and 152
corporate customers
5 THESIS STRUCTURE
Besides the foreword, conclusion and list of references, the main contents are structured into four chapters as below:
Chapter 1: Overview of studies
Chapter 2: Some theoretical issues of brand and brand development of commercial banks
Chapter 3: Brand Development Reality of Vietcombank system
Chapter 4: Brand development orientation and solution of Vietcombank system
CHAPTER 1
OVERVIEW OF STUDIES
1.1 THE SITUATION OF DOMESTIC STUDIES
Currently, there were a lot domestic and international scientific research projects, books and magazines mentioning the contents related to brand theory Some studies of science and domestic policies, students have referred the conception of brand as follows:
Scientific studies in 2010 - Le Thi Kim Tuyen – “Building a sustainable brand for Vietnam Joint-Stock Commercial Bank for Industry and Trade – Vietinbank” has been successful when systematizing the basic issues of brand, leading problems logically from corporate brands to Commercial Bank ones
Le Thi Kim Tuyen has gone toward a new direction: building a sustainable brand for Vietinbank She has systematized the brand theories as well as the evaluation criteria of the same
Scientific study, Assoc Prof Dr Nguyen Quoc Thinh & Master Le Thi Thuan, a scientific research of sectored levels: “A number of major solutions to build and protect brands for Vietnam goods exported in the context of international economic integration”; and Can Anh Tuan, in his doctoral dissertation: “Developing a powerful brand for Vietnamese enterprises” where has discussed on the conception of brand is sign to distinguish goods and services among enterprises’ ones, is image of the goods and services of each enterprise, and is the corporate image in the minds of consumers
In the opinion of Assoc Prof Dr Nguyen Quoc Thinh & Master Le Thi Thuan in their scientific research of ministry level (2003), there will be no any particular and sustainable pattern for the building and development of goods brand
Can Anh Tuan has been succeeded in systematizing the theoretical base of issues related to brand and powerful brand building of Vietnam enterprises He has systematized and interpreted more clearly some theoretical issues of powerful brand building for enterprises; delimiting and clarifying the conception and connotation of the brand, brand valuation method, thereby making the conceptions of powerful brand, powerful branding order, evaluation criteria system and factors affecting the powerful brand building
Scientific studies “Building and development of brand for Vietnam Bank for Agriculture and Rural Development” by Dr Tran Ngoc Son (2009), has succeeded in developing solution system for the Bank for Agriculture and Rural Development, including five solutions:
Trang 73 With view of brand accession by Doan Cong Khanh in scientific research of ministry level (Ministry of Commerce, 2005), the term of brand is understood: “Brand is a man, has quality, personality, empathy, name, logo, appearance and color, etc Mentioning brand is to refer goods labels has come to life, was saved in the memory of consumers Thus, in fact, brand is the specific expression of the t goods label in commercial life, is something sticking to operations of an enterprise”
Dr Tran Thi Ly, in his doctoral dissertation: “Building and development of Hoa Loc mango brand, Cai
Be, Tien Giang”, have the same view of the approach to brand as the same of Doan Cong Khanh She has presented the theoretical basis of brand from the role, function and component, core value in production and operation activities of enterprises in the economy opening worldwide economic integration
With her research in a doctoral thesis on “Building and development of Hoa Loc mango brand, Cai Be, Tien Giang”, she has found that brand development is to resolve all beneficial relationship As the results of linear regression model, she has showed that the building and development of Hoa Loc mango brand last time was successful and built its reputation to consumers
Regarding to the brand development, Nguyen Thi Quy (2005), has evaluated that the brand development of commercial banks in Vietnam is still poor and mainly limited by competitive capacity
Theme “Branding for Trong Tin Garment Company Limited by increasing online touch points to brand”, Nguyen Thi Diep Anh, Department of Electronics and Commerce, University of Commerce (2011) This has mentioned the main contents is to propose some measures to develop the brand for Trong Tin Garment Company Limited by increasing brand touch points, however, it is not focused on perfecting the brand touch points
1.2 THE SITUATION OF FOREIGN STUDIES
Regarding to issues of brand development, now there are more works with different viewpoints Currently, according to the research and understanding of Student, there are some researches on frontal brand development for the banking system in Vietnam and only a few topics mentioning these problems such as:
According to research by Joe Marconi (1999), how to create a value-added brand in the global competitive market at present, it is to create an appropriate and effective strategy covering advertising, marketing, public relation and investigation He has compiled and given to the reader how to build a successful brand strategy and build loyalty to the brand
In Designing Brand Identity Book: An Essential Guide for the Whole Branding Team, given the main contents of design and development by designing application, introduced five stages and methodologies for the creation and implementation of effective brand identity
In The Brand Gap Book: How to Bridge the Distance Between Business Strategy and Design, considered the book offered the unified theory of branding
In Logo Design Love Book: A Guide to Creating Iconic Brand Identities, provided a guide for designers (and customers), those who want to understand the mystery behind the logos of a company, access to the brand identity system as an important touch point contributing to feelings to customers
In Building Better Brands Book: A Comprehensive Guide to Brand Strategy and Identity Development, seem to be an essential guide to create and develop brand towards building brand identity The problems of touch points and brand dialogue emphasized are conditions required for the service brand
In Brand Meaning book, Mark Batey, offered a holistic perspective and general view of how consumers search and how to create a meaning of brand It explored the underlying conscious and unconscious factors connecting people with products and brands The conception of traditional marketing and a meaningful framework of new brand were introduced
In How to Launch a Brand Book, Finien Consultancy, given a comprehensive guide to launch a brand: from the name to differentiate, how to design based on over a decade of professional experience transforming a new company of products and services from the idea stage to tangible brand reality
1.3 COMMON POINTS AND GAPS OF STUDIES
In addition to the results of previous studies has been achieved, there were still some gaps of previous authors have not studied, clarified and the thesis will conduct further research and clarify some gaps as follow:
Firstly, theoretical basis of the banking brand is still limited and needs to continue to improve the contents of banking brand It should continue to improve the theoretical basis of banking brand associated with competition in current business environment theoretically and particularly
Secondly, access theoretically and particularly the brand development of banking system and specifically set on banking services Building sequences and contents of developing a brand for a particular bank in Vietnam and Joint Stock Commercial Bank for Foreign Trade of Vietnam
Thirdly, expanding to research on the development of “brand touch points”, which are factors that can realize the worst points and best ones On that basis, approaches and solutions to enhance brand value is mostly effective
Fourthly, expanding to research and propose link between “internal brand” and “corporate culture”
Trang 84 Researching the relationship of “corporate culture” to develop the internal and external brand of commercial bank Fifthly, building a solution system based on the development orientation of Joint Stock Commercial Bank for Foreign Trade of Vietnam and mutual development of the banking sector in particular Researching the model “brand center” at Joint Stock Commercial Bank for Foreign Trade of Vietnam
Thesis has approached and clarified the above-mentioned gaps in the research and use of assessment tools of inside and outside environmental factors to assess the reality of the brand value of Joint Stock Commercial Bank for Foreign Trade of Vietnam compared to the competitors on the target market and found out its basic advantages
CHAPTER 2 SOME THEORETICAL ISSUES OF BRAND AND BRAND DEVELOPMENT OF
COMMERCIAL BANKS
2.1 OVERVIEW OF BANK BRANDS
2.1.1 Operational Features of Commercial Banks
2.1.1.1 Bank and bank forms
2.1.1.1.1 State Commercial Bank
By law on credit organizations, the banks is considered the type of commercial bank when it is established with 100% state-capital and commercial banks now have 51% of dominant shares defined as the state commercial banks
2.1.1.1.2 Joint-stock commercial bank: a bank is established as a joint stock company Individuals or organizations will hold a certain number of shares of the bank and cannot hold the executive management
2.1.1.1.3 Joint venture bank: is a form of capital contribution between foreign bank established in Vietnam and commercial banks in Vietnam
2.1.1.1.4 Foreign Bank Branch: a form of foreign bank is allowed to be opened and established in Vietnam
Such as: Citibank; Bangkok Bank; Deutsche Bank;
2.1.1.1.5 Commercial banks with 100% foreign capital:
This is a form of bank established as a limited liability company with one member or two or more members and is established in Vietnam with 100% charter capital owned 50% of charter capital
Table 1: The number of credit organizations in Vietnam in period 2010 - 2015
State commercial bank 5 5 5 5 5
Joint stock commercial bank 37 34 33 33 33
Firstly, the operations of the commercial banks are business activities aims to earn profitability and
profit objectives through monetary operations and banking services
Secondly, the operation of commercial banks have to comply with the law, it means that only if
commercial banks fully satisfies the strict conditions as prescribed in law, such as capital requirements, business plan, approval by the state bank, before being allowed to operate in the market
Thirdly, the operation of commercial banks is a form of business has a higher risk than other forms of
business, and often has a profound impact on other sectors and the entire economy
In addition, the banking sector has used the brand development strategies to evaluate effectively and increase brand value by receipt of feedback from consumers concerning its brand
2.1.2 Brand Approach and Bank Brand
2.1.2.1 Brand Approach
Brands can be understood the conception of product with the manufacturer's sign attached to the face, packaging of goods in order to confirm the quality and origin of product Brand is usually associated with ownership of the manufacturer and is usually authorized official trade representative Thus, brand is understood
Trang 9Also, for the brand conception of banking system, in view of the author, the “Brand of banking system
is understood as corporate brand consisting of many different subjects related closely to the brand of banking system and this have a influence on common brand through economical value as well as the image in the minds
of customers using products of finance- bank services supplied by bank system”
2.1.2.3 The Elements of a Brand
2.1.2.3.1 Brand Name: The first factor is known and helps confirm the existence of a brand Any success in
branding are closely related to a brand name Therefore, the brand name is one of the most important and difficult decisions before the introduction of a brand
2.1.2.3.2 Symbol: Symbol of a brand is the use of an image/symbol replacing the wants to reflect by an enterprise Typically, in the service business, sector will use the logo of that one
2.1.2.3.3 Logo: As defined by the law of Vietnam, the brand logo is a graphical element, sign, or symbol of a
brand or label accompanying its typeface, i.e it is put up in one set by unique word or arranged in a particular way A typical brand logo is designed to be recognized the immediate right of the viewer The basic notable features when designing are to make a difference, simple, easy to remember, easy to adapt, make sense, shape,
and most importantly, color
2.1.2.3.4 Slogan: The slogan is a message that an enterprise wants to target customers, and is usually a brief
prose succinctly describing the product benefits and reminiscent Slogan should reflect the characteristics of the image, product, service, brand promise, and the core value of an enterprise
2.1.2.3.5 Others: Studies have shown that if brand gives customers hear/see/taste/smell/judgment such brand
easily impresses customers and delves into their minds than other brands Therefore, the enterprises have continuously used the tools to expand the brand elements such as musical theme, packaging, music video, label, product design, etc
2.1.3 Brand Classification
According to the levels and form of expression, the brand is divided into 4 types as follows: According
to the coverage of the brand; According to branded objects; According to the leading role of the brand and According to form of expression
2.1.3.1 Classification according to the coverage of the brand: Including the types of the brand commonly used
for all types of goods and services of the enterprise; for individual type of goods and services of the enterprise; and may be the general brand of many enterprises in the same link The brand types include: Family brand,
Individual brand, Collective brand, and National brand
2.1.3.2 Classification according to branded objects: This is the form used for the tangible and intangible
products
2.1.3.3 Classification according to the leading role of the brand: Master-Brand: This is a strategy-oriented form of classification for the products and services Sub-Brand: This is an extension of the brand, in which its name still remains the link level with parent brand
2.1.3.4 Classification according to the form of expression: Traditional brand: This is the brand for products
and services in traditional commercial environment and has not much modern technology applications for traditional products and services The traditional products of the handicraft villages or areas are understood as
the traditional brands Electronic brand: This is utilization of the development of the Internet to build brands
using the tools on the internet The products and services advertised and introduced on the internet as Facebook, Google, Yahoo, etc are the products and services supplied only through the Internet and these are E-branded
products
2.1.4 Architecture and models of the brand
Classification of some architectural models of the brand can be divided into several groups, as follows:
2.1.4.1 Brand model by the product
2.1.4.2 Umbrella brand model
2.1.4.3 Horizontally extended brand model
2.1.4.4 Brand model by the commodity group
2.1.4.5 Brand-sharing brand model
2.1.4.6 Brand sponsorship brand model
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2.1.5 Functions and roles of the brand
2.1.5.1 Functions of the brand
Identifying and differentiating the brand: This is a very important and characteristic of the brand The
identifiability of the brand is not only an important factor for consumers but also for enterprises in the governance and administration of their activities
Providing information and guidance: This function is expressed in that through the images, language
or other signs, consumers may somewhat identify the value of use and utility of goods
Creating the perception and trust: This function is the perception of consumers about the differences,
the preeminence, peace of mind, comfort, trust, while consuming goods and services when choosing which that brand brings
Economic function: The brand carries both a current value and a potential value That value is
expressed most clearly when transferring the brand
2.1.5.2 Role of the bank brand
The brand builds the image of bank and products and services in the customer's mind
The brand is regarded as a commitment on products and services between customer and enterprise The brand helps the bank to segment the market
The brand makes a difference in the product development process
The brand benefits directly to the bank
The brand contributes to improve the competitiveness and financial capacity of the bank
The brand is a very valuable intangible asset of the bank
2.2 BRAND DEVELOPMENT OF COMMERCIAL BANKS
2.2.1 The concept and the need for brand development of commercial banks
2.2.1.1 The concept of brand development
By author: “Development of the bank's brand is harmonized combination of measures to increase competitiveness, business strategy and results of business operations of the bank through perferting business strategy, developing financial - banking products and services and constantly implementing activities to increase the perceived value, financial value, the coverage and dominance of the brand in order to influence the brand value of the bank in the minds of customers using financial - banking products and services supplied.”
Regarding the concept of brand development of the banking system, from the viewpoint of the author:
“Brand development of the banking system is harmonized combination of measures to increase the brand value
of the banking system and component parts in the system affecting the result of brand development of the entire system Measures taken are directed to not only Customers using financial-banking services but also affect the whole objects in the banking system, including staffs and officers, managers, partners, customers, media, And component parts themselves of the banking system, composing of branches, subsidiaries, associated companies and representative offfices, etc In addition, brand development of the banking system affects not only financial - banking products and services in the minds of customers, but also the entire business strategy, competitiveness and the overall development of the entire banking system”
2.2.1.2 The need for brand development of the banking system
2.2.1.3 Conditions for the brand development of commercial banks
The concepts of brand and brand building in the financial - banking sector are relatively different Commercial banks serve the number of customers with different needs so they face many difficulty in building
a brand related to all its customers Thus, due to the increasing concentration of the organizations for brand building, commercial banks determine commitment to positively manage their brands
In fact, the studies giving brand management skill of commercial banks are relatively new and based on the creative strategies and techniques Awareness of brand management relates only to consumer goods and by cognitive limitations, one realizes that commercial banks now have no ability to manage strong brands
We can find that, in almost all fields of business, banking and financial activities always play the most important role for any economic system of the countries The change and development of the banking sector reflect the true development of the economy Therefore, although commercial banks have no strong brand such
as the enterprises of business and production, service supply, etc., the role of commercial banks has far greater value in other sectors Therefore, to achieve these objectives more effectively, the role of the brand to commercial banks is to make further efforts to create a strong brand
2.2.2 Contents of brand development of commercial banks
2.2.2.1 Development of the perceived value of customers to the brand
This content aims to constantly improve the quality of products and services, the value added to the
Trang 117 products and especially enhance personal value to consumers when consuming branded products It is unlikely
to have a strong brand when the product does not obtain good feelings of the customers and of course, it will only have good feelings when the product has satisfied quality with appropriate supplementary services and makes consumers confident, feel excited when consuming them Development of the perceived values is not purely improving product quality but more important making the customers feel and see the differential values, outstanding features, personal values confirmed when consuming branded products
2.2.2.2 Development of financial value of the brand
This Content aims to develop brand links in various levels under various forms of links, including brand license and commercial franchise operations in order to increase the prestige, the level of influence and domination of the brand on many fields of activity and market areas, thereby increasing financial value of the brand Link activities can appear as Co-branding in brand communication (E.g., Discount products in Supermarket A if using payment services through Bank B, etc.) or forming brand alliances (for example, co-financing of projects, dominant capital contribution in the joint ventures, etc.) and the co-branded products (the co-branded credit cards for example)
2.2.2.3 Increasing the level of coverage and dominance of the brand
This content is aimed at strengthening the brand communication activities, including internal communications and outbound communications (such as advertising, public relations activities, exhibitions and other promotion activities)
2.2.3 Strategy and tools for brand development of commercial banks
2.2.3.1 Brand development strategy
Brand strategy are the orientations in the short term and long term for the bank in the process of brand development Through which to gain a competitive advantage compared with competitors in the market Also, it can be understood, the brand strategy is a plan made to achieve the objectives set out for the brand development
of the banks
2.2.3.1.1 Roles of brand development strategy
Brand development strategy plays a very important role for banking activities As follows:
- In the fiercely competitive environment today, thanks to the brand development strategy, the banks will
be oriented their brand consistent with more competitive environment
- Help to concentrate the resources for brand building
- Brand strategy will ensure consistency in implementation of the decision to build and develop the brand
- Prevent the risks that may occur to the banks in the process of building and developing brands
- Improve the efficiency of implementation of bran decisions through the discovery and remedy of the errors in making decisions on brand development
- Contribute to enhance brand value through image and trust of the public with branded products
2.2.3.1.2 The relationship of brand development strategy with the other strategies of the banks
2.2.3.1.3 Measurement tools of banking brand development strategy
On the basis of building brand development strategy, the implementation stages include: Brand strategy planning; Implementation of brand strategy; Review and assessment of brand strategy
2.2.3.2 Measures and tools for brand development of the banks
The development of brand development tools needs to achieve the objectives for the brand development, which is developing the perceived value of the customers; developing financial value of the brand, and developing the coverage of the brand Therefore, the main tools for banking brand development should focus on the following main tools: Brand development by communication activities; Brand development
by extension / refresh of the brand; and Brand development by the development of financial value of the brand
2.2.3.2.1 Brand development by communication activities
Brand communication is communication about the brand that means the information about the brand is exchanged and conveyed to the targeted audience of the communication Information about the brand is the information on the name, logo, brand identity system and the supporting information as additionally introducing and promoting brand Information is forever just information The assessment of this information is entirely dependent on the subjectivity of each person receiving this information
When it comes to brand communication activities, One can not fail to mention two popular communication activities currently as Below the line (BTL) and Above the line (ATL) To get effective communication strategy and brand development, banks need flexibility to use the tools effectively on a basis of combining both communication tools Above the line (ATL) and Below the-line (BTL)
2.2.3.2.2 Brand development by extension / refresh of the brand
2.2.3.2.3 Brand development by the development of financial value of the brand
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2.3 FACTORS AFFECTING THE BRAND DEVELOPMENT IN COMMERCIAL BANKS
2.3.1 Group of macro environmental factors: Several factors that may affect the business operations and
brand development of commercial banks include: Factor of political institution, environmental law and policy
regimes of the law
2.3.2 Group of sector environmental factors: From overview research, the evaluation criteria of brand
development are identified as evaluation criteria to develop the brand based on several components These
components can include distribution channel strategy, brand development and brand promotion plan
2.3.3 Group of internal factors of the enterprise: Some internal factors of commercial banks will decisively
affect brand development activities at commercial banks including: Bank management apparatus, Modes of Personnel and Salary, financial ability of commercial banks, the characteristics of service publication, technology and culture and business strategy of commercial banks Regarding Bank management apparatus: Commercial banks operate in the market mechanism, commercial banks' management apparatus plays a special role for the survival and development of the commercial banks, commercial banks' management apparatus must
simultaneously perform many different tasks
2.4 EXPERIENCES ON BUILDING AND PROMOTING HE BRAND OF SOME LOCAL AND INTERNATIONAL COMMERCIAL BANKS
2.4.1 Experiences of some international banks
2.4.3 Lessons learned for commercial banks
On the basis of experiences on implementing brand development of some local and international banks, we can draw some lessons for brand development of Trademark Development of Joint stock commercial Bank for Foreign Trade of Vietnam System - Vietcombank in particular and commercial banks in general, as follows: First, perfecting brand strategy associated with business strategy of the banks
Second, building and implementing a unified brand identity system system-wide and internationally Third, developing and attracting human resources of high quality
Fourth, expanding cooperation and joint venture with other commercial banks and constantly expanding and developing local and international network
Fifth, building enterprise culture and grasp thoroughly to each staff on how to communicate internally and with customers
Sixth, continuous innovating, developing and improving the quality of products and services
Seventh, having specialized sections in implementing brand development
CHAPTER 3 CURRENT BRAND DEVELOPMENT OF VIETCOMBANK SYSTEM
3.1 GENERAL INTRODUCTION OF VIETCOMBANK
3.1.1 History of the formation and development
3.1.1.1 History of the formation and development
3.1.1.2 The organizational structure of Joint Stock Commercial Bank for Foreign Trade of Vietnam
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Diagramme 3.1 : Organisationnel Structure of Vietcombank System Management apparats is structured and organized as follows :
Diagramme 3.2 : VietcombankStructure of Executive Management Model of Vietcombank
3.1.2 Characteristics of the resources of the Joint Stock Commercial Bank for Foreign Trade of Vietnam
3.1.2.1 Characteristics of human resources
With the view that human resource is a core element deciding the success of the bank, Vietcombank has always implemented policies of recruitment and use of human resources seriously and arrangement of personnel consistent with their working capacity By the end of October/2014, the total number of officials and employees
of Vietcombank reached more than 14,000 people - Vietcombank's Leadership Board Vietcombank has always seen it as key to the bank's success throughout the years
3.1.2.2 The financial resources
Financial resource of the commercial banks is the financial ability of the Banks to perform and develop business activities that are most effective and ensure the stability of production and business operations The financial resources of the bank are not only the financial resources to ensure business activities of the bank but also the ability to exploit, manage and use these resources effectively serving for business operations Financial resources not only demonstrate current strength but also demonstrate the potential, prospective financial strength and development trends in the future of the bank
3.2.2.3 The customer relations and economic links
In the world, currently, Joint Stock Commercial Bank for Foreign Trade of Vietnam has had dealer
Trang 1410 banking transaction relationships with approximately 1,700 banks and bank branches in over 120 countries and territories, in which Joint Stock Commercial Bank for Foreign Trade of Vietnam has always placed primary dealer relations with leading banks in each country and territory In Vietnam, Vietcombank does have relationship with all banks operating in Vietnam including: 4 state commercial banks; 34 joint-stock commercial banks; 4 Joint Venture Banks and 50 branches of foreign banks
3.1.3 Introduction to major products and services of Vietcombank
3.1.3.1 Services for individual customers
3.1.3.2 Services for enterprise customers
3.1.3.3 Services for financial institutions
3.1.3.5 Other Services
3.1.4 Vietcombank's business results through some recent years
3.1.4.1 Regarding general business result of Vietcombank from 2010 to 2014
During this period, Vietcombank continued to have many innovations in business operations and in management activities Parallel to the efforts to improve asset quality, promote safe and efficient credit growth, control credit quality, the acquisition and disposal of bad debts continued to be focused on promoting The service business operations, foreign currency business had good growth The operational safety targets were guaranteed, apparatuses of audit, inspection and control continued to be consolidated and strengthened The result of business operations of Vietcombank during the period of 2010-2014 were as follows:
Chart 3.3: Vietcombank's total assets over the years from 2009-2014
Chart 3.4: Vietcombank's Capital mobilization from the economy over the years from 2009-2014
Vietcombank's Capital mobilization has had relatively high growth over the years, achieving this result is due to flexible and sensible capital mobilization interest rate operation which impacts to lead the market; further improvement of the efficient capital sources and capital use In the period of 2010 - 2014, the average mobilization growth rate reached 18%, higher than the average growth rate of the previous 5 years (13.8%) and higher than the average growth rate of the entire banking sector of 13.6% That confirmed the belief of the market for Vietcombank's prestige and brand