Solutions to build and develop thanh nghia brand in the garment field of thanh nghia company limited

company achieve this goal, the author conducted the study "Solutions to build and develop Thanh Nghia brand in the garment field of Thanh Nghia Limited Company" as her master thesis.. Th

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

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LÊ LINH CHI

SOLUTIONS TO BUILD AND DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ LINH CHI

SOLUTIONS TO BUILD AND DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG

HÀ NỘI - 2019

DECLARATION

The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article

The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Date………

Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills

My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process

My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support

Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and co-workers to make this essay more complete

Thank you very much./

Ha Noi, 2019

TABLE OF CONTENTS

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF ABBREVIATIONS i

LIST OF TABLES ii

LIST OF CHARTS AND FIGURES iii

INTRODUCTION 1

1 Rationale of the study 1

2 Literature review 2

3 Research objectives 5

4 Research object and research scope 6

5 Research methods 6

6 Contributions of the thesis 8

7 Organization of the thesis 8

CHAPTER 1: THEORETICAL FRAMEWORK ON BRAND, BUILDING AND DEVELOPING BRAND 9

1.1 Overview of brand 9

1.1.1 Concept of brand 9

1.1.2 Types of brand 10

1.1.3 Roles of brand 12

1.2 Branding and brand development 15

1.2.1 Concept of branding and brand development 15

1.2.2 Contents of branding and brand development 15

1.2.3 Factors affecting branding and brand development 25

CHAPTER 2: REALITY OF BRANDING AND DEVELOPING THANH NGHIA BRAND OF THANH NGHIA CO., LTD 28

2.1 Introduction of Thanh Nghia Co., Ltd 28

2.1.1 Process of foundation and development 28

2.1.2 Production process 29

2.1.3 Organizational structure 29

2.1.3 Business results 31

2.2 Reality of branding and developing Thanh Nghia Brand of Thanh Nghia Co., Ltd 38

2.2.1 Identifying the vision and mission of Thanh Nghia brand 38

2.2.2 Positioning Thanh Nghia brand in the market 39

2.2.3 Identifying the identity system of Thanh Nghia brand 42

2.2.4 Organizing marketing and communication activities to promote Thanh Nghia brand 45

2.2.5 Evaluating Thanh Nghia brand 52

2.2.6 Protecting Thanh Nghia brand 55

2.3 Evaluation of branding and developing Thanh Nghia brand 56

2.3.1 Achievements 56

2.3.2 Limitations and causes 57

CHAPTER 3: SOLUTIONS TO DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA CO., LTD 60

3.1 Orientations in business development and orientations in developing Thanh Nghia brand 60

3.1.1 General development orientations of Thanh Nghia Co., Ltd 60

3.1.2 Orientations in developing Thanh Nghia brand 62

3.2 Solutions to develop Thanh Nghia brand 63

3.2.1 Building a brand positioning strategy 63

3.2.2 Completing the brand recognition system and improving the value of products for customers 65

3.2.3 Completing marketing and communication activities 66

3.2.4 Registration for brand and industrial design protection inland and abroad 71

3.2.5 Establishing a department specializing in branding and raising awareness of brand for employees in the company 72

3.3 Recommendations 73

CONCLUSION 76

REFERENCES 78

APPENDIX 80

i

LIST OF ABBREVIATIONS Abbreviation Full form

Co., Ltd Company Limited

ii

LIST OF TABLES

Table 2.1: Business results of Thanh Nghia Co., Ltd 32

Table 2.2: System of machinery and equipment 34

Table 2.3: Vision and mission of Thanh Nghia Co., Ltd 38

Table 2.4: Target customers and market positioning 41

Table 2.5: Recognition system of some brands 43

Table 2.6: Basis for price calculation 45

Table 2.7: Payment discount policy of the company 46

Table 2.8: Annual change in the average price of the company 47

Table 2.9: Revenue structure of the company’s product 50

Table 2.10: Customers’ evaluation on Thanh Nghia textile and garment products 53

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LIST OF CHARTS AND FIGURES

Chart 2.1: Main market of the company 37 Chart 2.2: Costs for online marketing activities of the company 51 Chart 2.3: Results of survey with customers on level of brand recognition 52

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INTRODUCTION

1 Rationale of the study

The building, developing and maintaining of the brand value have been studied by enterprises around the world since the 1970s of the 20th century Brand is an intangible asset of great value to enterprises, bringing stability, developing market share and enhancing competitive advantages of enterprises

in the increasingly competitive market

In the current process of integration into the world economy, enterprises and state management agencies of Vietnam have begun showing concern about the issue of brand building and development Many Vietnamese businesses have been aware that in addition to efforts in improving and perfecting the quality of their products, services, packaging specifications and logos, brand elements, if designed properly in line with customers’ mind will

be improve the competitiveness of the products

Building and developing the brand for garment products are also particularly important when our country's textile and garment market is having rapid growth with a very high annual growth rate (average growth rate of 30% per year) In particular, in the context where the CPTPP agreement is signed and take effective from the end of 2018, the building and development of brand for garment enterprises are important for the development of the economy

Thanh Nghia Co., Ltd is also one of the enterprises operating in the field

of textiles and garments The company was established in 2003 with the main products including high quality knitwear such as pants, shirts, hats and wool scarves The products are completely handcrafted or are made with modern technology and exported to the markets of Poland, Czech Republic, Hungary, Germany, Italy, United Kingdom and the USA At present, the production capacity and management level of the company is quite high The company has met big orders with competitive prices and accurate delivery time, which

company achieve this goal, the author conducted the study "Solutions to build and develop Thanh Nghia brand in the garment field of Thanh Nghia Limited Company" as her master thesis

2 Literature review

In the process of working on the thesis, the author searched for papers related to the thesis and reviewed the following research works:

The research by Trinh Hoang Anh and Luu Anh Duc Hai (2016) on

"Building and developing the Traditional Fish Sauce Brand in An Giang Province, Case Study of Dinh Huong Fish Sauce": The research was carried out with three objectives: (1) Analyzing the reality of marketing activities and the process of building Dinh Huong fish sauce brand, (2) Evaluating the recognition level of Dinh Huong fish sauce brand of customers in Long Xuyen City, (3) Proposing solutions to develop the brand of Dinh Huong fish sauce The methods in the study included exploratory factor analysis, Cronbach's Alpha reliability coefficient and Multi linear regression

analysis ̣The sample was selected using the convenient sampling method with the sample size of 222 The results showed that the recognition level model of Dinh Huong fish sauce brand consisted of two groups of factors: basic brand

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recognition and recognition of brand based on product and packaging The study proposed some main solutions to develop Dinh Huong fish sauce brand such as brand promotion, 4P Marketing and Human Resources

Le Thi Ngoc Trinh’s (2014) study on "Branding Vinh Tien notebooks": The research focused on evaluating the reality of branding of the company through the brand building and brand copyright registration In addition, the author also evaluated the situation of brand development of the company's products through brand promotion activities Based on the analysis of the reality, the author summarized the achievements and limitations of the building and development of the company's brand and offered solutions to develop the brand of the company’s products in the near future

Huynh Thi Thuong’s (2014) research on "Branding Goldmilk powdered milk of Van An Production and Trading Co., Ltd": The main contents of the research were systematizing the theoretical framework of brand and analyzing the reality of brand development of Goldmilk powdered milk in the past few years The study also looked at the factors affecting the vision, mission, core values and objectives of Goldmilk brand such as market segmentation and identification of target markets, brand positioning, current brand development strategy and implementation of brand development policies More importantly, this research evaluated the results through surveys with customers and proposed some solutions to build and develop the brand of Goldmilk powdered milk

Doan Van Sinh’s (2016) study on "Developing Petrolimex Gas brand": The study proposed steps to develop the Petrolimex Gas brand of Danang Petrolimex Gas Co., Ltd in the period of 2010-2015 Da Nang Petrolimex Gas Co., Ltd entered the market very early and had a wide distribution network, good facilities, good financial ability and high quality products However, Da Nang Petrolimex Gas Co., Ltd still faced many difficulties since its

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development had not been in line with its potentials and advantages The strengths and advantages of Petrolimex Gas products and brand had not widely been known and selected by many customers The author also proposed some solutions to develop the Petrolimex Gas brand of Da Nang Petrolimex Gas Co., Ltd

The study by Institute for tourism research and development in 2013 on

"Solutions to develop tourism brand in Vietnam": The research was conducted to clarify the scientific basis and propose solutions to develop the tourism brand of Vietnam to meet the trend and development requirements of the tourism industry in the coming period The study approached a comprehensive research process from theory to reality, international comparison and applied methods and techniques in brand research, market research and promotion The study used two-dimensional analysis and evaluation: on the one hand assessing the reality of developing products, services and process of forming brand at national and local levels; on the other hand studying the market perception of Vietnamese tourism brand through surveys and interviews with domestic tourists, foreign tourists, state and enterprise managers to find out the brand recognition of the market The results were then compared with other competing countries in the region to draw the core elements of Vietnamese tourism brand that were best recognized The research also paid attention to the development orientations

of the overall strategy and planning of Vietnam's tourism to 2020, vision to

2030 to propose the solutions to develop the tourism brand of Vietnam

In addition, many other studies have been conducted on the issue of brand building and development such as the research by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002) on "Studying the components of brand value and measuring them in the consumer goods market in Vietnam", the research by Pham Thi Thu Huong (2015) on "Brand Development at Vietnam

there have been no studies on "Solutions to build and develop Thanh Nghia brand in the garment field of Thanh Nghia Limited Company"

Therefore, based on the theoretical overview and related research papers, the author re-organized the theoretical framework on brand, components of brand, factors affecting the building and developing of brand In addition, the author evaluated the reality of building and developing Thanh Nghia garment brand through the company's reports and surveys with customers From the achievements and limitations, the author came up with the solutions to build and develop the company’s brand in the coming time

3 Research objectives

General objective

The research aimed at studying the process of building and developing brand of Thanh Nghia Co., Ltd in the field of apparel and finding out the limitations to propose solutions to develop the brand of the company in the next stage

Specific objectives

- Systematizing the theoretical framework related to building and developing brand at enterprises

4 Research object and research scope

- Research object: The object of the study was the activities of building and developing Thanh Nghia brand of Thanh Nghia Co., Ltd

- Research scope:

+ In terms of time: Data was collected in the period of 2015-2017

+ In terms of space: The research was conducted at Thanh Nghia Co., Ltd + In terms of contents: The thesis focused on studying the process of building, developing and protecting brand of Thanh Nghia Co., Ltd including identification of brand vision and mission, brand positioning, identification of brand identity system, organization of marketing and communication activities to promote the brand, brand evaluation and brand protection and development

5 Research methods

5.1 Research materials

To accomplish the research goal, the author studied the following sources: + Materials from previous studies: The author synthesized, analyzed and selected information from dissertations, theses in business administration major and articles published in reliable journals in the whole country to study and build the theoretical framework for the study The theoretical contents of the research focused on the overview of brand and issues of brand building and development: concepts of brand and factors affecting the brand building and development of enterprises

+ Documents from Thanh Nghia Co., Ltd: Results of business activities

of the company in the period of 2015-2017, organizational structure of the

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company, reality of building and developing brand of the company (determining the brand vision and mission, brand positioning in the market, identifying the brand identity system, organizing brand marketing and communication activities, evaluating and protecting Thanh Nghia brand

5.2 Survey

Survey was used to find out customers’ assessment of Thanh Nghia textile and garment brand: customers’ assessment of brand identity level and customers’ assessment of Thanh Nghia brand

- Survey contents:

+ Checking customers’ brand identity of Thanh Nghia garment brand compared to other garment brands: May 10, TNG, Viettien, Hanosimex, Mattana, Nha Be, Thai Son, Gia Dinh, 10/10, 29/3, Vinatex, Mai Anh, Quynh Hoa, etc

+ Checking customers' assessments on Thanh Nghia garment brand through 9 criteria presented in Appendix 1

- Survey respondents: were customers who were using the textile and garment products of Thanh Nghia brand in the international garment market The questionnaire was designed and posted on the website of Thanh Nghia Co., Ltd Through Google, the survey questionnaire was translated into different languages, depending on the geographic locations where the customers visited the website

- The total number of responded questionnaires was 510, in which 110 were invalid Therefore, the author conducted the study with 400 questionnaires

5.3 Expert methods

In the thesis, the author used expert methods through direct interviews with two leaders of the company, including the director and deputy director The purpose of the expert survey was to clarify the advantages and

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disadvantages of the company in building and developing Thanh Nghia brand

so that the author would have better and more appropriate viewpoint and when approaching the research topic

6 Contributions of the thesis

- The thesis studied the reality of construction, protection and development brand at Thanh Nghia Co., Ltd and pointed out the achievements

as well as the shortcomings to overcome

- The thesis proposed solutions to overcome the limitations in order to develop and protection Thanh Nghia brand in the coming time

7 Organization of the thesis

The thesis consisted of 3 chapters

Chapter 1: Theoretical framework on brand, building and developing brand Chapter 2: Reality of building and developing Thanh Nghia brand of Thanh Nghia Co., Ltd

Chapter 3: Solutions to develop Thanh Nghia brand in the garment field

of Thanh Nghia Co., Ltd

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CHAPTER 1: THEORETICAL FRAMEWORK ON BRAND,

BUILDING AND DEVELOPING BRAND

1.1 Overview of brand

1.1.1 Concept of brand

The term brand appeared and was used centuries ago, starting from developed industrial countries and later in Asian countries In Vietnam, this economic term has only been mentioned in the last few years with different approaches:

According to the American Marketing Association, a brand is a name, term, design, symbol, a picture or a combination of the above elements to identify a product or service (or a group of products or services) of a seller (or

a group of sellers) and distinguish these products (services) from those of competitors From this point of view, the brand can be seen as a component

of the product with the main function of distinguishing the products and services of an enterprise from the products and services of its competitors (Duong Ngoc Dung & Phan Dinh Quyen (2005) This viewpoint shows that the brand is made up of two parts:

- Verbal part: includes readable elements that affect the listener's hearing, such as enterprise name, product name, slogan, music, special lyrics, etc

- Non-verbal part: includes non-readable elements that can only be perceived by eyesight such as pictures, symbols, colors, design patterns, packaging, and other perceptual elements

According to Assoc Prof Dr Nguyen Quoc Thinh, a brand is one or a set of signs to identify and distinguish products, enterprises and the image of products and enterprises in the mind of customers and the public In this viewpoint, the product is only one component of the brand, providing primary functional benefits to customers (Duong Huu Hanh, 2005) According to this viewpoint, a brand is the combination of tangible and intangible attributes

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- Tangible attribute: This attribute is expressed in the product functions

It provides functional benefits to customers and satisfies the basic needs of customers

- Intangible attribute: is considered as emotional components, giving customers symbolic values such as symbolic location and psychological benefits such as brand position, brand personality, country or the name of the place where the products are manufactured

In general, a brand includes all the elements that bring values to customers when using a branded product or service The brand elements of a product or service are often expressed in the form of intellectual property objects such as trademarks, trade names, places of origin, industrial designs, inventions and useful solutions In addition, the brand of an enterprise includes factors that can not be classified as a specific element for registration

of protection such as prestige of the enterprise, working style of employees or the corporate culture

1.1.2 Types of brand

Like the definition of brand, the classification of brands also has many different perspectives People can divide brands into: Goods brand, product brand, corporate brand, service brand, group brand, collective brand, electronic brand, main brand, sub-brand, additional brand, etc Each kind of brand will have different characteristics and represent a particular set of goods Therefore, the strategy for building and developing each type of brand should be conducted in a different way

According to the brand management and marketing approach, brands are divided into individual brand, family brand, collective brand (group brand), and national brand

* Individual brand (also known as personal brand) is the brand of each

category or name of specific goods or services With the individual brand,

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each kind of goods has its own brand; therefore, an enterprise that produces a variety of goods can have many different brands For example, Mikka, Mr Tho, Hong Ngoc, etc are the brands of Vietnam Dairy Products Joint Stock Company (Vinamilk)

Individual brands usually carry messages about specific goods (such as superiority, real utilities, and so on) and are shown on the packaging This brand also has a unique personality which gives consumers a chance to choose even if they are the same brands of the same company (For example, Sunsilk, Clear, Dove are all Unilever's products, but there is a variety of choices for consumers due to the different attributes that are created for each set of goods In fact, not every enterprise creates individual brands for their goods

* Family brand: is a common brand for all goods and services of an

enterprise All goods of different types of the enterprise have the same brand name For example, the brand Honda is assigned to all Honda products including motorcycles, cars, marine machines, motor saws, etc

A family brand has high generalization and must represent all types of goods of the enterprise Once the representation and generalization are violated or lost, people have to think of creating individual brands for each type of goods or services so that they do not affect the family brand A family brand can appear independently on the goods and may be associated with individual brand or national brand

The general trend in many enterprises is that the family brand is built based

on the the transaction names of the enterprises (Biti's, Vinalimex, Vinaconex), the distinction in the trade names of the enterprises (Dong Tam, Bao Minh, Huu Nghi), or the names of founders of the enterprises (Honda, Ford, Suzuki) Therefore, in many cases, the family brand is called corporate brand

* Collective brand (also known as group brand) is the brand of a group

of goods or some categories of goods that may be produced and sold by

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different enterprises (usually in the same geographical location, associated with certain elements of origin such as Hung Yen longans, Thanh Ha lychees, Vinh oranges, etc.) Collective brand can also be the common brand for goods

of different enterprises in the same industry association

Collective brand is similar to the family brand because it has high generalization and representation However, the main difference is that the collective brand is often associated with different types of goods of different enterprises in a certain economic, technical affiliation and the representation

is developed in depth rather than the width of the commodity spectrum

* National brand: is the brand that is assigned to products and goods of a

particular country (it is usually associated with a certain criterion depending on the country in each stage For example, Thai’s Brand is the national brand of Thailand; Vietnam Value Inside is expected to be the national brand of Vietnam The characteristics of a national brand are usually very general and abstract, never stand independently, and are always associated with individual brands, group brands, or family brands Many people think that the national brand is a kind of certified brand In fact, the national brand is always shaped

as a geographical direction based on the prestige of many types of goods with different brands

1.1.3 Roles of brand

- For enterprises

Brand helps enterprises in market segmentation, positioning and product differentiation Each product with different brands gives different values to the customers The process of market segmentation requires the right brand for each segment to shape an individual value for the consumers The brand is used to identify market segments Therefore, the brand contributes to defining each market segment more clearly

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Brand creates favorable conditions for enterprises to find new markets, attract new customers, facilitate the distribution of products and reduce marketing costs

Brand is the basis for enterprises to create the image in the mind of consumers When a new brand is available on the market, it does not have a place in the mind of the consumers Through real experiences, consumers will gradually feel the value of the brand more clearly through the quality of the products and services as well as the symbols, logos, slogan, etc

Brand is the commitment of enterprises to the customers and the public

It helps enterprises build and maintain customer loyalty; Brand is also a tool for enterprises to build competitiveness, especially when the brand has prestige in the market

Brand helps the management and marketing activities of enterprises become easier It is the basis for the State to protect the enterprises Thanks to the protection of the State, the brand will avoid the infringement of counterfeit goods, which enhances the prestige of the enterprises

Brand helps enterprises attract investment and talents, exploit the working ability and creativity of the staff; A strong brand helps enterprises confirm its leading position in the market and extend the life cycle of the products

- For consumers

Brand is the recognition signal that helps consumers select and evaluate the products Consumers are always concerned about the quality and benefits that a product brings However, when they have to make a buying decision, most consumers pay attention to the brand Based on the brand, consumers compare the quality of a supplier's products with those of other suppliers to see whether they are reputable and interested in by other consumers Normally, facing similar goods, consumers usually choose a product with a famous brand or their favorite brand

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Brand makes consumers feel secure because of the quality assurance and less risks when they use the products When consumers choose a brand, they trust the quality and price of that goods They always hope to minimize the risks in consumption such as material risks, financial risks and physiological risks

Brand affirms the image of personal value for consumers A well-known brand will give customers some personal value in the community That value can be a feeling of being more luxurious, more fashionable or expresses their personalities when they use the products It can be seen that enterprises only offer strategies to position and create the brand image in the mind of customers It is the customers that make the brand become more meaningful and different

Brand also helps consumers save time, energy in buying or re-selecting the products They do not have to spend too much time and effort finding out about a certain product

In addition, consumers are legally recognized in cases of exchange, sale and transfer of copyrighted and protected brands

- For the State

Brand helps to attract investment Once a brand is well-known, investors will not hesitate to invest in the enterprises Business partners are also willing

to cooperate in business and supply raw materials and goods The expanded production will create jobs for the people and contribute to reducing unemployment In addition, brand also helps improve the competitiveness for the industry and the country

That enterprises create strong brands will contribute to the development

of economy and society and create a higher standard of living for the people Brand is the basis for the State to manage, regulate and even orient the development for the economy

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1.2 Branding and brand development

1.2.1 Concept of branding and brand development

Building and developing brand is the process of creating an image of goods or services in the mind and perception of consumers This is a long-term process with the determination and ability to maximally utilize resources and measures so that the products will have a position in the customers’ mind (James R Gregory, 2004)

The process of building and developing brand is a series of continuous and mutually affective operations based on the principles of marketing strategies and corporate governance The basic operations include: Creating brand elements (designing brand elements), promoting the brand image to target customers, applying measures to maintain the brand, refreshing and developing the brand image, and so on (Le Dang Lang, 2010)

The process of building and developing the brand of an enterprise must satisfy the requirements: Ensure the long-term consistency from all levels and efficient use of resources; Ensure the full awareness of customers about the brand; increase the loyalty of customers; Frequently evaluate and keep track of the brand property through research to develop, maintain and adjust the brand

1.2.2 Contents of branding and brand development

1.2.2.1 Identifying the vision and mission of the brand

Brand vision is the development direction of brand that can be achieved

in the future Vision is a focused, inspirational and understandable report Vision is not only a statement and the pressure from the management, but also encourages and motivates the members in the organization to strive to achieve their goals Brand vision is considered valuable and effective when it has the following characteristics: image, ambition, feasibility, focus, flexibility and communicability (Patricia F Nicolino, 2001)

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Brand vision is not about setting high goals and challenges It is important to identify the brand vision of an organization, but it is more important to make people understand and implement the vision This process does include not only writing, communicating, talking, etc but also creating a meaningful connection for all members of the organization That is called the sharing of brand vision

Brand mission is a brief concept to indicate the purpose of the organization and the brand Identifying the right brand mission is very important to the success of an organization Brand mission is the basis for choosing the right goals and strategies for enterprises In addition, it creates and strengthens the corporate image in within the social community as well as creates the attraction

of the target customers The reality shows that enterprises which are cautious in developing a proper mission statement are often more likely to be successful than enterprises which underestimate this issue

In the process of foundation, existence and development, enterprises are affected by both objective and subjective factors These factors can create favorable conditions or challenges for enterprises Enterprises need to build a brand vision and mission to identify the "roadmap" and action plan They should take advantage of opportunities, overcome challenges to fulfill the mission, and create the basis to improve operation efficiency and expand business market share

1.2.2.2 Brand positioning

Brand positioning is the process of formatting and building the benefits and value of brand image so that they are suitable for the target customers Brand positioning is carried out based on the overall strategy, unit-level strategy, and departmental strategy that the enterprise chooses A clearly-positioned brand will create a firm position in the heart of the public and thereby form the value of the brand Otherwise, it will be eliminated or

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replaced by another brand Brand positioning is an important part of the branding strategy determining the success or failure of the enterprise (Bui Van Quang, 2015)

Choosing different positioning models depends on the specific capability and management system of each enterprise Once a positioning model has been selected, the whole company system is required to be organized according to the processes that serve the chosen positioning model According to Philip Kotlor, enterprises can choose one of the following positioning models:

Broad positioning is conducted based on the competitive strategy that enterprises choose When enterprises conduct broad positioning for the product brand, they can choose one of three ways: a brand with low prices, a brand with unique products (distinct from the others), and a brand of products that only serve specific markets Normally, enterprises do not have enough resources to lead in all areas, so they have to choose between possibilities and focus on one aspect to lead in that respect

Positioning specific characteristics for brand: Based on the reality and business strategy of the enterprise, it is possible to choose from the following positioning models: Positioning by benefit (products promising a certain benefit), positioning by attribute (positioning based on some attributes or characteristics of the products), positioning by use (products are positioned to

be best for a certain use), positioning by type (enterprises can identify themselves as the leaders in a certain product); positioning by quality and price (products are positioned at a specified quality or price level)

Brand value positioning: When positioning the brand value, enterprises can select one of the following ways of positioning:

Better quality, higher price: The products of the later generation with superior features to the previous ones will create the image of style, prestige and quality in the mind of consumers Therefore, these products are usually

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sold at higher prices However, they are still accepted by consumers although the prices often far exceed the actual increase in quality This positioning model is usually appropriate for brands which are well-known in the market Same price, better quality: The products are claimed to have better attributes or features and have same performance as other quality products, but the sale price does not change

Same quality, unchanged price: Enterprises use this positioning model in case they want to reduce prices to attract customers

Better quality, lower price: This positioning model is usually applied when there is fierce competition with competitors for the same type of product or service

Positioning for total value by product brand: This positioning method is considered a comprehensive positioning method, covering all single positioning constituents to produce the maximum value for the customers Customers always want to get the most attractive total value in relation to the cost they have to spend to own and consume products

1.2.2.3 Identifying the brand recognition system

Brand name

The criteria used to select a brand name (in other words, the trademark):

Be easy to remember: Simple, easy to pronounce, easy to spell; Be meaningful: Close, meaningful and relevant; Be easy to exchange: The brand

name can be used for many products in the same category and can be

acceptable in different territories and cultures; Be easy to adapt: easy to rejuvenate, modernize; Meet the protection requirement: distinctive, not

duplicate or similar to the brands of other companies who have applied for protection or have been protected

It should be noted that very few brands meet the above criteria absolutely because in some situations they may become contradictory So

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when naming their brand, enterprises will choose the most important criteria depending on their strategic goals

Four ways of naming: Use self-generated words: Self-generated words

from letters make a new word which can be pronounced but does not exist in the

dictionary; Use common words: Common words are words that exist and have a meaning in a certain language; Use compound words: Compound words are a combination of existing words and recognizable syllables; Use acronyms:

Acronyms are usually made up from the initial letters of the company name Acronyms can also be pronounced and carry a certain message

Logo

A logo can be a drawing, a presentation of words (enterprise name, product), or a combination of pictures and words to create a brand identity Logo is the symbol and the "face" of the brand

Normally, specialists apply the following three ways of designing logos:

Stylize the brand name: Create a specific design for the brand name or the company name; Create a personal image: Stylized images make people think

of the brand name, company name or business area; Combine the personal image and brand name: The logo is presented by drawing of the brand name

Due to the high graphics, a logo is easy to be identified and it will increase the ability to distinguish the products In addition, logos do not contain the meaning of a particular product, so they can be used for many different types of products Enterprises often create logos as a means of expressing the origin of products and demonstrating their commitment to quality

Criteria for selecting logos

When choosing the business logo should note the criteria: Logos bearing the image of the company: The image elements need to express the difference and the emergence of enterprises; Logos have a specific cultural meaning; Be easy to understand: Graphic elements need to contain common images and Logos must ensure the balance and harmony, forming a unified whole

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In addition to these elements, when designing logos, designers should remove the symbols that have become common (unable to distinguish, unprotected) in one or more areas For example: a dragon logo for traditional products such as green bean cakes, green rice cakes; a giraffe logo for tourism services; a globe logo for service industries in general, etc To a certain extent, these symbols have a specific cultural meaning, are close to the consumers and are easily integrated in the process of brand development However, when they have become more common and widely used, they lose the ability to distinguish brands and so they are no longer effective in the branding

Help enterprises improve their brand positioning and show the difference; Be a tool for enterprises to assert their reputation and position in the market; Provide descriptive and persuasive information about enterprises Requirements when designing a slogan:

When designing the corporate slogan need to ensure the requirements: Have rich contents; express the ideas of enterprises or the uses of products; Be short, easy to remember and not duplicate; Be attractive, with high aesthetics and

be consistent with customs; Be easy to switch to another language

Melody

Melody is a component of brand that is represented by music Melody often attracts listeners and makes the advertisements become attractive and

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lively Melody can be a song or an extension of the slogan Melody can increase customers’ perception of the brand name by repeating it in the song However, due to its inherent attributes, melody is not as transferable as other elements Melody can convey the benefits of the brand but in indirect and abstract form In addition, it can not add to the logo or symbol or be attached

to product packaging, panels or posters Requirements when designing a piece

of music: There are rhymes; Be brief; Be easy to repeat and be good

Packaging design

Packaging is the outer bag of a product, which is what customers sees first when they approach the product Packaging is not only used to preserve the product but it is also a tool to promote the brand Therefore, designing a nice and safe packaging is a very important factor

Requirements when designing packaging: Help to create awareness; Help to distinguish the products; Have beautiful color and attractive design; Convey the descriptive and persuasive information about the products; Be convenient in transporting and storing the products; Be convenient in using the products

Personality of the brand

Personality is a special form of expression This is a visualization of the brand It can be associated with a specific person or style Brand personality can be expressed in a variety of ways, either through an animal or a cartoon character, through a well-known novel, or a living person However, personality through animals is much more used, especially on the product packaging Points to consider when designing brand personality:

If the brand personality becomes too attractive, it can reduce customers’ attention to other elements of the brand, thereby reducing the brand recognition

If the brand personality is expressed through a specific person, for example, a celebrity, the image needs to be renewed frequently since the public’s affection and attitude towards this image, on the one hand, create positive effects, but on the other hand, create a lot of risks

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Combining elements of brand

Each element of the brand has its strengths and weaknesses Therefore, it

is necessary to integrate the elements together to achieve the goal in each specific case When creating and developing a brand, an enterprise needs to select and combine these elements most effectively to create a strong brand

In addition, the selection of factors needs to ensure that these factors can support and enhance each other A combination of closely integrated elements will create a prominent brand feature This feature then enhances the brand's perception and image in the mind of consumers and the public

1.2.2.4 Organizing brand marketing and communication activities

Building the brand elements as well as registering for brand protection is just the beginning of the road to the branding If enterprises just stop here, they only own a brand that has no value or is only valid in terms of form To make it a strong brand, enterprises needs to continue its path, try to make the brand approach customers and stay in their minds In other words, they have

to advertise and market their brand In order to have a highly effective advertising strategy, it is essential to start by researching the psychology of target customers, supporting media and competitors' policies

There are nine basic ways to promote a brand: (1) Advertise on the media such as television, newspapers, radio and mass media; (2) Direct advertising; (3) Outdoor advertising; (4) Advertise at the selling points in the catalogs, posters; display the products; (5) Offer promotion to distribution channels; (6) Offer promotion to end consumers; (7) Sponsors competitions, programs and events; (8) Use public relations; (9) Organize direct sale

1.2.2.5 Brand evaluation

After each stage of communication, enterprises must evaluate the effectiveness of the campaign, and enterprises must always listen to and

With the above information, enterprises will assess the level of customer satisfaction, determine the strengths of the brand and the elements that need to

be changed to suit the preferences and tastes of customers get the sympathy of the community

The registration for brand protection has the following five purposes: (1)

Be a measure to encourage foreign investment and transfer foreign technology into the country, especially in the situation when Vietnam is calling for

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foreign investment; (2) Ensure the legal interests of the owner of the brand; (3) Brand protection is the protection of national brands; (4) Promote creativity, renew production techniques and encourage healthy competition; (5) Contribute to protecting the legal interests of consumers

Contents of registration for brand protection: Determining the types of goods and contents of the brand that need to be registered for protection; Apply for the brand protection; pay fees; Complete and submit the application documents for brand protection; Settle when there are problems with the registration for brand protection

Figure 1.1: Process of brand protection registration

Application for brand

Granting the protection certificate

1.2.3.2 Competition environment

Competition environment includes competitors in the industry and competitors who are interested in the enterprise The influence of this factor

on the building and development of corporate brand is as follows:

Firstly, in a manufacturing industry, an enterprise is occupying a large market share and has a strong brand name, but in that manufacturing industry, there is also a rival who is going to gradually occupy the market share of the enterprise and is trying to build up and improve its brand This will affect the brand of the enterprise or the competition may have bad actions that affect the brand of the enterprise

Secondly, when the enterprise is producing a new product on the market and there are no competitors in the industry, there are competitors in other industries interested in the product that the enterprise is producing When there are no competitors in the industry, it is easy for the enterprise to promote its brand to make it become a strong brand However, if the enterprise does not pay attention, it is possible that the competitors in other industries can produce the product that it is producing, so the brand of the enterprise can be affected

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1.2.3.3 Human resources

Quality Management viewpoint divides customers into two types: internal customers and external customers Internal customers are all the members and departments in the enterprise that consume the products External customers include all the subjects and organizations in the society that intend to purchase, exploit and use the image of the enterprise The ability of the members in the enterprise is an important factor to create a strong brand When all the members of the enterprise have efforts and professional skills, the products of the enterprise will ensure high quality and stability If all the members of the enterprise have responsibility and general knowledge, the stage of the market research will be well carried out When the products are introduced to the market, they will be accepted by customers and the enterprise’s image will be remembered by customers Therefore, the ability and quality of human resources in the enterprise have a great influence

on the branding and brand development The employees are people who market the enterprise’s image most effectively If the employees are aware of their responsibilities, positions and roles, the branding and brand development will be more effective

1.2.3.4 Prestige of the enterprise

The prestige of the enterprise in the market is an important factor helping the enterprise build and develop its brand into a strong brand When an enterprise has prestige in the market, that is, its products have been known and used by many consumers; customers will recommend the enterprise’s products to other people This will increase the enterprise’s business opportunities and make customers believe in the enterprise’s products This way, the enterprise will have more opportunities to introduce its brand to a large number of consumers

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In addition, the prestige of the enterprise in the market will create favorable conditions for the enterprise to find new markets This helps the enterprise’s products be known by many people and become the first choice

of customers when they want to buy something, ie customers will immediately think of the products of the enterprise when they are in need This confirms the high level of brand recognition

1.2.3.5 Financial resources

Financial ability is an important condition affecting the process of building and developing brand With good financial ability, the enterprise can carry out marketing and promotion activities to make consumers pay more attention to the products of the enterprise and trying using them Moreover, when the enterprise has financial ability, it will have conditions to carry out research activities and apply scientific and technological advances into production to create the characteristics that products of other enterprises don’t have This helps the enterprise develop its brand to a large number of customers Nowadays, human demands are increasing The competition among enterprises is not only about value but also about different functions of products With the development of science and technology, the enterprise can create differences in products and impress consumers To make this possible, it needs a strong financial ability In addition, the financial ability helps the enterprise catch

up with and overcome competitors, making the image of the enterprise’s products gradually go into the customer's mind As a result, the process of building and developing the enterprise’s brand will be more successful

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CHAPTER 2: REALITY OF BRANDING AND DEVELOPING THANH NGHIA BRAND OF THANH NGHIA CO., LTD

2.1 Introduction of Thanh Nghia Co., Ltd

2.1.1 Process of foundation and development

Full name: Thanh Nghia Company Limited

Transaction name: THANH NGHIA CO., LTD

Address: Truong An Industrial Park, An Khanh Commune, Hoai Duc District, Hanoi City

Represented by: Truong Thi Quynh Nga

Date of business license issuance: 22 April, 2003

Thanh Nghia Co., Ltd was previously a traditional wool production unit since 1995, with basic wool products In 2003, the company was officially established under the name of Thanh Nghia Co., Ltd In order to meet the export demands of foreign fashion enterprises, with the improved technology, high skills and enthusiasm of the employees, Thanh Nghia Co., Ltd has gradually affirmed its brand and position with domestic and foreign customers

With continuous efforts to expand new markets such as the US, Japan and Korea every year, Thanh Nghia has become one of the leading manufacturers and exporters in the Northern area With the experience, technology and enthusiasm, Thanh Nghia always tries to meet the needs of customers

The business mission of Thanh Nghia is to do better what customers demand by combining modern technology and excellent craftsmanship The goal is to create products that not only meet the needs of customers but also satisfy the consumers

Thanh Nghia is a company which is built from enthusiastic and skilled people The passion and responsibility are the basis of the corporate culture

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The quality of the products is put above the profit and the responsibility is put above the sales Thanh Nghia strives for the satisfaction of the customers With its reputation, the Board of Management always researches, learns and invests in the modern technology line to provide customers with new products and better solutions

2.1.2 Production process

At Thanh Nghia Co., Ltd, the main materials used in production include wool and yarns, etc and accessories such as threads, zippers, buttons, label shooters, and so on Most of these materials are outsourced Some materials are bought and produced by the company

The company's products are mainly produced through orders When the company receives the orders and materials provided by the ordering company,

it will design the product and make the sample The sample is then sent to the sample inspector to have a check Once the sample meets the requirements, the product will be transferred to the factory for production

Each production workshop is a closed production line that carries out all the work from making hard design, drawing samples and cutting The cutting division will receive the materials, cut them according to the drawings and transfer to the sewing division The sewing division is specialized; each person is responsible for a part of the product: sewing body, sleeves, fixing buttons, zippers, etc At the end of the process, each team will have a technical tester and

a product collector Finally, the products will be sent to the quality control department for checking, packing and transferring to the warehouse

2.1.3 Organizational structure

The structure of Thanh Nghia Co., Ltd is organized in form of online management The director and deputy directors control all activities of the company online and are supported other functional departments The functions and tasks of each department are as follows:

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Board of management

+ Director: Be in charge of all production and business activities of the company The director has the following duties: Propose the strategies to achieve the company's objectives; approve the operating and settlement budgets of the company; authorize subordinates to perform his or her duties and be responsible for that authorization

+ Deputy Director: Be in charge of managing the assigned field; be responsible to the director for his or her managing area; resolve necessary issues

on behalf of the director when the director is away; gather resources (human, material, financial resources, etc.) to achieve the ultimate goal of the company

+ Heads of departments, workshops: Be responsible for managing and ensuring the staff in their departments and workshops to perform the assigned tasks; report the operations of the departments to the management board of the company

Departments

+ Design Department: Be responsible for designing the product samples

as required by customers and the company

Director

Deputy Director Deputy Director

Technical Department

Design

Department

Market Planning Department

Import Departm ent

Export-Domesti

c Market Department

Accounting Department

of the Accounting Law and internal regulations of the company

+ Export-Import Division: Help the director direct and carry out the import of raw materials; Direct and carry out the export of goods, complete the customs procedures and necessary documents for delivering the goods to customers

+ Market Planning Department: Help the director direct and carry out the planning and marketing work; Establish short-term, long-term and annual targets of the company Organize the sales network, advertising and promotions programs to achieve the highest efficiency

2.1.3 Business results

2.1.3.1 General business results

Over the past years, Vietnam's textile and garment industry has continuously developed and textile and garment has become the leading export item of Vietnam with a high growth rate As one of the enterprises operating in the field of textile and garment, the business results of Thanh Nghia Co., Ltd from 2015 to 2017 were as follows: